Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1260
Introduced by Clements, 2.
Read first time January 21, 2026
Committee: Transportation and Telecommunications
A BILL FOR AN ACT relating to taxation; to amend sections 60-3,186,1
60-3,187, 60-3,190, and 79-1018.01, Reissue Revised Statutes of2
Nebraska; to change the percentage of motor vehicle tax proceeds and3
collected fees that are retained by county treasurers; to change the4
allocation of motor vehicle tax proceeds and collected fees; to5
provide for a motor vehicle tax supplement; to change and provide6
motor vehicle tax and fee schedules; to change the local system7
formula resources under the Tax Equity and Educational Opportunities8
Support Act; and to repeal the original sections.9
Be it enacted by the people of the State of Nebraska,10
LB1260
2026
LB1260
2026
-1-
Section 1. Section 60-3,186, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
60-3,186 (1) The department shall annually determine the motor3
vehicle tax on each motor vehicle registered pursuant to section 60-3,1874
and shall cause a notice of the amount to be delivered to the registrant.5
The notice may be delivered to the registrant at the address shown upon6
his or her registration certificate or the registrant's most recent7
address according to information received by the department from the8
National Change of Address program of the United States Postal Service or9
delivered electronically to the registrant if the registrant has provided10
electronic contact information to the department. The notice shall be11
provided on or before the first day of the last month of the registration12
period. 13
(2)(a) The motor vehicle tax, motor vehicle fee, registration fee,14
sales tax, and any other applicable taxes and fees shall be paid to the15
county treasurer prior to the registration of the motor vehicle for the16
following registration period. If the motor vehicle being registered has17
been transferred as a gift or for a nominal amount, any sales tax owed by18
the transferor on the purchase of the motor vehicle shall have been paid19
or be paid to the county treasurer prior to the registration of the motor20
vehicle for the following registration period. 21
(b)(i) The county treasurer shall retain the following percent of22
the motor vehicle tax proceeds for costs incurred by such county23
treasurer: 24
(A) For motor vehicle tax proceeds paid prior to July 1, 2028, one25
percent; and 26
(B) For motor vehicle tax proceeds paid on or after July 1, 2028,27
two percent. 28
(ii) The county treasurer shall transfer the following percent of29
the motor vehicle tax proceeds to the State Treasurer for credit to the30
Vehicle Title and Registration System Replacement and Maintenance Cash31
LB1260
2026
LB1260
2026
-2-
Fund: 1
(A) For motor vehicle tax proceeds paid prior to July 1, 2028, one2
percent; and 3
(B) For motor vehicle tax proceeds paid on or after July 1, 2028,4
one and two-tenths of one percent. 5
(iii) The (b) After retaining one percent of the motor vehicle tax6
proceeds collected for costs incurred by the county treasurer, and after7
transferring one percent of the motor vehicle tax proceeds collected to8
the State Treasurer for credit to the Vehicle Title and Registration9
System Replacement and Maintenance Cash Fund, the remaining motor vehicle10
tax proceeds that remain after deducting the percents specified in11
subdivisions (b)(i) and (ii) of this subsection shall be allocated as12
provided in subdivision (c) of this subsection to each county, local13
school system, school district, city, and village in the tax district in14
which the motor vehicle has situs. 15
(c) The remaining motor vehicle tax proceeds shall be allocated as16
follows: 17
(i) For motor vehicle tax proceeds paid prior to July 1, 2028: (A)18
(c)(i) Twenty-two percent of the remaining motor vehicle tax proceeds19
shall be allocated to the county, (B) (ii) sixty percent shall be20
allocated to the local school system or school district, and (C) (iii)21
eighteen percent shall be allocated to the city or village, except that22
