2011 Nebraska Legislative Changes
Player Access to Keno Equipment (
LB 490 – Operative Date: August 27, 2011)
A player may access keno equipment for purposes of selecting numbers before the start of a game. A player may not initiate the start of a game.
Savings Promotion Raffles ( LB 524 – Operative Date: August 27, 2011)
A “gift enterprise” includes a "savings promotion raffle" conducted by a credit union chartered under state or federal law. A "savings promotion raffle" is a contest where depositing a specific amount of money into a savings account or program may earn the depositor a chance at winning a designated prize.
State Athletic Commission ( LB 210 – Operative Date: August 27, 2011)
The State Athletic Commission will be located within and under the general supervision of the Charitable Gaming Division of the Nebraska Department of Revenue.
Audits of Cigarette Tax Stamps (LB 337 – Operative Date: April 26, 2011)
The Auditor of Public Accounts may conduct audits of money received from the sale of cigarette stamps and tax meter impressions as deemed necessary. Previously, audits on the sale of cigarette tax stamps and tax meter impressions were conducted annually by the Auditor of Public Accounts.
Cigarette and Tobacco Reporting Requirements (LB 590 – Operative Date: January 1, 2013)
Beginning January 1, 2013, tobacco product manufacturers, importers, wholesalers, retailers, and stamping agents are subject to new reporting and licensing requirements for the sale of cigarettes in Nebraska. These new, detailed reporting requirements are to ensure the collection of cigarette taxes and escrow on all cigarettes sold in the state.
Cigarette Tax Agreements with Indian Tribes (LB 590 – Operative Date: August 27, 2011)
The Governor may negotiate cigarette tax and escrow collection agreements with federally-recognized Indian tribes located within Nebraska.
Angel Investment Tax Credit ( LB 389 – Operative Date: September 1, 2011)
Beginning with tax year 2011, individuals, trusts, or pass-through entities are eligible for a refundable income tax credit equal to 35% or 40% of an investment in an eligible Nebraska business. The amount of the credit depends on the location of the business receiving the investment - 40% of the investment if the qualified business is located in a distressed area or 35% of the investment in all other areas of the state. An individual, trust, or pass-through entity and an eligible business must both be certified by the Nebraska Department of Economic Development for an investment to be eligible for the tax credit.
Nebraska Advantage Rural Development ( LB 389 – Operative Date July 1, 2011)
For 2011, applications that are filed before July 1, and are complete by August 1, will be considered timely filed for 2011. If an application is not complete by August 1, it will be considered filed in 2012. If an application is filed after July 1, it will also be considered filed in 2012.
Applications filed in 2012 will compete for $1 million in credits annually, compared to $4 million in 2011.
Internal Revenue Code Update ( LB 134 – Operative date: February 22, 2011)
All references to the federal Internal Revenue Code in Nebraska statutes refer to the federal Internal Revenue Code as it existed on February 22, 2011.
Renewable Energy Tax Credit ( LB 360 – Operative Date: October 1, 2011)
A producer of electricity generated by a renewable electric generation facility is no longer required to be certified by the Department of Environmental Quality as a zero-emission facility to qualify for the renewable energy tax. The total credit was reduced from $750,000 to $50,000 for all taxpayers. The credit may be used to reduce a producer's income tax liability or to obtain a refund of sales and use taxes paid by the producer.
Contract Authority to Identify Nonfilers and Underreporters of Tax ( LB 642 – Operative Date: May 26, 2011)
The Nebraska Department of Revenue may contract with outside vendors to identify nonfilers, underreporters, or nonpayers of taxes administered by the Department. This also includes identifying improper or fraudulent payments made through programs administered by the Department.
Corporate Officer Tax Liability ( LB 210 – Operative Date: August 27, 2011)
The Nebraska Department of Revenue may issue a notice or demand for payment against a corporate officer for a corporate tax liability up to one year after the closure or dismissal of a bankruptcy case where the corporation appeared as the debtor.
