LB 1206 would exempt the income of certificated teachers, paraeducators, and paraprofessionals from Nebraska's state income tax. The bill amends Nebraska's tax code to exclude this specific group's earnings from taxable income calculations. This change directly affects educators working in Nebraska public schools who hold these roles. The policy creates a targeted tax exemption without altering other tax provisions or requiring new administrative processes.
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.
Nebraska's LB 882 amends tax exemption rules to expand homestead tax relief for veterans and surviving spouses. It directly affects veterans with 100% service-connected disability (or temporary disability), their unremarried surviving spouses, and spouses who remarried after age 57. The bill simplifies certification requirements: veterans qualifying under section 77-3506(2)(a) no longer need annual applications (only every 5 years), while others must provide annual certification from the VA, except every 5 years. Surviving spouses who remarry before age 57 lose their exemption, requiring notification to the county assessor.
LB 1152 creates a state grant program to help Nebraska cities, counties, tribes, and nonprofits recruit new households relocating from outside the state. Applicants must cover 20% of program costs and target households with annual incomes of at least $55,000. Grants fund relocation incentives and program administration, with payments tied to meeting half the household recruitment goal. Recipients must report semiannually on applications, approved households, and economic impact like tax revenue.
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.
Nebraska's LB 209 expands property tax exemptions for veterans and their surviving spouses by modifying homestead exemption rules. It also creates a new property tax break for for-profit skilled nursing, nursing, and assisted-living facilities that serve Medicaid beneficiaries. The tax exemption amount for these facilities equals the average percentage of occupied Medicaid beds over the previous three years. This change specifically applies to for-profit facilities - nonprofit facilities serving Medicaid already have separate, full exemptions under current law.
Nebraska's LB 272 expands homestead tax exemptions to include veterans with 10-99% service-connected disabilities (previously only 100% disability was covered) and their eligible surviving spouses. It directly affects disabled veterans receiving VA compensation for partial disabilities (not total exemption under other sections), as well as their unremarried spouses or surviving spouses who remarried after age 57. The bill adds a new eligibility category (subsection 2(g)) effective January 1, 2026, requiring annual tax exemption applications with VA certification - except for every fifth year. This changes prior rules that limited exemptions to 100% disabled veterans or specific surviving spouse scenarios.
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.
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.
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.
