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NEFB applauds passage of largest tax cut bill in state history

The head of Nebraska Farm Bureau says the recent passage of the $900 million tax cut bill is “transformative” for ag producers.

“It’s real dollars.  We’re not nickel and diming along the edges here. It’s substantial.”

Mark McHargue tells Brownfield it is the largest tax cut in state history and will provide property and income tax relief. “At the end of the day with prices going up, land values going up, I think at a minimum this is going to hold what they pay in taxes at least steady, if not down some,” he says. “I’ve heard some average farmers getting reductions of $10,000.”

Legislative Bill 873 passed unanimously last week and cuts the top income tax rates on corporations and individuals, ends income taxes on Social Security benefits and boosts property tax relief. 

He says this bill adds other tax reforms that lawmakers have passed in previous sessions. “It’s just good timing. I think it’s good timing. I think in the next couple of years we’ll look at how we transition this into real reform.”

McHargue says farmers and ranchers should expect immediate relief.  The legislation is similar to the refundable tax credit bill passed in 2020, which offsets a portion of school property taxes.

Governor Pete Ricketts is expected to sign the bill.