This bill proposes significant amendments to Nebraska's revenue and taxation laws, particularly focusing on sales and use tax exemptions. It aims to eliminate certain exemptions and impose taxes on various services, including animal specialty services, hair care, and travel agency services. The legislation modifies the Mechanical Amusement Device Tax Act, clarifying that the occupation tax on mechanical amusement devices is in addition to any sales and use tax on their gross receipts. Key changes include the introduction of new categories for tax expenditure reporting and the removal of outdated exemptions, such as those for telefloral deliveries and film rentals. The bill emphasizes the necessity for a comprehensive tax expenditure report to assess revenue losses from existing exemptions and the implications of newly taxable services.

Furthermore, the bill stipulates that no political subdivision can impose additional taxes on mechanical amusement devices beyond those established by the Mechanical Amusement Device Tax Act, except for local option sales and use taxes. It also includes provisions for the repeal of certain sections of the Revised Statutes Cumulative Supplement, 2024, and specific sections of the Reissue Revised Statutes of Nebraska. The act is set to become operative on October 1, 2025, providing a transition period for the implementation of the new regulations.

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