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Nebraska tax reduction package faces ‘narrow path’

The chairman of the Nebraska legislature’s Revenue Committee, Papillon Senator Jim Smith, says finding 33 votes to pass a tax reduction package will be tough. But he says he remains “cautiously optimistic”.

“Do I think there is a path? Yes. Do I think it’s going to be very, very difficult? Absolutely,” Smith says.

LB947, which was advanced to the floor this week, includes property tax cuts for ag producers and homeowners. Ag producers would receive a two percent refundable income tax credit on property taxes paid, increasing by two percent a year until it reaches 20 percent once fully implemented by 2027.

The bill also includes a reduction in corporate income taxes and funding for workforce development.

Smith says the path to the 33 votes needed to overcome an expected filibuster is a narrow one.

“It’s going to be tough to arrive at 33 votes on this bill,” he says. “But, can it be done? Yeah, I still believe there is a path.”

The measure is supported by Governor Pete Ricketts, even though the individual income tax cuts he supported were removed from the bill in committee.

The Nebraska Radio Network contributed to this story.