Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 848
Introduced by Cavanaugh, J., 9.
Read first time January 08, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend sections1
77-2701 and 77-2701.04, Revised Statutes Cumulative Supplement,2
2024; to exempt sales of certain clothing, personal computers, and3
school supplies from sales and use tax as prescribed; to harmonize4
provisions; to provide an operative date; and to repeal the original5
sections. 6
Be it enacted by the people of the State of Nebraska,7
LB848
2026
LB848
2026
-1-
Section 1. Section 77-2701, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
77-2701 Sections 77-2701 to 77-27,135.01, 77-27,222, 77-27,235,3
77-27,236, and 77-27,238 to 77-27,242 and section 3 of this act shall be4
known and may be cited as the Nebraska Revenue Act of 1967.5
Sec. 2. Section 77-2701.04, Revised Statutes Cumulative Supplement,6
2024, is amended to read: 7
77-2701.04 For purposes of sections 77-2701.04 to 77-2713 and8
77-27,239 and section 3 of this act, unless the context otherwise9
requires, the definitions found in sections 77-2701.05 to 77-2701.5610
shall be used. 11
Sec. 3. (1)(a) The following items are exempted from state and12
local sales and use taxes during a three-day period beginning at 12:0113
a.m. on the first Friday in August and ending at midnight on the Sunday14
following: 15
(i) All retail sales of any article of clothing having a taxable16
value of one hundred dollars or less; 17
(ii) All retail sales of school supplies not to exceed fifty dollars18
per purchase; 19
(iii) All computer software with a taxable value of three hundred20
fifty dollars or less; 21
(iv) All graphing calculators having a taxable value of one hundred22
fifty dollars or less; and 23
(v) All retail sales of personal computers or computer peripheral24
devices not to exceed one thousand five hundred dollars.25
(b) This section applies to sales of items bought for personal use26
only. 27
(c) Items that are normally sold as a single unit shall continue to28
be sold in that manner and shall not be priced separately and sold as29
individual items. 30
(d) The exemption of a bundled transaction shall be calculated as31
LB848
2026
LB848
2026
-2-
provided by law for all other bundled transactions.1
(e) If a purchaser and seller are located in two different time2
zones, the time zone of the purchaser's location shall determine the3
authorized exemption period. 4
(2) For purposes of this section: 5
(a) Clothing means any article of wearing apparel intended to be6
worn on or about the human body including, but not limited to, disposable7
diapers for infants or adults and footwear. The term shall include, but8
not be limited to, cloth and other material used to make school uniforms9
or other school clothing. Items normally sold in pairs shall not be10
separated to qualify for the exemption. The term shall not include11
watches, watchbands, jewelry, handbags, handkerchiefs, umbrellas,12
scarves, ties, headbands, or belt buckles; 13
(b) Personal computers means a laptop, desktop, or tower computer14
system which consists of a central processing unit, random access memory,15
a storage drive, a display monitor, and a keyboard and devices designed16
for use in conjunction with a personal computer, such as a disk drive,17
memory module, compact disk drive, daughterboard, digitizer, microphone,18
modem, motherboard, mouse, multimedia speaker, printer, scanner, single-19
user hardware, single-user operating system, soundcard, or video card;20
and 21
(c) School supplies means any item normally used by students in a22
standard classroom for educational purposes, including but not limited23
to, textbooks, notebooks, paper, writing instruments, crayons, art24
supplies, rulers, book bags, backpacks, handheld calculators, chalk,25
maps, and globes. The term shall not include watches, radios, CD players,26
headphones, sporting equipment, portable or desktop telephones, copiers27
or other office equipment, furniture, or fixtures. School supplies shall28
also include computer software having a taxable value of three hundred29
fifty dollars or less and any graphing calculator having a taxable value30
of one hundred fifty dollars or less. 31
LB848
2026
LB848
2026
-3-
(3) A sale of property that is eligible for an exemption under1
subsection (1) of this section but is purchased under a layaway sale2
shall only qualify for an exemption if: 3
(a) Final payment on a layaway order is made by, and the property is4
given to, the purchaser during the exemption period; or5
(b) The purchaser selects the property and the seller accepts the6
order for the property during the exemption period, for immediate7
delivery upon full payment, even if delivery is made after the exemption8
period. 9
(4)(a) For any discount offered by a seller that is a reduction of10
the sales price of the product, the discounted sales price shall11
determine whether the sales price falls below the price thresholds12
provided in subsection (1) of this section. A coupon that reduces the13
sales price shall be treated as a discount only if the seller is not14
reimbursed for the coupon amount by a third party.15
(b) If a discount applies to the total amount paid by a purchaser16
rather than to the sales price of a particular product and the purchaser17
has purchased both exempt property and taxable property, the seller shall18
allocate the discount based on the total sales prices of the taxable19
property compared to the total sales prices of all property sold in the20
same transaction. 21
(5) Items that are purchased during an exemption period but that are22
not delivered to the purchaser until after the exemption period due to23
the item not being in stock shall qualify for an exemption. The24
provisions of this subsection shall not apply to an item that was25
delivered during an exemption period but was purchased prior to or after26
the exemption period. 27
(6)(a) If a purchaser purchases an item of eligible property during28
an exemption period but later exchanges the item for a similar eligible29
item after the exemption period, no additional tax shall be due on the30
new item. 31
LB848
2026
LB848
2026
-4-
(b) If a purchaser purchases an item of eligible property during an1
exemption period but later returns the item after the exemption period2
and receives credit on the purchase of a different nonexempt item, the3
appropriate sales tax shall be due on the sale of the newly purchased4
item. 5
(c) If a purchaser purchases an item of eligible property before an6
exemption period but during the exemption period returns the item and7
receives credit on the purchase of a different item of eligible property,8
no sales tax shall be due on the sale of the new item if the new item is9
purchased during the exemption period. 10
(d) For a sixty-day period immediately following the end of the11
exemption period, if a purchaser returns an exempt item, no credit for or12
refund of sales tax shall be given unless the purchaser provides a13
receipt or invoice that shows tax was paid or the seller has sufficient14
documentation to show that tax was paid on the item being returned.15
Sec. 4. This act becomes operative on January 1, 2027.16
Sec. 5. Original sections 77-2701 and 77-2701.04, Revised Statutes17
Cumulative Supplement, 2024, are repealed. 18
LB848
2026
LB848
2026
-5-