Budget & Taxes

died · Nebraska · Legislature Jun 6, 2025

LB 401: Change provisions relating to income taxes imposed on partnerships and small business corporations and notices of deficiency determinations, deficiencies, and denials of claims for refunds

Nebraska bill LB 401 updates rules for sales and use tax filings and compliance for retailers. It changes filing frequencies based on annual tax liability: annual filings for businesses owing under $900 yearly, quarterly for $900-$3,000, and monthly for over $3,000. The bill also adds a reconciliation requirement where businesses must adjust payments if discrepancies exceed 10% of what was paid, with a 50% penalty on unpaid amounts. It clarifies rules for seasonal retailers and accounts receivable transfers, including surety bond requirements for subsidiaries handling unpaid taxes. This directly affects retailers and businesses collecting Nebraska sales tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesUpdates tax filing rules and enforces compliance via penalties, promoting fiscal responsibility in tax collection per bill's reconciliation requirements and filing frequency adjustments.92% confidence

Sub-Topics Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 242: Change the Property Tax Growth Limitation Act and the School District Property Tax Relief Act and change provisions relating to budget limitations, municipal occupation taxes, and property tax statements

This bill modifies Nebraska's Property Tax Growth Limitation Act and School District Property Tax Relief Act. It changes how municipalities and school districts calculate annual property tax limits by revising formulas for "allowable growth" (accounting for new construction, annexation, and inflation) and adjusting budget calculation methods. The bill also updates rules for municipal occupation taxes, property tax statements, and allows counties to retain certain funds for costs under the School District Property Tax Relief Act. These changes directly affect local governments, school districts, and county treasurers in managing property tax revenues. The bill amends specific statutes (13-518, 13-3403, etc.) but does not alter the underlying tax rates or revenue collection mechanisms.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies Property Tax Growth Limitation Act and School District Property Tax Relief Act, adjusting formulas to account for new construction and inflation. The 'relief' in the title directly aligns with tax relief indicators for middle/lower i...90% confidence

Sub-Topics Property Tax Revenue

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died · Nebraska · Legislature Apr 17, 2026

LB 131: Include elementary and secondary schools in the Nebraska educational savings plan trust and change tax benefits

This bill expands Nebraska's Educational Savings Plan Trust to include savings plans for elementary and secondary school expenses, previously limited to higher education. It amends multiple statutes (including 85-1801 to 85-1817 and 72-1239.01) to define and include K-12 education savings accounts within the trust framework. The change directly affects public and private elementary/secondary schools by allowing families to use these savings plans for K-12 costs. Key provisions clarify that assets in these accounts will not count toward eligibility for certain state assistance programs, aligning K-12 savings with existing higher education tax benefits. The bill focuses on structural updates to the trust rather than new tax policies.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax benefits for K-12 education savings, providing tax relief through modified trust framework per bill's tax benefit changes.95% confidence ✓ EducationSupports EducationExpands educational savings access to K-12 schools, enabling families to use trust funds for K-12 expenses, supporting broader educational funding options.95% confidence

Sub-Topics School Choice

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died · Nebraska · Legislature Apr 17, 2026

LB 270: Provide for a review by the Auditor of Public Accounts for suspected sales and use tax reporting irregularities and discrepancies

LB 270 would have allowed Nebraska's Auditor of Public Accounts to conduct audits of businesses suspected of reporting errors in sales and use tax filings, expanding oversight beyond the current Tax Commissioner authority. It directly affects businesses collecting sales tax and local municipalities, which could now share confidential tax information under new exceptions to standard confidentiality rules. The key provision created a specific exception permitting municipalities to disclose tax data when necessary for audits related to local tax collection. However, this bill was amended into LB 650 on June 6, 2025, and is no longer active as a standalone measure.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax audit authority to ensure accurate sales tax collection, promoting fiscal responsibility and preventing revenue loss from reporting errors.90% confidence

Sub-Topics Audits & Accountability Sales Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 547: Redefine disabled veteran for purposes of motor vehicle and property tax exemptions

This bill updates Nebraska's definitions for "disabled veteran" and "blind veteran" to align with federal standards under 5 U.S.C. 2108 (as of January 1, 2025). It changes eligibility for two existing tax exemptions: motor vehicle tax breaks (under section 60-3,185) and mobile home property tax exemptions (under section 77-202.24) for veterans whose disability or blindness is service-connected and recognized by the U.S. Department of Veterans Affairs. To qualify, veterans must now meet specific federal criteria, such as having lost the use of or undergone amputation of two or more limbs, or one limb plus loss of use in another. The changes take effect January 1, 2026, and repeal the previous definitions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption eligibility for veterans, providing tax relief through updated federal alignment for motor vehicle and property tax breaks.95% confidence ✓ VeteransSupports VeteransAligns state tax exemptions with federal VA recognition, expanding eligibility for disabled veterans' motor vehicle and property tax breaks per federal standards.95% confidence

Sub-Topics Property Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 494: Change provisions relating to the School District Property Tax Relief Act and transfers of General Fund net receipts to the Cash Reserve Fund and the School District Property Tax Relief Credit Fund

