Bill

Bill > LB1257


NE LB1257

NE LB1257
Eliminate certain sales tax exemptions, impose sales and use taxes on certain services, change school district levy limitations, eliminate the School District Property Tax Relief Act, change provisions of the School District Property Tax Limitation Act, and provide additional foundation aid under the Tax Equity and Educational Opportunities Support Act


summary

Introduced
01/21/2026
In Committee
01/23/2026
Crossed Over
Passed
Dead

Introduced Session

Potential new amendment
109th Legislature

Bill Summary

A BILL FOR AN ACT relating to revenue and taxation; to amend sections 2-2701, 77-2701.24, 77-2701.36, 77-2704.03, 77-2704.04, 77-2704.05, 77-2704.07, 77-2704.10, 77-2704.13, 77-2704.14, 77-2704.16, 77-2704.17, 77-2704.22, 77-2704.23, 77-2704.24, 77-2704.25, 77-2704.26, 77-2704.27, 77-2704.28, 77-2704.30, 77-2704.38, 77-2704.39, 77-2704.40, 77-2704.41, 77-2704.42, 77-2704.45, 77-2704.46, 77-2704.47, 77-2704.48, 77-2704.50, 77-2704.51, 77-2704.52, 77-2704.53, 77-2704.56, 77-2704.57, 77-2704.58, 77-2704.60, 77-2704.61, 77-2704.62, 77-2704.63, 77-2704.64, 77-2704.65, 77-2704.67, 77-2706, 77-27,235, 79-1006, and 79-3405, Reissue Revised Statutes of Nebraska, sections 77-382, 77-2701, 77-2701.04, 77-2701.32, 77-2703.01, 77-2704.12, 77-2704.15, 77-2704.20, 77-2704.36, 77-2704.68, 77-2704.69, and 77-27,132, Revised Statutes Cumulative Supplement, 2024, and sections 77-2701.16, 77-2703, 77-2706.02, 77-3442, 77-4403, 77-4405, 77-4602, 77-7304, and 77-7305, Revised Statutes Supplement, 2025; to define and redefine terms; to impose sales and use taxes on services as prescribed; to eliminate certain sales tax exemptions; to change school district levy limitations and provide exceptions; to change provisions relating to the transfer of funds; to eliminate the School District Property Tax Relief Act; to terminate a fund; to provide additional foundation aid under the Tax Equity and Educational Opportunities Support Act; to change provisions of the School District Property Tax Limitation Act; to create a fund; to harmonize provisions; to provide an operative date; to repeal the original sections; and to outright repeal section 77-2701.56, Revised Statutes Cumulative Supplement, 2024.

AI Summary

This bill makes significant changes to Nebraska's tax laws, primarily by eliminating certain sales tax exemptions and imposing sales and use taxes on various services, with most of these changes taking effect on January 1, 2027. It also revises school district levy limitations, eliminates the School District Property Tax Relief Act, and establishes a new fund called the New School Relief Fund to provide additional foundation aid to school districts, beginning in fiscal year 2027-28. The bill redefines terms related to services and sellers, and while it removes many existing sales tax exemptions, it introduces a new exemption for health services as defined by the Standard Industrial Classification Manual. Additionally, it modifies provisions related to school district property tax levies and the distribution of tax revenue, aiming to harmonize various tax statutes and provide additional support for education.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Revenue Hearing (13:30:00 2/11/2026 Room 1524) (on 02/11/2026)

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