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LB 613

Change provisions relating to the disclosure of tax information to municipalities

109th Legislature (2025-2026) Introduced by Bob Andersen

Gives municipalities limited access to state tax data (three requests per year) to verify local sales tax receipts and incentive program participation, while protecting taxpayer co

Approved by Governor on June 4, 2025
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Bill Summary · LB 613

Summary — LB 613 (2025)

Title: Change provisions relating to the disclosure of tax information to municipalities
Introduced: Jan 22, 2025 (Sen. Bob Andersen) — Approved by Governor: June 4, 2025

Purpose / Intent

LB 613 clarifies and expands the circumstances under which the Nebraska Department of Revenue (Tax Commissioner) may disclose certain sales/use tax and tax-incentive participation information to municipalities. The bill aims to give municipalities enough information to certify and verify local option sales tax receipts while preserving taxpayer confidentiality and limiting administrative burden.

Key provisions

  • Amends Neb. Rev. Stat. § 77-2711:

    • Limits municipalities that levy a local option sales tax to three requests per year to the Tax Commissioner for information about retailers collecting that tax.
    • Prohibits the Tax Commissioner from providing data that would disclose specific revenue, expenses, operations, or other business-specific financial details of any particular business.
    • Requires the Tax Commissioner to provide confidential sales and use tax returns to a certified individual designated by the municipality by sending the return directly to that individual for review.
    • Allows disclosure of confidential information to another municipal employee only to verify narrowly defined information (limited verification purpose).
    • Retains existing confidentiality safeguards and enumerated exceptions.

  • Amends Neb. Rev. Stat. § 77-27,144 (Local Option Revenue Act):

    • Adds a new subsection relating to crediting of tax levy proceeds.
    • Clarifies language about qualifying businesses providing municipalities certain data on participation in incentive programs referenced in subsection (7).
    • Permits a municipality to request, before June 30 each year, a list of local businesses participating in the specified incentive acts.

  • Amends Neb. Rev. Stat. § 77-5725 (Nebraska Advantage Act):

    • Harmonizes disclosure/reporting language with the changes made to § 77-27,144.

  • Repealer clause for original sections as amended.

Who is affected

  • Municipalities that levy local option sales taxes — gain limited, periodic access to state tax data and lists of local businesses participating in state incentive programs.
  • Tax Commissioner / Department of Revenue — must process and respond to up to three municipal requests annually and follow new procedures for transmitting confidential returns to designated certified individuals.
  • Local retailers and businesses — continue to be protected from disclosure of business-specific financial operations, though they may be included on annual participant lists for incentive programs.
  • Municipal employees and designated municipal representatives — may receive certain confidential returns or limited verification access under the new rules.

Procedural history / timeline

  • Referred to Revenue Committee: Jan 24, 2025; hearing Feb 20, 2025 (advanced to General File).
  • Placed on Final Reading: Apr–May 2025; Passed Final Reading 45–3–1 on May 30, 2025.
  • Presented to Governor May 30, 2025; Approved by Governor June 4, 2025.

Stakeholder positions

  • Proponents included city officials and the League of Nebraska Municipalities emphasizing certification/verification needs.
  • Neutral testimony came from statewide chambers of commerce and industry associations concerned about confidentiality and administrative impacts. No formal opponents were listed in committee records.

Practical impact

LB 613 balances municipal needs for transparency and verification of local option sales tax remittances and incentive participation with protections for taxpayer confidentiality. It limits the frequency of municipal requests (three annually) and forbids disclosure of business-specific operational/financial details, while enabling municipalities to receive returns through a certified municipal designee and to request annual lists of participating local businesses in incentive programs.

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

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