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 fees retained by county treasurers from one percent to two percent, and a reallocation of motor vehicle tax proceeds. The new allocation specifies that forty percent will go to the county, thirty-seven percent to local school systems or school districts, and twenty-three percent to cities or villages. Additionally, the bill introduces new motor vehicle tax schedules that adjust the tax rates based on the age of the vehicle, with significant reductions for older vehicles, and establishes a new base fee structure for various types of vehicles.

The bill also modifies the motor vehicle fee structure, increasing fees for certain categories of vehicles while introducing new fees for others. For example, the base fee for automobiles valued under $20,000 increases from $5 to $20, while the fee for trucks over seven tons is set at $60 plus an additional $2 for each whole ton over seven tons. The bill establishes the Motor Vehicle Fee Fund, which will distribute funds to counties and municipalities for road, bridge, and street purposes, with a new distribution ratio of seventy percent to counties and thirty percent to municipalities. The act is set to become operative on January 1, 2026, and repeals the original sections of the statutes it amends.