LINCOLN- On Tuesday, Sen. Rob Clements' LB1067, which seeks to eliminate the state inheritance tax and establish a source of replacement revenue, was amended into Sen. McDonnell's LB1363. The amendment would replace lost inheritance tax revenue by sending roughly $11 million per year to counties from the documentary stamp tax charged on sellers of homes and property.

Only six states currently impose an inheritance tax, which Sen. Clements argued unfairly penalizes those who inherit farms and forces some retirees to move away to avoid the tax on their assets. Clements' original LB1067 faced fierce opposition from the Nebraska Association of County Officials.

NACO maintained that the state's counties would have to raise property taxes to replace the $65 million or more that they get yearly from the inheritance tax. According to Clements, the new stamp tax increase would more than offset the annual revenue the counties expected to lose if his original proposal had passed.

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