This bill amends several sections of the Reissue Revised Statutes of Nebraska concerning motor vehicle taxation and funding for local school systems. It allows county treasurers to retain one percent of motor vehicle tax proceeds for taxes paid before July 1, 2028, and two percent for those paid on or after that date. The bill introduces a new allocation structure for motor vehicle tax proceeds based on the tax district's classification, designating specific percentages for counties, local school systems, and cities or villages. Additionally, it establishes a motor vehicle tax supplement for local school systems, calculated as 40.8% of the motor vehicle tax allocated to them for the preceding three months, while also revising tax and fee schedules based on vehicle age. Moreover, the bill updates the Motor Vehicle Fee Fund provisions, specifying that money from this fund will be treated as local revenue for matching state sources, replacing the term funds. It clarifies that all receipts from the fund must be allocated for road, bridge, and street purposes, and modifies the local system formula resources to include penalties, and license money distributed in accordance with Article VII, section 5, of the Constitution of Nebraska, while removing and license fees. The bill also adds motor vehicle tax and motor vehicle tax supplement receipts to the list of actual receipts available for general fund operating expenditures and repeals original sections to ensure consistency in the updated language and definitions throughout the law.

Statutes affected:
Introduced: 79-1018.01