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- NESCPA Legislative Reports - 2023-2024
- NESCPA Weekly Legislative Report
- Governor Pillen's Tax Package
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Covers legislative activity on a daily basis, including floor action and committee hearings. - Find Your State Senator & District
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A detailed PDF guide to the Nebraska Legislature and the legislative process. - MultiState Legislative Resources
CPA Candidates Approved to Sit at 120 Hours
On March 11, 2024, Governor Jim Pillen signed LB 854 into law amending the Nebraska Public Accountancy Act after the bill passed in the Nebraska Legislature on a 44-0-5 vote. Commencing on Jan. 1, 2025, Nebraska CPA candidates will be able to sit for the Uniform CPA Examination after completing 120 semester hours (or 180 quarter hours) of qualifying college credit and a bachelor’s degree.
Pillen tax plan limps forward after sponsor agrees to remove sales tax increase
April 03, 2024
Sen. Linehan says replacement revenue is being sought, but she's not certain that LB 388 will return for debate this year.
NESCPA Legislative Update - March 29, 2024
March 29, 2024
Time is winding down as Thursday, March 28, marked Day 52 of the 60-day session.
Debate begins on 'massive' tax bill proposed by governor to reduce property taxes
March 28, 2024
Debate on Gov. Jim Pillen’s epic and controversial property tax relief plan began Wednesday, March 27, with advocates saying it will result in a net tax savings and opponents saying it's a tax shift that will hurt middle- and low-income families.
Unicameral Update: Transformational Tax Relief?
March 27, 2024
It’s been a busy few days for senators. On March 26, they gave final approval to the state’s budget and the Revenue Committee advanced its tax package to the floor. Senators were given a briefing on the tax package the morning of March 27 and debate on the proposal started in the afternoon.
In unusual move, major tax bill is re-advanced from committee after concerns raised
March 26, 2024
New draft of Pillen property tax plan wasn’t present when committee voted last week, a possible rule violation.
EPIC Option Information Available
March 22, 2024
No New Taxes Nebraska, a coalition of more than 40 businesses and organizations, has developed a webpage to provide information on the proposed EPIC tax. EPIC tax is a proposed ballot initiative that would eliminate property and individual and corporate income taxes and implement a proposed statewide consumption tax of 7.5%. However, a recent study found that the plan could require a much higher rate of tax of 20% or more to sustainably fund the state’s government services. Additionally, the initiative will take local budget and spending control away from local political subdivisions and place it into the hands of the Nebraska Legislature.
Parts of tax-relief package start taking shape
March 14, 2024
The Nebraska Legislature's Revenue Committee started shaping two of the six bills Wednesday that leaders say will contain the group's broader tax-relief package. The committee spent much of the morning in an executive session combining tax credits, tax deductions and tax tweak proposals into Legislative Bills 937 and 1023.
Statewide coalition to hold news conference in opposition to EPIC
March 11, 2024
On Thursday, March 14, at 1 pm Central, a variety of state, local, and community groups and businesses will host a press conference in the Capitol Rotunda to launch No New Taxes Nebraska, a coalition formed in opposition to the EPIC proposal. Dozens of businesses and associations are speaking out against this proposal as ballot signatures are collected. If you are interested in having your business or organization listed as a part of this coalition, please email joni@nescpa.org.
Nebraska state budget plan advances with 3.1% increase, partly for boost in school aid
March 08, 2024
he Appropriations Committee delivered a budget package to the Legislature on Thursday that would hold spending to a 3.1% increase and leave a record amount of state money unspent.
Commentary: Independence is a cornerstone of the auditing profession
March 01, 2024
The suggestion by State Auditor Mike Foley that a licensed CPA firm in public practice would inherently lack independence or expertise is a misunderstanding of the profession and its regulatory framework.
Committee begins crafting property tax relief proposal, new approach considered
February 28, 2024
A state legislative committee began working Tuesday to craft a proposal to reduce property taxes statewide by another $1 billion, as called for by Gov. Jim Pillen. The Revenue Committee didn't vote out any bill on the issue, but its chair, State Sen. Lou Ann Linehan, floated the idea of raising the state sales tax by 1-cent and using the $531 million generated to increase state aid to K-12 schools.
