LINCOLN- Nebraska lawmakers have resisted efforts for years to join the vast majority of states in ending the inheritance tax, siding with county officials who have said they rely on the funds and would otherwise have to turn to property taxes to make up the revenue. Sen. Bob Hallstrom of Syracuse has proposed letting voters decide, but he indicated in a Wednesday Revenue Committee hearing that another senator may have a solution to the inheritance tax that's more digestible for county governments.
If adopted, Hallstrom's LR13CA to prohibit the inheritance tax would go on the ballot next November. Only four other states have an inheritance tax. Iowa ended its tax this year. Hallstrom said counties would have to adjust to losing those dollars. He said families have to make tough choices to make ends meet, and county officials sometimes have to do the same. Several of those officials said the cuts would be severe and affect essential local functions. They indicated they prefer LB468 from Sen. Robert Clements of Elmwood.
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