Bill > LB117

This bill amends Nebraska's sales and use tax law to provide a sales tax exemption for electricity, natural gas, propane, and sewer utilities used in residential settings. The legislation expands the existing tax exemptions to include residential utility services, with a broad definition of "residential use" that covers not just single-family homes, but also apartments where utility costs are separately charged from rent, and commercial properties primarily used as residences. The bill specifically adds these utility types to the list of tax-exempt purchases, which already included other energy sources like coal, fuel oil, and propane used in agricultural or industrial contexts. The tax exemption will become operative on January 1, 2026, meaning consumers will not have to pay sales tax on these residential utility services starting from that date. This change aims to reduce the financial burden on residential utility consumers by eliminating the sales tax on essential utility services.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58908