Nebraska bill LB 597 modifies how public school districts receive state education funding under the Tax Equity and Educational Opportunities Support Act. Starting with the 2025-26 school year, foundation aid will be calculated as the greater of $1,500 per formula student or 7.5% of each district's basic funding. It also reduces the percentage of foundation aid counted toward formula resources from 100% to 60% for future years and adjusts local effort rate calculations (reducing the deduction from property tax levies from 5 cents to 10 cents). These changes directly affect all Nebraska public school districts receiving state 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.
This bill (LR 11CA) proposed a constitutional amendment to ban all taxes in Nebraska except retail sales taxes and excise taxes, effective January 1, 2028. It would have prohibited state and local governments from imposing income taxes, property taxes, or other tax types. The amendment required voter approval in the November 2026 election and included specific ballot language. However, the bill was withdrawn on February 13, 2025, and is no longer active.
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.
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.
LB 710 increases Nebraska's earned income tax credit (EITC) for low- and moderate-income residents who qualify for the federal EITC. It raises the state refundable credit rate from 10% to 20% of the federal EITC amount for tax years beginning January 1, 2025, and adjusts income thresholds. The credit phases out for individuals with federal adjusted gross income above $22,000, reducing by 10% for each $1,000 earned over that amount. This change directly benefits eligible Nebraska residents who currently receive the federal EITC, providing them with additional state tax relief.
Nebraska's LB 503 creates a program allowing counties to become "American energy friendly counties" to earn additional tax revenue from privately owned renewable energy facilities (like solar and wind installations). To qualify, counties must relax zoning rules - permitting renewable projects by right without discretionary approvals, setting noise limits at 50 decibels, and limiting setbacks (e.g., 300 feet for solar). The Department of Revenue will track designated counties and the annual tax revenue generated from these facilities. This policy directly affects county governments (through new revenue options) and renewable energy developers (by standardizing local permitting requirements).
