LINCOLN- County officials came to oppose any change in the inheritance tax during the hearing of the Revenue Committee on Thursday. They said that counties use the funds generated to reduce property taxes, finance special projects or respond to emergencies likes floods. If it was drastically reduced, as presented in LB310 by Senator Clements they said, counties' only option would be to increase property taxes, which is the top target for complaints, not the inheritance tax.
"I've found county board members to be as conservative as anybody, and they don't want to raise taxes," said Larry Dix, the former executive director of the Nebraska Association of County Officials. Some county officials also said that with proper estate planning, the inheritance tax can be avoided entirely.
While the inheritance tax paid varies widely each year, it has averaged about $65 million statewide in recent years, including about $12.7 million a year in Douglas County and about $5 million a year in Lancaster County.
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