Petition to upend Nebraska's tax system "slowed down" as opponents gain strength
February 26, 2024
The EPIC Option drive has suspended its contract with a Florida company for paid signature-gathering and struggled to bring in donations in recent weeks, according to a drive organizer.
Commentary: Nebraskans need tax reform, not a tax hike
February 22, 2024
After decades of increased property taxes, Nebraskans deserve true tax reform, not a tax shift. In crafting a tax package this session, senators should focus on creating long-term fiscal solutions, not “solving” one problem by creating another, says John Gage.
NESCPA Legislative Update: Feb. 4, 2024
February 04, 2024
The Legislature has finished more than a third of the 2024 legislative session.
Business groups, local governments say they support Pillen tax shift proposal if changes made
February 02, 2024
Four straight days of gathering public input on Gov. Jim Pillen’s plan to use higher and broader sales taxes to lower property taxes made it clear there’s more work to be done.
Repeal of certain sales and use tax exemptions considered
February 02, 2024
The Revenue Committee heard testimony Feb. 1 on more than half a dozen proposals to broaden the state sales tax base in an effort to reduce local property tax collections.
Groups line up to oppose new sales taxes on business, agriculture, Omaha zoo and advertising
February 01, 2024
Groups ranging from accountants to farmers, veterinarians to lawyers, owners of self-storage units and amusement game distributors, lined up to oppose attempts to remove long-running tax breaks for their industries.
Ad tax bill misguided
January 31, 2024
Former South Dakota legislator sounds the alarm and urges Nebraska legislators to reject LB1354, a tax on digital advertising.
Another rocky reception for proposals to reduce property taxes
January 31, 2024
School, county and natural resources officials among those opposing a harder cap or freeze on local spending.
Debate continues on whether Nebraska should change to permanent daylight saving time or permanent standard time
January 31, 2024
The debate pits golfers and broadcasters, who support the added evening sunshine of DST, against health experts who argue that our biological clocks and sleep patterns work best on standard time.
Opposition lines up, as in the past, to the proposed elimination of tax breaks
January 31, 2024
Lawyers, accountants, business groups and hunters not so keen on Pillen proposals.
Pillen plan to "sweep" excess cash funds gets bumpy reception at Capitol hearing
January 31, 2024
Gov. Jim Pillen's plan to use excess cash reserves to "jump-start" his property tax relief proposal got a rough reception Tuesday during a state legislative hearing.
Principles of Good Tax Policy from the Platte Institute
January 31, 2024
Instead of relying on tax shifts and promises of a quick fix, local property tax relief is best solved by the disciplined actions of locally elected officials under the informed and watchful eye of the local taxpayer and property owner, says former State Senator Jim Smith of the Platte Institute.
Proposals aim to ease path for ‘missing middle housing’ in Nebraska, but critics see flaws
January 31, 2024
Lawmaker says the legislation focused on duplexes and ‘accessible dwelling units’ would help affordable housing crisis.
Immediate deduction of equipment, R&D expenses considered
January 29, 2024
The Revenue Committee heard testimony Jan. 25 on a proposal intended to incentivize Nebraska businesses to invest in new equipment and technology.
Immediate deduction of equipment, R&D expenses considered
January 26, 2024
The Revenue Committee heard testimony Jan. 25 on a proposal intended to incentivize Nebraska businesses to invest in new equipment and technology.
Income tax credit for family caregivers proposed
January 26, 2024
Nebraskans could claim a state income tax credit for certain expenses they incur when caring for a family member under a bill heard Jan. 25 by the Revenue Committee.
NESCPA Legislative Update: Governor Pillen's Tax Package
January 23, 2024
Thank you to Society Chairman Kelly Martinson and State Board Chairman Melissa Ruff for testifying yesterday in support of LB854, which would allow individuals to sit for the CPA exam in Nebraska with a minimum of 120 semester hours or 180 quarter hours of qualifying college credit and a bachelor’s degree. Under current law, candidates may not sit for the exam until 120 days before reaching their 150 hours of college credit.
