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.
This bill modifies how Nebraska handles state aid to local governments (cities, counties, and other political subdivisions) that miss financial deadlines. If a local government fails to comply with budget limits, submit property tax calculations, or complete annual audits, the state will suspend their funding for six months. If compliance isn't achieved within that period, the funds are forfeited and redistributed to other local entities in the same county or returned to state funds. After 12 months of non-compliance, the local government becomes ineligible for future state aid until it meets all requirements.
LB 527A is an appropriation bill that allocates specific state and federal funds to two health programs (344 and 348) under Nebraska's Department of Health and Human Services to support implementation of Legislative Bill 527. It provides $18.05 million for Program 344 and $162.40 million for Program 348 in fiscal year 2025-26, with increased amounts for 2026-27, sourced from the Medicaid Access and Quality Fund and federal Medicaid funds. The bill restricts these funds to the purposes of Legislative Bill 527 and prohibits their use for state employee salaries. Approved by the governor on April 7, 2025, it takes immediate effect due to an emergency declaration.
LB 527 creates a Medicaid Access and Quality Fund by imposing a 6% tax on certain health insurance premiums starting January 2026. The fund will increase payments to nonhospital Medicaid providers (like clinics and doctors) to improve access to care, especially for rural patients, pregnant women, and children. It also allocates $75 monthly per patient to primary care providers who serve as medical homes for Medicaid beneficiaries. This directly affects Nebraska Medicaid beneficiaries, healthcare providers, and insurance companies paying the tax.
This bill proposes a constitutional amendment to ban Nebraska from imposing an inheritance tax. If approved by voters in November 2026, it would add a new section to the state constitution prohibiting both the state government and local political subdivisions (like cities or counties) from levying such taxes. The amendment would take effect immediately upon voter approval, eliminating the legal authority for any Nebraska entity to collect inheritance taxes. It does not create new taxes or affect existing tax structures beyond this specific prohibition.
This bill allocates $278,900 for fiscal year 2025-26 and $262,100 for fiscal year 2026-27 from Nebraska’s General Fund to the Department of Revenue’s Program 102. The funds are specifically designated to support the implementation of Legislative Bill 169 (a separate bill), with a cap on salary and per diem expenses at $190,900 for 2025-26 and $197,000 for 2026-27. As an appropriations measure, it provides necessary funding for a state program without changing policy or law.
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.
This bill allocates $5 million from the Securities Act Cash Fund for fiscal year 2025-26 and an additional $5 million for fiscal year 2026-27 to the Department of Banking and Finance's Program 66. The funds are specifically designated to support the implementation of Legislative Bill 468 (the referenced bill), with explicit restrictions prohibiting their use for state employee salaries or per diems. As a funding measure for another bill, it does not establish new policy but provides financial resources for an existing legislative initiative.
This Nebraska constitutional amendment (LR 12CA) would limit property taxes on real estate to a maximum of 1.5% of a property's full cash value starting in 2027. It directly affects all Nebraska property owners, particularly homeowners, by capping annual tax rates on real property. Key provisions include allowing higher taxes for specific voter-approved bonds (e.g., school construction with 55% voter approval) but requiring strict accountability measures like annual audits for those projects. The amendment also updates tax valuation methods for agricultural land, motor vehicles, and other property classes while eliminating conflicting existing constitutional language.
LB 230A is an appropriation bill that allocates $251,010 for fiscal year 2025-26 and $121,600 for fiscal year 2026-27 from the Department of Revenue Enforcement Fund to the Department of Revenue. The funds are specifically designated for "Program 102" to support the implementation of Legislative Bill 230 (the parent bill), with salary limits of $88,600 for 2025-26 and $91,400 for 2026-27. This bill directly affects the Department of Revenue’s operations by providing targeted funding for Program 102. As a procedural funding measure, it does not change policy but enables the execution of another legislative act.
