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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1257

Introduced by Hansen, 16.
Read first time January 21, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend sections1
2-2701, 77-2701.24, 77-2701.36, 77-2704.03, 77-2704.04, 77-2704.05,2
77-2704.07, 77-2704.10, 77-2704.13, 77-2704.14, 77-2704.16,3
77-2704.17, 77-2704.22, 77-2704.23, 77-2704.24, 77-2704.25,4
77-2704.26, 77-2704.27, 77-2704.28, 77-2704.30, 77-2704.38,5
77-2704.39, 77-2704.40, 77-2704.41, 77-2704.42, 77-2704.45,6
77-2704.46, 77-2704.47, 77-2704.48, 77-2704.50, 77-2704.51,7
77-2704.52, 77-2704.53, 77-2704.56, 77-2704.57, 77-2704.58,8
77-2704.60, 77-2704.61, 77-2704.62, 77-2704.63, 77-2704.64,9
77-2704.65, 77-2704.67, 77-2706, 77-27,235, 79-1006, and 79-3405,10
Reissue Revised Statutes of Nebraska, sections 77-382, 77-2701,11
77-2701.04, 77-2701.32, 77-2703.01, 77-2704.12, 77-2704.15,12
77-2704.20, 77-2704.36, 77-2704.68, 77-2704.69, and 77-27,132,13
Revised Statutes Cumulative Supplement, 2024, and sections14
77-2701.16, 77-2703, 77-2706.02, 77-3442, 77-4403, 77-4405, 77-4602,15
77-7304, and 77-7305, Revised Statutes Supplement, 2025; to define16
and redefine terms; to impose sales and use taxes on services as17
prescribed; to eliminate certain sales tax exemptions; to change18
school district levy limitations and provide exceptions; to change19
provisions relating to the transfer of funds; to eliminate the20
School District Property Tax Relief Act; to terminate a fund; to21
provide additional foundation aid under the Tax Equity and22
Educational Opportunities Support Act; to change provisions of the23
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School District Property Tax Limitation Act; to create a fund; to1
harmonize provisions; to provide an operative date; to repeal the2
original sections; and to outright repeal section 77-2701.56,3
Revised Statutes Cumulative Supplement, 2024. 4
Be it enacted by the people of the State of Nebraska,5
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Section 1. Section 2-2701, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
2-2701 (1) No person shall be permitted to sell or dispose of any3
current tractor model of one hundred or more horsepower in the State of4
Nebraska without first having (a) made application for a permit and5
obtained a permit to sell the tractor model, (b) the model tested by the6
University of Nebraska onsite or offsite or by any Organization for7
Economic Cooperation and Development test station, and (c) the model8
passed upon by the board. 9
(2) A person may obtain a permit to sell or dispose of a current10
tractor model of less than one hundred horsepower by meeting the permit11
requirements of sections 2-2701 to 2-2711. A purchaser of a current12
tractor model is not eligible to claim the exemption from sales and use13
tax for agricultural machinery and equipment under section 77-2704.3614
unless the current tractor model has been permitted for sale pursuant to15
sections 2-2701 to 2-2711. 16
(3) Each and every tractor model presented for testing shall be a17
stock model and shall not be equipped with any special accessory unless18
regularly supplied to the trade. Any tractor model not complying with19
this section shall not be tested under sections 2-2701 to 2-2711.20
Applications shall be made to the board and shall be accompanied by21
specifications of the tractor model required by the board and by the22
applicable fees specified in sections 2-2705 and 2-2705.01.23
(4) If an official test application, with the required24
specifications and fees, is submitted to any Organization for Economic25
Cooperation and Development test station or to the University of Nebraska26
and an application for a temporary permit and the fee prescribed in27
section 2-2705.01 are submitted, the department, with the approval of the28
board, may issue a temporary permit for the sale of the tractor model29
specified in the official test application. The date on which the30
temporary permit terminates shall be fixed by the board. All temporary31
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permits shall be conditioned upon such tractor model being tested at a1
mutually agreed-upon date, and the person to whom a temporary permit has2
been issued shall submit a tractor model for testing which conforms to3
the specifications filed with the official test application. Such tractor4
model shall be delivered for testing at the mutually agreed-upon date.5
Upon failure so to do, all such fees deposited by such person shall be6
forfeited to the University of Nebraska Tractor Test Cash Fund, except7
that the fee imposed in section 2-2705.01 shall be deposited in and8
forfeited to the Tractor Permit Cash Fund, and in addition such person9
shall not be issued any temporary permit for a period of five years from10
the date such tractor was to be delivered for testing and until such11
person meets the obligations required under subsection (5) of this12
section to the department's satisfaction. 13
(5) All sales of tractors upon which a temporary permit has been14
issued shall be made subject to the final official test and approval of15
the tractor model as follows: 16
(a) If a tractor model upon which a temporary permit has been issued17
was not submitted for the official test and approval on the mutually18
agreed-upon date, the person to whom the temporary permit was issued19
shall repurchase any such tractor sold in Nebraska under the temporary20
permit. A claim by a purchaser under this subdivision shall be brought21
within two years after the date of the expiration of the temporary22
permit; and 23
(b) If a tractor model upon which a temporary permit has been issued24
fails in the official test to meet the specifications of the tractor25
model which were filed with the application and fees, the person to whom26
the temporary permit was issued shall send a notice, as approved by the27
department, to any person in Nebraska who has purchased a tractor sold28
under the temporary permit. The person to whom the temporary permit was29
issued shall either modify the tractor to meet the specifications filed30
with the board or remedy to the satisfaction of the purchaser any injury31
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incurred by the purchaser which was caused by the failure of the tractor1
to meet the specifications claimed. Such person shall be prohibited from2
modifying sales literature, advertisement claims, or specifications of3
the tractor to avoid such notice. 4
Sec. 2. Section 77-382, Revised Statutes Cumulative Supplement,5
2024, is amended to read: 6
77-382 (1) The department shall prepare a tax expenditure report7
describing (a) the basic provisions of the Nebraska tax laws, (b) the8
actual or estimated revenue loss caused by the exemptions, deductions,9
exclusions, deferrals, credits, and preferential rates in effect on July10
1 of each year and allowed under Nebraska's tax structure and in the11
property tax, (c) the actual or estimated revenue loss caused by failure12
to impose sales and use tax on services purchased for nonbusiness use,13
and (d) the elements which make up the tax base for state and local14
income, including income, sales and use, property, and miscellaneous15
taxes. 16
(2) The department shall review the major tax exemptions for which17
state general funds are used to reduce the impact of revenue lost due to18
a tax expenditure. The report shall indicate an estimate of the amount of19
the reduction in revenue resulting from the operation of all tax20
expenditures. The report shall list each tax expenditure relating to21
sales and use tax under the following categories: 22
(a) Agriculture, which shall include a separate listing for each23
item the following items: Agricultural machinery; agricultural chemicals;24
seeds sold to commercial producers; water for irrigation and25
manufacturing; commercial artificial insemination; mineral oil as dust26
suppressant; animal grooming; oxygen for use in aquaculture; animal life27
whose products constitute food for human consumption; and grains;28
(b) Business across state lines, which shall include a separate29
listing for each item the following items: Property shipped out-of-state;30
fabrication labor for items to be shipped out-of-state; property to be31
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transported out-of-state; property purchased in other states to be used1
in Nebraska; aircraft delivery to an out-of-state resident or business;2
state reciprocal agreements for industrial machinery; and property taxed3
in another state; 4
(c) Common carrier and logistics, which shall include a separate5
listing for each item the following items: Railroad rolling stock and6
repair parts and services; common or contract carriers and repair parts7
and services; common or contract carrier accessories; and common or8
contract carrier safety equipment; 9
(d) Consumer goods, which shall include a separate listing for each10
item the following items: Motor vehicles and motorboat trade-ins;11
merchandise trade-ins; certain medical equipment and medicine;12
newspapers; laundromats; telefloral deliveries; motor vehicle discounts13
for the disabled; and political campaign fundraisers;14
(e) Energy, which shall include a separate listing for each item the15
following items: Motor fuels; energy used in industry; energy used in16
agriculture; aviation fuel; and minerals, oil, and gas severed from real17
property; 18
(f) Food, which shall include a separate listing for each item the19
following items: Food for home consumption; Supplemental Nutrition20
Assistance Program; school lunches; meals sold by hospitals; meals sold21
by institutions at a flat rate; food for the elderly, handicapped, and22
Supplemental Security Income recipients; and meals sold by churches;23
(g) General business, which shall include a separate listing for24
each item the following items: Component and ingredient parts;25
manufacturing machinery; containers; film rentals; molds and dies;26
syndicated programming; intercompany sales; intercompany leases; sale of27
a business or farm machinery; and transfer of property in a change of28
business ownership; 29
(h) Lodging and shelter, which shall include a separate listing for30
each the following item : Room rentals by certain institutions;31
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(i) Miscellaneous, which shall include a separate listing for each1
item the following items: Cash discounts and coupons; separately stated2
finance charges; casual sales; lease-to-purchase agreements; and3
separately stated taxes; 4
(j) Nonprofits, governments, and exempt entities, which shall5
include a separate listing for each item the following items: Purchases6
by political subdivisions of the state; purchases by churches and7
nonprofit colleges and medical facilities; purchasing agents for public8
real estate construction improvements; contractor as purchasing agent for9
public agencies; Nebraska lottery; admissions to school events; sales on10
Native American Indian reservations; school-supporting fundraisers; fine11
art purchases by a museum; purchases by the Nebraska State Fair Board;12
purchases by the Nebraska Investment Finance Authority and licensees of13
the State Racing and Gaming Commission; purchases by the United States14
Government; public records; and sales by religious organizations;15
(k) Recent sales tax expenditures, which shall include a separate16
listing for each sales tax expenditure created by statute or rule and17
regulation after July 19, 2012; 18
(l) Services purchased for nonbusiness use, which shall include a19
separate listing for each such service , including, but not limited to,20
the following items: Motor vehicle cleaning, maintenance, and repair21
services; cleaning and repair of clothing; cleaning, maintenance, and22
repair of other tangible personal property; maintenance, painting, and23
repair of real property; entertainment admissions; personal care24
services; lawn care, gardening, and landscaping services; pet-related25
services; storage and moving services; household utilities; other26
personal services; taxi, limousine, and other transportation services;27
legal services; accounting services; other professional services; and28
other real estate services; and 29
(m) Telecommunications, which shall include a separate listing for30
each item the following items: Telecommunications access charges; prepaid31
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calling arrangements; conference bridging services; and nonvoice data1
services. 2
(3) It is the intent of the Legislature that nothing in the Tax3
Expenditure Reporting Act shall cause the valuation or assessment of any4
property exempt from taxation on the basis of its use exclusively for5
religious, educational, or charitable purposes. 6
Sec. 3. Section 77-2701, Revised Statutes Cumulative Supplement,7
2024, is amended to read: 8
77-2701 Sections 77-2701 to 77-27,135.01, 77-27,222, 77-27,235,9
77-27,236, and 77-27,238 to 77-27,242 and sections 9 and 58 of this act10
shall be known and may be cited as the Nebraska Revenue Act of 1967.11
Sec. 4. Section 77-2701.04, Revised Statutes Cumulative Supplement,12
2024, is amended to read: 13
77-2701.04 For purposes of sections 77-2701.04 to 77-2713 and14
77-27,239 and sections 9 and 58 of this act, unless the context otherwise15
requires, the definitions found in sections 77-2701.05 to 77-2701.55 and16
section 9 of this act 77-2701.56 shall be used. 17
Sec. 5. Section 77-2701.16, Revised Statutes Supplement, 2025, is18
amended to read: 19
77-2701.16 (1) Gross receipts means the total amount of the sale or20
lease or rental price, as the case may be, of the retail sales of21
retailers. 22
(2) Gross receipts of every person engaged as a public utility23
specified in this subsection, as a community antenna television service24
operator, or as a satellite service operator or any person involved in25
connecting and installing services defined in subdivision (2)(a), (b), or26
(d) of this section means: 27
(a)(i) In the furnishing of telephone communication service, other28
than mobile telecommunications service as described in section29
77-2703.04, the gross income received from furnishing ancillary services,30
except for conference bridging services, and intrastate31
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telecommunications services, except for value-added, nonvoice data1
service. 2
(ii) In the furnishing of mobile telecommunications service as3
described in section 77-2703.04, the gross income received from4
furnishing mobile telecommunications service that originates and5
terminates in the same state to a customer with a place of primary use in6
Nebraska; 7
(b) In the furnishing of telegraph service, the gross income8
received from the furnishing of intrastate telegraph services;9
(c)(i) In the furnishing of gas, sewer, water, and electricity10
service, other than electricity service to a customer-generator as11
defined in section 70-2002, the gross income received from the furnishing12
of such services upon billings or statements rendered to consumers for13
such utility services. 14
(ii) In the furnishing of electricity service to a customer-15
generator as defined in section 70-2002, the net energy use upon billings16
or statements rendered to customer-generators for such electricity17
service; 18
(d) In the furnishing of community antenna television service or19
satellite service, the gross income received from the furnishing of such20
community antenna television service as regulated under sections 18-220121
to 18-2205 or 23-383 to 23-388 or satellite service; and22
(e) The gross income received from the provision, installation,23
construction, servicing, or removal of property used in conjunction with24
the furnishing, installing, or connecting of any public utility services25
specified in subdivision (2)(a) or (b) of this section or community26
antenna television service or satellite service specified in subdivision27
(2)(d) of this section, except when acting as a subcontractor for a28
public utility, this subdivision does not apply to the gross income29
received by a contractor electing to be treated as a consumer of building30
materials under subdivision (2) or (3) of section 77-2701.10 for any such31
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services performed on the customer's side of the utility demarcation1
point. This subdivision also does not apply to: 2
(i) The gross income received by a political subdivision of the3
state, an electric cooperative, or an electric membership association for4
the lease or use of, or by a contractor for the construction of or5
services provided on, electric generation, transmission, distribution, or6
street lighting structures or facilities owned by a political subdivision7
of the state, an electric cooperative, or an electric membership8
association; or 9
(ii) The gross income received for the lease or use of towers or10
other structures and equipment, including antennas and studio transmitter11
link systems, primarily used in conjunction with the furnishing of (A)12
Internet access services, (B) agricultural global positioning system13
locating services, or (C) over-the-air radio and television broadcasting14
via radio and television broadcast stations licensed by the Federal15
Communications Commission. For purposes of this subdivision, studio16
transmitter link system means a radiofrequency apparatus which serves as17
a conduit to deliver station programming content from its origin in a18
studio to a broadcast transmitter and antenna. 19
(3) Gross receipts of every person engaged in selling, leasing, or20
otherwise providing intellectual or entertainment property means:21
(a) In the furnishing of computer software, the gross income22
received, including the charges for coding, punching, or otherwise23
producing any computer software and the charges for the tapes, disks,24
punched cards, or other properties furnished by the seller; and25
(b) In the furnishing of videotapes, movie film, satellite26
programming, satellite programming service, and satellite television27
signal descrambling or decoding devices, the gross income received from28
the license, franchise, or other method establishing the charge.29
(4) Gross receipts includes the gross income received for providing30
a service. Services shall be presumed taxable unless a specific exemption31
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applies. for providing a service means: 1
(a) The gross income received for building cleaning and maintenance,2
pest control, and security; 3
(b) The gross income received for motor vehicle washing, waxing,4
towing, and painting; 5
(c) The gross income received for computer software training;6
(d) The gross income received for installing and applying tangible7
personal property if the sale of the property is subject to tax. If any8
or all of the charge for installation is free to the customer and is paid9
by a third-party service provider to the installer, any tax due on that10
part of the activation commission, finder's fee, installation charge, or11
similar payment made by the third-party service provider shall be paid12
and remitted by the third-party service provider; 13
(e) The gross income received for services of recreational vehicle14
parks; 15
(f) The gross income received for labor for repair or maintenance16
services performed with regard to tangible personal property the sale of17
which would be subject to sales and use taxes, excluding motor vehicles,18
except as otherwise provided in section 77-2704.26 or 77-2704.50;19
(g) The gross income received for animal specialty services except20
(i) veterinary services, (ii) specialty services performed on livestock21
as defined in section 54-183, and (iii) animal grooming performed by a22
licensed veterinarian or a licensed veterinary technician in conjunction23
with medical treatment; and 24
(h) The gross income received for detective services.25
(5) Gross receipts includes the sale of admissions. When an26
admission to an activity or a membership constituting an admission is27
combined with the solicitation of a contribution, the portion or the28
amount charged representing the fair market price of the admission shall29
be considered a retail sale subject to the tax imposed by section30
77-2703. The organization conducting the activity shall determine the31
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amount properly attributable to the purchase of the privilege, benefit,1
or other consideration in advance, and such amount shall be clearly2
indicated on any ticket, receipt, or other evidence issued in connection3
with the payment. 4
(6) Gross receipts includes the sale of live plants incorporated5
into real estate except when such incorporation is incidental to the6
transfer of an improvement upon real estate or the real estate.7
(7) Gross receipts includes the sale of any building materials8
annexed to real estate by a person electing to be taxed as a retailer9
pursuant to subdivision (1) of section 77-2701.10.10
(8) Gross receipts includes the sale of and recharge of prepaid11
calling service and prepaid wireless calling service.12
(9) Gross receipts includes the retail sale of digital audio works,13
digital audiovisual works, digital codes, and digital books delivered14
electronically if the products are taxable when delivered on tangible15
storage media. A sale includes the transfer of a permanent right of use,16
the transfer of a right of use that terminates on some condition, and the17
transfer of a right of use conditioned upon the receipt of continued18
payments. 19
(10) Gross receipts includes any receipts from sales of tangible20
personal property made over a multivendor marketplace platform that acts21
as the intermediary by facilitating sales between a seller and the22
purchaser and that, either directly or indirectly through agreements or23
arrangements with third parties, collects payment from the purchaser and24
transmits payment to the seller. 25
(11) Gross receipts does not include: 26
(a) The amount of any rebate granted by a motor vehicle or motorboat27
manufacturer or dealer at the time of sale of the motor vehicle or28
motorboat, which rebate functions as a discount from the sales price of29
the motor vehicle or motorboat; or 30
(b) The price of property or services returned or rejected by31
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customers when the full sales price is refunded either in cash or credit.1
Sec. 6. Section 77-2701.24, Reissue Revised Statutes of Nebraska, is2
amended to read: 3
77-2701.24 Occasional sale means: 4
(1) A sale, but not a lease or rental, of property which is the5
subject of any intercompany sale or transfer involving any parent,6
subsidiary, or brother-sister company relationship under section7
77-2704.28 and which was either originally acquired prior to June 1,8
1967, or, if acquired thereafter, the seller or transferor directly or9
indirectly has previously paid a sales or use tax thereon, including:10
(a) From one corporation to another corporation pursuant to a11
reorganization. For purposes of this subdivision, reorganization means a12
statutory merger or consolidation or the acquisition by a corporation of13
substantially all of the properties of another corporation when the14
consideration is solely all or a part of the voting stock of the15
acquiring corporation or of its parent or subsidiary corporation;16
(b) In connection with the winding up, dissolution, or liquidation17
of a corporation only when there is a distribution of the property of18
such corporation to the shareholders in kind if the portion of the19
property so distributed to the shareholder is substantially in proportion20
to the share of stock or securities held by the shareholder;21
(c) To a corporation for the purpose of organization of such22
corporation or the contribution of additional capital to such corporation23
when the former owners of the property transferred are immediately after24
the transfer in control of the corporation and the stock or securities25
received by each is substantially in proportion to his or her interest in26
the property prior to the transfer; 27
(d) To a partnership in the organization of such partnership if the28
former owners of the property transferred are immediately after the29
transfer members of such partnership and the interest in the partnership30