Pillen urges action on property tax "crisis" and ending "the era of special interest tax breaks"
January 19, 2024
— Gov. Jim Pillen pitched his proposal for "transformative" property tax relief on Thursday, calling for a broader sales tax, a "hard cap" on local school spending and the elimination of tax breaks won "by the best lobbyist." "We must lower our overall tax burden, widen our tax base, and end the era of special interest tax breaks," the first-term Republican said in his "State of the State" address.
• State senator says sales tax increase is necessary to lower property taxes by 40%
January 17, 2024
Sen. Linehan proposes 1-cent increase, but hopes it will be less; other bills would hike taxes on cigarettes, vaping products, and remove exemptions
NESCPA Legislative Update: Jan. 15, 2024
January 15, 2024
It’s Day 9 at the Nebraska Legislature. Click here for the Weekly Legislative Report from Radcliffe Gilbertson & Brady! Please let me know if you have any concerns with the bills that are listed.
NESCPA Legislative Update: Jan. 11, 2024
January 11, 2024
It’s Day 7 at the Nebraska Legislature. We are over the halfway point for state senators to introduce bills. Committee hearings will be Jan. 22-Feb. 29.
Gov. Pillen seeks 40% reduction in local property taxes but offers few details on how to do it
January 09, 2024
He voices support for broadening the sales tax base but would not say which sales tax exemptions should be eliminated.
Public can weigh in on Nebraska Legislature’s rules, including how filibusters work
January 08, 2024
The future of the filibuster, a tactic used to stall or kill bills, will be discussed at a public hearing scheduled for Monday on a variety of proposed legislative rules changes. Several state senators, including Speaker John Arch and State Sen. Steve Erdman of Bayard, who chairs the Legislature's Rules Committee, praised the proposals for offering a range of choices from minor tweaks to wholesale changes.
NESCPA Legislative Update: Day 1
January 03, 2024
Senators returned to the State Capitol Jan. 3 to begin the second session of the 108th Nebraska Legislature.
Rules debate, tax shift appetite among 5 things to watch in 2024 session of NE Legislature
January 03, 2024
Wednesday marks the start of the 2024 session of the Nebraska Legislature, a 60-day session that several lawmakers said they hope is less acrimonious than last year’s filibuster-fest. Here are some things to watch in the session, based on discussions with senators and lobbyists.
Gov. Pillen loads up pitch to raise state sales tax by 2 cents, to shift taxes away from property
January 02, 2024
Gov. Jim Pillen, in his quest to reduce local property taxes, has loaded up a self-described “bold and courageous” proposal to decrease property taxes via an increase in state sales taxes.
NESCPA Legislative Update: Happy Holidays & Here We Go!
December 22, 2023
Here is the first Legislative Update for the 108th Legislature, Second Session, from our lobbyists at Radcliffe, Gilbertson & Brady. Enjoy!
On final day of session, legislators give final OK for voter ID, tax break bills
June 02, 2023
State senators ended a tumultuous 2023 session Thursday, giving a final OK to bills concerning voter identification, tax breaks for economic development and criminal justice reform. The 90-day session ended two days early and will be remembered for historic tax cuts, hard feelings aired during floor debate, and an almost session-long string of filibusters mounted in protest of a bill that banned gender-affirming procedures for minors. State Sen. Tom Briese of Albion, a key player in the legislation that delivered income tax cuts and property tax relief,summed it up best: It was a "momentous session" for what got done and for how hard it was to get those things done.
Nebraska & Iowa Enact Pass-Through Entity Tax (PTET) Laws
May 31, 2023
Nebraska and Iowa enacted Pass-Through Entity Tax (PTET) legislation during the 2023 legislative sessions, joining 33 other states that allow PTET.
