Unicam Give 1st-Round OK To Lowering Inheritance Tax And Raising Exemptions

      Nebraska lawmakers Tuesday gave first-round approval to a bill reducing the state’s Inheritance Tax. Nebraska is one of just 6 states that has an inheritance tax.

      The tax is collected by counties and raises about $70-million dollars a year, but 47th District Senator Steve Erdman of Bayard, a former Morrill County Commissioner, pushed to abolish the tax.

Erdman said it’s an unfair tax and he doesn’t understand why dying creates a tax event.

     Opponents argued that eliminating the Inheritance tax would leave counties facing major shortfalls and force most of them to increase property taxes.

    The result was a compromise jumping the exemption for immediate family from $40,000 to $100,000 while keeping the tax rate for them at 1% with a full exemption for those under 22.

     Extended family would see their inheritance tax rate drop from 13% to 11% with the exemption rising from $15,000 to $40,000.

       All other inheritors would be taxed at 15%, down from the current 18%, with their exemption going up from $10,000 to $25,000. The compromise received 41-4 first-round approval.

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