Nebraska Gov. Dave Heineman is calling for new property and income tax cuts when the Legislature convenes next year.
“Taxes are too high in Nebraska. I hear it every day that property taxes, income taxes and occupation taxes are too high. We need a tax code that represents the future, not the past. I am hopeful that we can develop a tax relief package that includes both property tax relief and income tax relief.”
The Republican governor argued Wednesday that property tax reductions would benefit rural Nebraskans, who have complained for years about the rates on farms and ranch land. Heineman says lowering income taxes would help urban wage earners.
His comments came in the midst of a legislative review of Nebraska's tax system, which has included public hearings in Scottsbluff, North Platte and Norfolk. Additional hearings are scheduled in Omaha and Lincoln.
State government has no direct control over property taxes, which are set at the local level, but Heineman says the state could use Nebraska's property tax credit fund to reduce what property owners have to pay.
“We need a tax code that protects taxpayers. Rural Nebraska wants property tax relief and urban Nebraska wage earners need income tax relief."
Nebraska ranks high in general business rankings, but not on the tax rankings. For example, according to the Tax Foundation, Nebraska has one of the 16 highest top state income tax rates and Nebraska is one of the 13 highest property tax states.
Kiplinger recently named Nebraska as one of “The 10 Least Tax-Friendly States for Retirees.”