Senators override one gubernatorial veto, to grant additional funds for auditor
May 31, 2023
State lawmakers largely stuck with Gov. Jim Pillen on Wednesday, approving only one override of his budget vetoes — an additional $1.2 million for the State Auditor's Office. State Auditor Mike Foley had asked for additional funding, arguing that he was losing auditors to other state agencies because they could offer $20,000 to $30,000 more a year in pay due to 22% pay raises for state employees effective July 1 — raises not granted to auditor personnel.
Local view: Adapting for remote work
April 19, 2023
In a letter written to the Lincoln Journal Star, NE Chamber President Bryan Slone, the Platte Institute and the National Taxpayers Union Foundation discuss what makes Nebraska uncompetitive for remote workers – our tax code.
Nebraska governor joins state senators and tax groups in touting income tax cuts
April 19, 2023
Using "tax day" as a backdrop, Gov. Jim Pillen joined some key state senators and two tax groups Tuesday in touting legislative proposals that aim to reduce Nebraska's top income tax rate to 3.99% by 2027. Tuesday was the deadline to file state and federal income tax returns, and the governor and others maintained that the state needs to be more competitive when it comes to taxes. "It's really important that we have a tax policy that gets us in the game," Pillen said.
Commentary: Solution is more democracy, not less
April 18, 2023
Churchill once said, “Democracy is the worst form of government, except for all the others.” It’s surely messy and sometimes maddening. But democracy is self-correcting, so more of it truly is the solution. - George Ayoub
First bill passed
April 17, 2023
63 days into the 108th session, the Nebraska Legislature passed its first bill – LB376E – and forwarded it to the Governor for signature. The bill creates a brand registration for the Nebraska Liquor Control Commission, allowing the Commission to better identify alcoholic products being imported into or produced in the Cornhusker state.
How Nebraska can achieve a top 10 tax code
February 15, 2023
While many voters might not care about how much tax corporations are asked to pay, they do care about the opportunities these employers provide in their communities, so a state’s tax policies have to be aligned with the goal of landing corporate relocations and expansions. Nebraska currently has the 18th highest corporate income tax among all states. It used to be even higher.
NE Chamber launches Workforce & Economic Dashboard
March 10, 2022
The newly launched Nebraska Chamber Foundation Workforce & Economic Dashboard offers insights into Nebraska's economy.
Tax Foundation analyzes Blueprint Nebraska proposal
March 10, 2022
The Nebraska Revenue Committee recently heard LB1264, a bill to modernize Nebraska’s tax structure by reducing income tax rates, repealing the inheritance tax, expanding the sales tax base, and eliminating most incentives. Here's what the Tax Foundation has to say about the bill.
Society Priorities
The Nebraska Legislature is scheduled to convene on Wednesday, Jan. 5, 2022. The most effective way for legislators to understand issues facing the accounting profession is to receive input from the CPAs they represent. As experts in your field and key advisors to businesses of all sizes, your input is critical to both our state and our nation.
One of the best ways to connect with state legislators is to attend the Society’s annual State Senators’ Reception and Dinner, which will be held beginning at 6:00 p.m. on Jan. 4, 2022, in the Renaissance Room at The Cornhusker Marriott in downtown Lincoln. Although it was cancelled last year due to the COVID pandemic, this event carries a long-standing tradition of being the first official event prior to the start of the Legislative Session.
Click here to register for the Jan. 4 State Senators Reception & Dinner.
CPA Firm Ownership Bill. State Sen. John Stinner of Gering, a retired CPA, has agreed to introduce the Society’s bill that would make changes to CPA firm ownership. In a nutshell, the legislation would remove the physical “head count” ownership requirement for CPA firms while maintaining that CPAs must hold at least 51% equity ownership of a CPA firm. We are hopeful for passage of this bill during the upcoming session.
Universal Licensing. On Oct. 27, State Board Executive Director Dan Sweetwood, Society Lobbyist Walt Radcliffe, and I, along with representatives from the Nebraska Board of Engineers and Architects, met with State Sen. John McCollister of Omaha to request exclusion of our professions from LB263, the proposed universal licensing bill introduced by Sen. Tom Briese in the 2021 Legislative Session. After examining the “Amendments to LB263,” which Sen. McCollister shared with us that day, we were pleased to learn that the document did exclude “a credential issued for a certified public accountant pursuant to the Public Accountancy Act.”
