This bill amends sections of the Reissue Revised Statutes of Nebraska to update the provisions regarding negotiations and agreements between the Governor and federally recognized Indian tribes concerning the collection and dissemination of cigarette and tobacco product taxes. Key changes include the establishment of a tax refund formula that can be agreed upon between the Tax Commissioner and an Indian tribe, which would replace the traditional application process for tax refunds on exempt transactions. The bill specifies that the total refund provided to an Indian tribe under this formula cannot exceed the aggregate tax paid by the tribe on cigarettes sold in exempt transactions during the year. Additionally, it clarifies that refunds will not be available for transactions where a refund formula is in place.

The bill also outlines the Governor's responsibilities in negotiating agreements with Indian tribes, mandating good-faith negotiations within a specified timeframe upon receiving a written request from a tribe. It emphasizes that negotiations should not be hindered by unrelated governmental actions of the tribes and details the scope of negotiations, which includes tax collection, allocation, and refund processes. Furthermore, the bill requires that any agreements specify various operational aspects, including tax remittance and dispute resolution procedures. The state is also authorized to enter into agreements that allow for the use of tribal stamps for cigarette sales on tribal lands, thereby providing a framework for cooperation between state and tribal authorities in tax matters.

Statutes affected:
Introduced: 77-2602.05, 77-2602.06, 77-2603.01