(I) (A) if the tax district is not in a city or village, forty percent23
shall be allocated to the county, and (II) (B) in counties containing a24
city of the metropolitan class, eighteen percent shall be allocated to25
the county and twenty-two percent shall be allocated to the city or26
village. 27
(ii) For motor vehicle tax proceeds paid on or after July 1, 2028:28
(A) If the tax district is in a city of the metropolitan class:29
(I) Twenty-six percent to the county; 30
(II) Forty-eight percent to the local school system or school31
LB1260
2026
LB1260
2026
-3-
district; and 1
(III) Twenty-six percent to the city of the metropolitan class;2
(B) If the tax district is in a city other than a city of the3
metropolitan class or in a village: 4
(I) Thirty-one and one-half of one percent to the county;5
(II) Forty-eight percent to the local school system or school6
district; and 7
(III) Twenty and one-half of one percent to the city or village; and8
(C) If the tax district is not described in subdivision (c)(ii)(A)9
or (B) of this subsection: 10
(I) Fifty-two percent to the county; and 11
(II) Forty-eight percent to the local school system or school12
district. 13
(d) The amount allocated to a local school system shall be14
distributed to school districts in the same manner as property taxes.15
(3) Proceeds from the motor vehicle tax shall be treated as property16
tax revenue for purposes of expenditure limitations, matching of state or17
federal funds, and other purposes. 18
(4) Beginning in October 2028, on or before the twentieth day of19
each January, April, July, and October, the department shall:20
(a) Calculate the motor vehicle tax supplement that shall be paid to21
each local school system or school district. Such supplement shall be22
equal to forty and eight-tenths of one percent of the motor vehicle tax23
allocated to such local school system or school district pursuant to this24
section for the preceding three months; and 25
(b) Provide a report to the State Treasurer. Each such report shall26
indicate the amount of the motor vehicle tax supplement to be paid to27
each local school system or school district that is calculated under this28
subsection. 29
(5) Within five business days after receiving a report under30
subdivision (4)(b) of this section, the State Treasurer shall pay, to31
LB1260
2026
LB1260
2026
-4-
each local school system or school district, the motor vehicle tax1
supplements indicated in the report. 2
(6) Beginning with fiscal year 2028-29, it is the intent of the3
Legislature to appropriate each fiscal year an amount sufficient to pay4
the motor vehicle tax supplements calculated under this section.5
Sec. 2. Section 60-3,187, Reissue Revised Statutes of Nebraska, is6
amended to read: 7
60-3,187 (1) The motor vehicle tax schedules are set out in this8
section. 9
(2) The motor vehicle tax shall be calculated by multiplying the10
base tax times the fraction which corresponds to the age category of the11
vehicle as shown in the following table: 12
YEAR 13 FRACTION
First 14 1.00
Second 15 0.80
Second 16 0.90
Third 17 0.65
Third 18 0.80
Fourth 19 0.55
Fourth 20 0.70
Fifth 21 0.48
Fifth 22 0.60
Sixth 23 0.41
Sixth 24 0.51
Seventh 25 0.35
Seventh 26 0.42
Eighth 27 0.29
Eighth 28 0.33
Ninth 29 0.23
Ninth 30 0.24
LB1260
2026
LB1260
2026
-5-
Tenth 1 0.14
Eleventh 2 0.10
Tenth and Eleventh 3 0.15
Twelfth 4 0.06
Thirteenth 5 0.04
Twelfth and Thirteenth 6 0.07
Fourteenth and older 7 0.02
Fourteenth and older 8 0.00
(3) The base tax shall be: 9
(a) Automobiles, autocycles, and motorcycles — An amount determined10
using the following table: 11
Value when new 12 Base tax
Up to $3,999 13 $ 25
$4,000 to $5,999 14 35
$6,000 to $7,999 15 45
$8,000 to $9,999 16 60
$10,000 to $11,999 17 100
$12,000 to $13,999 18 140
$14,000 to $15,999 19 180
$16,000 to $17,999 20 220
$18,000 to $19,999 21 260
$20,000 to $21,999 22 300
$22,000 to $23,999 23 340
$24,000 to $25,999 24 380
$26,000 to $27,999 25 420
$28,000 to $29,999 26 460
$30,000 to $31,999 27 500
$32,000 to $33,999 28 540
$34,000 to $35,999 29 580
$36,000 to $37,999 30 620
LB1260
2026
LB1260
2026
-6-
$38,000 to $39,999 1 660
