LB 650 — Adopt the Community Development Assistance Act and change provisions relating to land banks, property tax exemptions, real property sold for delinquent taxes, sales tax provisions, and certain tax credits

If the governing body of a political subdivision seeks to set its property tax request at an amount that exceeds its property tax request in the prior year, it may do so, subject to the -4- LB650 LB650 2025 limitations provided in the School District Property Tax Limitation Act and the Property Tax Growth Limitation Act, after holding the public hearing required in subsection (3) of this section and by passing a resolution or ordinance that complies with subsection (4) of this section.

If the governing body of a political subdivision seeks to set its property tax request at an amount -11- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 that exceeds its property tax request in the prior year, it may do so, subject to the limitations provided in the School District Property Tax Limitation Act and the Property Tax Growth Limitation Act, after holding the public hearing required in subsection (3) of this section and by passing a resolution or ordinance that complies with subsection (4) of this section.

and the percentage increase or decrease in the -12- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 total operating budget from the prior year to the current year.

(2) If any political subdivision seeks to increase its property tax request by more than the allowable growth percentage, such political subdivision may do so, subject to the limitations provided in the School -13- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 District Property Tax Limitation Act and the Property Tax Growth Limitation Act, if the following requirements are met:

-5- LB650 LB650 2025 (a) A public hearing is held and notice of such hearing is provided in compliance with subsection (3) of this section;

(e) The joint public hearing shall be organized by the county clerk -14- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 or his or her designee.

(ii) By posting notice of the hearing on the home page of the -15- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 relevant county's website, except that this requirement shall only apply if the county has a population of more than ten thousand inhabitants;

(h) Each political subdivision that participates in the joint public hearing shall electronically send the information prescribed in subdivision (3)(i)(3) (i) of this section to the county assessor by September 4.

(i) The postcard sent under this subsection and the notice posted on the county's website, if required under subdivision (3)(g)(ii) of this section, and published in the newspaper shall include the date, time, and -16-location ER45for ER45the -6- LB650 LB650 MJP2025 - 04/18/2025 MJP - 04/18/2025 location for the joint public hearing, a listing of and telephone number for each political subdivision that will be participating in the joint public hearing, and the amount of each participating political subdivision's property tax request.

To obtain more information regarding the tax increase, citizens may contact the political subdivision at the -17- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 telephone number provided in this notice.

(a) The names of the designated representatives of the political -18- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 subdivisions participating in the joint public hearing;

77-1802 The77-1802 The county treasurer shall, not less than four nor more than six weeks prior to the first Monday of March in each year, make out a list of all real property subject to sale and the amount of all delinquent taxes against each item with an accompanying notice stating that so much of such property described in the list as may be necessary for that purpose will, on the first Monday of March next thereafter, be sold by such county treasurer at public auction at his or her office or other designated location for the taxes, interest, and costs thereon.

In making such list, the county treasurer shall -7- LB650 LB650 2025 describe the property as it is described on the tax list and shall include the name of the owner of record of the property as shown on the most current certified tax roll, the property's parcel number, if any, and the property's street address, -19- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 if any.

77-1806 On the day designated in the notice of sale, the county treasurer or his or her designee shall commence the sale of the real property on which the taxes and charges have not been paid and shall continue the sale from day to day, Sundays and holidays excepted, until each item of real property or so much thereof as is sufficient to pay the taxes and charges thereon, including the cost of advertising, has been -20- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 sold or offered for sale.

(d) The county treasurer or his or her designee shall announce bidding rules at the beginning of the public auction, and such rules -21- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 shall apply to all bidders throughout the public auction.

and (v) If property listed remains unsold at the end of a round, a new round -8- LB650 LB650 2025 shall commence until all property listed is either sold or, if any property listed remains unsold, each registered bidder has consecutively passed on the opportunity to make a purchase.

At the -22- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 beginning of the second and any subsequent rounds, the county treasurer or his or her designee shall inquire whether there are additional registered bidders.

(g) A bidder shall (i) register with the county treasurer or his or her designee prior to participating in the sale, (ii) provide proof that it maintains a registered agent for service of process with the Secretary of State if the bidder is a foreign corporation, and (iii) pay a twenty-twenty-five-dollar five-dollar registration fee.

77-1816 If any treasurer or designee deputy shall sell or assist in selling any real property, knowing the same to be not subject to taxation, or that the taxes for which the same is sold have been paid, or shall knowingly and willfully sell, or assist in selling, any real property for the payment of taxes to defraud the owner of such real -23- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 property, or shall knowingly execute a deed for property so sold, he shall be deemed guilty of a Class I misdemeanor and shall be liable to pay the injured party all damages sustained by such wrongful act, and all such sales shall be void.

