This bill modifies Nebraska's Property Tax Growth Limitation Act and School District Property Tax Relief Act. It changes how municipalities and school districts calculate annual property tax limits by revising formulas for "allowable growth" (accounting for new construction, annexation, and inflation) and adjusting budget calculation methods. The bill also updates rules for municipal occupation taxes, property tax statements, and allows counties to retain certain funds for costs under the School District Property Tax Relief Act. These changes directly affect local governments, school districts, and county treasurers in managing property tax revenues. The bill amends specific statutes (13-518, 13-3403, etc.) but does not alter the underlying tax rates or revenue collection mechanisms.
Nebraska bill LB 343 changes the fee for specialty license plates from $70 to $40 per plate starting October 1, 2025. This directly affects residents who purchase or renew specialty plates for cars, trucks, or trailers. The bill specifies that 60% of the fee goes to the Department of Motor Vehicles Cash Fund and 40% to the Highway Trust Fund. It also maintains existing provisions for plate transfers ($3 fee) and temporary stickers.
LB 55 allocates $1.5 million from the Hospital Quality Assurance and Access Assessment Fund for FY2025-26 to maintain Medicaid reimbursement rates for mental health providers who serve patients eligible for both Medicaid and Medicare (dual-eligible). It specifically ensures these providers - those not practicing in hospitals - are paid at current Medicaid rates for behavioral health services (Program 348) when Medicare rates are lower. The bill directly affects mental health providers serving dual-eligible Medicaid/Medicare patients by preventing reduced payments. Note: This bill was amended into LB261 on June 6, 2025, and is no longer active.
LB 402 would allow Nebraska's Department of Labor to collect overpaid unemployment benefits by applying them against an individual's gambling winnings (like casino or sports betting payouts), expanding the existing Gambling Winnings Setoff system. It directly affects people who received unemployment benefits they weren't entitled to under the Employment Security Law. The bill changes the statute of limitations for recovering these overpayments and updates the law to include unemployment debts in the setoff process. This replaces the previous system where unemployment overpayments weren't covered under the gambling winnings collection mechanism. The bill also repeals the original sections it amends.
LB 381 amends Nebraska's Medical Assistance Act to update rules for program integrity audits conducted by contractors. It requires contractors to provide clear written justification for starting audits, limit review periods to one year (except for fraud), send detailed audit results within 180 days, and notify providers of overpayment determinations with specific details like beneficiary names and claim numbers. The bill also mandates that audits be conducted by healthcare professionals in relevant specialties, requires advance notice for onsite audits (at least 10 business days), and prohibits recovery of payments for services with prior authorization. These changes directly affect medical providers and program integrity contractors by standardizing audit procedures and improving transparency in billing disputes.
Nebraska's LB 253 requires health insurers and Medicaid to cover biomarker testing for diagnosis, treatment, or monitoring of diseases when supported by medical evidence. This includes tests approved by the FDA, aligned with drug labels, or recommended by nationally recognized clinical guidelines. Insurers must cover these tests without unnecessary delays, approving or denying prior authorization requests within 24-72 hours, and provide clear exception processes for patients. The law applies to all health insurers and Medicaid plans in Nebraska, effective January 1, 2026, directly affecting patients needing these tests and healthcare providers ordering them.
This bill changes election timing for Nebraska's larger cities (classified as "metropolitan class"). Starting in 2028, city council and mayoral elections will align with statewide primaries and general elections, replacing separate local elections. It requires seven city council members to be elected from districts, with terms beginning after each election. The bill amends multiple statutes to standardize election dates, candidate nomination rules, and ballot procedures for these cities.
LB 435 amends Nebraska's Conveyance Safety Act to update safety rules for elevators, escalators, and similar equipment. It eliminates the process for granting "variances" but replaces it with "equivalency requests" allowing alternative safety solutions when approved by the State Fire Marshal. The bill clarifies which conveyances are exempt (like agricultural equipment and certain industrial machinery) and adjusts inspection requirements, including removing periodic inspections for elevators in private homes in smaller counties. These changes primarily affect elevator contractors, building owners, and safety inspectors who must follow updated regulations.
LB 451 changes how Nebraska allocates excess funds from the Unclaimed Property Trust Fund annually. For 2025 through 2034, the first $1 million of any excess balance each year must be transferred to the Capitol Restoration Cash Fund, with remaining funds going to the Permanent School Fund; before 2025 and after 2034, all excess funds over $1 million go directly to the Permanent School Fund. The bill also creates an Unclaimed Property Cash Fund to cover related administrative costs and harmonizes existing fund transfer rules. These changes affect state fund management but do not alter how unclaimed property claims are processed or handled by the public.
This bill expands Nebraska's Educational Savings Plan Trust to include savings plans for elementary and secondary school expenses, previously limited to higher education. It amends multiple statutes (including 85-1801 to 85-1817 and 72-1239.01) to define and include K-12 education savings accounts within the trust framework. The change directly affects public and private elementary/secondary schools by allowing families to use these savings plans for K-12 costs. Key provisions clarify that assets in these accounts will not count toward eligibility for certain state assistance programs, aligning K-12 savings with existing higher education tax benefits. The bill focuses on structural updates to the trust rather than new tax policies.
LB 270 would have allowed Nebraska's Auditor of Public Accounts to conduct audits of businesses suspected of reporting errors in sales and use tax filings, expanding oversight beyond the current Tax Commissioner authority. It directly affects businesses collecting sales tax and local municipalities, which could now share confidential tax information under new exceptions to standard confidentiality rules. The key provision created a specific exception permitting municipalities to disclose tax data when necessary for audits related to local tax collection. However, this bill was amended into LB 650 on June 6, 2025, and is no longer active as a standalone measure.
This bill updates Nebraska's definitions for "disabled veteran" and "blind veteran" to align with federal standards under 5 U.S.C. 2108 (as of January 1, 2025). It changes eligibility for two existing tax exemptions: motor vehicle tax breaks (under section 60-3,185) and mobile home property tax exemptions (under section 77-202.24) for veterans whose disability or blindness is service-connected and recognized by the U.S. Department of Veterans Affairs. To qualify, veterans must now meet specific federal criteria, such as having lost the use of or undergone amputation of two or more limbs, or one limb plus loss of use in another. The changes take effect January 1, 2026, and repeal the previous definitions.