$40,000 to $41,999 2 700
$42,000 to $43,999 3 740
$44,000 to $45,999 4 780
$46,000 to $47,999 5 820
$48,000 to $49,999 6 860
$50,000 to $51,999 7 900
$52,000 to $53,999 8 940
$54,000 to $55,999 9 980
$56,000 to $57,999 10 1,020
$58,000 to $59,999 11 1,060
$60,000 to $61,999 12 1,100
$62,000 to $63,999 13 1,140
$64,000 to $65,999 14 1,180
$66,000 to $67,999 15 1,220
$68,000 to $69,999 16 1,260
$70,000 to $71,999 17 1,300
$72,000 to $73,999 18 1,340
$74,000 to $75,999 19 1,380
$76,000 to $77,999 20 1,420
$78,000 to $79,999 21 1,460
$80,000 to $81,999 22 1,500
$82,000 to $83,999 23 1,540
$84,000 to $85,999 24 1,580
$86,000 to $87,999 25 1,620
$88,000 to $89,999 26 1,660
$90,000 to $91,999 27 1,700
$92,000 to $93,999 28 1,740
$94,000 to $95,999 29 1,780
$96,000 to $97,999 30 1,820
LB1260
2026
LB1260
2026
-7-
$98,000 to $99,999 1 1,860
$100,000 to $101,999 2 1,900
$100,000 and over 3 1,900
$102,000 to $103,999 4 1,940
$104,000 to $105,999 5 1,980
$106,000 to $107,999 6 2,020
$108,000 to $109,999 7 2,060
$110,000 to $111,999 8 2,100
$112,000 to $113,999 9 2,140
$114,000 to $115,999 10 2,180
$116,000 to $117,999 11 2,220
$118,000 to $119,999 12 2,260
$120,000 to $121,999 13 2,300
$122,000 to $123,999 14 2,340
$124,000 to $125,999 15 2,380
$126,000 to $127,999 16 2,420
$128,000 to $129,999 17 2,460
$130,000 to $131,999 18 2,500
$132,000 to $133,999 19 2,540
$134,000 to $135,999 20 2,580
$136,000 to $137,999 21 2,620
$138,000 to $139,999 22 2,660
$140,000 to $141,999 23 2,700
$142,000 to $143,999 24 2,740
$144,000 to $145,999 25 2,780
$146,000 to $147,999 26 2,820
$148,000 to $149,999 27 2,860
$150,000 to $151,999 28 2,900
$152,000 to $153,999 29 2,940
$154,000 to $155,999 30 2,980
LB1260
2026
LB1260
2026
-8-
$156,000 to $157,999 1 3,020
$158,000 to $159,999 2 3,060
$160,000 to $161,999 3 3,100
$162,000 to $163,999 4 3,140
$164,000 to $165,999 5 3,180
$166,000 to $167,999 6 3,220
$168,000 to $169,999 7 3,260
$170,000 to $171,999 8 3,300
$172,000 to $173,999 9 3,340
$174,000 to $175,999 10 3,380
$176,000 to $177,999 11 3,420
$178,000 to $179,999 12 3,460
$180,000 to $181,999 13 3,500
$182,000 to $183,999 14 3,540
$184,000 to $185,999 15 3,580
$186,000 to $187,999 16 3,620
$188,000 to $189,999 17 3,660
$190,000 to $191,999 18 3,700
$192,000 to $193,999 19 3,740
$194,000 to $195,999 20 3,780
$196,000 to $197,999 21 3,820
$198,000 to $199,999 22 3,860
$200,000 and over 23 3,900
(b) Assembled automobiles — $60 24
(c) Assembled motorcycles other than autocycles — $2525
(d) Cabin trailers, up to one thousand pounds — $1026
(e) Cabin trailers, one thousand pounds and over and less than two27
thousand pounds — $25 28
(f) Cabin trailers, two thousand pounds and over — $4029
(g) Recreational vehicles, less than eight thousand pounds — $16030
LB1260
2026
LB1260
2026
-9-
(h) Recreational vehicles, eight thousand pounds and over and less1
than twelve thousand pounds — $410 2
(i) Recreational vehicles, twelve thousand pounds and over — $8603
(j) Assembled recreational vehicles and buses shall follow the4
schedules for body type and registered weight 5
(k) Trucks — Over seven tons and less than ten tons — $3606
(l) Trucks — Ten tons and over and less than thirteen tons — $5607
(m) Trucks — Thirteen tons and over and less than sixteen tons —8
$760 9
(n) Trucks — Sixteen tons and over and less than twenty-five tons —10
$960 11
(o) Trucks — Twenty-five tons and over — $1,16012
(p) Buses — $360 13
(q) Trailers other than semitrailers — $10 14
(r) Semitrailers — $110 15
(s) Former military vehicles — $50 16
(t) Minitrucks — $50 17
(u) Low-speed vehicles — $50 18
(4) For purposes of subsection (3) of this section, truck means all19
trucks and combinations of trucks except those trucks, trailers, or20
combinations thereof registered under section 60-3,198, and the tax is21
based on the gross vehicle weight rating as reported by the manufacturer.22
(5) Current model year vehicles are designated as first-year motor23
vehicles for purposes of the schedules. 24
(6) When a motor vehicle is registered which is newer than the25
current model year by the manufacturer's designation, the motor vehicle26