The notice shall (a) state that a certificate has been issued, (b) include a brief description of the property owner's legal rights to redeem the real property, (c) identify the real property by the street address listed in the records of the county assessor, (d) include the total amount of taxes, interest, and costs for which the property was -24- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 sold and a recitation that interest and fees may accrue, and (e) include the purchaser's name, and (f) include a prominent warning that failure to act may result in forfeiture of the property.

-9- LB650 LB650 2025 77-1819 The certificate shall be substantially in the following form:

I further certify that unless redemption -25- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 is made of such real estate in the manner provided by law, the .........., heirs or assigns will be entitled to a deed therefor on and after the ..........

77-1823 The county treasurer shall charge a twenty-five-dollar twenty-dollartwenty- dollar issuance fee for each deed or certificate made by him or her for a sale of real property for taxes together with the fee of the notary public or other officer acknowledging the deed.

The county treasurer shall send written notice of redemption to the holder of the county treasurer's certificate of tax -26- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 sale by first-class mail if the post office address of the holder of the certificate is filed in the office of the county treasurer or by electronic means if previously agreed to by the parties.

-27- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (5) The amount of taxes represented by the tax sale certificate, the year the taxes were levied or assessed, and a statement that subsequent taxes may have been paid and interest and fees may have accrued as of the date the notice is signed by the purchaser;

Section 77-1832, Revised Statutes Cumulative Supplement, 2024, is -10- LB650 LB650 2025 amended to read:

If the person in whose name the title to the real property appears of record cannot be found in this state or if such person cannot be served by personal or residence service, service of the notice shall -28- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 be made upon such person by certified mail service or designated delivery service as described in section 25-505.01, and the notice shall be sent to the name and address to which the property tax statement was mailed.

For each service of such -29- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 notice, a fee of one dollar shall be allowed.

(a) For real estate determined to be vacant and abandoned pursuant to subsection (5) of this section, the purchaser or assignee shall apply -30- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 at any time within nine months after the expiration of two years after the date of sale of the real estate for taxes or special assessments;

-11- LB650 LB650 2025 (c) (d) For any notice provided pursuant to section 77-1832, the affidavit proving service of notice, the copy of the notice, and the copy of the title search required under section 77-1833;

(3) (2) The purchaser or his or her assignee may apply for a tax deed under this section if one hundred ten percent of the assessed value of the real estate described in the tax sale certificate as reflected in -31- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 the records of the county assessor at the time of the application for the tax deed, less the amount that would be needed to redeem such real estate, is twenty-five thousand dollars or less.

(G) There have not been any recent efforts made to restore the -32- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 property to productive use;

If the real estate is not registered as vacant and abandoned pursuant to such an ordinance, the purchaser or assignee shall not be obligated to proceed under subdivision (1)(a) of this section, but may instead choose to proceed under subdivision (1)(b)(1) (b) of this section, and no tax deed subsequently issued to such purchaser or assignee shall be deemed invalid due to noncompliance with subdivision (1)(a) of this section.

No action taken by a purchaser or assignee under subdivision (1)(1)(a) (a) of this section shall prohibit a subsequent action under subdivision (1)(b)(1) (b) of this section on the same real estate should it be determined that such real estate is not vacant and abandoned.

-33-77-1838 ER45(1) ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 77-1838 (1) The deed made by the county treasurer shall be under the official seal of office and acknowledged by the county treasurer before some officer authorized to take the acknowledgment of deeds.

When recorded it shall vest in the grantee and his or her heirs and assigns the title of the property described in the deed, subject to any lien on real estate for special assessments levied by a sanitary and -12- LB650 LB650 2025 improvement district which special assessments have not been previously offered for sale by the county treasurer.

Section 77-1856, Reissue Revised Statutes of Nebraska, is -34- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 amended to read:

77-1902 (1) When land has been sold for delinquent taxes and a tax sale certificate or tax deed has been issued, the holder of such tax sale certificate or tax deed may, instead of demanding a deed or, if a deed has been issued, by surrendering the same in court, proceed in the district court of the county in which the land is situated to foreclose the lien for taxes represented by the tax sale certificate or tax deed and all subsequent tax liens thereon, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by -35- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 the county treasurer, in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917.

-36- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (F) The property has been stripped of copper or other materials or interior fixtures to the property have been removed;

(G) There have not been any recent efforts made to restore the property to -13- LB650 LB650 2025 productive use;

(d) If the holder of the tax sale certificate or tax deed determines -37- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 real estate to be vacant and abandoned pursuant to this subsection, the holder shall submit an affidavit to the county treasurer affirming that the real estate is vacant and abandoned.

