WeVote
Log In

Bill

Bill

LB 208

Change provisions relating to sales tax collection fees, confidentiality of sales tax information, the streamlined sales and use tax agreement, a sales tax database, and certain income tax credits

109th Legislature (2025-2026) Introduced by Brad von Gillern

Nebraska LB 208 makes the child tax credit residency-based, limiting eligibility to Nebraska residents starting in 2024.

Approved by Governor on February 25, 2025
0
WeVote Research Nonpartisan
Bill Summary · LB 208

Summary — LB 208 (2025)

Status: Approved by Governor February 25, 2025 (passed Final Reading 47–0–2).
Introduced: January 14, 2025. Sponsor: Sen. R. Brad von Gillern. Committee: Revenue.

Purpose

LB 208 is a technical/“cleanup” bill that amends multiple sales and income tax statutes to (1) clarify collection-fee and sales-tax administration rules, (2) align sales-tax confidentiality with income-tax confidentiality, (3) update Nebraska’s statutory references to the Streamlined Sales and Use Tax Agreement (through 12/31/2024), and (4) tighten and harmonize procedures for several targeted tax credits (child tax credit, biodiesel, and food bank credits). Several provisions change how tax rates are determined for online sales when zip codes are submitted.

Key provisions and changes

  • Sales tax collection fees (77-2708): If a “model 1” seller’s sales/use tax functions are performed by a certified service provider (CSP) and that CSP is compensated pursuant to the Streamlined Sales and Use Tax Agreement (SSUTA), the CSP shall not receive additional collection fees from the seller — preventing double compensation.
  • Confidentiality (77-2711): Sales tax confidentiality law is updated to mirror income tax confidentiality rules, including prohibiting former Department of Revenue employees from disclosing confidential sales-tax information.
  • SSUTA reference (77-2712.03): Statutory language updated to reflect Nebraska’s participation/amendments to SSUTA through December 31, 2024.
  • Zip-code-based rate selection (77-27,143): If only a 5‑digit ZIP code is submitted for an online sale, the highest sales tax rate within that ZIP code will be used; if a 9‑digit ZIP is provided, the most accurate (specific) rate is to be used.
  • Child tax credit residency restriction (77-7203): Eligibility for Nebraska’s child tax credit is restricted to Nebraska residents beginning in tax year 2024.
  • Tax-credit allocation (77-27,241; 77-7012): Biodiesel and food bank tax credit distributions are harmonized with the state’s “first-come, first-served” allocation process used for other credits. If the annual cap is reached mid‑day, only applications filed on that cap-reach date are prorated among claimants that day.
  • Technical harmonization and repealer: Multiple sections are harmonized and the original versions of amended sections are repealed as standard legislative housekeeping.

Who is affected

  • Model 1 sellers and certified service providers (CSPs) participating under the SSUTA.
  • Remote/online sellers and purchasers (rate selection for sales based on ZIP submission).
  • Nebraska Department of Revenue employees and former employees (confidentiality provisions).
  • Parents/guardians claiming the Nebraska child tax credit — nonresidents will be ineligible for tax year 2024 and after.
  • Biodiesel producers and organizations applying for food bank credits (allocation/proration changes).
  • Tax practitioners and software providers implementing ZIP‑level rate logic.

Implementation and timeline

  • Child tax credit residency rule applies beginning tax year 2024 (retroactive application for that tax year).
  • Bill amends specific statutory sections (77-2708, 77-2711, 77-2712.03, 77-2715.07, 77-27,143, 77-27,241, 77-7012, 77-7203).
  • Became law on February 25, 2025 (Governor’s approval).

Potential impacts

  • Removes potential double-payment to CSPs, simplifying compensation mechanics for model 1 sellers.
  • May increase tax collected on some online transactions where only 5‑digit ZIPs are provided (highest local rate will apply).
  • Narrows child tax credit beneficiaries to Nebraska residents, reducing eligibility for nonresident filers for 2024 onward.
  • Aligns credit allocation processes across programs, providing more predictable proration rules when caps are reached.

For more detail, see amended statutory sections listed above or the Revenue Committee statement and final enrolled bill text.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.