Internal Revenue Code Update ( LB 134 – Operative date: February 22, 2011)
All references to the federal Internal Revenue Code in Nebraska statutes refer to the federal Internal Revenue Code as it existed on February 22, 2011.
Low-Income Home Energy Conservation Act ( LB 385 – Operative date: April 26, 2011)
The Low-Income Home Energy Conservation program was suspended until July 1, 2014. Beginning July 1, 2014, a public power district or other eligible entity may deposit up to $50,000 in a special cash fund maintained for each participating utility to fund energy conservation improvement projects; the amounts deposited will be matched by the State of Nebraska up to $250,000 annually. When $250,000 of deposits have been received, no further deposits will be accepted.
New Regulations Issued by State Agencies ( LB 617 – Operative date: May 24, 2011)
A state agency must hold a public hearing on a rule or regulation that is required to be adopted, amended, or repealed by a newly-enacted statute within twelve months after the operative date of the statute. A state agency must promulgate rules and regulations required by a newly-enacted statute within 12 months of the public hearing. An agency must also issue a status report to the Legislature on all regulations pending before the agency by July 1 of each year.
Alternative Fuel User Program ( LB 289 – Operative Date: January 1, 2012)
The alternative fuel user program will be administered by the Nebraska Department of Motor Vehicles. Previously, the program was administered by the Nebraska Department of Revenue.
Audits of the Motor Fuel Tax Enforcement and Collection Division ( LB 337 – Operative Date: April 26, 2011)
The Auditor of Public Accounts may conduct audits of funds expended by the Motor Fuel Tax Enforcement and Collection Division as deemed necessary. Previously, audits of the Motor Fuel Tax Enforcement and Collection Division were conducted biennially by the Auditor of Public Accounts.
Nameplate Capacity Tax ( LB 360 – Operative Date: January 1, 2010)
Depreciable tangible personal property used directly in the generation of electricity using wind as a fuel source is exempt from property tax. Real property used directly in the generation of electricity using wind as a fuel source is not exempt from property tax.
Occupation Taxes on Telecommunication Services ( LB 165 – Operative Date: January 1, 2013)
Beginning January 1, 2013, a municipality may not levy an occupation tax exceeding 6.25% on telecommunications services. A municipality may increase the occupation tax rate beyond 6.25% with a vote of the people, but the rate may not increase by more than 0.25% per election. Also beginning January 1, 2013, an occupation tax cannot be levied on telecommunications equipment.
Electronic Reporting Requirements for County Assessors and Other Taxing Officials ( LB 210 – Operative Date: August 27, 2011)
County assessors and other taxing officials must electronically report data on the assessed valuation and other assessment information involved in the property assessment process, as designated by the Property Tax Administrator.
Greenbelt Advisory Committee Eliminated ( LB 210 – Operative Date: August 27, 2011)
The Greenbelt Advisory Committee is eliminated.
Personal Property Tax Abstract ( LB 162 – Operative Date: August 27, 2011)
County assessors are no longer required to file a personal property abstract with the Property Tax Administrator.
Real Property Tax Abstracts ( LB 384 – Operative Date: January 1, 2014)
Beginning January 1, 2014, county assessors of counties with a population of at least 150,000 people must file real property tax abstracts with the Property Tax Administrator by March 25. A county assessor may request an extension of the filing deadline with the Property Tax Administrator on or before March 22.
Reports and Opinions of the Property Tax Administrator ( LB 384 – Operative Date: January 1, 2014)
Beginning January 1, 2014, the Property Tax Administrator must prepare and deliver the annual reports and opinions for any county with a population of at least 150,000 people within 15 days following the final filing due date for the property tax abstracts filed by the county assessors for those counties.
Common and Contract Carrier Sales Tax Exemption Certificates ( LB 210 – Operative Date: October 1, 2011)
All common or contract carrier sales tax exemption certificates will expire on October 31, 2013. After October 31, 2013, all common or contract carrier sales tax exemption certificates will expire every five years. Previously, all common or contract carrier sales tax exemption certificates expired every three years.
