LINCOLN, Neb. (AP) – Two Nebraska farm groups have endorsed Gov. Dave Heineman’s plan to repeal an inheritance tax collected by counties.
Leaders from the Nebraska Farm Bureau and Nebraska Cattlemen said Monday the plan would ease the burden on young farmers who receive agricultural land from their parents.
Nebraska Farm Bureau President Steve Nelson says the inheritance tax makes it difficult for new farmers because of the vast expanses of land needed to run an operation, and narrow profit margins.
County officials say the loss of revenue would force them to increase property taxes. Heineman has countered that counties should trim their spending, as the state did when it lost revenue after repealing Nebraska’s estate tax.
Heineman unveiled the plan during his State of the State address to lawmakers.