The proposed bill introduces the Nebraska EPIC Option Consumption Tax Act, which aims to significantly overhaul the state's tax structure by eliminating various existing taxes, including property, income, corporate, inheritance, sales, and use taxes, as well as the motor vehicle tax and fees, effective December 31, 2027. A new consumption tax of 7.5% will be implemented on the use or consumption of taxable property or services starting January 1, 2028, with local governments permitted to impose an additional consumption tax of up to 1%. The bill also includes provisions for tax administration, defining the roles of registered sellers and the Tax Commissioner, and emphasizes that the state will not impose taxes on income, property already owned, or estates of deceased persons.

Additionally, the bill outlines various amendments to the Nebraska EPIC Option Consumption Tax Act, focusing on the administration and compliance of the consumption tax. It establishes requirements for tax forms, payment timelines, and reporting obligations for registered sellers, particularly large sellers who must remit taxes weekly. The bill also introduces exemptions for certain transactions and creates funds to support counties and educational institutions. It mandates the establishment of committees and commissions to assess and address the needs of public school districts, while also modifying existing laws regarding property tax exemptions and funding for educational institutions. Overall, the legislation aims to create a comprehensive and fair tax system in Nebraska, transitioning to a consumption-based model while ensuring adequate funding for essential services.

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