Gov. Ricketts Celebrates Record-Breaking Tax Relief, Accomplishments of 2022 Legislative Session
LINCOLN, NE (STL.News) Governor Pete Ricketts highlighted the achievements of the Second Session of the 107th Legislature in his annual “Sine Die” address to the Unicameral on the final day of its 2022 regular session. Senators enacted LB 873, the biggest tax relief package in Nebraska state history. It delivers $3.4 billion of additional tax relief to Nebraskans through tax year 2027. Additionally, LB 873 provides 12 times more tax relief than any tax relief bill passed prior to Gov. Ricketts’ administration.
During the address, the Governor thanked Senators for taking action on key priorities he set in January, including tax relief, strengthening Nebraska’s water resources, and investing in law enforcement. Gov. Ricketts praised the Unicameral for controlling spending to allow for historic tax relief. He also thanked Legislators for their extra work this year to pass a budget to allocate $1.04 billion of federal assistance received through the American Rescue Plan Act (ARPA).
HIGHLIGHTS FROM THE 2022 LEGISLATIVE SESSION
- Controlling Spending: Over eight years, the Governor has worked with the Legislature to limit state government spending to an average annual growth rate of 2.8%. This paved the way for record-setting tax relief this session.
- Property Tax Relief: Protects the refundable income tax credit on property taxes paid to public K-12 school districts. This rebate was over 25% of school property taxes in tax year 2021. Additionally, creates a new rebate on property taxes paid to community colleges, which will begin in tax year 2022.
- Income Tax Relief: Cuts taxes on Nebraska’s families by phasing down the highest individual income tax rate from 6.84% to 5.84% by the 2027 tax year. Phases down the business income tax rate from 7.5% to 5.84% by the 2027 tax year.
- Social Security Tax Relief: Accelerates the phaseout of taxes on Social Security income. This income will be 100% exempt from state taxation starting in tax year 2025.
- Investing in Public Safety: Expands capacity to train cadets at the Nebraska Law Enforcement Training Center. Upgrades and expands the Nebraska State Patrol Crime Lab to meet increased demand to process evidence.
Securing Nebraska’s Water Resources: Authorizes construction of a canal and reservoir system (Perkins County Canal) to protect Nebraska’s legal entitlement to South Platte River water flowing into the state from Colorado.
- Developing Nebraska’s Water Resources: Invests in water projects to create recreational opportunities for Nebraska’s families and attract tourism. Projects include: 1) construction of a new marina at Lake McConaughy, 2) a major marina expansion at Lewis and Clark Lake; 3) construction of an event center and lodge and Niobrara State Park; 4) creation of a 3,600-acre reservoir between Lincoln and Omaha.
- Investing in Rural Nebraska: Extends and expands the Nebraska Rural Development Act to attract investment in rural communities. Creates tax credits to encourage fuel retailers to sell E15 and higher blends of ethanol.
- Investing in Urban Nebraska: Creates Economic Recovery grants to support job training, small business growth, economic development, and affordable housing in metropolitan areas and other qualifying census tracts.
- Workforce Development: Funds $60 million of community college grants and $15 million of dual-credit (high school / college) grants to develop Nebraska’s skilled workforce in fields such as healthcare, agriculture, transportation, manufacturing, and construction.
Watch the Governor’s Sine Die address to the Legislature by clicking here.