Bill > LB714

This bill proposes significant changes to motor vehicle taxes and fees in Nebraska, primarily affecting how motor vehicle tax proceeds are allocated and adjusting the fee structures. The bill increases the percentage of motor vehicle tax proceeds that county treasurers can retain from 1% to 2% and modifies the distribution of remaining tax proceeds among counties, local school systems, and cities or villages. For example, in most tax districts, the county's allocation increases from 22% to 40%, while school districts' allocation decreases from 60% to 37%. The bill also revises the motor vehicle tax schedules, reducing the tax rate for vehicles in their second through fourteenth years of operation, with more gradual reductions for older vehicles. Additionally, the motor vehicle fee schedules are updated, increasing fees for various vehicle types, such as raising fees for automobiles from $5 to $20 for vehicles under $20,000 and from $20 to $40 for vehicles valued between $20,000 and $39,999. The changes will take effect on January 1, 2026, and are intended to adjust how motor vehicle taxes and fees are calculated and distributed across Nebraska.

Transportation and Infrastructure

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59363