LB381 LB381
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 381
Introduced by Cavanaugh, M., 6.
Read first time January 12, 2023
Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to amend section
2 13-319, Reissue Revised Statutes of Nebraska, and sections 39-2510,
3 39-2520, 77-2703.01, 77-2703.04, 77-2704.31, 77-2705, 77-2708,
4 77-2711, 77-2712.05, 77-6831, 77-6832, and 77-6922, Revised Statutes
5 Cumulative Supplement, 2022; to adopt the Mental Health Wellness
6 Act; to authorize county sales and use taxes as prescribed; to
7 harmonize provisions; and to repeal the original sections.
8 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 5 of this act shall be known and may be
2 cited as the Mental Health Wellness Act.
3 Sec. 2. (1) Subject to subsection (2) of this section, a county
4 may, upon adoption of a resolution by the affirmative vote of at least a
5 two-thirds majority of all elected members of the county board, impose a
6 sales and use tax of one-half of one percent on transactions that are
7 subject to the state sales and use tax under the Nebraska Revenue Act of
8 1967, as amended from time to time, and that are sourced as provided in
9 sections 77-2703.01 to 77-2703.04 within the county. Any sales and use
10 tax imposed pursuant to this section shall be used exclusively to provide
11 mental health services to residents of the county to improve the health
12 and wellness of such residents.
13 (2) A sales and use tax shall not be imposed pursuant to this
14 section until an election has been held and a majority of the qualified
15 electors in the county have approved the tax pursuant to section 3 of
16 this act.
17 Sec. 3. The power to tax granted by section 2 of this act shall not
18 be exercised unless and until the question of imposing the tax has been
19 submitted at a primary, general, or special election held within the
20 county which would be subject to the tax. The county board shall order
21 the submission of the question by submitting a certified copy of the
22 resolution proposing the tax to the election commissioner or county
23 clerk. The question shall include the following language: Shall the
24 county impose a sales and use tax upon the same transactions within the
25 county on which the State of Nebraska is authorized to impose a tax to
26 finance mental health services? If a majority of the votes cast upon the
27 question are in favor of the tax, the county board may impose the tax. If
28 a majority of those voting on the question are opposed to the tax, the
29 county board shall not impose the tax. Any election under this section
30 shall be conducted in accordance with the procedures provided in the
31 Election Act.
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1 Sec. 4. (1) The Tax Commissioner shall administer all sales and use
2 taxes imposed pursuant to the Mental Health Wellness Act. The Tax
3 Commissioner may prescribe forms and adopt and promulgate rules and
4 regulations in conformity with the Nebraska Revenue Act of 1967, as
5 amended, for the making of returns and for the ascertainment, assessment,
6 and collection of taxes. If the tax has been approved by the voters under
7 section 3 of this act, the county board shall furnish a certified copy of
8 the resolution imposing the tax to the Tax Commissioner. The tax shall
9 begin on the first day of the first calendar quarter which begins at
10 least sixty days after receipt by the Tax Commissioner of the certified
11 copy of the resolution. The Tax Commissioner shall provide at least
12 thirty days' notice of the adoption of the tax to retailers within the
13 county. Such notice may be provided through the website of the Department
14 of Revenue or by other electronic means.
15 (2) The Tax Commissioner shall collect any sales and use tax imposed
16 pursuant to the Mental Health Wellness Act concurrently with collection
17 of a state sales and use tax in the same manner as the state tax is
18 collected. The Tax Commissioner shall remit monthly the proceeds of the
19 tax to the county imposing the tax, after deducting the amount of refunds
20 made and three percent of the remainder as an administrative fee
21 necessary to defray the cost of collecting the tax and the expenses
22 incident thereto. The Tax Commissioner shall keep full and accurate
23 records of all money received and distributed. All receipts from the
24 three-percent administrative fee shall be deposited in the state General
25 Fund.
26 (3) Upon any claim of illegal assessment and collection of any sales
27 and use tax imposed pursuant to the Mental Health Wellness Act, the
28 taxpayer has the same remedies provided for claims of illegal assessment
29 and collection of the state sales and use tax.
30 (4) All relevant provisions of the Nebraska Revenue Act of 1967, as
31 amended, not inconsistent with the Mental Health Wellness Act, shall
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1 govern transactions, proceedings, and activities related to any sales and
2 use tax imposed pursuant to the Mental Health Wellness Act.
