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
11 provisions identified: 2 benefits, 2 costs, 7 mixed.
State shares 50% of GLD sales taxes
Beginning October 1, 2025, the Tax Commissioner allocates 50% of state sales taxes from qualifying sales in a city’s Good Life District to that city. Some existing‑retailer allocations are capped at $5,000,000 each year. The law also allows allocating 50% of state sales tax paid on qualifying new development costs. The Commissioner sends the money monthly, deducts refunds, and provides a confidential report with parcel, applicant, retailer, sales, and remittance details. “Allocated sales taxes” are those assigned to cities on or after October 1, 2025.
What project costs the program pays
The law expands eligible costs to include right‑of‑way work (streets, signage, lighting, refuse, landscaping), technology assets and software, marketing, tenant improvements, and city program costs. New development costs include construction and improvements to real property and equipment bought for use in the district. Nonrevenue‑producing costs include private property work not expected to generate local revenue and operating costs of non‑government businesses. A city’s program may spend no more than 20% of disbursements on nonrevenue‑producing costs.
No taking property for private gain
Cities cannot use eminent domain in a Good Life District to take property and give or sell it to a private person or company.
State cap on Good Life Districts
The law limits Good Life Districts to five statewide. In counties with 500,000 or more people, only one district is allowed. The one-per-county limit does not apply inside a qualified inland port district. The law also repeals the older GLD statutes that this act replaces.
No building-materials tax break for cities
When a political subdivision is the district applicant, it cannot claim a sales tax exemption on building materials for a new business that will make taxable sales in the district.
Temporary lower sales tax in districts
From July 1, 2023 to July 1, 2024, state sales tax inside a Good Life district is 2.75% instead of 5.5%. From July 1, 2024 to October 1, 2025, the 2.75% rate applies only in the part of a district inside a city or village. Starting October 1, 2025, the state sales tax is 5.5% everywhere again.
City revenue tools and fund safeguards
Cities with a Good Life program may impose a general business occupation tax inside the district by ordinance. They may also dedicate part of their local option sales tax from transactions inside the district to the program. Cities must keep a separate Good Life fund and may set subaccounts at a trustee bank; one subaccount can cover public right‑of‑way services like streets and lighting. The fund can pay businesses only for eligible costs, and only after proof.
How to apply and report
You can apply to create a Good Life district until December 31, 2024 with a full project plan, map, costs, jobs, and financing. Applications are confidential, except location, estimated total new development costs, and estimated new jobs are public. The Department accepts investment evidence from any source tied to the project; a city or village certification is conclusive. Each year by December 31, the district applicant and anyone getting allocated or reduced sales tax must file a report. The Departments of Economic Development and Revenue may share confidential data to run the program. The Department can set rules for the program and for MOU content. The Act takes effect immediately.
Project areas and required agreements
A district can have up to six project areas in certain cities and villages; in a metropolitan city, only the district applicant’s single project area is allowed. The district applicant gets a 90‑day priority window to apply; others may apply after, but approvals wait unless the applicant files or is approved with an agreement. Before any payments, the city, the applicant, and the state must sign an agreement that sets development and financing duties and follows city program ordinances. The agreement must name a trustee bank and account for the project area. Funds go only to that trustee bank, which may pay only eligible costs incurred on or after the project area’s start date and must keep and share annual records.
When districts end and money moves
The Department ends a district if the host city or village does not set up a Good Life program within three years, with set exceptions. A district may also be ended early at the applicant’s request; if project areas exist, the city or village may request it. When a district is terminated, any unencumbered program funds go to the State General Fund, unless failure was due to an act of God or a national emergency. When a program ends, leftover program money not pledged, not committed, and not required to be sent to the state goes to the city’s general fund after all obligations are cleared and a final audit is done.
Who qualifies as businesses and retailers
Qualifying business now includes related persons and some government entities that overlap the district. A “new business” is one not licensed and located in the district or within 40 miles before the district began; it excludes residential parts and some tax‑exempt entities. A “relocated retailer” is one that moves into the district from within 40 miles and had under 100,000 square feet at any single prior site; this status ends after 10 years or when the retailer exceeds 100,000 square feet.
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 • 5/27/2025
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 5/15/2025
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • Unknown
Vote
Yes: 38 • No: 0 • Other: 11
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
6/2/2025legislaturePlaced on Final Reading
5/28/2025legislatureAdvanced to Enrollment and Review for Engrossment
5/27/2025legislaturevon Gillern AM1510 adopted
5/27/2025legislaturePlaced on Select File
5/19/2025legislaturevon Gillern AM1510 filed
5/19/2025legislatureAdvanced to Enrollment and Review Initial
5/15/2025legislaturePlaced on General File
5/14/2025legislatureDate of introduction
5/14/2025legislature
Bill Text
Introduced
5/14/2025
Enrolled / Slip Law
Final / Enacted