This bill proposes significant amendments to Nebraska's revenue and taxation laws, particularly focusing on sales and use tax exemptions. It seeks to eliminate certain exemptions and impose sales and use taxes on various services, including animal specialty services and veterinary services for livestock. Additionally, the bill modifies the Mechanical Amusement Device Tax Act by ensuring that the occupation tax imposed is in addition to any sales and use tax on gross receipts from mechanical amusement devices. It also requires the preparation of a tax expenditure report to detail revenue losses from tax exemptions and the implications of not imposing sales and use tax on nonbusiness services.

Moreover, the bill repeals several existing sections related to sales tax exemptions and harmonizes provisions across relevant statutes. It introduces new definitions and categories for gross receipts, expanding taxable services to include personal and professional services such as hair care, massage, and travel agency services. The bill clarifies that no political subdivision can levy additional taxes on mechanical amusement devices, except for local option sales and use taxes. The changes are set to take effect on October 1, 2025, and include provisions for the repeal of original sections of the Revised Statutes Cumulative Supplement, 2024, as well as specific sections of the Reissue Revised Statutes of Nebraska, thereby streamlining the tax framework.

Statutes affected:
Introduced: 77-382, 77-2701.16, 77-3005