received by each is substantially in proportion to his or her interest in31
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the property prior to the transfer; 1
(e) From a partnership to the members thereof when made in kind in2
the dissolution of such partnership if the portion of the property so3
distributed to the members of the partnership is substantially in4
proportion to the interest in the partnership held by the members;5
(f) To a limited liability company in the organization of such6
limited liability company if the former owners of the property7
transferred are immediately after the transfer members of such limited8
liability company and the interest in the limited liability company9
received by each is substantially in proportion to his or her interest in10
the property prior to the transfer; 11
(g) From a limited liability company to the members thereof when12
made in kind in the dissolution of such limited liability company if the13
portion of the property so distributed to the members of the limited14
liability company is substantially in proportion to the interest in the15
limited liability company held by the members; 16
(h) From one limited liability company to another limited liability17
company pursuant to a reorganization; or 18
(i) Any transaction between two persons that qualifies as a tax-free19
transaction under the Internal Revenue Code; 20
(2) A sale of household goods, personal effects, and services if21
each of the following conditions is met and if any one condition is not22
met then the entire gross receipts shall be subject to the tax imposed by23
section 77-2703: 24
(a) Such sales are by an individual at his or her residence or if25
more than one individual's property is involved such sales are by one of26
the individuals involved at the residence of one of the individuals or27
such sales are by an individual on an online auction site;28
(b) Such sales do not occur at any residence or on an online auction29
site for more than three days during a calendar year;30
(c) Such individual or individuals or any member of any of their31
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households does not conduct or engage in a trade or business in which1
similar items are sold or services provided; 2
(d) Such property sold was originally acquired for and used for3
personal use or the service provided may be performed at any individual4
residence without specialized equipment or supplies; and5
(e) Such property is not otherwise excepted from the definition of6
occasional sale; 7
(3) Commencing with any transaction occurring on or after October 1,8
1985, any sale of business or farm machinery and equipment if each of the9
following conditions is met and if any one condition is not met the10
entire gross receipts shall be subject to the tax imposed by section11
77-2703: 12
(a) Such machinery or equipment was used by the seller or seller's13
predecessor in a sale described in subdivision (1) of this section as a14
depreciable capital asset in connection with the farm or business for a15
period of at least one year; 16
(b) Such property was originally acquired prior to June 1, 1967, or17
if acquired thereafter, the seller or seller's predecessor in a sale18
described in subdivision (1) of this section directly or indirectly has19
previously paid a sales or use tax thereon; and 20
(c) Such property is not otherwise excepted from the definition of21
occasional sale; 22
(4) Commencing October 1, 1985, a sale by an organization created23
exclusively for religious purposes or an agent of the organization for24
such sale if each of the following conditions is met and if any one25
condition is not met then the entire gross receipts shall be subject to26
the tax imposed by section 77-2703: 27
(a) All sales occur during an activity conducted by such28
organization or, if more than one organization is involved, by one of the29
organizations owning property being sold; 30
(b) The organization only sells property it owns or provides the31
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service during one such activity in a calendar year; and1
(c) The activity does not last longer than three consecutive days;2
and 3
(5) Any sale that is made in connection with the sale to a single4
buyer of all or substantially all of a trade or business if the seller or5
seller's predecessor in a sale described in subdivision (1) of this6
section directly or indirectly has previously paid a sales or use tax7
thereon. This subdivision shall apply to any transaction occurring on or8
after October 1, 1985. 9
Commencing October 1, 1985, occasional sale does not include any10
sale directly by or any sale which is supervised or aided by an11
auctioneer or an agent or employee of an auctioneer.12
Except for a sale listed in subdivision (1) of this section, an13
occasional sale does not mean any sale of motor vehicles, semitrailers,14
or trailers as defined in the Motor Vehicle Registration Act or any sale15
of a motorboat as defined in section 37-1204. 16
Sec. 7. Section 77-2701.32, Revised Statutes Cumulative Supplement,17
2024, is amended to read: 18
77-2701.32 (1) Retailer means any seller. 19
(2) To facilitate the proper administration of the Nebraska Revenue20
Act of 1967, the following persons have the duties and responsibilities21
of sellers for the purposes of sales and use taxes:22
(a) Any person in the business of making sales subject to tax under23
section 77-2703 at auction of property owned by the person or others;24
(b) Any person collecting the proceeds of the auction, other than25
the owner of the property, together with his or her principal, if any,26
when the person collecting the proceeds of the auction is not the27
auctioneer or an agent or employee of the auctioneer. The seller does not28
include the auctioneer in such case; 29
(c) Every person who has elected to be considered a retailer30
pursuant to subdivision (1) of section 77-2701.10;31
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(d) Every person operating, organizing, or promoting a flea market,1
craft show, fair, or similar event; 2
(e) Every person engaged in the business of providing any service in3
this state defined in subsection (4) of section 77-2701.16; and4
(f) Every person operating a multivendor marketplace platform that5
(i) acts as the intermediary by facilitating sales between a seller and6
the purchaser or that engages directly or indirectly through one or more7
affiliated persons in transmitting or otherwise communicating the offer8
or acceptance between the seller and purchaser and (ii) either directly9
or indirectly through agreements or arrangements with third parties,10
collects payment from the purchaser and transmits payment to the seller.11
(3) For the proper administration of the Nebraska Revenue Act of12
1967, the following persons do not have the duties and responsibilities13
of a seller for purposes of sales and use taxes: 14
(a) Any person who leases or rents films when an admission tax is15
charged under the Nebraska Revenue Act of 1967; 16
(b) Any person who leases or rents railroad rolling stock17
interchanged pursuant to the provisions of the federal Interstate18
Commerce Act; 19
(c) Any person engaged in the business of furnishing rooms in a20
facility licensed under the Health Care Facility Licensure Act in which21
rooms, lodgings, or accommodations are regularly furnished for a22
consideration or a facility operated by an educational institution23
established under Chapter 79 or Chapter 85 in which rooms are regularly24
used to house students for a consideration for periods in excess of25
thirty days; 26
(d) Any person making sales at a flea market, craft show, fair, or27
similar event when such person does not have a sales tax permit and has28
arranged to pay sales taxes collected to the person operating,29
organizing, or promoting such event; or 30
(e) Any payment processor appointed by a retailer whose sole31
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activity with regard to a sale or lease transaction is to process the1
payment made from the customer to the retailer. 2
Sec. 8. Section 77-2701.36, Reissue Revised Statutes of Nebraska, is3
amended to read: 4
77-2701.36 Seller includes (1) every person engaged in the business5
of selling, leasing, or renting property of a kind the gross receipts6
from the retail sale, lease, or rental of which are required to be7
included in the measure of the sales tax and (2) every person engaged in8
the business of providing services the gross receipts from the retail9
sale of which are required to be included in the measure of the sales10
tax. 11
Sec. 9. Service means all activities that are engaged in for other12
persons for a consideration and that involve predominantly the13
performance of a service as distinguished from selling or leasing14
tangible personal property. The term does not include services rendered15
by an employee to his or her employer. In determining what is a service,16
the intended use, principal objective, or ultimate objective of the17
contracting parties shall not be controlling. 18
Sec. 10. Section 77-2703, Revised Statutes Supplement, 2025, is19
amended to read: 20
77-2703 (1) There is hereby imposed a tax at the rate provided in21
section 77-2701.02 upon the gross receipts from all sales of tangible22
personal property sold at retail in this state; the gross receipts of23
every person engaged as a public utility, as a community antenna24
television service operator, or as a satellite service operator, any25
person involved in the connecting and installing of the services defined26
in subdivision (2)(a), (b), (d), or (e) of section 77-2701.16, or every27
person engaged as a retailer of intellectual or entertainment properties28
referred to in subsection (3) of section 77-2701.16; the gross receipts29
from the sale of admissions in this state; the gross receipts from the30
sale of warranties, guarantees, service agreements, or maintenance31
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agreements when the items covered are subject to tax under this section;1
beginning January 1, 2008, the gross receipts from the sale of bundled2
transactions when one or more of the products included in the bundle are3
taxable; the gross receipts from the provision of services in this state4
defined in subsection (4) of section 77-2701.16; and the gross receipts5
from the sale of products delivered electronically as described in6
subsection (9) of section 77-2701.16. Except as provided in section7
77-2701.03, when there is a sale, the tax shall be imposed at the rate in8
effect at the time the gross receipts are realized under the accounting9
basis used by the retailer to maintain his or her books and records.10
(a) The tax imposed by this section shall be collected by the11
retailer from the consumer. It shall constitute a part of the purchase12
price and until collected shall be a debt from the consumer to the13
retailer and shall be recoverable at law in the same manner as other14
debts. The tax required to be collected by the retailer from the consumer15
constitutes a debt owed by the retailer to this state.16
(b) It is unlawful for any retailer to advertise, hold out, or state17
to the public or to any customer, directly or indirectly, that the tax or18
part thereof will be assumed or absorbed by the retailer, that it will19
not be added to the selling, renting, or leasing price of the property20
sold, rented, or leased, or that, if added, it or any part thereof will21
be refunded. The provisions of this subdivision shall not apply to a22
public utility. 23
(c) The tax required to be collected by the retailer from the24
purchaser, unless otherwise provided by statute or by rule and regulation25
of the Tax Commissioner, shall be displayed separately from the list26
price, the price advertised in the premises, the marked price, or other27
price on the sales check or other proof of sales, rentals, or leases.28
(d) For the purpose of more efficiently securing the payment,29
collection, and accounting for the sales tax and for the convenience of30
the retailer in collecting the sales tax, it shall be the duty of the Tax31
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Commissioner to provide a schedule or schedules of the amounts to be1
collected from the consumer or user to effectuate the computation and2
collection of the tax imposed by the Nebraska Revenue Act of 1967. Such3
schedule or schedules shall provide that the tax shall be collected from4
the consumer or user uniformly on sales according to brackets based on5
sales prices of the item or items. Retailers may compute the tax due on6
any transaction on an item or an invoice basis. The rounding rule7
provided in section 77-3,117 applies. 8
(e) The use of tokens or stamps for the purpose of collecting or9
enforcing the collection of the taxes imposed in the Nebraska Revenue Act10
of 1967 or for any other purpose in connection with such taxes is11
prohibited. 12
(f) For the purpose of the proper administration of the provisions13
of the Nebraska Revenue Act of 1967 and to prevent evasion of the retail14
sales tax, it shall be presumed that all gross receipts are subject to15
the tax until the contrary is established. The burden of proving that a16
sale of property is not a sale at retail is upon the person who makes the17
sale unless he or she takes from the purchaser (i) a resale certificate18
to the effect that the property is purchased for the purpose of19
reselling, leasing, or renting it, (ii) an exemption certificate pursuant20
to subsection (7) of section 77-2705, or (iii) a direct payment permit21
pursuant to sections 77-2705.01 to 77-2705.03. Receipt of a resale22
certificate, exemption certificate, or direct payment permit shall be23
conclusive proof for the seller that the sale was made for resale or was24
exempt or that the tax will be paid directly to the state.25
(g) In the rental or lease of automobiles, trucks, trailers,26
semitrailers, and truck-tractors as defined in the Motor Vehicle27
Registration Act, the tax shall be collected by the lessor on the rental28
or lease price, except as otherwise provided within this section.29
(h) In the rental or lease of automobiles, trucks, trailers,30
semitrailers, and truck-tractors as defined in the act, for periods of31
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one year or more, the lessor may elect not to collect and remit the sales1
tax on the gross receipts and instead pay a sales tax on the cost of such2
vehicle. If such election is made, it shall be made pursuant to the3
following conditions: 4
(i) Notice of the desire to make such election shall be filed with5
the Tax Commissioner and shall not become effective until the Tax6
Commissioner is satisfied that the taxpayer has complied with all7
conditions of this subsection and all rules and regulations of the Tax8
Commissioner; 9
(ii) Such election when made shall continue in force and effect for10
a period of not less than two years and thereafter until such time as the11
lessor elects to terminate the election; 12
(iii) When such election is made, it shall apply to all vehicles of13
the lessor rented or leased for periods of one year or more except14
vehicles to be leased to common or contract carriers who provide to the15
lessor a valid common or contract carrier exemption certificate. If the16
lessor rents or leases other vehicles for periods of less than one year,17
such lessor shall maintain his or her books and records and his or her18
accounting procedure as the Tax Commissioner prescribes; and19
(iv) The Tax Commissioner by rule and regulation shall prescribe the20
contents and form of the notice of election, a procedure for the21
determination of the tax base of vehicles which are under an existing22
lease at the time such election becomes effective, the method and manner23
for terminating such election, and such other rules and regulations as24
may be necessary for the proper administration of this subdivision.25
(i) The tax imposed by this section on the sales of motor vehicles,26
semitrailers, and trailers as defined in sections 60-339, 60-348, and27
60-354 shall be the liability of the purchaser and, with the exception of28
motor vehicles, semitrailers, and trailers registered pursuant to section29
60-3,198, the tax shall be collected by the county treasurer as provided30
in the Motor Vehicle Registration Act or by an approved licensed dealer31
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participating in the electronic dealer services system pursuant to1
section 60-1507 at the time the purchaser makes application for the2
registration of the motor vehicle, semitrailer, or trailer for operation3
upon the highways of this state. The tax imposed by this section on motor4
vehicles, semitrailers, and trailers registered pursuant to section5
60-3,198 shall be collected by the Department of Motor Vehicles at the6
time the purchaser makes application for the registration of the motor7
vehicle, semitrailer, or trailer for operation upon the highways of this8
state. At the time of the sale of any motor vehicle, semitrailer, or9
trailer, the seller shall (i) state on the sales invoice the dollar10
amount of the tax imposed under this section and (ii) furnish to the11
purchaser a certified statement of the transaction, in such form as the12
Tax Commissioner prescribes, setting forth as a minimum the total sales13
price, the allowance for any trade-in, and the difference between the14
two. The sales tax due shall be computed on the difference between the15
total sales price and the allowance for any trade-in as disclosed by such16
certified statement. Any seller who willfully understates the amount upon17
which the sales tax is due shall be subject to a penalty of one thousand18
dollars. A copy of such certified statement shall also be furnished to19
the Tax Commissioner. Any seller who fails or refuses to furnish such20
certified statement shall be guilty of a misdemeanor and shall, upon21
conviction thereof, be punished by a fine of not less than twenty-five22
dollars nor more than one hundred dollars. If the purchaser does not23
register such motor vehicle, semitrailer, or trailer for operation on the24
highways of this state within thirty days of the purchase thereof, the25
tax imposed by this section shall immediately thereafter be paid by the26
purchaser to the county treasurer or the Department of Motor Vehicles. If27
the tax is not paid on or before the thirtieth day after its purchase,28
the county treasurer or Department of Motor Vehicles shall also collect29
from the purchaser interest from the thirtieth day through the date of30
payment and sales tax penalties as provided in the Nebraska Revenue Act31
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of 1967. The county treasurer or Department of Motor Vehicles shall1
report and remit the tax so collected to the Tax Commissioner by the2
fifteenth day of the following month. The county treasurer, for his or3
her collection fee, shall deduct and withhold, from all amounts required4
to be collected under this subsection, the collection fee permitted to be5
deducted by any retailer collecting the sales tax, all of which shall be6
deposited in the county general fund, plus an additional amount equal to7
one-half of one percent of all amounts in excess of six thousand dollars8
remitted each month. Prior to January 1, 2023, fifty percent of such9
additional amount shall be deposited in the county general fund and fifty10
percent of such additional amount shall be deposited in the county road11
fund. On and after January 1, 2023, seventy-five percent of such12
additional amount shall be deposited in the county general fund and13
twenty-five percent of such additional amount shall be deposited in the14
county road fund. In any county with a population of one hundred fifty15
thousand inhabitants or more, the county treasurer shall remit one dollar16
of his or her collection fee for each of the first five thousand motor17
vehicles, semitrailers, or trailers registered with such county treasurer18
on or after January 1, 2020, to the State Treasurer for credit to the19
Department of Revenue Enforcement Fund. The Department of Motor Vehicles,20
for its collection fee, shall deduct, withhold, and deposit in the Motor21
Carrier Division Cash Fund the collection fee permitted to be deducted by22
any retailer collecting the sales tax. The collection fee for the county23
treasurer or the Department of Motor Vehicles shall be forfeited if the24
county treasurer or department violates any rule or regulation pertaining25
to the collection of the use tax. 26
(j)(i) The tax imposed by this section on the sale of a motorboat as27
defined in section 37-1204 shall be the liability of the purchaser. The28
tax shall be collected by the county treasurer at the time the purchaser29
makes application for the registration of the motorboat. At the time of30
the sale of a motorboat, the seller shall (A) state on the sales invoice31
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the dollar amount of the tax imposed under this section and (B) furnish1
to the purchaser a certified statement of the transaction, in such form2
as the Tax Commissioner prescribes, setting forth as a minimum the total3
sales price, the allowance for any trade-in, and the difference between4
the two. The sales tax due shall be computed on the difference between5
the total sales price and the allowance for any trade-in as disclosed by6
such certified statement. Any seller who willfully understates the amount7
upon which the sales tax is due shall be subject to a penalty of one8
thousand dollars. A copy of such certified statement shall also be9
furnished to the Tax Commissioner. Any seller who fails or refuses to10
furnish such certified statement shall be guilty of a misdemeanor and11
shall, upon conviction thereof, be punished by a fine of not less than12
twenty-five dollars nor more than one hundred dollars. If the purchaser13
does not register such motorboat within thirty days of the purchase14
thereof, the tax imposed by this section shall immediately thereafter be15
paid by the purchaser to the county treasurer. If the tax is not paid on16
or before the thirtieth day after its purchase, the county treasurer17
shall also collect from the purchaser interest from the thirtieth day18
through the date of payment and sales tax penalties as provided in the19
Nebraska Revenue Act of 1967. The county treasurer shall report and remit20
the tax so collected to the Tax Commissioner by the fifteenth day of the21
following month. The county treasurer, for his or her collection fee,22
shall deduct and withhold for the use of the county general fund, from23
all amounts required to be collected under this subsection, the24
collection fee permitted to be deducted by any retailer collecting the25
sales tax. The collection fee shall be forfeited if the county treasurer26
violates any rule or regulation pertaining to the collection of the use27
tax. 28
(ii) In the rental or lease of motorboats, the tax shall be29
collected by the lessor on the rental or lease price.30
(k)(i) The tax imposed by this section on the sale of an all-terrain31
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vehicle as defined in section 60-103 or a utility-type vehicle as defined1
in section 60-135.01 shall be the liability of the purchaser. The tax2
shall be collected by the county treasurer or by an approved licensed3
dealer participating in the electronic dealer services system pursuant to4
section 60-1507 at the time the purchaser makes application for the5
certificate of title for the all-terrain vehicle or utility-type vehicle.6
At the time of the sale of an all-terrain vehicle or a utility-type7
vehicle, the seller shall (A) state on the sales invoice the dollar8
amount of the tax imposed under this section and (B) furnish to the9
purchaser a certified statement of the transaction, in such form as the10
Tax Commissioner prescribes, setting forth as a minimum the total sales11
price, the allowance for any trade-in, and the difference between the12
two. The sales tax due shall be computed on the difference between the13
total sales price and the allowance for any trade-in as disclosed by such14
certified statement. Any seller who willfully understates the amount upon15
which the sales tax is due shall be subject to a penalty of one thousand16
