LINCOLN - Nebraska adopted an inheritance tax in 1901 which is a tax paid by a person who inherits money or property of a person who has died. There have been very little changes to the tax, but that may change in the Nebraska Legislature this session.
The Platte Institute’s Sarah Curry recently unveiled a policy brief called “Death and Taxes: Nebraska’s Inheritance Tax”, which talks about the history of it.
The Revenue Committee will hear two inheritance tax proposals Thursday, LB 310 and LB 377.
During a news conference Wednesday, Curry said LB 310 would reduce inheritance tax rates and increase exemptions over time.
"I think that's a great idea, because when we look back to the original tax, the exemption amount was $10,000. If we adjust that for inflation it should be $306,000 today and we haven't done that. We've kept it relatively the same the past 120 years, so LB 310 does help with that bracket creep because it adjusts for inflation."
LB 377 would classify more distant family members as eligible for a lower inheritance tax rate.
Sarah’s policy brief can be found by going to PlatteInstitute.Org.