County opposes inheritance plan

Wednesday, February 12, 2003
McNutt

Red Willow County commissioners strongly oppose proposed state legislation that would divert the county's inheritance taxes to state coffers, and Tuesday afternoon asked that counties continue to be allowed to collect and spend their own inheritance taxes.

The board also discussed a possible change in their weekly meeting, and bids on a new roof on the sheriff's building and new carpeting for the treasurer's and clerk's offices.

Chairman Earl McNutt said Red Willow County could lose the use of approximately $220,000-$300,000 in inheritance taxes each year if LB507, LB508 and LB509 were to be enacted. No hearing date has been set for these bills.

Under LB507, inheritance taxes would be paid to the state tax commissioner, who would, each month, distribute a share back to counties, plus interest, based on a five-year average of inheritance tax receipts.

LB508 uses the same formula, but the taxes would be considered restricted funds for budget purposes. Under LB509, inheritance taxes would be paid to the state tax commissioner but credited to the state's general fund until Jan. 1, 2006. After that date, funds would be returned to counties based on the same five-year average proposed in LB 507 and LB508.

Member Steve Downer objected to the proposed legislation. "There's no use letting the state have our inheritance taxes. There is no guarantee it would come to the county," Downer said.

McNutt said inheritance taxes are a key budgeting tool for counties, which use the funds to help pay for projects that may otherwise go unfunded or may create additional tax burden on tax payers. "I truly believe inheritance taxes should be paid to and handled by the counties," McNutt said.

Downer called inheritance taxes, "a safety net" for counties, who can fall back on the funds during times of irregular tax collections.

McNutt said inheritance taxes can help build a county's cash reserve. "In a lot of cases, inheritance taxes are a security blanket for counties," he said.

Members signed a resolution, which will be forwarded to the Nebraska Association of County Officials which also opposes the proposed legislation.

State Sen. Tom Baker of Trenton is a member of the Legislature's Revenue Committee which is considering the legislation.

Commissioners tabled a final decision until Feb. 18, at 2:45 p.m., but they discussed changing their regular weekly meeting from Tuesday afternoon to Monday morning.

McNutt said Monday mornings may be a better time for the county attorney to attend commissioners' meetings.

The board will have to follow a legal process to change their meeting date.

Maintenance Director Greg Holthus presented commissioners the only bid for commercial, high-traffic carpeting in the treasurer's and clerk's offices, vaults and adjoining smaller rooms.

They also approved Samway Floor Covering and Furniture's bid of $4,241, which does not include an additional fee for moving furniture and computers prior to carpet installation, floor preparation and metal trim.

Holthus said the project will take up to four weekends, and will entail hiring some help to move furniture in and out. Commissioners agreed to advertise for a new sprayed-on polyurethane foam roof for the sheriff's building.

The new roof will replace the existing rubber and rock roof. Bids will be opened at 2 p.m., Feb. 25.

In other action, commissioners:

- Received a press release from the U.S. Department of Homeland Security regarding homeland security.

- Approved a tax exemption request from St. Patrick's Catholic Church for a 4-wheel-drive Jeep to run errands and for transportation to rural St. Ann and Sacred Heart churches.

- Reviewed and filed monthly fee reports from the clerk of the district court and the county clerk.

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