Budget & Taxes (Sales Tax)

died · Nebraska · Legislature Feb 13, 2025

LR 10CA: Constitutional amendment to require the state to impose a consumption tax or an excise tax on all new goods and services and to provide a tax exemption for grocery items

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 The bill was withdrawn on February 13, 2025, and did not advance further.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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates new consumption tax on goods/services (excluding groceries), directly advancing tax policy for state revenue generation.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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died · Nebraska · Legislature Apr 17, 2026

LB 117: Provide a sales and use tax exemption for electricity, natural gas, propane, and sewer utilities

LB 117 exempts residential users from Nebraska's sales and use tax on electricity, natural gas, propane, and sewer utilities. It directly affects homeowners and renters in apartments or commercial properties primarily used as residences, where utilities are billed separately from rent. The bill amends tax code section 77-2704.13 to exclude these utility services from taxation when used for qualifying residential purposes. The exemption takes effect January 1, 2026, and repeals the previous tax treatment for these utilities. This is a direct tax policy change for residential utility consumers, not a procedural measure.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts residential utilities from sales tax, providing direct tax relief to homeowners/renters, aligning with middle-income tax relief indicators.95% confidence ✓ EnergySupports EnergyExempts residential utilities from sales tax, lowering consumer costs (protects utility consumers)85% confidence ✓ HousingSupports HousingExempts residential utility taxes (electricity, gas, etc.), directly reducing housing costs for homeowners and renters, aligning with affordable housing goals.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives Oil & Gas Renters

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died · Nebraska · Legislature Apr 17, 2026

LB 269: Change provisions relating to the state database of sales and use tax rates for local jurisdictions

This bill requires Nebraska to create and maintain a new state database that maps exact addresses to local sales tax rates, replacing the previous zip-code-based system. It mandates 120 days' advance notice to the state tax office for boundary changes and 60 days' notice to retailers before tax rate changes take effect. The database will help online retailers accurately apply tax rates based on customer locations, reducing errors in remote sales transactions. The Nebraska Department of Revenue must verify address data and tax rates in the system to ensure compliance.

Topics ✓ Budget & TaxesSupports Budget & TaxesImproves tax collection accuracy through precise rate mapping, enhancing fiscal management in sales tax administration80% confidence

Sub-Topics Sales Tax

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signed · Nebraska · Legislature Feb 26, 2025

LB 208: Change provisions relating to sales tax collection fees, confidentiality of sales tax information, the streamlined sales and use tax agreement, a sales tax database, and certain income tax credits

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies sales tax filing requirements to streamline collection, enforces electronic payments with reconciliation, and imposes penalties for non-compliance, promoting fiscal accountability and efficient tax administration.92% confidence

Sub-Topics Income Tax Sales Tax

died · Nebraska · Legislature Apr 17, 2026

LB 479: Change the distribution of sales and use tax revenue

LB 479 changes how Nebraska distributes sales and use tax revenue from specific vehicle sales. It directs all tax money from motorboats, personal watercraft, ATVs, and utility vehicles to the Game and Parks Commission fund (with transfers to emergency medical services), and adjusts allocations for longer-term vehicle rentals and general sales taxes. Starting October 1, 2025, 85% of general sales tax revenue from most transactions will go to the Highway Trust Fund and 15% to the Highway Allocation Fund. The bill modifies existing tax distribution rules without creating new taxes, affecting state funds managing transportation, parks, and emergency services. It repeals the current funding allocation section and becomes effective October 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects sales tax revenue to Highway Trust Fund and Game & Parks Commission, increasing funding for public infrastructure and services.95% confidence ✓ TransportationSupports TransportationDirects 85% of general sales tax revenue to Highway Trust Fund for transportation infrastructure, explicitly funding road/highway projects per bill summary.95% confidence

Sub-Topics Revenue Sales Tax Roads & Highways Transportation Funding

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died · Nebraska · Legislature Apr 17, 2026

LB 699: Change provisions relating to certain sales and use tax incentives under the ImagiNE Nebraska Act

LB 699 amends Nebraska's ImagiNE Act to adjust eligibility requirements for sales and use tax incentives. It sets three investment thresholds for businesses: $5 million with 30 new hires, $250 million with 250 new hires, or $50 million with no specific hire requirement. To qualify, businesses must pay wages at least 150% of Nebraska's statewide average hourly wage and offer health insurance coverage to full-time employees. The bill provides tax refunds on qualifying property purchases and exemptions from future sales/use taxes during the program period, subject to these new conditions. It directly affects businesses seeking to expand in Nebraska under the ImagiNE program.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax refunds for qualifying businesses under revised incentive program, advancing fiscal policy for economic development95% confidence ✓ HealthcareSupports HealthcareRequires businesses to offer health insurance to full-time employees to qualify for tax incentives, expanding employee coverage under ImagiNE Act.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires 150% wage threshold and health insurance for tax incentive eligibility, advancing worker compensation standards85% confidence