-38- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (ii) In the furnishing of mobile telecommunications service as described in section 77-2703.04, the gross income received from furnishing mobile telecommunications service that originates and terminates in the same state to a customer with a place of primary use in Nebraska;

(ii) In the furnishing of electricity service to a customer-customer-generator generator as defined in section 70-2002, the net energy use upon billings or statements rendered to customer-generators for such electricity service;

-39- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (i) The gross income received by a political subdivision of the state, an electric cooperative, or an electric membership association for the lease or -14- LB650 LB650 2025 use of, or by a contractor for the construction of or services provided on, electric generation, transmission, distribution, or street lighting structures or facilities owned by a political subdivision of the state, an electric cooperative, or an electric membership association;

-40- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (b) The gross income received for motor vehicle washing, waxing, towing, and painting;

If any or all of the charge for installation is free to the customer and is paid by a third-partythird- party service provider to the installer, any tax due on that part of the activation commission, finder's fee, installation charge, or similar payment made by the third-party service provider shall be paid and remitted by the third-party service provider;

The organization conducting the activity shall determine the amount properly attributable to the purchase of the privilege, benefit, or other consideration in advance, and such amount shall be clearly indicated on any ticket, receipt, or other evidence issued in connection -41- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 with the payment.

or (b) The price of property or services returned or rejected by customers -15- LB650 LB650 2025 when the full sales price is refunded either in cash or credit.

-42- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 77-2703 (1) There is hereby imposed a tax at the rate provided in section 77-2701.02 upon the gross receipts from all sales of tangible personal property sold at retail in this state;

(b) It is unlawful for any retailer to advertise, hold out, or state to the public or to any customer, directly or indirectly, that the tax or part thereof will be assumed or absorbed by the retailer, that it will not be added to the selling, renting, or leasing price of the property -43- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 sold, rented, or leased, or that, if added, it or any part thereof will be refunded.

The burden of proving that a sale of property is not a sale at retail is upon the person who makes the sale unless he or she takes from the purchaser (i) a resale certificate to the effect that the property is purchased for the purpose of reselling, leasing, or renting it, (ii) an exemption certificate pursuant -44- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 to subsection (7) of section 77-2705, or (iii) a direct payment permit pursuant to sections 77-2705.01 to 77-2705.03.

(iii) When such election is made, it shall apply to all vehicles of the lessor rented or leased for periods of one year or more except vehicles to be -16- LB650 LB650 2025 leased to common or contract carriers who provide to the lessor a valid common or contract carrier exemption certificate.

and (iv) The Tax Commissioner by rule and regulation shall prescribe the -45- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 contents and form of the notice of election, a procedure for the determination of the tax base of vehicles which are under an existing lease at the time such election becomes effective, the method and manner for terminating such election, and such other rules and regulations as may be necessary for the proper administration of this subdivision.

Any seller who fails or refuses to furnish such -46- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 certified statement shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine of not less than twenty-five dollars nor more than one hundred dollars.

The county treasurer, for his or her collection fee, shall deduct and withhold, from all amounts required to be collected under this subsection, the collection fee permitted to be deducted by any retailer collecting the sales tax, all of which shall be deposited in the county general fund, plus an additional amount equal to one-halfone- half of one percent of all amounts in excess of six thousand dollars remitted each month.

The Department of Motor Vehicles, -47- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 for its collection fee, shall deduct, withhold, and deposit in the Motor Carrier Division Cash Fund the collection fee permitted to be deducted by any retailer collecting the sales tax.

At the time of the sale of a motorboat, the seller shall (A) state on the sales invoice the dollar amount of the tax imposed under this section and (B) furnish to the purchaser a certified statement of the transaction, in such form as the Tax Commissioner prescribes, setting forth as a minimum the total sales price, the allowance for any trade-in,trade- in, and the difference between the two.

A copy of such certified statement shall also be furnished to -17- LB650 LB650 2025 the Tax Commissioner.

The county treasurer shall report and remit -48- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 the tax so collected to the Tax Commissioner by the fifteenth day of the following month.

Any seller who fails or refuses to furnish such certified statement shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine of not less than twenty-five -49- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 dollars nor more than one hundred dollars.

If the purchaser does not obtain a certificate of title for such all-terrain vehicle or utility-utility-type type vehicle within thirty days of the purchase thereof, the tax imposed by this section shall immediately thereafter be paid by the purchaser to the county treasurer.

(ii) In the rental or lease of an all-terrain vehicle or a utility-utility-type type vehicle, the tax shall be collected by the lessor on the rental or lease price.