is subject to the initial motor vehicle tax in the first registration27
period and ninety-five percent of the initial motor vehicle tax in the28
second registration period. 29
(7) Assembled cabin trailers, assembled recreational vehicles, and30
assembled buses shall be designated as sixth-year motor vehicles in their31
LB1260
2026
LB1260
2026
-10-
first year of registration for purposes of the schedules.1
(8) When a motor vehicle is registered which is required to have a2
title branded as previous salvage pursuant to section 60-174, the motor3
vehicle tax shall be reduced by twenty-five percent.4
Sec. 3. Section 60-3,190, Reissue Revised Statutes of Nebraska, is5
amended to read: 6
60-3,190 (1) A motor vehicle fee is imposed on all motor vehicles7
registered for operation in this state. An owner of a motor vehicle which8
is exempt from the imposition of a motor vehicle tax pursuant to section9
60-3,185 shall also be exempt from the imposition of the motor vehicle10
fee imposed pursuant to this section. 11
(2) The department shall annually determine the motor vehicle fee on12
each motor vehicle registered pursuant to this section and shall cause a13
notice of the amount to be delivered to the registrant. The notice shall14
be combined with the notice of the motor vehicle tax required by section15
60-3,186. 16
(3) The motor vehicle fee schedules are : set out in this subsection17
and subsection (4) of this section. Except for automobiles with a value18
when new of less than $20,000, and for assembled, reconstructed-19
designated, and replica-designated automobiles, the fee shall be20
calculated by multiplying the base fee times the fraction which21
corresponds to the age category of the automobile as shown in the22
following table: 23
YEAR 24 FRACTION
First through fifth 25 1.00
Sixth through tenth 26 .70
Eleventh and over 27 .35
(4) The base fee shall be: 28
(a) Automobiles, with a value when new of less than $20,000, and29
assembled, reconstructed-designated, and replica-designated automobiles —30
$11 $5 31
LB1260
2026
LB1260
2026
-11-
(b) Automobiles, with a value when new of $20,000 through $39,999 —1
$22 $20 2
(c) Automobiles, with a value when new of $40,000 or more — $33 $303
(d) Motorcycles and autocycles — $11 $10 4
(e) Recreational vehicles and cabin trailers — $33 $105
(f) Trucks over seven tons and buses — $33 $306
(g) Trailers other than semitrailers — $11 $107
(h) Semitrailers — $33 $30 8
(i) Former military vehicles — $11 $10 9
(j) Minitrucks — $11 $10 10
(k) Low-speed vehicles — $11 $10. 11
(4) (5) The motor vehicle tax, motor vehicle fee, and registration12
fee shall be paid to the county treasurer prior to the registration of13
the motor vehicle for the following registration period. After retaining14
two one percent of the motor vehicle fee collected for costs, the15
remaining proceeds shall be remitted to the State Treasurer for credit to16
the Motor Vehicle Fee Fund. The State Treasurer shall return money funds17
from the Motor Vehicle Fee Fund remitted by a county treasurer that is18
which are needed for refunds or credits authorized by law.19
(5)(a) (6)(a) The Motor Vehicle Fee Fund is created. On or before20
the last day of each calendar quarter, the State Treasurer shall21
distribute all money funds in the Motor Vehicle Fee Fund as follows: (i)22
Seventy-four Fifty percent to the county treasurer of each county,23
amounts in the same proportion as the most recent allocation received by24
each county from the Highway Allocation Fund; and (ii) twenty-six fifty25
percent to the treasurer of each municipality, amounts in the same26
proportion as the most recent allocation received by each municipality27
from the Highway Allocation Fund. Any money in the fund available for28
investment shall be invested by the state investment officer pursuant to29
the Nebraska Capital Expansion Act and the Nebraska State Funds30
Investment Act. 31
LB1260
2026
LB1260
2026
-12-
(b) Money Funds from the Motor Vehicle Fee Fund shall be considered1
local revenue available for matching state sources.2
(c) All receipts by counties and municipalities from the Motor3
