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2018 Op. Neb. Att'y Gen. 1 (2018)

handle is hein.sag/sagne2018 and id is 1 raw text is: SUBJECT: REQUESTED BY: WRITTEN BY: STATE OF NEBRASKA of the ittorutp 2115 STATE CAPITOL BUILDING LINCOLN, NE 68509-8920 (402) 471-2682 TDD (402) 471-2682 FAX (402) 471-3297 or (402) 471-4725 Off ire Constitutionality of the Refundable Income Tax Credits in LB 829 and LB 947. Senator John Kuehn Nebraska Legislature Douglas J. Peterson, Attorney General L. Jay Bartel, Assistant Attorney General INTRODUCTION You have requested our opinion regarding the constitutionality of two bills which would provide a refundable income tax credit based on a percentage of property taxes paid during the taxable year. The first bill (LB 829) provides each taxpayer a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 in the amount of fifty percent of the school district taxes levied on the taxpayer's property and paid by the taxpayer during such taxable year. LB 829, § 3. The second bill (LB 947) provides each resident individual who is an owner of a homestead shall be allowed a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 equal to a percentage of the property taxes paid during the taxable year on such homestead . . . . LB 947, § 3(1). For taxable year 2018, the refundable credit shall be ten percent of the property taxes paid during the taxable year. Id. The amount of the credit is capped at $230 for 2018. LB 947, § 3(2). The bill provides a mechanism for the credit to increase in subsequent years by a percentage not to exceed 30 percent, and for the cap to increase by a maximum of $50 per year, not to exceed $730. LB 947, §§ 3, 5. LB 947 also provides that each resident individual shall be allowed a refundable credit DOUGLAS J. PETERSON ATTORNEY GENERAL ~entral STATE OF NERASTKA OFFICIAL MAR 2 1 2018 DEPT. OF JUSTICE