The county treasurer shall collect the applicable use tax from the purchaser of an all-terrainall- terrain vehicle or a utility-type vehicle purchased outside of this state at the time application for a certificate of title is made.

If a sales or occupation tax was lawfully paid in the state of purchase at a rate less than the tax imposed in this state, use tax must be collected on the -50- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 difference as a condition for obtaining a certificate of title in this state.

(a) Every person storing, using, or otherwise consuming in this state property purchased from a retailer or leased or rented from another person for -18- LB650 LB650 2025 such purpose shall be liable for the use tax at the rate in effect when his or her liability for the use tax becomes certain under the accounting basis used to maintain his or her books and records.

-51- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (b) Every retailer engaged in business in this state and selling, leasing, or renting property for storage, use, or other consumption in this state shall, at the time of making any sale, collect any tax which may be due from the purchaser and shall give to the purchaser, upon request, a receipt therefor in the manner and form prescribed by the Tax Commissioner.

(e) For the purpose of the proper administration of the Nebraska Revenue Act of 1967 and to prevent evasion of the use tax, it shall be -52- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 presumed that property sold, leased, or rented by any person for delivery in this state is sold, leased, or rented for storage, use, or other consumption in this state until the contrary is established.

(3) A client described in subsection (2) of this section which enters into a contract of construction, improvement, or repair with respect to buyer-based tax-exempt items annexed to real estate without first issuing a purchasing agent authorization to a construction -53- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 contractor prior to such items being annexed to real estate in the project may apply to the Tax Commissioner for a refund of any sales and use tax paid by the contractor on such items physically annexed to real estate in the construction, improvement, or repair.

77-270877-2708 (1)(a) (1)(a) The sales and use taxes imposed by the Nebraska Revenue Act of 1967 shall be due and payable to the Tax Commissioner monthly on or before the twentieth day of the month next succeeding each monthly period unless otherwise provided pursuant to the Nebraska Revenue Act of 1967.

(b)(i) On or before the twentieth day of the month following each monthly period or such other period as the Tax Commissioner may require, a return for such period, along with all taxes due, shall be filed with the Tax Commissioner -19- LB650 LB650 2025 in such form and content as the Tax Commissioner may prescribe and containing such information as the Tax Commissioner deems necessary for the proper administration of the Nebraska Revenue Act of 1967.

Except as required by the streamlined sales and use tax agreement, annual returns shall be required if such sellers', retailers', or purchasers' yearly tax liability is less than nine hundred dollars, quarterly returns shall be required if their yearly tax liability is nine hundred dollars or more and less than three thousand dollars, and monthly returns shall be required if their yearly tax liability is three thousand -54- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 dollars or more.

(iv) A taxpayer who keeps his or her regular books and records on a cash basis, an accrual basis, or any generally recognized accounting basis which correctly reflects the operation of the business may file the sales and use tax returns required by the Nebraska Revenue Act of 1967 on -55- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 the same accounting basis that is used for the regular books and records, except that on credit, conditional, and installment sales, the retailer who keeps his or her books on an accrual basis may report such sales on the cash basis and pay the tax upon the collections made during each month.

Failure to file the return, filing after the required filing date, failure to remit the net amount of the tax due, or remitting the -56- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 net amount of the tax due after the required filing date shall be cause for a penalty, in addition to interest, of ten percent of the amount of tax not paid by the required filing date or twenty-fivetwenty- five dollars, whichever is greater, unless the penalty is being collected under subdivision (1)(i), (1)(j)(i), or (1)(k)(i) of section 77-2703 by a county treasurer or the Department of Motor Vehicles, in which case the penalty shall be five dollars.

(d) The taxpayer shall deduct and withhold, from the taxes otherwise due from him or her on his or her tax return, two and one-half three percent of the first three five thousand dollars remitted each month to reimburse himself or -20- LB650 LB650 2025 herself for the cost of collecting the tax.

This subdivision shall not apply if the multivendor marketplace platform and the seller are related persons under either section 267(b) or (c) or section 707(b) of the -57- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 Internal Revenue Code of 1986 or if the seller is also the multivendor marketplace platform operator.

The claimant and the Tax Commissioner may also agree to extend the one-one-hundred-eighty-day -58- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 hundred-eighty-day period.

(i) The Tax Commissioner may recover any refund or part thereof which is erroneously made and any credit or part thereof which is -59- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 erroneously allowed by issuing a deficiency determination within one year from the date of refund or credit or within the period otherwise allowed for issuing a deficiency determination, whichever expires later.

However, the amount calculated pursuant to 26 -21- LB650 LB650 2025 U.S.C.

-60- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (v) If filing responsibilities have been assumed by a certified service provider, the service provider may claim, on behalf of the retailer, any bad debt allowance provided by this section.

