Revenue omnibus bill approved
Senators passed a package of revenue-related bills May 30, including a measure under which Nebraska educational savings plan trust accounts may be used to pay for private K-12 education.
The Revenue Committee introduced LB647 as a shell bill. It was amended to include provisions of seven other bills considered by the committee this session.
Under the amended provisions of LB131, sponsored by Elkhorn Sen. Tony Sorrentino, Nebraska educational savings plan trust accounts may be used to pay for private elementary and secondary school tuition, not to exceed $10,000 per beneficiary per taxable year, beginning Jan. 1, 2029.
The amended provisions of LB242, introduced by Sen. Merv Riepe of Ralston, update a measure passed during last year’s special session that limits increases in city and county property tax request authority.
Among other updates, the measure:
• modifies the property tax request authority calculation to ensure that it accounts for a political subdivision’s growth;
• provides a one-time mechanism allowing cities and counties to carry forward unused restricted funds authority; and
• removes a revenue cap on local occupation taxes.
The amended provisions of LB314, sponsored by Sorrentino, allow a political subdivision and nonprofit corporation to apply for temporary approval for state assistance under the Sports Arena Facility Financing Assistance Act if each has adopted a resolution authorizing either co-applicant to pursue financing or bonds to acquire, construct, improve or equip an eligible sports arena facility.
The approval becomes permanent if a building permit for the facility is issued within 24 months of the temporary approval. If a permit is not issued within that period, the temporary approval becomes void.
The amended provisions of LB401, introduced by Elkhorn Sen. R. Brad von Gillern, clarify a provision allowing Nebraskans to pay their state income taxes through a passthrough entity such as an LLC.
The measure also requires notices of deficiency to include a written statement detailing the facts, circumstances and reasons the state tax commissioner used to determine that a taxpayer did not report the correct amount of tax on an income tax return.
The amended provisions of LB566, introduced by Sen. Dan Quick of Grand Island, extend the sunset date for an income tax credit for the purchase of a home in an extremely blighted area from Jan. 1, 2026, to Jan. 1, 2032.
Under the amended provisions of LB628, sponsored by Norfolk Sen. Robert Dover, a taxpayer who encumbers their property with a perpetual recreational trail easement may apply for a property tax exemption for the portion of the property that has been encumbered with the easement.
The provisions of LB709, introduced by Sen. Eliot Bostar of Lincoln, create a refundable state income tax credit equal to 10% of the federal adoption expenses tax credit allowed to a taxpayer in the same taxable year.
The state Department of Revenue estimates that LB647 will reduce state general fund revenue by $499,000 in fiscal year 2025-26, $1.2 million in FY2026-27 and $2 million in FY2027-28.
The bill passed on a vote of 35-13 and takes effect immediately.
