Bill > LB331

This bill: Adopts the Nebraska EPIC Option Consumption Tax Act (where EPIC stands for "elimination of property, income, and corporate taxes"), which would fundamentally transform Nebraska's tax system by eliminating existing taxes and replacing them with a 7.5% consumption tax. The bill would terminate several existing tax provisions, including property tax, income tax, sales and use taxes, motor vehicle tax, inheritance tax, and other specific taxes by the end of 2027. Beginning January 1, 2028, the state would implement a comprehensive consumption tax that applies to most goods and services, with some specific exemptions such as used property, groceries, and certain business-related purchases. The bill creates several new governance structures, including a Budget Equalization and Review Board, a School Equalization and Review Board, and various funds like the County Trust Fund and Education Trust Fund, to manage state and local government funding. The consumption tax would be collected by registered sellers and remitted to the state, with counties and cities potentially allowed to impose an additional 1% tax for bond repayment. The legislation also establishes detailed provisions for tax administration, including taxpayer rights, record-keeping requirements, and penalties for non-compliance. The bill represents a radical restructuring of Nebraska's tax system, aiming to create a more straightforward and potentially less burdensome tax environment for citizens and businesses.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58804