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LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SPECIAL SESSION
LEGISLATIVE BILL 10
Introduced by Raybould, 28; Blood, 3; Brandt, 32.
Read first time July 25, 2024
Committee:
1 A BILL FOR AN ACT relating to revenue and taxation: to amend sections
2 77-2715.03 and 77-2734.02, Revised Statutes Supplement, 2023; to
3 change provisions relating to individual and corporate income tax
4 rates; and to repeal the original sections.
5 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 77-2715.03, Revised Statutes Supplement, 2023, is
2 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)(a) 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- Rate
28 28,999 57,999 42,999 28,999 15,149 Three
29 4 $29,000 $58,000 $43,000 $29,000 $15,150 Rate
30 and Over and Over and Over and Over and Over Four
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1 (b) For purposes of this subsection, rate three shall be:
2 (i) 5.01% for taxable years beginning or deemed to begin on or after
3 January 1, 2014, and before January 1, 2029 2026;
4 (ii) 4.55% for taxable years beginning or deemed to begin on or
5 after January 1, 2029 2026, and before January 1, 2030 2027; and
6 (iii) 3.99% for taxable years beginning or deemed to begin on or
7 after January 1, 2030 2027.
8 (c) For purposes of this subsection, rate four shall be:
9 (i) 6.84% for taxable years beginning or deemed to begin on or after
10 January 1, 2014, and before January 1, 2023;
11 (ii) 6.64% for taxable years beginning or deemed to begin on or
12 after January 1, 2023, and before January 1, 2024;
13 (iii) 5.84% for taxable years beginning or deemed to begin on or
14 after January 1, 2024, and before January 1, 2025;
15 (iv) 6.84% 5.20% for taxable years beginning or deemed to begin on
16 or after January 1, 2025, and before January 1, 2026;
17 (v) 6.64% 4.55% for taxable years beginning or deemed to begin on or
18 after January 1, 2026, and before January 1, 2027; and
19 (vi) 5.84% for taxable years beginning or deemed to begin on or
20 after January 1, 2027, and before January 1, 2028;
21 (vii) 5.20% for taxable years beginning or deemed to begin on or
22 after January 1, 2028, and before January 1, 2029;
23 (viii) 4.55% for taxable years beginning or deemed to begin on or
24 after January 1, 2029, and before January 1, 2030; and
25 (ix) (vi) 3.99% for taxable years beginning or deemed to begin on or
26 after January 1, 2030 2027.
27 (3)(a) For taxable years beginning or deemed to begin on or after
28 January 1, 2015, the minimum and maximum dollar amounts for each income
29 tax bracket provided in subsection (2) of this section shall be adjusted
30 for inflation by the percentage determined under subdivision (3)(b) of
31 this section. The rate applicable to any such income tax bracket shall
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1 not be changed as part of any adjustment under this subsection. The
2 minimum and maximum dollar amounts for each income tax bracket as
3 adjusted shall be rounded to the nearest ten-dollar amount. If the
4 adjusted amount for any income tax bracket ends in a five, it shall be
5 rounded up to the nearest ten-dollar amount.
6 (b)(i) For taxable years beginning or deemed to begin on or after
7 January 1, 2015, and before January 1, 2018, the Tax Commissioner shall
8 adjust the income tax brackets by the percentage determined pursuant to
9 the provisions of section 1(f) of the Internal Revenue Code of 1986, as
10 it existed prior to December 22, 2017, except that in section 1(f)(3)(B)
11 of the code the year 2013 shall be substituted for the year 1992. For
12 2015, the Tax Commissioner shall then determine the percent change from
13 the twelve months ending on August 31, 2013, to the twelve months ending
14 on August 31, 2014, and in each subsequent year, from the twelve months
15 ending on August 31, 2013, to the twelve months ending on August 31 of
16 the year preceding the taxable year. The Tax Commissioner shall prescribe
17 new tax rate schedules that apply in lieu of the schedules set forth in
18 subsection (2) of this section.
19 (ii) For taxable years beginning or deemed to begin on or after
20 January 1, 2018, the Tax Commissioner shall adjust the income tax
21 brackets based on the percentage change in the Consumer Price Index for
22 All Urban Consumers published by the federal Bureau of Labor Statistics
23 from the twelve months ending on August 31, 2016, to the twelve months
24 ending on August 31 of the year preceding the taxable year. The Tax
25 Commissioner shall prescribe new tax rate schedules that apply in lieu of
26 the schedules set forth in subsection (2) of this section.
27 (4) Whenever the tax brackets or tax rates are changed by the
28 Legislature, the Tax Commissioner shall update the tax rate schedules to
29 reflect the new tax brackets or tax rates and shall publish such updated
30 schedules.
