All Roll Calls
Yes: 86 • No: 0
NebraskaLB208109th Legislature 1st and 2nd SessionslegislatureWALLET
Change provisions relating to sales tax collection fees, confidentiality of sales tax information, the streamlined sales and use tax agreement, a sales tax database, and certain income tax credits
Sponsored By: R. Brad von Gillern
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 4 benefits, 0 costs, 4 mixed.
Refundable child care credit for families
Beginning January 1, 2024, Nebraska parents and guardians can get a refundable child care tax credit. You get $2,000 per child if household income is $75,000 or less, or $1,000 per child if income is over $75,000 up to $150,000. No credit applies above $150,000. The child must be in licensed care or with an approved license‑exempt provider. You must apply, and the state approves claims in order until $15 million is used each year.
Tax credit for donating food
Starting January 1, 2025, grocery stores, restaurants, and farm producers can claim a state income tax credit for donating qualifying Nebraska‑grown food. The credit equals 50% of the donation’s value, up to $2,500 per year. Unused amounts carry forward up to three years. You must apply and be approved; the state can approve up to $500,000 in credits each year and prorates if requests exceed that cap. Donors who employ unauthorized workers are not eligible.
Annual cap on a state tax credit
The Department may approve up to $1,000,000 in credits in fiscal year 2024‑25 and up to $1,500,000 each year after. Once the yearly cap is reached, no more credits are allowed that year. If many requests arrive the day the cap is exceeded, credits are prorated among those requests.
Marketplace platforms collect tax for sellers
When a marketplace platform collects and pays Nebraska sales tax, the individual seller is relieved from collecting that tax on those platform sales. The seller still reports the sales in gross receipts and can claim credit for tax the platform paid. A marketplace can avoid liability for wrong amounts if it proves the seller gave incorrect or incomplete information. Relief does not apply when the seller and platform are related persons or when the seller is the platform operator.
Sales tax filing rules and fees
Filing frequency now depends on yearly tax: under $900 file yearly, $900 to under $3,000 file quarterly, and $3,000 or more file monthly. You must do an annual reconciliation; if the difference is over 10% of what you paid, the penalty is 50% of that difference. Most taxpayers can keep a collection fee equal to 3% of the first $5,000 remitted each month (up to $150). Model 1 sellers using a certified service provider paid under the streamlined system do not get this fee. The Tax Commissioner can allow different schedules for seasonal sellers and some electronic payers.
Free tax-rate tools and seller protections
The state provides free, downloadable tax‑rate and boundary databases, or can designate a vendor to provide them at no cost. Retailers and certified service providers that rely on these approved databases are protected from liability when wrong tax was charged because of bad state data. This protection does not apply when a buyer receives the product at the seller’s business location. A member state can end this relief after notice, and the state can extend relief for undue hardship. New streamlined registrants do not have to collect until the first day of the calendar quarter that starts more than 60 days after the databases are provided.
Stronger privacy for sales tax data
Certified service providers that handle sales tax for certain sellers must keep buyers anonymous. They may keep personal data only to manage tax exemptions. They must post a privacy notice, limit data use and storage, and let people see or correct their data. The Nebraska Attorney General enforces these rules.
Cities can review local tax returns
Cities and villages can review confidential sales and use tax returns for businesses inside their borders. The city must certify one reviewer and give the state at least 10 business days to prepare records. Reviews usually happen at the tax department unless both sides agree to electronic access. The reviewer must keep information confidential; illegal sharing is a Class I misdemeanor. The state tax department is not liable for a city’s disclosure.
Sponsors & Cosponsors
Sponsor
R. Brad von Gillern
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 2/21/2025
Final Reading
Yes: 47 • No: 0 • Other: 2
legislature vote • 1/31/2025
Vote
Yes: 39 • No: 0 • Other: 10
Actions Timeline
Approved by Governor on February 25, 2025
2/26/2025legislatureDispensing of reading at large approved
2/21/2025legislaturePassed on Final Reading 47-0-2
2/21/2025legislaturePresident/Speaker signed
2/21/2025legislaturePresented to Governor on February 21, 2025
2/21/2025legislaturePlaced on Final Reading
2/19/2025legislatureAdvanced to Enrollment and Review for Engrossment
2/13/2025legislaturePlaced on Select File
2/6/2025legislatureAdvanced to Enrollment and Review Initial
1/31/2025legislaturePlaced on General File
1/28/2025legislatureReferred to Revenue Committee
1/16/2025legislatureNotice of hearing for January 24, 2025
1/16/2025legislatureDate of introduction
1/14/2025legislature
Bill Text
Introduced
2/26/2025
Enrolled / Slip Law
Final / Enacted