Bill Summary – FastDemocracy

LB55                                                                              LB55
                                                                            2024
                               LEGISLATURE OF NEBRASKA
                            ONE HUNDRED EIGHTH LEGISLATURE
                                FIRST SPECIAL SESSION
                       LEGISLATIVE BILL 55
       Introduced by Wayne, 13.
       Read first time July 29, 2024
       Committee: Revenue
  A BILL FOR AN ACT relating to revenue and taxation; to amend section
       77-2701, Revised Statutes Supplement, 2023, as amended by Laws 2024,
       LB937, section 67, Laws 2024, LB1023, section 8, and Laws 2024,
       LB1317,   section    80;   and section   77-2701.04,   Revised Statutes
      Supplement, 2023, as amended by Laws 2024, LB937, section 68, and
      Laws 2024, LB1317, section 82; to provide for a luxury tax; to
       harmonize provisions; to provide an operative date; and to repeal
       the original sections.
   Be it enacted by the people of the State of Nebraska,
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LB55                                                                                          LB55
                                                                                        2024
          Section 1. Section 77-2701, Revised Statutes Supplement, 2023, as
  amended by Laws 2024, LB937, section 67, Laws 2024, LB1023, section 8,
  and Laws 2024, LB1317, section 80, is amended to read:
         77-2701      Sections   77-2701   to     77-27,135.01,   77-27,222,    77-27,235,
   77-27,236, and 77-27,238 to 77-27,241, section 71 of this act, section 11
   of this act, and section 84 of this act, and section 3 of this act shall
   be known and may be cited as the Nebraska Revenue Act of 1967.
         Sec. 2. Section 77-2701.04, Revised Statutes Supplement, 2023, as
  amended by Laws 2024, LB937, section 68, and Laws 2024, LB1317, section
  82, is amended to read:
         77-2701.04      For purposes of   sections   77-2701.04   to    77-2713    and
  77-27,239, section 71 of this act, and section 84 of this act, and
   section    3   of this act,   unless the context otherwise requires,   the
   definitions found in sections 77-2701.05 to 77-2701.56 shall be used.
         Sec. 3.      (1) A luxury tax is hereby imposed upon the purchaser of
  any:
         (a) Motor vehicle that costs more than fifty thousand dollars;
         (b) Jewelry that costs more than five thousand dollars; and
         (c) Clothing that costs more than one thousand dollars.
         (2) Purchases of the following are exempt from the luxury tax:
         (a) Any motor vehicle purchased by a nonresident serving on active
  duty in Nebraska as a member of the United States Armed Forces or the
  United States Reserve Forces or by such nonresident's spouse;
         (b) Any motor vehicle with a gross vehicle weight rating of more
  than twelve thousand five hundred pounds; and
         (c) Any motor vehicle with a gross vehicle weight rating less than
  or equal to twelve thousand five hundred pounds that is designed or used
  for commercial purposes and is registered as a commercial motor vehicle.
          (3) Except as provided in subsection (4) of this section, the luxury
  tax shall be equal to two and one-quarter percent of the purchase price
  plus any additional tax determined under subsection (5) of this section.
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LB55                                                                                             LB55
                                                                                           2024
      (4) For any purchase exceeding four hundred thousand dollars, the
   luxury tax shall be equal to three and seven-tenths percent of the amount
  of the purchase price plus any additional tax determined under subsection
  (5) of this section.
      (5)(a) An additional tax shall be added to the luxury tax due under
  this section for purchases of the following:
      (i) Any passenger motor vehicle that costs more than one hundred
  thousand dollars;
      (ii)    Any watercraft that cost more than two hundred thousand
  dollars;
      (iii)    Any aircraft that costs more than five hundred thousand
  dollars; and
       (iv) Jewelry, fur clothing, or fur footwear that costs more than
   five thousand dollars.
      (b) The additional tax shall be equal to five percent of the portion
  of the purchase price that exceeds:
      (i) Eighty thousand dollars for any passenger motor vehicle;
      (ii) Two hundred thousand dollars for any watercraft;
      (iii) Five hundred thousand dollars for any aircraft; and
      (iv)    Five thousand dollars for jewelry,      fur clothing,    or fur
  footwear.
      (6) The luxury tax shall be in addition to all other taxes.
       (7) The luxury tax shall be collected by the seller and remitted to
   and enforced by the Department of Revenue.
       (8) All taxes remitted to the Department of Revenue under this
  section shall be remitted to the State Treasurer for credit to the
  General Fund.
      (9) The Department of Revenue may adopt and promulgate rules and
  regulations to carry out this section.
      Sec. 4.       This act becomes operative on January 1, 2025.
       Sec.    5.      Original section    77-2701,      Revised Statutes Supplement,
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LB55                                                                                   LB55
                                                                                 2024
  2023, as amended by Laws 2024, LB937, section 67, Laws 2024, LB1023,
   section 8, and Laws 2024, LB1317, section 80; and section 77-2701.04,
  Revised Statutes Supplement,   2023,   as amended by   Laws   2024,   LB937,
  section 68, and Laws 2024, LB1317, section 82, are repealed.
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Statutes affected: 
Introduced: 77-2701, 77-2701.04