Income tax cut bill, measure to tax agricultural land at lower rate do not advance

Income tax cut bill, measure to tax agricultural land at lower rate do not advance

Measures to cut income taxes and tax agricultural land at a lower rate — which both threatened school funding and meaningful property tax reform efforts — failed to advance from the Revenue Committee this morning. 

The committee did not vote on LB 357, a bill to cut income taxes, after an amendment to the measure did not secure enough votes to advance. Our analysis of LB 357 showed the measure would lead to massive budget cuts and largely benefit Nebraskans with the highest incomes.

The committee also rejected a proposal to tax agricultural land at a lower rate, which OpenSky analysis showed would have had a disparate effect across the state and led to revenue losses for cities, schools, counties and other local governments.

This morning’s actions were part of a two-day series of Revenue Committee executive sessions, during which the committee also:

• Advanced an amended version of LB 259, which limits taxation of some personal property;
• Advanced an amended version of LB 322, which would increase child and dependent care tax credits;
• Advanced LB 356, which calls for income-based assessment of certain low-income rental properties; and
• Rejected LB 71, which would have taxed the sale of agricultural land and returned the collected revenue to farmers and ranchers as property tax credits.