The proposed bill introduces the Nebraska EPIC Option Consumption Tax Act, which aims to fundamentally overhaul the state's tax structure by eliminating property tax, income tax, inheritance tax, and sales and use taxes effective December 31, 2027. Starting January 1, 2028, a consumption tax of seven and one-half percent will be imposed on the use or consumption of taxable property or services, with local governments allowed to impose an additional tax of up to one percent. The bill includes definitions for key terms related to the consumption tax and emphasizes the rights of Nebraska citizens to ensure a fair tax system, prohibiting taxes on groceries for off-premises consumption and on manufacturing materials.

Additionally, the bill outlines the administration and collection of the consumption tax, requiring the Department of Revenue to provide online tax forms and mandating that registered sellers remit taxes on wages monthly. It establishes penalties for non-compliance, clarifies the burden of proof in tax disputes, and creates a framework for tax-exempt certificates for businesses. The bill also introduces provisions for the assessment and funding of county services, including the creation of various funds to support education and local governance. Overall, the legislation aims to streamline tax processes, enhance financial management, and ensure adequate funding for public services in Nebraska.

Statutes affected:
Introduced: 13-319, 13-501, 13-2813, 18-2147, 77-201, 77-2004, 77-2005, 77-2006, 77-2701, 77-3506, 77-3507, 77-3508, 77-6406, 77-6827, 79-1001, 85-2231