Department of Revenue statute updates advance

A bill that would update numerous state Department of Revenue statutes was advanced from general file Feb. 29.

LB727, introduced by Bellevue Sen. Abbie Cornett, updates current state statute and establishes new provisions as they relate to the state Department of Revenue. The bill, which includes the emergency clause, proposes to:
• eliminate certain motor fuels tax collection commissions if a notice of a deficiency assessment issued has become a final assessment;
• change to the 20th day the due date for motor fuel producers, suppliers, distributors, wholesalers, importers and exporters to file their motor fuel tax returns;
• change the source of data required to update the department’s calculation of the wholesale price of gasoline;
• change the due date for the department to update its biennial tax burden study to Dec 1, 2013, and every two years thereafter;
• clarify the sales tax exemption for sales of prepared food by parent or student organizations at elementary or secondary schools;
• repeal the state statute that currently requires the department to appoint a committee to oversee the operation of the motor fuel trust fund;
• eliminate statutory requirements that the department must use certified mail for mailing certain notices, including a notice of a proposed deficiency determination; and
• add first-class mail to the list of authorized forms of mail that the department can use whenever it is required to give any notice under the Nebraska Revenue Act.

A Revenue Committee amendment to exempt fees paid to participate in youth sports events and youth competitive educational activities from sales and use taxes was adopted on a 28-0 vote. The amendment incorporated provisions of LB903, also introduced by Cornett.

Senators adopted a technical amendment brought by Lincoln Sen. Tony Fulton and advanced the bill to select file on a 28-0 vote.