This bill amends several sections of the Reissue Revised Statutes of Nebraska related to motor vehicle taxes and fees. Key changes include an increase in the percentage of motor vehicle tax proceeds retained by county treasurers from one percent to two percent, and a new allocation structure for the remaining tax proceeds. Specifically, the bill adjusts the distribution percentages for counties, local school systems, and cities or villages, with counties receiving an increased share of forty percent, local school systems thirty-seven percent, and cities or villages twenty-three percent. Additionally, the bill introduces new motor vehicle tax schedules that lower the tax rates for older vehicles and establishes a new base tax structure for various vehicle categories.

The bill also revises the motor vehicle fee structure, increasing fees for certain vehicle types while introducing new fees for others. For example, the base fee for automobiles valued under $20,000 is raised from $5 to $20, while the fee for trucks over seven tons is set at $60 plus an additional $2 for each ton over seven. The bill establishes the Motor Vehicle Fee Fund, which will distribute funds to counties and municipalities for road, bridge, and street purposes. The act is set to become operative on January 1, 2026, and repeals the original sections of the statutes that are being amended.