Last week sure brought a lot of weather changes. I want to encourage everyone to be aware of Red Flag warnings that are posted and keep an eye on the sky as there have been wildfires in central Nebraska and Lancaster County in recent weeks. Stay safe.

The first election requiring Voter ID will be on the May 14, 2024 statewide primary election, All special and statewide elections after this date will require Voter ID. If you are needing more information on acceptable forms of photo ID, need to get a free ID, or need to understand how the process of Voter ID will be used in the upcoming election, I encourage you to check out the Nebraska Secretary of State website at https://sos.nebraska.gov/elections/voter-id for more information.

The Nebraska Economic Forecasting Advisory Board met on February 29th. The board provides an advisory forecast of general fund receipts used by the Legislature to craft the state’s budget. They voted to raise revenue projections for the current fiscal year. Revenue projections for the current fiscal year were raised primarily based on an anticipated increase of $750 million in corporate income tax receipts, offset by a projected decrease of $200 million in individual income tax receipts. Total projected revenue receipts for Fiscal Year (FY) 2023-24 were set at $7.02 billion, an overall increase of $575 million. (“Economic forecasting board raises short-term revenue projections”. Unicameral Update. 29 February, 2024. http://update.legislature.ne.gov/?p=35787)

Bill Updates
This past week we spent many hours debating the phase out of the Inheritance Tax collected by Nebraska counties while partially reimbursing them for housing state prisoners. This bill (LB1067) was introduced by Senator Robert Clements of Elmwood on January 8, 2024 and heard in the Revenue Committee on February 8, 2024. It was voted out of committee to General File 7-1. Under current law, immediate relatives pay a 1% tax on the clear market value of property over $100,000 received by each person. Remote relatives pay 11% on inheritances of more than $40,000 and all other beneficiaries pay 15% on inheritances of more than $25,000. Under LB1067, the rate that applies to immediate relatives would fall incrementally each year, beginning in 2025, until reaching 0% in 2028. The rates that apply to distant relatives and others would decrease each year beginning in 2024 and also would reach 0% by 2028. Senator Clements stated the inheritance tax makes Nebraska unattractive to retirees and is paid by a relatively small number of people, roughly 40% of whom live outside the state. As introduced, the bill would offset a portion of counties’ revenue loss by requiring the state Department of Correctional Services to reimburse counties $35 per day for each state prisoner housed in a county jail. A pending Revenue Committee amendment would increase that reimbursement to $100 per day. Clements said he and other senators were working to find additional ways to replace the estimated $12 million in inheritance tax revenue counties would lose in the first year of the bill’s implementation. This bill is still being debated on the floor on General File. (“Inheritance tax phaseout debated”. Unicameral Update. 1 March, 2024. http://update.legislature.ne.gov/?p=35797)

News from the Governor’s Office
Governor Pillen expressed excitement on behalf of Nebraska motorists, upon news that the U. S. Environmental Protection Agency (EPA) has approved the year-round sale of E-15. The EPA’s final rule is effective April 28, 2025 and applies to eight states, including Nebraska. “This decision is a win for agriculture, ethanol production and for Nebraska consumers,” said Governor Pillen. “Ethanol is a vital part of our economy. We will continue to ensure consumers have a low-cost option at the pump. Today’s actions will result in real savings for Nebraska drivers while producing fewer carbon emissions.” (Strimple, Laura and Schafer, Jacy. “Gov Pillen Welcomes Year-Round E15 Approval for Nebraska”. 23 February, 2024. https://shorturl.at/cfzA7)

On February 29th, Governor Pillen released a statement on the increased revenue projection by the Nebraska Economic Forecasting Board. The board voted to raise revenue projections by $50 million for the 2024-2025 biennium. “Nebraska’s economy is strong and in a good financial position,” said Governor Pillen. “The forecasting board’s increased projection is another signal for needed property tax relief. The time is now. We must continue to work together to find a pathway forward to reduce property taxes for all Nebraskans.” (Strimple, Laura and Schafer, Jacy. “Governor Pillen Touts Strong Nebraska Economy, Signaling the Time for Property Tax Relief is Now”. 29 February, 2024. https://shorturl.at/A2389)

As always, I invite you to let me know your thoughts, ideas, concerns, or suggestions by calling my office at (402) 471-2716 or emailing me at jalbrecht@leg.ne.gov.