All Roll Calls
Yes: 158 • No: 0
NebraskaLB707A109th Legislature 1st and 2nd SessionslegislatureWALLET
Appropriation Bill
Sponsored By: R. Brad von Gillern
Signed by Governor
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 4 benefits, 4 costs, 5 mixed.
50% refund on development sales tax
Starting October 1, 2025, a Good Life district applicant or retailer can get back 50% of the state sales tax paid on qualifying new development costs for a new business, an additional retailer, or a relocated retailer. The refund is limited to the available excess allocation when the property is placed in service.
Huge project and jobs required
To qualify, projects must pass big size and jobs tests. Minimum new development costs are: $1 billion in a metropolitan city; $750 million in a primary city; $500 million in a first/second class city or village in a county of 100,000 or more; $100 million in smaller counties. New jobs must be: 1,000 in a metropolitan city; 500 in a primary city; 250 in larger counties’ smaller cities or villages; 50 in smaller counties. In counties with 100,000+ people, a project must show 20% of sales to out-of-state residents or at least 600,000 out-of-state visitors and 3,000,000 total visitors per year and attract new‑to‑market retail. In smaller counties, the 20% out-of-state sales test applies. Students at Nebraska universities do not count as out-of-state residents.
When a district must end
The Department must end a district if it misses investment milestones: at least 10% by year 3, 50% by year 7, and 75% by year 10. The Department must also end a district if the city or village does not set up the required program within 3 years, unless the city is the applicant or it is a metropolitan city with an enhanced employment area. When a district ends, any unspent, uncommitted money in its fund goes to the State General Fund, unless failure was caused by an act of God or a national emergency.
Tough application steps and tight caps
Applicants must certify the sales tax paid on development at least equals any state sales tax diverted by the project. Before approval, you must submit financing and viability proof, show land ownership or an option that requires purchase within 180 days, and disclose any ownership in existing retail in the district. If you do not own the property, the owner must sign a consent and revenue-rights waiver that binds future owners. The law caps Good Life districts at five statewide and only one in any county with 500,000+ people (not counting districts inside a qualified inland port district). The application window runs only through December 31, 2024.
State sales tax set at 5.5%
Beginning October 1, 2025, Nebraska’s state sales tax rate is 5.5%. This is the rate most shoppers pay on taxable items. Your change depends on the old rate and your taxable spending.
District size, term, and owner protections
A Good Life district lasts 30 years. Size limits apply: up to 2,000 acres in a metropolitan city, up to 3,000 acres in other cities or villages, or up to the size of a qualified inland port if inside one; all land must be contiguous. Within 12 months of approval or a boundary change, a city or village may request up to 1,000 more acres if it certifies the increase will not harm required criteria. Shrinking boundaries needs Department approval, mutual consent, owner consent or a hearing after 90 days’ certified notice, and confirmation that no pledged‑revenue parcels are removed; approved project areas cannot be removed. For districts over 1,000 acres, cities may adopt commercially reasonable design standards after a hearing. The Department shares district records with the city and may share confidential information with the Department of Revenue; it can make rules. The Act does not allow eminent domain to take land for private transfer.
City revenue tools and guardrails
A city can create a Good Life district program only after voters approve it, and must set aside the pledged local revenues. Cities may add a local sales and use tax in the program area up to 2.75% (or the difference from the state rate) and may dedicate a portion of existing local sales tax collected in the area to the program. Starting October 1, 2025, the state allocates 50% of certain state sales taxes from district activity to the city (one category is capped at $5 million per year), and these allocations count as local revenue; funds are remitted monthly with confidential reports. Before any payout, the city, applicant, and the Department must sign an MOU, and a trustee bank must release money only for eligible, evidenced costs. Ordinances must cap non‑revenue costs at 20% and pay program administrative costs first. In a metropolitan‑city district, once relocated retailers’ annual sales tax hits $5,000,000, extra lost state tax is offset from the city’s local sales tax remittance and credited to the State General Fund.
Lower sales tax in district areas
From July 1, 2023 to July 1, 2024, purchases inside a Good Life district are taxed at 2.75%. From July 1, 2024 to October 1, 2025, the 2.75% rate applies only in the city or village portion of a district. Starting October 1, 2025, covered purchases made inside a metropolitan-city Good Life district pay half the state rate. The half rate excludes sales of aircraft, ATVs, barges, cars, boats, railroad rolling stock, semitrailers, and trailers, and applies only to purchases that happen in the district and to sales by the district applicant or enhanced employment area retailers.
Cities must separate development program funds
Cities that run a good life district economic development program must keep its money in a separate fund. Only eligible costs can be paid, and the city must have proof before any payment or reimbursement. Bond proceeds go into this fund or to a bond trustee. If the program ends, any unpledged money moves to the city’s general fund only after all debts are paid and a final audit is done.
More project costs now eligible
Program funds can now pay for tech (hardware, software, and IP), marketing, tenant improvements, and tenant or customer acquisition and retention. Political subdivisions and state agencies with land in the area are treated like qualifying businesses and can receive reimbursements. Payments still must meet eligibility and proof rules.
Some projects cannot use program
Projects with a licensed racetrack or authorized gaming operator are ineligible, except narrow public‑use cases. Projects that already received Shovel‑Ready Capital Recovery and Investment Act or Economic Recovery Act funds are barred, unless inside a qualified inland port district. Any project that includes part of a public or private university is not eligible.
Old statute sections repealed
The law repeals listed statute sections from the 2024 supplement. This is a legal clean‑up and does not by itself change your taxes or benefits.
Retailer status rules in districts
The law defines how retailers are treated inside a Good Life district. An “additional” retailer opens a new in‑district site and keeps the new and all nearby existing sites for 3 years. A “relocated” retailer moves into the district and had no single nearby outside site at 100,000 sq. ft. or more when the district was created; this status ends after 10 years or if an outside site reaches 100,000 sq. ft. Some entities do not count as “new businesses,” including certain tax‑exempt entities and related‑party moves or deals.
Sponsors & Cosponsors
Sponsor
R. Brad von Gillern
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 6/2/2025
Final Reading
Yes: 49 • No: 0
legislature vote • 5/27/2025
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 5/15/2025
Vote
Yes: 33 • No: 0 • Other: 16
Actions Timeline
Approved by Governor on June 4, 2025
6/6/2025legislaturePassed on Final Reading with Emergency Clause 49-0-0
6/2/2025legislaturePresident/Speaker signed
6/2/2025legislaturePresented to Governor on June 2, 2025
6/2/2025legislaturePlaced on Final Reading
5/28/2025legislaturevon Gillern AM1510 adopted
5/27/2025legislatureAdvanced to Enrollment and Review for Engrossment
5/27/2025legislaturevon Gillern AM1510 filed
5/19/2025legislaturePlaced on Select File
5/19/2025legislatureAdvanced to Enrollment and Review Initial
5/15/2025legislatureDate of introduction
5/14/2025legislaturePlaced on General File
5/14/2025legislature
Bill Text
Introduced
6/6/2025
Enrolled / Slip Law
Final / Enacted