dollars. A copy of such certified statement shall also be furnished to17
the Tax Commissioner. Any seller who fails or refuses to furnish such18
certified statement shall be guilty of a misdemeanor and shall, upon19
conviction thereof, be punished by a fine of not less than twenty-five20
dollars nor more than one hundred dollars. If the purchaser does not21
obtain a certificate of title for such all-terrain vehicle or utility-22
type vehicle within thirty days of the purchase thereof, the tax imposed23
by this section shall immediately thereafter be paid by the purchaser to24
the county treasurer. If the tax is not paid on or before the thirtieth25
day after its purchase, the county treasurer shall also collect from the26
purchaser interest from the thirtieth day through the date of payment and27
sales tax penalties as provided in the Nebraska Revenue Act of 1967. The28
county treasurer shall report and remit the tax so collected to the Tax29
Commissioner by the fifteenth day of the following month. The county30
treasurer, for his or her collection fee, shall deduct and withhold for31
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the use of the county general fund, from all amounts required to be1
collected under this subsection, the collection fee permitted to be2
deducted by any retailer collecting the sales tax. The collection fee3
shall be forfeited if the county treasurer violates any rule or4
regulation pertaining to the collection of the use tax.5
(ii) In the rental or lease of an all-terrain vehicle or a utility-6
type vehicle, the tax shall be collected by the lessor on the rental or7
lease price. 8
(iii) County treasurers are appointed as sales and use tax9
collectors for all sales of all-terrain vehicles or utility-type vehicles10
made outside of this state to purchasers or users of all-terrain vehicles11
or utility-type vehicles which are required to have a certificate of12
title in this state. The county treasurer shall collect the applicable13
use tax from the purchaser of an all-terrain vehicle or a utility-type14
vehicle purchased outside of this state at the time application for a15
certificate of title is made. The full use tax on the purchase price16
shall be collected by the county treasurer if a sales or occupation tax17
was not paid by the purchaser in the state of purchase. If a sales or18
occupation tax was lawfully paid in the state of purchase at a rate less19
than the tax imposed in this state, use tax must be collected on the20
difference as a condition for obtaining a certificate of title in this21
state. 22
(l) The Tax Commissioner shall adopt and promulgate necessary rules23
and regulations for determining the amount subject to the taxes imposed24
by this section so as to insure that the full amount of any applicable25
tax is paid in cases in which a sale is made of which a part is subject26
to the taxes imposed by this section and a part of which is not so27
subject and a separate accounting is not practical or economical.28
(2) A use tax is hereby imposed on the storage, use, or other29
consumption in this state of property purchased, leased, or rented from30
any retailer and on any transaction the gross receipts of which are31
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subject to tax under subsection (1) of this section on or after June 1,1
1967, for storage, use, or other consumption in this state at the rate2
set as provided in subsection (1) of this section on the sales price of3
the property or, in the case of leases or rentals, of the lease or rental4
prices. 5
(a) Every person storing, using, or otherwise consuming in this6
state property purchased from a retailer or leased or rented from another7
person for such purpose shall be liable for the use tax at the rate in8
effect when his or her liability for the use tax becomes certain under9
the accounting basis used to maintain his or her books and records. His10
or her liability shall not be extinguished until the use tax has been11
paid to this state, except that a receipt from a retailer engaged in12
business in this state or from a retailer who is authorized by the Tax13
Commissioner, under such rules and regulations as he or she may14
prescribe, to collect the sales tax and who is, for the purposes of the15
Nebraska Revenue Act of 1967 relating to the sales tax, regarded as a16
retailer engaged in business in this state, which receipt is given to the17
purchaser pursuant to subdivision (b) of this subsection, shall be18
sufficient to relieve the purchaser from further liability for the tax to19
which the receipt refers. 20
(b) Every retailer engaged in business in this state and selling,21
leasing, or renting property for storage, use, or other consumption in22
this state shall, at the time of making any sale, collect any tax which23
may be due from the purchaser and shall give to the purchaser, upon24
request, a receipt therefor in the manner and form prescribed by the Tax25
Commissioner. 26
(c) The Tax Commissioner, in order to facilitate the proper27
administration of the use tax, may designate such person or persons as he28
or she may deem necessary to be use tax collectors and delegate to such29
persons such authority as is necessary to collect any use tax which is30
due and payable to the State of Nebraska. The Tax Commissioner may31
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require of all persons so designated a surety bond in favor of the State1
of Nebraska to insure against any misappropriation of state funds so2
collected. The Tax Commissioner may require any tax official, city,3
county, or state, to collect the use tax on behalf of the state. All4
persons designated to or required to collect the use tax shall account5
for such collections in the manner prescribed by the Tax Commissioner.6
Nothing in this subdivision shall be so construed as to prevent the Tax7
Commissioner or his or her employees from collecting any use taxes due8
and payable to the State of Nebraska. 9
(d) All persons designated to collect the use tax and all persons10
required to collect the use tax shall forward the total of such11
collections to the Tax Commissioner at such time and in such manner as12
the Tax Commissioner may prescribe. Such collectors of the use tax shall13
deduct and withhold from the amount of taxes collected two and one-half14
percent of the first three thousand dollars remitted each month as15
reimbursement for the cost of collecting the tax. Any such deduction16
shall be forfeited to the State of Nebraska if such collector violates17
any rule, regulation, or directive of the Tax Commissioner.18
(e) For the purpose of the proper administration of the Nebraska19
Revenue Act of 1967 and to prevent evasion of the use tax, it shall be20
presumed that property sold, leased, or rented by any person for delivery21
in this state is sold, leased, or rented for storage, use, or other22
consumption in this state until the contrary is established. The burden23
of proving the contrary is upon the person who purchases, leases, or24
rents the property. 25
(f) For the purpose of the proper administration of the Nebraska26
Revenue Act of 1967 and to prevent evasion of the use tax, for the sale27
of property to an advertising agency which purchases the property as an28
agent for a disclosed or undisclosed principal, the advertising agency is29
and remains liable for the sales and use tax on the purchase the same as30
if the principal had made the purchase directly. 31
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Sec. 11. Section 77-2703.01, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
77-2703.01 (1) The determination of whether a sale or use of3
property or the provision of services is in this state, in a municipality4
that has adopted a tax under the Local Option Revenue Act, or in a county5
that has adopted a tax under section 13-319 or 77-6403 shall be governed6
by the sourcing rules in sections 77-2703.01 to 77-2703.04.7
(2) When the property or service is received by the purchaser at a8
business location of the retailer, the sale is sourced to that business9
location. 10
(3) When the property or service is not received by the purchaser at11
a business location of the retailer, the sale is sourced to the location12
where receipt by the purchaser or the purchaser's donee, designated as13
such by the purchaser, occurs, including the location indicated by14
instructions for delivery to the purchaser or donee, known to the15
retailer. 16
(4) When subsection (2) or (3) of this section does not apply, the17
sale is sourced to the location indicated by an address or other18
information for the purchaser that is available from the business records19
of the retailer that are maintained in the ordinary course of the20
retailer's business when use of this address does not constitute bad21
faith. 22
(5) When subsection (2), (3), or (4) of this section does not apply,23
the sale is sourced to the location indicated by an address for the24
purchaser obtained during the consummation of the sale, including the25
address of a purchaser's payment instrument, if no other address is26
available, when use of this address does not constitute bad faith.27
(6) When subsection (2), (3), (4), or (5) of this section does not28
apply, including the circumstance in which the retailer is without29
sufficient information to apply the rules in any such subsection, then30
the location will be determined by the address from which property was31
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shipped, from which the digital good was first available for transmission1
by the retailer, or from which the service was provided disregarding for2
these purposes any location that merely provided the digital transfer of3
the product sold. 4
(7) The lease or rental of tangible personal property, other than5
property identified in subsection (8) or (9) of this section, shall be6
sourced as follows: 7
(a) For a lease or rental that requires recurring periodic payments,8
the first periodic payment is sourced the same as a retail sale in9
accordance with the provisions of subsections (2) through (6) of this10
section. Periodic payments made subsequent to the first payment are11
sourced to the primary property location for each period covered by the12
payment. The primary property location shall be as indicated by an13
address for the property provided by the lessee that is available to the14
lessor from its records maintained in the ordinary course of business15
when use of this address does not constitute bad faith. The property16
location shall not be altered by intermittent use at different locations,17
such as use of business property that accompanies employees on business18
trips and service calls; and 19
(b) For a lease or rental that does not require recurring periodic20
payments, the payment is sourced the same as a retail sale in accordance21
with the provisions of subsections (2) through (6) of this section.22
This subsection does not affect the imposition or computation of23
sales or use tax on leases or rentals based on a lump-sum or accelerated24
basis or on the acquisition of property for lease.25
(8) The lease or rental of motor vehicles, trailers, semitrailers,26
or aircraft that do not qualify as transportation equipment under27
subsection (9) of this section shall be sourced as follows:28
(a) For a lease or rental that requires recurring periodic payments,29
each periodic payment is sourced to the primary property location. The30
primary property location shall be as indicated by an address for the31
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property provided by the lessee that is available to the lessor from its1
records maintained in the ordinary course of business when use of this2
address does not constitute bad faith. This location shall not be altered3
by intermittent use at different locations; and 4
(b) For a lease or rental that does not require recurring periodic5
payments, the payment is sourced the same as a retail sale in accordance6
with the provisions of subsections (2) through (6) of this section.7
This subsection does not affect the imposition or computation of8
sales or use tax on leases or rentals based on a lump-sum or accelerated9
basis or on the acquisition of property for lease.10
(9) The retail sale, including lease or rental, of transportation11
equipment shall be sourced the same as a retail sale in accordance with12
subsections (2) through (6) of this section. Transportation equipment13
means any of the following: 14
(a) Locomotives and railcars that are utilized for the carriage of15
persons or property in interstate commerce; 16
(b) Trucks and truck-tractors with a gross vehicle weight rating of17
ten thousand one pounds or greater, trailers, semitrailers, or passenger18
buses that are (i) registered through the International Registration Plan19
and (ii) operated under authority of a carrier authorized and20
certificated by the United States Department of Transportation or another21
federal authority to engage in the carriage of persons or property in22
interstate commerce; 23
(c) Aircraft operated by air carriers authorized and certificated by24
the United States Department of Transportation or another federal25
authority or a foreign authority to engage in the carriage of persons or26
property in interstate or foreign commerce; and 27
(d) Containers designed for use on and component parts attached or28
secured on the items set forth in subdivisions (9)(a) through (c) of this29
section. 30
(10) For purposes of this section, receive and receipt mean taking31
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possession of tangible personal property, making first use of services,1
or taking possession or making first use of digital goods, whichever2
comes first. The terms receive and receipt do not include possession by a3
shipping company on behalf of the purchaser. For purposes of sourcing4
detective services subject to tax under subdivision (4)(h) of section5
77-2701.16, making first use of a service shall be deemed to be at the6
individual's residence, in the case of a customer who is an individual,7
or at the principal place of business, in the case of a business8
customer. 9
(11) The sale, not including lease or rental, of a motor vehicle,10
semitrailer, or trailer as defined in the Motor Vehicle Registration Act11
shall be sourced to the place of registration of the motor vehicle,12
semitrailer, or trailer for operation upon the highways of this state or,13
if no such registration has occurred, the place where such motor vehicle,14
semitrailer, or trailer is required to be registered, except that15
beginning January 1, 2021, the sale of any motor vehicle or trailer16
operated by a public power district and registered under section 60-3,22817
shall be sourced to the place where the motor vehicle or trailer has18
situs as defined in section 60-349. 19
(12) The sale or lease for one year or more of motorboats shall be20
sourced to the place of registration of the motorboat. The lease of21
motorboats for less than one year shall be sourced to the point of22
delivery. 23
Sec. 12. Section 77-2704.03, Reissue Revised Statutes of Nebraska,24
is amended to read: 25
77-2704.03 Until January 1, 2027, sales Sales and use taxes shall26
not be imposed on the gross receipts from the sale, lease, or rental of27
and the storage, use, or other consumption in this state of aircraft fuel28
as defined under Chapter 3, article 1. 29
Sec. 13. Section 77-2704.04, Reissue Revised Statutes of Nebraska,30
is amended to read: 31
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77-2704.04 Until January 1, 2027, sales Sales and use taxes shall1
not be imposed on the gross receipts from the sale, lease, or rental of2
and the storage, use, or other consumption in this state of minerals,3
oil, and gas as defined under Chapter 57. 4
Sec. 14. Section 77-2704.05, Reissue Revised Statutes of Nebraska,5
is amended to read: 6
77-2704.05 Until January 1, 2027, sales Sales and use taxes shall7
not be imposed on the gross receipts from the sale, lease, or rental of8
and the storage, use, or other consumption in this state of motor vehicle9
fuels as defined, taxed, or exempted under Chapter 66, article 4, diesel10
fuel as taxed for use on the highways under Chapter 66, article 4,11
compressed fuels as taxed for use on the highways under the Compressed12
Fuel Tax Act, diesel and compressed fuels used to provide motive power13
for railroad rolling stock, and diesel and compressed fuels delivered14
into the fuel supply tanks of other vehicles. 15
Sec. 15. Section 77-2704.07, Reissue Revised Statutes of Nebraska,16
is amended to read: 17
77-2704.07 Until January 1, 2027, sales Sales and use taxes shall18
not be imposed on the gross receipts from the sale, lease, or rental of19
and the storage, use, or other consumption in this state of any newspaper20
regularly issued at average intervals not exceeding one week if such21
newspaper contains matters of general interest and reports of current22
events. 23
Sec. 16. Section 77-2704.10, Reissue Revised Statutes of Nebraska,24
is amended to read: 25
77-2704.10 Until January 1, 2027, sales Sales and use taxes shall26
not be imposed on the gross receipts from the sale, lease, or rental of27
and the storage, use, or other consumption in this state of:28
(1) Prepared food and food and food ingredients served by public or29
private schools, school districts, student organizations, or parent-30
teacher associations pursuant to an agreement with the proper school31
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authorities, in an elementary or secondary school or at any institution1
of higher education, public or private, during the regular school day or2
at an approved function of any such school or institution. This exemption3
does not apply to sales by an institution of higher education at any4
facility or function which is open to the general public;5
(2) Prepared food and food and food ingredients sold by a church at6
a function of such church; 7
(3) Prepared food and food and food ingredients served to patients8
and inmates of hospitals and other institutions licensed by the state for9
the care of human beings; 10
(4) Fees and admissions charged for political events by ballot11
question committees, candidate committees, independent committees, and12
political party committees as defined in the Nebraska Political13
Accountability and Disclosure Act; 14
(5) Prepared food and food and food ingredients sold to the elderly,15
handicapped, or recipients of Supplemental Security Income by an16
organization that actually accepts electronic benefits transfer under17
regulations issued by the United States Department of Agriculture18
although it is not necessary for the purchaser to use electronic benefits19
transfer to pay for the prepared food and food and food ingredients;20
(6) Fees and admissions charged by a public or private elementary or21
secondary school and fees and admissions charged by a school district,22
student organization, or parent-teacher association, pursuant to an23
agreement with the proper school authorities, in a public or private24
elementary or secondary school during the regular school day or at an25
approved function of any such school; 26
(7) Fees and admissions charged for participants in any activity27
provided by a nonprofit organization that is exempt from income tax under28
section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which29
organization conducts statewide sport events with multiple sports for30
both adults and youth; and 31
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(8) Fees and admissions charged for participants in any activity1
provided by a nonprofit organization that is exempt from income tax under2
section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which3
organization is affiliated with a national organization, primarily4
dedicated to youth development and healthy living, and offers sports5
instruction and sports leagues or sports events in multiple sports.6
Sec. 17. Section 77-2704.12, Revised Statutes Cumulative Supplement,7
2024, is amended to read: 8
77-2704.12 (1) Until January 1, 2027, sales Sales and use taxes9
shall not be imposed on the gross receipts from the sale, lease, or10
rental of and the storage, use, or other consumption in this state of11
purchases by (a) any nonprofit organization created exclusively for12
religious purposes, (b) any nonprofit organization providing services13
exclusively to the blind, (c) any nonprofit private educational14
institution established under sections 79-1601 to 79-1607, (d) any15
accredited, nonprofit, privately controlled college or university with16
its primary campus physically located in Nebraska, (e) any nonprofit (i)17
hospital, (ii) health clinic when one or more hospitals or the parent18
corporations of the hospitals own or control the health clinic for the19
purpose of reducing the cost of health services or when the health clinic20
receives federal funds through the United States Public Health Service21
for the purpose of serving populations that are medically underserved,22
(iii) skilled nursing facility, (iv) intermediate care facility, (v)23
assisted-living facility, (vi) intermediate care facility for persons24
with developmental disabilities, (vii) nursing facility, (viii) home25
health agency, (ix) hospice or hospice service, (x) respite care service,26
(xi) mental health substance use treatment center licensed under the27
Health Care Facility Licensure Act, or (xii) center for independent28
living as defined in 29 U.S.C. 796a, (f) any nonprofit licensed29
residential child-caring agency, (g) any nonprofit licensed child-placing30
agency, (h) any nonprofit organization certified by the Department of31
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Health and Human Services to provide community-based services for persons1
with developmental disabilities, (i) any nonprofit organization certified2
or contracted by a regional behavioral health authority or the Division3
of Behavioral Health of the Department of Health and Human Services to4
provide community-based mental health or substance use services, or (j)5
any nonprofit organization for purchases of property that will be6
transferred to an organization listed in subdivisions (a) through (i) of7
this subsection until the property is transferred or the contract is8
completed, provided that the nonprofit organization (i) acquires property9
that will be transferred to an organization listed in subdivisions (a)10
through (i) of this subsection or (ii) enters into a contract of11
construction, improvement, or repair upon property annexed to real estate12
if the property will be transferred to an organization listed in13
subdivisions (a) through (i) of this subsection. 14
(2) Any organization listed in subsection (1) of this section shall15
apply for an exemption on forms provided by the Tax Commissioner. The16
application shall be approved and a numbered certificate of exemption17
received by the applicant organization in order to be exempt from the18
sales and use tax. 19
(3) The appointment of purchasing agents shall be recognized for the20
purpose of altering the status of the construction contractor as the21
ultimate consumer of building materials which are physically annexed to22
the structure and which subsequently belong to the owner of the23
organization or institution. The appointment of purchasing agents shall24
be in writing and occur prior to having any building materials annexed to25
real estate in the construction, improvement, or repair. The contractor26
who has been appointed as a purchasing agent may apply for a refund of or27
use as a credit against a future use tax liability the tax paid on28
inventory items annexed to real estate in the construction, improvement,29
or repair of a project for a licensed not-for-profit institution.30
(4) Any organization listed in subsection (1) of this section which31
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enters into a contract of construction, improvement, or repair upon1
property annexed to real estate without first issuing a purchasing agent2
authorization to a contractor or repairperson prior to the building3
materials being annexed to real estate in the project may apply to the4
Tax Commissioner for a refund of any sales and use tax paid by the5
contractor or repairperson on the building materials physically annexed6
