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                             LEGISLATURE OF NEBRASKA
                          ONE HUNDRED NINTH LEGISLATURE
                                  SECOND SESSION
                   LEGISLATIVE BILL 1257
    Introduced by Hansen, 16.
    Read first time January 21, 2026
    Committee: Revenue
1    A BILL FOR AN ACT relating to revenue and taxation; to amend sections
22-2701, 77-2701.24, 77-2701.36, 77-2704.03, 77-2704.04, 77-2704.05,
377-2704.07,       77-2704.10,        77-2704.13,       77-2704.14,  77-2704.16,
477-2704.17,       77-2704.22,        77-2704.23,       77-2704.24,  77-2704.25,
577-2704.26,       77-2704.27,        77-2704.28,       77-2704.30,  77-2704.38,
677-2704.39,       77-2704.40,        77-2704.41,       77-2704.42,  77-2704.45,
777-2704.46,       77-2704.47,        77-2704.48,       77-2704.50,  77-2704.51,
877-2704.52,       77-2704.53,        77-2704.56,       77-2704.57,  77-2704.58,
977-2704.60,       77-2704.61,        77-2704.62,       77-2704.63,  77-2704.64,
1077-2704.65, 77-2704.67, 77-2706, 77-27,235, 79-1006, and 79-3405,
11Reissue   Revised    Statutes    of    Nebraska,      sections   77-382,       77-2701,
1277-2701.04,       77-2701.32,        77-2703.01,       77-2704.12,  77-2704.15,
1377-2704.20,      77-2704.36,    77-2704.68,        77-2704.69,        and    77-27,132,
14Revised   Statutes       Cumulative        Supplement,     2024,       and     sections
1577-2701.16, 77-2703, 77-2706.02, 77-3442, 77-4403, 77-4405, 77-4602,
1677-7304, and 77-7305, Revised Statutes Supplement, 2025; to define
17and redefine terms; to impose sales and use taxes on services as
18prescribed; to eliminate certain sales tax exemptions; to change
19school district levy limitations and provide exceptions; to change
20provisions    relating   to    the    transfer   of    funds;    to    eliminate     the
21School District Property Tax Relief Act; to terminate a fund; to
22provide   additional      foundation       aid   under    the    Tax        Equity   and
23Educational Opportunities Support Act; to change provisions of the
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1     School District Property Tax Limitation Act; to create a fund; to
2     harmonize provisions; to provide an operative date; to repeal the
3     original   sections;   and   to     outright   repeal   section   77-2701.56,
4     Revised Statutes Cumulative Supplement, 2024.
5 Be it enacted by the people of the State of Nebraska,
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1Section 1. Section 2-2701, Reissue Revised Statutes of Nebraska, is
2     amended to read:
32-2701 (1) No person shall be permitted to sell or dispose of any
4    current tractor model of one hundred or more horsepower in the State of
5     Nebraska without first having (a) made application for a permit and
6  obtained a permit to sell the tractor model, (b) the model tested by the
7 University of Nebraska onsite or offsite or by any Organization for
8     Economic Cooperation and Development test station, and (c) the model
9     passed upon by the board.
10(2) A person may obtain a permit to sell or dispose of a current
11    tractor model of less than one hundred horsepower by meeting the permit
12    requirements of sections 2-2701 to 2-2711. A purchaser of a current
13    tractor model is not eligible to claim the exemption from sales and use
14    tax for agricultural machinery and equipment under section 77-2704.36
15    unless the current tractor model has been permitted for sale pursuant to
16    sections 2-2701 to 2-2711.
17(3) Each and every tractor model presented for testing shall be a
18    stock model and shall not be equipped with any special accessory unless
19    regularly supplied to the trade. Any tractor model not complying with
20    this    section   shall    not   be   tested    under   sections    2-2701      to   2-2711.
21    Applications shall be made to the board and shall be accompanied by
22     specifications of the tractor model required by the board and by the
23     applicable fees specified in sections 2-2705 and 2-2705.01.
24(4)   If   an      official     test     application,       with    the       required
25     specifications and fees, is submitted to any Organization for Economic
26    Cooperation and Development test station or to the University of Nebraska
27    and an application for a temporary permit and the fee prescribed in
28     section 2-2705.01 are submitted, the department, with the approval of the
29 board, may issue a temporary permit for the sale of the tractor model
30     specified    in   the   official      test    application.   The    date   on    which   the
31    temporary permit terminates shall be fixed by the board. All temporary
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1 permits shall be conditioned upon such tractor model being tested at a
2    mutually agreed-upon date, and the person to whom a temporary permit has
3    been issued shall submit a tractor model for testing which conforms to
4    the specifications filed with the official test application. Such tractor
5    model shall be delivered for testing at the mutually agreed-upon date.
6     Upon failure so to do, all such fees deposited by such person shall be
7  forfeited to the University of Nebraska Tractor Test Cash Fund, except
8 that the fee imposed in section 2-2705.01 shall be deposited in and
9    forfeited to the Tractor Permit Cash Fund, and in addition such person
10    shall not be issued any temporary permit for a period of five years from
11     the date such tractor was to be delivered for testing and until such
12 person    meets   the   obligations   required   under   subsection   (5)   of   this
13    section to the department's satisfaction.
14(5) All sales of tractors upon which a temporary permit has been
15  issued shall be made subject to the final official test and approval of
16  the tractor model as follows:
17(a) If a tractor model upon which a temporary permit has been issued
18     was not submitted for the official test and approval on the mutually
19 agreed-upon date, the person to whom the temporary permit was issued
20    shall repurchase any such tractor sold in Nebraska under the temporary
21     permit. A claim by a purchaser under this subdivision shall be brought
22     within two years after the date of the expiration of the temporary
23  permit; and
24(b) If a tractor model upon which a temporary permit has been issued
25     fails in the official test to meet the specifications of the tractor
26  model which were filed with the application and fees, the person to whom
27  the temporary permit was issued shall send a notice, as approved by the
28  department, to any person in Nebraska who has purchased a tractor sold
29  under the temporary permit. The person to whom the temporary permit was
30 issued shall either modify the tractor to meet the specifications filed
31     with the board or remedy to the satisfaction of the purchaser any injury
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1 incurred by the purchaser which was caused by the failure of the tractor
2 to meet the specifications claimed. Such person shall be prohibited from
3 modifying sales literature, advertisement claims, or specifications of
4 the tractor to avoid such notice.
5Sec.   2.   Section   77-382,   Revised    Statutes      Cumulative   Supplement,
6 2024, is amended to read:
777-382 (1) The department shall prepare a tax expenditure report
8 describing (a) the basic provisions of the Nebraska tax laws, (b) the
9 actual or estimated revenue loss caused by the exemptions, deductions,
10 exclusions, deferrals, credits, and preferential rates in effect on July
11 1 of each year and allowed under Nebraska's tax structure and in the
12     property tax, (c) the actual or estimated revenue loss caused by failure
13     to impose sales and use tax on services purchased for nonbusiness use,
14 and (d) the elements which make up the tax base for state and local
15 income, including income, sales and use, property, and miscellaneous
16 taxes.
17(2) The department shall review the major tax exemptions for which
18 state general funds are used to reduce the impact of revenue lost due to
19 a tax expenditure. The report shall indicate an estimate of the amount of
20 the     reduction    in   revenue   resulting     from    the    operation    of   all   tax
21 expenditures. The report shall list each tax expenditure relating to
22 sales and use tax under the following categories:
23(a) Agriculture, which shall include a separate listing for each
24 item the following items: Agricultural machinery; agricultural chemicals;
25  seeds     sold     to    commercial    producers;       water    for   irrigation       and
26 manufacturing; commercial artificial insemination; mineral oil as dust
27 suppressant; animal grooming; oxygen for use in aquaculture; animal life
28 whose products constitute food for human consumption; and grains;
29(b) Business across state lines, which shall include a separate
30 listing for each item the following items: Property shipped out-of-state;
31 fabrication labor for items to be shipped out-of-state; property to be
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1  transported out-of-state; property purchased in other states to be used
2  in Nebraska; aircraft delivery to an out-of-state resident or business;
3  state reciprocal agreements for industrial machinery; and property taxed
4  in another state;
5(c) Common carrier and logistics, which shall include a separate
6  listing for each item the following items: Railroad rolling stock and
7  repair parts and services; common or contract carriers and repair parts
8  and    services;    common      or    contract      carrier    accessories;    and    common    or
9  contract carrier safety equipment;
10(d) Consumer goods, which shall include a separate listing for each
11  item     the    following    items:        Motor    vehicles     and     motorboat    trade-ins;
12  merchandise        trade-ins;  certain       medical     equipment      and     medicine;
13  newspapers; laundromats; telefloral deliveries; motor vehicle discounts
14  for the disabled; and political campaign fundraisers;
15(e) Energy, which shall include a separate listing for each item the
16  following items: Motor fuels; energy used in industry; energy used in
17  agriculture; aviation fuel; and minerals, oil, and gas severed from real
18  property;
19(f) Food, which shall include a separate listing for each item the
20     following    items:   Food        for   home     consumption;       Supplemental    Nutrition
21  Assistance Program; school lunches; meals sold by hospitals; meals sold
22 by institutions at a flat rate; food for the elderly, handicapped, and
23    Supplemental Security Income recipients; and meals sold by churches;
24(g) General business, which shall include a separate listing for
25  each     item    the     following  items:    Component     and     ingredient       parts;
26  manufacturing       machinery;        containers;      film    rentals;     molds     and   dies;
27  syndicated programming; intercompany sales; intercompany leases; sale of
28  a business or farm machinery; and transfer of property in a change of
29  business ownership;
30(h) Lodging and shelter, which shall include a separate listing for
31    each the following item : Room rentals by certain institutions;
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1(i) Miscellaneous, which shall include a separate listing for each
2  item the following items: Cash discounts and coupons; separately stated
3 finance        charges;       casual     sales;     lease-to-purchase      agreements;     and
4    separately stated taxes;
5(j)    Nonprofits,      governments,        and   exempt   entities,    which    shall
6     include a separate listing for each item the following items: Purchases
7     by   political     subdivisions       of   the   state;   purchases   by    churches    and
8 nonprofit colleges and medical facilities; purchasing agents for public
9     real estate construction improvements; contractor as purchasing agent for
10  public agencies; Nebraska lottery; admissions to school events; sales on
11  Native American Indian reservations; school-supporting fundraisers; fine
12 art purchases by a museum; purchases by the Nebraska State Fair Board;
13    purchases by the Nebraska Investment Finance Authority and licensees of
14     the State Racing and Gaming Commission; purchases by the United States
15     Government; public records; and sales by religious organizations;
16(k) Recent sales tax expenditures, which shall include a separate
17  listing for each sales tax expenditure created by statute or rule and
18     regulation after July 19, 2012;
19(l) Services purchased for nonbusiness use, which shall include a
20  separate listing for each such service , including, but not limited to,
21  the following items: Motor vehicle cleaning, maintenance, and repair
22     services; cleaning and repair of clothing; cleaning, maintenance, and
23  repair of other tangible personal property; maintenance, painting, and
24  repair        of    real     property;    entertainment      admissions;      personal    care
25  services; lawn care, gardening, and landscaping services; pet-related
26  services;  storage    and   moving     services;     household   utilities;      other
27  personal services; taxi, limousine, and other transportation services;
28  legal services; accounting services; other professional services; and
29  other real estate services; and
30(m) Telecommunications, which shall include a separate listing for
31 each item the following items: Telecommunications access charges; prepaid
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1    calling arrangements; conference bridging services; and nonvoice data
2    services.
3(3) It is the intent of the Legislature that nothing in the Tax
4    Expenditure Reporting Act shall cause the valuation or assessment of any
5    property exempt from taxation on the basis of its use exclusively for
6    religious, educational, or charitable purposes.
7Sec. 3. Section 77-2701, Revised Statutes Cumulative Supplement,
8    2024, is amended to read:
977-2701    Sections   77-2701    to    77-27,135.01,    77-27,222,    77-27,235,
10    77-27,236, and 77-27,238 to 77-27,242 and sections 9 and 58 of this act
11    shall be known and may be cited as the Nebraska Revenue Act of 1967.
12Sec. 4. Section 77-2701.04, Revised Statutes Cumulative Supplement,
13     2024, is amended to read:
1477-2701.04    For   purposes    of    sections    77-2701.04    to   77-2713   and
15 77-27,239 and sections 9 and 58 of this act, unless the context otherwise
16    requires, the definitions found in sections 77-2701.05 to 77-2701.55 and
17    section 9 of this act 77-2701.56 shall be used.
18Sec. 5. Section 77-2701.16, Revised Statutes Supplement, 2025, is
19  amended to read:
2077-2701.16 (1) Gross receipts means the total amount of the sale or
21     lease or rental price, as the case may be, of the retail sales of
22  retailers.
23(2) Gross receipts of every person engaged as a public utility
24  specified in this subsection, as a community antenna television service
25 operator, or as a satellite service operator or any person involved in
26     connecting and installing services defined in subdivision (2)(a), (b), or
27  (d) of this section means:
28(a)(i) In the furnishing of telephone communication service, other
29     than     mobile     telecommunications       service     as   described     in   section
30     77-2703.04, the gross income received from furnishing ancillary services,
31     except      for      conference        bridging        services,      and    intrastate
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1     telecommunications  services,      except        for    value-added,  nonvoice     data
2  service.
3(ii)     In    the       furnishing      of       mobile    telecommunications  service   as
4 described       in        section     77-2703.04,  the     gross       income        received     from
5    furnishing        mobile        telecommunications  service        that     originates  and
6    terminates in the same state to a customer with a place of primary use in
7    Nebraska;
8(b)     In     the       furnishing     of     telegraph       service,  the     gross    income
9    received from the furnishing of intrastate telegraph services;
10(c)(i)        In    the     furnishing       of     gas,   sewer,        water,    and     electricity
11     service,    other        than    electricity  service     to     a    customer-generator  as
12  defined in section 70-2002, the gross income received from the furnishing
13     of such services upon billings or statements rendered to consumers for
14  such utility services.
15(ii)     In        the    furnishing     of       electricity        service       to     a    customer-
16  generator as defined in section 70-2002, the net energy use upon billings
17 or     statements  rendered     to    customer-generators  for     such    electricity
18    service;
19(d) In the furnishing of community antenna television service or
20    satellite service, the gross income received from the furnishing of such
21    community antenna television service as regulated under sections 18-2201
22    to 18-2205 or 23-383 to 23-388 or satellite service; and
23(e)     The    gross        income    received       from    the     provision,  installation,
24  construction, servicing, or removal of property used in conjunction with
25  the furnishing, installing, or connecting of any public utility services
26 specified in subdivision (2)(a) or (b) of this section or community
27    antenna television service or satellite service specified in subdivision
28     (2)(d) of this section, except when acting as a subcontractor for a
29 public utility, this subdivision does not apply to the gross income
30    received by a contractor electing to be treated as a consumer of building
31    materials under subdivision (2) or (3) of section 77-2701.10 for any such
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1 services performed on the customer's side of the utility demarcation
2    point. This subdivision also does not apply to:
3(i) The gross income received by a political subdivision of the
4    state, an electric cooperative, or an electric membership association for
5     the lease or use of, or by a contractor for the construction of or
6  services provided on, electric generation, transmission, distribution, or
7 street lighting structures or facilities owned by a political subdivision
8    of    the   state,       an    electric    cooperative,  or    an     electric      membership
9    association; or
10(ii) The gross income received for the lease or use of towers or
11  other structures and equipment, including antennas and studio transmitter
12  link systems, primarily used in conjunction with the furnishing of (A)
13 Internet  access       services,    (B)     agricultural        global    positioning      system
14    locating services, or (C) over-the-air radio and television broadcasting
15     via   radio    and     television       broadcast      stations      licensed    by     the   Federal
16 Communications  Commission.       For    purposes       of    this    subdivision,     studio
17    transmitter link system means a radiofrequency apparatus which serves as
18     a conduit to deliver station programming content from its origin in a
19     studio to a broadcast transmitter and antenna.
20(3) Gross receipts of every person engaged in selling, leasing, or
21  otherwise providing intellectual or entertainment property means:
22(a)     In   the      furnishing     of       computer   software,       the    gross   income
23     received,      including        the    charges       for   coding,    punching,       or   otherwise
24  producing any computer software and the charges for the tapes, disks,
25  punched cards, or other properties furnished by the seller; and
26(b)     In     the      furnishing       of    videotapes,       movie    film,      satellite
27     programming,       satellite       programming  service,      and    satellite      television
28  signal descrambling or decoding devices, the gross income received from
29  the license, franchise, or other method establishing the charge.
30(4) Gross receipts includes the gross income received for providing
31     a service. Services shall be presumed taxable unless a specific exemption
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1 applies. for providing a service means:
2(a) The gross income received for building cleaning and maintenance,
3 pest control, and security;
4(b) The gross income received for motor vehicle washing, waxing,
5 towing, and painting;
6(c) The gross income received for computer software training;
7(d) The gross income received for installing and applying tangible
8 personal property if the sale of the property is subject to tax. If any
9 or all of the charge for installation is free to the customer and is paid
10 by a third-party service provider to the installer, any tax due on that
11 part of the activation commission, finder's fee, installation charge, or
12 similar payment made by the third-party service provider shall be paid
13 and remitted by the third-party service provider;
14(e) The gross income received for services of recreational vehicle
15 parks;
16(f) The gross income received for labor for repair or maintenance
17 services performed with regard to tangible personal property the sale of
18 which would be subject to sales and use taxes, excluding motor vehicles,
19 except as otherwise provided in section 77-2704.26 or 77-2704.50;
20(g) The gross income received for animal specialty services except
21 (i) veterinary services, (ii) specialty services performed on livestock
22 as defined in section 54-183, and (iii) animal grooming performed by a
23 licensed veterinarian or a licensed veterinary technician in conjunction
24 with medical treatment; and
25(h) The gross income received for detective services.
26(5)   Gross       receipts   includes      the    sale      of    admissions.     When   an
27 admission to an activity or a membership constituting an admission is
28 combined with the solicitation of a contribution, the portion or the
29 amount charged representing the fair market price of the admission shall
30 be   considered     a    retail    sale   subject      to   the   tax    imposed   by    section
31 77-2703. The organization conducting the activity shall determine the
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1  amount properly attributable to the purchase of the privilege, benefit,
2  or other consideration in advance, and such amount shall be clearly
3  indicated on any ticket, receipt, or other evidence issued in connection
4     with the payment.
5(6) Gross receipts includes the sale of live plants incorporated
6     into real estate except when such incorporation is incidental to the
7  transfer of an improvement upon real estate or the real estate.
8(7)    Gross   receipts     includes    the   sale    of   any   building     materials
9  annexed to real estate by a person electing to be taxed as a retailer
10  pursuant to subdivision (1) of section 77-2701.10.
11(8) Gross receipts includes the sale of and recharge of prepaid
12  calling service and prepaid wireless calling service.
13(9) Gross receipts includes the retail sale of digital audio works,
14  digital audiovisual works, digital codes, and digital books delivered
15     electronically if the products are taxable when delivered on tangible
16  storage media. A sale includes the transfer of a permanent right of use,
17  the transfer of a right of use that terminates on some condition, and the
18     transfer of a right of use conditioned upon the receipt of continued
19  payments.
20(10) Gross receipts includes any receipts from sales of tangible
21  personal property made over a multivendor marketplace platform that acts
22  as    the    intermediary    by    facilitating      sales    between   a   seller    and   the
23 purchaser and that, either directly or indirectly through agreements or
24     arrangements with third parties, collects payment from the purchaser and
25  transmits payment to the seller.
26(11) Gross receipts does not include:
27(a) The amount of any rebate granted by a motor vehicle or motorboat
28  manufacturer or dealer at the time of sale of the motor vehicle or
29  motorboat, which rebate functions as a discount from the sales price of
30  the motor vehicle or motorboat; or
31(b)    The   price   of    property    or   services    returned     or   rejected    by
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1  customers when the full sales price is refunded either in cash or credit.
