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NebraskaLB613109th Legislature 1st and 2nd Sessionslegislature

Change provisions relating to the disclosure of tax information to municipalities

Sponsored By: Bob Andersen

Signed by Governor

Revenue Committee

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 1 costs, 2 mixed.

Smoother timing for city tax refunds

The law smooths how city and village sales and use tax refunds are taken out of monthly remittances. For first- and second-class cities and villages, deductions start one year after the refund is paid; for refunds over $1,500 the state gives notice and, if a refund is over 25% of last year’s net receipts, spreads it over 12 months after the one‑year delay. For metropolitan and primary class cities, starting in 2024 the state estimates next year’s refunds by March 1 and deducts them in 12 equal monthly amounts the following year, with annual true‑ups beginning in 2025. For ImagiNE Nebraska and Urban Redevelopment refunds that exceed the lesser of $1,000,000 or 25% of last year’s receipts, the state also notifies by March 1 and deducts the amount in 12 equal monthly payments starting the next January, carrying forward any prior year differences. Cash set aside to pay these refunds does not count against city restricted‑fund caps, cash‑reserve limits, or the property tax growth limit.

Cities get tools to see tax data

A city with a local option sales and use tax can ask for a list of retailers collecting its tax up to three times a year. The city may also certify an employee to receive confidential sales and use tax returns (including location amounts) or business use tax returns; the state has at least 10 business days and can send them securely. That person may share records only to check collections and forecasts, verify allocations, or confirm taxes are used for the voter‑approved purpose; improper disclosure is a Class I misdemeanor and duties continue after employment ends. Each year by June 30, a city may also request a list of local businesses that applied for state incentive programs.

Unclaimed local tax supports equalization fund

If local option tax money cannot be tied to a city within six months, the money goes to the Municipal Equalization Fund. This keeps unidentified receipts supporting statewide municipal equalization.

Incentive businesses must report to cities

If your business applied for the listed Nebraska incentive programs, you must give each city an annual report by June 30. Provide the maximum local sales and use tax refunds you can get this year, the exemptions you took last year, and your estimate for future years. The report is in aggregate and stays confidential unless already public.

Old tax sections repealed in update

The law repeals sections 77-2711, 77-27,144, and 77-5725 of Nebraska statutes.

Data center permits and reporting rules

Within 60 days after January 1, 2023, qualifying large data center and related projects receive a direct‑pay permit unless they opt out. Permit holders must keep paying any sales and use taxes until they meet job and investment targets in their agreement. They must also follow disclosure rules, including sharing required data with any city that would have received tax but for an exemption.

Sponsors & Cosponsors

Sponsor

  • Bob Andersen

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 78 • No: 3

legislature vote • 5/30/2025

Final Reading

Yes: 45 • No: 3 • Other: 1

legislature vote • 4/3/2025

Vote

Yes: 33 • No: 0 • Other: 16

Actions Timeline

  1. Approved by Governor on June 4, 2025

    6/4/2025legislature

  2. Presented to Governor on May 30, 2025

    5/30/2025legislature

  3. President/Speaker signed

    5/30/2025legislature

  4. Passed on Final Reading 45-3-1

    5/30/2025legislature

  5. Dispensing of reading at large approved

    5/30/2025legislature

  6. Placed on Final Reading

    4/22/2025legislature

  7. Advanced to Enrollment and Review for Engrossment

    4/17/2025legislature

  8. Placed on Select File

    4/10/2025legislature

  9. Advanced to Enrollment and Review Initial

    4/3/2025legislature

  10. Speaker priority bill

    3/17/2025legislature

  11. Placed on General File

    2/25/2025legislature

  12. Notice of hearing for February 20, 2025

    2/11/2025legislature

  13. Referred to Revenue Committee

    1/24/2025legislature

  14. Date of introduction

    1/22/2025legislature

Bill Text

  • Introduced

    1/22/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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