This bill amends section 77-27,143 of the Reissue Revised Statutes of Nebraska to establish a comprehensive address-based boundary database for assigning local taxing jurisdictions and their associated rates. The state will maintain this database, which will include details on boundary changes and effective dates for sales and use tax purposes. Additionally, the bill mandates that the state provide and maintain a separate database that assigns each five-digit and nine-digit zip code within Nebraska to the appropriate tax rates and jurisdictions. This zip code boundary database will be used in conjunction with the address-based boundary database and will apply the lowest combined tax rate in areas with multiple tax rates.

The bill also includes provisions for liability relief for retailers and certified service providers who rely on the databases provided by the state, protecting them from penalties for incorrect tax charges due to erroneous data. The Tax Commissioner is tasked with adopting rules and regulations to ensure the accuracy of the databases, including verification of addresses and tax rates used in transactions. The act is set to become operative on January 1, 2026, and it repeals the original section 77-27,143.