County Sales Tax ( LB 106 – Operative Date: August 27, 2011)
A county may impose (by election) a county sales and use tax for purposes of financing public safety services, which include crime prevention, offender detention, and firefighter, police, medical, ambulance, or other emergency services.
Renewable Energy Tax Credit ( LB 360 – Operative Date: October 1, 2011)
A producer of electricity generated by a renewable electric generation facility is no longer required to be certified by the Department of Environmental Quality as a zero-emission facility to qualify for the renewable energy tax. The total credit was reduced from $750,000 to $50,000 for all taxpayers. The credit may be used to reduce a producer's income tax liability or to obtain a refund of sales and use taxes paid by the producer.
Sales and Use Tax Due Date ( LB 210 – Operative Date: October 1, 2011)
The due date will change from the 25th of the month to the 20th of the month. This change will take effect:
- For monthly filers, with the October return due on November 20, 2011;
- For quarterly filers, with the fourth quarter return due on January 20, 2012; and
- For annual filers, with the 2011 annual return also due on January 20, 2012.
This change applies to the Nebraska and Local Sales and Use Tax Return, Form 10, and the Business Nebraska and Local Use Tax Return, Form 2. The Nebraska and County Lodging Tax Return, Form 64, and the Nebraska Tire Fee Return, Form 93, remain due on the 25th of the month.
Sales of Low-speed Vehicles ( LB 289 – Operative Date: January 1, 2012)
The sale of a motor vehicle includes the sale of low-speed vehicles. The seller of a low-speed vehicle must provide the purchaser with a Nebraska Sales/Use Tax and Tire Fee Statement for Motor Vehicle and Trailer Sales, Form 6.
Sales Tax Exemption for "Meals" and "Food Products" ( LB 211 – Operative Date: October 1, 2011)
The terms “meals” and “food products” were replaced with the terms “prepared food” and “food and food ingredients.” This change does not affect the taxability of these items.
Sales Tax Exemption for Nonprofit, Private Colleges and Universities ( LB 637 – Operative Date: May 4, 2011)
Purchases by regionally or nationally accredited, privately-controlled nonprofit colleges or universities are exempt from sales tax if the college or university’s primary campus is physically located in Nebraska. Previously, the sales tax exemption was available to any private, nonprofit college or university accredited by the State, regardless of its primary location.
Sales Tax Revenue Dedicated for Road Projects ( LB 84 – Operative Date: July 1, 2013)
Beginning July 1, 2013, the proceeds from a sales and use tax rate of one-quarter of one percent are credited 85% to the State Highway Capital Improvement Fund and 15% to the Highway Allocation Fund.
Tax Rates for Direct Mail ( LB 211 – Operative Date: October 1, 2011)
The sales tax rate for direct mail is based on the type of direct mail being sent – either advertising and promotional material, or other direct mail – and the delivery location or information provided by the purchaser of the direct mail. Sellers of advertising and promotional direct mail material will continue to collect sales tax based upon the delivery location. Sellers of "other direct mail" material, such as customer newsletters and bank statements, will collect sales tax based on the purchaser's address. Purchasers of either type of direct mail may continue to provide the seller with a Direct Pay Permit or exemption certificate and self report use tax based on the delivery location.
Tax Rates for a Motor Vehicle Lease or Rental ( LB 211 – Operative Date: October 1, 2011)
The sales tax rate for a lease or rental of a motor vehicle (automobile, truck, trailer, or truck-tractor) is based upon the primary location of the motor vehicle. The sales tax rate was previously based upon the motor vehicle’s location on the date on which the lease or rental agreement was executed.
Wyuka Cemetery Sales Tax Exemption ( LB 252 – Operative Date: July 1, 2011)
Purchases by Wyuka Cemetery are exempt from sales and use tax.
