Change motor vehicle taxes, fees, and allocations, provide for a motor vehicle tax supplement, and change local system formula resources under the Tax Equity and Educational Opportunities Support Act

Nebraska's LB 1260 changes how motor vehicle tax revenue is distributed, directly affecting counties, local school systems, and cities/villages. It increases the percentage counties retain from 1% to 2% after July 1, 2028, and adjusts allocations: for example, school systems receive 60% before 2028 but 48% after, with a new quarterly "motor vehicle tax supplement" (48.8% of allocated funds) paid directly to schools starting October 2028. The bill also revises tax schedules based on vehicle age and modifies funding formulas under the Tax Equity and Educational Opportunities Support Act. These changes aim to update revenue distribution mechanisms while maintaining school funding through the supplement.