to real estate in the construction, improvement, or repair.7
(5) Any person purchasing, storing, using, or otherwise consuming8
building materials in the performance of any construction, improvement,9
or repair by or for any institution enumerated in subsection (1) of this10
section which is licensed upon completion although not licensed at the11
time of construction or improvement, which building materials are annexed12
to real estate and which subsequently belong to the owner of the13
institution, shall pay any applicable sales or use tax thereon. Upon14
becoming licensed and receiving a numbered certificate of exemption, the15
institution organized not for profit shall be entitled to a refund of the16
amount of taxes so paid in the performance of such construction,17
improvement, or repair and shall submit whatever evidence is required by18
the Tax Commissioner sufficient to establish the total sales and use tax19
paid upon the building materials physically annexed to real estate in the20
construction, improvement, or repair. 21
Sec. 18. Section 77-2704.13, Reissue Revised Statutes of Nebraska,22
is amended to read: 23
77-2704.13 Until January 1, 2027, sales Sales and use taxes shall24
not be imposed on the gross receipts from the sale, lease, or rental of25
and the storage, use, or other consumption in this state of:26
(1) Sales and purchases of electricity, coal, gas, fuel oil, diesel27
fuel, tractor fuel, propane, gasoline, coke, nuclear fuel, butane, wood28
as fuel, and corn as fuel when more than fifty percent of the amount29
purchased is for use directly in irrigation or farming;30
(2) Sales and purchases of such energy sources or fuels when more31
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than fifty percent of the amount purchased is for use directly in1
processing, manufacturing, or refining, in the generation of electricity,2
in the compression of natural gas for retail sale as a vehicle fuel, or3
by any hospital. For purposes of this subdivision, processing includes4
the drying and aerating of grain in commercial agricultural facilities;5
and 6
(3) Sales and purchases of water used for irrigation of agricultural7
lands and manufacturing purposes. 8
Sec. 19. Section 77-2704.14, Reissue Revised Statutes of Nebraska,9
is amended to read: 10
77-2704.14 Until January 1, 2027, sales Sales and use taxes shall11
not be imposed on the gross receipts from the sale, lease, or rental of12
and the storage, use, or other consumption in this state of the use of13
coin-operated machines used for laundering and cleaning except the14
cleaning or washing of motor vehicles. 15
Sec. 20. Section 77-2704.15, Revised Statutes Cumulative Supplement,16
2024, is amended to read: 17
77-2704.15 (1)(a) Until January 1, 2027, sales Sales and use taxes18
shall not be imposed on the gross receipts from the sale, lease, or19
rental of and the storage, use, or other consumption in this state of20
purchases by the state, including public educational institutions21
recognized or established under the provisions of Chapter 85, or by any22
county, township, city, village, rural or suburban fire protection23
district, city airport authority, county airport authority, joint airport24
authority, drainage district organized under sections 31-401 to 31-450,25
sanitary drainage district organized under sections 31-501 to 31-553,26
land bank created under the Nebraska Municipal Land Bank Act, natural27
resources district, county agricultural society, elected county fair28
board, housing agency as defined in section 71-1575 except for purchases29
for any commercial operation that does not exclusively benefit the30
residents of an affordable housing project, cemetery created under31
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section 12-101, or joint entity or agency formed by any combination of1
two or more counties, townships, cities, villages, or other exempt2
governmental units pursuant to the Interlocal Cooperation Act, the3
Integrated Solid Waste Management Act, or the Joint Public Agency Act,4
except for purchases for use in the business of furnishing gas, water,5
electricity, or heat, or by any irrigation or reclamation district, the6
irrigation division of any public power and irrigation district, or7
public schools or learning communities established under Chapter 79.8
(b) For purposes of this subsection, purchases by the state or by a9
governmental unit listed in subdivision (a) of this subsection include10
purchases by any nonprofit corporation under a lease-purchase agreement,11
financing lease, or other instrument which provides for transfer of title12
to the property to the state or governmental unit upon payment of all13
amounts due thereunder. If any nonprofit corporation will be making14
purchases under a lease-purchase agreement, financing lease, or other15
instrument as part of a project with a total estimated cost that exceeds16
the threshold amount, then such purchases shall qualify for an exemption17
under this section only if the question of proceeding with such project18
has been submitted at a primary, general, or special election held within19
the governmental unit that will be a party to the lease-purchase20
agreement, financing lease, or other instrument and has been approved by21
the voters of such governmental unit or the governmental unit's22
expenditure towards the project is paid in whole or in part with23
redevelopment bonds. For purposes of this subdivision, (i) project means24
the acquisition of real property or the construction of a public building25
and (ii) threshold amount means the greater of fifty thousand dollars or26
six-tenths of one percent of the total actual value of real and personal27
property of the governmental unit that will be a party to the lease-28
purchase agreement, financing lease, or other instrument as of the end of29
the governmental unit's prior fiscal year. 30
(2) The appointment of purchasing agents shall be recognized for the31
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purpose of altering the status of the construction contractor as the1
ultimate consumer of building materials which are physically annexed to2
the structure and which subsequently belong to the state or the3
governmental unit. The appointment of purchasing agents shall be in4
writing and occur prior to having any building materials annexed to real5
estate in the construction, improvement, or repair. The contractor who6
has been appointed as a purchasing agent may apply for a refund of or use7
as a credit against a future use tax liability the tax paid on inventory8
items annexed to real estate in the construction, improvement, or repair9
of a project for the state or a governmental unit.10
(3) Any governmental unit listed in subsection (1) of this section,11
except the state, which enters into a contract of construction,12
improvement, or repair upon property annexed to real estate without first13
issuing a purchasing agent authorization to a contractor or repairperson14
prior to the building materials being annexed to real estate in the15
project may apply to the Tax Commissioner for a refund of any sales and16
use tax paid by the contractor or repairperson on the building materials17
physically annexed to real estate in the construction, improvement, or18
repair. 19
Sec. 21. Section 77-2704.16, Reissue Revised Statutes of Nebraska,20
is amended to read: 21
77-2704.16 Until January 1, 2027, sales Sales and use taxes shall22
not be imposed on the gross receipts from the sale, lease, or rental of23
and the storage, use, or other consumption in this state of purchases24
made by the Nebraska State Fair Board. 25
Sec. 22. Section 77-2704.17, Reissue Revised Statutes of Nebraska,26
is amended to read: 27
77-2704.17 Until January 1, 2027, sales Sales and use taxes shall28
not be imposed on the gross receipts from the sale, lease, or rental of29
and the storage, use, or other consumption in this state of purchases30
made by the Nebraska Investment Finance Authority.31
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Sec. 23. Section 77-2704.20, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
77-2704.20 Until January 1, 2027, sales Sales and use taxes shall3
not be imposed on the gross receipts from the sale, lease, or rental of4
and the storage, use, or other consumption in this state of purchases5
made by licensees of the State Racing and Gaming Commission.6
Sec. 24. Section 77-2704.22, Reissue Revised Statutes of Nebraska,7
is amended to read: 8
77-2704.22 (1) Until January 1, 2027, sales Sales and use taxes9
shall not be imposed on the gross receipts from the sale, lease, or10
rental and on the storage, use, or other consumption in this state of11
manufacturing machinery and equipment. 12
(2) Until January 1, 2027, sales Sales and use taxes shall not be13
imposed on the gross receipts from the sale of installation, repair, and14
maintenance services performed on or with respect to manufacturing15
machinery and equipment. 16
Sec. 25. Section 77-2704.23, Reissue Revised Statutes of Nebraska,17
is amended to read: 18
77-2704.23 Until January 1, 2027, sales Sales and use taxes shall19
not be imposed on the gross receipts from the sale, lease, or rental of20
and the storage, use, or other consumption in this state of sales and21
purchases of semen and insemination services for use in ranching or22
farming or for commercial or industrial uses. 23
Sec. 26. Section 77-2704.24, Reissue Revised Statutes of Nebraska,24
is amended to read: 25
77-2704.24 (1) Sales and use taxes shall not be imposed on the gross26
receipts from the sale, lease, or rental of and the storage, use, or27
other consumption in this state of food or food ingredients except for28
prepared food and food sold through vending machines.29
(2) For purposes of this section: 30
(a) Alcoholic beverages means beverages that are suitable for human31
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consumption and contain one-half of one percent or more of alcohol by1
volume; 2
(b) Candy means a preparation of sugar, honey, or other natural or3
artificial sweeteners in combination with chocolate, fruits, nuts, or4
other ingredients or flavorings in the form of bars, drops, or pieces.5
Candy does not include any preparation that contains flour or that6
requires refrigeration; 7
(c) (b) Dietary supplement means any product, other than tobacco,8
intended to supplement the diet that contains one or more of the9
following dietary ingredients: (i) A vitamin, (ii) a mineral, (iii) an10
herb or other botanical, (iv) an amino acid, (v) a dietary substance for11
use by humans to supplement the diet by increasing the total dietary12
intake, or (vi) a concentrate, metabolite, constituent, extract, or13
combination of any ingredients described in subdivisions (2)(c)(i) (2)(b)14
(i) through (v) of this section; that is intended for ingestion in15
tablet, capsule, powder, softgel, gelcap, or liquid form or, if not16
intended for ingestion in such a form, is not presented as conventional17
food and is not represented for use as a sole item of a meal or of the18
diet; and that is required to be labeled as a dietary supplement,19
identifiable by the supplemental facts box found on the label and as20
required pursuant to 21 C.F.R. 101.36, as such regulation existed on21
January 1, 2003; 22
(d) (c) Food and food ingredients means substances, whether in23
liquid, concentrated, solid, frozen, dried, or dehydrated form, that are24
sold for ingestion or chewing by humans and are consumed for their taste25
or nutritional value. Food and food ingredients does not include26
alcoholic beverages, candy, dietary supplements, soft drinks, or tobacco;27
(e) (d) Food sold through vending machines means food that is28
dispensed from a machine or other mechanical device that accepts payment;29
(f) (e) Prepared food means: 30
(i) Food sold with eating utensils provided by the seller, including31
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plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate1
does not include a container or packaging used to transport the food; or2
(ii) Two or more food ingredients mixed or combined by the seller3
for sale as a single item and food sold in a heated state or heated by4
the seller, except: 5
(A) Food that is only cut, repackaged, or pasteurized by the seller;6
(B) Eggs, fish, meat, poultry, and foods containing these raw animal7
foods requiring cooking by the consumer as recommended by the federal8
Food and Drug Administration in chapter 3, part 401.11 of its Food Code,9
as it existed on January 1, 2003, so as to prevent food borne illnesses;10
(C) Food sold by a seller whose proper primary North American11
Industry Classification System classification is manufacturing in sector12
311, except subsector 3118, bakeries; 13
(D) Food sold in an unheated state by weight or volume as a single14
item; 15
(E) Bakery items, including bread, rolls, buns, biscuits, bagels,16
croissants, pastries, donuts, danish, cakes, tortes, pies, tarts,17
muffins, bars, cookies, and tortillas; and 18
(F) Food that ordinarily requires additional cooking to finish the19
product to its desired final condition; and 20
(g) Soft drinks means nonalcoholic beverages that contain natural or21
artificial sweeteners. Soft drinks does not include beverages that22
contain milk or milk products, soy, rice, or similar milk substitutes or23
that contain greater than fifty percent of vegetable or fruit juice by24
volume; and 25
(h) (f) Tobacco means cigarettes, cigars, chewing or pipe tobacco,26
or any other item that contains tobacco. 27
Sec. 27. Section 77-2704.25, Reissue Revised Statutes of Nebraska,28
is amended to read: 29
77-2704.25 Until January 1, 2027, sales Sales and use taxes shall30
not be imposed on the gross receipts from the sale, lease, or rental of31
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and the storage, use, or other consumption in this state of property sold1
by parent-booster clubs, parent-teacher associations, parent-teacher-2
student associations, or school-operated stores approved by an elementary3
or secondary school, public or private, if the proceeds from such sale4
are used to support school activities or the school itself.5
Sec. 28. Section 77-2704.26, Reissue Revised Statutes of Nebraska,6
is amended to read: 7
77-2704.26 Until January 1, 2027, sales Sales and use taxes shall8
not be imposed on the gross receipts from the sale, lease, or rental of9
and the storage, use, or other consumption in this state of an aircraft10
delivered in this state to an individual who is a resident of another11
state or any other person who has a business location in another state12
when the aircraft is not to be registered or based in this state and it13
will not remain in this state more than ten days. Sales and use taxes14
shall not be imposed on the gross receipts from a service listed in15
subsection (4) of section 77-2701.16 that is rendered to an aircraft16
brought into this state by an individual who is a resident of another17
state or any other person who has a business location in another state18
when the aircraft is not to be registered or based in this state and it19
will not remain in this state more than ten days after the service is20
completed. 21
Sec. 29. Section 77-2704.27, Reissue Revised Statutes of Nebraska,22
is amended to read: 23
77-2704.27 Until January 1, 2027, sales Sales and use taxes shall24
not be imposed on the gross receipts from the sale, lease, or rental of,25
the service to, and the storage, use, or other consumption in this state26
of railroad rolling stock whether owned by a railroad or by any other27
person. 28
Sec. 30. Section 77-2704.28, Reissue Revised Statutes of Nebraska,29
is amended to read: 30
77-2704.28 Until January 1, 2027, a A lease of property from a31
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subsidiary to the parent company, from a parent company to a subsidiary,1
from one subsidiary to another subsidiary of the same parent company, or2
between brother-sister companies shall not be subject to the sales and3
use tax imposed by the Nebraska Revenue Act of 1967 if such property was4
either originally acquired prior to June 1, 1967, or if acquired5
thereafter, the seller or transferor directly or indirectly has6
previously paid a sales or use tax thereon. Such lessor company shall7
have the same sales and use tax liability on the purchase of property to8
be leased to the lessee company as the lessee company would have paid if9
the lessee company had purchased the property directly.10
Sec. 31. Section 77-2704.30, Reissue Revised Statutes of Nebraska,11
is amended to read: 12
77-2704.30 The use tax imposed in the Nebraska Revenue Act of 196713
shall not apply to the : (1) The use in this state of materials and14
replacement parts which are acquired outside this state and which are15
moved into this state for use directly in the repair, installation, or16
application and maintenance or manufacture of motor vehicles, watercraft,17
railroad rolling stock, whether owned by a railroad or by any person,18
whether a common or contract carrier or otherwise, or aircraft engaged as19
common or contract carriers; and (2) The storage, use, or consumption of20
property which is acquired outside this state, the sale, lease, or rental21
or the storage, use, or consumption of which property and any associated22
labor would be exempt from the sales or use tax were it purchased within23
this state. 24
Sec. 32. Section 77-2704.36, Revised Statutes Cumulative Supplement,25
2024, is amended to read: 26
77-2704.36 (1) Until January 1, 2027, sales Sales and use tax shall27
not be imposed on the gross receipts from the sale, lease, or rental of:28
(a) Depreciable agricultural machinery and equipment purchased,29
leased, or rented on or after January 1, 1993, for use in commercial30
agriculture; or 31
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(b) Net wrap, baling wire, and twine purchased for use in commercial1
agriculture. 2
(2) For purposes of this section: 3
(a)(i) Agricultural machinery and equipment means tangible personal4
property that is used directly in (A) cultivating or harvesting a crop,5
(B) raising or caring for animal life, (C) protecting the health and6
welfare of animal life, including fans, curtains, and climate control7
equipment within livestock buildings, or (D) collecting or processing an8
agricultural product on a farm or ranch, regardless of the degree of9
attachment to any real property; and 10
(ii) Agricultural machinery and equipment includes, but is not11
limited to, header trailers, head haulers, header transports, and seed12
tender trailers and excludes any current tractor model as defined in13
section 2-2701.01 not permitted for sale in Nebraska pursuant to sections14
2-2701 to 2-2711; 15
(b) Baling wire means wire used in the baling of livestock feed or16
bedding; 17
(c) Net wrap means plastic wrap used in the baling of livestock feed18
or bedding; and 19
(d) Twine means a strong string of two or more strands twisted20
together used in the baling of livestock feed or bedding.21
Sec. 33. Section 77-2704.38, Reissue Revised Statutes of Nebraska,22
is amended to read: 23
77-2704.38 Until January 1, 2027, sales Sales and use taxes shall24
not be imposed on the gross receipts from the sale, lease, or rental of25
and the storage, use, or other consumption in this state of lottery26
tickets purchased pursuant to the State Lottery Act.27
Sec. 34. Section 77-2704.39, Reissue Revised Statutes of Nebraska,28
is amended to read: 29
77-2704.39 Until January 1, 2027, sales Sales and use taxes shall30
not be imposed on the gross receipts from the sale, lease, license, or31
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rental of or the storage, use, or other consumption in this state of1
personal property containing copyrighted material if the purchaser,2
lessee, licensee, or renter is operating under a certificate from the3
Federal Communications Commission and possesses such personal property4
for rebroadcasting to the general public, regardless of whether the5
property is in the form of satellite transmissions, films, records,6
tapes, discs, or other media. 7
Sec. 35. Section 77-2704.40, Reissue Revised Statutes of Nebraska,8
is amended to read: 9
77-2704.40 Until January 1, 2027, sales Sales and use taxes shall10
not be imposed on the gross receipts from the sale, lease, or rental of11
and the storage, use, or other consumption in this state of molds, dies,12
and patterns which have been specifically designed and fabricated to the13
special order of the customer. This exemption shall not include14
machinery, equipment, or tools to which molds, dies, and patterns have15
been connected or attached in order to be used for their intended16
purpose. For purposes of this section, molds, dies, and patterns shall17
mean tools that are built specifically for manufacturing a single18
product, which product is either injection molded from plastic or stamped19
from metals. 20
Sec. 36. Section 77-2704.41, Reissue Revised Statutes of Nebraska,21
is amended to read: 22
77-2704.41 (1) Until January 1, 2027, sales Sales and use taxes23
shall not be imposed on the gross receipts from the sale, lease, or24
rental of and the storage, use, or other consumption in this state of25
feed, water, veterinary medicines, and agricultural chemicals for26
consumption by, to be used on, or which are otherwise used in caring for27
any form of animal life of a kind the products of which ordinarily28
constitute food for human consumption or of a kind the pelts of which29
ordinarily are used for human apparel. 30
(2) For purposes of this section: 31
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(a) Agricultural chemicals shall include insecticides, fungicides,1
growth-regulating chemicals, and hormones; 2
(b) Feed shall include all grains, minerals, salts, proteins, fats,3
fibers, vitamins, and grit commonly used as feed or feed supplements; and4
(c) Veterinary medicines shall include medicines for the prevention5
or treatment of disease or injury. 6
Sec. 37. Section 77-2704.42, Reissue Revised Statutes of Nebraska,7
is amended to read: 8
77-2704.42 Until January 1, 2027, sales Sales and use taxes shall9
not be imposed on the gross receipts from the sale, lease, or rental of10
and the storage, use, or other consumption in this state of copies of11
public records as defined in section 84-712.01, except those documents12
developed, produced, or acquired and made available for commercial sale13
to the general public if the price or reproduction cost of the document14
is not fixed by state law, rule, or regulation. 15
Sec. 38. Section 77-2704.45, Reissue Revised Statutes of Nebraska,16
is amended to read: 17
77-2704.45 Sales and use taxes shall not be imposed on the gross18
receipts from the sale, lease, or rental of and the storage, use, or19
other consumption in this state of property : (1) Property which will20
enter into and become an ingredient or component part of property21
manufactured, processed, or fabricated for ultimate sale at retail. ; or22
(2) A service listed in subsection (4) of section 77-2701.16 which23
will become an ingredient or component part of a service listed in24
subsection (4) of section 77-2701.16 for ultimate sale at retail.25
Sec. 39. Section 77-2704.46, Reissue Revised Statutes of Nebraska,26
is amended to read: 27
77-2704.46 Until January 1, 2027, sales Sales and use taxes shall28
not be imposed on the gross receipts from the sale, lease, or rental of29
and the storage, use, or other consumption in this state of:30
(1) Any form of animal life of a kind the products of which31
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ordinarily constitute food for human consumption. Animal life includes1
live poultry, other species of game birds subject to permit and2
regulation by the Game and Parks Commission, and livestock on the hoof3
when sales are made by the grower, producer, feeder, or any person4
engaged in the business of bartering, buying, or selling live poultry,5
other species of game birds subject to permit and regulation by the Game6
and Parks Commission, or livestock on the hoof; 7
(2) Seeds and annual plants, the products of which ordinarily8
constitute food for human consumption and which seeds and annual plants9
are sold to commercial producers of such products, and seed legumes, seed10
grasses, and seed grains when sold to be used exclusively for11