The Tax Commissioner shall then deduct such refund from the applicable tax proceeds in accordance with the selection when he or she deducts refunds pursuant to section 13-324, 13-2814, or 77-6403 or subsection (1) of -61- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 section 77-27,144, whichever is applicable.

In the examination of any person selling property or of any person liable for the use tax, an inquiry shall be made as to the accuracy of the reporting -62- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 of city and county sales and use taxes for which the person is liable under the Local Option Revenue Act or sections 13-319, 13-324, 13-2813, and 77-6403 and the accuracy of the allocation made between the various counties, cities, villages, and municipal counties of the -22- LB650 LB650 2025 tax due.

Nothing in this section shall be construed to prohibit (a) the delivery to a taxpayer, his or her duly authorized representative, or his or her successors, receivers, trustees, executors, -63- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 administrators, assignees, or guarantors, if directly interested, of a certified copy of any return or report in connection with his or her tax, (b) the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, (c) the inspection by the Attorney General, other legal representative of the state, or county attorney of the reports or returns of any taxpayer when either (i) information on the reports or returns is considered by the Attorney General to be relevant to any action or proceeding instituted by the taxpayer or against whom an action or proceeding is being considered or has been commenced by any state agency or the county or (ii) the taxpayer has instituted an action to review the tax based thereon or an action or proceeding against the taxpayer for collection of tax or failure to comply with the Nebraska Revenue Act of 1967 is being considered or has been commenced, (d) the furnishing of any information to the United States Government or to states allowing similar privileges to the Tax Commissioner, (e) the disclosure of information and records to a collection agency contracting with the Tax Commissioner pursuant to sections 77-377.01 to 77-377.04, (f) the disclosure to another party to a transaction of information and records concerning the transaction between the taxpayer and the other party, (g) the disclosure of information pursuant to section 77-27,195, 77-5731, 77-6837, 77-6839, or 77-6928, or (h) the disclosure of information to the Department of Labor necessary for the administration of the Employment Security Law, the Contractor Registration Act, or the Employee Classification Act.

(8) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner may permit the Postal Inspector of the United States Postal Service or his or her delegates to inspect the reports or returns of any person filed pursuant to the Nebraska Revenue Act of 1967 when information on the reports or returns is relevant to any action or proceeding instituted or being considered by the United States Postal Service against such person for the fraudulent use of the mails to -64- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 carry and deliver false and fraudulent tax returns to the Tax Commissioner with the intent to defraud the State of Nebraska or to evade the payment of Nebraska state taxes.

(11)(a) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner shall, upon written request by the Auditor of Public Accounts or the office of Legislative Audit, make tax returns and tax return information open to inspection by or disclosure to the Auditor of Public Accounts or employees of the office of Legislative Audit for the purpose of and -23- LB650 LB650 2025 to the extent necessary in making an audit -65- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 of the Department of Revenue pursuant to section 50-1205 or 84-304 or subsection (14) of this section.

-66- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 and (ii) Any part of any written determination or any background file document relating to such written determination;

(14)(a) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner shall, upon written request, provide an individual certified under subdivision (b) of this subsection representing a municipality which has adopted the local option sales and use tax under the Local Option Revenue Act with confidential sales and use tax returns and sales and use tax return information regarding taxpayers that possess a sales tax permit and the amounts remitted by such permitholders at locations within the boundaries of the requesting municipality or with confidential business use tax returns and business use tax return information regarding taxpayers that file a Nebraska and -67- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 Local Business Use Tax Return and the amounts remitted by such taxpayers at locations within the boundaries of the requesting municipality.

(c) If upon review of the documents described in subdivision (a) of this subsection the individual certified by a municipality pursuant to subdivision (b) of this subsection identifies a suspected irregularity or discrepancy, such individual may provide notification of the suspected irregularity or -24- LB650 LB650 2025 discrepancy to the Auditor of Public Accounts who may conduct an audit as provided in subsection (11) of this section.

(d) An (c) No individual certified by a municipality pursuant to subdivision (b) of this subsection shall not disclose to any person any information obtained pursuant to a review under this subsection exceptother asthan providedfor inthe subdivisionpurposes (c)described ofin this subsection.

An individual certified -68- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 by a municipality pursuant to subdivision (b) of this subsection shall remain subject to this subsection after he or she (i) is no longer certified or (ii) is no longer in the employment of or under contract with the certifying municipality.

With very limited exceptions, a certified service provider shall perform -69- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 its tax calculation, remittance, and reporting functions without retaining the personally identifiable information of consumers.

