NACO representative says organization will negotiate on inheritance tax proposals, but opposes LB1067 until revenue replacement sources are proven

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YORK COUNTY – Elaine Menzel, representing the Nebraska Association of County Officials (NACO), met with the York County Commissioners this past week, as an annual reminder of what the organization offers counties and their status regarding legislation at the state level.

NACO represents counties as a lobbying organization.

She talked about LB1067, which was introduced this legislative session with the intent to eliminate inheritance tax.

Inheritance tax has been a substantial revenue source for counties. Some counties, such as York County, use inheritance tax as a supplemental fund to help pay for services from outside agencies, expensive road equipment, emergency expenses, miscellaneous needs. And there are some counties in the state which use inheritance tax revenue to help pay for actual county operations.

York County Commissioner Chairman Randy Obermier has been very vocal about York County’s opposition to getting rid of inheritance tax – especially because replacement revenues offered in the bill will not cover the eliminated revenue, should it take place.

Right now, LB1067 is in limbo. But it is anticipated the theory will not go away as some state lawmakers as well as the governor continue to make it a priority.

“Our position is that without replacement revenue, we must oppose this and we will negotiate in good faith if something feasible to replace the revenue is brought to us,” Menzel said, referring to LB1067.

She said the NACO board considered amendments as they were brought forward and determined there was not enough guarantee regarding replacement revenue as presented.

She also noted how last week, the speaker of the legislature indicated it was the last week to pass general file legislation, which is where the bill was at the time of her conversation with the commissioners.

An amendment was filed on March 28 and on April 9, the bill was recommitted to the Revenue Committee.

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