2Sec. 6. Section 77-2701.24, Reissue Revised Statutes of Nebraska, is
3    amended to read:
477-2701.24 Occasional sale means:
5(1) A sale, but not a lease or rental, of property which is the
6  subject      of   any       intercompany        sale      or    transfer        involving    any    parent,
7  subsidiary,        or        brother-sister  company       relationship  under     section
8  77-2704.28 and which was either originally acquired prior to June 1,
9  1967, or, if acquired thereafter, the seller or transferor directly or
10  indirectly has previously paid a sales or use tax thereon, including:
11(a)   From      one     corporation  to   another        corporation      pursuant       to   a
12  reorganization. For purposes of this subdivision, reorganization means a
13  statutory merger or consolidation or the acquisition by a corporation of
14  substantially  all    of    the    properties  of   another      corporation       when    the
15     consideration       is    solely       all   or    a    part     of    the    voting     stock    of   the
16  acquiring corporation or of its parent or subsidiary corporation;
17(b) In connection with the winding up, dissolution, or liquidation
18  of a corporation only when there is a distribution of the property of
19  such corporation to the shareholders in kind if the portion of the
20  property so distributed to the shareholder is substantially in proportion
21     to the share of stock or securities held by the shareholder;
22(c)   To    a    corporation  for      the    purpose       of    organization        of    such
23  corporation or the contribution of additional capital to such corporation
24     when the former owners of the property transferred are immediately after
25     the transfer in control of the corporation and the stock or securities
26  received by each is substantially in proportion to his or her interest in
27     the property prior to the transfer;
28(d) To a partnership in the organization of such partnership if the
29  former    owners       of     the   property  transferred  are    immediately    after       the
30     transfer members of such partnership and the interest in the partnership
31    received by each is substantially in proportion to his or her interest in
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1 the property prior to the transfer;
2(e) From a partnership to the members thereof when made in kind in
3 the dissolution of such partnership if the portion of the property so
4 distributed     to   the    members    of    the    partnership    is   substantially    in
5     proportion to the interest in the partnership held by the members;
6(f) To a limited liability company in the organization of such
7  limited     liability     company    if    the    former     owners    of   the    property
8 transferred are immediately after the transfer members of such limited
9 liability     company    and   the    interest     in   the   limited   liability    company
10 received by each is substantially in proportion to his or her interest in
11 the property prior to the transfer;
12(g) From a limited liability company to the members thereof when
13 made in kind in the dissolution of such limited liability company if the
14 portion of the property so distributed to the members of the limited
15 liability company is substantially in proportion to the interest in the
16 limited liability company held by the members;
17(h) From one limited liability company to another limited liability
18     company pursuant to a reorganization; or
19(i) Any transaction between two persons that qualifies as a tax-free
20 transaction under the Internal Revenue Code;
21(2) A sale of household goods, personal effects, and services if
22 each of the following conditions is met and if any one condition is not
23 met then the entire gross receipts shall be subject to the tax imposed by
24 section 77-2703:
25(a) Such sales are by an individual at his or her residence or if
26 more than one individual's property is involved such sales are by one of
27 the individuals involved at the residence of one of the individuals or
28 such sales are by an individual on an online auction site;
29(b) Such sales do not occur at any residence or on an online auction
30 site for more than three days during a calendar year;
31(c) Such individual or individuals or any member of any of their
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1 households does not conduct or engage in a trade or business in which
2 similar items are sold or services provided;
3(d) Such property sold was originally acquired for and used for
4 personal use or the service provided may be performed at any individual
5 residence without specialized equipment or supplies; and
6(e) Such property is not otherwise excepted from the definition of
7 occasional sale;
8(3) Commencing with any transaction occurring on or after October 1,
9 1985, any sale of business or farm machinery and equipment if each of the
10 following conditions is met and if any one condition is not met the
11     entire gross receipts shall be subject to the tax imposed by section
12 77-2703:
13(a) Such machinery or equipment was used by the seller or seller's
14 predecessor in a sale described in subdivision (1) of this section as a
15 depreciable capital asset in connection with the farm or business for a
16     period of at least one year;
17(b) Such property was originally acquired prior to June 1, 1967, or
18 if acquired thereafter, the seller or seller's predecessor in a sale
19 described in subdivision (1) of this section directly or indirectly has
20 previously paid a sales or use tax thereon; and
21(c) Such property is not otherwise excepted from the definition of
22 occasional sale;
23(4) Commencing October 1, 1985, a sale by an organization created
24 exclusively for religious purposes or an agent of the organization for
25 such sale if each of the following conditions is met and if any one
26 condition is not met then the entire gross receipts shall be subject to
27 the tax imposed by section 77-2703:
28(a)   All   sales   occur   during   an   activity   conducted   by    such
29 organization or, if more than one organization is involved, by one of the
30 organizations owning property being sold;
31(b) The organization only sells property it owns or provides the
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1  service during one such activity in a calendar year; and
2(c) The activity does not last longer than three consecutive days;
3  and
4(5) Any sale that is made in connection with the sale to a single
5     buyer of all or substantially all of a trade or business if the seller or
6  seller's predecessor in a sale described in subdivision (1) of this
7  section directly or indirectly has previously paid a sales or use tax
8  thereon. This subdivision shall apply to any transaction occurring on or
9  after October 1, 1985.
10Commencing October 1, 1985, occasional sale does not include any
11  sale    directly      by    or   any    sale    which   is   supervised      or    aided   by   an
12     auctioneer or an agent or employee of an auctioneer.
13Except for a sale listed in subdivision (1) of this section, an
14    occasional sale does not mean any sale of motor vehicles, semitrailers,
15    or trailers as defined in the Motor Vehicle Registration Act or any sale
16    of a motorboat as defined in section 37-1204.
17Sec. 7. Section 77-2701.32, Revised Statutes Cumulative Supplement,
18  2024, is amended to read:
1977-2701.32 (1) Retailer means any seller.
20(2) To facilitate the proper administration of the Nebraska Revenue
21 Act of 1967, the following persons have the duties and responsibilities
22    of sellers for the purposes of sales and use taxes:
23(a) Any person in the business of making sales subject to tax under
24  section 77-2703 at auction of property owned by the person or others;
25(b) Any person collecting the proceeds of the auction, other than
26     the owner of the property, together with his or her principal, if any,
27  when    the   person       collecting    the     proceeds    of    the   auction    is   not    the
28  auctioneer or an agent or employee of the auctioneer. The seller does not
29  include the auctioneer in such case;
30(c)    Every   person     who    has     elected     to    be   considered   a    retailer
31    pursuant to subdivision (1) of section 77-2701.10;
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1(d) Every person operating, organizing, or promoting a flea market,
2     craft show, fair, or similar event;
3(e) Every person engaged in the business of providing any service in
4  this state defined in subsection (4) of section 77-2701.16; and
5(f) Every person operating a multivendor marketplace platform that
6     (i) acts as the intermediary by facilitating sales between a seller and
7     the purchaser or that engages directly or indirectly through one or more
8     affiliated persons in transmitting or otherwise communicating the offer
9     or acceptance between the seller and purchaser and (ii) either directly
10  or indirectly through agreements or arrangements with third parties,
11  collects payment from the purchaser and transmits payment to the seller.
12(3) For the proper administration of the Nebraska Revenue Act of
13  1967, the following persons do not have the duties and responsibilities
14  of a seller for purposes of sales and use taxes:
15(a) Any person who leases or rents films when an admission tax is
16     charged under the Nebraska Revenue Act of 1967;
17(b)    Any    person     who    leases        or    rents     railroad    rolling      stock
18  interchanged        pursuant     to    the    provisions        of   the    federal   Interstate
19     Commerce Act;
20(c) Any person engaged in the business of furnishing rooms in a
21     facility licensed under the Health Care Facility Licensure Act in which
22    rooms,    lodgings,    or    accommodations  are   regularly     furnished    for    a
23     consideration    or    a    facility      operated      by   an   educational      institution
24  established under Chapter 79 or Chapter 85 in which rooms are regularly
25 used to house students for a consideration for periods in excess of
26    thirty days;
27(d) Any person making sales at a flea market, craft show, fair, or
28  similar event when such person does not have a sales tax permit and has
29  arranged       to   pay   sales       taxes    collected        to    the    person    operating,
30  organizing, or promoting such event; or
31(e)    Any   payment     processor       appointed       by   a     retailer   whose   sole
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1    activity with regard to a sale or lease transaction is to process the
2    payment made from the customer to the retailer.
3Sec. 8. Section 77-2701.36, Reissue Revised Statutes of Nebraska, is
4  amended to read:
577-2701.36 Seller includes (1) every person engaged in the business
6    of selling, leasing, or renting property of a kind the gross receipts
7    from the retail sale, lease, or rental of which are required to be
8     included in the measure of the sales tax and (2) every person engaged in
9 the business of providing services the gross receipts from the retail
10     sale of which are required to be included in the measure of the sales
11     tax.
12Sec. 9.       Service means all activities that are engaged in for other
13  persons  for    a        consideration     and   that      involve       predominantly  the
14  performance  of    a    service   as    distinguished      from       selling   or    leasing
15     tangible personal property. The term does not include services rendered
16  by an employee to his or her employer. In determining what is a service,
17    the    intended      use,      principal      objective,   or   ultimate       objective     of     the
18    contracting parties shall not be controlling.
19Sec.    10.       Section   77-2703,     Revised    Statutes      Supplement,        2025,    is
20  amended to read:
2177-2703 (1) There is hereby imposed a tax at the rate provided in
22     section 77-2701.02 upon the gross receipts from all sales of tangible
23 personal property sold at retail in this state; the gross receipts of
24     every    person      engaged       as    a   public   utility,     as    a    community      antenna
25 television service operator, or as a satellite service operator, any
26    person involved in the connecting and installing of the services defined
27    in subdivision (2)(a), (b), (d), or (e) of section 77-2701.16, or every
28    person engaged as a retailer of intellectual or entertainment properties
29    referred to in subsection (3) of section 77-2701.16; the gross receipts
30     from the sale of admissions in this state; the gross receipts from the
31    sale    of    warranties,  guarantees,     service      agreements,      or    maintenance
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1 agreements when the items covered are subject to tax under this section;
2 beginning January 1, 2008, the gross receipts from the sale of bundled
3 transactions when one or more of the products included in the bundle are
4 taxable; the gross receipts from the provision of services in this state
5 defined in subsection (4) of section 77-2701.16; and the gross receipts
6 from     the    sale   of    products       delivered   electronically  as   described     in
7 subsection       (9)   of    section    77-2701.16.      Except      as   provided     in    section
8 77-2701.03, when there is a sale, the tax shall be imposed at the rate in
9 effect at the time the gross receipts are realized under the accounting
10 basis used by the retailer to maintain his or her books and records.
11(a)    The   tax    imposed    by    this    section    shall     be    collected     by   the
12 retailer from the consumer. It shall constitute a part of the purchase
13 price and until collected shall be a debt from the consumer to the
14 retailer and shall be recoverable at law in the same manner as other
15 debts. The tax required to be collected by the retailer from the consumer
16 constitutes a debt owed by the retailer to this state.
17(b) It is unlawful for any retailer to advertise, hold out, or state
18     to the public or to any customer, directly or indirectly, that the tax or
19 part thereof will be assumed or absorbed by the retailer, that it will
20     not be added to the selling, renting, or leasing price of the property
21 sold, rented, or leased, or that, if added, it or any part thereof will
22 be refunded. The provisions of this subdivision shall not apply to a
23 public utility.
24(c)    The   tax    required    to    be    collected   by    the      retailer     from   the
25 purchaser, unless otherwise provided by statute or by rule and regulation
26 of the Tax Commissioner, shall be displayed separately from the list
27 price, the price advertised in the premises, the marked price, or other
28     price on the sales check or other proof of sales, rentals, or leases.
29(d)    For   the    purpose    of    more    efficiently        securing     the    payment,
30     collection, and accounting for the sales tax and for the convenience of
31 the retailer in collecting the sales tax, it shall be the duty of the Tax
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1 Commissioner to provide a schedule or schedules of the amounts to be
2 collected from the consumer or user to effectuate the computation and
3 collection of the tax imposed by the Nebraska Revenue Act of 1967. Such
4 schedule or schedules shall provide that the tax shall be collected from
5 the consumer or user uniformly on sales according to brackets based on
6 sales prices of the item or items. Retailers may compute the tax due on
7 any     transaction       on     an    item    or   an   invoice    basis.     The     rounding        rule
8 provided in section 77-3,117 applies.
9(e) The use of tokens or stamps for the purpose of collecting or
10 enforcing the collection of the taxes imposed in the Nebraska Revenue Act
11 of     1967    or   for   any     other       purpose    in    connection     with     such     taxes   is
12 prohibited.
13(f) For the purpose of the proper administration of the provisions
14     of the Nebraska Revenue Act of 1967 and to prevent evasion of the retail
15 sales tax, it shall be presumed that all gross receipts are subject to
16 the tax until the contrary is established. The burden of proving that a
17 sale of property is not a sale at retail is upon the person who makes the
18     sale unless he or she takes from the purchaser (i) a resale certificate
19 to     the     effect     that    the     property       is    purchased     for     the    purpose      of
20     reselling, leasing, or renting it, (ii) an exemption certificate pursuant
21 to subsection (7) of section 77-2705, or (iii) a direct payment permit
22     pursuant   to   sections  77-2705.01    to       77-2705.03.     Receipt       of   a   resale
23 certificate, exemption certificate, or direct payment permit shall be
24 conclusive proof for the seller that the sale was made for resale or was
25 exempt or that the tax will be paid directly to the state.
26(g)    In   the       rental     or    lease     of    automobiles,     trucks,  trailers,
27 semitrailers,  and    truck-tractors  as    defined   in     the     Motor        Vehicle
28 Registration Act, the tax shall be collected by the lessor on the rental
29 or lease price, except as otherwise provided within this section.
30(h)    In   the       rental     or    lease     of    automobiles,     trucks,  trailers,
31 semitrailers, and truck-tractors as defined in the act, for periods of
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1     one year or more, the lessor may elect not to collect and remit the sales
2  tax on the gross receipts and instead pay a sales tax on the cost of such
3 vehicle. If such election is made, it shall be made pursuant to the
4    following conditions:
5(i) Notice of the desire to make such election shall be filed with
6  the    Tax    Commissioner      and   shall   not     become     effective   until    the   Tax
7    Commissioner     is   satisfied    that    the     taxpayer    has   complied     with   all
8    conditions of this subsection and all rules and regulations of the Tax
9    Commissioner;
10(ii) Such election when made shall continue in force and effect for
11  a period of not less than two years and thereafter until such time as the
12  lessor elects to terminate the election;
13(iii) When such election is made, it shall apply to all vehicles of
14     the lessor rented or leased for periods of one year or more except
15  vehicles to be leased to common or contract carriers who provide to the
16  lessor a valid common or contract carrier exemption certificate. If the
17  lessor rents or leases other vehicles for periods of less than one year,
18  such lessor shall maintain his or her books and records and his or her
19  accounting procedure as the Tax Commissioner prescribes; and
20(iv) The Tax Commissioner by rule and regulation shall prescribe the
21    contents   and   form   of   the   notice     of    election,    a   procedure     for   the
22    determination of the tax base of vehicles which are under an existing
23    lease at the time such election becomes effective, the method and manner
24     for terminating such election, and such other rules and regulations as
25     may be necessary for the proper administration of this subdivision.
26(i) The tax imposed by this section on the sales of motor vehicles,
27 semitrailers, and trailers as defined in sections 60-339, 60-348, and
28    60-354 shall be the liability of the purchaser and, with the exception of
29     motor vehicles, semitrailers, and trailers registered pursuant to section
30  60-3,198, the tax shall be collected by the county treasurer as provided
31  in the Motor Vehicle Registration Act or by an approved licensed dealer
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1     participating   in   the   electronic   dealer   services   system     pursuant   to
2 section 60-1507 at the time the purchaser makes application for the
3    registration of the motor vehicle, semitrailer, or trailer for operation
4    upon the highways of this state. The tax imposed by this section on motor
5    vehicles,   semitrailers,    and   trailers   registered    pursuant    to   section
6     60-3,198 shall be collected by the Department of Motor Vehicles at the
7     time the purchaser makes application for the registration of the motor
8  vehicle, semitrailer, or trailer for operation upon the highways of this
9 state. At the time of the sale of any motor vehicle, semitrailer, or
10     trailer, the seller shall (i) state on the sales invoice the dollar
11     amount of the tax imposed under this section and (ii) furnish to the
12 purchaser a certified statement of the transaction, in such form as the
13    Tax Commissioner prescribes, setting forth as a minimum the total sales
14    price, the allowance for any trade-in, and the difference between the
15     two. The sales tax due shall be computed on the difference between the
16    total sales price and the allowance for any trade-in as disclosed by such
17    certified statement. Any seller who willfully understates the amount upon
18    which the sales tax is due shall be subject to a penalty of one thousand
19    dollars. A copy of such certified statement shall also be furnished to
20     the Tax Commissioner. Any seller who fails or refuses to furnish such
21 certified statement shall be guilty of a misdemeanor and shall, upon
22    conviction thereof, be punished by a fine of not less than twenty-five
23     dollars nor more than one hundred dollars. If the purchaser does not
24    register such motor vehicle, semitrailer, or trailer for operation on the
25     highways of this state within thirty days of the purchase thereof, the
26     tax imposed by this section shall immediately thereafter be paid by the
27  purchaser to the county treasurer or the Department of Motor Vehicles. If
28     the tax is not paid on or before the thirtieth day after its purchase,
29  the county treasurer or Department of Motor Vehicles shall also collect
30  from the purchaser interest from the thirtieth day through the date of
31 payment and sales tax penalties as provided in the Nebraska Revenue Act
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1     of 1967. The county treasurer or Department of Motor Vehicles shall
2    report and remit the tax so collected to the Tax Commissioner by the
3    fifteenth day of the following month. The county treasurer, for his or
4    her collection fee, shall deduct and withhold, from all amounts required
5    to be collected under this subsection, the collection fee permitted to be
6    deducted by any retailer collecting the sales tax, all of which shall be
7    deposited in the county general fund, plus an additional amount equal to
8    one-half of one percent of all amounts in excess of six thousand dollars
9    remitted each month. Prior to January 1, 2023, fifty percent of such
10    additional amount shall be deposited in the county general fund and fifty
11    percent of such additional amount shall be deposited in the county road
12    fund.   On   and   after   January   1,   2023,   seventy-five   percent   of   such
13    additional amount shall be deposited in the county general fund and
14     twenty-five percent of such additional amount shall be deposited in the
15     county road fund. In any county with a population of one hundred fifty
16     thousand inhabitants or more, the county treasurer shall remit one dollar
17     of his or her collection fee for each of the first five thousand motor
18  vehicles, semitrailers, or trailers registered with such county treasurer
19     on or after January 1, 2020, to the State Treasurer for credit to the
20  Department of Revenue Enforcement Fund. The Department of Motor Vehicles,
21  for its collection fee, shall deduct, withhold, and deposit in the Motor
22  Carrier Division Cash Fund the collection fee permitted to be deducted by
23     any retailer collecting the sales tax. The collection fee for the county
24     treasurer or the Department of Motor Vehicles shall be forfeited if the
25    county treasurer or department violates any rule or regulation pertaining
26    to the collection of the use tax.
27(j)(i) The tax imposed by this section on the sale of a motorboat as
28  defined in section 37-1204 shall be the liability of the purchaser. The
29  tax shall be collected by the county treasurer at the time the purchaser
30 makes application for the registration of the motorboat. At the time of
31    the sale of a motorboat, the seller shall (A) state on the sales invoice
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1    the dollar amount of the tax imposed under this section and (B) furnish
2    to the purchaser a certified statement of the transaction, in such form
3    as the Tax Commissioner prescribes, setting forth as a minimum the total
4    sales price, the allowance for any trade-in, and the difference between
5    the two. The sales tax due shall be computed on the difference between
6    the total sales price and the allowance for any trade-in as disclosed by
7    such certified statement. Any seller who willfully understates the amount
8     upon which the sales tax is due shall be subject to a penalty of one
9 thousand  dollars.   A   copy   of    such    certified   statement    shall    also   be
10     furnished to the Tax Commissioner. Any seller who fails or refuses to
11     furnish such certified statement shall be guilty of a misdemeanor and
12  shall, upon conviction thereof, be punished by a fine of not less than
13  twenty-five dollars nor more than one hundred dollars. If the purchaser
14  does not register such motorboat within thirty days of the purchase
15    thereof, the tax imposed by this section shall immediately thereafter be
16    paid by the purchaser to the county treasurer. If the tax is not paid on
17     or before the thirtieth day after its purchase, the county treasurer
18  shall also collect from the purchaser interest from the thirtieth day
19 through the date of payment and sales tax penalties as provided in the
20     Nebraska Revenue Act of 1967. The county treasurer shall report and remit
21  the tax so collected to the Tax Commissioner by the fifteenth day of the
22 following month. The county treasurer, for his or her collection fee,
23     shall deduct and withhold for the use of the county general fund, from
24    all    amounts     required    to    be    collected     under   this     subsection,      the
25     collection fee permitted to be deducted by any retailer collecting the
26     sales tax. The collection fee shall be forfeited if the county treasurer
27     violates any rule or regulation pertaining to the collection of the use
28     tax.
29(ii)   In   the   rental     or    lease   of   motorboats,   the    tax    shall    be
30  collected by the lessor on the rental or lease price.
31(k)(i) The tax imposed by this section on the sale of an all-terrain
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1  vehicle as defined in section 60-103 or a utility-type vehicle as defined
2 in section 60-135.01 shall be the liability of the purchaser. The tax
3    shall be collected by the county treasurer or by an approved licensed
4    dealer participating in the electronic dealer services system pursuant to
5     section 60-1507 at the time the purchaser makes application for the
6  certificate of title for the all-terrain vehicle or utility-type vehicle.
