LB387 LB387
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 387
Introduced by Linehan, 39.
Read first time January 12, 2023
Committee: Revenue
1 A BILL FOR AN ACT relating to income taxes; to amend section 77-2715.03,
2 Revised Statutes Cumulative Supplement, 2022; to change provisions
3 relating to a certain tax rate; and to repeal the original section.
4 Be it enacted by the people of the State of Nebraska,
-1-
LB387 LB387
2023 2023
1 Section 1. Section 77-2715.03, Revised Statutes Cumulative
2 Supplement, 2022, is amended to read:
3 77-2715.03 (1) For taxable years beginning or deemed to begin on or
4 after January 1, 2013, and before January 1, 2014, the following brackets
5 and rates are hereby established for the Nebraska individual income tax:
6 Individual Income Tax Brackets and Rates
7 Bracket Single Married, Head of Married, Estates Tax
8 Number Individuals Filing Household Filing and Rate
9 Jointly Separate Trusts
10 1 $0-2,399 $0-4,799 $0-4,499 $0-2,399 $0-499 2.46%
11 2 $2,400- $4,800- $4,500- $2,400- $500-
12 17,499 34,999 27,999 17,499 4,699 3.51%
13 3 $17,500- $35,000- $28,000- $17,500- $4,700-
14 26,999 53,999 39,999 26,999 15,149 5.01%
15 4 $27,000 $54,000 $40,000 $27,000 $15,150
16 and Over and Over and Over and Over and Over 6.84%
17 (2) For taxable years beginning or deemed to begin on or after
18 January 1, 2014, the following brackets and rates are hereby established
19 for the Nebraska individual income tax:
20 Individual Income Tax Brackets and Rates
21 Bracket Single Married, Head of Married, Estates Tax
22 Number Individuals Filing Household Filing and Rate
23 Jointly Separate Trusts
24 1 $0-2,999 $0-5,999 $0-5,599 $0-2,999 $0-499 2.46%
25 2 $3,000- $6,000- $5,600- $3,000- $500-
26 17,999 35,999 28,799 17,999 4,699 3.51%
27 3 $18,000- $36,000- $28,800- $18,000- $4,700-
28 28,999 57,999 42,999 28,999 15,149 5.01%
29 4 $29,000 $58,000 $43,000 $29,000 $15,150
30 and Over and Over and Over and Over and Over Top Rate
-2-
LB387 LB387
2023 2023
1 For purposes of this subsection, the top rate shall be:
2 (a) 6.84% for taxable years beginning or deemed to begin on or after
3 January 1, 2014, and before January 1, 2023;
4 (b) 6.64% for taxable years beginning or deemed to begin on or after
5 January 1, 2023, and before January 1, 2024;
6 (c) 6.44% for taxable years beginning or deemed to begin on or after
7 January 1, 2024, and before January 1, 2025;
8 (d) 6.24% for taxable years beginning or deemed to begin on or after
9 January 1, 2025, and before January 1, 2026;
10 (e) 6.00% for taxable years beginning or deemed to begin on or after
11 January 1, 2026, and before January 1, 2027; and
12 (f) 5.84% for taxable years beginning or deemed to begin on or after
13 January 1, 2027.
14 (3)(a) For taxable years beginning or deemed to begin on or after
15 January 1, 2015, the minimum and maximum dollar amounts for each income
16 tax bracket provided in subsection (2) of this section shall be adjusted
17 for inflation by the percentage determined under subdivision (3)(b) of
18 this section. The rate applicable to any such income tax bracket shall
19 not be changed as part of any adjustment under this subsection. The
20 minimum and maximum dollar amounts for each income tax bracket as
21 adjusted shall be rounded to the nearest ten-dollar amount. If the
22 adjusted amount for any income tax bracket ends in a five, it shall be
23 rounded up to the nearest ten-dollar amount.
24 (b)(i) For taxable years beginning or deemed to begin on or after
25 January 1, 2015, and before January 1, 2018, the Tax Commissioner shall
26 adjust the income tax brackets by the percentage determined pursuant to
27 the provisions of section 1(f) of the Internal Revenue Code of 1986, as
28 it existed prior to December 22, 2017, except that in section 1(f)(3)(B)
29 of the code the year 2013 shall be substituted for the year 1992. For
30 2015, the Tax Commissioner shall then determine the percent change from
31 the twelve months ending on August 31, 2013, to the twelve months ending
-3-
LB387 LB387
2023 2023
1 on August 31, 2014, and in each subsequent year, from the twelve months
2 ending on August 31, 2013, to the twelve months ending on August 31 of
3 the year preceding the taxable year. The Tax Commissioner shall prescribe
4 new tax rate schedules that apply in lieu of the schedules set forth in
5 subsection (2) of this section.
6 (ii) For taxable years beginning or deemed to begin on or after
7 January 1, 2018, the Tax Commissioner shall adjust the income tax
8 brackets based on the percentage change in the Consumer Price Index for
9 All Urban Consumers published by the federal Bureau of Labor Statistics
10 from the twelve months ending on August 31, 2016, to the twelve months
11 ending on August 31 of the year preceding the taxable year. The Tax
12 Commissioner shall prescribe new tax rate schedules that apply in lieu of
13 the schedules set forth in subsection (2) of this section.
14 (4) Whenever the tax brackets or tax rates are changed by the
15 Legislature, the Tax Commissioner shall update the tax rate schedules to
16 reflect the new tax brackets or tax rates and shall publish such updated
17 schedules.
18 (5) The Tax Commissioner shall prepare, from the rate schedules, tax
19 tables which can be used by a majority of the taxpayers to determine
20 their Nebraska tax liability. The design of the tax tables shall be
21 determined by the Tax Commissioner. The size of the tax table brackets
22 may change as the level of income changes. The difference in tax between
23 two tax table brackets shall not exceed fifteen dollars. The Tax
24 Commissioner may build the personal exemption credit and standard
25 deduction amounts into the tax tables.
26 (6) For taxable years beginning or deemed to begin on or after
27 January 1, 2013, the tax rate applied to other federal taxes included in
28 the computation of the Nebraska individual income tax shall be twenty-
29 nine and six-tenths 29.6 percent.
30 (7) The Tax Commissioner may require by rule and regulation that all
31 taxpayers shall use the tax tables if their income is less than the
-4-
LB387 LB387
2023 2023
1 maximum income included in the tax tables.
2 Sec. 2. Original section 77-2715.03, Revised Statutes Cumulative
3 Supplement, 2022, is repealed.
-5-
Statutes affected: Introduced: 77-2715.03