Vehicle Fee Fund shall be used for road, bridge, and street purposes.4
(6) (7) For purposes of subdivisions (3)(a) (4)(a), (b), (c), and5
(f) of this section, automobiles or trucks includes all trucks and6
combinations of trucks or truck-tractors, except those trucks, trailers,7
or semitrailers registered under section 60-3,198, and the fee is based8
on the gross vehicle weight rating as reported by the manufacturer.9
(7) (8) Current model year vehicles are designated as first-year10
motor vehicles for purposes of the schedules. 11
(8) (9) When a motor vehicle is registered which is newer than the12
current model year by the manufacturer's designation, the motor vehicle13
is subject to the initial motor vehicle fee for six registration periods.14
(9) (10) Assembled vehicles other than assembled, reconstructed-15
designated, or replica-designated automobiles shall follow the schedules16
for the motor vehicle body type. 17
Sec. 4. Section 79-1018.01, Reissue Revised Statutes of Nebraska, is18
amended to read: 19
79-1018.01 Except as otherwise provided in this section, local20
system formula resources include other actual receipts available for the21
funding of general fund operating expenditures as determined by the22
department for the second school fiscal year immediately preceding the23
school fiscal year in which aid is to be paid. Other actual receipts24
include: 25
(1) Public power district sales tax revenue; 26
(2) Fines , penalties, and license money distributed in accordance27
with Article VII, section 5, of the Constitution of Nebraska and license28
fees; 29
(3) Tuition receipts from individuals, other districts, or any other30
source except receipts derived from adult education, receipts derived31
LB1260
2026
LB1260
2026
-13-
from summer school tuition, receipts derived from early childhood1
education tuition, tuition receipts from converted contracts beginning2
with the calculation of state aid to be distributed in school fiscal year3
2011-12, and receipts from educational entities as defined in section4
79-1201.01 for providing distance education courses through the5
Educational Service Unit Coordinating Council to such educational6
entities; 7
(4) Transportation receipts; 8
(5) Interest on investments; 9
(6) Other miscellaneous noncategorical local receipts, not including10
receipts from private foundations, individuals, associations, or11
charitable organizations; 12
(7) Special education receipts; 13
(8) Special education receipts and non-special-education receipts14
from the state for wards of the court and wards of the state;15
(9) All receipts from the temporary school fund. Receipts from the16
temporary school fund shall only include (a) receipts pursuant to section17
79-1035 and (b) the receipt of funds pursuant to section 79-1036 for18
property leased for a public purpose as set forth in subdivision (1)(a)19
of section 77-202; 20
(10) Motor vehicle tax and motor vehicle tax supplement receipts21
received; 22
(11) Pro rata motor vehicle license fee receipts;23
(12) Other miscellaneous state receipts excluding revenue from the24
textbook loan program authorized by section 79-734;25
(13) Impact aid entitlements for the school fiscal year which have26
actually been received by the district to the extent allowed by federal27
law; 28
(14) All other noncategorical federal receipts;29
(15) Receipts under the federal Medicare Catastrophic Coverage Act30
of 1988, as such act existed on January 1, 2014, as authorized pursuant31
LB1260
2026
LB1260
2026
-14-
to sections 43-2510 and 43-2511 for services to school-age children,1
excluding amounts designated as reimbursement for costs associated with2
the implementation and administration of the billing system pursuant to3
section 43-2511; 4
(16) Receipts for accelerated or differentiated curriculum programs5
pursuant to sections 79-1106 to 79-1108.03; and 6
(17) Revenue received from the nameplate capacity tax distributed7
pursuant to section 77-6204. 8
Sec. 5. Original sections 60-3,186, 60-3,187, 60-3,190, and9
79-1018.01, Reissue Revised Statutes of Nebraska, are repealed.10
LB1260
2026
LB1260
2026
-15-