This legislative bill proposes significant amendments to Nebraska's tax laws, particularly concerning sales and use tax exemptions and the taxation of specific services. It eliminates certain exemptions, such as those for mineral oil as a dust suppressant and telefloral deliveries, while introducing sales and use taxes on services including animal specialty services, hair care, and cleaning services. The bill also revises the Mechanical Amusement Device Tax Act and the Tax Expenditure Reporting Act, and it modifies provisions related to the Nebraska Job Creation and Mainstreet Revitalization Act. Additionally, it mandates the preparation of a tax expenditure report to detail revenue loss from tax exemptions and the impact of not imposing sales and use tax on nonbusiness services.

Furthermore, the bill clarifies and expands definitions related to gross income and applicable exemptions, including a comprehensive list of services considered as gross income and the inclusion of digital products and multivendor marketplace receipts. It updates the definition of manufacturing machinery and equipment, ensuring only depreciable items are exempt from sales and use tax. The bill also introduces provisions for adjusting federal adjusted gross income based on contributions to educational savings plans and outlines the treatment of military retirement benefits and medical debt relief. It establishes new definitions for capital gains related to gold and silver bullion and sets a new application deadline for the Nebraska Job Creation and Mainstreet Revitalization Act. Overall, the bill aims to modernize Nebraska's tax code, enhance transparency, and clarify tax obligations for individuals and businesses.

Statutes affected:
Introduced: 77-382, 77-2701.16, 77-2701.47, 77-2704.36, 77-2716, 77-2912, 77-3005