County funds for motor vehicle sales tax collection approved

Senators passed a bill May 2 that reinstates a commission counties receive in return for collecting state motor vehicle tax.

Sen. Sue Crawford
Sen. Sue Crawford

County treasurers may withhold 2.5 percent of the first $3,000 in state motor vehicle sales and use tax that they remit. Under LB237, introduced by Bellevue Sen. Sue Crawford, counties also may withhold 0.5 percent of all amounts in excess of $6,000 remitted each month.

Prior to Jan. 1, 2023, the amount withheld will be split between a county’s general fund and a county’s road fund. After that, 75 percent will be deposited in a county’s general fund, and 25 percent will be deposited in a county’s road fund.

The bill also requires county treasurers in counties with a population of 150,000 or more to remit $1 of the collection fee for each of the first 5,000 motor vehicles, semitrailers or trailers registered on or after Jan. 1, 2020, to the state treasurer, who will credit the amount to the Department of Revenue Enforcement Fund.

LB237 passed on a vote of 44-4.

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