agricultural purposes; 12
(3) Agricultural chemicals, adjuvants, surfactants, bonding agents,13
clays, oils, and any other additives or compatibility agents for use in14
commercial agriculture and applied to land or crops and sold in any tax15
period that has not been closed by the applicable statute of limitations.16
Agricultural chemicals does not mean chemicals, adjuvants, surfactants,17
bonding agents, clays, oils, and any other additives or compatibility18
agents applied to harvested grains stored in commercial elevators; or19
(4) Oxygen for use in aquaculture as defined in section 2-3804.01.20
Sec. 40. Section 77-2704.47, Reissue Revised Statutes of Nebraska,21
is amended to read: 22
77-2704.47 Until January 1, 2027, sales Sales and use taxes shall23
not be imposed on the gross receipts from the sale, lease, or rental of24
and the storage, use, or other consumption in this state of:25
(1) Nonreturnable containers when sold without contents to persons26
who place contents in the container and sell the contents together with27
the container; 28
(2) Containers when sold with contents if the sales price of the29
contents is not required to be included in the measure of the taxes30
imposed by the Nebraska Revenue Act of 1967; and 31
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(3) Returnable containers when sold with contents in connection with1
a retail sale of the contents or when resold for refilling.2
For purposes of this section, returnable containers means containers3
of a kind customarily returned by the buyer of the contents for reuse.4
All other containers are nonreturnable containers. 5
Sec. 41. Section 77-2704.48, Reissue Revised Statutes of Nebraska,6
is amended to read: 7
77-2704.48 Until January 1, 2027, sales Sales and use taxes shall8
not be imposed on the gross receipts from the sale, lease, or rental of9
and the storage, use, or other consumption in this state of property or10
services the transfer of which to the consumer constitutes an occasional11
sale or the transfer of which to the consumer is made by way of an12
occasional sale. 13
Sec. 42. Section 77-2704.50, Reissue Revised Statutes of Nebraska,14
is amended to read: 15
77-2704.50 Until January 1, 2027, sales Sales and use taxes shall16
not be imposed on the gross receipts from the sale, lease, or rental of17
and the storage, use, or other consumption in this state from the18
purchase in this state or the purchase outside this state, with title19
passing in this state, of materials and replacement parts and any20
associated labor used as or used directly in the repair and maintenance21
or manufacture of railroad rolling stock, whether owned by a railroad or22
by any person, whether a common or contract carrier or otherwise, motor23
vehicles, watercraft, or aircraft engaged as common or contract carriers24
or the purchase in such manner of motor vehicles, watercraft, or aircraft25
to be used as common or contract carriers. All purchasers seeking to take26
advantage of the exemption shall apply to the Tax Commissioner for a27
common or contract carrier exemption. All common or contract carrier28
exemption certificates shall expire on October 31, 2013, and on October29
31 every five years thereafter. All persons seeking to continue to take30
advantage of the common or contract carrier exemption shall apply for a31
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new certificate at the expiration of the prior certificate. The Tax1
Commissioner shall notify such exemption certificate holders at least2
sixty days prior to the expiration date of such certificate that the3
certificate will expire and be null and void as of such date.4
Sec. 43. Section 77-2704.51, Reissue Revised Statutes of Nebraska,5
is amended to read: 6
77-2704.51 Until January 1, 2027, sales Sales and use taxes shall7
not be imposed on the gross receipts from the sale, lease, or rental of8
and the storage, use, or other consumption in this state of:9
(1) Telecommunications service between telecommunications companies,10
including division of revenue, settlements, or carrier access charges; or11
(2) Dark fiber as defined in section 86-574 between12
telecommunications companies. 13
Sec. 44. Section 77-2704.52, Reissue Revised Statutes of Nebraska,14
is amended to read: 15
77-2704.52 Until January 1, 2027, sales Sales and use taxes shall16
not be imposed on the gross receipts from the sale, lease, or rental of17
and the storage, use, or other consumption in this state of services18
rendered using a prepaid calling service or a prepaid wireless calling19
service. 20
Sec. 45. Section 77-2704.53, Reissue Revised Statutes of Nebraska,21
is amended to read: 22
77-2704.53 Until January 1, 2027, sales Sales and use taxes shall23
not be imposed on the gross receipts from the sale, lease, or rental of24
and the storage, use, or other consumption in this state from the sale or25
rental of videotape and film rentals, satellite programming, and26
satellite programming service when the sales tax or the admission tax is27
charged under the Nebraska Revenue Act of 1967 and except as provided in28
section 77-2704.39. 29
Sec. 46. Section 77-2704.56, Reissue Revised Statutes of Nebraska,30
is amended to read: 31
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77-2704.56 Until January 1, 2027, sales Sales and use taxes shall1
not be imposed on the gross receipts from the sale, lease, or rental of2
and the storage, use, or other consumption in this state of purchases of3
property as defined in subdivision (8) of section 51-702 or fine art by4
any museum as defined in subdivision (6) of section 51-702.5
Sec. 47. Section 77-2704.57, Reissue Revised Statutes of Nebraska,6
is amended to read: 7
77-2704.57 (1) Until January 1, 2027, sales Sales and use tax shall8
not be imposed on the gross receipts from the sale, lease, or rental of9
personal property for use in a C-BED project or community-based energy10
development project. This exemption shall be conditioned upon filing11
requirements for the exemption as imposed by the Tax Commissioner. The12
requirements imposed by the Tax Commissioner shall be related to ensuring13
that the property purchased qualifies for the exemption. The Tax14
Commissioner may require the filing of the documents showing compliance15
with section 70-1907, the organization of the project, the distribution16
of the payments, the power purchase agreements, the project pro forma,17
articles of incorporation, operating agreements, and any amendments or18
changes to these documents during the life of the power purchase19
agreement. 20
(2) The Tax Commissioner shall notify an electric supplier that has21
a power purchase agreement with a C-BED project if there is a change in22
project ownership which makes the project no longer eligible as a C-BED23
project. Purchase of a C-BED project by an electric supplier prior to the24
end of the power purchase agreement disqualifies the C-BED project for25
the exemption, but the Department of Revenue may not recover the amount26
of the sales and use tax that was not paid by the project prior to the27
purchase. 28
(3) For purposes of this section, the terms (a) C-BED project or29
community-based energy development project, (b) electric supplier, (c)30
gross power purchase agreement payments, (d) payments to the local31
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community, and (e) qualified owner have the definitions found in section1
70-1903. 2
(4) The Department of Revenue may examine the actual payments and3
the distribution of the payments to determine if the projected4
distributions were met. If the payment distributions to qualified owners5
do not meet the requirements of this section, the department may recover6
the amount of the sales or use tax that was not paid by the project at7
any time up until the end of three years after the end of the power8
purchase agreement. 9
(5) At any time prior to the end of the power purchase agreements,10
the project may voluntarily surrender the exemption granted by the Tax11
Commissioner and pay the amount of sales and use tax that would otherwise12
have been due. 13
(6) The amount of the tax due under either subsection (4) or (5) of14
this section shall be increased by interest at the rate specified in15
section 45-104.02, as such rate may from time to time be adjusted, from16
the date the tax would have been due if no exemption was granted until17
the date paid. 18
Sec. 48. Section 77-2704.58, Reissue Revised Statutes of Nebraska,19
is amended to read: 20
77-2704.58 Until January 1, 2027, sales Sales and use taxes shall21
not be imposed on the gross receipts from the sale, use, or other22
consumption in this state of depositions, bills of exceptions, and23
transcripts or copies of such depositions, bills of exceptions, and24
transcripts prepared and sold by a court reporter.25
Sec. 49. Section 77-2704.60, Reissue Revised Statutes of Nebraska,26
is amended to read: 27
77-2704.60 Until January 1, 2027, sales Sales and use taxes shall28
not be imposed on the gross receipts from the sale, lease, or rental of29
and the storage, use, or other consumption in this state of mineral oil30
to be applied to grain as a dust suppressant. 31
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Sec. 50. Section 77-2704.61, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
77-2704.61 (1) Until January 1, 2027, sales Sales and use taxes3
shall not be imposed on the gross receipts from the sale, lease, or4
rental of and the storage, use, or other consumption in this state of5
biochips used for the purposes of conducting genotyping or the analysis6
of gene expression, protein expression, genomic sequencing, or protein7
profiling of plants, animals, or nonhuman laboratory research model8
organisms. 9
(2) For purposes of this section, a biochip is a solid substrate10
upon or into which is incorporated specific genetic or protein11
information or chemicals that are queried through one or more chemical12
interactions allowing (a) an isolation of one or more single nucleotide13
polymorphisms which constitute an animal or plant genotype, (b) an14
expression profile which measures activity of genes or the presence of15
proteins, or (c) a detailed genomic sequence or protein profile. The16
specific genetic or protein information or chemicals incorporated upon or17
into the biochip are consumed in the process of conducting the analysis.18
Sec. 51. Section 77-2704.62, Reissue Revised Statutes of Nebraska,19
is amended to read: 20
77-2704.62 Until January 1, 2027, sales Sales and use taxes shall21
not be imposed on the gross receipts from the sale, lease, or rental of22
and the storage, use, or other consumption in this state of tangible23
personal property and services acquired by a person operating a data24
center located in this state that are assembled, engineered, processed,25
fabricated, manufactured into, attached to, or incorporated into other26
tangible personal property for the purpose of subsequent use at a27
physical location outside this state. Such exemption extends to keeping,28
retaining, or exercising any right or power over such tangible personal29
property in this state for the purpose of subsequently transporting it30
outside this state for use thereafter outside this state.31
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Sec. 52. Section 77-2704.63, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
77-2704.63 (1) Until January 1, 2027, sales Sales and use taxes3
shall not be imposed on the gross receipts from the sale, use, or other4
consumption of amounts charged to participate in a youth sports event,5
youth sports league, or youth competitive educational activity by6
political subdivisions or organizations that are exempt from income tax7
under section 501(c)(3) of the Internal Revenue Code.8
(2) For purposes of this section: 9
(a) Competitive educational activity means a tournament or a single10
competition that occurs over a limited period of time annually or11
intermittently where the participants engage in a competitive educational12
activity; 13
(b) Sports event means a tournament or a single competition that14
occurs over a limited period of time annually or intermittently where the15
participants engage in a sport; 16
(c) Sports league means an organized series of sports competitions17
taking place over several weeks or months between teams or individuals18
that are members of the league; and 19
(d) Youth sports event, youth sports league, or youth competitive20
educational activity means an event, league, or activity that is21
restricted to participants who are less than nineteen years of age.22
Sec. 53. Section 77-2704.64, Reissue Revised Statutes of Nebraska,23
is amended to read: 24
77-2704.64 Until January 1, 2027, sales Sales and use taxes shall25
not be imposed on the gross receipts from the sale, lease, or rental of26
and the storage, use, or other consumption in this state of repair or27
replacement parts for agricultural machinery and equipment used in28
commercial agriculture. 29
Sec. 54. Section 77-2704.65, Reissue Revised Statutes of Nebraska,30
is amended to read: 31
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77-2704.65 (1) Until January 1, 2027, sales Sales and use taxes1
shall not be imposed on the gross receipts from the sale, lease, or2
rental of and the storage, use, or other consumption in this state of3
purchases by any historic automobile museum of items which are displayed4
or held for display by such historic automobile museum and which are5
reasonably related to the general purpose of such historic automobile6
museum. 7
(2) For purposes of this section, historic automobile museum means a8
museum as defined in section 51-702 that: 9
(a) Is used to maintain and exhibit to the public a collection of at10
least one hundred fifty motor vehicles; and 11
(b) Was open to the public an average of four or more hours per week12
during the previous calendar year. 13
(3) A museum in its first year of existence may qualify as a14
historic automobile museum under this section without complying with15
subdivision (2)(b) of this section if all other requirements of16
subsection (2) of this section are met. 17
(4) If a museum that has claimed an exemption under this section18
fails to qualify as a historic automobile museum, such museum shall be19
subject to a deficiency determination under section 77-2709 and notice of20
such deficiency determination may be served or mailed within the21
applicable period provided in subdivision (5)(c) of section 77-2709.22
Sec. 55. Section 77-2704.67, Reissue Revised Statutes of Nebraska,23
is amended to read: 24
77-2704.67 Until January 1, 2027, sales Sales and use taxes shall25
not be imposed on the gross receipts from the sale, lease, or rental of26
and the storage, use, or other consumption in this state of any sale of a27
membership in or an admission to or any purchase by a nationally28
accredited zoo or aquarium operated by a public agency or nonprofit29
corporation primarily for educational, scientific, or tourism purposes.30
Sec. 56. Section 77-2704.68, Revised Statutes Cumulative Supplement,31
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2024, is amended to read: 1
77-2704.68 Until January 1, 2027, sales Sales and use taxes shall2
not be imposed on the gross receipts from the sale, lease, or rental of3
and the storage, use, or other consumption in this state of residential4
water service. 5
Sec. 57. Section 77-2704.69, Revised Statutes Cumulative Supplement,6
2024, is amended to read: 7
77-2704.69 Until January 1, 2027, sales Sales and use taxes shall8
not be imposed on the gross receipts from the sale, lease, or rental of9
and the storage, use, or other consumption in this state of all10
catalysts, chemicals, and materials used in the process of manufacturing11
ethyl alcohol and the production of coproducts. 12
Sec. 58. Sales and use taxes shall not be imposed on the gross13
receipts from the following services enumerated in the Standard14
Industrial Classification Manual, 1987, as prepared by the Statistical15
Policy Division of the Office of Management and Budget, Office of the16
President: Health services, major group 80. 17
Sec. 59. Section 77-2706, Reissue Revised Statutes of Nebraska, is18
amended to read: 19
77-2706 (1) A resale certificate may be given by a purchaser who at20
the time of purchasing the property intends to sell, lease, or rent it in21
the regular course of business. A seller making repeated sales of the22
same type to the same purchaser shall not be required to take a separate23
resale certificate for each individual sale, but may, at his or her own24
risk, take a blanket certificate covering all such sales made to the same25
purchaser. 26
(2) The resale certificate shall be on such form and require the27
furnishing of such information as the Tax Commissioner may require by28
rule and regulation. 29
(3) If a purchaser who gives a resale certificate makes any use of30
the property other than retention, demonstration, or display while31
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holding it for sale, lease, or rental in the regular course of business,1
the use shall be taxable to the purchaser as of the time when the2
property is first so used and the sales price of the property to him or3
her shall be deemed the measure of the tax. 4
(4) Any person who gives a resale certificate to the seller for5
property which he or she knows, at the time of purchase, is purchased for6
the purpose of use rather than for the purpose of resale, lease, or7
rental by him or her in the regular course of business and each officer8
of any corporation which so gives a resale certificate shall be guilty of9
a misdemeanor. 10
(5) If a purchaser gives a resale certificate with respect to the11
purchase of tangible goods and thereafter commingles such goods with12
other tangible goods not so purchased but of such similarity that the13
identity of the constituent goods in the commingled mass cannot be14
determined, sales from the mass of commingled goods shall be deemed to be15
sales of the goods covered by the resale certificate until a quantity of16
commingled goods equal to the quantity of such goods so commingled has17
been sold. 18
(6) Until January 1, 2027, any Any person, firm, or corporation19
engaged in multistate operations and engaged as a common or contract20
carrier may apply to the Tax Commissioner for an exemption certificate21
which will permit such person or corporation to make purchases of any22
nature within this state or without this state and bring such purchases23
into this state for use both within and without this state, for storage24
in this state, and when withdrawn from storage to be used within or25
without the state without paying the sales or use tax thereon, until such26
articles, materials, or supplies or finished products are placed in use27
within this state. When such articles, materials, supplies, or finished28
products are used within this state, a person to whom such exemption29
certificate has been issued shall, on the last day of the first following30
month after which such articles, materials, supplies, or finished31
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products are put to use within this state, make a report to the Tax1
Commissioner as to the amount of use or sales tax, if any, which is due2
the state and make the payments to the state at the time of making the3
return. If the Tax Commissioner, after investigation, finds that the4
applicant maintains satisfactory books of account and that granting such5
exemption would not result in the evasion or avoidance of any tax6
otherwise properly due, he or she shall issue such exemption certificate.7
Any person granted such an exemption certificate shall furnish a copy8
thereof to any vendor from whom purchases are made and such vendor may9
deliver any such purchases to the holder of any such certificate without10
collection of any such sales tax. The fee for such exemption certificate11
shall be ten dollars. The revenue from such fees shall be placed in the12
General Fund. 13
(7) If any person, firm, corporation, association, or the agent14
thereof presents a resale certificate to the seller for property which is15
purchased for a use other than for resale, lease, or rental by him or her16
in the regular course of business, the Tax Commissioner may impose,17
assess, and collect from the purchaser or the agent thereof a penalty of18
one hundred dollars or ten times the tax, whichever amount is larger, for19
each instance of such presentation and misuse of a resale certificate.20
This amount shall be in addition to any tax, interest, or penalty21
otherwise imposed. 22
Any report, name, or information which is supplied to the Tax23
Commissioner regarding a violation specified in this section, including24
the identity of the informer, shall be subject to the pertinent25
provisions regarding wrongful disclosure in section 77-2711.26
Sec. 60. Section 77-2706.02, Revised Statutes Supplement, 2025, is27
amended to read: 28
77-2706.02 (1) This section applies on and after July 1, 2026 , and29
until January 1, 2027. 30
(2) The appointment of purchasing agents shall be recognized for the31
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purpose of permitting a construction contractor to purchase materials tax1
free based on the buyer-based exemption of the contractor's client for2
items that are physically annexed to the structure and which subsequently3
belong to the client who is eligible for the buyer-based exemption. The4
appointment of purchasing agents shall be in writing and occur prior to5
having any buyer-based tax-exempt items annexed to real estate in the6
construction, improvement, or repair. The contractor who has been7
appointed as a purchasing agent may purchase the materials tax free or8
may apply for a refund of or use as a credit against a future use tax9
liability the tax paid on inventory items annexed to real estate in the10
construction, improvement, or repair of a project that belongs to the11
client who is eligible for the buyer-based exemption.12
(3) A client described in subsection (2) of this section which13
enters into a contract of construction, improvement, or repair with14
respect to buyer-based tax-exempt items annexed to real estate without15
first issuing a purchasing agent authorization to a construction16
contractor prior to such items being annexed to real estate in the17
project may apply to the Tax Commissioner for a refund of any sales and18
use tax paid by the contractor on such items physically annexed to real19
estate in the construction, improvement, or repair.20
(4) For purposes of this section, client means a nonprofit entity.21
Sec. 61. Section 77-27,132, Revised Statutes Cumulative Supplement,22
2024, is amended to read: 23
77-27,132 (1) There is hereby created a fund to be designated the24
Revenue Distribution Fund which shall be set apart and maintained by the25
Tax Commissioner. Revenue not required to be credited to the General Fund26
or any other specified fund may be credited to the Revenue Distribution27
Fund. Credits and refunds of such revenue shall be paid from the Revenue28
Distribution Fund. The balance of the amount credited, after credits and29
refunds, shall be allocated as provided by the statutes creating such30
revenue. 31
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(2) The Tax Commissioner shall pay to a depository bank designated1
by the State Treasurer all amounts collected under the Nebraska Revenue2
Act of 1967. The Tax Commissioner shall present to the State Treasurer3
bank receipts showing amounts so deposited in the bank, and of the4
amounts so deposited the State Treasurer shall: 5
(a)(i) For transactions occurring on or after October 1, 2014, and6
before July 1, 2024, credit to the Game and Parks Commission Capital7
Maintenance Fund all of the proceeds of the sales and use taxes imposed8
pursuant to section 77-2703 on the sale or lease of motorboats as defined9
in section 37-1204, personal watercraft as defined in section 37-1204.01,10
all-terrain vehicles as defined in section 60-103, and utility-type11
vehicles as defined in section 60-135.01; and 12
(ii) For transactions occurring on or after July 1, 2024, credit to13
the Game and Parks Commission Capital Maintenance Fund all of the14
proceeds of the sales and use taxes imposed pursuant to section 77-270315
on the sale or lease of motorboats as defined in section 37-1204,16