This bill amends Nebraska's School District Property Tax Relief Act by changing how state tax revenue is distributed between two funds. It establishes a formula to determine whether excess tax revenue goes to the Cash Reserve Fund or the School District Property Tax Relief Credit Fund, based on comparisons between actual and estimated state tax collections. The bill specifically mandates increasing annual transfers from the General Fund to the School District Property Tax Relief Credit Fund, starting with $750 million in 2024-25 and growing to $902 million by 2029-30, with future years increasing by 3% annually. These transfers directly fund property tax credits for homeowners in school districts, reducing their annual tax burden.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates increased transfers to School District Property Tax Relief Credit Fund, providing tax relief for school districts via state revenue distribution95% confidence ✓ EducationSupports EducationMandates increased General Fund transfers to School District Property Tax Relief Credit Fund, directly boosting school district funding per bill's specific language.95% confidence

Sub-Topics Revenue

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died · Nebraska · Legislature Apr 17, 2026

LB 626: Authorize redevelopment projects involving affordable housing under the Community Development Law

LB 626 amends Nebraska's Community Development Law to streamline how cities declare areas as "extremely blighted" for redevelopment projects involving affordable housing. It requires cities to conduct studies, hold public hearings, and get planning commission recommendations before declaring an area blighted - ensuring transparency and community input. The bill also sets a 25-year minimum validity for such designations, linking them to tax benefits and affordable housing incentives under existing laws (like tax credits in §77-2715.07). This procedural change directly affects Nebraska cities planning affordable housing projects, though the bill was amended into LB288 and did not advance further.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill links redevelopment designations to tax benefits for affordable housing projects, enabling fiscal incentives to promote housing affordability and public good.90% confidence ✓ HousingSupports HousingStreamlines affordable housing redevelopment via tax incentives and community input requirements, advancing housing access through streamlined processes and incentives.95% confidence

Sub-Topics Affordable Housing Community Development Property Development

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died · Nebraska · Legislature Jun 6, 2025

LB 566: Eliminate a sunset date relating to an income tax credit for the purchase of certain residential property

LB 566 removes an expiration date for Nebraska's refundable income tax credit for qualifying homebuyers. The bill specifically targets Section 77-2715.07(2)(b), which provides a credit equal to 100% of the federal credit for individuals with federal adjusted gross income under $29,000. This change makes the credit permanent for eligible low-to-moderate income residents purchasing residential property in Nebraska. The bill does not alter the credit amount, eligibility requirements, or other provisions of the tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends permanent tax credit for low-income homebuyers (AGI < $29k), providing tax relief to middle/lower income residents per tax credit policy.95% confidence ✓ HousingSupports HousingPermanently extends income tax credit for low-income homebuyers ($29k AGI), directly increasing affordable housing access for qualifying residents.95% confidence

Sub-Topics Income Tax Procurement

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signed · Nebraska · Legislature Jun 6, 2025

LB 261: Appropriate funds for the expenses of Nebraska State Government for the biennium ending June 30, 2027, and appropriate Federal Funds allocated to the State of Nebraska pursuant to the federal American Rescue Plan Act of 2021

LB 261 is Nebraska's state budget bill for fiscal years 2025-26 and 2026-27, allocating funds for government operations, education, capital projects, and federal American Rescue Plan Act funds. It reappropriates unspent balances from previous years and specifies how federal recovery funds must be used, including restrictions on salary spending. The bill requires agencies to submit detailed budget reports and limits total salary/wage expenditures unless federal funds cover the excess. This directly affects all state agencies, universities, and programs receiving state or federal funds during the 2025-2027 budget period.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates state/federal funds for government operations, education, and capital projects while enforcing fiscal responsibility through salary spending limits.90% confidence ✓ EducationSupports EducationBill allocates state and federal funds for education, including American Rescue Plan Act recovery funds. Restrictions on salary spending apply only to federal funds, but overall funding for education is explicitly provided.90% confidence ✗ Labor & EmploymentOpposes Labor & EmploymentBill explicitly limits total salary/wage expenditures unless federal funds cover excess, restricting state funding for wages and workplace compensation.85% confidence

Sub-Topics Appropriations State Budget

died · Nebraska · Legislature Apr 17, 2026

LB 662: Provide for a federal funding inventory from each state agency and restrict maintenance-of-effort requirements

LB 662 requires Nebraska state agencies receiving federal funds to submit detailed annual reports to the Department of Administrative Services by September 15 each even-numbered year. The reports must include the total federal funding received, state match requirements, contingency plans for funding cuts, and specific details about each federal agreement. The bill also prohibits state agencies from agreeing to federal "maintenance-of-effort" requirements (like mandatory state spending matches) without prior legislative approval. This directly affects all state agencies that accept federal grants or contracts, aiming to increase transparency and prevent automatic state spending commitments.

Topics ✗ Budget & TaxesOpposes Budget & TaxesProhibits maintenance-of-effort requirements, preventing mandatory state spending matches for federal funds, reducing state budget obligations.90% confidence ✗ EducationOpposes EducationProhibits maintenance-of-effort requirements, potentially allowing states to reduce education funding without federal penalties.85% confidence

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