7 At the time of the sale of an all-terrain vehicle or a utility-type
8     vehicle, the seller shall (A) state on the sales invoice the dollar
9  amount of the tax imposed under this section and (B) furnish to the
10  purchaser a certified statement of the transaction, in such form as the
11 Tax Commissioner prescribes, setting forth as a minimum the total sales
12     price, the allowance for any trade-in, and the difference between the
13     two. The sales tax due shall be computed on the difference between the
14  total sales price and the allowance for any trade-in as disclosed by such
15    certified statement. Any seller who willfully understates the amount upon
16    which the sales tax is due shall be subject to a penalty of one thousand
17     dollars. A copy of such certified statement shall also be furnished to
18     the Tax Commissioner. Any seller who fails or refuses to furnish such
19  certified statement shall be guilty of a misdemeanor and shall, upon
20 conviction thereof, be punished by a fine of not less than twenty-five
21     dollars nor more than one hundred dollars. If the purchaser does not
22  obtain a certificate of title for such all-terrain vehicle or utility-
23  type vehicle within thirty days of the purchase thereof, the tax imposed
24  by this section shall immediately thereafter be paid by the purchaser to
25  the county treasurer. If the tax is not paid on or before the thirtieth
26  day after its purchase, the county treasurer shall also collect from the
27  purchaser interest from the thirtieth day through the date of payment and
28  sales tax penalties as provided in the Nebraska Revenue Act of 1967. The
29  county treasurer shall report and remit the tax so collected to the Tax
30  Commissioner by the fifteenth day of the following month. The county
31 treasurer, for his or her collection fee, shall deduct and withhold for
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1     the use of the county general fund, from all amounts required to be
2    collected     under   this    subsection,      the    collection      fee   permitted   to    be
3    deducted by any retailer collecting the sales tax. The collection fee
4    shall    be   forfeited      if   the   county       treasurer    violates     any   rule    or
5    regulation pertaining to the collection of the use tax.
6(ii) In the rental or lease of an all-terrain vehicle or a utility-
7     type vehicle, the tax shall be collected by the lessor on the rental or
8  lease price.
9(iii)      County     treasurers     are     appointed       as   sales    and   use     tax
10    collectors for all sales of all-terrain vehicles or utility-type vehicles
11     made outside of this state to purchasers or users of all-terrain vehicles
12 or utility-type vehicles which are required to have a certificate of
13    title in this state. The county treasurer shall collect the applicable
14     use tax from the purchaser of an all-terrain vehicle or a utility-type
15     vehicle purchased outside of this state at the time application for a
16 certificate of title is made. The full use tax on the purchase price
17    shall be collected by the county treasurer if a sales or occupation tax
18    was not paid by the purchaser in the state of purchase. If a sales or
19    occupation tax was lawfully paid in the state of purchase at a rate less
20     than the tax imposed in this state, use tax must be collected on the
21 difference as a condition for obtaining a certificate of title in this
22    state.
23(l) The Tax Commissioner shall adopt and promulgate necessary rules
24     and regulations for determining the amount subject to the taxes imposed
25     by this section so as to insure that the full amount of any applicable
26     tax is paid in cases in which a sale is made of which a part is subject
27 to the taxes imposed by this section and a part of which is not so
28    subject and a separate accounting is not practical or economical.
29(2) A use tax is hereby imposed on the storage, use, or other
30    consumption in this state of property purchased, leased, or rented from
31     any retailer and on any transaction the gross receipts of which are
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1    subject to tax under subsection (1) of this section on or after June 1,
2    1967, for storage, use, or other consumption in this state at the rate
3    set as provided in subsection (1) of this section on the sales price of
4    the property or, in the case of leases or rentals, of the lease or rental
5    prices.
6(a) Every person storing, using, or otherwise consuming in this
7    state property purchased from a retailer or leased or rented from another
8    person for such purpose shall be liable for the use tax at the rate in
9    effect when his or her liability for the use tax becomes certain under
10    the accounting basis used to maintain his or her books and records. His
11     or her liability shall not be extinguished until the use tax has been
12 paid to this state, except that a receipt from a retailer engaged in
13    business in this state or from a retailer who is authorized by the Tax
14    Commissioner,     under    such   rules   and    regulations        as   he   or    she    may
15    prescribe, to collect the sales tax and who is, for the purposes of the
16    Nebraska Revenue Act of 1967 relating to the sales tax, regarded as a
17    retailer engaged in business in this state, which receipt is given to the
18     purchaser   pursuant      to   subdivision     (b)   of   this    subsection,      shall    be
19  sufficient to relieve the purchaser from further liability for the tax to
20  which the receipt refers.
21(b) Every retailer engaged in business in this state and selling,
22     leasing, or renting property for storage, use, or other consumption in
23     this state shall, at the time of making any sale, collect any tax which
24    may be due from the purchaser and shall give to the purchaser, upon
25    request, a receipt therefor in the manner and form prescribed by the Tax
26    Commissioner.
27(c)     The   Tax   Commissioner,     in    order     to     facilitate   the     proper
28    administration of the use tax, may designate such person or persons as he
29    or she may deem necessary to be use tax collectors and delegate to such
30    persons such authority as is necessary to collect any use tax which is
31    due and payable to the State of Nebraska. The Tax Commissioner may
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1    require of all persons so designated a surety bond in favor of the State
2    of Nebraska to insure against any misappropriation of state funds so
3     collected.      The    Tax   Commissioner    may   require    any   tax   official,    city,
4 county, or state, to collect the use tax on behalf of the state. All
5    persons designated to or required to collect the use tax shall account
6     for such collections in the manner prescribed by the Tax Commissioner.
7     Nothing in this subdivision shall be so construed as to prevent the Tax
8  Commissioner or his or her employees from collecting any use taxes due
9  and payable to the State of Nebraska.
10(d) All persons designated to collect the use tax and all persons
11    required    to    collect      the   use   tax    shall   forward   the   total   of   such
12     collections to the Tax Commissioner at such time and in such manner as
13     the Tax Commissioner may prescribe. Such collectors of the use tax shall
14     deduct and withhold from the amount of taxes collected two and one-half
15    percent    of    the   first    three   thousand    dollars   remitted     each   month   as
16     reimbursement for the cost of collecting the tax. Any such deduction
17     shall be forfeited to the State of Nebraska if such collector violates
18  any rule, regulation, or directive of the Tax Commissioner.
19(e) For the purpose of the proper administration of the Nebraska
20     Revenue Act of 1967 and to prevent evasion of the use tax, it shall be
21    presumed that property sold, leased, or rented by any person for delivery
22     in this state is sold, leased, or rented for storage, use, or other
23  consumption in this state until the contrary is established. The burden
24 of proving the contrary is upon the person who purchases, leases, or
25    rents the property.
26(f) For the purpose of the proper administration of the Nebraska
27    Revenue Act of 1967 and to prevent evasion of the use tax, for the sale
28    of property to an advertising agency which purchases the property as an
29    agent for a disclosed or undisclosed principal, the advertising agency is
30     and remains liable for the sales and use tax on the purchase the same as
31  if the principal had made the purchase directly.
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1Sec. 11. Section 77-2703.01, Revised Statutes Cumulative Supplement,
2    2024, is amended to read:
377-2703.01       (1)    The     determination      of   whether  a    sale   or   use     of
4 property or the provision of services is in this state, in a municipality
5    that has adopted a tax under the Local Option Revenue Act, or in a county
6    that has adopted a tax under section 13-319 or 77-6403 shall be governed
7    by the sourcing rules in sections 77-2703.01 to 77-2703.04.
8(2) When the property or service is received by the purchaser at a
9    business location of the retailer, the sale is sourced to that business
10    location.
11(3) When the property or service is not received by the purchaser at
12    a business location of the retailer, the sale is sourced to the location
13     where receipt by the purchaser or the purchaser's donee, designated as
14    such   by     the   purchaser,  occurs,   including      the       location      indicated        by
15     instructions        for   delivery       to   the    purchaser       or    donee,       known      to   the
16  retailer.
17(4) When subsection (2) or (3) of this section does not apply, the
18    sale    is    sourced     to     the    location     indicated       by    an       address   or    other
19    information for the purchaser that is available from the business records
20     of   the     retailer     that    are    maintained       in   the    ordinary  course      of   the
21    retailer's business when use of this address does not constitute bad
22    faith.
23(5) When subsection (2), (3), or (4) of this section does not apply,
24     the sale is sourced to the location indicated by an address for the
25 purchaser obtained during the consummation of the sale, including the
26    address of a purchaser's payment instrument, if no other address is
27    available, when use of this address does not constitute bad faith.
28(6) When subsection (2), (3), (4), or (5) of this section does not
29     apply,     including      the     circumstance       in   which      the   retailer  is   without
30     sufficient information to apply the rules in any such subsection, then
31  the location will be determined by the address from which property was
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1    shipped, from which the digital good was first available for transmission
2    by the retailer, or from which the service was provided disregarding for
3    these purposes any location that merely provided the digital transfer of
4    the product sold.
5(7) The lease or rental of tangible personal property, other than
6     property identified in subsection (8) or (9) of this section, shall be
7  sourced as follows:
8(a) For a lease or rental that requires recurring periodic payments,
9     the first periodic payment is sourced the same as a retail sale in
10 accordance with the provisions of subsections (2) through (6) of this
11    section.   Periodic     payments   made   subsequent     to   the   first   payment      are
12     sourced to the primary property location for each period covered by the
13    payment.   The   primary     property   location     shall    be   as   indicated   by   an
14    address for the property provided by the lessee that is available to the
15    lessor from its records maintained in the ordinary course of business
16     when use of this address does not constitute bad faith. The property
17     location shall not be altered by intermittent use at different locations,
18     such as use of business property that accompanies employees on business
19     trips and service calls; and
20(b) For a lease or rental that does not require recurring periodic
21    payments, the payment is sourced the same as a retail sale in accordance
22    with the provisions of subsections (2) through (6) of this section.
23This subsection does not affect the imposition or computation of
24     sales or use tax on leases or rentals based on a lump-sum or accelerated
25  basis or on the acquisition of property for lease.
26(8) The lease or rental of motor vehicles, trailers, semitrailers,
27    or   aircraft    that   do   not   qualify     as   transportation      equipment   under
28    subsection (9) of this section shall be sourced as follows:
29(a) For a lease or rental that requires recurring periodic payments,
30     each periodic payment is sourced to the primary property location. The
31    primary property location shall be as indicated by an address for the
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1  property provided by the lessee that is available to the lessor from its
2  records maintained in the ordinary course of business when use of this
3  address does not constitute bad faith. This location shall not be altered
4  by intermittent use at different locations; and
5(b) For a lease or rental that does not require recurring periodic
6  payments, the payment is sourced the same as a retail sale in accordance
7  with the provisions of subsections (2) through (6) of this section.
8This subsection does not affect the imposition or computation of
9    sales or use tax on leases or rentals based on a lump-sum or accelerated
10 basis or on the acquisition of property for lease.
11(9) The retail sale, including lease or rental, of transportation
12  equipment shall be sourced the same as a retail sale in accordance with
13  subsections (2) through (6) of this section. Transportation equipment
14  means any of the following:
15(a) Locomotives and railcars that are utilized for the carriage of
16  persons or property in interstate commerce;
17(b) Trucks and truck-tractors with a gross vehicle weight rating of
18     ten thousand one pounds or greater, trailers, semitrailers, or passenger
19  buses that are (i) registered through the International Registration Plan
20  and     (ii)     operated   under   authority      of   a   carrier   authorized    and
21  certificated by the United States Department of Transportation or another
22 federal authority to engage in the carriage of persons or property in
23    interstate commerce;
24(c) Aircraft operated by air carriers authorized and certificated by
25  the     United    States    Department   of     Transportation   or   another   federal
26    authority or a foreign authority to engage in the carriage of persons or
27    property in interstate or foreign commerce; and
28(d) Containers designed for use on and component parts attached or
29  secured on the items set forth in subdivisions (9)(a) through (c) of this
30  section.
31(10) For purposes of this section, receive and receipt mean taking
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1  possession of tangible personal property, making first use of services,
2  or taking possession or making first use of digital goods, whichever
3    comes first. The terms receive and receipt do not include possession by a
4     shipping company on behalf of the purchaser. For purposes of sourcing
5  detective services subject to tax under subdivision (4)(h) of section
6  77-2701.16, making first use of a service shall be deemed to be at the
7  individual's residence, in the case of a customer who is an individual,
8  or    at   the   principal   place    of    business,   in   the   case   of    a   business
9  customer.
10(11) The sale, not including lease or rental, of a motor vehicle,
11     semitrailer, or trailer as defined in the Motor Vehicle Registration Act
12     shall be sourced to the place of registration of the motor vehicle,
13  semitrailer, or trailer for operation upon the highways of this state or,
14  if no such registration has occurred, the place where such motor vehicle,
15 semitrailer,      or   trailer   is   required    to    be   registered,       except   that
16     beginning January 1, 2021, the sale of any motor vehicle or trailer
17  operated by a public power district and registered under section 60-3,228
18  shall be sourced to the place where the motor vehicle or trailer has
19  situs as defined in section 60-349.
20(12) The sale or lease for one year or more of motorboats shall be
21  sourced to the place of registration of the motorboat. The lease of
22  motorboats for less than one year shall be sourced to the point of
23  delivery.
24Sec. 12. Section 77-2704.03, Reissue Revised Statutes of Nebraska,
25  is amended to read:
2677-2704.03 Until January 1, 2027, sales Sales and use taxes shall
27  not be imposed on the gross receipts from the sale, lease, or rental of
28  and the storage, use, or other consumption in this state of aircraft fuel
29  as defined under Chapter 3, article 1.
30Sec. 13. Section 77-2704.04, Reissue Revised Statutes of Nebraska,
31  is amended to read:
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1     77-2704.04 Until January 1, 2027, sales Sales and use taxes shall
2 not be imposed on the gross receipts from the sale, lease, or rental of
3 and the storage, use, or other consumption in this state of minerals,
4 oil, and gas as defined under Chapter 57.
5     Sec. 14. Section 77-2704.05, Reissue Revised Statutes of Nebraska,
6 is amended to read:
7     77-2704.05 Until January 1, 2027, sales Sales and use taxes shall
8 not be imposed on the gross receipts from the sale, lease, or rental of
9 and the storage, use, or other consumption in this state of motor vehicle
10 fuels as defined, taxed, or exempted under Chapter 66, article 4, diesel
11 fuel as taxed for use on the highways under Chapter 66, article 4,
12 compressed fuels as taxed for use on the highways under the Compressed
13 Fuel Tax Act, diesel and compressed fuels used to provide motive power
14 for railroad rolling stock, and diesel and compressed fuels delivered
15 into the fuel supply tanks of other vehicles.
16     Sec. 15. Section 77-2704.07, Reissue Revised Statutes of Nebraska,
17 is amended to read:
18     77-2704.07 Until January 1, 2027, sales Sales and use taxes shall
19 not be imposed on the gross receipts from the sale, lease, or rental of
20 and the storage, use, or other consumption in this state of any newspaper
21 regularly issued at average intervals not exceeding one week if such
22 newspaper contains matters of general interest and reports of current
23 events.
24     Sec. 16. Section 77-2704.10, Reissue Revised Statutes of Nebraska,
25 is amended to read:
26     77-2704.10 Until January 1, 2027, sales Sales and use taxes shall
27 not be imposed on the gross receipts from the sale, lease, or rental of
28 and the storage, use, or other consumption in this state of:
29     (1) Prepared food and food and food ingredients served by public or
30 private   schools,   school   districts,   student   organizations,   or   parent-
31 teacher associations pursuant to an agreement with the proper school
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1 authorities, in an elementary or secondary school or at any institution
2 of higher education, public or private, during the regular school day or
3 at an approved function of any such school or institution. This exemption
4 does not apply to sales by an institution of higher education at any
5 facility or function which is open to the general public;
6(2) Prepared food and food and food ingredients sold by a church at
7 a function of such church;
8(3) Prepared food and food and food ingredients served to patients
9 and inmates of hospitals and other institutions licensed by the state for
10 the care of human beings;
11(4)   Fees    and    admissions    charged      for    political     events    by   ballot
12 question committees, candidate committees, independent committees, and
13 political       party       committees     as    defined       in   the   Nebraska      Political
14 Accountability and Disclosure Act;
15(5) Prepared food and food and food ingredients sold to the elderly,
16     handicapped,     or     recipients    of     Supplemental       Security    Income      by   an
17 organization that actually accepts electronic benefits transfer under
18 regulations        issued     by    the   United      States    Department     of     Agriculture
19 although it is not necessary for the purchaser to use electronic benefits
20 transfer to pay for the prepared food and food and food ingredients;
21(6) Fees and admissions charged by a public or private elementary or
22 secondary school and fees and admissions charged by a school district,
23 student       organization,        or   parent-teacher        association,     pursuant     to   an
24 agreement with the proper school authorities, in a public or private
25 elementary or secondary school during the regular school day or at an
26 approved function of any such school;
27(7) Fees and admissions charged for participants in any activity
28 provided by a nonprofit organization that is exempt from income tax under
29 section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which
30 organization conducts statewide sport events with multiple sports for
31     both adults and youth; and
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1(8) Fees and admissions charged for participants in any activity
2  provided by a nonprofit organization that is exempt from income tax under
3  section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which
4    organization        is    affiliated       with      a     national       organization,      primarily
5     dedicated to youth development and healthy living, and offers sports
6     instruction and sports leagues or sports events in multiple sports.
7Sec. 17. Section 77-2704.12, Revised Statutes Cumulative Supplement,
8  2024, is amended to read:
977-2704.12 (1) Until January 1, 2027, sales Sales and use taxes
10 shall not be imposed on the gross receipts from the sale, lease, or
11     rental of and the storage, use, or other consumption in this state of
12     purchases     by    (a)    any       nonprofit      organization  created    exclusively     for
13 religious purposes, (b) any nonprofit organization providing services
14    exclusively        to    the     blind,       (c)    any        nonprofit       private   educational
15     institution        established        under     sections  79-1601    to    79-1607,    (d)   any
16     accredited, nonprofit, privately controlled college or university with
17  its primary campus physically located in Nebraska, (e) any nonprofit (i)
18  hospital, (ii) health clinic when one or more hospitals or the parent
19 corporations of the hospitals own or control the health clinic for the
20    purpose of reducing the cost of health services or when the health clinic
21    receives federal funds through the United States Public Health Service
22    for the purpose of serving populations that are medically underserved,
23     (iii) skilled nursing facility, (iv) intermediate care facility, (v)
24  assisted-living facility, (vi) intermediate care facility for persons
25 with    developmental  disabilities,  (vii)       nursing     facility,     (viii)    home
26    health agency, (ix) hospice or hospice service, (x) respite care service,
27     (xi) mental health substance use treatment center licensed under the
28    Health   Care      Facility  Licensure    Act,      or    (xii)     center   for   independent
29     living   as     defined        in     29   U.S.C.        796a,    (f)     any    nonprofit   licensed
30  residential child-caring agency, (g) any nonprofit licensed child-placing
31 agency, (h) any nonprofit organization certified by the Department of
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1  Health and Human Services to provide community-based services for persons
2  with developmental disabilities, (i) any nonprofit organization certified
3  or contracted by a regional behavioral health authority or the Division
4  of Behavioral Health of the Department of Health and Human Services to
5  provide community-based mental health or substance use services, or (j)
6  any      nonprofit        organization    for   purchases    of   property    that    will    be
7  transferred to an organization listed in subdivisions (a) through (i) of
8  this subsection until the property is transferred or the contract is
9  completed, provided that the nonprofit organization (i) acquires property
10  that will be transferred to an organization listed in subdivisions (a)
11  through        (i)   of    this    subsection   or   (ii)    enters    into   a   contract    of
12  construction, improvement, or repair upon property annexed to real estate
13  if       the   property     will    be   transferred    to   an   organization     listed    in
14     subdivisions (a) through (i) of this subsection.
15(2) Any organization listed in subsection (1) of this section shall
16  apply for an exemption on forms provided by the Tax Commissioner. The
17  application shall be approved and a numbered certificate of exemption
18     received by the applicant organization in order to be exempt from the
19  sales and use tax.
20(3) The appointment of purchasing agents shall be recognized for the
21  purpose of altering the status of the construction contractor as the
22     ultimate consumer of building materials which are physically annexed to
23     the    structure       and   which    subsequently   belong    to    the   owner   of     the
24     organization or institution. The appointment of purchasing agents shall
25    be in writing and occur prior to having any building materials annexed to
26     real estate in the construction, improvement, or repair. The contractor
27    who has been appointed as a purchasing agent may apply for a refund of or
28     use as a credit against a future use tax liability the tax paid on
29  inventory items annexed to real estate in the construction, improvement,
30  or repair of a project for a licensed not-for-profit institution.
31(4) Any organization listed in subsection (1) of this section which
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1     enters   into     a    contract      of   construction,     improvement,       or    repair     upon
2     property annexed to real estate without first issuing a purchasing agent
3    authorization  to   a     contractor    or    repairperson   prior   to      the   building
4    materials being annexed to real estate in the project may apply to the
5     Tax Commissioner for a refund of any sales and use tax paid by the
6  contractor or repairperson on the building materials physically annexed
7  to real estate in the construction, improvement, or repair.