(f) When any personally identifiable information that has been collected and retained is no longer required for the purposes set forth in subdivision (16)(d)(iv) of this section, such information shall no -70- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 longer be retained by the member states.

-25- LB650 LB650 2025 (iv) Prevent, consistent with federal law, disclosure or misuse of federal return information obtained under a disclosure agreement with the Internal Revenue Service;

77-2715.0777-2715.07 (1) (1) There shall be allowed to qualified resident individuals as a nonrefundable credit against the income tax imposed by -71- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 the Nebraska Revenue Act of 1967:

(b) For returns filed reporting federal adjusted gross income of twenty-ninetwenty- nine thousand dollars or less, a refundable credit equal to a percentage of the federal credit allowable under section 21 of the Internal Revenue Code of 1986, as amended, whether or not the federal credit was limited by the federal tax liability.

The percentage of the federal credit shall be one hundred percent for incomes not greater than twenty-two thousand dollars, and the percentage shall be reduced by ten percent for each one thousand dollars, or fraction thereof, by which the reported federal adjusted gross income exceeds twenty-two thousand dollars, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such refundable credit shall be allowed only if the individual would have received the federal credit allowed under section 21 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining -72- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 eligibility for the federal credit;

Each partner, each shareholder of an electing subchapter S corporation, each beneficiary of an estate or trust, or each member of a limited liability company shall report his or her share of the credit in the same manner -73- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 and proportion as he or she reports the partnership, subchapter S corporation, estate, trust, or limited liability company income;

-26- LB650 LB650 2025 (a) A credit to all resident estates and trusts for taxes paid to another state as provided in section 77-2730;

and (c) A refundable credit for individuals who qualify for an income tax credit as an owner of agricultural assets under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or -74- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 after January 1, 2009, under the Internal Revenue Code of 1986, as amended.

-75- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (6) There shall be allowed to all individuals nonrefundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-3604 and refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-3605.

(8) There shall be allowed to all individuals refundable credits -76- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in the Cast and Crew Nebraska Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, the Relocation Incentive Act, and the Renewable Chemical Production Tax Credit Act.

-27- LB650 LB650 2025 (b) The amount of the credit shall be two thousand dollars.

77-2734.03 (1)(a) For taxable years commencing prior to January 1, -77- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 1997, any (i) insurer paying a tax on premiums and assessments pursuant to section 77-908 or 81-523, (ii) electric cooperative organized under the Joint Public Power Authority Act, or (iii) credit union shall be credited, in the computation of the tax due under the Nebraska Revenue Act of 1967, with the amount paid during the taxable year as taxes on such premiums and assessments and taxes in lieu of intangible tax.

(4) The changes made to this section by Laws 2004, LB 983, apply to -78- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 motor fuels purchased during any tax year ending or deemed to end on or after January 1, 2005, under the Internal Revenue Code of 1986, as amended.

(a) A written statement describing the full expected employment or type of livestock production and the investment amount for a qualified -79- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 business, as described in section 77-27,189, in this state;

The application and all supporting information shall be confidential except for the name of the taxpayer, the location of the project, and the amounts of increased employment -28- LB650 LB650 2025 or investment.

For calendar year 2016, five hundred thousand -80- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 dollars;

and for calendar years year 2022 through 20252024 and each calendar year thereafter, ten million dollars;

for calendar year 2025, seven million five hundred thousand dollars;

Any application that is filed after November 1 or that is not complete on December 1 shall be considered to be filed during the following calendar year.

-81- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (d) The date the application was filed;

or (ii) Increases employment by five new equivalent employees and makes an increased investment of at least two hundred fifty thousand dollars prior to the end of the first taxable year after the year in which the application was submitted in any county in this state with a population of less than twenty-fivetwenty- five thousand inhabitants, according to the most recent federal decennial census, or any city of the second class;

The Department of Revenue shall adjust the minimum qualifying wages required for applications filed after January 1, 2004, and each January 1 thereafter, -82- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 as follows:

The amount of increase or decrease in the minimum qualifying wages for any year shall be the cumulative change in the rural Nebraska average -29- LB650 LB650 2025 weekly wage since 2003.

(2) A refundable credit against the taxes imposed by the Nebraska Revenue Act of 1967 shall be allowed to any taxpayer who (a) has an approved application pursuant to the Nebraska Advantage Rural Development Act, (b) is engaged in livestock production, and (c) invests at least (i) fifty thousand dollars for livestock modernization or expansion for applications filed before January 1, 2024, (ii) or at least ten thousand dollars for livestock modernization or expansion for applications filed on or after January 1, 2024, and before January 1, 2026, or (iii) fifty -83- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 thousand dollars for livestock modernization or expansion for applications filed on or after January 1, 2026.

