Unicameral Passes Inheritance Tax Reductions

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     Nebraska lawmakers on Friday gave 37-1 final approval to a bill reducing the state’s inheritance tax, increasing the exemption from the tax, and fully exempting those under the age of 22.

     If signed as expected by Gov Pete Ricketts, it would apply to the estates of those who die on or after next January 1.

     Under the bill, the tax rate for immediate relatives stays at 1% but the amount of bequests exempted from the rate jumps from $40,000 to $100,000.

     The inheritance tax rate for remote relatives drops from from 13% to 11% while the exemption increases to $40,000 from $15,000. The rate for all other beneficiaries falls from 18% to 15% with the exemption rising from $10,000 to $25,000. 

     The bill expands the definition of relatives to include some step-relatives, and it requires an estate’s personal representative to submit a report on the taxes to the country treasurer once the proceeds are distributed. 

      The treasurers will compile and submit an inheritance tax report to the state revenue department every year.

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