All Roll Calls
Yes: 750 • No: 2
NebraskaLB707109th Legislature 1st and 2nd SessionslegislatureWALLET
Change provisions relating to the sales tax rate, the Good Life Transformational Projects Act, and the Good Life District Economic Development Act
Sponsored By: R. Brad von Gillern
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
16 provisions identified: 4 benefits, 3 costs, 9 mixed.
Refunds for project building costs
Beginning October 1, 2025, a Good Life District applicant or retailer can get a refund equal to 50% of the state sales tax paid on eligible new development costs. This can apply to a new business, an additional in‑district retailer, or a relocated in‑district retailer. The refund is only paid if there is enough excess allocation when the property is placed in service.
Cities get 50% of district sales taxes
Beginning after October 1, 2025, the Tax Commissioner sends cities 50% of specific state sales taxes from sales that happen inside the city’s Good Life District area. The 50% applies to taxes from new retailers in the district, from retailers that were already operating there (capped at $5,000,000 per year for that group), and from taxes paid on qualifying new development costs. Allocations are sent monthly after refunds are deducted. Starting October 1, 2025, these are the "allocated sales taxes" under the Act.
New local taxes in districts
When a city sets up a Good Life District, it can adopt a local occupation tax on businesses and users of space inside the district. The city also may set aside part of its local option sales tax from transactions inside the district to fund the program. Businesses in the district face new local tax exposure and collection rules set by the city.
More eligible costs but 20% cap
District funds can now pay for more items, like streets, signage, lighting, refuse service, landscaping, technology assets, marketing, tenant improvements, and city costs to run the program. Funds can also cover some non‑revenue‑producing private property and certain operating costs for qualifying private businesses. But no more than 20% of all program payments in a year can go to non‑revenue‑producing costs.
State rules, data sharing, and transparency
The Department of Economic Development must set rules or guidance and timelines for approving project areas. The Departments of Economic Development and Revenue can share information, including confidential data, to run the programs. The Department can adopt rules to carry out both the Good Life Transformational Projects Act and the Good Life District Economic Development Act. When a district is approved, the Department must give the city the application, approval, maps, retailer lists, and related records, and provide ownership updates to the Department of Revenue.
How project money moves and pays costs
Before any project money is paid, the city, the applicant, and the state must sign an MOU. The MOU must spell out development work, local revenue pledged, any bonds, and the timing. Each project area must have a trustee bank, and the Tax Commissioner sends its funds only to that bank. Local revenue from inside the area must pay eligible project costs, and trustee accounts are part of the city’s Good Life fund. The Department can set detailed MOU rules, and the MOU can include subaccounts, recordkeeping, and steps to speed permitting.
No sales‑tax break for public applicants
If the Good Life District applicant is a political subdivision, it is not exempt from sales tax on building materials for a new business that will make taxable sales in the district. This raises construction costs for public applicants or their project sponsors.
City sales-tax offsets after $5M
Beginning October 1, 2025, in a metropolitan‑class city’s district area, once relocated district retailers reach $5,000,000 in annual in‑district sales, the State reduces the city’s local sales‑tax remittance to cover extra lost state sales tax. The offset is credited to the State’s General Fund. The Tax Commissioner tells the city the offset each month. The city may use its enhanced employment area occupation tax to help cover the offset.
Lower sales tax inside districts
From July 1, 2023 to July 1, 2024, purchases inside a Good Life District pay a 2.75% state sales tax. From July 1, 2024 to October 1, 2025, the 2.75% rate only applies inside the part of a district that lies within a city or village. Starting October 1, 2025, the normal statewide state sales tax is 5.5%. On and after that date, qualifying in‑city purchases in a metropolitan‑class city Good Life District pay half the state rate (many vehicle and vessel sales are excluded). This means some in‑district shopping stays cheaper, but the broader temporary discount ends in 2025.
Design rules for new district construction
The Department can set design standards for all new construction inside a Good Life District. Standards must be commercially reasonable, follow industry practice, not conflict with building codes, and not place an undue burden on owners. For districts over 1,000 acres, a city or village can approve development and design standards after a hearing with at least 180 days’ notice. These rules cannot force owners to use specific contractors or suppliers.
Who can apply and in what order
In a metropolitan‑class city, only the district applicant can be a project area applicant. The Department cannot approve other project area applications until the district applicant’s project area is approved and the MOU is signed, or until 90 days pass without the applicant filing. The Department must accept investment commitment evidence tied to the project; a city or village certification is conclusive. More entities count as a qualifying business, and related persons can be treated as the district applicant.
District size, term, and property protections
A Good Life District lasts 30 years and must be in one piece. It can be up to 2,000 acres in a metropolitan‑class city, 3,000 acres elsewhere, or the size of a qualified inland port district. After approval, you cannot add property to a district. The law also bars taking property in a district by eminent domain to give or sell it to a private party.