(6)(a) If a taxpayer who receives tax credits creates fewer jobs or -84- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 less investment than required in the project agreement, the taxpayer shall repay the tax credits as provided in this subsection.

-85--30- ER45 ER45 LB650 LB650 MJP2025 - 04/18/2025 MJP - 04/18/2025 (d) Food pantry means an organization in this state that:

and (h) Restaurant means a business located in this state that is primarily engaged in business activities classified as code 722511, 722513, 722514, or 722515 under the North American Industry Classification System.

(2) For taxable years beginning or deemed to begin on or after January 1, 2025, and before January 1, 2026, under the Internal Revenue Code of 1986, as amended, a credit against the income tax imposed by the Nebraska Revenue Act of 1967 shall be allowed to:

and -86- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 (b) Any agricultural producer that makes a qualifying agricultural food donation to a food bank, food pantry, or food rescue during the taxable year.

(8) A taxpayer shall claim the credit by attaching the tax credit certification received from the department under subsection (6) of this -87- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 section to the taxpayer's tax return.

77-3110 The department may approve tax credits under the Relocation Incentive Act each year until the total amount of credits approved for the year reaches theone annualfive limit.million dollars.

The annual limit shall be five million dollars for calendar year 2025 and one million dollars for calendar year 2026 and each calendar year thereafter.

77-3120 The annual limit on the total amount of tax credits allowed (1) for calendar year years 2025 and 2026 shall be nine hundred thousand dollars per year with a total of three hundred thousand dollars per year for each -31- LB650 LB650 2025 congressional district and (2) for calendar year 2027 and each calendar year thereafter shall be three million dollars per year with a -88- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 total of one million dollars per year for each congressional district.

(2) The maximum allowable tax credit claimed under the act in any single taxable year for any qualified production activity that is a full-full-length length film, made-for-television movie, television series of at least five episodes, or streaming television series shall not exceed five hundred thousand dollars in fiscal year 2025-26 and one million dollars in any fiscal year thereafter.

(2) The credit provided in this section shall be a nonrefundable tax -89- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 credit equal to fifty percent of the qualified shortline railroad maintenance expenditures incurred during the taxable year by the eligible taxpayer.

(3) The credit provided in this section shall be a refundable tax credit equal to fifty percent of the cost incurred by the taxpayer during -90- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 the taxable year for installation of the reverse osmosis system, up to a maximum of one thousand dollars.

-32- LB650 LB650 2025 Sec.

77-3806 (1) The tax return shall be filed and the total amount of the franchise tax shall be due on the fifteenth day of the third month -91- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 after the end of the taxable year.

77-4602 (1)77-4602 (1) Within fifteen days after the end of each month, the Tax -92- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 Commissioner shall provide a public statement of actual General Fund net receipts, a comparison of such actual net receipts to the monthly estimated net receipts from the most recent forecast provided by the Nebraska Economic Forecasting Advisory Board pursuant to section 77-27,158, and a comparison of such actual net receipts to the monthly actual net receipts for the same month of the previous fiscal year.

(b) If the amount calculated in subdivision (3)(a)(i) of this section is a positive number and the amount calculated in subdivision (3)(3)(a)(ii) (a)(ii) of this section is a negative number, the Tax Commissioner shall certify the amount calculated in subdivision (3)(a)(i) of this section to the State Treasurer.

(c) If the amounts calculated in subdivisions (3)(a)(i) and (3)(a)(3)(a)(ii) (ii) of this section are both positive numbers and the amount calculated in subdivision (3)(a)(i) of this section exceeds the amount calculated in subdivision (3)(a)(ii)(3)(a) (ii) of this section, the Tax Commissioner shall certify the amounts calculated in subdivisions (3)(a)(i) and (3)(a)(ii) -93- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 of this section to the State Treasurer.

(d) If the amounts calculated in subdivisions (3)(a)(i) and (3)(a)(3)(a)(ii) (ii) of this section are both positive numbers and the amount calculated in subdivision (3)(a)(i) of this section is less than the amount calculated in subdivision (3)(a)(ii)(3) (a)(ii) of this section, the Tax Commissioner shall certify the amount calculated in subdivision (3)(a)(i) of this section to the State Treasurer.

-33- LB650 LB650 2025 (i) The amount transferred to the Cash Reserve Fund shall be reduced by the excess amount calculated under subdivision (3)(c) of this section;

77-6605 The director shall consider program certification -94- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 applications under section 77-6604 in the order in which they are received.

(3) Subject to the limit in subsection (4) of this section, the -95- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 director shall approve the application and authorize the total amount of incentives expected to be earned if he or she is satisfied that the qualified location or locations meet the requirements established in section 77-6920 and such requirements will be reached within the required time period.