8(5) Any person purchasing, storing, using, or otherwise consuming
9    building materials in the performance of any construction, improvement,
10     or repair by or for any institution enumerated in subsection (1) of this
11     section which is licensed upon completion although not licensed at the
12  time of construction or improvement, which building materials are annexed
13    to   real    estate        and    which   subsequently     belong   to   the     owner     of   the
14     institution, shall pay any applicable sales or use tax thereon. Upon
15  becoming licensed and receiving a numbered certificate of exemption, the
16     institution organized not for profit shall be entitled to a refund of the
17    amount      of   taxes      so    paid    in   the    performance   of   such       construction,
18    improvement, or repair and shall submit whatever evidence is required by
19    the Tax Commissioner sufficient to establish the total sales and use tax
20    paid upon the building materials physically annexed to real estate in the
21    construction, improvement, or repair.
22Sec. 18. Section 77-2704.13, Reissue Revised Statutes of Nebraska,
23     is amended to read:
2477-2704.13 Until January 1, 2027, sales Sales and use taxes shall
25    not be imposed on the gross receipts from the sale, lease, or rental of
26    and the storage, use, or other consumption in this state of:
27(1) Sales and purchases of electricity, coal, gas, fuel oil, diesel
28  fuel, tractor fuel, propane, gasoline, coke, nuclear fuel, butane, wood
29 as fuel, and corn as fuel when more than fifty percent of the amount
30    purchased is for use directly in irrigation or farming;
31(2) Sales and purchases of such energy sources or fuels when more
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1  than    fifty    percent     of     the    amount    purchased     is    for   use    directly    in
2  processing, manufacturing, or refining, in the generation of electricity,
3  in the compression of natural gas for retail sale as a vehicle fuel, or
4  by any hospital. For purposes of this subdivision, processing includes
5  the drying and aerating of grain in commercial agricultural facilities;
6  and
7(3) Sales and purchases of water used for irrigation of agricultural
8    lands and manufacturing purposes.
9Sec. 19. Section 77-2704.14, Reissue Revised Statutes of Nebraska,
10  is amended to read:
1177-2704.14 Until January 1, 2027, sales Sales and use taxes shall
12     not be imposed on the gross receipts from the sale, lease, or rental of
13     and the storage, use, or other consumption in this state of the use of
14 coin-operated        machines       used    for   laundering       and   cleaning     except     the
15    cleaning or washing of motor vehicles.
16Sec. 20. Section 77-2704.15, Revised Statutes Cumulative Supplement,
17  2024, is amended to read:
1877-2704.15 (1)(a) Until January 1, 2027, sales Sales and use taxes
19     shall not be imposed on the gross receipts from the sale, lease, or
20  rental of and the storage, use, or other consumption in this state of
21  purchases       by   the    state,        including     public     educational       institutions
22     recognized or established under the provisions of Chapter 85, or by any
23 county,      township,      city,    village,        rural   or    suburban    fire    protection
24     district, city airport authority, county airport authority, joint airport
25 authority, drainage district organized under sections 31-401 to 31-450,
26     sanitary drainage district organized under sections 31-501 to 31-553,
27     land bank created under the Nebraska Municipal Land Bank Act, natural
28  resources       district,    county        agricultural      society,    elected      county    fair
29  board, housing agency as defined in section 71-1575 except for purchases
30  for    any     commercial    operation       that     does   not    exclusively       benefit    the
31    residents    of   an    affordable       housing    project,      cemetery    created       under
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1  section 12-101, or joint entity or agency formed by any combination of
2  two      or   more    counties,        townships,      cities,       villages,       or    other     exempt
3 governmental  units    pursuant       to    the     Interlocal  Cooperation      Act,    the
4     Integrated Solid Waste Management Act, or the Joint Public Agency Act,
5     except for purchases for use in the business of furnishing gas, water,
6  electricity, or heat, or by any irrigation or reclamation district, the
7  irrigation        division     of      any    public      power    and     irrigation      district,     or
8  public schools or learning communities established under Chapter 79.
9(b) For purposes of this subsection, purchases by the state or by a
10  governmental unit listed in subdivision (a) of this subsection include
11  purchases by any nonprofit corporation under a lease-purchase agreement,
12  financing lease, or other instrument which provides for transfer of title
13  to the property to the state or governmental unit upon payment of all
14  amounts       due    thereunder.        If    any   nonprofit       corporation  will   be   making
15     purchases under a lease-purchase agreement, financing lease, or other
16  instrument as part of a project with a total estimated cost that exceeds
17  the threshold amount, then such purchases shall qualify for an exemption
18  under this section only if the question of proceeding with such project
19  has been submitted at a primary, general, or special election held within
20    the   governmental      unit        that   will     be    a     party    to     the    lease-purchase
21    agreement, financing lease, or other instrument and has been approved by
22     the   voters      of   such      governmental  unit     or    the     governmental        unit's
23  expenditure  towards     the    project      is     paid    in     whole    or    in    part   with
24  redevelopment bonds. For purposes of this subdivision, (i) project means
25  the acquisition of real property or the construction of a public building
26  and (ii) threshold amount means the greater of fifty thousand dollars or
27  six-tenths of one percent of the total actual value of real and personal
28  property of the governmental unit that will be a party to the lease-
29  purchase agreement, financing lease, or other instrument as of the end of
30  the governmental unit's prior fiscal year.
31(2) The appointment of purchasing agents shall be recognized for the
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1    purpose of altering the status of the construction contractor as the
2     ultimate consumer of building materials which are physically annexed to
3    the   structure   and   which    subsequently      belong   to     the    state    or    the
4    governmental   unit.    The   appointment    of    purchasing    agents    shall    be    in
5    writing and occur prior to having any building materials annexed to real
6    estate in the construction, improvement, or repair. The contractor who
7    has been appointed as a purchasing agent may apply for a refund of or use
8    as a credit against a future use tax liability the tax paid on inventory
9    items annexed to real estate in the construction, improvement, or repair
10    of a project for the state or a governmental unit.
11(3) Any governmental unit listed in subsection (1) of this section,
12    except   the   state,    which   enters     into    a   contract    of     construction,
13    improvement, or repair upon property annexed to real estate without first
14    issuing a purchasing agent authorization to a contractor or repairperson
15    prior to the building materials being annexed to real estate in the
16     project may apply to the Tax Commissioner for a refund of any sales and
17     use tax paid by the contractor or repairperson on the building materials
18     physically annexed to real estate in the construction, improvement, or
19  repair.
20Sec. 21. Section 77-2704.16, Reissue Revised Statutes of Nebraska,
21    is amended to read:
2277-2704.16 Until January 1, 2027, sales Sales and use taxes shall
23    not be imposed on the gross receipts from the sale, lease, or rental of
24    and the storage, use, or other consumption in this state of purchases
25    made by the Nebraska State Fair Board.
26Sec. 22. Section 77-2704.17, Reissue Revised Statutes of Nebraska,
27    is amended to read:
2877-2704.17 Until January 1, 2027, sales Sales and use taxes shall
29     not be imposed on the gross receipts from the sale, lease, or rental of
30    and the storage, use, or other consumption in this state of purchases
31    made by the Nebraska Investment Finance Authority.
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1Sec. 23. Section 77-2704.20, Revised Statutes Cumulative Supplement,
2    2024, is amended to read:
377-2704.20 Until January 1, 2027, sales Sales and use taxes shall
4  not be imposed on the gross receipts from the sale, lease, or rental of
5 and the storage, use, or other consumption in this state of purchases
6    made by licensees of the State Racing and Gaming Commission.
7Sec. 24. Section 77-2704.22, Reissue Revised Statutes of Nebraska,
8  is amended to read:
977-2704.22 (1) Until January 1, 2027, sales Sales and use taxes
10 shall not be imposed on the gross receipts from the sale, lease, or
11     rental and on the storage, use, or other consumption in this state of
12     manufacturing machinery and equipment.
13(2) Until January 1, 2027, sales Sales and use taxes shall not be
14     imposed on the gross receipts from the sale of installation, repair, and
15  maintenance    services   performed    on    or   with   respect   to   manufacturing
16  machinery and equipment.
17Sec. 25. Section 77-2704.23, Reissue Revised Statutes of Nebraska,
18    is amended to read:
1977-2704.23 Until January 1, 2027, sales Sales and use taxes shall
20  not be imposed on the gross receipts from the sale, lease, or rental of
21 and the storage, use, or other consumption in this state of sales and
22     purchases of semen and insemination services for use in ranching or
23  farming or for commercial or industrial uses.
24Sec. 26. Section 77-2704.24, Reissue Revised Statutes of Nebraska,
25    is amended to read:
2677-2704.24 (1) Sales and use taxes shall not be imposed on the gross
27     receipts from the sale, lease, or rental of and the storage, use, or
28     other consumption in this state of food or food ingredients except for
29  prepared food and food sold through vending machines.
30(2) For purposes of this section:
31(a) Alcoholic beverages means beverages that are suitable for human
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1    consumption and contain one-half of one percent or more of alcohol by
2    volume;
3(b) Candy means a preparation of sugar, honey, or other natural or
4    artificial sweeteners in combination with chocolate, fruits, nuts, or
5    other ingredients or flavorings in the form of bars, drops, or pieces.
6    Candy   does       not    include      any   preparation       that     contains  flour   or   that
7    requires refrigeration;
8(c) (b) Dietary supplement means any product, other than tobacco,
9    intended      to    supplement        the    diet    that     contains       one    or    more   of     the
10     following dietary ingredients: (i) A vitamin, (ii) a mineral, (iii) an
11     herb or other botanical, (iv) an amino acid, (v) a dietary substance for
12    use by humans to supplement the diet by increasing the total dietary
13    intake,    or      (vi)    a    concentrate,        metabolite,       constituent,  extract,      or
14    combination of any ingredients described in subdivisions (2)(c)(i) (2)(b)
15     (i) through (v) of this section; that is intended for ingestion in
16    tablet, capsule, powder, softgel, gelcap, or liquid form or, if not
17    intended for ingestion in such a form, is not presented as conventional
18    food and is not represented for use as a sole item of a meal or of the
19    diet;   and     that      is    required     to     be   labeled   as    a    dietary       supplement,
20    identifiable by the supplemental facts box found on the label and as
21     required pursuant to 21 C.F.R. 101.36, as such regulation existed on
22  January 1, 2003;
23(d)   (c)      Food       and    food   ingredients       means    substances,  whether      in
24  liquid, concentrated, solid, frozen, dried, or dehydrated form, that are
25     sold for ingestion or chewing by humans and are consumed for their taste
26    or   nutritional  value.      Food   and     food     ingredients  does    not   include
27    alcoholic beverages, candy, dietary supplements, soft drinks, or tobacco;
28(e)   (d)      Food       sold    through      vending    machines       means       food   that    is
29    dispensed from a machine or other mechanical device that accepts payment;
30(f) (e) Prepared food means:
31(i) Food sold with eating utensils provided by the seller, including
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1    plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate
2    does not include a container or packaging used to transport the food; or
3(ii) Two or more food ingredients mixed or combined by the seller
4 for sale as a single item and food sold in a heated state or heated by
5    the seller, except:
6(A) Food that is only cut, repackaged, or pasteurized by the seller;
7(B) Eggs, fish, meat, poultry, and foods containing these raw animal
8    foods requiring cooking by the consumer as recommended by the federal
9    Food and Drug Administration in chapter 3, part 401.11 of its Food Code,
10    as it existed on January 1, 2003, so as to prevent food borne illnesses;
11(C)   Food   sold   by   a   seller    whose    proper     primary    North    American
12     Industry Classification System classification is manufacturing in sector
13     311, except subsector 3118, bakeries;
14(D) Food sold in an unheated state by weight or volume as a single
15    item;
16(E) Bakery items, including bread, rolls, buns, biscuits, bagels,
17 croissants,       pastries,     donuts,      danish,     cakes,    tortes,    pies,     tarts,
18    muffins, bars, cookies, and tortillas; and
19(F) Food that ordinarily requires additional cooking to finish the
20    product to its desired final condition; and
21(g) Soft drinks means nonalcoholic beverages that contain natural or
22    artificial    sweeteners.    Soft   drinks     does    not     include    beverages    that
23    contain milk or milk products, soy, rice, or similar milk substitutes or
24 that contain greater than fifty percent of vegetable or fruit juice by
25    volume; and
26(h) (f) Tobacco means cigarettes, cigars, chewing or pipe tobacco,
27     or any other item that contains tobacco.
28Sec. 27. Section 77-2704.25, Reissue Revised Statutes of Nebraska,
29    is amended to read:
3077-2704.25 Until January 1, 2027, sales Sales and use taxes shall
31  not be imposed on the gross receipts from the sale, lease, or rental of
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1    and the storage, use, or other consumption in this state of property sold
2    by   parent-booster   clubs,   parent-teacher   associations,   parent-teacher-
3    student associations, or school-operated stores approved by an elementary
4    or secondary school, public or private, if the proceeds from such sale
5    are used to support school activities or the school itself.
6Sec. 28. Section 77-2704.26, Reissue Revised Statutes of Nebraska,
7  is amended to read:
877-2704.26 Until January 1, 2027, sales Sales and use taxes shall
9     not be imposed on the gross receipts from the sale, lease, or rental of
10     and the storage, use, or other consumption in this state of an aircraft
11 delivered in this state to an individual who is a resident of another
12    state or any other person who has a business location in another state
13    when the aircraft is not to be registered or based in this state and it
14    will not remain in this state more than ten days. Sales and use taxes
15     shall not be imposed on the gross receipts from a service listed in
16 subsection (4) of section 77-2701.16 that is rendered to an aircraft
17     brought into this state by an individual who is a resident of another
18     state or any other person who has a business location in another state
19  when the aircraft is not to be registered or based in this state and it
20 will not remain in this state more than ten days after the service is
21    completed.
22Sec. 29. Section 77-2704.27, Reissue Revised Statutes of Nebraska,
23     is amended to read:
2477-2704.27 Until January 1, 2027, sales Sales and use taxes shall
25    not be imposed on the gross receipts from the sale, lease, or rental of,
26    the service to, and the storage, use, or other consumption in this state
27    of railroad rolling stock whether owned by a railroad or by any other
28    person.
29Sec. 30. Section 77-2704.28, Reissue Revised Statutes of Nebraska,
30    is amended to read:
3177-2704.28 Until January 1, 2027, a A lease of property from a
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1    subsidiary to the parent company, from a parent company to a subsidiary,
2    from one subsidiary to another subsidiary of the same parent company, or
3    between brother-sister companies shall not be subject to the sales and
4    use tax imposed by the Nebraska Revenue Act of 1967 if such property was
5    either    originally    acquired     prior    to   June   1,    1967,   or   if   acquired
6     thereafter,    the     seller   or    transferor     directly      or   indirectly     has
7 previously paid a sales or use tax thereon. Such lessor company shall
8    have the same sales and use tax liability on the purchase of property to
9    be leased to the lessee company as the lessee company would have paid if
10    the lessee company had purchased the property directly.
11Sec. 31. Section 77-2704.30, Reissue Revised Statutes of Nebraska,
12     is amended to read:
1377-2704.30 The use tax imposed in the Nebraska Revenue Act of 1967
14     shall not apply to the : (1) The use in this state of materials and
15    replacement parts which are acquired outside this state and which are
16    moved into this state for use directly in the repair, installation, or
17    application and maintenance or manufacture of motor vehicles, watercraft,
18    railroad rolling stock, whether owned by a railroad or by any person,
19    whether a common or contract carrier or otherwise, or aircraft engaged as
20    common or contract carriers; and (2) The storage, use, or consumption of
21    property which is acquired outside this state, the sale, lease, or rental
22    or the storage, use, or consumption of which property and any associated
23     labor would be exempt from the sales or use tax were it purchased within
24  this state.
25Sec. 32. Section 77-2704.36, Revised Statutes Cumulative Supplement,
26    2024, is amended to read:
2777-2704.36 (1) Until January 1, 2027, sales Sales and use tax shall
28     not be imposed on the gross receipts from the sale, lease, or rental of:
29(a)    Depreciable     agricultural      machinery    and    equipment    purchased,
30    leased, or rented on or after January 1, 1993, for use in commercial
31    agriculture; or
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1(b) Net wrap, baling wire, and twine purchased for use in commercial
2    agriculture.
3(2) For purposes of this section:
4(a)(i) Agricultural machinery and equipment means tangible personal
5  property that is used directly in (A) cultivating or harvesting a crop,
6 (B) raising or caring for animal life, (C) protecting the health and
7     welfare of animal life, including fans, curtains, and climate control
8  equipment within livestock buildings, or (D) collecting or processing an
9     agricultural product on a farm or ranch, regardless of the degree of
10  attachment to any real property; and
11(ii)   Agricultural   machinery   and   equipment   includes,   but   is   not
12  limited to, header trailers, head haulers, header transports, and seed
13  tender trailers and excludes any current tractor model as defined in
14    section 2-2701.01 not permitted for sale in Nebraska pursuant to sections
15    2-2701 to 2-2711;
16(b) Baling wire means wire used in the baling of livestock feed or
17  bedding;
18(c) Net wrap means plastic wrap used in the baling of livestock feed
19  or bedding; and
20(d) Twine means a strong string of two or more strands twisted
21  together used in the baling of livestock feed or bedding.
22Sec. 33. Section 77-2704.38, Reissue Revised Statutes of Nebraska,
23  is amended to read:
2477-2704.38 Until January 1, 2027, sales Sales and use taxes shall
25     not be imposed on the gross receipts from the sale, lease, or rental of
26     and the storage, use, or other consumption in this state of lottery
27  tickets purchased pursuant to the State Lottery Act.
28Sec. 34. Section 77-2704.39, Reissue Revised Statutes of Nebraska,
29     is amended to read:
3077-2704.39 Until January 1, 2027, sales Sales and use taxes shall
31  not be imposed on the gross receipts from the sale, lease, license, or
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1 rental of or the storage, use, or other consumption in this state of
2     personal    property  containing  copyrighted  material     if    the    purchaser,
3  lessee, licensee, or renter is operating under a certificate from the
4  Federal Communications Commission and possesses such personal property
5  for       rebroadcasting  to     the    general  public,     regardless       of    whether      the
6  property       is     in   the        form    of    satellite  transmissions,        films,     records,
7  tapes, discs, or other media.
8Sec. 35. Section 77-2704.40, Reissue Revised Statutes of Nebraska,
9  is amended to read:
1077-2704.40 Until January 1, 2027, sales Sales and use taxes shall
11     not be imposed on the gross receipts from the sale, lease, or rental of
12     and the storage, use, or other consumption in this state of molds, dies,
13     and patterns which have been specifically designed and fabricated to the
14     special    order        of    the     customer.  This     exemption     shall      not       include
15  machinery, equipment, or tools to which molds, dies, and patterns have
16     been    connected       or    attached  in    order    to     be    used   for   their      intended
17  purpose. For purposes of this section, molds, dies, and patterns shall
18  mean       tools    that        are    built       specifically  for    manufacturing  a    single
19  product, which product is either injection molded from plastic or stamped
20  from metals.
21Sec. 36. Section 77-2704.41, Reissue Revised Statutes of Nebraska,
22  is amended to read:
2377-2704.41 (1) Until January 1, 2027, sales Sales and use taxes
24  shall not be imposed on the gross receipts from the sale, lease, or
25  rental of and the storage, use, or other consumption in this state of
26  feed,        water,    veterinary  medicines,  and     agricultural        chemicals        for
27  consumption by, to be used on, or which are otherwise used in caring for
28     any form of animal life of a kind the products of which ordinarily
29  constitute food for human consumption or of a kind the pelts of which
30  ordinarily are used for human apparel.
31(2) For purposes of this section:
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1(a) Agricultural chemicals shall include insecticides, fungicides,
2    growth-regulating chemicals, and hormones;
3(b) Feed shall include all grains, minerals, salts, proteins, fats,
4    fibers, vitamins, and grit commonly used as feed or feed supplements; and
5(c) Veterinary medicines shall include medicines for the prevention
6     or treatment of disease or injury.
7Sec. 37. Section 77-2704.42, Reissue Revised Statutes of Nebraska,
8    is amended to read:
977-2704.42 Until January 1, 2027, sales Sales and use taxes shall
10    not be imposed on the gross receipts from the sale, lease, or rental of
11    and the storage, use, or other consumption in this state of copies of
12    public records as defined in section 84-712.01, except those documents
13    developed, produced, or acquired and made available for commercial sale
14     to the general public if the price or reproduction cost of the document
15     is not fixed by state law, rule, or regulation.
