Bill > LB170

This bill proposes to eliminate sales tax exemptions for candy and soft drinks in Nebraska by modifying existing tax law. Specifically, the bill adds new definitions for "candy" as preparations of sweeteners combined with other ingredients in bar, drop, or piece form (excluding items with flour or requiring refrigeration) and "soft drinks" as nonalcoholic beverages containing sweeteners (with exceptions for milk-based, soy-based, or fruit/vegetable juice drinks). By including candy and soft drinks in the list of items not considered "food or food ingredients," the bill effectively removes their previous sales tax exemption, meaning these products will now be subject to sales tax when purchased in the state. The changes will become operative on October 1, 2025, giving businesses and consumers time to prepare for the new tax treatment. This modification is part of a broader effort to adjust the state's sales tax code, potentially as a method to generate additional revenue for the state by expanding the tax base.