(8) The application, the agreement, all supporting information, and -96- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 all other information reported to the Director of Economic Development shall be kept confidential by the director, except for the name of the taxpayer, the location of the project, the estimated amounts of increased employment and investment stated in the application, the date of the complete application, the date the agreement was signed, and the information required to be reported by section 77-6928.

-34- LB650 LB650 2025 77-7012 (1) If the department determines that an application is complete and that the taxpayer qualifies for tax credits, the department shall approve the application within the limits set forth in this section and shall certify the amount of tax credits approved to the taxpayer.

Section 77-7304, Revised Statutes Cumulative Supplement, -97- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 2024, is amended to read:

(d) It is the intent of the Legislature that eight hundred thirty-thirty-eight eight million dollars be transferred from the General Fund to the School District Property Tax Relief Credit Fund in fiscal year 2027-28.

(f) It is the intent of the Legislature that nine hundred two million dollars be transferred from the General Fund to the School -98- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 District Property Tax Relief Credit Fund in fiscal year 2029-30.

77-730577-7305 (1) (1) The School District Property Tax Relief Act shall apply to tax year 2024 and each tax year thereafter.

(b) If money is transferred to the School District Property Tax -99- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 Relief Credit Fund pursuant to section 77-4602, such amount shall be added to the minimum amount required under subdivision (1)(a) of this section when determining the total amount of relief granted under the act for the tax year in which the transfer occurs.

(3) If the real property owner qualifies for a homestead exemption under -35- LB650 LB650 2025 sections 77-3501 to 77-3529, the owner shall also be qualified for the property tax credit provided in this section to the extent of any remaining liability after calculation of the homestead exemption.

Upon the return of any funds under this subsection, the county treasurer shall electronically file a report with the Property Tax Administrator, on a form prescribed by the Tax Commissioner, indicating the amount of funds distributed to each -100- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 school district in the county in the year the funds were returned and the amount of unused credits returned.

and (2) Administer the tax credit programs program established by the Creating High Impact Economic Futures Act and the Community Development -101- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 Assistance Act and adopt and promulgate rules and regulations pursuant to such acts act.

2.-36-

On page 1, strike beginning with "revenue" in line 1 through line 23 and insert "revenue and taxation;

to amend sections 18-3417, 60-3,185, 77-202.23, 77-202.24, 77-1804, 77-1806, 77-1815, 77-1816, 77-1819, 77-1823, 77-1825, 77-1829, 77-1836, 77-1856, 77-1902, 77-1909, and 81-1201.12, Reissue Revised Statutes of Nebraska, and sections 77-908, 77-1632, 77-1633, 77-1802, 77-1807, 77-1818, 77-1831, 77-1832, 77-1833, 77-1837, 77-1838, 77-2701.16, 77-2703, 77-2706.02, 77-2708, 77-2711, 77-2715.07, 77-2734.03, 77-27,187.02, 77-27,188, 77-27,241, 77-3110, -102- ER45 ER45 LB650 LB650 MJP - 04/18/2025 MJP - 04/18/2025 77-3120, 77-3126, 77-3136, 77-3169, 77-3806, 77-4602, 77-6605, 77-6919, 77-7012, 77-7304, and 77-7305, Revised Statutes Cumulative Supplement, 2024;

to adopt the Community Development Assistance Act;

to change provisions relating to land banks;

to change a motor vehicle tax exemption and a property tax exemption relating to certain disabled veterans;

to change provisions relating to community colleges;

to change provisions relating to real property sold for delinquent taxes and certain tax-related foreclosure actions;

to change provisions relating to a sales tax exemption for the lease or use of certain towers;

to change sales tax collection fees;

to change provisions relating to purchasing agents;

to provide for an audit by the Auditor of Public Accounts for suspected tax reporting irregularities or discrepancies;

to create an exception to the disclosure of confidential tax information by municipalities;

to change provisions relating to the Nebraska Advantage Rural Development Act, a food donation tax credit, the Relocation Incentive Act, the Creating High Impact Economic Futures Act, the Cast and Crew Nebraska Act, the Nebraska Shortline Rail Modernization Act, the Reverse Osmosis System Tax Credit Act, certain transfers of General Fund net receipts, the Renewable Chemical Production Tax Credit Act, the Urban Redevelopment Act, the Nebraska Biodiesel Tax Credit Act, and the School District Property Tax Relief Act;

to harmonize provisions;

to provide operative dates;

to repeal the original sections;

and to declare an emergency.".

3. On page 2, strike lines 1 through 6.

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