16Sec. 38. Section 77-2704.45, Reissue Revised Statutes of Nebraska,
17    is amended to read:
1877-2704.45 Sales and use taxes shall not be imposed on the gross
19    receipts from the sale, lease, or rental of and the storage, use, or
20    other consumption in this state of property : (1) Property which will
21    enter   into    and   become    an   ingredient     or   component    part   of   property
22    manufactured, processed, or fabricated for ultimate sale at retail. ; or
23(2) A service listed in subsection (4) of section 77-2701.16 which
24    will become an ingredient or component part of a service listed in
25    subsection (4) of section 77-2701.16 for ultimate sale at retail.
26Sec. 39. Section 77-2704.46, Reissue Revised Statutes of Nebraska,
27    is amended to read:
2877-2704.46 Until January 1, 2027, sales Sales and use taxes shall
29    not be imposed on the gross receipts from the sale, lease, or rental of
30    and the storage, use, or other consumption in this state of:
31(1)   Any    form   of     animal   life   of   a    kind   the   products    of    which
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1    ordinarily constitute food for human consumption. Animal life includes
2    live    poultry,     other    species   of      game   birds     subject    to     permit   and
3    regulation by the Game and Parks Commission, and livestock on the hoof
4     when sales are made by the grower, producer, feeder, or any person
5 engaged in the business of bartering, buying, or selling live poultry,
6    other species of game birds subject to permit and regulation by the Game
7    and Parks Commission, or livestock on the hoof;
8(2)   Seeds    and    annual   plants,    the   products     of     which    ordinarily
9    constitute food for human consumption and which seeds and annual plants
10    are sold to commercial producers of such products, and seed legumes, seed
11    grasses,     and     seed    grains   when      sold   to   be    used     exclusively      for
12    agricultural purposes;
13(3) Agricultural chemicals, adjuvants, surfactants, bonding agents,
14     clays, oils, and any other additives or compatibility agents for use in
15     commercial agriculture and applied to land or crops and sold in any tax
16     period that has not been closed by the applicable statute of limitations.
17     Agricultural chemicals does not mean chemicals, adjuvants, surfactants,
18     bonding agents, clays, oils, and any other additives or compatibility
19  agents applied to harvested grains stored in commercial elevators; or
20(4) Oxygen for use in aquaculture as defined in section 2-3804.01.
21Sec. 40. Section 77-2704.47, Reissue Revised Statutes of Nebraska,
22    is amended to read:
2377-2704.47 Until January 1, 2027, sales Sales and use taxes shall
24    not be imposed on the gross receipts from the sale, lease, or rental of
25    and the storage, use, or other consumption in this state of:
26(1) Nonreturnable containers when sold without contents to persons
27  who place contents in the container and sell the contents together with
28  the container;
29(2) Containers when sold with contents if the sales price of the
30    contents is not required to be included in the measure of the taxes
31    imposed by the Nebraska Revenue Act of 1967; and
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1(3) Returnable containers when sold with contents in connection with
2 a retail sale of the contents or when resold for refilling.
3For purposes of this section, returnable containers means containers
4 of a kind customarily returned by the buyer of the contents for reuse.
5 All other containers are nonreturnable containers.
6Sec. 41. Section 77-2704.48, Reissue Revised Statutes of Nebraska,
7     is amended to read:
877-2704.48 Until January 1, 2027, sales Sales and use taxes shall
9 not be imposed on the gross receipts from the sale, lease, or rental of
10 and the storage, use, or other consumption in this state of property or
11 services the transfer of which to the consumer constitutes an occasional
12 sale or the transfer of which to the consumer is made by way of an
13 occasional sale.
14Sec. 42. Section 77-2704.50, Reissue Revised Statutes of Nebraska,
15 is amended to read:
1677-2704.50 Until January 1, 2027, sales Sales and use taxes shall
17 not be imposed on the gross receipts from the sale, lease, or rental of
18 and     the   storage,    use,     or    other   consumption   in   this   state   from   the
19 purchase in this state or the purchase outside this state, with title
20 passing       in   this   state,    of    materials   and   replacement    parts   and    any
21 associated labor used as or used directly in the repair and maintenance
22 or manufacture of railroad rolling stock, whether owned by a railroad or
23 by any person, whether a common or contract carrier or otherwise, motor
24 vehicles, watercraft, or aircraft engaged as common or contract carriers
25 or the purchase in such manner of motor vehicles, watercraft, or aircraft
26 to be used as common or contract carriers. All purchasers seeking to take
27     advantage of the exemption shall apply to the Tax Commissioner for a
28 common or contract carrier exemption. All common or contract carrier
29 exemption certificates shall expire on October 31, 2013, and on October
30 31 every five years thereafter. All persons seeking to continue to take
31 advantage of the common or contract carrier exemption shall apply for a
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1     new certificate at the expiration of the prior certificate. The Tax
2     Commissioner shall notify such exemption certificate holders at least
3 sixty days prior to the expiration date of such certificate that the
4    certificate will expire and be null and void as of such date.
5Sec. 43. Section 77-2704.51, Reissue Revised Statutes of Nebraska,
6  is amended to read:
777-2704.51 Until January 1, 2027, sales Sales and use taxes shall
8    not be imposed on the gross receipts from the sale, lease, or rental of
9    and the storage, use, or other consumption in this state of:
10(1) Telecommunications service between telecommunications companies,
11  including division of revenue, settlements, or carrier access charges; or
12(2)        Dark   fiber     as     defined    in    section    86-574    between
13  telecommunications companies.
14Sec. 44. Section 77-2704.52, Reissue Revised Statutes of Nebraska,
15    is amended to read:
1677-2704.52 Until January 1, 2027, sales Sales and use taxes shall
17    not be imposed on the gross receipts from the sale, lease, or rental of
18     and the storage, use, or other consumption in this state of services
19     rendered using a prepaid calling service or a prepaid wireless calling
20  service.
21Sec. 45. Section 77-2704.53, Reissue Revised Statutes of Nebraska,
22    is amended to read:
2377-2704.53 Until January 1, 2027, sales Sales and use taxes shall
24  not be imposed on the gross receipts from the sale, lease, or rental of
25  and the storage, use, or other consumption in this state from the sale or
26  rental       of    videotape     and    film   rentals,   satellite   programming,   and
27     satellite programming service when the sales tax or the admission tax is
28     charged under the Nebraska Revenue Act of 1967 and except as provided in
29     section 77-2704.39.
30Sec. 46. Section 77-2704.56, Reissue Revised Statutes of Nebraska,
31    is amended to read:
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177-2704.56 Until January 1, 2027, sales Sales and use taxes shall
2 not be imposed on the gross receipts from the sale, lease, or rental of
3     and the storage, use, or other consumption in this state of purchases of
4 property as defined in subdivision (8) of section 51-702 or fine art by
5    any museum as defined in subdivision (6) of section 51-702.
6Sec. 47. Section 77-2704.57, Reissue Revised Statutes of Nebraska,
7    is amended to read:
877-2704.57 (1) Until January 1, 2027, sales Sales and use tax shall
9    not be imposed on the gross receipts from the sale, lease, or rental of
10    personal property for use in a C-BED project or community-based energy
11     development project. This exemption shall be conditioned upon filing
12     requirements for the exemption as imposed by the Tax Commissioner. The
13  requirements imposed by the Tax Commissioner shall be related to ensuring
14    that    the     property    purchased    qualifies     for    the   exemption.     The     Tax
15    Commissioner may require the filing of the documents showing compliance
16    with section 70-1907, the organization of the project, the distribution
17     of the payments, the power purchase agreements, the project pro forma,
18     articles of incorporation, operating agreements, and any amendments or
19  changes       to    these     documents    during   the   life    of   the   power    purchase
20     agreement.
21(2) The Tax Commissioner shall notify an electric supplier that has
22    a power purchase agreement with a C-BED project if there is a change in
23    project ownership which makes the project no longer eligible as a C-BED
24    project. Purchase of a C-BED project by an electric supplier prior to the
25    end of the power purchase agreement disqualifies the C-BED project for
26    the exemption, but the Department of Revenue may not recover the amount
27    of the sales and use tax that was not paid by the project prior to the
28    purchase.
29(3) For purposes of this section, the terms (a) C-BED project or
30    community-based energy development project, (b) electric supplier, (c)
31     gross   power     purchase    agreement    payments,    (d)    payments    to     the    local
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1  community, and (e) qualified owner have the definitions found in section
2  70-1903.
3(4) The Department of Revenue may examine the actual payments and
4  the     distribution       of      the    payments     to    determine       if     the    projected
5  distributions were met. If the payment distributions to qualified owners
6  do not meet the requirements of this section, the department may recover
7  the amount of the sales or use tax that was not paid by the project at
8 any time up until the end of three years after the end of the power
9    purchase agreement.
10(5) At any time prior to the end of the power purchase agreements,
11  the project may voluntarily surrender the exemption granted by the Tax
12  Commissioner and pay the amount of sales and use tax that would otherwise
13  have been due.
14(6) The amount of the tax due under either subsection (4) or (5) of
15     this section shall be increased by interest at the rate specified in
16  section 45-104.02, as such rate may from time to time be adjusted, from
17  the date the tax would have been due if no exemption was granted until
18  the date paid.
19Sec. 48. Section 77-2704.58, Reissue Revised Statutes of Nebraska,
20     is amended to read:
2177-2704.58 Until January 1, 2027, sales Sales and use taxes shall
22  not    be   imposed   on     the    gross       receipts    from   the     sale,    use,   or   other
23 consumption      in   this      state     of    depositions,       bills    of     exceptions,    and
24     transcripts   or   copies       of    such    depositions,      bills    of     exceptions,    and
25  transcripts prepared and sold by a court reporter.
26Sec. 49. Section 77-2704.60, Reissue Revised Statutes of Nebraska,
27    is amended to read:
2877-2704.60 Until January 1, 2027, sales Sales and use taxes shall
29  not be imposed on the gross receipts from the sale, lease, or rental of
30  and the storage, use, or other consumption in this state of mineral oil
31  to be applied to grain as a dust suppressant.
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1Sec. 50. Section 77-2704.61, Reissue Revised Statutes of Nebraska,
2  is amended to read:
377-2704.61 (1) Until January 1, 2027, sales Sales and use taxes
4    shall not be imposed on the gross receipts from the sale, lease, or
5    rental of and the storage, use, or other consumption in this state of
6    biochips used for the purposes of conducting genotyping or the analysis
7    of gene expression, protein expression, genomic sequencing, or protein
8    profiling    of     plants,    animals,     or     nonhuman    laboratory     research      model
9    organisms.
10(2) For purposes of this section, a biochip is a solid substrate
11  upon     or     into     which     is   incorporated       specific        genetic      or   protein
12  information or chemicals that are queried through one or more chemical
13  interactions allowing (a) an isolation of one or more single nucleotide
14 polymorphisms  which     constitute    an     animal     or   plant   genotype,      (b)     an
15     expression profile which measures activity of genes or the presence of
16    proteins, or (c) a detailed genomic sequence or protein profile. The
17     specific genetic or protein information or chemicals incorporated upon or
18  into the biochip are consumed in the process of conducting the analysis.
19Sec. 51. Section 77-2704.62, Reissue Revised Statutes of Nebraska,
20    is amended to read:
2177-2704.62 Until January 1, 2027, sales Sales and use taxes shall
22    not be imposed on the gross receipts from the sale, lease, or rental of
23     and the storage, use, or other consumption in this state of tangible
24     personal property and services acquired by a person operating a data
25  center located in this state that are assembled, engineered, processed,
26 fabricated, manufactured into, attached to, or incorporated into other
27     tangible    personal     property     for    the     purpose       of   subsequent    use    at   a
28  physical location outside this state. Such exemption extends to keeping,
29  retaining, or exercising any right or power over such tangible personal
30  property in this state for the purpose of subsequently transporting it
31  outside this state for use thereafter outside this state.
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1Sec. 52. Section 77-2704.63, Reissue Revised Statutes of Nebraska,
2  is amended to read:
377-2704.63 (1) Until January 1, 2027, sales Sales and use taxes
4     shall not be imposed on the gross receipts from the sale, use, or other
5     consumption of amounts charged to participate in a youth sports event,
6 youth     sports   league,       or     youth      competitive     educational        activity   by
7    political subdivisions or organizations that are exempt from income tax
8    under section 501(c)(3) of the Internal Revenue Code.
9(2) For purposes of this section:
10(a) Competitive educational activity means a tournament or a single
11     competition   that    occurs       over    a    limited    period     of    time   annually   or
12     intermittently where the participants engage in a competitive educational
13     activity;
14(b) Sports event means a tournament or a single competition that
15    occurs over a limited period of time annually or intermittently where the
16    participants engage in a sport;
17(c) Sports league means an organized series of sports competitions
18  taking place over several weeks or months between teams or individuals
19  that are members of the league; and
20(d) Youth sports event, youth sports league, or youth competitive
21    educational   activity       means    an       event,     league,    or    activity    that   is
22    restricted to participants who are less than nineteen years of age.
23Sec. 53. Section 77-2704.64, Reissue Revised Statutes of Nebraska,
24  is amended to read:
2577-2704.64 Until January 1, 2027, sales Sales and use taxes shall
26     not be imposed on the gross receipts from the sale, lease, or rental of
27     and the storage, use, or other consumption in this state of repair or
28 replacement      parts    for     agricultural        machinery        and    equipment   used   in
29    commercial agriculture.
30Sec. 54. Section 77-2704.65, Reissue Revised Statutes of Nebraska,
31  is amended to read:
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177-2704.65 (1) Until January 1, 2027, sales Sales and use taxes
2    shall not be imposed on the gross receipts from the sale, lease, or
3     rental of and the storage, use, or other consumption in this state of
4  purchases by any historic automobile museum of items which are displayed
5 or held for display by such historic automobile museum and which are
6    reasonably related to the general purpose of such historic automobile
7    museum.
8(2) For purposes of this section, historic automobile museum means a
9  museum as defined in section 51-702 that:
10(a) Is used to maintain and exhibit to the public a collection of at
11    least one hundred fifty motor vehicles; and
12(b) Was open to the public an average of four or more hours per week
13    during the previous calendar year.
14(3)   A   museum     in     its   first   year      of   existence     may   qualify       as    a
15     historic automobile museum under this section without complying with
16  subdivision  (2)(b)      of     this   section        if   all   other    requirements  of
17  subsection (2) of this section are met.
18(4) If a museum that has claimed an exemption under this section
19     fails to qualify as a historic automobile museum, such museum shall be
20  subject to a deficiency determination under section 77-2709 and notice of
21    such    deficiency  determination       may    be    served    or    mailed       within    the
22    applicable period provided in subdivision (5)(c) of section 77-2709.
23Sec. 55. Section 77-2704.67, Reissue Revised Statutes of Nebraska,
24  is amended to read:
2577-2704.67 Until January 1, 2027, sales Sales and use taxes shall
26     not be imposed on the gross receipts from the sale, lease, or rental of
27    and the storage, use, or other consumption in this state of any sale of a
28    membership       in   or    an     admission     to   or    any   purchase     by    a    nationally
29     accredited zoo or aquarium operated by a public agency or nonprofit
30     corporation primarily for educational, scientific, or tourism purposes.
31Sec. 56. Section 77-2704.68, Revised Statutes Cumulative Supplement,
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1  2024, is amended to read:
277-2704.68 Until January 1, 2027, sales Sales and use taxes shall
3  not be imposed on the gross receipts from the sale, lease, or rental of
4  and the storage, use, or other consumption in this state of residential
5  water service.
6Sec. 57. Section 77-2704.69, Revised Statutes Cumulative Supplement,
7    2024, is amended to read:
877-2704.69 Until January 1, 2027, sales Sales and use taxes shall
9  not be imposed on the gross receipts from the sale, lease, or rental of
10  and      the   storage,      use,    or   other    consumption   in   this   state    of   all
11  catalysts, chemicals, and materials used in the process of manufacturing
12  ethyl alcohol and the production of coproducts.
13Sec. 58.      Sales and use taxes shall not be imposed on the gross
14  receipts       from    the     following     services    enumerated     in   the     Standard
15     Industrial Classification Manual, 1987, as prepared by the Statistical
16  Policy Division of the Office of Management and Budget, Office of the
17  President: Health services, major group 80.
18Sec. 59. Section 77-2706, Reissue Revised Statutes of Nebraska, is
19     amended to read:
2077-2706 (1) A resale certificate may be given by a purchaser who at
21  the time of purchasing the property intends to sell, lease, or rent it in
22  the regular course of business. A seller making repeated sales of the
23  same type to the same purchaser shall not be required to take a separate
24  resale certificate for each individual sale, but may, at his or her own
25  risk, take a blanket certificate covering all such sales made to the same
26  purchaser.
27(2) The resale certificate shall be on such form and require the
28  furnishing of such information as the Tax Commissioner may require by
29  rule and regulation.
30(3) If a purchaser who gives a resale certificate makes any use of
31    the   property     other   than    retention,     demonstration,    or    display    while
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1    holding it for sale, lease, or rental in the regular course of business,
2     the use shall be taxable to the purchaser as of the time when the
3  property is first so used and the sales price of the property to him or
4  her shall be deemed the measure of the tax.
5(4) Any person who gives a resale certificate to the seller for
6  property which he or she knows, at the time of purchase, is purchased for
7    the purpose of use rather than for the purpose of resale, lease, or
8    rental by him or her in the regular course of business and each officer
9    of any corporation which so gives a resale certificate shall be guilty of
10    a misdemeanor.
11(5) If a purchaser gives a resale certificate with respect to the
12    purchase of tangible goods and thereafter commingles such goods with
13    other tangible goods not so purchased but of such similarity that the
14     identity   of   the   constituent   goods   in   the   commingled   mass    cannot   be
15  determined, sales from the mass of commingled goods shall be deemed to be
16  sales of the goods covered by the resale certificate until a quantity of
17     commingled goods equal to the quantity of such goods so commingled has
18  been sold.
19(6) Until January 1, 2027, any Any person, firm, or corporation
20    engaged in multistate operations and engaged as a common or contract
21    carrier may apply to the Tax Commissioner for an exemption certificate
22    which will permit such person or corporation to make purchases of any
23     nature within this state or without this state and bring such purchases
24     into this state for use both within and without this state, for storage
25    in this state, and when withdrawn from storage to be used within or
26     without the state without paying the sales or use tax thereon, until such
27 articles, materials, or supplies or finished products are placed in use
28    within this state. When such articles, materials, supplies, or finished
29    products are used within this state, a person to whom such exemption
30    certificate has been issued shall, on the last day of the first following
31     month   after    which   such   articles,   materials,     supplies,   or    finished
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1  products are put to use within this state, make a report to the Tax
2     Commissioner as to the amount of use or sales tax, if any, which is due
3  the state and make the payments to the state at the time of making the
4  return. If the Tax Commissioner, after investigation, finds that the
5  applicant maintains satisfactory books of account and that granting such
6  exemption     would      not     result    in    the   evasion      or    avoidance   of      any   tax
7  otherwise properly due, he or she shall issue such exemption certificate.
8  Any person granted such an exemption certificate shall furnish a copy
9  thereof to any vendor from whom purchases are made and such vendor may
10  deliver any such purchases to the holder of any such certificate without
11  collection of any such sales tax. The fee for such exemption certificate
12  shall be ten dollars. The revenue from such fees shall be placed in the
13  General Fund.
14(7) If any person, firm, corporation, association, or the agent
15  thereof presents a resale certificate to the seller for property which is
16  purchased for a use other than for resale, lease, or rental by him or her
17  in the regular course of business, the Tax Commissioner may impose,
18  assess, and collect from the purchaser or the agent thereof a penalty of
19  one hundred dollars or ten times the tax, whichever amount is larger, for
20  each instance of such presentation and misuse of a resale certificate.
21  This    amount     shall    be    in    addition       to   any   tax,    interest,      or   penalty
22  otherwise imposed.
23Any   report,     name,     or     information       which    is    supplied   to      the   Tax
24  Commissioner regarding a violation specified in this section, including
25  the     identity    of     the    informer,       shall     be    subject     to   the     pertinent
26  provisions regarding wrongful disclosure in section 77-2711.
27Sec. 60. Section 77-2706.02, Revised Statutes Supplement, 2025, is
28    amended to read:
2977-2706.02 (1) This section applies on and after July 1, 2026, and
30  until January 1, 2027.
31(2) The appointment of purchasing agents shall be recognized for the
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1     purpose of permitting a construction contractor to purchase materials tax
2 free based on the buyer-based exemption of the contractor's client for
3     items that are physically annexed to the structure and which subsequently
4 belong to the client who is eligible for the buyer-based exemption. The
5    appointment of purchasing agents shall be in writing and occur prior to
6    having any buyer-based tax-exempt items annexed to real estate in the
7    construction,       improvement,     or    repair.   The   contractor       who   has    been
8    appointed as a purchasing agent may purchase the materials tax free or
9    may apply for a refund of or use as a credit against a future use tax
10     liability the tax paid on inventory items annexed to real estate in the
11     construction, improvement, or repair of a project that belongs to the
12  client who is eligible for the buyer-based exemption.
