Change provisions relating to negotiations and agreements between the Governor and federally recognized Indian Tribes relating to the collection and dissemination of any cigarette tax or certain other tobacco products tax collected on sales of such products made or sold on a federal recognized Indian tribe’s Indian country

Nebraska's LB 1037 modifies how the state handles cigarette and tobacco tax refunds for sales on tribal lands. It replaces individual refund applications with a new process where tribes can negotiate a tax refund formula with the Governor, capping refunds at taxes actually paid by tribal businesses on tribal land. The bill directly affects federally recognized tribes selling tobacco products on their own land (where state tax is precluded by federal law) and the state tax office. Key provisions require the Governor to negotiate in good faith with tribes upon request, establish a 60-day negotiation timeline, and ensure negotiated formulas don't exceed actual tribal tax payments.