LB 974 would impose a supplemental 9.5% excise tax on individual income above $1 million for single filers or $2 million for married couples filing jointly, calculated after subtracting existing income tax rates. It creates the "Tax Equity Cash Fund" to collect this new tax revenue, which the Department of Revenue would manage. Funds in the account may only be used for administrative costs related to the tax or transferred to three specific state funds (General Fund, Education Future Fund, or Property Tax Credit Cash Fund), not for new programs. This bill directly affects high-income Nebraskans earning above the thresholds, with no specified new spending beyond fund transfers.
LB 1142 amends Nebraska's Visitors Development Act to restructure tourism administration and fund distribution. It creates a new Director of Tourism position within the Department of Economic Development and revises the Nebraska Tourism Commission's structure. Key provisions include redirecting 40% of cash device tax revenue to the "Nebraska Tourism Commission Promotional Cash Fund" (previously called the "State Visitors Promotion Cash Fund") and adjusting allocations for other funds like the Charitable Gaming Operations Fund. The bill directly affects tourism promotion efforts, local governments receiving tax distributions, and businesses operating cash devices like slot machines. These changes aim to streamline tourism funding and governance under the Department of Economic Development.
Nebraska's LB 1110 modifies tax collection and revenue rules. It requires taxpayers to pay a $25 fee or 10% of unpaid tax liability (whichever is greater) for delinquent income taxes and related notices. The bill also allows the Department of Revenue to share confidential information with the Department of Health and Human Services for administrative purposes, and changes how gambling tax revenue is distributed (40% to the Charitable Gaming Division, 60% to the General Fund). These changes affect taxpayers, the Department of Revenue, and state gambling programs, with fees subject to annual inflation adjustments starting in 2027.
This bill changes Nebraska's sales tax rate schedule and adjusts how tax revenue is distributed to state funds. It sets the sales tax rate at 5.5% from October 2025 through July 2027, with a reduced rate of 2.75% in certain "good life districts" during that period. The bill also modifies fund distributions, continuing to direct vehicle-related sales tax revenue (for motorboats, ATVs, etc.) to the Game and Parks Commission Capital Maintenance Fund, while adding a requirement to transfer a portion of these funds to the Emergency Medical System Operations Fund starting July 2024. Additionally, it adjusts how highway-related tax revenue is split between the Highway Trust Fund and Highway Allocation Fund.
Nebraska's LB 1260 changes how motor vehicle tax revenue is distributed, directly affecting counties, local school systems, and cities/villages. It increases the percentage counties retain from 1% to 2% after July 1, 2028, and adjusts allocations: for example, school systems receive 60% before 2028 but 48% after, with a new quarterly "motor vehicle tax supplement" (48.8% of allocated funds) paid directly to schools starting October 2028. The bill also revises tax schedules based on vehicle age and modifies funding formulas under the Tax Equity and Educational Opportunities Support Act. These changes aim to update revenue distribution mechanisms while maintaining school funding through the supplement.
LB 1257 changes Nebraska's tax structure by ending certain sales tax exemptions (like for agricultural machinery) and requiring sales and use taxes on previously exempt services. It also eliminates the School District Property Tax Relief Act, modifies limits on how much school districts can collect in property taxes, and provides additional state funding for schools through the Tax Equity and Educational Opportunities Support Act. These changes directly affect businesses selling services (now subject to tax) and school districts (losing tax relief but receiving new state aid). The bill aims to increase state revenue while adjusting school funding mechanisms.
LB 1067 adjusts how documentary stamp tax revenue is distributed to fund housing programs in Nebraska. It specifies that for every $2.82 collected on property transfers (deeds), 95 cents goes to the Affordable Housing Trust Fund, 75 cents each to the Rural Workforce and Middle Income Workforce Housing Investment Funds, and smaller portions to other housing-related funds. The bill harmonizes existing tax allocation rules across these funds and ensures collected revenue is used solely for designated housing purposes. This directly affects property sellers and buyers paying the transfer tax, with funds supporting affordable housing initiatives. The changes take effect upon enactment, modifying current tax distribution formulas.
Nebraska's LB 873 imposes a 10% excise tax on retail sales of kratom products starting July 1, 2027, requiring retailers to maintain electronic sales records and file monthly tax returns. It updates the definition of "adulterated" kratom products to include those containing specific alkaloids (like 7-hydroxymitragynine) without meeting legal definitions or mixed with dangerous non-kratom substances. Retailers and processors face escalating penalties: up to $1,000 for first violations, $5,000 for second, and up to $20,000 for third violations, with processors risking a 3-year sales ban for selling adulterated products. The tax revenue will fund the Property Tax Credit Cash Fund, and retailers may avoid penalties if they reasonably relied on a processor's representation that a product was compliant.
Nebraska's LB 990 renames the "School District Property Tax Relief Act" to the "Live Here Thrive Here Act" and changes the "School District Property Tax Relief Credit Fund" to the "Live Here Thrive Here Credit Fund." The bill modifies how property tax credits are distributed by adjusting the state's fiscal transfer process under Section 77-4602. Specifically, it directs funds to the new credit fund based on comparisons between actual and estimated state revenue, with the State Treasurer making transfers according to these calculations. This policy change directly affects property owners in Nebraska school districts who receive tax credits for real property taxes paid.
LB 1038 changes how Nebraska school districts can raise funds through property taxes and modifies property tax credits. It eliminates certain property tax credits for homeowners and adjusts school district levy limits, allowing districts more flexibility in setting local tax rates. The bill redirects tax revenue streams, increasing funding for the Education Future Property Tax Credit Cash Fund (from 70% to 40% for cash device taxes) and modifying how General Fund transfers support schools. These changes directly affect school districts (by altering their tax-raising authority) and property taxpayers (through eliminated credits).
