Lawmakers are looking for ways to replace the revenue that Nebraska counties would lose if the state's inheritance tax was repealed.
The push on Friday came amid pressure from Gov. Dave Heineman to eliminate the tax, which counties use to pay for road maintenance and other services.
Bellevue Sen. Abbie Cornett says lawmakers could use revenue from the state motor vehicle tax, or provide the counties with direct state funding. They also could give counties more taxing authority, although that idea would face long odds.
The Open Sky Policy Institute, a Nebraska tax-policy think tank, said in a report Friday that eliminating the inheritance tax would force counties to cut services, drain their reserves or raise property taxes.
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