3 (5) For purposes of any sales and use tax imposed pursuant to the
4 Mental Health Wellness Act, all retail sales, rentals, and leases, as
5 defined and described in the Nebraska Revenue Act of 1967, shall be
6 sourced as provided in sections 77-2703.01 to 77-2703.04.
7 Sec. 5. A county shall not impose a sales and use tax pursuant to
8 the Mental Health Wellness Act if such county is imposing a tax pursuant
9 to section 13-319.
10 Sec. 6. Section 13-319, Reissue Revised Statutes of Nebraska, is
11 amended to read:
12 13-319 Any county by resolution of the governing body may impose a
13 sales and use tax of one-half percent, one percent, or one and one-half
14 percent upon the same transactions sourced as provided in sections
15 77-2703.01 to 77-2703.04 within the county, but outside any incorporated
16 municipality which has adopted a local sales tax pursuant to section
17 77-27,142, on which the state is authorized to impose a tax pursuant to
18 the Nebraska Revenue Act of 1967, as amended from time to time. Any sales
19 and use tax imposed pursuant to this section must be used (1) to finance
20 public safety services provided by a public safety commission, (2) to
21 provide the county share of funds required under any other agreement
22 executed under the Interlocal Cooperation Act or Joint Public Agency Act,
23 or (3) to finance public safety services provided by the county. A sales
24 and use tax shall not be imposed pursuant to this section until an
25 election has been held and a majority of the qualified electors have
26 approved the tax pursuant to sections 13-322 and 13-323. A sales and use
27 tax shall not be imposed pursuant to this section if the county is
28 imposing a tax pursuant to section 77-6403 or section 2 of this act.
29 Sec. 7. Section 39-2510, Revised Statutes Cumulative Supplement,
30 2022, is amended to read:
31 39-2510 (1) All money derived from fees, excises, or license fees
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1 relating to registration, operation, or use of vehicles on the public
2 highways, or to fuels used for the propulsion of such vehicles, shall be
3 expended for payment of highway obligations, cost of construction,
4 reconstruction, maintenance, and repair of public highways and bridges
5 and county, city, township, and village roads, streets, and bridges, and
6 all facilities, appurtenances, and structures deemed necessary in
7 connection with such highways, bridges, roads, and streets, or may be
8 pledged to secure bonded indebtedness issued for such purposes, except
9 for (a) the cost of administering laws under which such money is derived,
10 (b) statutory refunds and adjustments provided therein, and (c) money
11 derived from the motor vehicle operators' license fees or money received
12 from parking meter proceeds, fines, and penalties.
13 (2)(a) The requirements of subsection (1) of this section also apply
14 to sales and use taxes imposed on motor vehicles, trailers, and
15 semitrailers pursuant to sections 13-319, 77-27,142, and 77-6403 and
16 section 2 of this act, except that such provisions shall not apply in a
17 county or municipal county that has issued bonds (i) the proceeds of
18 which were used for purposes listed in subsection (1) of this section and
19 for which revenue other than sales and use taxes on motor vehicles,
20 trailers, and semitrailers is pledged for payment or (ii) approved by a
21 vote that required the use of sales and use taxes imposed on motor
22 vehicles, trailers, and semitrailers for a specific purpose other than
23 those listed in subsection (1) of this section, until all such bonds
24 issued prior to January 1, 2006, have been paid or retired.
25 (b) The county or municipal county shall determine (i) the amount of
26 revenue other than sales and use tax revenue derived from motor vehicles,
27 trailers, or semitrailers that is to be expended for the purposes listed
28 in subsection (1) of this section and (ii) the amount of sales and use
29 taxes expected to be collected from sales of motor vehicles, trailers,
30 and semitrailers for that year. The county or municipal county shall
31 create and maintain such determination as a public record and certify the
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1 determination pursuant to sections 39-2120 and 39-2121.