13(3) A client described in subsection (2) of this section which
14 enters     into    a    contract   of   construction,     improvement,     or    repair     with
15    respect to buyer-based tax-exempt items annexed to real estate without
16    first   issuing      a   purchasing       agent   authorization   to    a     construction
17     contractor prior to such items being annexed to real estate in the
18  project may apply to the Tax Commissioner for a refund of any sales and
19  use tax paid by the contractor on such items physically annexed to real
20  estate in the construction, improvement, or repair.
21(4) For purposes of this section, client means a nonprofit entity.
22Sec. 61. Section 77-27,132, Revised Statutes Cumulative Supplement,
23    2024, is amended to read:
2477-27,132 (1) There is hereby created a fund to be designated the
25  Revenue Distribution Fund which shall be set apart and maintained by the
26  Tax Commissioner. Revenue not required to be credited to the General Fund
27  or any other specified fund may be credited to the Revenue Distribution
28  Fund. Credits and refunds of such revenue shall be paid from the Revenue
29  Distribution Fund. The balance of the amount credited, after credits and
30 refunds, shall be allocated as provided by the statutes creating such
31    revenue.
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1(2) The Tax Commissioner shall pay to a depository bank designated
2  by the State Treasurer all amounts collected under the Nebraska Revenue
3  Act of 1967. The Tax Commissioner shall present to the State Treasurer
4 bank receipts showing amounts so deposited in the bank, and of the
5    amounts so deposited the State Treasurer shall:
6(a)(i) For transactions occurring on or after October 1, 2014, and
7 before July 1, 2024, credit to the Game and Parks Commission Capital
8    Maintenance Fund all of the proceeds of the sales and use taxes imposed
9    pursuant to section 77-2703 on the sale or lease of motorboats as defined
10     in section 37-1204, personal watercraft as defined in section 37-1204.01,
11  all-terrain  vehicles     as    defined       in    section     60-103,   and    utility-type
12  vehicles as defined in section 60-135.01; and
13(ii) For transactions occurring on or after July 1, 2024, credit to
14  the       Game   and    Parks      Commission  Capital      Maintenance     Fund    all    of   the
15  proceeds of the sales and use taxes imposed pursuant to section 77-2703
16  on    the     sale     or   lease       of    motorboats      as    defined   in    section      37-1204,
17     personal      watercraft        as    defined        in   section      37-1204.01,       all-terrain
18  vehicles  as   defined      in    section      60-103,      and   utility-type      vehicles     as
19     defined in section 60-135.01, and from such proceeds, transfers shall be
20     made to the Nebraska Emergency Medical System Operations Fund as provided
21     in section 37-327.02;
22(b) Credit to the Highway Trust Fund all of the proceeds of the
23  sales and use taxes derived from the sale or lease for periods of more
24     than    thirty-one       days    of       motor    vehicles,     trailers,      and    semitrailers,
25  except that the proceeds equal to any sales tax rate provided for in
26  section 77-2701.02 that is in excess of five percent derived from the
27    sale or lease for periods of more than thirty-one days of motor vehicles,
28     trailers, and semitrailers shall be credited to the Highway Allocation
29     Fund;
30(c) For transactions occurring on or after July 1, 2013, and before
31  July 1, 2042, of the proceeds of the sales and use taxes derived from
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1  transactions other than those listed in subdivisions (2)(a), (b), and (e)
2  of this section from a sales tax rate of one-quarter of one percent,
3  credit monthly eighty-five percent to the Highway Trust Fund and fifteen
4  percent to the Highway Allocation Fund;
5(d)     Of   the   proceeds    of   the     sales     and    use    taxes   derived     from
6    transactions other than those listed in subdivisions (2)(a), (b), and (e)
7    of this section, credit to the Property Tax Credit Cash Fund the amount
8    certified under section 77-27,237, if any such certification is made; and
9(e) For transactions occurring on or after July 1, 2023, credit to
10  the Department of Transportation Aeronautics Capital Improvement Fund all
11  of the proceeds of the sales and use taxes imposed pursuant to section
12  77-2703 on the sale or lease of aircraft as defined in section 3-101;
13  and .
14(f) For transactions occurring on or after January 1, 2027, credit
15  to the New School Relief Fund an amount equal to the increase in sales
16  and use tax revenue received as a result of the changes made by this
17    legislative bill. The amount to be credited under this subdivision shall
18    be determined annually by the Tax Commissioner on or before July 1.
19The balance of all amounts collected under the Nebraska Revenue Act
20  of 1967 shall be credited to the General Fund.
21Sec. 62. Section 77-27,235, Reissue Revised Statutes of Nebraska, is
22  amended to read:
2377-27,235      (1)   Any    producer      of   electricity  generated   by   a   new
24  renewable electric generation facility shall earn a renewable energy tax
25  credit. For electricity generated on or after July 14, 2006, and before
26  October 1, 2007, the credit shall be .075 cent for each kilowatt-hour of
27  electricity generated by a new renewable electric generation facility.
28    For electricity generated on or after October 1, 2007, and before January
29     1,   2010,    the   credit      shall    be    .1   cent    for    each    kilowatt-hour      of
30  electricity generated by a new renewable electric generation facility.
31     For electricity generated on or after January 1, 2010, and before January
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1  1, 2013, the credit shall be .075 cent per kilowatt-hour for electricity
2  generated  by     a     new    renewable     electric      generation    facility.       For
3  electricity generated on or after January 1, 2013, the credit shall be
4  .05 cent per kilowatt-hour for electricity generated by a new renewable
5  electric generation facility. The credit may be earned for production of
6  electricity for ten years after the date that the facility is placed in
7  operation on or after July 14, 2006.
8(2) For purposes of this section:
9(a) Electricity generated by a new renewable electric generation
10  facility  means       electricity     that    is   exclusively     produced    by   a    new
11  renewable electric generation facility;
12(b) Eligible renewable resources means wind, moving water, solar,
13     geothermal, fuel cell, methane gas, or photovoltaic technology; and
14(c) New renewable electric generation facility means an electrical
15  generating facility located in this state that is first placed into
16     service on or after July 14, 2006, which utilizes eligible renewable
17  resources as its fuel source.
18(3) The credit allowed under this section may be used to reduce the
19 producer's Nebraska income tax liability or to obtain a refund of state
20     sales and use taxes paid by the producer of electricity generated by a
21    new renewable electric generation facility. A claim to use the credit for
22     refund   of    the    state       sales   and    use   taxes   paid,   either     directly   or
23  indirectly,        by    the     producer     may   be    filed   quarterly    for   electricity
24  generated during the previous quarter by the twentieth day of the month
25  following the end of the calendar quarter. The credit may be used to
26  obtain a refund of state sales and use taxes paid during the quarter
27     immediately preceding the quarter in which the claim for refund is made,
28     except that the amount refunded under this subsection shall not exceed
29  the amount of the state sales and use taxes paid during the quarter.
30(4) The Department of Revenue may adopt and promulgate rules and
31    regulations to permit verification of the validity and timeliness of any
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1    renewable energy tax credit claimed.
2(5) The total amount of renewable energy tax credits that may be
3    used by all taxpayers shall be limited to fifty thousand dollars without
4    further authorization from the Legislature.
5(6) The credit allowed under this section may not be claimed by a
6    producer who received a sales tax exemption under section 77-2704.57 for
7    the new renewable electric generation facility.
8(6) (7) Interest shall not be allowed on any refund paid under this
9    section.
10Sec.   63.   Section     77-3442,   Revised    Statutes    Supplement,   2025,   is
11    amended to read:
1277-3442 (1) Property tax levies for the support of local governments
13    for fiscal years beginning on or after July 1, 1998, shall be limited to
14    the amounts set forth in this section except as provided in section
15    77-3444.
16(2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this
17     section, school districts and multiple-district school systems may levy a
18     maximum levy of:
19(i) For fiscal years prior to fiscal year 2027-28, one dollar and
20    five cents per one hundred dollars of taxable valuation of property
21    subject to the levy; .
22(ii) For fiscal year 2027-28, eighty-five cents per one hundred
23     dollars of taxable valuation of property subject to the levy; and
24(iii) For fiscal year 2028-29 and each fiscal year thereafter, sixty
25    cents per one hundred dollars of taxable valuation of property subject to
26    the levy.
27(b) For each fiscal year prior to fiscal year 2017-18, learning
28    communities may levy a maximum levy for the general fund budgets of
29    member school districts of ninety-five cents per one hundred dollars of
30    taxable valuation of property subject to the levy. The proceeds from the
31    levy   pursuant     to   this    subdivision      shall   be   distributed   pursuant   to
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1 section 79-1073.
2(c) Except as provided in subdivision (2)(e) of this section, for
3 each fiscal year prior to fiscal year 2017-18, school districts that are
4 members of learning communities may levy for purposes of such districts'
5 general fund budget and special building funds a maximum combined levy of
6     the difference of one dollar and five cents on each one hundred dollars
7 of taxable property subject to the levy minus the learning community levy
8     pursuant    to   subdivision    (2)(b)      of    this   section    for      such    learning
9 community.
10(d) Excluded from the limitations in subdivisions (2)(a) and (2)(c)
11 of this section are (i) amounts levied to pay for current and future sums
12     agreed to be paid by a school district to certificated employees in
13 exchange for a voluntary termination of employment occurring prior to
14 September 1, 2017, (ii) amounts levied by a school district otherwise at
15 the maximum levy pursuant to subdivision (2)(a) of this section to pay
16     for current and future qualified voluntary termination incentives for
17 certificated teachers pursuant to subsection (3) of section 79-8,142 that
18     are not otherwise included in an exclusion pursuant to subdivision (2)(d)
19     of this section, (iii) amounts levied by a school district otherwise at
20     the maximum levy pursuant to subdivision (2)(a) of this section to pay
21 for seventy-five percent of the current and future sums agreed to be paid
22     to certificated employees in exchange for a voluntary termination of
23 employment occurring between September 1, 2017, and August 31, 2018, as a
24 result     of    a   collective-bargaining  agreement   in   force   and       effect   on
25 September       1,   2017,   that   are   not    otherwise       included   in    an    exclusion
26 pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a
27 school district otherwise at the maximum levy pursuant to subdivision (2)
28 (a) of this section to pay for fifty percent of the current and future
29 sums agreed to be paid to certificated employees in exchange for a
30     voluntary termination of employment occurring between September 1, 2018,
31     and August 31, 2019, as a result of a collective-bargaining agreement in
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1     force and effect on September 1, 2017, that are not otherwise included in
2  an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts
3 levied by a school district otherwise at the maximum levy pursuant to
4    subdivision (2)(a) of this section to pay for twenty-five percent of the
5    current and future sums agreed to be paid to certificated employees in
6     exchange for a voluntary termination of employment occurring between
7 September 1, 2019, and August 31, 2020, as a result of a collective-
8    bargaining agreement in force and effect on September 1, 2017, that are
9    not otherwise included in an exclusion pursuant to subdivision (2)(d) of
10    this section, (vi) amounts levied in compliance with sections 79-10,110
11     and 79-10,110.02, (vii) amounts levied pursuant to section 71 of this
12     act, and (viii) (vii) amounts levied to pay for special building funds
13  and sinking funds established for projects commenced prior to April 1,
14 1996,    for   construction,     expansion,    or   alteration       of   school    district
15    buildings. For purposes of this subsection, commenced means any action
16    taken by the school board on the record which commits the board to expend
17    district funds in planning, constructing, or carrying out the project.
18(e)   Federal     aid   school   districts    may    exceed    the   maximum        levy
19     prescribed by subdivision (2)(a) or (2)(c) of this section only to the
20     extent necessary to qualify to receive federal aid pursuant to Title VIII
21     of Public Law 103-382, as such title existed on September 1, 2001. For
22 purposes     of   this   subdivision,    federal    aid    school    district      means    any
23     school district which receives ten percent or more of the revenue for its
24 general fund budget from federal government sources pursuant to Title
25    VIII of Public Law 103-382, as such title existed on September 1, 2001.
26(f) For each fiscal year, learning communities may levy a maximum
27 levy of one-half cent on each one hundred dollars of taxable property
28    subject to the levy for elementary learning center facility leases, for
29    remodeling of leased elementary learning center facilities, and for up to
30    fifty percent of the estimated cost for focus school or program capital
31     projects approved by the learning community coordinating council pursuant
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1  to section 79-2111.
2(g) For each fiscal year, learning communities may levy a maximum
3  levy of one and one-half cents on each one hundred dollars of taxable
4  property subject to the levy for early childhood education programs for
5  children        in    poverty,       for    elementary       learning  center     employees,       for
6  contracts with other entities or individuals who are not employees of the
7    learning community for elementary learning center programs and services,
8     and for pilot projects, except that no more than ten percent of such levy
9  may be used for elementary learning center employees.
10(3) For each fiscal year through fiscal year 2023-24, community
11  college areas may levy the levies provided in subdivisions (2)(a) through
12  (c)      of    section    85-1517,  in    accordance      with     the    provisions        of    such
13  subdivisions. For fiscal year 2024-25 and each fiscal year thereafter,
14  community college areas may levy the levies provided in subdivisions (2)
15  (a) and (b) of section 85-1517, in accordance with the provisions of such
16  subdivisions. A community college area may exceed the levy provided in
17  subdivision (2)(a) of section 85-1517 by the amount necessary to generate
18  sufficient  revenue    as       described    in     section      85-1543        or    85-2238.     A
19    community college area may exceed the levy provided in subdivision (2)(b)
20     of section 85-1517 by the amount necessary to retire general obligation
21     bonds assumed by the community college area or issued pursuant to section
22  85-1515 according to the terms of such bonds or for any obligation
23  pursuant to section 85-1535 entered into prior to January 1, 1997.
24(4)(a) Natural resources districts may levy a maximum levy of four
25     and   one-half      cents       per    one    hundred    dollars      of     taxable       valuation    of
26  property subject to the levy.
27(b)   Natural        resources  districts    shall    also      have     the     power    and
28  authority        to    levy    a    tax    equal     to    the   dollar       amount   by      which    their
29  restricted        funds       budgeted      to     administer      and    implement  ground    water
30  management        activities  and    integrated       management        activities        under    the
31 Nebraska        Ground     Water  Management        and   Protection        Act      exceed      their
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1     restricted    funds       budgeted     to    administer      and    implement   ground     water
2  management activities and integrated management activities for FY2003-04,
3     not to exceed one cent on each one hundred dollars of taxable valuation
4     annually on all of the taxable property within the district.
5(c) In addition, natural resources districts located in a river
6    basin,     subbasin,      or   reach    that        has   been     determined   to   be    fully
7    appropriated pursuant to section 46-714 or designated as overappropriated
8    pursuant to section 46-713 by the Chief Water Officer of the Department
9    of Water, Energy, and Environment shall also have the power and authority
10    to levy a tax equal to the dollar amount by which their restricted funds
11    budgeted to administer and implement ground water management activities
12     and integrated management activities under the Nebraska Ground Water
13     Management and Protection Act exceed their restricted funds budgeted to
14  administer        and     implement       ground        water    management     activities        and
15    integrated management activities for FY2005-06, not to exceed three cents
16     on each one hundred dollars of taxable valuation on all of the taxable
17     property within the district for fiscal year 2006-07 and each fiscal year
18     thereafter through fiscal year 2017-18.
19(5) Any educational service unit authorized to levy a property tax
20    pursuant to section 79-1225 may levy a maximum levy of one and one-half
21    cents per one hundred dollars of taxable valuation of property subject to
22    the levy.
23(6)(a) Incorporated cities and villages which are not within the
24 boundaries of a municipal county may levy a maximum levy of forty-five
25    cents per one hundred dollars of taxable valuation of property subject to
26     the levy plus an additional five cents per one hundred dollars of taxable
27    valuation to provide financing for the municipality's share of revenue
28    required    under    an    agreement        or   agreements      executed   pursuant      to   the
29     Interlocal Cooperation Act or the Joint Public Agency Act. The maximum
30     levy shall include amounts levied to pay for sums to support a library
31  pursuant to section 51-201, museum pursuant to section 51-501, visiting
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1    community nurse, home health nurse, or home health agency pursuant to
2     section 71-1637, or statue, memorial, or monument pursuant to section
3  80-202.
4(b) Incorporated cities and villages which are within the boundaries
5    of a municipal county may levy a maximum levy of ninety cents per one
6    hundred dollars of taxable valuation of property subject to the levy. The
7    maximum levy shall include amounts paid to a municipal county for county
8    services, amounts levied to pay for sums to support a library pursuant to
9    section 51-201, a museum pursuant to section 51-501, a visiting community
10    nurse, home health nurse, or home health agency pursuant to section
11    71-1637, or a statue, memorial, or monument pursuant to section 80-202.
12(7) Sanitary and improvement districts which have been in existence
13 for more than five years may levy a maximum levy of forty cents per one
14     hundred dollars of taxable valuation of property subject to the levy, and
15  sanitary and improvement districts which have been in existence for five
16  years or less shall not have a maximum levy. Unconsolidated sanitary and
17 improvement districts which have been in existence for more than five
18    years and are located in a municipal county may levy a maximum of eighty-
19    five cents per hundred dollars of taxable valuation of property subject
20    to the levy.
21(8) Counties may levy or authorize a maximum levy of fifty cents per
22    one hundred dollars of taxable valuation of property subject to the levy,
23    except that five cents per one hundred dollars of taxable valuation of
24    property subject to the levy may only be levied to provide financing for
25    the county's share of revenue required under an agreement or agreements
26    executed pursuant to the Interlocal Cooperation Act or the Joint Public
27    Agency Act. The maximum levy shall include amounts levied to pay for sums
28     to support a library pursuant to section 51-201 or museum pursuant to
29    section 51-501. The county may allocate up to fifteen cents of its
30     authority   to   other   political   subdivisions   subject   to   allocation   of
31 property tax authority under subsection (1) of section 77-3443 and not
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1  specifically covered in this section to levy taxes as authorized by law
2  which do not collectively exceed fifteen cents per one hundred dollars of
3  taxable valuation on any parcel or item of taxable property. The county
4  may allocate to one or more other political subdivisions subject to
5     allocation of property tax authority by the county under subsection (1)
6  of section 77-3443 some or all of the county's five cents per one hundred
7    dollars of valuation authorized for support of an agreement or agreements
8    to be levied by the political subdivision for the purpose of supporting
9     that political subdivision's share of revenue required under an agreement
10  or agreements executed pursuant to the Interlocal Cooperation Act or the
11  Joint Public Agency Act. If an allocation by a county would cause another
12  county to exceed its levy authority under this section, the second county
13  may exceed the levy authority in order to levy the amount allocated.
14(9) Municipal counties may levy or authorize a maximum levy of one
15     dollar per one hundred dollars of taxable valuation of property subject
16  to the levy. The municipal county may allocate levy authority to any
17  political      subdivision    or    entity   subject   to    allocation     under   section
18     77-3443.
19(10) Beginning July 1, 2016, rural and suburban fire protection
20     districts may levy a maximum levy of ten and one-half cents per one
21  hundred dollars of taxable valuation of property subject to the levy if
22  (a) such district is located in a county that had a levy pursuant to
23  subsection (8) of this section in the previous year of at least forty
24    cents per one hundred dollars of taxable valuation of property subject to
25     the levy or (b) such district had a levy request pursuant to section
26  77-3443 in any of the three previous years and the county board of the
27  county in which the greatest portion of the valuation of such district is
28  located did not authorize any levy authority to such district in such
29  year.
30(11) A regional metropolitan transit authority may levy a maximum
31  levy    of    ten   cents   per    one   hundred   dollars   of   taxable    valuation   of
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1    property subject to the levy for each fiscal year that commences on the
2    January 1 that follows the effective date of the conversion of the
3    transit authority established under the Transit Authority Law into the
4    regional metropolitan transit authority.
5(12) Property tax levies (a) for judgments, except judgments or
6    orders from the Commission of Industrial Relations, obtained against a
7    political subdivision which require or obligate a political subdivision
8    to   pay   such     judgment,    to    the     extent      such    judgment        is   not    paid   by
9    liability     insurance       coverage        of     a   political  subdivision,       (b)     for
10     preexisting lease-purchase contracts approved prior to July 1, 1998, (c)
11    for bonds as defined in section 10-134 approved according to law and
12    secured by a levy on property except as provided in section 44-4317 for
13     bonded     indebtedness       issued    by     educational        service      units     and       school
14     districts, (d) for payments by a public airport to retire interest-free
15    loans      from     the   Division       of        Aeronautics        of     the    Department  of
16    Transportation in lieu of bonded indebtedness at a lower cost to the
17    public airport, and (e) to pay for cancer benefits provided on or after
18    January 1, 2022, pursuant to the Firefighter Cancer Benefits Act are not
19    included in the levy limits established by this section.
20(13) The limitations on tax levies provided in this section are to
21    include      all    other     general        or     special       levies      provided        by     law.
22    Notwithstanding       other     provisions  of    law,   the   only    exceptions        to    the
23     limits in this section are those provided by or authorized by sections
24     77-3442 to 77-3444.
25(14) Tax levies in excess of the limitations in this section shall
26    be considered unauthorized levies under section 77-1606 unless approved
27    under section 77-3444.
