Budget & Taxes

LB 194 amends Nebraska's documentary stamp tax law to expand exemptions for certain family property transfers. The bill adds exemptions for deeds between spouses, parents and children, and transfers to family-owned corporations, partnerships, or LLCs (when all ownership is held by family members within the fourth degree of kinship) without payment. Transfers must be made in the business entity's name, not the individual's, to qualify for the exemption. This directly affects families and small family-run businesses that move property without monetary exchange.

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 However, the bill was withdrawn on February 13, 2025, and is no longer active. As a withdrawn proposal, it did not become law or affect any taxpayers.