2 Sec. 8. Section 39-2520, Revised Statutes Cumulative Supplement,
3 2022, is amended to read:
4 39-2520 (1) All money derived from fees, excises, or license fees
5 relating to registration, operation, or use of vehicles on the public
6 highways, or to fuels used for the propulsion of such vehicles, shall be
7 expended for payment of highway obligations, cost of construction,
8 reconstruction, maintenance, and repair of public highways and bridges
9 and county, city, township, and village roads, streets, and bridges, and
10 all facilities, appurtenances, and structures deemed necessary in
11 connection with such highways, bridges, roads, and streets, or may be
12 pledged to secure bonded indebtedness issued for such purposes, except
13 for (a) the cost of administering laws under which such money is derived,
14 (b) statutory refunds and adjustments provided therein, and (c) money
15 derived from the motor vehicle operators' license fees or money received
16 from parking meter proceeds, fines, and penalties.
17 (2)(a) The requirements of subsection (1) of this section also apply
18 to sales and use taxes imposed on motor vehicles, trailers, and
19 semitrailers pursuant to sections 13-319, 77-27,142, and 77-6403 and
20 section 2 of this act, except that such provisions shall not apply in a
21 municipality that has issued bonds (i) the proceeds of which were used
22 for purposes listed in subsection (1) of this section and for which
23 revenue other than sales and use taxes on motor vehicles, trailers, and
24 semitrailers is pledged for payment or (ii) approved by a vote that
25 required the use of sales and use taxes imposed on motor vehicles,
26 trailers, and semitrailers for a specific purpose other than those listed
27 in subsection (1) of this section, until all such bonds issued prior to
28 January 1, 2006, have been paid or retired.
29 (b) The municipality shall determine (i) the amount of revenue other
30 than sales and use tax revenue derived from motor vehicles, trailers, or
31 semitrailers that is to be expended for the purposes listed in subsection
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1 (1) of this section and (ii) the amount of sales and use taxes expected
2 to be collected from sales of motor vehicles, trailers, and semitrailers
3 for that year. The municipality shall create and maintain such
4 determination as a public record and certify the determination pursuant
5 to sections 39-2120 and 39-2121.
6 Sec. 9. Section 77-2703.01, Revised Statutes Cumulative Supplement,
7 2022, is amended to read:
8 77-2703.01 (1) The determination of whether a sale or use of
9 property or the provision of services is in this state, in a municipality
10 that has adopted a tax under the Local Option Revenue Act, or in a county
11 that has adopted a tax under section 13-319 or 77-6403 or section 2 of
12 this act shall be governed by the sourcing rules in sections 77-2703.01
13 to 77-2703.04.
14 (2) When the property or service is received by the purchaser at a
15 business location of the retailer, the sale is sourced to that business
16 location.
17 (3) When the property or service is not received by the purchaser at
18 a business location of the retailer, the sale is sourced to the location
19 where receipt by the purchaser or the purchaser's donee, designated as
20 such by the purchaser, occurs, including the location indicated by
21 instructions for delivery to the purchaser or donee, known to the
22 retailer.
23 (4) When subsection (2) or (3) of this section does not apply, the
24 sale is sourced to the location indicated by an address or other
25 information for the purchaser that is available from the business records
26 of the retailer that are maintained in the ordinary course of the
27 retailer's business when use of this address does not constitute bad
28 faith.
29 (5) When subsection (2), (3), or (4) of this section does not apply,
30 the sale is sourced to the location indicated by an address for the
31 purchaser obtained during the consummation of the sale, including the
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1 address of a purchaser's payment instrument, if no other address is
2 available, when use of this address does not constitute bad faith.
3 (6) When subsection (2), (3), (4), or (5) of this section does not
4 apply, including the circumstance in which the retailer is without
5 sufficient information to apply the rules in any such subsection, then
6 the location will be determined by the address from which property was
7 shipped, from which the digital good was first available for transmission
8 by the retailer, or from which the service was provided disregarding for
9 these purposes any location that merely provided the digital transfer of
10 the product sold.
11 (7) The lease or rental of tangible personal property, other than
12 property identified in subsection (8) or (9) of this section, shall be
13 sourced as follows:
14 (a) For a lease or rental that requires recurring periodic payments,
15 the first periodic payment is sourced the same as a retail sale in
16 accordance with the provisions of subsections (2) through (6) of this
17 section. Periodic payments made subsequent to the first payment are
18 sourced to the primary property location for each period covered by the
19 payment. The primary property location shall be as indicated by an
20 address for the property provided by the lessee that is available to the
21 lessor from its records maintained in the ordinary course of business
22 when use of this address does not constitute bad faith. The property
23 location shall not be altered by intermittent