This legislative bill amends various sections of the Nebraska Revised Statutes to enhance the taxation framework for partnerships and small business corporations, as well as to improve procedures related to notices of deficiency determinations and claims for refunds. Key provisions include a requirement for the Tax Commissioner to provide a detailed written statement explaining the reasons for disallowing a refund claim, including the relevant facts and circumstances. The bill also mandates that affected municipalities be notified of significant refund claims and allows for the option to deduct such refunds from tax proceeds. Additionally, it introduces new filing frequency provisions for sales and use tax returns based on yearly tax liability and enables retailers using multivendor marketplace platforms to claim credits for taxes collected by those platforms.

Furthermore, the bill allows partnerships and small business corporations to make an irrevocable election to pay taxes at the entity level, with specific conditions for tax years beginning on or after January 1, 2018. It clarifies the tax obligations of nonresident partners and shareholders, including provisions that allow nonresident shareholders to avoid filing a Nebraska tax return under certain conditions. The bill also enhances notification requirements for the Tax Commissioner regarding proposed deficiency determinations and claims for refunds, ensuring that notices include a written statement detailing the facts and reasons for the determinations. Additionally, it repeals several original sections of the Revised Statutes, indicating a significant restructuring of the tax refund process within the Nebraska tax code.

Statutes affected:
Introduced: 77-2708, 77-2709, 77-2727, 77-2734.01, 77-2776, 77-2786, 77-2796