LINCOLN, Neb. (AP) – Nebraska’s powerful farm interests are questioning Gov. Dave Heineman’s proposed income-tax overhaul, asking whether the state should instead focus instead on reducing property taxes.
The governor unveiled two plans Friday that would eliminate millions of dollars in sales-tax exemptions for commercial seed, farm chemicals, machinery and fuel used by farmers. Steve Nelson, president of the Nebraska Farm Bureau, says the governor’s plan would increase the tax burden on farmers, whose incomes rise and fall depending on how much they produce. Nelson says he’s open to discussion but would have preferred property tax relief in the mix. Heineman, a Republican, told lawmakers in his State of the State address that many of the farmers he has visited are willing to talk about a simpler and more efficient tax system.