This bill amends sections 77-2701.02 and 77-27,132 of the Revised Statutes Cumulative Supplement, 2024, to modify the sales and use tax rates in Nebraska. 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, yet to be determined (marked as XX percent), will take effect. The bill also specifies that the two and three-quarters percent rate will apply to transactions in good life districts located within city or village limits.

Additionally, the bill outlines changes to the allocation of sales and use tax proceeds. It specifies that for transactions occurring on or after 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. The bill also adjusts the allocation of excess sales tax proceeds from vehicle sales to the Highway Allocation Fund, replacing the previous fixed rate of five percent with a new rate (also marked as XX percent). The act is set to become operative on July 1, 2026, and repeals the original sections of the law.

Statutes affected:
Introduced: 77-2701.02