Estate tax reduction approved – Nebraska City News Press
Lawmakers passed a bill Feb. 11 that lowers estate tax rates for beneficiaries and increases the amount of property value exempt from tax.
LB310, introduced by Senator Elmwood Robert Clements, applies to estates of persons who died on or after January 1, 2023.
Under the bill, immediate relatives will pay inheritance tax on the net market value of assets over $100,000 received by each person, up from $40,000 previously. The tax rate remains at 1%.
The bill also lowers the rate from 13% to 11% for distant relatives and increases the exemption for amounts over $15,000 to amounts over $40,000.
A third rate that applies to all other beneficiaries goes from 18 to 15% and the amount of the applicable exemption goes from $10,000 to $25,000.
Under LB310, any interest in property passed to beneficiaries under the age of 22 is not subject to inheritance tax. The proposal also expands the definition of parents for estate tax purposes to include certain step-parents.
Finally, the bill requires the personal representative of an estate, when distributing estate proceeds, to submit an estate tax report to the treasurer of the county in which the estate is administered. County treasurers will then compile and submit an estate tax report to the state Department of Revenue.
Senators voted 37-1 to pass LB310.