April 24, 2025 - Inheritance Tax Reform (LB468)
NACO Supports Sustainable Approach to Inheritance Tax Reform Ahead of LB468 Debate
LINCOLN – In preparation for the floor debate on LB468, the Nebraska Association of County Officials (NACO) welcomes Senator Clements’ efforts to identify sustainable revenue replacements as inheritance tax collections are reduced.
A complete repeal—such as the amendment proposed by Senator Bostar (AM1069)—would be devastating to the essential services counties provide. The ability to respond to emergencies would be compromised, routine maintenance of roads and bridges would be threatened, and the broader impact would be felt in everything from the transport of goods to school bus safety, 911 response in rural areas, and services for veterans.
At a time when support from state and federal governments is uncertain, this is not the moment to eliminate a critical revenue source that keeps our communities safe, connected, and functional. Nebraska remains the only state where counties collect 100% of the inheritance tax, which comprises roughly 10% of total county revenue.
NACO remains committed to working with Senator Clements to identify sustainable solutions that reduce inheritance tax without shifting the burden to property taxpayers. With increasing exemptions, shrinking revenue sources, and rising costs from unfunded mandates, counties are already facing financial pressure.
NACO urges Nebraskans to contact their senators and ask them to vote NO on the amendment to protect the essential services that keep our communities strong.