28(15)    For    purposes     of     sections  77-3442      to     77-3444,        political
29    subdivision means a political subdivision of this state and a county
30    agricultural society.
31(16) For school districts that file a binding resolution on or
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1    before May 9, 2008, with the county assessors, county clerks, and county
2    treasurers for all counties in which the school district has territory
3    pursuant to subsection (7) of section 79-458, if the combined levies,
4    except levies for bonded indebtedness approved by the voters of the
5    school     district     and    levies     for     the   refinancing      of    such      bonded
6    indebtedness, are in excess of the greater of (a) one dollar and twenty
7    cents per one hundred dollars of taxable valuation of property subject to
8    the levy or (b) the maximum levy authorized by a vote pursuant to section
9    77-3444,     all   school       district      levies,     except    levies  for   bonded
10    indebtedness approved by the voters of the school district and levies for
11     the   refinancing       of    such   bonded      indebtedness,     shall      be    considered
12     unauthorized levies under section 77-1606.
13Sec.   64.   Section     77-4403,    Revised      Statutes   Supplement,       2025,   is
14    amended to read:
1577-4403 For purposes of the Good Life Transformational Projects Act:
16(1) Additional good life district retailer means a for-profit, as
17    described in subdivision (8)(c) of this section, retailer that opens a
18    new location in a good life district, has retail space at the time the
19    good life district was established within the good life district or
20    within forty miles of the district, and maintains the new location within
21    the good life district plus all locations existing at the time the good
22    life district was established within the good life district or within
23     forty miles of the district for three years from the date when the
24     additional good life district retailer first located within the good life
25    district. If the number of locations within the good life district or
26    within forty miles of the district falls below the number required to be
27    an additional good life district retailer but is at least equal to the
28    number that existed at the time the good life district was established
29    within three years, such retailer shall qualify as a relocated good life
30    district     retailer    subject     to    the    restrictions     and     requirements      of
31    subdivision (14) of this section. The term includes a related person;
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1(2) Controlling property rights means, with respect to real estate
2  in a good life district, the authority of a good life district applicant
3  or project area applicant to manage and control the development of real
4  estate, including through direct ownership or through leasehold rights,
5  joint ventures, purchase contracts, restrictive covenants, or any other
6  similar arrangement. Whenever such property rights do not include direct
7  ownership, the good life district applicant or project area applicant
8 shall not be considered to have controlling property rights unless such
9    applicant has submitted to the department a waiver and acknowledgment
10     from   the   property   owner   that   (a)    the   owner   consents   to   his   or   her
11  property being included in the project area, (b) the owner acknowledges
12  that the applicant or city, as applicable, will have certain rights with
13  respect to how local sources of revenue from the owner's property will be
14  spent or allocated, and (c) the owner is waiving any and all rights with
15  respect to all such revenues for the duration of the good life district
16  and that such waiver will apply to all subsequent owners of the property;
17(3) Department means the Department of Economic Development;
18(4) Enhanced employment area good life district retailer means (a) a
19    retailer located within an enhanced employment area designated for a city
20    of the metropolitan class under the Community Development Law and within
21    a good life district who has opted to be a good life district retailer
22     and (b) any related person. A tenant of a good life district applicant
23     who has a development agreement with a city of the metropolitan class for
24    occupation tax in an enhanced employment area within a good life district
25    shall be deemed to have opted to be a good life district retailer;
26(5) Good life district means a district established pursuant to
27    section 77-4405;
28(6) Good life district applicant means (a) the person who applies
29  for the applicable good life district pursuant to section 77-4404 and (b)
30  any related person;
31(7) Good life district retailer means a retailer with taxable sales
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1    that is located in a good life district. The term includes a related
2    person;
3(8)(a) New business means (i) a new-to-market sales tax collecting
4    business that was not legally licensed and located within the good life
5    district or within forty miles of the good life district prior to the
6    creation of such district and (ii) any related person.
7(b) New business does not include the residential portion of any
8    business.
9(c)(i) New business does not include the location of any entity that
10    for purposes of the Nebraska Revenue Act of 1967 is either (A) not
11    subject to sales and use taxes or (B) not subject to either an income tax
12    or a franchise tax under sections 77-3801 to 77-3807 , except that a
13    location owned by a political subdivision shall be allowed to the extent
14     that the political subdivision is liable for sales taxes pursuant to
15     subsection (12) of section 77-4405.
16(ii) For purposes of this subdivision (c):
17(A) Political subdivision includes any public corporation created
18     for the benefit of a political subdivision and any group of political
19    subdivisions   forming   a   joint   public   agency,   organized   by   interlocal
20    agreement, or utilizing any other method of joint action; and
21(B) Any partnership that would be liable for an income tax if it
22 were to make an election under subsection (6) of section 77-2727 is
23    subject to an income tax.
24(d) The following transactions or activities shall not be considered
25     to have created a new business:
26(i) The acquisition of a business that (A) does not qualify as a new
27    business, (B) is continued by the purchaser, and (C) was operated within
28    the good life district during the three hundred sixty-six days prior to
29    the date of acquisition;
30(ii) The acquisition of a business that (A) does not qualify as a
31    new business, (B) is continued by the purchaser, and (C) was operated
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1  within this state and within forty miles of the good life district during
2  the three hundred sixty-six days prior to the date of acquisition;
3(iii) The moving of a business from a location within this state and
4    within forty miles of the good life district into the good life district;
5    or
6(iv) Any purchase or lease of property from a related person;
7(9)(a)   New     development   costs    means   development     costs     that    are
8    incurred as part of a project located in a good life district.
9(b) The value of the new development costs for any project shall be
10  equal to the construction and improvement costs of real property and the
11  acquisition costs of personal property that are part of such project,
12  including:
13(i) Improvements to real property located in the good life district;
14(ii) New construction of and additions to existing buildings;
15(iii) Construction and acquisition of infrastructure improvements in
16    and related to the good life district; and
17(iv) Acquisition of personal property located and used in the good
18  life district.
19(c) The following transactions or activities shall not be considered
20    new development costs:
21(i) The acquisition of a business that (A) does not qualify as a new
22     business, (B) is continued by the purchaser, and (C) was operated within
23     the good life district during the three hundred sixty-six days prior to
24  the date of acquisition; or
25(ii) The acquisition of a business that (A) does not qualify as a
26     new business, (B) is continued by the purchaser, and (C) was operated
27    within this state and within forty miles of the good life district during
28    the three hundred sixty-six days prior to the date of acquisition;
29(10) Project area means an area designated as a project within a
30  good life district pursuant to subsection (13) (14) of section 77-4405;
31(11)   Project    area   applicant     means   (a)   the   person   who   files   an
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1    application for a project area designation pursuant to subsection (13)
2    (14) of section 77-4405 and (b) any related person;
3(12) Qualified inland port district means an inland port district
4    created pursuant to the Municipal Inland Port Authority Act that is
5    located within a city of the metropolitan class;
6(13) Related persons means any corporations, partnerships, limited
7    liability companies, or joint ventures which are or would otherwise be
8    members of the same unitary group, if incorporated, or any persons who
9    are considered to be related persons under either section 267(b) and (c)
10    or section 707(b) of the Internal Revenue Code of 1986, as amended;
11(14) Relocated good life district retailer means (a) a retailer that
12    relocates to a good life district and that has less than one hundred
13    thousand square feet of retail space at the time the good life district
14    was established for any single location that is outside of the good life
15    district but located within forty miles of the good life district with no
16    location being equal to or greater than one hundred thousand square feet
17    and (b) any related person. After ten years from the date when the
18    relocated good life district retailer first located within the good life
19     district or exceeded one hundred thousand square feet of retail space,
20     such retailer shall no longer qualify as a relocated good life district
21  retailer; and
22(15)      Viable   development      means     the    proposed    development     is
23    demonstrated to be not inconsistent with the statutory requirements of
24    the good life district where the project is located.
25Sec.    65.   Section   77-4405,   Revised     Statutes    Supplement,   2025,   is
26    amended to read:
2777-4405 (1) If the department finds that creation of the good life
28 district would not exceed the limits prescribed in subsection (4) of
29    section 77-4404 and the project described in the application meets the
30    eligibility    requirements   of   this       section,   the   application   shall   be
31    approved.
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1(2) A project is eligible if:
2(a) The good life district applicant demonstrates that the total new
3    development costs of the project will exceed:
4(i) One billion dollars if the project will be located in a city of
5    the metropolitan class;
6(ii) Seven hundred fifty million dollars if the project will be
7  located in a city of the primary class;
8(iii) Five hundred million dollars if the project will be located in
9    a city of the first class, city of the second class, or village within a
10    county with a population of one hundred thousand inhabitants or more; or
11(iv) One hundred million dollars if the project will be located in a
12     city of the first class, city of the second class, village, or sanitary
13     and improvement district within a county with a population of less than
14     one hundred thousand inhabitants;
15(b) The good life district applicant demonstrates that the project
16    will directly or indirectly result in the creation of:
17(i) One thousand new jobs if the project will be located in a city
18  of the metropolitan class;
19(ii) Five hundred new jobs if the project will be located in a city
20    of the primary class;
21(iii) Two hundred fifty new jobs if the project will be located in a
22     city of the first class, city of the second class, or village within a
23  county with a population of one hundred thousand inhabitants or more; or
24(iv) Fifty new jobs if the project will be located in a city of the
25    first   class,   city    of   the    second   class,     village,     or    sanitary   and
26    improvement district within a county with a population of less than one
27    hundred thousand inhabitants; and
28(c)(i)   For   a    project     that   will   be   located   in   a    county   with   a
29     population of one hundred thousand inhabitants or more, the good life
30     district applicant demonstrates that, upon completion of the project, at
31     least twenty percent of sales at the project will be made to persons
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1    residing outside the State of Nebraska or the project will generate a
2    minimum of six hundred thousand visitors per year who reside outside the
3    State of Nebraska and the project will attract new-to-market retail to
4    the state and will generate a minimum of three million visitors per year
5     in total. Students from another state who attend a Nebraska public or
6 private university shall not be counted as out-of-state residents for
7    purposes of this subdivision; or
8(ii)   For   a   project      that    will     be    located      in    a     county   with    a
9    population of less than one hundred thousand inhabitants, the good life
10    district applicant demonstrates that, upon completion of the project, at
11     least twenty percent of sales at the project will be made to persons
12  residing outside the State of Nebraska. Students from another state who
13 attend a Nebraska public or private university shall not be counted as
14    out-of-state residents for purposes of this subdivision.
15(3)    The   good   life      district       applicant       must      certify      that     any
16    anticipated    diversion     of   state    sales    tax    revenue  will    be   offset    or
17    exceeded by sales tax paid on anticipated development costs, including
18    construction to real property, during the same period.
19(4)    Beginning    on    June   5,    2025,        before   an     application        may    be
20    approved, the good life district applicant shall submit a report to the
21     department and to any city or village that will include the good life
22     district. Such report shall:
23(a) Provide evidence satisfactory to the department and such city or
24    village that such applicant has sufficient financing for the project and
25    the project is financially viable;
26(b) Provide evidence that such applicant has land ownership within
27     the proposed boundaries of the good life district or a contract giving
28  the applicant an option to purchase land within the proposed boundaries
29 of the good life district within one hundred eighty days of contract
30    signing; and
31(c) Provide information regarding any ownership interest held by
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1    such applicant in any existing retail business within the proposed good
2    life district.
3(5) A project is not eligible if:
4(a)    The    project     includes      a   licensed        racetrack      enclosure        or    an
5    authorized gaming operator as such terms are defined in section 9-1103,
6    except       that   this   subdivision  shall    not       apply    to    infrastructure  or
7     facilities      that     are   (i)   publicly  owned   or    (ii)       used   by   or     at    the
8  direction of the Nebraska State Fair Board, so long as no gaming devices
9  or games of chance are expected to be operated by an authorized gaming
10  operator within any such facilities;
11(b) The project received funds pursuant to the Shovel-Ready Capital
12     Recovery and Investment Act or the Economic Recovery Act, except that
13     this subdivision shall not apply to any project located in a qualified
14  inland port district; or
15(c)    The    project     includes       any    portion      of     a    public     or    private
16    university.
17(6) Approval of an application under this section shall establish
18     the good life district as that area depicted in the map accompanying the
19    application  as   submitted      pursuant      to    subdivision  (1)(b)     of    section
20    77-4404 or, for any application approved on or after June 5, 2025, the
21     map as approved by the department. Such district shall last for thirty
22    years and shall not exceed two thousand acres in size if in a city of the
23    metropolitan class, three thousand acres in size if in any other class of
24    city    or    village,     or,    for    any    good       life    district      created        within    a
25    qualified inland port district, the size of the qualified inland port
26    district. All property within a good life district shall be contiguous.
27(7)(a) Prior to July 1, 2024, any transactions occurring within a
28     good life district shall be subject to a reduced state sales tax rate as
29  provided in subdivision (5) of section 77-2701.02.
30(b) On and after July 1, 2024, and until October 1, 2025, any
31    transactions occurring within a good life district shall be subject to a
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1    reduced state sales tax rate as provided in subdivision (6) of section
2    77-2701.02.
3(c) On and after October 1, 2025, any transactions, excluding sales
4  of aircraft, all-terrain vehicles, barges, motor vehicles, motorboats,
5 railroad  rolling   stock,      semitrailers,       and   trailers,    by    a   good    life
6     district applicant or an enhanced employment area good life district
7  retailer that physically occur within a good life district and within the
8  corporate limits of a city of the metropolitan class shall be subject to
9  a state sales tax rate that is fifty percent of the state sales tax rate
10  provided in section 77-2701.02.
11(d) On and after October 1, 2025, a good life district applicant or
12     good life district retailer shall be eligible for a state refund of fifty
13 percent of the state sales tax paid on new development costs for a new
14    business, additional good life district retailer, or relocated good life
15     district retailer to the extent there is excess allocation available
16     under subdivision (e) of this subsection at the time they are placed in
17     service.
18(e) After the amount of sales tax collected in the portion of the
19     good   life    district    located     within     the    boundaries   of    a    city   of    the
20  metropolitan  class    by   a   good   life    district     applicant       or   good    life
21    district retailer that is a relocated good life district retailer reaches
22     an aggregate total of five million dollars per year, the state shall
23  offset from the city's local sales tax remittance, pursuant to the Local
24 Option      Revenue    Act,    any     additional     amount     of   lost    state     sales   tax
25    pursuant to subdivision (c) of this subsection, and such amount shall be
26     credited to the General Fund, except that relocated good life district
27     retailers shall exceed the five-million-dollar cap to the extent there
28  are taxes received by the state from new businesses and additional good
29  life district retailers net of any allocation or refund reduction from
30 allocated amounts within the good life district in the amount of five
31     million dollars plus the excess allocation or reduction over five million
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1  dollars. The city may take funds collected from the enhanced employment
2  area occupation tax to offset the obligation. The Tax Commissioner shall
3  inform the city of the amount of the monthly offset.
4(8) After establishment of a good life district pursuant to this
5  section, a good life district applicant or the city or village in which
6  all or a portion of the good life district is located may request that
7 the size of the good life district be reduced by filing an amended map
8     with    the    department   and     updates      or   supplements      to   the     application
9  materials originally submitted by the good life district applicant to
10 demonstrate the eligibility criteria in subsection (2) of this section
11    will be met after the boundaries are adjusted. The department may approve
12    the new boundaries if the following conditions are met:
13(a)    The   department    determines      that   the   eligibility  criteria   in
14  subsection (2) of this section will continue to be met after the proposed
15  boundary  adjustment    based    on   the    materials     submitted       by    the   party
16  requesting the boundary adjustment;
17(b) The adjustment is mutually agreed to by the good life district
18    applicant and the city or village in which all or a portion of the good
19    life district is located;
20(c)    The   department    shall   solicit      and   receive    from      the   city   or
21     village in which all or a portion of the good life district is located
22     confirmation that no area being removed is attributable to local sources
23     of revenue which have been pledged for payment of bonds issued pursuant
24     to the Good Life District Economic Development Act. Confirmation may
25  include resolutions, meeting minutes, or other official measures adopted
26  or taken by the city council or village board of trustees;
27(d) Either the department has received written consent from the
28  owners of real estate proposed to be removed from the good life district,
29  or a hearing is held by the department in the manner described in this
30  subdivision and the department finds that the removal of the affected
31 property is in the best interests of the state and that the removal is
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1 consistent with the goals and purposes of the approved application for
2 the good life district. In determining whether removal of the affected
3 property     is    consistent     with    the   goals   and   purposes   of   the   approved
4 application for the good life district, the department may consider any
5 formal action taken by the city council or village board of trustees.
6 Proof of such formal action may include resolutions, meeting minutes, or
7 other official measures adopted or taken. Such hearing must be held at
8 least ninety days after delivering written notice via certified mail to
9 the owners of record for the affected real estate proposed to be removed
10 from the good life district. The hearing must be open to the public and
11 for    the   stated     purpose      of   hearing   testimony   regarding     the   proposed
12 removal of property from the good life district. Attendees must be given
13 the opportunity to speak and submit documentary evidence at, prior to, or
14 contemporaneously with such hearing for the department to consider in
15 making its findings; and
16(e) The department shall not remove an approved project area from a
17 good life district.
18(9) After establishment of a good life district pursuant to this
19 section, no property shall be added to the good life district and its
20 boundaries shall not be expanded.
21(10) After establishment of a good life district pursuant to this
22 section and after any reduction is made to a good life district pursuant
23 to this section, the department shall transmit to any city or village
24 which includes such good life district within its boundaries or within
25 its extraterritorial zoning jurisdiction (a) all information held by the
26 department related to the application and approval of the application,
27 (b) all documentation which describes the property included within the
28 good    life      district,    and    (c)    all    documentation   transmitted     to   the
29 applicant for such good life district with approval of the application
30 and establishment of the good life district. Such city or village shall
31 be    subject     to   the    same   confidentiality     restrictions    as   provided    in
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1  subsection (3) of section 77-4404, except that all such documents, plans,
2  and specifications included in the application which the city or village
3  determine define or describe the project may be provided upon written
4  request of any person who owns property in the applicable good life
5  district. The department shall also transmit a copy of the map of the
6  good life district, a list of all known good life district retailers and
7  enhanced employment area good life district retailers, and any ownership
8  updates to the Department of Revenue.
9(11) After establishment of a good life district that exceeds one
10    thousand acres in size, the good life district applicant may apply to the
11     city or village in which all or a portion of the good life district is
12     located to establish development and design standards for the good life
13  district. Such standards may include, but are not limited to, standards
14  for architectural design, landscape design, construction materials, and
15  sustainability, but may not require property owners to utilize specific
16  contractors, professionals, suppliers, or service providers. The city or
17  village may approve the standards after holding a hearing after one
18  hundred eighty days' notice to all property owners in the district if the
19  city or village finds that the standards will ensure a comprehensive and
20  cohesive     character   and   aesthetic    for    development   in   the   good    life
21  district, and that the standards will further the purposes of the Good
22  Life Transformational Projects Act. The development and design standards
23 must    be   commercially   reasonable     and    consistent   with   terminology   and
24     accepted practices in the architecture industry, must not conflict with
25     any building code or other similar law or regulation, and must not impose
26  an undue burden on property owners in the district. If approved, the
27  standards shall apply to all new construction inside of the good life
28  district. Any such standards shall be in addition and supplemental to any
29  local zoning, building code, comprehensive plan, or similar requirements
30  of the city or village.
31(12) If the good life district applicant for an approved good life
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1  district is a political subdivision, such political subdivision shall not
2  be exempt from sales tax as provided in section 77-2704.15 on building
3  material purchases for a new business that will or is intended to offer
4  taxable sales in the good life district. For purposes of this subsection,
5  political subdivision includes any public corporation created for the
6 benefit  of   a   political     subdivision  and    any    group    of     political
7     subdivisions      forming    a   joint    public      agency,     organized      by   interlocal
8  agreement, or utilizing any other method of joint action.
9(12) (13) After establishment of a good life district pursuant to
10     this section, the good life district applicant and any other recipient of
11  allocated sales taxes, as defined in section 77-4410, or reduced sales
12     taxes shall submit an annual report to the department and to any city or
13     village that includes any portion of the good life district. Such report
14     shall   be    submitted     by   December       31   of   each   year    that   the     good   life
15  district is in existence. Such report shall include the same information
16  required under subsection (4) of this section.
17(13)(a) (14)(a) After establishment of a good life district that is
18     located in a city of the first class, city of the second class, or
19  village  within   a   county   with     a    population      of     one   hundred    thousand
20  inhabitants or more and establishment of a good life district economic
21  development program in such city or village, up to six project areas may
22  be established in the good life district as provided in this subsection.
23  In a city of the metropolitan class, the good life district applicant
24  shall be the only project area applicant, and the good life district
25     applicant's project area shall be the only approved project area.
