Income Tax Bill Introduced to Relieve Property Taxes

LINCOLN, Neb. (AP) – Nebraska business groups are backing a proposal to cut the state’s top income tax rates and put money into a property tax credit, but farm groups aren’t quite as enthusiastic.

The bill presented Wednesday to a legislative committee would trigger automatic income tax cuts anytime revenue is projected to grow by more than 3.5 percent and Nebraska’s emergency cash reserve holds at least $500 million.

A lobbyist for seven Nebraska farm groups says it’s worth discussing, but farmers and ranchers want property tax cuts to be a substantial component. The bill would steer $75 million into Nebraska’s Property Tax Credit Fund, but those tax credits haven’t been enough to offset their rising tax bills.

Sen. Mike Hilgers, of Lincoln, says he introduced the measure to encourage economic growth.