Budget & Taxes (Sales Tax)

died · Nebraska · Legislature Apr 17, 2026

LB 1244: Eliminate certain sales and use tax exemptions, impose sales and use tax on certain services, and change provisions relating to the Nebraska Job Creation and Mainstreet Revitalization Act

LB 1244 removes existing sales and use tax exemptions for specific services, making them taxable for the first time. It directly affects businesses providing services like vehicle maintenance, lawn care, veterinary care, legal services, and personal care (e.g., haircuts), as well as consumers who purchase these services for personal use. The bill adds tax to services previously exempt under categories such as "cleaning and repair of other tangible personal property" and "lawn care, gardening, and landscaping services." It also requires the state to report on tax exemptions, including a new category tracking services subject to the new tax. This changes the tax base by expanding coverage beyond physical goods to include many personal service transactions.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemptions for services like lawn care and legal services, expanding taxable base to increase state revenue. Closes loopholes, aligning with fiscal responsibility.90% confidence

Sub-Topics Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 848: Provide for exemption from sales tax for purchases of clothing, personal computers, and school supplies for a prescribed period

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary sales tax exemption on essential items (clothing, school supplies), reducing tax burden for lower/middle-income families during back-to-school season.95% confidence ✓ EducationSupports EducationExempts school supplies, computers, and clothing under $100 from sales tax, reducing costs for families and improving access to educational materials during back-to-school period.85% confidence ✓ TechnologySupports TechnologyExempts personal computers/peripherals under $1,500 from sales tax, lowering costs for access and promoting digital equity during back-to-school period.85% confidence

Sub-Topics Sales Tax Tax Incentives

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died · Nebraska · Legislature Apr 17, 2026

LB 873: Provide for an excise tax on kratom products and change provisions of the Kratom Consumer Protection Act relating to adulterated products

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 10% excise tax on kratom products, creating new state revenue stream under tax policy90% confidence

Sub-Topics Property Tax Revenue Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 856: Adopt the Community Reinvestment and Equity Act, establish an excise tax, and create a fund and a grant program

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 5% excise tax on businesses in low-income areas to fund health centers, homeless services, and community programs, directly allocating tax revenue to public services.95% confidence

Sub-Topics Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 849: Provide a sales and use tax exemption for over-the-counter drugs

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts OTC drugs from sales tax, providing tax relief for essential health products and reducing consumer tax burden per amended tax code section 77-2704.09.95% confidence ✓ HealthcareSupports HealthcareExempts OTC drugs from sales tax, reducing costs for consumers and improving access to essential health products like medications.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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died · Nebraska · Legislature Apr 17, 2026

LB 705: Change provisions of the Nebraska Medical Cannabis Patient Protection Act and the Nebraska Medical Cannabis Regulation Act, provide for regulation of medical cannabis, and adopt the Nebraska Medical Cannabis Justice Act and the Cannabis Conviction Clean Slate Act

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes special sales tax on medical cannabis with revenue funding specific programs, directly supporting budget allocation and fiscal management.95% confidence ✓ Criminal JusticeSupports Criminal JusticeIncludes Cannabis Conviction Clean Slate Act to expunge past cannabis convictions, reducing barriers for affected individuals and advancing criminal justice reform.95% confidence ✓ HealthcareSupports HealthcareExpands medical cannabis patient access (up to 5oz), regulates industry, and funds programs via sales tax - directly advancing healthcare access and patient rights under medical treatment framework.92% confidence

Sub-Topics Sales Tax Drug Policy

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died · Nebraska · Legislature Apr 17, 2026

LB 677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes special sales tax on medical cannabis and directs revenue to state funds, generating new tax revenue for fiscal management.90% confidence ✓ HealthcareSupports HealthcareRegulates medical cannabis access, enabling patient treatment under healthcare framework per bill's focus on medical use and patient access provisions90% confidence

Sub-Topics Revenue Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 316: Prohibit conduct relating to hemp other than cannabidiol products and change provisions of the Nebraska Hemp Farming Act and the Uniform Controlled Substances Act

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).

Topics ✓ Budget & TaxesSupports Budget & TaxesBill imposes 10% retail excise tax on CBD sales starting 2026, creating new state revenue stream for budget management.95% confidence

Sub-Topics Sales Tax

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signed · Nebraska · Legislature Jun 6, 2025

LB 650: Adopt the Community Development Assistance Act and change provisions relating to land banks, property tax exemptions, real property sold for delinquent taxes, sales tax provisions, and certain tax credits

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loopholes by eliminating sales tax exemptions for internet towers and agricultural products, strengthening state revenue collection.95% confidence

Sub-Topics Sales Tax

died · Nebraska · Legislature Feb 13, 2025

LB 331: Adopt the Nebraska EPIC Option Consumption Tax Act and terminate tax provisions

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly replaces multiple state taxes with a consumption tax, directly restructuring Nebraska's tax system and fiscal management as a core policy change.95% confidence

Sub-Topics Income Tax Sales Tax

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