26(b) Any good life district applicant who does not have controlling
27  property rights over the entirety of the property in the good life
28  district may submit an application to the department to designate a
29  portion of the good life district as a project area. The application
30     shall include (i) evidence of the applicant's controlling property rights
31 for the proposed project area within the good life district, (ii) a map
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1    of the proposed project area, (iii) a description of the development to
2    be pursued within the proposed project area, and (iv) a description of
3    how the project area is a viable development. A good life district
4    applicant may amend the project area application any time after it is
5     submitted. Any amendment must include an amended map of the proposed
6     project area. An application for a project area shall be subject to the
7    same    confidentiality  restrictions  as   provided       in    subsection    (3)    of
8    section 77-4404.
9(c) The department may only approve an application for a project
10     area   if,    based       on    the   evidence        submitted     to    and    considered    by    the
11    department,  the   department  concludes     that    a     viable      development     is
12    included in the project area application. The department shall provide
13    notice of its decision to the project area applicant and the city or
14    village that includes any portion of the applicable good life district.
15(d) Approval of the project area shall establish the project area as
16    that area depicted in the map accompanying the application. An approved
17     project area shall last for the duration of the underlying good life
18    district unless the project area applicant requests termination of the
19     project      area    or    assigns      the     project      area    to    another      project     area
20     applicant.
21(e) Upon approval of a project area, the project area applicant, the
22     department,     and       the    city    or    village      that    includes      any   part   of    the
23    applicable      good       life       district    shall      enter        into    a   memorandum      of
24    understanding as described in subsection (8) of section 77-4412. Such
25 memorandum        of     understanding  shall    require     that    the    local   sources     of
26    revenue, as defined in section 77-4410, derived from within a project
27     area shall be used for eligible costs incurred within or related to the
28    project area, including payment of debt service for bonds issued pursuant
29    to the Good Life District Economic Development Act, and to pay other
30     costs of the city's or village's good life district economic development
31  program created under such act.
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1(f) A good life district applicant may submit an application for a
2  project area under this subsection within ninety days after June 5, 2025.
3    Subject to subdivision (g) of this subsection, any other person or entity
4    may submit an application for a project area beginning ninety days after
5    June    5,    2025.   Such     other    person       or    entity    shall   follow  the   same
6     application process as described in this subsection for a good life
7  district applicant. Project areas shall not overlap.
8(g) The department shall not approve any other person's or entity's
9    project area application until one of the following occurs:
10(i)   The    department       approves      the     good    life   district     applicant's
11     project      area   application      and     the   applicant,       department,       and    city    or
12     village enter into a memorandum of understanding pursuant to subsection
13     (8) of section 77-4412; or
14(ii) The good life district applicant fails to submit an application
15    within ninety days after June 5, 2025.
16(h) The department shall adopt and promulgate rules and regulations
17     or publish guidance regarding the process and timeline for approving
18  project areas. Any such rules and regulations or published guidance shall
19 further  the    state's    goal     of     maximizing  transformative       development
20    outcomes in a timely way.
21(i) An approved project area shall not be considered a separate good
22  life district for purposes of subsection (4) of section 77-4404.
23(j) After the establishment of a project area, the project area
24     applicant may apply to expand its project area with approval from the
25 department. The department may only approve an expansion if (i) the
26    project area applicant has controlling property rights with respect to
27    property proposed to be added to the project area and submits evidence of
28     such   controlling       property      rights      to     the   department   and      the    city   or
29 village in which the good life district is located and (ii) all of the
30    property      proposed    to    be    added     to      the     project   area   is    within       the
31 boundaries of the good life district.
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1(k) The department may remove property from a project area if the
2    project area applicant no longer has controlling property rights with
3    respect to such property.
4(l) The department may adopt and promulgate rules and regulations
5  governing the expansion of and removal of property from project areas.
6(m) After the establishment of a project area, the project area
7    applicant shall submit an annual report to the department and to any city
8    or village that includes any portion of the good life district. Such
9    report shall be submitted by December 31 of each year that the good life
10     district is in existence. Such report shall include the same information
11  required under subsection (4) of this section.
12(14)     (15)    Demonstration      of    meeting    the   required     new   development
13    costs   for       purposes    of    subdivision     (2)(a)      of    this   section      may    be
14     established by evidence submitted by the good life district applicant,
15     the city or village where the good life district is located, or any other
16     person that submits satisfactory evidence to the department.
17Sec.     66.    Section     77-4602,      Revised    Statutes    Supplement,        2025,   is
18    amended to read:
1977-4602 (1) Within fifteen days after the end of each month, the Tax
20    Commissioner shall provide a public statement of actual General Fund net
21    receipts,     a     comparison     of   such    actual    net   receipts     to    the    monthly
22    estimated net receipts from the most recent forecast provided by the
23    Nebraska      Economic       Forecasting       Advisory     Board     pursuant     to     section
24    77-27,158, and a comparison of such actual net receipts to the monthly
25    actual net receipts for the same month of the previous fiscal year.
26(2) Within fifteen days after the end of each fiscal year, the
27    public statement shall also include (a) a summary of actual General Fund
28    net receipts and estimated General Fund net receipts for the fiscal year
29    as   certified       pursuant      to   sections    77-4601     and    77-4603     and     (b)   a
30     comparison of the actual General Fund net receipts for the fiscal year to
31  the actual General Fund net receipts for the previous fiscal year.
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1(3)(a) Within fifteen days after the end of each fiscal year, the
2  Tax Commissioner shall determine:
3(i) Actual General Fund net receipts for the most recently completed
4 fiscal year minus estimated General Fund net receipts for such fiscal
5    year as certified pursuant to sections 77-4601 and 77-4603; and
6(ii)     Actual      General      Fund     net    receipts        for   the    most   recently
7  completed fiscal year minus one hundred three percent of actual General
8  Fund net receipts for the prior fiscal year.
9(b)    If    the    amount      calculated       in   subdivision  (3)(a)(i)      of    this
10  section is a positive number and the amount calculated in subdivision (3)
11     (a)(ii) of this section is a negative number, the Tax Commissioner shall
12     certify the amount calculated in subdivision (3)(a)(i) of this section to
13     the State Treasurer. The State Treasurer shall transfer such certified
14  amount to the Cash Reserve Fund.
15(c) If the amounts calculated in subdivisions (3)(a)(i) and (3)(a)
16  (ii) of this section are both positive numbers and the amount calculated
17  in subdivision (3)(a)(i) of this section exceeds the amount calculated in
18  subdivision  (3)(a)(ii)      of    this     section,    the       Tax   Commissioner  shall
19     certify the amounts calculated in subdivisions (3)(a)(i) and (3)(a)(ii)
20  of      this   section       to   the     State    Treasurer.       The    State      Treasurer       shall
21  transfer the difference between the two certified numbers to the Cash
22     Reserve Fund. Through fiscal year 2026-27, the The State Treasurer shall
23     transfer the amount certified for subdivision (3)(a)(ii) of this section
24     to the School District Property Tax Relief Credit Fund. For fiscal year
25     2027-28     and   every    fiscal      year    thereafter,       the    State      Treasurer       shall
26  transfer the amount certified for subdivision (3)(a)(ii) of this section
27  to the New School Relief Fund.
28(d) If the amounts calculated in subdivisions (3)(a)(i) and (3)(a)
29     (ii) of this section are both positive numbers and the amount calculated
30     in   subdivision        (3)(a)(i)      of    this     section    is     less    than    the    amount
31 calculated  in    subdivision  (3)(a)(ii)      of     this      section,      the       Tax
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1     Commissioner shall certify the amount calculated in subdivision (3)(a)(i)
2  of this section to the State Treasurer. Through fiscal year 2026-27, the
3 The State Treasurer shall transfer such certified amount to the School
4    District Property Tax Relief Credit Fund. For fiscal year 2027-28 and
5     every fiscal year thereafter, the State Treasurer shall transfer such
6  certified amount to the New School Relief Fund.
7Sec.   67.     Section      77-7304,   Revised     Statutes   Supplement,       2025,    is
8    amended to read:
977-7304 (1) The School District Property Tax Relief Credit Fund is
10     created. The fund shall only be used pursuant to the School District
11     Property Tax Relief Act. Any money in the fund available for investment
12    shall    be    invested       by   the   state   investment    officer      pursuant    to     the
13    Nebraska Capital Expansion Act and the Nebraska State Funds Investment
14    Act.
15(2)(a)       The   State    Treasurer     shall    transfer   seven    hundred     fifty
16    million dollars from the General Fund to the School District Property Tax
17     Relief Credit Fund in fiscal year 2024-25, on such dates and in such
18     amounts as directed by the budget administrator of the budget division of
19     the Department of Administrative Services.
20(b)    For    fiscal     years    Beginning   in    fiscal    year    2025-26    through
21    2026-27, it is the intent of the Legislature that an amount sufficient to
22    provide the amount of property tax relief required by subdivision (1)(a)
23    of section 77-7305 for each tax year be transferred from the General Fund
24    to the School District Property Tax Relief Credit Fund.
25(3) The School District Property Tax Relief Credit Fund terminates
26  on July 1, 2027, and the State Treasurer shall transfer any money in the
27  fund on such date to the New School Relief Fund.
28Sec.   68.     Section      77-7305,   Revised     Statutes   Supplement,       2025,    is
29     amended to read:
3077-7305 (1) The School District Property Tax Relief Act shall apply
31    to tax year 2024 through tax year 2026 and each tax year thereafter. The
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1    property tax relief shall be in the form of property tax credits which
2    appear on property tax statements. Property tax credits granted under the
3    act shall be credited against the amount of property taxes owed to school
4    districts. The total amount of property tax relief granted under the act
5    shall be determined as follows:
6(a) For tax year 2024, the minimum amount of relief granted under
7  the act shall be seven hundred fifty million dollars. For tax year 2025,
8 the minimum amount of relief granted under the act shall be seven hundred
9     eighty million dollars. For tax year 2026, the minimum amount of relief
10     granted under the act shall be eight hundred eight million dollars . For
11     tax year 2027, the minimum amount of relief granted under the act shall
12    be eight hundred thirty-eight million dollars. For tax year 2028, the
13    minimum amount of relief granted under the act shall be eight hundred
14    seventy million dollars. For tax year 2029, the minimum amount of relief
15    granted under the act shall be nine hundred two million dollars. For tax
16     year 2030 and each tax year thereafter, the minimum amount of relief
17    granted under the act shall be the minimum amount of relief from the
18     prior   year,   excluding   any   additional   relief   provided   pursuant   to
19     subdivision (1)(b) of this section, with such amount then increased by
20  three percent; and
21(b) If money is transferred to the School District Property Tax
22    Relief Credit Fund pursuant to section 77-4602, such amount shall be
23    added to the minimum amount required under subdivision (1)(a) of this
24    section when determining the total amount of relief granted under the act
25    for the tax year in which the transfer occurs. If no such transfer occurs
26    in a given tax year, the minimum amount required under subdivision (1)(a)
27     of this section shall be the total amount of relief granted under the act
28  for such tax year.
29(2) To determine the amount of the property tax credit for each
30     parcel, the county treasurer shall multiply the amount disbursed to the
31    county under subsection (4) of this section by the ratio of the school
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1    district taxes levied in the current year on the parcel to the school
2     district taxes levied in the current year on all real property in the
3  county. The amount so determined shall be the property tax credit for
4  that parcel.
5(3) If the real property owner qualifies for a homestead exemption
6    under sections 77-3501 to 77-3529, the owner shall also be qualified for
7     the property tax credit provided in this section to the extent of any
8  remaining liability after calculation of the homestead exemption. If the
9  property tax credit provided in this section results in a property tax
10 liability on the homestead that is less than zero, the amount of the
11     credit which cannot be used by the taxpayer shall be returned to the
12     Property Tax Administrator by July 1 of the year the amount disbursed to
13     the county was disbursed. For fiscal years 2024-25 through 2026-27, the
14    The   Property   Tax   Administrator   shall   immediately   credit   any   funds
15    returned under this subsection to the School District Property Tax Relief
16     Credit Fund. Beginning July 1, 2027, the Property Tax Administrator shall
17     credit such funds to the New School Relief Fund. Upon the return of any
18     funds under this subsection, the county treasurer shall electronically
19  file a report with the Property Tax Administrator, on a form prescribed
20  by the Tax Commissioner, indicating the amount of funds distributed to
21 each school district in the county in the year the funds were returned
22    and the amount of unused credits returned.
23(4) The amount disbursed to each county under this section shall be
24     equal to the amount available for disbursement under subsection (1) of
25  this section multiplied by the ratio of the school district taxes levied
26 in the prior year on all real property in the county to the school
27     district taxes levied in the prior year on all real property in the
28  state. By September 15, 2024, and by September 15, 2026 of each year
29  thereafter, the Property Tax Administrator shall determine the amount to
30  be disbursed under this subsection to each county and shall certify such
31  amounts to the State Treasurer and to each county. The disbursements to
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1  the counties shall occur in two equal payments, the first on or before
2  January 31 and the second on or before April 1.
3(5)     After     retaining       one   percent   of    the    amount    received      under
4     subsection (4) of this section for costs, the county treasurer shall
5  disburse the remaining funds, which are credited against the amount of
6  property taxes owed to school districts, in the same manner as if such
7  funds had been received in the form of property tax payments for property
8 taxes       owed   to   school    districts,      meaning     any    amounts   attributable      to
9     divided taxes pursuant to section 18-2147 of the Community Development
10     Law shall be remitted to the applicable authority for which such taxes
11  were divided.
12(6) The School District Property Tax Relief Credit Fund shall be
13     used for purposes of making the disbursements to counties required under
14     subsection (4) of this section.
15Sec. 69. Section 79-1006, Reissue Revised Statutes of Nebraska, is
16  amended to read:
1779-1006 (1) For school fiscal year 2023-24 and each school fiscal
18  year thereafter, the department shall determine the foundation aid to be
19  paid to each school district in accordance with subsection (2) of this
20  section.
21(2)(a) For school fiscal years prior to school fiscal year 2027-28,
22  the (2) The foundation aid to be paid to each school district in each
23     school    fiscal     year     shall    equal    one   thousand      five    hundred   dollars
24  multiplied by the number of formula students for such school district.
25(b) For school fiscal year 2027-28 and each school fiscal year
26  thereafter, the foundation aid to be paid to each school district in each
27  school fiscal year shall equal the number of formula students for such
28  school district multiplied by the sum of:
29(i) One thousand five hundred dollars; and
30(ii)    The      amount    determined      pursuant    to     subsection   (3)    of    this
31 section.
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1(3) For school fiscal year 2027-28 and each school fiscal year
2     thereafter,    the   department   shall     determine   an    amount    of   additional
3  foundation aid to be paid per formula student out of funds available in
4 the New School Relief Fund. Such amount shall be equal to the total
5     amount available in the New School Relief Fund divided by the total
6     number of formula students in all school districts in the state.
7(4) (3) Twenty-four percent of the total amount of foundation aid
8    paid each school fiscal year, excluding any foundation aid paid from the
9    New School Relief Fund, shall be paid from money appropriated from the
10    Education Future Fund.
11(5) (4) For school fiscal years 2023-24 and 2024-25, one hundred
12     percent   of   foundation   aid   shall   be   included      as   a   formula   resource
13  pursuant to section 79-1017.01. For school fiscal year 2025-26 and each
14 school fiscal year thereafter, sixty percent of foundation aid shall be
15    included as a formula resource pursuant to section 79-1017.01.
16Sec. 70. Section 79-3405, Reissue Revised Statutes of Nebraska, is
17     amended to read:
1879-3405 (1) A school district's property tax request may exceed its
19    property tax request authority by an amount approved by a sixty percent
20     majority of legal voters voting on the issue at a special election called
21 for such purpose upon the recommendation of the school board of such
22     school district or upon the receipt by the county clerk or election
23  commissioner of a petition requesting an election signed by at least five
24     percent of the legal voters of the school district. The recommendation of
25     the school board or the petition of the legal voters shall include the
26     amount by which the school board would increase its property tax request
27     for the year over and above the property tax request authority of such
28  school district. The county clerk or election commissioner shall call for
29     a special election on the issue within thirty days after the receipt of
30  such school board recommendation or legal voter petition. The election
31  shall be held pursuant to the Election Act, and all costs shall be paid
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1    by the school district.
2(2)(a) A school district may increase the base growth percentage
3 used     to   determine   its   property   tax   request   authority   under   section
4    79-3403 by a percentage approved by an affirmative vote of at least
5     seventy percent of the school board of such school district. The maximum
6 base growth percentage that may be approved under this subsection shall
7    be:
8(i) The base growth percentage that would otherwise be applicable
9     plus an additional seven percent for school districts with an average
10  daily membership of no more than four hundred seventy-one students;
11(ii) The base growth percentage that would otherwise be applicable
12    plus an additional six percent for school districts with an average daily
13     membership of more than four hundred seventy-one students but no more
14     than three thousand forty-four students;
15(iii) The base growth percentage that would otherwise be applicable
16    plus an additional five percent for school districts with an average
17    daily membership of more than three thousand forty-four students but no
18    more than ten thousand students; or
19(iv) The base growth percentage that would otherwise be applicable
20    plus an additional four percent for school districts with an average
21    daily membership of more than ten thousand students.
22(b) Before a school board votes to increase a school district's base
23  growth percentage under this subsection, the school board shall publish
24  notice of the upcoming vote in a legal newspaper of general circulation
25 in the school district. Such publication shall occur at least one week
26    prior to the public meeting at which the vote will be taken.
27(3) A school district's property tax request may exceed its property
28    tax request authority pursuant to any property tax authority approved by
29    the voters at a levy override election under section 77-3444 held prior
30    to January 1, 2024.
31(4) A school district may exceed its property tax request authority
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1  without the approval of the voters by an amount equal to six percent of
2 the school district's prior year property tax request authority. Such
3    increase shall be used to pay for teacher salaries, wages, and benefits.
4    For purposes of this subsection, teacher means any certified employee who
5     is   regularly     employed     for    the    instruction      of   pupils     in   the   public
6  schools.
7Sec. 71.      (1) The New School Relief Fund is hereby created. The fund
8     shall be administered by the State Department of Education and shall
9  consist of money transferred pursuant to subdivision (2)(f) of section
10  77-27,132 and the amount transferred pursuant to subsection (2) of this
11  section. Any money in the fund available for investment shall be invested
12  by      the   state       investment     officer       pursuant   to   the   Nebraska        Capital
13     Expansion Act and the Nebraska State Funds Investment Act. The fund shall
14    be used to provide additional foundation aid to school districts pursuant
15    to subsection (3) of section 79-1006.
16(2) Beginning in fiscal year 2027-28, the State Treasurer shall
17  transfer eight hundred thirty-eight million dollars from the General Fund
18  to the New School Relief Fund on or before September 1, 2027, and on or
19  before September 1 of each year thereafter.
20(3) Beginning in fiscal year 2027-28, if the state fails to use all
21    funds   available       in   the    New   School      Relief   Fund   for    the    additional
22     foundation aid described in subsection (3) of section 79-1006 for any
23     fiscal year, each school district may, if approved by a majority vote of
24     the school board for the school district, levy an amount for such fiscal
25    year sufficient to generate revenue equal to the amount of foundation aid
26     that should have been provided to such school district, not to exceed
27  three cents per one hundred dollars of taxable valuation of property
28  subject       to    the    levy.   The    property       tax   levy    provided    for   in    this
29 subsection is in addition to the maximum allowable property tax levy
30    described in subdivision (2)(a) of section 77-3442.
31Sec. 72.      This act becomes operative on January 1, 2027.
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1Sec.      73.     Original    sections     2-2701,     77-2701.24,    77-2701.36,
2    77-2704.03, 77-2704.04, 77-2704.05, 77-2704.07, 77-2704.10, 77-2704.13,
3    77-2704.14, 77-2704.16, 77-2704.17, 77-2704.22, 77-2704.23, 77-2704.24,
4     77-2704.25, 77-2704.26, 77-2704.27, 77-2704.28, 77-2704.30, 77-2704.38,
5     77-2704.39, 77-2704.40, 77-2704.41, 77-2704.42, 77-2704.45, 77-2704.46,
6  77-2704.47, 77-2704.48, 77-2704.50, 77-2704.51, 77-2704.52, 77-2704.53,
7  77-2704.56, 77-2704.57, 77-2704.58, 77-2704.60, 77-2704.61, 77-2704.62,
8 77-2704.63,        77-2704.64,    77-2704.65,     77-2704.67,     77-2706,   77-27,235,
9     79-1006, and 79-3405, Reissue Revised Statutes of Nebraska, sections
10    77-382,    77-2701,       77-2701.04,     77-2701.32,     77-2703.01,     77-2704.12,
11    77-2704.15,      77-2704.20,     77-2704.36,      77-2704.68,      77-2704.69,      and
12     77-27,132, Revised Statutes Cumulative Supplement, 2024, and sections
13     77-2701.16,    77-2703,     77-2706.02,    77-3442,    77-4403,    77-4405,    77-4602,
14  77-7304, and 77-7305, Revised Statutes Supplement, 2025, are repealed.
15Sec.   74.      The    following    section   is    outright   repealed:    Section
16  77-2701.56, Revised Statutes Cumulative Supplement, 2024.
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