LB 564 adjusts Nebraska's School District Property Tax Relief Act by increasing annual funding for property tax credits. It mandates escalating transfers from the General Fund to the School District Property Tax Relief Credit Fund, starting at $750 million for fiscal year 2024-25 and increasing by $150 million each subsequent year through 2030-31 (e.g., $780 million in 2025-26, $808 million in 2026-27). These credits directly reduce property tax bills for homeowners in Nebraska school districts, calculated based on prior-year school district taxes and applied to tax statements. Unused credits are returned to the fund, and counties distribute funds to school districts via a defined formula. The bill repeals prior funding provisions and takes effect immediately upon enactment.
LB 212 changes Nebraska's tax on cigars, cheroots, and stogies by setting a 20% tax on the purchase price or manufacturing price, with a maximum tax of $0.50 per item. This directly affects first owners (importers or manufacturers) and retailers selling these tobacco products. The bill repeals the previous tax structure for these items and takes effect October 1, 2025. The change applies specifically to these products, not other tobacco or e-cigarette taxes.
LB 711 amends Nebraska's school funding rules to adjust how districts calculate "new schools school adjustments" for state aid. It requires districts seeking this adjustment (for new buildings expanding student capacity) to submit evidence of planned student growth and building use by October 15 annually. The bill sets limits: adjustments cannot drop below 100% or exceed 112% of the prior year's calculation for most districts, stabilizing funding changes. These changes directly affect Nebraska school districts applying for new building-related state aid under the Tax Equity and Educational Opportunities Support Act.
LB 440, the Education Leave and Support Act, creates a state fund to help school districts cover costs when teachers take federal medical leave (FMLA). It requires school districts to collect a 0.35% payroll fee from certificated teachers' wages (with employers matching this amount), which funds the State Education Leave Fund. This fund reimburses school districts for hiring substitutes during the first six weeks of a teacher's FMLA leave, ensuring teachers don’t need to use personal or sick leave during that period. Any surplus funds over 20% of annual needs will transfer to an Education Retention Fund to address teacher shortages and support professional development. The bill takes effect January 1, 2026, with reimbursements starting July 1, 2026.
This bill changes how Nebraska handles unanticipated revenue in the state's General Fund. It requires the Tax Commissioner to calculate two specific amounts each year: the difference between actual and estimated revenue, and a more complex calculation based on historical growth trends. If actual revenue exceeds estimates, the excess must be transferred to the Cash Reserve Fund - unless revenue exceeds last year's by over 3%, in which case part of the excess goes to the School District Property Tax Relief Credit Fund instead. The bill also limits the Cash Reserve Fund balance to 16% of total General Fund spending, with exceptions for emergencies or capital projects. This directly affects state budget management and school funding through the property tax relief mechanism.
LB 152 creates a homestead exemption in Nebraska, effective January 1, 2026, that exempts the first $100,000 of a primary residence's actual value from property taxes. It directly affects Nebraska homeowners who occupy their property as their primary residence, as defined by the bill. Key provisions include setting the exemption amount, allowing transfers of the exemption when moving to a new homestead, and requiring state reimbursement for the tax loss. The bill harmonizes existing homestead exemption rules and amends multiple tax statutes to implement this change.
This bill proposes a constitutional amendment requiring Nebraska's state government to fully reimburse local governments (such as cities and counties) for costs associated with new state-mandated programs or increased service levels implemented after 2026. The amendment would add a specific provision to the state constitution stating that the Legislature cannot impose such financial obligations on political subdivisions without providing a dedicated state appropriation or revenue increase to cover the full cost. It directly affects local governments by ensuring they won't bear unexpected expenses from state-mandated initiatives after 2026. The amendment must be approved by voters in the 2026 general election to take effect.
LB 623 allocates specific funds from Nebraska's General Fund for two fiscal years (2025-26 and 2026-27) to a designated state program. The bill specifies that $XXX for 2025-26 and $XXX for 2026-27 must be used solely for state aid within that program. It declares an emergency to allow immediate implementation upon approval. The bill's exact funding amounts and program details are represented by placeholders ($XXXX) in the text.
LB 305 creates a Nebraska tax credit for licensed physicians who serve as unpaid preceptors in medical student training programs. Physicians participating in approved preceptorship programs can claim a $1,000 tax credit per clinical rotation (minimum 80 hours), capped at $5,000 annually per physician. The credit is nonrefundable and prioritizes physicians in rural counties (under 100,000 residents), with a total annual limit of $1 million across all applicants. This policy directly affects Nebraska physicians participating in medical education programs, aiming to support rural healthcare training by reducing their tax burden. The bill amends Nebraska’s tax code to include this new credit as a specific provision.
LB 296A is a funding bill that allocates $0 from the State Department of Education Improvement Grant Fund for fiscal years 2025-26 and 2026-27 to support Legislative Bill 296. It specifies that total expenditures for salaries and per diems from these funds cannot exceed $160,197 for 2025-26 or $165,403 for 2026-27. The bill directly affects the State Department of Education by providing a procedural funding mechanism for another legislative act. This is a technical appropriations measure with no actual monetary allocation, solely establishing budgetary parameters for a related bill.