Sen. McCollister was the sponsor of an interim study resolution, LR191, to explore the effect of universal licensing on groups that have traditionally faced barriers to occupational licensing; the hearing on LR191 was held Oct. 29 by the Nebraska Legislature’s Government, Military, and Veterans Affairs Committee, where Sen. McCollister presented the “Amendments to LB263.”
Exclusion of the CPA profession is the result of conversations among former State Sen. Laura Ebke, Society Past Chairman Jim Greisch, Sweetwood, and I this past spring. Ebke is presently a senior fellow with the Platte Institute and is focused on the state’s job licensing laws. Greisch is a retired partner with RSM and formerly served on the Platte Institute Board of Directors.
Under universal recognition, workers with job licenses, career experience, and military specialties would be able to come to Nebraska and receive licenses for jobs they were trained for in other states. While this bill may have its place for certain occupations, we believe there is a critical difference between occupations and highly complex, technical professions whose work impacts the health, safety, and welfare of the public. High-impact professions such as the CPA profession require rigorous licensing, including high standards for education, examination, and experience.
While exclusion of the CPA profession from this legislation is positive news, the Society will continue to monitor this bill as it is anticipated to move through the Legislature in 2022.
Taxation of Accounting Services. If you attended the Society’s Fall CPE Conference, you heard a presentation on Blueprint Nebraska’s “Framework for Tax Modernization” by Nebraska Chamber President Bryan Slone, Platte Institute Chief Strategy Officer and former State Sen. Jim Smith, and retired CPA Jim Griesch. The Blueprint Nebraska plan includes policy changes to individual income tax, corporate income tax, sales tax (including the addition of a sales tax on accounting services), incentive programs, elimination of the inheritance tax, and funds for property tax relief. Although we have not taken a formal position on this framework, the Society has historically been opposed to sales tax on accounting services. We will continue monitoring the progress of this framework (and other proposals) should legislative proposals come to fruition in the coming session.
On the Federal Level. Society Chairman Erica Parks, Past Chairman Pat Meyer, and I attended the virtual AICPA Council Meetings held with the Nebraska congressional delegation the week of Oct. 25. Both Parks and Meyer are members of the AICPA Governing Council representing the state of Nebraska. Meetings were held with Rep. Adrian Smith, Sen. Deb Fischer, and Alan Feyerherm, who is chief of staff for Rep. Jeff Fortenberry.
Among the topics covered were:
- Providing taxpayers with targeted COVID-19 tax penalty relief from the underpayment of estimated tax penalty and late payment penalty for the 2020 tax year;
- Granting the IRS authority to issue disaster relief in a timely manner in response to state-declared disasters;
- Recognizing accounting as a Science, Technology, Engineering and Math (STEM) profession; and
- Passing a Fiscal State of the Nation resolution that would ensure Congress is made aware of information in the federal financial statements so that they can gain a better perspective on the nation’s fiscal health. Since these meetings were held, the House has passed the resolution; it has yet to pass the Senate.
In addition, a small group of members participated in an in-person “CPA Roundtable” on Nov. 12 with Congressman Don Bacon in Omaha. Discussion included the bipartisan infrastructure deal as well as the Build Back Better framework. Rep. Bacon was one of the 13 House Republicans who has come under fire for voting for the $1.2 trillion infrastructure bill. He pointed out that the bill includes $2.5 billion for Nebraska roads, will provide more access to rural broadband, and will help fix the country’s highways, seaports, and locks. Most of the bill is paid for by unspent COVID money, said Bacon. He hopes the Democrats’ other bill, for $1.75 trillion to fund President Joe Biden’s Build Back Better agenda, does not succeed. Bacon said there has been a lot of misinformation on the infrastructure bill and that people were trying to attach these two bills together.