Sub-Topics Sales Tax Minimum Wage

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died · Nebraska · Legislature Apr 17, 2026

LB 510: Change provisions relating to the sales tax rate, the Good Life Transformational Projects Act, and the Good Life District Economic Development Act

LB 510 adjusts Nebraska's sales tax structure by establishing a reduced 2.75% rate for transactions within designated "Good Life Districts" (areas approved under the Good Life Transformational Projects Act), while maintaining a standard 5.5% rate elsewhere. To qualify for the lower rate, cities or villages must first impose at least 2.75% in local sales or occupation tax on those districts. The bill also updates eligibility rules for projects in these districts, requiring minimum development costs ($100 million to $1 billion depending on city size) and job creation targets (50 to 1,000 new jobs), with additional visitor or out-of-state sales requirements for larger counties. These changes apply to projects meeting specific criteria under Sections 77-4405 and 77-4406 of Nebraska law, impacting developers, local governments, and businesses operating in designated economic zones.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes reduced 2.75% sales tax rate in designated economic development districts, providing targeted tax relief to stimulate local growth and development.90% confidence

Sub-Topics Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 330: Change provisions relating to the sales tax rate and create the Alcohol Addiction Prevention and Treatment Fund

LB 330 adjusts Nebraska's sales tax rate to 5% starting October 1, 2025 (down from 5.5%), with reduced rates for certain transactions in designated "good life districts." It creates the Alcohol Addiction Prevention and Treatment Fund, directing 50% of sales tax revenue from alcohol sales (at a 15.5% rate) to this new fund, while the other 50% goes to the Education Future Fund. The bill modifies how sales tax revenue is distributed across state funds, effective October 1, 2025, and repeals previous tax rate provisions. It directly affects all consumers purchasing taxable goods and alters state budget allocations for alcohol-related revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces sales tax rate and allocates 50% of alcohol tax revenue to new public health fund, advancing fiscal policy for essential services.95% confidence ✓ HealthcareSupports HealthcareBill creates Alcohol Addiction Prevention and Treatment Fund, allocating 50% of alcohol sales tax revenue to directly fund addiction treatment services under public health programs.90% confidence

Sub-Topics Business Taxes Procurement Sales Tax Substance Abuse

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died · Nebraska · Legislature Apr 17, 2026

LB 648: Change the sales and use tax rate

Nebraska's LB 648 changes the state's sales tax rate structure, setting a uniform 5.5% rate for most transactions from July 2024 through June 2026, with a reduced 2.75% rate in designated "good life districts" for certain sales. The bill also updates how sales tax revenue is distributed, directing proceeds from vehicle, boat, and aircraft sales to specific funds like Game and Parks, Highway Trust, and Aeronautics Capital Improvement. It becomes effective July 1, 2026, and repeals prior tax rate sections, though the exact rate after 2026 is listed as "XX percent" pending further action. This bill directly affects all Nebraska consumers and businesses selling taxable goods or services, including those in designated districts.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects vehicle/boat/aerospace sales tax revenue to Highway Trust, Game and Parks, and Aeronautics Capital Improvement funds, directly funding public infrastructure and conservation programs.95% confidence ✓ TransportationSupports TransportationDirects vehicle sales tax revenue to Highway Trust Fund for infrastructure projects, explicitly funding transportation infrastructure as per bill's revenue distribution provisions.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax Roads & Highways

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died · Nebraska · Legislature Apr 17, 2026

LB 169: Eliminate certain sales and use tax exemptions and impose sales and use tax on certain services

Nebraska's LB 169 removes existing tax exemptions for specific services, requiring sales tax to be collected on them for the first time. It directly affects consumers and businesses using services like car repairs, haircuts, lawn care, legal services, and home maintenance that were previously tax-exempt. The bill repeals exemptions listed in sections 77-2704.53, 77-2704.56, and others, while adding these services to the tax base under the "Services purchased for nonbusiness use" category. This policy change shifts tax liability from the state to these previously exempt transactions, with the tax department mandated to report on such revenue impacts.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemptions for services, expanding tax base to increase state revenue and close loopholes, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Sales Tax

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