personal watercraft as defined in section 37-1204.01, all-terrain17
vehicles as defined in section 60-103, and utility-type vehicles as18
defined in section 60-135.01, and from such proceeds, transfers shall be19
made to the Nebraska Emergency Medical System Operations Fund as provided20
in section 37-327.02; 21
(b) Credit to the Highway Trust Fund all of the proceeds of the22
sales and use taxes derived from the sale or lease for periods of more23
than thirty-one days of motor vehicles, trailers, and semitrailers,24
except that the proceeds equal to any sales tax rate provided for in25
section 77-2701.02 that is in excess of five percent derived from the26
sale or lease for periods of more than thirty-one days of motor vehicles,27
trailers, and semitrailers shall be credited to the Highway Allocation28
Fund; 29
(c) For transactions occurring on or after July 1, 2013, and before30
July 1, 2042, of the proceeds of the sales and use taxes derived from31
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transactions other than those listed in subdivisions (2)(a), (b), and (e)1
of this section from a sales tax rate of one-quarter of one percent,2
credit monthly eighty-five percent to the Highway Trust Fund and fifteen3
percent to the Highway Allocation Fund; 4
(d) Of the proceeds of the sales and use taxes derived from5
transactions other than those listed in subdivisions (2)(a), (b), and (e)6
of this section, credit to the Property Tax Credit Cash Fund the amount7
certified under section 77-27,237, if any such certification is made; and8
(e) For transactions occurring on or after July 1, 2023, credit to9
the Department of Transportation Aeronautics Capital Improvement Fund all10
of the proceeds of the sales and use taxes imposed pursuant to section11
77-2703 on the sale or lease of aircraft as defined in section 3-101 ;12
and . 13
(f) For transactions occurring on or after January 1, 2027, credit14
to the New School Relief Fund an amount equal to the increase in sales15
and use tax revenue received as a result of the changes made by this16
legislative bill. The amount to be credited under this subdivision shall17
be determined annually by the Tax Commissioner on or before July 1.18
The balance of all amounts collected under the Nebraska Revenue Act19
of 1967 shall be credited to the General Fund. 20
Sec. 62. Section 77-27,235, Reissue Revised Statutes of Nebraska, is21
amended to read: 22
77-27,235 (1) Any producer of electricity generated by a new23
renewable electric generation facility shall earn a renewable energy tax24
credit. For electricity generated on or after July 14, 2006, and before25
October 1, 2007, the credit shall be .075 cent for each kilowatt-hour of26
electricity generated by a new renewable electric generation facility.27
For electricity generated on or after October 1, 2007, and before January28
1, 2010, the credit shall be .1 cent for each kilowatt-hour of29
electricity generated by a new renewable electric generation facility.30
For electricity generated on or after January 1, 2010, and before January31
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1, 2013, the credit shall be .075 cent per kilowatt-hour for electricity1
generated by a new renewable electric generation facility. For2
electricity generated on or after January 1, 2013, the credit shall be3
.05 cent per kilowatt-hour for electricity generated by a new renewable4
electric generation facility. The credit may be earned for production of5
electricity for ten years after the date that the facility is placed in6
operation on or after July 14, 2006. 7
(2) For purposes of this section: 8
(a) Electricity generated by a new renewable electric generation9
facility means electricity that is exclusively produced by a new10
renewable electric generation facility; 11
(b) Eligible renewable resources means wind, moving water, solar,12
geothermal, fuel cell, methane gas, or photovoltaic technology; and13
(c) New renewable electric generation facility means an electrical14
generating facility located in this state that is first placed into15
service on or after July 14, 2006, which utilizes eligible renewable16
resources as its fuel source. 17
(3) The credit allowed under this section may be used to reduce the18
producer's Nebraska income tax liability or to obtain a refund of state19
sales and use taxes paid by the producer of electricity generated by a20
new renewable electric generation facility. A claim to use the credit for21
refund of the state sales and use taxes paid, either directly or22
indirectly, by the producer may be filed quarterly for electricity23
generated during the previous quarter by the twentieth day of the month24
following the end of the calendar quarter. The credit may be used to25
obtain a refund of state sales and use taxes paid during the quarter26
immediately preceding the quarter in which the claim for refund is made,27
except that the amount refunded under this subsection shall not exceed28
the amount of the state sales and use taxes paid during the quarter.29
(4) The Department of Revenue may adopt and promulgate rules and30
regulations to permit verification of the validity and timeliness of any31
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renewable energy tax credit claimed. 1
(5) The total amount of renewable energy tax credits that may be2
used by all taxpayers shall be limited to fifty thousand dollars without3
further authorization from the Legislature. 4
(6) The credit allowed under this section may not be claimed by a5
producer who received a sales tax exemption under section 77-2704.57 for6
the new renewable electric generation facility. 7
(6) (7) Interest shall not be allowed on any refund paid under this8
section. 9
Sec. 63. Section 77-3442, Revised Statutes Supplement, 2025, is10
amended to read: 11
77-3442 (1) Property tax levies for the support of local governments12
for fiscal years beginning on or after July 1, 1998, shall be limited to13
the amounts set forth in this section except as provided in section14
77-3444. 15
(2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this16
section, school districts and multiple-district school systems may levy a17
maximum levy of: 18
(i) For fiscal years prior to fiscal year 2027-28, one dollar and19
five cents per one hundred dollars of taxable valuation of property20
subject to the levy; . 21
(ii) For fiscal year 2027-28, eighty-five cents per one hundred22
dollars of taxable valuation of property subject to the levy; and23
(iii) For fiscal year 2028-29 and each fiscal year thereafter, sixty24
cents per one hundred dollars of taxable valuation of property subject to25
the levy. 26
(b) For each fiscal year prior to fiscal year 2017-18, learning27
communities may levy a maximum levy for the general fund budgets of28
member school districts of ninety-five cents per one hundred dollars of29
taxable valuation of property subject to the levy. The proceeds from the30
levy pursuant to this subdivision shall be distributed pursuant to31
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section 79-1073. 1
(c) Except as provided in subdivision (2)(e) of this section, for2
each fiscal year prior to fiscal year 2017-18, school districts that are3
members of learning communities may levy for purposes of such districts'4
general fund budget and special building funds a maximum combined levy of5
the difference of one dollar and five cents on each one hundred dollars6
of taxable property subject to the levy minus the learning community levy7
pursuant to subdivision (2)(b) of this section for such learning8
community. 9
(d) Excluded from the limitations in subdivisions (2)(a) and (2)(c)10
of this section are (i) amounts levied to pay for current and future sums11
agreed to be paid by a school district to certificated employees in12
exchange for a voluntary termination of employment occurring prior to13
September 1, 2017, (ii) amounts levied by a school district otherwise at14
the maximum levy pursuant to subdivision (2)(a) of this section to pay15
for current and future qualified voluntary termination incentives for16
certificated teachers pursuant to subsection (3) of section 79-8,142 that17
are not otherwise included in an exclusion pursuant to subdivision (2)(d)18
of this section, (iii) amounts levied by a school district otherwise at19
the maximum levy pursuant to subdivision (2)(a) of this section to pay20
for seventy-five percent of the current and future sums agreed to be paid21
to certificated employees in exchange for a voluntary termination of22
employment occurring between September 1, 2017, and August 31, 2018, as a23
result of a collective-bargaining agreement in force and effect on24
September 1, 2017, that are not otherwise included in an exclusion25
pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a26
school district otherwise at the maximum levy pursuant to subdivision (2)27
(a) of this section to pay for fifty percent of the current and future28
sums agreed to be paid to certificated employees in exchange for a29
voluntary termination of employment occurring between September 1, 2018,30
and August 31, 2019, as a result of a collective-bargaining agreement in31
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force and effect on September 1, 2017, that are not otherwise included in1
an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts2
levied by a school district otherwise at the maximum levy pursuant to3
subdivision (2)(a) of this section to pay for twenty-five percent of the4
current and future sums agreed to be paid to certificated employees in5
exchange for a voluntary termination of employment occurring between6
September 1, 2019, and August 31, 2020, as a result of a collective-7
bargaining agreement in force and effect on September 1, 2017, that are8
not otherwise included in an exclusion pursuant to subdivision (2)(d) of9
this section, (vi) amounts levied in compliance with sections 79-10,11010
and 79-10,110.02, (vii) amounts levied pursuant to section 71 of this11
act, and (viii) (vii) amounts levied to pay for special building funds12
and sinking funds established for projects commenced prior to April 1,13
1996, for construction, expansion, or alteration of school district14
buildings. For purposes of this subsection, commenced means any action15
taken by the school board on the record which commits the board to expend16
district funds in planning, constructing, or carrying out the project.17
(e) Federal aid school districts may exceed the maximum levy18
prescribed by subdivision (2)(a) or (2)(c) of this section only to the19
extent necessary to qualify to receive federal aid pursuant to Title VIII20
of Public Law 103-382, as such title existed on September 1, 2001. For21
purposes of this subdivision, federal aid school district means any22
school district which receives ten percent or more of the revenue for its23
general fund budget from federal government sources pursuant to Title24
VIII of Public Law 103-382, as such title existed on September 1, 2001.25
(f) For each fiscal year, learning communities may levy a maximum26
levy of one-half cent on each one hundred dollars of taxable property27
subject to the levy for elementary learning center facility leases, for28
remodeling of leased elementary learning center facilities, and for up to29
fifty percent of the estimated cost for focus school or program capital30
projects approved by the learning community coordinating council pursuant31
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to section 79-2111. 1
(g) For each fiscal year, learning communities may levy a maximum2
levy of one and one-half cents on each one hundred dollars of taxable3
property subject to the levy for early childhood education programs for4
children in poverty, for elementary learning center employees, for5
contracts with other entities or individuals who are not employees of the6
learning community for elementary learning center programs and services,7
and for pilot projects, except that no more than ten percent of such levy8
may be used for elementary learning center employees.9
(3) For each fiscal year through fiscal year 2023-24, community10
college areas may levy the levies provided in subdivisions (2)(a) through11
(c) of section 85-1517, in accordance with the provisions of such12
subdivisions. For fiscal year 2024-25 and each fiscal year thereafter,13
community college areas may levy the levies provided in subdivisions (2)14
(a) and (b) of section 85-1517, in accordance with the provisions of such15
subdivisions. A community college area may exceed the levy provided in16
subdivision (2)(a) of section 85-1517 by the amount necessary to generate17
sufficient revenue as described in section 85-1543 or 85-2238. A18
community college area may exceed the levy provided in subdivision (2)(b)19
of section 85-1517 by the amount necessary to retire general obligation20
bonds assumed by the community college area or issued pursuant to section21
85-1515 according to the terms of such bonds or for any obligation22
pursuant to section 85-1535 entered into prior to January 1, 1997.23
(4)(a) Natural resources districts may levy a maximum levy of four24
and one-half cents per one hundred dollars of taxable valuation of25
property subject to the levy. 26
(b) Natural resources districts shall also have the power and27
authority to levy a tax equal to the dollar amount by which their28
restricted funds budgeted to administer and implement ground water29
management activities and integrated management activities under the30
Nebraska Ground Water Management and Protection Act exceed their31
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restricted funds budgeted to administer and implement ground water1
management activities and integrated management activities for FY2003-04,2
not to exceed one cent on each one hundred dollars of taxable valuation3
annually on all of the taxable property within the district.4
(c) In addition, natural resources districts located in a river5
basin, subbasin, or reach that has been determined to be fully6
appropriated pursuant to section 46-714 or designated as overappropriated7
pursuant to section 46-713 by the Chief Water Officer of the Department8
of Water, Energy, and Environment shall also have the power and authority9
to levy a tax equal to the dollar amount by which their restricted funds10
budgeted to administer and implement ground water management activities11
and integrated management activities under the Nebraska Ground Water12
Management and Protection Act exceed their restricted funds budgeted to13
administer and implement ground water management activities and14
integrated management activities for FY2005-06, not to exceed three cents15
on each one hundred dollars of taxable valuation on all of the taxable16
property within the district for fiscal year 2006-07 and each fiscal year17
thereafter through fiscal year 2017-18. 18
(5) Any educational service unit authorized to levy a property tax19
pursuant to section 79-1225 may levy a maximum levy of one and one-half20
cents per one hundred dollars of taxable valuation of property subject to21
the levy. 22
(6)(a) Incorporated cities and villages which are not within the23
boundaries of a municipal county may levy a maximum levy of forty-five24
cents per one hundred dollars of taxable valuation of property subject to25
the levy plus an additional five cents per one hundred dollars of taxable26
valuation to provide financing for the municipality's share of revenue27
required under an agreement or agreements executed pursuant to the28
Interlocal Cooperation Act or the Joint Public Agency Act. The maximum29
levy shall include amounts levied to pay for sums to support a library30
pursuant to section 51-201, museum pursuant to section 51-501, visiting31
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community nurse, home health nurse, or home health agency pursuant to1
section 71-1637, or statue, memorial, or monument pursuant to section2
80-202. 3
(b) Incorporated cities and villages which are within the boundaries4
of a municipal county may levy a maximum levy of ninety cents per one5
hundred dollars of taxable valuation of property subject to the levy. The6
maximum levy shall include amounts paid to a municipal county for county7
services, amounts levied to pay for sums to support a library pursuant to8
section 51-201, a museum pursuant to section 51-501, a visiting community9
nurse, home health nurse, or home health agency pursuant to section10
71-1637, or a statue, memorial, or monument pursuant to section 80-202.11
(7) Sanitary and improvement districts which have been in existence12
for more than five years may levy a maximum levy of forty cents per one13
hundred dollars of taxable valuation of property subject to the levy, and14
sanitary and improvement districts which have been in existence for five15
years or less shall not have a maximum levy. Unconsolidated sanitary and16
improvement districts which have been in existence for more than five17
years and are located in a municipal county may levy a maximum of eighty-18
five cents per hundred dollars of taxable valuation of property subject19
to the levy. 20
(8) Counties may levy or authorize a maximum levy of fifty cents per21
one hundred dollars of taxable valuation of property subject to the levy,22
except that five cents per one hundred dollars of taxable valuation of23
property subject to the levy may only be levied to provide financing for24
the county's share of revenue required under an agreement or agreements25
executed pursuant to the Interlocal Cooperation Act or the Joint Public26
Agency Act. The maximum levy shall include amounts levied to pay for sums27
to support a library pursuant to section 51-201 or museum pursuant to28
section 51-501. The county may allocate up to fifteen cents of its29
authority to other political subdivisions subject to allocation of30
property tax authority under subsection (1) of section 77-3443 and not31
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specifically covered in this section to levy taxes as authorized by law1
which do not collectively exceed fifteen cents per one hundred dollars of2
taxable valuation on any parcel or item of taxable property. The county3
may allocate to one or more other political subdivisions subject to4
allocation of property tax authority by the county under subsection (1)5
of section 77-3443 some or all of the county's five cents per one hundred6
dollars of valuation authorized for support of an agreement or agreements7
to be levied by the political subdivision for the purpose of supporting8
that political subdivision's share of revenue required under an agreement9
or agreements executed pursuant to the Interlocal Cooperation Act or the10
Joint Public Agency Act. If an allocation by a county would cause another11
county to exceed its levy authority under this section, the second county12
may exceed the levy authority in order to levy the amount allocated.13
(9) Municipal counties may levy or authorize a maximum levy of one14
dollar per one hundred dollars of taxable valuation of property subject15
to the levy. The municipal county may allocate levy authority to any16
political subdivision or entity subject to allocation under section17
77-3443. 18
(10) Beginning July 1, 2016, rural and suburban fire protection19
districts may levy a maximum levy of ten and one-half cents per one20
hundred dollars of taxable valuation of property subject to the levy if21
(a) such district is located in a county that had a levy pursuant to22
subsection (8) of this section in the previous year of at least forty23
cents per one hundred dollars of taxable valuation of property subject to24
the levy or (b) such district had a levy request pursuant to section25
77-3443 in any of the three previous years and the county board of the26
county in which the greatest portion of the valuation of such district is27
located did not authorize any levy authority to such district in such28
year. 29
(11) A regional metropolitan transit authority may levy a maximum30
levy of ten cents per one hundred dollars of taxable valuation of31
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property subject to the levy for each fiscal year that commences on the1
January 1 that follows the effective date of the conversion of the2
transit authority established under the Transit Authority Law into the3
regional metropolitan transit authority. 4
(12) Property tax levies (a) for judgments, except judgments or5
orders from the Commission of Industrial Relations, obtained against a6
political subdivision which require or obligate a political subdivision7
to pay such judgment, to the extent such judgment is not paid by8
liability insurance coverage of a political subdivision, (b) for9
preexisting lease-purchase contracts approved prior to July 1, 1998, (c)10
for bonds as defined in section 10-134 approved according to law and11
secured by a levy on property except as provided in section 44-4317 for12
bonded indebtedness issued by educational service units and school13
districts, (d) for payments by a public airport to retire interest-free14
loans from the Division of Aeronautics of the Department of15
Transportation in lieu of bonded indebtedness at a lower cost to the16
public airport, and (e) to pay for cancer benefits provided on or after17
January 1, 2022, pursuant to the Firefighter Cancer Benefits Act are not18
included in the levy limits established by this section.19
(13) The limitations on tax levies provided in this section are to20
include all other general or special levies provided by law.21
Notwithstanding other provisions of law, the only exceptions to the22
limits in this section are those provided by or authorized by sections23
77-3442 to 77-3444. 24
(14) Tax levies in excess of the limitations in this section shall25
be considered unauthorized levies under section 77-1606 unless approved26
under section 77-3444. 27
(15) For purposes of sections 77-3442 to 77-3444, political28
subdivision means a political subdivision of this state and a county29
agricultural society. 30
(16) For school districts that file a binding resolution on or31
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before May 9, 2008, with the county assessors, county clerks, and county1
treasurers for all counties in which the school district has territory2
pursuant to subsection (7) of section 79-458, if the combined levies,3
except levies for bonded indebtedness approved by the voters of the4
school district and levies for the refinancing of such bonded5
indebtedness, are in excess of the greater of (a) one dollar and twenty6
cents per one hundred dollars of taxable valuation of property subject to7
the levy or (b) the maximum levy authorized by a vote pursuant to section8
77-3444, all school district levies, except levies for bonded9
indebtedness approved by the voters of the school district and levies for10
the refinancing of such bonded indebtedness, shall be considered11
unauthorized levies under section 77-1606. 12
Sec. 64. Section 77-4403, Revised Statutes Supplement, 2025, is13
amended to read: 14
77-4403 For purposes of the Good Life Transformational Projects Act:15
(1) Additional good life district retailer means a for-profit, as16
described in subdivision (8)(c) of this section, retailer that opens a17
new location in a good life district, has retail space at the time the18
good life district was established within the good life district or19
within forty miles of the district, and maintains the new location within20
the good life district plus all locations existing at the time the good21
life district was established within the good life district or within22
forty miles of the district for three years from the date when the23
additional good life district retailer first located within the good life24
district. If the number of locations within the good life district or25
within forty miles of the district falls below the number required to be26
an additional good life district retailer but is at least equal to the27
number that existed at the time the good life district was established28
within three years, such retailer shall qualify as a relocated good life29
district retailer subject to the restrictions and requirements of30
subdivision (14) of this section. The term includes a related person;31
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(2) Controlling property rights means, with respect to real estate1
