2021 Nebraska Legislature

[ita]

I think this is a good article that sets up some of the (same) issues the State legislature is facing this upcoming year. Senator Linehan, one of the senators who developed the property tax legislation last year, is eyeing income taxes as well, noting several states pulling in young people partially due to no state income tax.

2021 Legislature: Challenges Old And New, With A Twist

[jessep28]

A voter ID law, and law to repeal Nebraska's split electoral vote system have made their Groundhog Day appearance.

[ita]

6 key takeaways from Gov. Pete Ricketts' budget plan

One of the bigger things that is mentioned is Rickett's desire to exempt all military retirement benefits from taxes. Another interesting item is to put a cap on annual county property tax revenue increases to 3%, without voter approval.

[ita]

Nebraska could end sales tax on water bills, income tax on Social Security benefits

Paul Hammel
LINCOLN — Nebraska’s brightening fiscal outlook has state lawmakers thinking favorably about an array of tax cuts, including an often-discussed but never-advanced state tax exemption for Social Security income.

On Tuesday, the Legislature’s Revenue Committee voted for a bill to exempt sales taxes on residential water bills. Members also advanced a measure that would divert state sales taxes generated near new youth sports complexes to help finance such facilities, on the grounds that large tournaments provide an economic boost to local motels and eateries.

In addition, the committee appears poised to advance a proposal on Wednesday that would gradually phase out state income taxes on Social Security. Nebraska is one of only 13 states that tax those benefits, which has been a longtime gripe of retirees in the Cornhusker State.

[ita]

Buried in one of the OWH articles about the state legislature, this bill LB156, introduced by Omaha's Justin Wayne, was introduced. This bill allows a city to create an inland port authority (see Utah Inland Port Authority for reference).

Essentially, the inland port authority would be able to development shovel ready mega sites for commercial/industrial development. There are a bunch of details in the bill, but an interesting point is that a port authority district would have to be within one mile of a river, one mile from rail, two from a national interstate, and two from a major airport. That limits the a potential port authority district to pretty much North Omaha by the airport. Are there any other areas that fit these requirements?

I think it is a great idea and I am interested if and how the city utilizes this if the bill is passed. Also, funding would come from a local sales and use tax.

Edit: Lastly, Justin Wayne is trying to make good things happen for this district. Between this and his successful effort to introduce legislation for a regional transit authority, among other efforts, I admire what he's doing at the state level for his constituency.

[ricko]

I'm not sure if it still exists, but Omaha did have a port authority when I lived there. A college professor (in Texas) told our class that Omaha was one of the largest ports (by tonnage shipped) in the U.S., but 50 years ago, Omaha was a much more industrial city. I remember as a kid watching huge barges on the river shipping coal and grains.

[ita]

Social Security income tax repeal in Nebraska gets a guardrail

Don Walton
The Legislature on Tuesday attached "a guardrail" to a bill designed to fully phase out the state income tax on Social Security income over the next decade, building in a reevaluation of the incremental tax break after five years.

While agreeing to implement a 50% exemption achieved over a five-year period and expressing their intention to fully exempt that income during the following five years, senators adopted an amendment to the tax proposal that leaves that decision in the hands of a future Legislature.
...
The bill, when fully implemented, would provide a $1,000 annual tax break on the Social Security benefit for the average Nebraskan, which is about $18,400 a year.

[ita]

Ricketts signs bill exempting military retirement from taxes in Nebraska

Martha Stoddard
Military veterans of various stripes joined Gov. Pete Ricketts on Tuesday as he signed into law a bill exempting military retirement benefits from state income taxes.

Ricketts celebrated Legislative Bill 387 as a major step toward making Nebraska the “most military- and veteran-friendly state” in the nation. He said the state made progress toward that goal in recent years but remained at a competitive disadvantage on the tax front.

That should change with LB 387, which adds Nebraska to the list of 30 other states that do not tax military pensions. The list includes every state surrounding Nebraska, except Colorado.

[PWL73316]

Very fundamentally disagree with the idea of exempting large swathes of high income people from all state taxes.

Most military retirees retire in their 40s and still work. This is totally unnecessary, and at roughly $400 million per year in retirement payments in Nebraska, it's a lot of money to virtue signal with. Less than half of military retirees in Nebraska are over 65.

[ita]

Very fundamentally disagree with the idea of exempting large swathes of high income people from all state taxes.

Most military retirees retire in their 40s and still work. This is totally unnecessary, and at roughly $400 million per year in retirement payments in Nebraska, it's a lot of money to virtue signal with. Less than half of military retirees in Nebraska are over 65.

I guess supporters of the change argue that those are the particular retirees we want to keep; experienced, skilled retired serviceman that have another incentive to stay in Nebraska and continue working. At least that's what supporters say.

[buildomaha]

Yeah this type of tax relief doesn’t actually upset me too much. Those making much more who haven’t done a single act of service to the nation receiving tax cuts is another story though.

[ita]

Special committee on flood control, water resources created

A special legislative committee will study potential flood control projects and related economic development opportunities in three areas of the state under a bill passed by lawmakers May 20.

LB406, sponsored by Omaha Sen. Mike McDonnell, creates a special committee, consisting of at least seven members of the Legislature, that will study the need to protect public and private property, enhance economic development and promote private investment along the Platte River and its tributaries from Columbus to Plattsmouth.

The committee will conduct similar studies on the Lake McConaughy region and the region in Knox County that includes Lewis and Clark Lake and Niobrara State Park.

The Platte River study cannot include a study of any dam on the river’s channel but may include infrastructure that maintains the integrity of its main channel.

The committee may hold hearings and request reports from federal, state, county, city and village agencies and natural resources districts on matters pertaining to the studies. It also may hold closed sessions to receive confidential information with a majority vote of committee members.

With the Executive Board’s approval — and after a competitive bidding process — the committee may enter into contracts for consulting, engineering and development studies.

The committee will complete each study no later than Dec. 31, 2022, and will terminate on that date.

LB406 passed on a vote of 46-1.