This bill modifies how Nebraska handles state aid to local governments (cities, counties, and other political subdivisions) that miss financial deadlines. If a local government fails to comply with budget limits, submit property tax calculations, or complete annual audits, the state will suspend their funding for six months. If compliance isn't achieved within that period, the funds are forfeited and redistributed to other local entities in the same county or returned to state funds. After 12 months of non-compliance, the local government becomes ineligible for future state aid until it meets all requirements.
LB 116 amends definitions in Nebraska's Convention Center Facility Financing Assistance Act and Nebraska Visitors Development Act to clarify eligibility for state funding. It specifies that "associated hotels" and "nearby retailers" must be within 600 yards of a convention center (with special rules if near the State Capitol), and excludes new sports arenas with over 16,000 seats from becoming "eligible facilities" for state assistance. The bill also adjusts funding limits, capping total state assistance at $150 million per project, with modified rules for facilities near the State Capitol. These changes directly affect local governments seeking state financial support for convention center development or related infrastructure.
LB 396 modifies how Nebraska's public power districts submit budgets and audits to the Nebraska Power Review Board. It requires districts to create annual budgets showing detailed revenue and spending from the prior two years, make these budgets available for public inspection 7 days before board meetings, and post any last-minute changes at district headquarters. The bill also mandates that districts file completed financial audits with both the Auditor of Public Accounts and the Nebraska Power Review Board within 180 days after their fiscal year ends. These changes apply directly to public power districts, public power and irrigation districts, and rural power districts operating under Nebraska law. The bill repeals the original budget and audit filing requirements it amends.
LB 609A appropriates $232,777 for fiscal year 2025-26 and $185,061 for fiscal year 2026-27 from the Financial Institution Assessment Cash Fund to the Department of Banking and Finance's Program 65. This funding supports the implementation of Legislative Bill 609 (which established a new banking oversight program) and limits salary/per diem expenses to $85,000 for 2025-26 and $87,125 for 2026-27. The bill directly affects the Department of Banking and Finance and its Program 65 operations.
Nebraska's LB 209 expands property tax exemptions for veterans and their surviving spouses by modifying homestead exemption rules. It also creates a new property tax break for for-profit skilled nursing, nursing, and assisted-living facilities that serve Medicaid beneficiaries. The tax exemption amount for these facilities equals the average percentage of occupied Medicaid beds over the previous three years. This change specifically applies to for-profit facilities - nonprofit facilities serving Medicaid already have separate, full exemptions under current law.
LB 208 modifies Nebraska's sales tax filing requirements based on annual tax liability: businesses with less than $900 yearly tax obligation file annually, those with $900-$3,000 file quarterly, and those over $3,000 file monthly. It adds rules for electronic payments via the streamlined sales tax agreement, requiring annual reconciliation and imposing a 50% penalty if payments miss the target by over 10%. The bill also updates confidentiality protections for sales tax data, adjusts annual limits for certain income tax credits, and clarifies filing rules for seasonal retailers and combined returns. These changes primarily affect Nebraska retailers and businesses collecting sales tax, streamlining compliance with state and multi-state tax agreements.
LB 194 amends Nebraska's documentary stamp tax law to expand exemptions for certain family property transfers. The bill adds exemptions for deeds between spouses, parents and children, and transfers to family-owned corporations, partnerships, or LLCs (when all ownership is held by family members within the fourth degree of kinship) without payment. Transfers must be made in the business entity's name, not the individual's, to qualify for the exemption. This directly affects families and small family-run businesses that move property without monetary exchange.
LB 182 amends Nebraska's Affordable Housing Tax Credit Act and Child Care Tax Credit Act to clarify how tax credits can be used. It allows developers of affordable housing projects to transfer or sell their allocated tax credits to other taxpayers (like investors), and expands permitted uses of child care tax credits beyond their original scope. The bill specifically updates rules for allocating credits to pass-through entities (like partnerships or LLCs) and ensures credits only apply to projects completed after 2018. These changes directly affect affordable housing developers and childcare providers seeking tax credit benefits.
LB 331 proposed replacing Nebraska's existing income, property, sales, and other taxes with a single "consumption tax" on goods and services, effective by 2028. It would have terminated the state income tax, property tax, sales tax, inheritance tax, and related laws by December 2027, while defining taxable items like groceries and education services. The bill aimed to shift the tax burden from income and property to consumption, with specific rules for exemptions and tax calculations. However, the bill was withdrawn on February 13, 2025, and is no longer active. As a withdrawn proposal, it did not become law or affect any taxpayers.
This Nebraska constitutional amendment (LR 10CA) would have required the state to impose a consumption or excise tax on all new goods and services starting January 1, 2028, with only grocery items for off-premises consumption exempt. It would have affected all Nebraskans purchasing new products or services, as the tax would apply broadly except for groceries. The bill was withdrawn on February 13, 2025, and did not advance further. It proposed a constitutional change to mandate this tax structure, which would have been implemented without legislative approval beyond the amendment itself. The proposal was never voted on by the public.