New definitions, immediate start, old laws repealed
The law updates key terms, including who counts as a district applicant or retailer and what costs qualify for new development. Because of the emergency clause, the act takes effect when it is signed. The law also repeals older sections to replace them with this updated framework.
Rules for holding and spending district funds
Cities must keep a separate Good Life District fund and may set up subaccounts. Idle money must be invested under state rules. Trustee banks can only pay eligible costs that happen on or after a project’s establishment date and must keep and share yearly records. Local revenue streams for a district stay in place until the program ends. When a program ends, unpledged balances and later receipts go to the city’s general fund, and the fund can close only after all obligations are done and a final audit is complete. Revenue previously pledged for bonds or contracts before project establishment notice stays exempt from the new MOU subsection.
Reports, checks, and when districts end
Applicants must give a pre‑approval report showing financing, land ownership or a 180‑day option, and any retail interests. The Department can accept evidence of new development costs from the applicant, the city or village, or others. Each year by December 31, the district applicant and anyone receiving allocated or reduced sales taxes must report to the state and the city. The Department must end a district if the city does not set up the local program within three years, with listed exceptions. On termination, unspent district funds go back to the State General Fund, unless failure was due to an act of God or a national emergency. Applicants or cities can also ask to end a district early.
Rules to set up project areas
To make a project area inside a Good Life District, the applicant must show it controls the property and that the plan is viable. The district applicant gets the first 90 days to file; others can file after. Project areas cannot overlap, and in larger cities or villages in counties of 100,000 or more, there can be up to six project areas. Approved areas are fixed to the map and last as long as the district, and the Department cannot remove an approved project area. The Department can remove only parcels the applicant no longer controls and can approve expansions only for property the applicant controls that is already inside the district.
Sponsors & Cosponsors
Sponsor
R. Brad von Gillern
Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 6/2/2025
Final Reading
Yes: 49 • No: 0
legislature vote • 5/29/2025
Vote
Yes: 46 • No: 0 • Other: 3
legislature vote • 5/29/2025
Select File
Yes: 44 • No: 0 • Other: 5
legislature vote • 5/27/2025
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 5/27/2025
Vote
Yes: 36 • No: 1 • Other: 12
legislature vote • 5/27/2025
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 5/27/2025
Vote
Yes: 40 • No: 0 • Other: 9
legislature vote • 5/27/2025
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 5/27/2025
Vote
Yes: 40 • No: 0 • Other: 9
legislature vote • 5/9/2025
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 5/9/2025
Vote
Yes: 34 • No: 0 • Other: 15
legislature vote • Unknown
Vote
Yes: 34 • No: 0 • Other: 15
legislature vote • Unknown
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • Unknown
Vote
Yes: 36 • No: 1 • Other: 12
legislature vote • Unknown
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • Unknown
Vote
Yes: 40 • No: 0 • Other: 9
legislature vote • Unknown
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • Unknown
Vote
Yes: 40 • No: 0 • Other: 9
legislature vote • Unknown
Vote
Yes: 46 • No: 0 • Other: 3
Actions Timeline
Approved by Governor on June 4, 2025
6/4/2025legislaturePresented to Governor on June 2, 2025
6/2/2025legislaturePresident/Speaker signed
6/2/2025legislaturePassed on Final Reading with Emergency Clause 49-0-0
6/2/2025legislatureDispensing of reading at large approved
6/2/2025legislaturePlaced on Final Reading Second
5/29/2025legislatureAdvanced to Enrollment and Review for Reengrossment
5/29/2025legislaturevon Gillern AM1642 adopted
5/29/2025legislatureReturned to Select File for specific amendment
5/29/2025legislaturevon Gillern AM1642 filed
5/29/2025legislatureEnrollment and Review ST44 recorded
5/28/2025legislatureEnrollment and Review ST44 filed
5/28/2025legislaturePlaced on Final Reading with ST44
5/28/2025legislatureAdvanced to Enrollment and Review for Engrossment
5/27/2025legislaturevon Gillern AM1560 adopted
5/27/2025legislatureBostar AM1573 adopted
5/27/2025legislatureBostar AM1573 to AM1560 filed
5/27/2025legislaturevon Gillern FA287 adopted
5/27/2025legislaturevon Gillern FA287 to AM1560 filed
5/27/2025legislatureQuick AM1581 adopted
5/27/2025legislatureQuick AM1581 to AM1560 filed
5/27/2025legislaturevon Gillern FA286 adopted
5/27/2025legislaturevon Gillern FA286 to AM1560 filed
5/27/2025legislatureHoldcroft AM1599 adopted
5/27/2025legislatureHoldcroft AM1599 pending
5/27/2025legislature
Bill Text
Introduced
1/22/2025
Enrolled / Slip Law
Final / Enacted
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