Nebraska's LB 848 creates a temporary sales tax exemption for specific items during a three-day window each August (beginning 12:01 a.m. Friday to midnight Sunday). It exempts clothing under $100, school supplies under $50 per purchase, computer software under $350, graphing calculators under $150, and personal computers/peripherals under $1,500. The exemption applies only to items purchased for personal use during this period, excluding items like jewelry, sporting equipment, or furniture. This policy directly affects Nebraska residents buying these items for personal or educational use during the designated annual sales tax holiday.
Nebraska's LB 873 imposes a 10% excise tax on retail sales of kratom products starting July 1, 2027, requiring retailers to maintain electronic sales records and file monthly tax returns. It updates the definition of "adulterated" kratom products to include those containing specific alkaloids (like 7-hydroxymitragynine) without meeting legal definitions or mixed with dangerous non-kratom substances. Retailers and processors face escalating penalties: up to $1,000 for first violations, $5,000 for second, and up to $20,000 for third violations, with processors risking a 3-year sales ban for selling adulterated products. The tax revenue will fund the Property Tax Credit Cash Fund, and retailers may avoid penalties if they reasonably relied on a processor's representation that a product was compliant.
LB 856 imposes a 5% excise tax on gas stations, convenience stores, and liquor stores selling alcohol, tobacco, or cigarettes for off-premises consumption operating in designated low-income census tracts (qualified census tracts). The tax, collected like sales tax starting January 2027, funds a Community Reinvestment Fund directing money to federally qualified health centers, homeless services, healthy food access, childcare, and community development programs. Covered businesses must annually report community investments (like local hiring or health center partnerships) and will receive public ratings based on their contributions, with "Outstanding" or "Satisfactory" ratings unlocking website recognition and grant eligibility. The bill targets businesses in areas facing health disparities and disinvestment, using revenue to support local services.
Nebraska's LB 849 exempts over-the-counter (OTC) drugs from state sales and use taxes, effective October 1, 2026. The bill amends tax code section 77-2704.09 to explicitly include OTC drugs in the list of tax-exempt items, alongside insulin, prescription drugs, and medical equipment. This directly affects Nebraska residents purchasing OTC medications, as they will no longer pay state sales tax on these products. The exemption applies to drugs meeting FDA labeling requirements for OTC status as defined in the bill.
LB 705 updates Nebraska's medical cannabis laws by expanding patient access, regulating the industry, and addressing past convictions. It allows qualified patients to possess up to five ounces of cannabis, defines key terms (like "caregiver" and "cannabis product"), and imposes a special sales tax on medical cannabis sales - revenue from which will fund specific programs. The bill also prohibits open cannabis containers in vehicles, removes medical cannabis from marijuana tax categories, and adopts the Cannabis Conviction Clean Slate Act to expunge eligible past cannabis convictions. These changes directly affect medical cannabis patients, caregivers, dispensaries, and individuals with prior cannabis-related criminal records.
Nebraska LB 677 updates the state's medical cannabis framework by clarifying key definitions (like "cannabis products" and "caregivers"), establishing new licensing rules for cultivators and dispensaries, and imposing a special sales tax on medical cannabis sales. It prohibits open cannabis containers in vehicles, removes medical cannabis from existing marijuana tax categories, and directs tax revenue to specific state funds. The bill directly affects qualified patients, registered caregivers, cannabis businesses, and the Nebraska Liquor Control Commission, which now oversees regulation. It also repeals outdated provisions and harmonizes existing laws, though it remains pending in committee as of March 2025.
Nebraska's LB 316 establishes new rules for hemp-derived products, specifically targeting cannabidiol (CBD) products. It defines CBD products as those containing cannabidiol as a primary ingredient with strict THC limits (max 0.3% dry weight or 10mg per package), prohibits non-compliant hemp products, and imposes a 10% retail excise tax on CBD sales starting January 1, 2026. The bill also creates a "consumer safe harbor period" through December 31, 2025, during which individuals won't face prosecution for possessing non-compliant hemp products if they surrender them for destruction. These changes directly affect CBD retailers (requiring tax collection and recordkeeping) and consumers (via the safe harbor provision).
LB 650 updates Nebraska's tax and development laws by amending multiple statutes related to revenue, property tax, and tax credits. It sets a sunset date for sports complex and stadium applications under the Sports Arena Facility Financing Assistance Act, eliminates sales tax exemptions for internet towers, net wrap, and twine, and adjusts sales tax collection fees. The bill also modifies tax credit programs under acts like the Nebraska Advantage Rural Development Act and the Renewable Chemical Production Tax Credit Act, while repealing outdated provisions including the Sustainable Aviation Fuel Tax Credit Act. These changes primarily affect businesses, local governments, and developers utilizing tax incentives for community development projects.
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.
