This bill proposes amendments to the sales and use tax rates in Nebraska, specifically altering the provisions in sections 77-2701.02 and 77-27,132 of the Revised Statutes Cumulative Supplement, 2024. The bill establishes that the sales tax rate will remain at five and one-half percent until July 1, 2024, with a reduced rate of two and three-quarters percent for transactions within designated good life districts. Starting July 1, 2024, the sales tax will continue at five and one-half percent until July 1, 2026, after which a new rate, denoted as XX percent, will take effect. The bill also clarifies that the reduced rate for good life districts will persist under the new tax structure.

Additionally, the bill modifies the allocation of sales and use tax proceeds collected under the Nebraska Revenue Act of 1967. It specifies that from July 1, 2024, proceeds from certain vehicle sales will be credited to the Game and Parks Commission Capital Maintenance Fund and the Nebraska Emergency Medical System Operations Fund, while proceeds from motor vehicle sales exceeding the new tax rate will be allocated to the Highway Allocation Fund. The bill will become operative on July 1, 2026, and repeals the original sections of the law that it amends.

Statutes affected:
Introduced: 77-2701.02