31 (5) The Tax Commissioner shall prepare, from the rate schedules, tax
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1 tables which can be used by a majority of the taxpayers to determine
2 their Nebraska tax liability. The design of the tax tables shall be
3 determined by the Tax Commissioner. The size of the tax table brackets
4 may change as the level of income changes. The difference in tax between
5 two tax table brackets shall not exceed fifteen dollars. The Tax
6 Commissioner may build the personal exemption credit and standard
7 deduction amounts into the tax tables.
8 (6) For taxable years beginning or deemed to begin on or after
9 January 1, 2013, the tax rate applied to other federal taxes included in
10 the computation of the Nebraska individual income tax shall be 29.6
11 percent.
12 (7) The Tax Commissioner may require by rule and regulation that all
13 taxpayers shall use the tax tables if their income is less than the
14 maximum income included in the tax tables.
15 Sec. 2. Section 77-2734.02, Revised Statutes Supplement, 2023, is
16 amended to read:
17 77-2734.02 (1) Except as provided in subsection (2) of this section,
18 a tax is hereby imposed on the taxable income of every corporate taxpayer
19 that is doing business in this state:
20 (a) For taxable years beginning or deemed to begin before January 1,
21 2013, at a rate equal to one hundred fifty and eight-tenths percent of
22 the primary rate imposed on individuals under section 77-2701.01 on the
23 first one hundred thousand dollars of taxable income and at the rate of
24 two hundred eleven percent of such rate on all taxable income in excess
25 of one hundred thousand dollars. The resultant rates shall be rounded to
26 the nearest one hundredth of one percent;
27 (b) For taxable years beginning or deemed to begin on or after
28 January 1, 2013, and before January 1, 2022, at a rate equal to 5.58
29 percent on the first one hundred thousand dollars of taxable income and
30 at the rate of 7.81 percent on all taxable income in excess of one
31 hundred thousand dollars;
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1 (c) For taxable years beginning or deemed to begin on or after
2 January 1, 2022, and before January 1, 2023, at a rate equal to 5.58
3 percent on the first one hundred thousand dollars of taxable income and
4 at the rate of 7.50 percent on all taxable income in excess of one
5 hundred thousand dollars;
6 (d) For taxable years beginning or deemed to begin on or after
7 January 1, 2023, and before January 1, 2024, at a rate equal to 5.58
8 percent on the first one hundred thousand dollars of taxable income and
9 at the rate of 7.25 percent on all taxable income in excess of one
10 hundred thousand dollars;
11 (e) For taxable years beginning or deemed to begin on or after
12 January 1, 2024, and before January 1, 2025, at a rate equal to 5.58
13 percent on the first one hundred thousand dollars of taxable income and
14 at the rate of 5.84 percent on all taxable income in excess of one
15 hundred thousand dollars;
16 (f) For taxable years beginning or deemed to begin on or after
17 January 1, 2025, and before January 1, 2026, at the rate of 5.20 percent
18 on all taxable income;
19 (g) For taxable years beginning or deemed to begin on or after
20 January 1, 2026, and before January 1, 2027, at the rate of 4.55 percent
21 on all taxable income; and
22 (h) For taxable years beginning or deemed to begin on or after
23 January 1, 2027, and before January 1, 2028, at a rate equal to 5.58
24 percent on the first one hundred thousand dollars of taxable income and
25 at the rate of 5.84 percent on all taxable income in excess of one
26 hundred thousand dollars;
27 (i) For taxable years beginning or deemed to begin on or after
28 January 1, 2028, and before January 1, 2029, at the rate of 5.20 percent
29 on all taxable income;
30 (j) For taxable years beginning or deemed to begin on or after
31 January 1, 2029, and before January 1, 2030, at the rate of 4.55 percent
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1 on all taxable income; and
2 (k) (h) For taxable years beginning or deemed to begin on or after
3 January 1, 2030 2027, at the rate of 3.99 percent on all taxable income.
4 For corporate taxpayers with a fiscal year that does not coincide
5 with the calendar year, the individual rate used for this subsection
6 shall be the rate in effect on the first day, or the day deemed to be the
7 first day, of the taxable year.
8 (2) An insurance company shall be subject to taxation at the lesser
9 of the rate described in subsection (1) of this section or the rate of
10 tax imposed by the state or country in which the insurance company is
11 domiciled if the insurance company can establish to the satisfaction of
12 the Tax Commissioner that it is domiciled in a state or country other
13 than Nebraska that imposes on Nebraska domiciled insurance companies a
14 retaliatory tax against the tax described in subsection (1) of this
15 section.
16 (3) For a corporate taxpayer that is subject to tax in another
17 state, its taxable income shall be the portion of the taxpayer's federal
18 taxable income, as adjusted, that is determined to be connected with the
19 taxpayer's operations in this state pursuant to sections 77-2734.05 to
20 77-2734.15.
21 (4) Each corporate taxpayer shall file only one income tax return
22 for each taxable year.
23 Sec. 3. Original sections 77-2715.03 and 77-2734.02, Revised
24 Statutes Supplement, 2023, are repealed.
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