This bill amends the Mechanical Amusement Device Tax Act to enhance the licensing and regulation of distributors and manufacturers of cash devices in Nebraska. Key provisions include the introduction of a biennial licensing fee structure for distributors, set at $200 per device and capped at $10,000, with fees remitted to the Department of Revenue Enforcement Fund. Additionally, the bill requires background checks for distributor license applicants, allowing for denial based on criminal history or violations of the act. Manufacturers are also subject to a biennial licensing requirement with a fee of $10,000, and they must remove non-compliant devices within thirty days of a determination by the Department of Revenue.

The bill further modifies the occupation tax structure for mechanical amusement devices that are not cash devices, adjusting the tax to $35 before January 1, 2027, and reducing it to $20 for devices placed in operation after July 1 of each year. Starting in 2027, the tax will increase to $70 and will be adjusted annually for inflation based on the Producer Price Index. The allocation of collected occupation taxes will be 20% to the Department of Revenue Enforcement Fund and 80% to the General Fund. Certain sections of existing law are repealed to implement these changes, thereby streamlining the regulatory framework surrounding mechanical amusement devices in the state.

Statutes affected:
Introduced: 77-3003, 77-3003.01, 77-3003.03, 77-3004