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Nebraska tax package slowly taking shape, but senators split

taxesLINCOLN, Neb. (AP) — A sweeping plan to lower income taxes and cap the growth rate of property taxes is taking shape in a legislative committee, despite a sharp divide among senators.

Members of the Revenue Committee voted 5-2 on Thursday to add two tax proposals introduced on Gov. Pete Ricketts’ behalf to the overall package.

The measures would gradually lower Nebraska’s top income tax rate from 6.84 percent to 5.99 percent in years when projected state revenue increases by more than 3.5 percent. It also would change the way agricultural land is valued and cap aggregate statewide valuation growth at 3.5 percent.

Some senators say the income tax proposal would tie the hands of future lawmakers, and argue that the property tax proposal fails to account for outside factors such as inflation.

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