in a good life district, the authority of a good life district applicant2
or project area applicant to manage and control the development of real3
estate, including through direct ownership or through leasehold rights,4
joint ventures, purchase contracts, restrictive covenants, or any other5
similar arrangement. Whenever such property rights do not include direct6
ownership, the good life district applicant or project area applicant7
shall not be considered to have controlling property rights unless such8
applicant has submitted to the department a waiver and acknowledgment9
from the property owner that (a) the owner consents to his or her10
property being included in the project area, (b) the owner acknowledges11
that the applicant or city, as applicable, will have certain rights with12
respect to how local sources of revenue from the owner's property will be13
spent or allocated, and (c) the owner is waiving any and all rights with14
respect to all such revenues for the duration of the good life district15
and that such waiver will apply to all subsequent owners of the property;16
(3) Department means the Department of Economic Development;17
(4) Enhanced employment area good life district retailer means (a) a18
retailer located within an enhanced employment area designated for a city19
of the metropolitan class under the Community Development Law and within20
a good life district who has opted to be a good life district retailer21
and (b) any related person. A tenant of a good life district applicant22
who has a development agreement with a city of the metropolitan class for23
occupation tax in an enhanced employment area within a good life district24
shall be deemed to have opted to be a good life district retailer;25
(5) Good life district means a district established pursuant to26
section 77-4405; 27
(6) Good life district applicant means (a) the person who applies28
for the applicable good life district pursuant to section 77-4404 and (b)29
any related person; 30
(7) Good life district retailer means a retailer with taxable sales31
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that is located in a good life district. The term includes a related1
person; 2
(8)(a) New business means (i) a new-to-market sales tax collecting3
business that was not legally licensed and located within the good life4
district or within forty miles of the good life district prior to the5
creation of such district and (ii) any related person.6
(b) New business does not include the residential portion of any7
business. 8
(c)(i) New business does not include the location of any entity that9
for purposes of the Nebraska Revenue Act of 1967 is either (A) not10
subject to sales and use taxes or (B) not subject to either an income tax11
or a franchise tax under sections 77-3801 to 77-3807 , except that a12
location owned by a political subdivision shall be allowed to the extent13
that the political subdivision is liable for sales taxes pursuant to14
subsection (12) of section 77-4405. 15
(ii) For purposes of this subdivision (c): 16
(A) Political subdivision includes any public corporation created17
for the benefit of a political subdivision and any group of political18
subdivisions forming a joint public agency, organized by interlocal19
agreement, or utilizing any other method of joint action; and20
(B) Any partnership that would be liable for an income tax if it21
were to make an election under subsection (6) of section 77-2727 is22
subject to an income tax. 23
(d) The following transactions or activities shall not be considered24
to have created a new business: 25
(i) The acquisition of a business that (A) does not qualify as a new26
business, (B) is continued by the purchaser, and (C) was operated within27
the good life district during the three hundred sixty-six days prior to28
the date of acquisition; 29
(ii) The acquisition of a business that (A) does not qualify as a30
new business, (B) is continued by the purchaser, and (C) was operated31
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within this state and within forty miles of the good life district during1
the three hundred sixty-six days prior to the date of acquisition;2
(iii) The moving of a business from a location within this state and3
within forty miles of the good life district into the good life district;4
or 5
(iv) Any purchase or lease of property from a related person;6
(9)(a) New development costs means development costs that are7
incurred as part of a project located in a good life district.8
(b) The value of the new development costs for any project shall be9
equal to the construction and improvement costs of real property and the10
acquisition costs of personal property that are part of such project,11
including: 12
(i) Improvements to real property located in the good life district;13
(ii) New construction of and additions to existing buildings;14
(iii) Construction and acquisition of infrastructure improvements in15
and related to the good life district; and 16
(iv) Acquisition of personal property located and used in the good17
life district. 18
(c) The following transactions or activities shall not be considered19
new development costs: 20
(i) The acquisition of a business that (A) does not qualify as a new21
business, (B) is continued by the purchaser, and (C) was operated within22
the good life district during the three hundred sixty-six days prior to23
the date of acquisition; or 24
(ii) The acquisition of a business that (A) does not qualify as a25
new business, (B) is continued by the purchaser, and (C) was operated26
within this state and within forty miles of the good life district during27
the three hundred sixty-six days prior to the date of acquisition;28
(10) Project area means an area designated as a project within a29
good life district pursuant to subsection (13) (14) of section 77-4405;30
(11) Project area applicant means (a) the person who files an31
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application for a project area designation pursuant to subsection (13)1
(14) of section 77-4405 and (b) any related person;2
(12) Qualified inland port district means an inland port district3
created pursuant to the Municipal Inland Port Authority Act that is4
located within a city of the metropolitan class; 5
(13) Related persons means any corporations, partnerships, limited6
liability companies, or joint ventures which are or would otherwise be7
members of the same unitary group, if incorporated, or any persons who8
are considered to be related persons under either section 267(b) and (c)9
or section 707(b) of the Internal Revenue Code of 1986, as amended;10
(14) Relocated good life district retailer means (a) a retailer that11
relocates to a good life district and that has less than one hundred12
thousand square feet of retail space at the time the good life district13
was established for any single location that is outside of the good life14
district but located within forty miles of the good life district with no15
location being equal to or greater than one hundred thousand square feet16
and (b) any related person. After ten years from the date when the17
relocated good life district retailer first located within the good life18
district or exceeded one hundred thousand square feet of retail space,19
such retailer shall no longer qualify as a relocated good life district20
retailer; and 21
(15) Viable development means the proposed development is22
demonstrated to be not inconsistent with the statutory requirements of23
the good life district where the project is located.24
Sec. 65. Section 77-4405, Revised Statutes Supplement, 2025, is25
amended to read: 26
77-4405 (1) If the department finds that creation of the good life27
district would not exceed the limits prescribed in subsection (4) of28
section 77-4404 and the project described in the application meets the29
eligibility requirements of this section, the application shall be30
approved. 31
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(2) A project is eligible if: 1
(a) The good life district applicant demonstrates that the total new2
development costs of the project will exceed: 3
(i) One billion dollars if the project will be located in a city of4
the metropolitan class; 5
(ii) Seven hundred fifty million dollars if the project will be6
located in a city of the primary class; 7
(iii) Five hundred million dollars if the project will be located in8
a city of the first class, city of the second class, or village within a9
county with a population of one hundred thousand inhabitants or more; or10
(iv) One hundred million dollars if the project will be located in a11
city of the first class, city of the second class, village, or sanitary12
and improvement district within a county with a population of less than13
one hundred thousand inhabitants; 14
(b) The good life district applicant demonstrates that the project15
will directly or indirectly result in the creation of:16
(i) One thousand new jobs if the project will be located in a city17
of the metropolitan class; 18
(ii) Five hundred new jobs if the project will be located in a city19
of the primary class; 20
(iii) Two hundred fifty new jobs if the project will be located in a21
city of the first class, city of the second class, or village within a22
county with a population of one hundred thousand inhabitants or more; or23
(iv) Fifty new jobs if the project will be located in a city of the24
first class, city of the second class, village, or sanitary and25
improvement district within a county with a population of less than one26
hundred thousand inhabitants; and 27
(c)(i) For a project that will be located in a county with a28
population of one hundred thousand inhabitants or more, the good life29
district applicant demonstrates that, upon completion of the project, at30
least twenty percent of sales at the project will be made to persons31
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residing outside the State of Nebraska or the project will generate a1
minimum of six hundred thousand visitors per year who reside outside the2
State of Nebraska and the project will attract new-to-market retail to3
the state and will generate a minimum of three million visitors per year4
in total. Students from another state who attend a Nebraska public or5
private university shall not be counted as out-of-state residents for6
purposes of this subdivision; or 7
(ii) For a project that will be located in a county with a8
population of less than one hundred thousand inhabitants, the good life9
district applicant demonstrates that, upon completion of the project, at10
least twenty percent of sales at the project will be made to persons11
residing outside the State of Nebraska. Students from another state who12
attend a Nebraska public or private university shall not be counted as13
out-of-state residents for purposes of this subdivision.14
(3) The good life district applicant must certify that any15
anticipated diversion of state sales tax revenue will be offset or16
exceeded by sales tax paid on anticipated development costs, including17
construction to real property, during the same period.18
(4) Beginning on June 5, 2025, before an application may be19
approved, the good life district applicant shall submit a report to the20
department and to any city or village that will include the good life21
district. Such report shall: 22
(a) Provide evidence satisfactory to the department and such city or23
village that such applicant has sufficient financing for the project and24
the project is financially viable; 25
(b) Provide evidence that such applicant has land ownership within26
the proposed boundaries of the good life district or a contract giving27
the applicant an option to purchase land within the proposed boundaries28
of the good life district within one hundred eighty days of contract29
signing; and 30
(c) Provide information regarding any ownership interest held by31
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such applicant in any existing retail business within the proposed good1
life district. 2
(5) A project is not eligible if: 3
(a) The project includes a licensed racetrack enclosure or an4
authorized gaming operator as such terms are defined in section 9-1103,5
except that this subdivision shall not apply to infrastructure or6
facilities that are (i) publicly owned or (ii) used by or at the7
direction of the Nebraska State Fair Board, so long as no gaming devices8
or games of chance are expected to be operated by an authorized gaming9
operator within any such facilities; 10
(b) The project received funds pursuant to the Shovel-Ready Capital11
Recovery and Investment Act or the Economic Recovery Act, except that12
this subdivision shall not apply to any project located in a qualified13
inland port district; or 14
(c) The project includes any portion of a public or private15
university. 16
(6) Approval of an application under this section shall establish17
the good life district as that area depicted in the map accompanying the18
application as submitted pursuant to subdivision (1)(b) of section19
77-4404 or, for any application approved on or after June 5, 2025, the20
map as approved by the department. Such district shall last for thirty21
years and shall not exceed two thousand acres in size if in a city of the22
metropolitan class, three thousand acres in size if in any other class of23
city or village, or, for any good life district created within a24
qualified inland port district, the size of the qualified inland port25
district. All property within a good life district shall be contiguous.26
(7)(a) Prior to July 1, 2024, any transactions occurring within a27
good life district shall be subject to a reduced state sales tax rate as28
provided in subdivision (5) of section 77-2701.02.29
(b) On and after July 1, 2024, and until October 1, 2025, any30
transactions occurring within a good life district shall be subject to a31
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reduced state sales tax rate as provided in subdivision (6) of section1
77-2701.02. 2
(c) On and after October 1, 2025, any transactions, excluding sales3
of aircraft, all-terrain vehicles, barges, motor vehicles, motorboats,4
railroad rolling stock, semitrailers, and trailers, by a good life5
district applicant or an enhanced employment area good life district6
retailer that physically occur within a good life district and within the7
corporate limits of a city of the metropolitan class shall be subject to8
a state sales tax rate that is fifty percent of the state sales tax rate9
provided in section 77-2701.02. 10
(d) On and after October 1, 2025, a good life district applicant or11
good life district retailer shall be eligible for a state refund of fifty12
percent of the state sales tax paid on new development costs for a new13
business, additional good life district retailer, or relocated good life14
district retailer to the extent there is excess allocation available15
under subdivision (e) of this subsection at the time they are placed in16
service. 17
(e) After the amount of sales tax collected in the portion of the18
good life district located within the boundaries of a city of the19
metropolitan class by a good life district applicant or good life20
district retailer that is a relocated good life district retailer reaches21
an aggregate total of five million dollars per year, the state shall22
offset from the city's local sales tax remittance, pursuant to the Local23
Option Revenue Act, any additional amount of lost state sales tax24
pursuant to subdivision (c) of this subsection, and such amount shall be25
credited to the General Fund, except that relocated good life district26
retailers shall exceed the five-million-dollar cap to the extent there27
are taxes received by the state from new businesses and additional good28
life district retailers net of any allocation or refund reduction from29
allocated amounts within the good life district in the amount of five30
million dollars plus the excess allocation or reduction over five million31
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dollars. The city may take funds collected from the enhanced employment1
area occupation tax to offset the obligation. The Tax Commissioner shall2
inform the city of the amount of the monthly offset.3
(8) After establishment of a good life district pursuant to this4
section, a good life district applicant or the city or village in which5
all or a portion of the good life district is located may request that6
the size of the good life district be reduced by filing an amended map7
with the department and updates or supplements to the application8
materials originally submitted by the good life district applicant to9
demonstrate the eligibility criteria in subsection (2) of this section10
will be met after the boundaries are adjusted. The department may approve11
the new boundaries if the following conditions are met:12
(a) The department determines that the eligibility criteria in13
subsection (2) of this section will continue to be met after the proposed14
boundary adjustment based on the materials submitted by the party15
requesting the boundary adjustment; 16
(b) The adjustment is mutually agreed to by the good life district17
applicant and the city or village in which all or a portion of the good18
life district is located; 19
(c) The department shall solicit and receive from the city or20
village in which all or a portion of the good life district is located21
confirmation that no area being removed is attributable to local sources22
of revenue which have been pledged for payment of bonds issued pursuant23
to the Good Life District Economic Development Act. Confirmation may24
include resolutions, meeting minutes, or other official measures adopted25
or taken by the city council or village board of trustees;26
(d) Either the department has received written consent from the27
owners of real estate proposed to be removed from the good life district,28
or a hearing is held by the department in the manner described in this29
subdivision and the department finds that the removal of the affected30
property is in the best interests of the state and that the removal is31
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consistent with the goals and purposes of the approved application for1
the good life district. In determining whether removal of the affected2
property is consistent with the goals and purposes of the approved3
application for the good life district, the department may consider any4
formal action taken by the city council or village board of trustees.5
Proof of such formal action may include resolutions, meeting minutes, or6
other official measures adopted or taken. Such hearing must be held at7
least ninety days after delivering written notice via certified mail to8
the owners of record for the affected real estate proposed to be removed9
from the good life district. The hearing must be open to the public and10
for the stated purpose of hearing testimony regarding the proposed11
removal of property from the good life district. Attendees must be given12
the opportunity to speak and submit documentary evidence at, prior to, or13
contemporaneously with such hearing for the department to consider in14
making its findings; and 15
(e) The department shall not remove an approved project area from a16
good life district. 17
(9) After establishment of a good life district pursuant to this18
section, no property shall be added to the good life district and its19
boundaries shall not be expanded. 20
(10) After establishment of a good life district pursuant to this21
section and after any reduction is made to a good life district pursuant22
to this section, the department shall transmit to any city or village23
which includes such good life district within its boundaries or within24
its extraterritorial zoning jurisdiction (a) all information held by the25
department related to the application and approval of the application,26
(b) all documentation which describes the property included within the27
good life district, and (c) all documentation transmitted to the28
applicant for such good life district with approval of the application29
and establishment of the good life district. Such city or village shall30
be subject to the same confidentiality restrictions as provided in31
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subsection (3) of section 77-4404, except that all such documents, plans,1
and specifications included in the application which the city or village2
determine define or describe the project may be provided upon written3
request of any person who owns property in the applicable good life4
district. The department shall also transmit a copy of the map of the5
good life district, a list of all known good life district retailers and6
enhanced employment area good life district retailers, and any ownership7
updates to the Department of Revenue. 8
(11) After establishment of a good life district that exceeds one9
thousand acres in size, the good life district applicant may apply to the10
city or village in which all or a portion of the good life district is11
located to establish development and design standards for the good life12
district. Such standards may include, but are not limited to, standards13
for architectural design, landscape design, construction materials, and14
sustainability, but may not require property owners to utilize specific15
contractors, professionals, suppliers, or service providers. The city or16
village may approve the standards after holding a hearing after one17
hundred eighty days' notice to all property owners in the district if the18
city or village finds that the standards will ensure a comprehensive and19
cohesive character and aesthetic for development in the good life20
district, and that the standards will further the purposes of the Good21
Life Transformational Projects Act. The development and design standards22
must be commercially reasonable and consistent with terminology and23
accepted practices in the architecture industry, must not conflict with24
any building code or other similar law or regulation, and must not impose25
an undue burden on property owners in the district. If approved, the26
standards shall apply to all new construction inside of the good life27
district. Any such standards shall be in addition and supplemental to any28
local zoning, building code, comprehensive plan, or similar requirements29
of the city or village. 30
(12) If the good life district applicant for an approved good life31
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district is a political subdivision, such political subdivision shall not1
be exempt from sales tax as provided in section 77-2704.15 on building2
material purchases for a new business that will or is intended to offer3
taxable sales in the good life district. For purposes of this subsection,4
political subdivision includes any public corporation created for the5
benefit of a political subdivision and any group of political6
subdivisions forming a joint public agency, organized by interlocal7
agreement, or utilizing any other method of joint action.8
(12) (13) After establishment of a good life district pursuant to9
this section, the good life district applicant and any other recipient of10
allocated sales taxes, as defined in section 77-4410, or reduced sales11
taxes shall submit an annual report to the department and to any city or12
village that includes any portion of the good life district. Such report13
shall be submitted by December 31 of each year that the good life14
district is in existence. Such report shall include the same information15
required under subsection (4) of this section. 16
(13)(a) (14)(a) After establishment of a good life district that is17
located in a city of the first class, city of the second class, or18
village within a county with a population of one hundred thousand19
inhabitants or more and establishment of a good life district economic20
development program in such city or village, up to six project areas may21
be established in the good life district as provided in this subsection.22
In a city of the metropolitan class, the good life district applicant23
shall be the only project area applicant, and the good life district24
applicant's project area shall be the only approved project area.25
(b) Any good life district applicant who does not have controlling26
property rights over the entirety of the property in the good life27
