This bill creates a new "military impact funding" mechanism for Nebraska school districts serving children of active-duty military members. Districts receive state funds calculated by comparing per-pupil federal impact aid (from the Elementary and Secondary Education Act) to per-pupil local tax levies, with the difference paid for each enrolled military-connected child. This funding is added to the state's school finance formula starting in the 2025-26 school year. It directly affects districts that received federal impact aid in the prior year and provide free education to military-connected students.
LB 291 creates a new state grant program called the Aid to Municipalities Act, providing cities and villages with funds to finance eligible infrastructure projects. Municipalities can apply for grants (capped at $5 million each) through the Department of Economic Development to cover construction, acquisition, or bond payments for projects like water systems, wastewater treatment, airports, convention centers, and transportation facilities (excluding public roads). The state will appropriate $15 million annually into a dedicated fund for these grants, requiring separate accounting to ensure funds are used solely for approved infrastructure. This bill directly affects Nebraska municipalities by offering new state financial support for critical local infrastructure development.
LB 115 increases the income tax credit for volunteer emergency responders in Nebraska from its previous amount to $1,250 per year. It directly affects volunteer firefighters, emergency responders, and rescue squad members who are certified as active for the prior year. The bill changes qualification rules by requiring departments to submit certified lists of eligible volunteers to the state by February 15 each year, and volunteers claim the credit on their state tax returns using certification documents. The amendment replaces the previous credit amount and procedures under the Volunteer Emergency Responders Incentive Act.
LB 425 expands Nebraska's homestead tax exemption to include veterans with 80-99% service-connected disability (previously limited to 100% disabled veterans) and their eligible surviving spouses. It adds new qualifying categories under subsection (2)(g), allowing these veterans and surviving spouses (who remarried after age 57) to receive a tax exemption equal to their disability percentage (e.g., 85% disabled = 85% exemption). The bill also modifies application requirements: annual certification for most exemptions, but certification every five years for some categories. It takes effect January 1, 2026, and repeals the previous version of the exemption law. This directly affects disabled veterans with partial service-connected disabilities and their surviving spouses who meet specific criteria.
LB 200 reinstates tax exemptions for specific properties under Nebraska's Personal Property Tax Relief Act, directly affecting state/local government entities, nonprofit organizations (educational, religious, charitable, cemetery), and Medicaid-serving healthcare facilities. The bill restores exemptions for government property used for public purposes, nonprofit properties used exclusively for their mission (not for profit or discrimination), and skilled nursing facilities serving Medicaid beneficiaries (with exemptions based on average occupancy). It also clarifies that student housing exemptions apply only to common areas of buildings owned by charities and made available to students. The bill amends multiple tax code sections to harmonize these provisions without creating new exemptions.
LB 498 updates Nebraska's school funding formula under the Tax Equity and Educational Opportunities Support Act. It changes foundation aid calculations: for school years 2023-24 and 2024-25, aid is $1,500 per formula student, but starting 2025-26, it will increase annually based on the Consumer Price Index. The bill also revises certification deadlines for school funding (moving the key date to March 1 annually) and reduces the portion of foundation aid counted toward school budgets from 100% to 60% for 2025-26 and later. These changes directly affect all Nebraska public school districts receiving state foundation aid.
LB 449 amends Nebraska's state highway planning rules to prioritize preserving existing roads while establishing new criteria for project selection. The bill requires the Department of Transportation to consider traffic volume, safety, economic development, and population trends when setting priorities, and mandates that at least 70% of highway revenue raised in each district must fund projects within that same district. It also requires the highway system plan to designate expressways and account for district-specific revenue allocation. These changes directly affect Nebraska's transportation districts, local projects, and citizens by altering how highway funds are distributed and prioritized.
This bill redefines "formula students" for calculating state education aid under Nebraska's Tax Equity and Educational Opportunities Support Act. It changes how school districts count students to determine funding, specifically adjusting for kindergarten enrollment patterns and including qualified early childhood education students. The new formula uses average daily membership and makes specific adjustments for non-full-day kindergarten programs. This directly affects all Nebraska school districts receiving state education funding by altering the calculation method for their aid payments.
This bill requires the state of Nebraska to cover 50% of specific operational costs for county courts, directly affecting county courts and their budgets. It specifies that the state must pay for 50% of expenses related to computer hardware/software for data/word processing, communication lines for those systems, and recording equipment used in court proceedings. Counties will no longer bear these costs for the listed items, though they remain responsible for all other court expenses. The bill repeals the previous version of the statute governing these costs.
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.
