The proposed bill introduces the Nebraska EPIC Option Consumption Tax Act, which aims to repeal 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 outlines the roles of registered sellers and the Tax Commissioner in enforcing the new tax system, ensuring that the state does not impose taxes on income, property already owned, or estates of deceased persons, while also establishing rights for citizens regarding taxation.

Additionally, the bill includes provisions for the administration of the consumption tax, such as online availability of tax forms, payment requirements for large sellers, and the establishment of tax-exempt certificates for businesses. It emphasizes the importance of accurate record-keeping and compliance, with penalties for non-compliance and the Tax Commissioner granted authority to conduct audits. The bill also introduces new provisions for funding and support for counties and school districts, including the creation of various funds and committees aimed at improving financial management and addressing the needs of public education in Nebraska. Overall, the legislation seeks to streamline tax processes and enhance the financial framework for both local governments and educational institutions.

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