district may submit an application to the department to designate a28
portion of the good life district as a project area. The application29
shall include (i) evidence of the applicant's controlling property rights30
for the proposed project area within the good life district, (ii) a map31
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of the proposed project area, (iii) a description of the development to1
be pursued within the proposed project area, and (iv) a description of2
how the project area is a viable development. A good life district3
applicant may amend the project area application any time after it is4
submitted. Any amendment must include an amended map of the proposed5
project area. An application for a project area shall be subject to the6
same confidentiality restrictions as provided in subsection (3) of7
section 77-4404. 8
(c) The department may only approve an application for a project9
area if, based on the evidence submitted to and considered by the10
department, the department concludes that a viable development is11
included in the project area application. The department shall provide12
notice of its decision to the project area applicant and the city or13
village that includes any portion of the applicable good life district.14
(d) Approval of the project area shall establish the project area as15
that area depicted in the map accompanying the application. An approved16
project area shall last for the duration of the underlying good life17
district unless the project area applicant requests termination of the18
project area or assigns the project area to another project area19
applicant. 20
(e) Upon approval of a project area, the project area applicant, the21
department, and the city or village that includes any part of the22
applicable good life district shall enter into a memorandum of23
understanding as described in subsection (8) of section 77-4412. Such24
memorandum of understanding shall require that the local sources of25
revenue, as defined in section 77-4410, derived from within a project26
area shall be used for eligible costs incurred within or related to the27
project area, including payment of debt service for bonds issued pursuant28
to the Good Life District Economic Development Act, and to pay other29
costs of the city's or village's good life district economic development30
program created under such act. 31
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(f) A good life district applicant may submit an application for a1
project area under this subsection within ninety days after June 5, 2025.2
Subject to subdivision (g) of this subsection, any other person or entity3
may submit an application for a project area beginning ninety days after4
June 5, 2025. Such other person or entity shall follow the same5
application process as described in this subsection for a good life6
district applicant. Project areas shall not overlap.7
(g) The department shall not approve any other person's or entity's8
project area application until one of the following occurs:9
(i) The department approves the good life district applicant's10
project area application and the applicant, department, and city or11
village enter into a memorandum of understanding pursuant to subsection12
(8) of section 77-4412; or 13
(ii) The good life district applicant fails to submit an application14
within ninety days after June 5, 2025. 15
(h) The department shall adopt and promulgate rules and regulations16
or publish guidance regarding the process and timeline for approving17
project areas. Any such rules and regulations or published guidance shall18
further the state's goal of maximizing transformative development19
outcomes in a timely way. 20
(i) An approved project area shall not be considered a separate good21
life district for purposes of subsection (4) of section 77-4404.22
(j) After the establishment of a project area, the project area23
applicant may apply to expand its project area with approval from the24
department. The department may only approve an expansion if (i) the25
project area applicant has controlling property rights with respect to26
property proposed to be added to the project area and submits evidence of27
such controlling property rights to the department and the city or28
village in which the good life district is located and (ii) all of the29
property proposed to be added to the project area is within the30
boundaries of the good life district. 31
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(k) The department may remove property from a project area if the1
project area applicant no longer has controlling property rights with2
respect to such property. 3
(l) The department may adopt and promulgate rules and regulations4
governing the expansion of and removal of property from project areas.5
(m) After the establishment of a project area, the project area6
applicant shall submit an annual report to the department and to any city7
or village that includes any portion of the good life district. Such8
report shall be submitted by December 31 of each year that the good life9
district is in existence. Such report shall include the same information10
required under subsection (4) of this section. 11
(14) (15) Demonstration of meeting the required new development12
costs for purposes of subdivision (2)(a) of this section may be13
established by evidence submitted by the good life district applicant,14
the city or village where the good life district is located, or any other15
person that submits satisfactory evidence to the department.16
Sec. 66. Section 77-4602, Revised Statutes Supplement, 2025, is17
amended to read: 18
77-4602 (1) Within fifteen days after the end of each month, the Tax19
Commissioner shall provide a public statement of actual General Fund net20
receipts, a comparison of such actual net receipts to the monthly21
estimated net receipts from the most recent forecast provided by the22
Nebraska Economic Forecasting Advisory Board pursuant to section23
77-27,158, and a comparison of such actual net receipts to the monthly24
actual net receipts for the same month of the previous fiscal year.25
(2) Within fifteen days after the end of each fiscal year, the26
public statement shall also include (a) a summary of actual General Fund27
net receipts and estimated General Fund net receipts for the fiscal year28
as certified pursuant to sections 77-4601 and 77-4603 and (b) a29
comparison of the actual General Fund net receipts for the fiscal year to30
the actual General Fund net receipts for the previous fiscal year.31
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(3)(a) Within fifteen days after the end of each fiscal year, the1
Tax Commissioner shall determine: 2
(i) Actual General Fund net receipts for the most recently completed3
fiscal year minus estimated General Fund net receipts for such fiscal4
year as certified pursuant to sections 77-4601 and 77-4603; and5
(ii) Actual General Fund net receipts for the most recently6
completed fiscal year minus one hundred three percent of actual General7
Fund net receipts for the prior fiscal year. 8
(b) If the amount calculated in subdivision (3)(a)(i) of this9
section is a positive number and the amount calculated in subdivision (3)10
(a)(ii) of this section is a negative number, the Tax Commissioner shall11
certify the amount calculated in subdivision (3)(a)(i) of this section to12
the State Treasurer. The State Treasurer shall transfer such certified13
amount to the Cash Reserve Fund. 14
(c) If the amounts calculated in subdivisions (3)(a)(i) and (3)(a)15
(ii) of this section are both positive numbers and the amount calculated16
in subdivision (3)(a)(i) of this section exceeds the amount calculated in17
subdivision (3)(a)(ii) of this section, the Tax Commissioner shall18
certify the amounts calculated in subdivisions (3)(a)(i) and (3)(a)(ii)19
of this section to the State Treasurer. The State Treasurer shall20
transfer the difference between the two certified numbers to the Cash21
Reserve Fund. Through fiscal year 2026-27, the The State Treasurer shall22
transfer the amount certified for subdivision (3)(a)(ii) of this section23
to the School District Property Tax Relief Credit Fund. For fiscal year24
2027-28 and every fiscal year thereafter, the State Treasurer shall25
transfer the amount certified for subdivision (3)(a)(ii) of this section26
to the New School Relief Fund. 27
(d) If the amounts calculated in subdivisions (3)(a)(i) and (3)(a)28
(ii) of this section are both positive numbers and the amount calculated29
in subdivision (3)(a)(i) of this section is less than the amount30
calculated in subdivision (3)(a)(ii) of this section, the Tax31
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Commissioner shall certify the amount calculated in subdivision (3)(a)(i)1
of this section to the State Treasurer. Through fiscal year 2026-27, the2
The State Treasurer shall transfer such certified amount to the School3
District Property Tax Relief Credit Fund. For fiscal year 2027-28 and4
every fiscal year thereafter, the State Treasurer shall transfer such5
certified amount to the New School Relief Fund. 6
Sec. 67. Section 77-7304, Revised Statutes Supplement, 2025, is7
amended to read: 8
77-7304 (1) The School District Property Tax Relief Credit Fund is9
created. The fund shall only be used pursuant to the School District10
Property Tax Relief Act. Any money in the fund available for investment11
shall be invested by the state investment officer pursuant to the12
Nebraska Capital Expansion Act and the Nebraska State Funds Investment13
Act. 14
(2)(a) The State Treasurer shall transfer seven hundred fifty15
million dollars from the General Fund to the School District Property Tax16
Relief Credit Fund in fiscal year 2024-25, on such dates and in such17
amounts as directed by the budget administrator of the budget division of18
the Department of Administrative Services. 19
(b) For fiscal years Beginning in fiscal year 2025-26 through20
2026-27, it is the intent of the Legislature that an amount sufficient to21
provide the amount of property tax relief required by subdivision (1)(a)22
of section 77-7305 for each tax year be transferred from the General Fund23
to the School District Property Tax Relief Credit Fund.24
(3) The School District Property Tax Relief Credit Fund terminates25
on July 1, 2027, and the State Treasurer shall transfer any money in the26
fund on such date to the New School Relief Fund. 27
Sec. 68. Section 77-7305, Revised Statutes Supplement, 2025, is28
amended to read: 29
77-7305 (1) The School District Property Tax Relief Act shall apply30
to tax year 2024 through tax year 2026 and each tax year thereafter. The31
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property tax relief shall be in the form of property tax credits which1
appear on property tax statements. Property tax credits granted under the2
act shall be credited against the amount of property taxes owed to school3
districts. The total amount of property tax relief granted under the act4
shall be determined as follows: 5
(a) For tax year 2024, the minimum amount of relief granted under6
the act shall be seven hundred fifty million dollars. For tax year 2025,7
the minimum amount of relief granted under the act shall be seven hundred8
eighty million dollars. For tax year 2026, the minimum amount of relief9
granted under the act shall be eight hundred eight million dollars . For10
tax year 2027, the minimum amount of relief granted under the act shall11
be eight hundred thirty-eight million dollars. For tax year 2028, the12
minimum amount of relief granted under the act shall be eight hundred13
seventy million dollars. For tax year 2029, the minimum amount of relief14
granted under the act shall be nine hundred two million dollars. For tax15
year 2030 and each tax year thereafter, the minimum amount of relief16
granted under the act shall be the minimum amount of relief from the17
prior year, excluding any additional relief provided pursuant to18
subdivision (1)(b) of this section, with such amount then increased by19
three percent; and 20
(b) If money is transferred to the School District Property Tax21
Relief Credit Fund pursuant to section 77-4602, such amount shall be22
added to the minimum amount required under subdivision (1)(a) of this23
section when determining the total amount of relief granted under the act24
for the tax year in which the transfer occurs. If no such transfer occurs25
in a given tax year, the minimum amount required under subdivision (1)(a)26
of this section shall be the total amount of relief granted under the act27
for such tax year. 28
(2) To determine the amount of the property tax credit for each29
parcel, the county treasurer shall multiply the amount disbursed to the30
county under subsection (4) of this section by the ratio of the school31
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district taxes levied in the current year on the parcel to the school1
district taxes levied in the current year on all real property in the2
county. The amount so determined shall be the property tax credit for3
that parcel. 4
(3) If the real property owner qualifies for a homestead exemption5
under sections 77-3501 to 77-3529, the owner shall also be qualified for6
the property tax credit provided in this section to the extent of any7
remaining liability after calculation of the homestead exemption. If the8
property tax credit provided in this section results in a property tax9
liability on the homestead that is less than zero, the amount of the10
credit which cannot be used by the taxpayer shall be returned to the11
Property Tax Administrator by July 1 of the year the amount disbursed to12
the county was disbursed. For fiscal years 2024-25 through 2026-27, the13
The Property Tax Administrator shall immediately credit any funds14
returned under this subsection to the School District Property Tax Relief15
Credit Fund. Beginning July 1, 2027, the Property Tax Administrator shall16
credit such funds to the New School Relief Fund. Upon the return of any17
funds under this subsection, the county treasurer shall electronically18
file a report with the Property Tax Administrator, on a form prescribed19
by the Tax Commissioner, indicating the amount of funds distributed to20
each school district in the county in the year the funds were returned21
and the amount of unused credits returned. 22
(4) The amount disbursed to each county under this section shall be23
equal to the amount available for disbursement under subsection (1) of24
this section multiplied by the ratio of the school district taxes levied25
in the prior year on all real property in the county to the school26
district taxes levied in the prior year on all real property in the27
state. By September 15, 2024, and by September 15 , 2026 of each year28
thereafter, the Property Tax Administrator shall determine the amount to29
be disbursed under this subsection to each county and shall certify such30
amounts to the State Treasurer and to each county. The disbursements to31
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the counties shall occur in two equal payments, the first on or before1
January 31 and the second on or before April 1. 2
(5) After retaining one percent of the amount received under3
subsection (4) of this section for costs, the county treasurer shall4
disburse the remaining funds, which are credited against the amount of5
property taxes owed to school districts, in the same manner as if such6
funds had been received in the form of property tax payments for property7
taxes owed to school districts, meaning any amounts attributable to8
divided taxes pursuant to section 18-2147 of the Community Development9
Law shall be remitted to the applicable authority for which such taxes10
were divided. 11
(6) The School District Property Tax Relief Credit Fund shall be12
used for purposes of making the disbursements to counties required under13
subsection (4) of this section. 14
Sec. 69. Section 79-1006, Reissue Revised Statutes of Nebraska, is15
amended to read: 16
79-1006 (1) For school fiscal year 2023-24 and each school fiscal17
year thereafter, the department shall determine the foundation aid to be18
paid to each school district in accordance with subsection (2) of this19
section. 20
(2)(a) For school fiscal years prior to school fiscal year 2027-28,21
the (2) The foundation aid to be paid to each school district in each22
school fiscal year shall equal one thousand five hundred dollars23
multiplied by the number of formula students for such school district.24
(b) For school fiscal year 2027-28 and each school fiscal year25
thereafter, the foundation aid to be paid to each school district in each26
school fiscal year shall equal the number of formula students for such27
school district multiplied by the sum of: 28
(i) One thousand five hundred dollars; and 29
(ii) The amount determined pursuant to subsection (3) of this30
section. 31
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(3) For school fiscal year 2027-28 and each school fiscal year1
thereafter, the department shall determine an amount of additional2
foundation aid to be paid per formula student out of funds available in3
the New School Relief Fund. Such amount shall be equal to the total4
amount available in the New School Relief Fund divided by the total5
number of formula students in all school districts in the state.6
(4) (3) Twenty-four percent of the total amount of foundation aid7
paid each school fiscal year , excluding any foundation aid paid from the8
New School Relief Fund, shall be paid from money appropriated from the9
Education Future Fund. 10
(5) (4) For school fiscal years 2023-24 and 2024-25, one hundred11
percent of foundation aid shall be included as a formula resource12
pursuant to section 79-1017.01. For school fiscal year 2025-26 and each13
school fiscal year thereafter, sixty percent of foundation aid shall be14
included as a formula resource pursuant to section 79-1017.01.15
Sec. 70. Section 79-3405, Reissue Revised Statutes of Nebraska, is16
amended to read: 17
79-3405 (1) A school district's property tax request may exceed its18
property tax request authority by an amount approved by a sixty percent19
majority of legal voters voting on the issue at a special election called20
for such purpose upon the recommendation of the school board of such21
school district or upon the receipt by the county clerk or election22
commissioner of a petition requesting an election signed by at least five23
percent of the legal voters of the school district. The recommendation of24
the school board or the petition of the legal voters shall include the25
amount by which the school board would increase its property tax request26
for the year over and above the property tax request authority of such27
school district. The county clerk or election commissioner shall call for28
a special election on the issue within thirty days after the receipt of29
such school board recommendation or legal voter petition. The election30
shall be held pursuant to the Election Act, and all costs shall be paid31
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by the school district. 1
(2)(a) A school district may increase the base growth percentage2
used to determine its property tax request authority under section3
79-3403 by a percentage approved by an affirmative vote of at least4
seventy percent of the school board of such school district. The maximum5
base growth percentage that may be approved under this subsection shall6
be: 7
(i) The base growth percentage that would otherwise be applicable8
plus an additional seven percent for school districts with an average9
daily membership of no more than four hundred seventy-one students;10
(ii) The base growth percentage that would otherwise be applicable11
plus an additional six percent for school districts with an average daily12
membership of more than four hundred seventy-one students but no more13
than three thousand forty-four students; 14
(iii) The base growth percentage that would otherwise be applicable15
plus an additional five percent for school districts with an average16
daily membership of more than three thousand forty-four students but no17
more than ten thousand students; or 18
(iv) The base growth percentage that would otherwise be applicable19
plus an additional four percent for school districts with an average20
daily membership of more than ten thousand students.21
(b) Before a school board votes to increase a school district's base22
growth percentage under this subsection, the school board shall publish23
notice of the upcoming vote in a legal newspaper of general circulation24
in the school district. Such publication shall occur at least one week25
prior to the public meeting at which the vote will be taken.26
(3) A school district's property tax request may exceed its property27
tax request authority pursuant to any property tax authority approved by28
the voters at a levy override election under section 77-3444 held prior29
to January 1, 2024. 30
(4) A school district may exceed its property tax request authority31
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without the approval of the voters by an amount equal to six percent of1
the school district's prior year property tax request authority. Such2
increase shall be used to pay for teacher salaries, wages, and benefits.3
For purposes of this subsection, teacher means any certified employee who4
is regularly employed for the instruction of pupils in the public5
schools. 6
Sec. 71. (1) The New School Relief Fund is hereby created. The fund7
shall be administered by the State Department of Education and shall8
consist of money transferred pursuant to subdivision (2)(f) of section9
77-27,132 and the amount transferred pursuant to subsection (2) of this10
section. Any money in the fund available for investment shall be invested11
by the state investment officer pursuant to the Nebraska Capital12
Expansion Act and the Nebraska State Funds Investment Act. The fund shall13
be used to provide additional foundation aid to school districts pursuant14
to subsection (3) of section 79-1006. 15
(2) Beginning in fiscal year 2027-28, the State Treasurer shall16
transfer eight hundred thirty-eight million dollars from the General Fund17
to the New School Relief Fund on or before September 1, 2027, and on or18
before September 1 of each year thereafter. 19
(3) Beginning in fiscal year 2027-28, if the state fails to use all20
funds available in the New School Relief Fund for the additional21
foundation aid described in subsection (3) of section 79-1006 for any22
fiscal year, each school district may, if approved by a majority vote of23
the school board for the school district, levy an amount for such fiscal24
year sufficient to generate revenue equal to the amount of foundation aid25
that should have been provided to such school district, not to exceed26
three cents per one hundred dollars of taxable valuation of property27
subject to the levy. The property tax levy provided for in this28
subsection is in addition to the maximum allowable property tax levy29
described in subdivision (2)(a) of section 77-3442.30
Sec. 72. This act becomes operative on January 1, 2027.31
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Sec. 73. Original sections 2-2701, 77-2701.24, 77-2701.36,1
77-2704.03, 77-2704.04, 77-2704.05, 77-2704.07, 77-2704.10, 77-2704.13,2
77-2704.14, 77-2704.16, 77-2704.17, 77-2704.22, 77-2704.23, 77-2704.24,3
77-2704.25, 77-2704.26, 77-2704.27, 77-2704.28, 77-2704.30, 77-2704.38,4
77-2704.39, 77-2704.40, 77-2704.41, 77-2704.42, 77-2704.45, 77-2704.46,5
77-2704.47, 77-2704.48, 77-2704.50, 77-2704.51, 77-2704.52, 77-2704.53,6
77-2704.56, 77-2704.57, 77-2704.58, 77-2704.60, 77-2704.61, 77-2704.62,7
77-2704.63, 77-2704.64, 77-2704.65, 77-2704.67, 77-2706, 77-27,235,8
79-1006, and 79-3405, Reissue Revised Statutes of Nebraska, sections9
77-382, 77-2701, 77-2701.04, 77-2701.32, 77-2703.01, 77-2704.12,10
77-2704.15, 77-2704.20, 77-2704.36, 77-2704.68, 77-2704.69, and11
77-27,132, Revised Statutes Cumulative Supplement, 2024, and sections12
77-2701.16, 77-2703, 77-2706.02, 77-3442, 77-4403, 77-4405, 77-4602,13
77-7304, and 77-7305, Revised Statutes Supplement, 2025, are repealed.14
Sec. 74. The following section is outright repealed: Section15
77-2701.56, Revised Statutes Cumulative Supplement, 2024.16
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