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LR 11CA

Constitutional amendment to prohibit governmental entities from imposing any taxes other than retail consumption taxes and excise taxes

109th Legislature (2025-2026) Introduced by Brian Hardin

Nebraska proposal LR 11CA would ban all taxes except retail sales/use and excise taxes from Jan 1, 2028; voters decide in 2026, affecting all gov't entities.

Hardin MO33 prevailed
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WeVote Research Nonpartisan
Bill Summary · LR 11CA

Summary: LR 11CA — Proposed Constitutional Amendment to Restrict Taxes to Retail Consumption and Excise Taxes

Overview

  • Bill number and type: LR 11CA, a proposed constitutional amendment (resolution) in the Nebraska Legislature.
  • Sponsor(s): Introduced by Hardin (District 48) and Lippincott (District 34).
  • Introduced: January 13, 2025.
  • Current status: Motion to LR11CA by Hardin (MO33) prevailed; assigned to the Revenue Committee for consideration.
  • Purpose: To add a new provision to the Nebraska Constitution that would prohibit governmental entities from imposing any taxes other than retail consumption taxes and excise taxes, effective January 1, 2028.

What the bill would change (Key provisions)

  • New constitutional prohibition: Adds Article VIII-14 to the Nebraska Constitution.
    • Wording (summary): “Notwithstanding any other provision of this Constitution, beginning , Nebraska may impose taxes other than retail consumption taxes or excise taxes.”
  • Effective timeline:
    • Submitting to voters: At the general election in November 2026, the proposed amendment would be submitted to Nebraska electors for approval or rejection.
    • Effective date of restriction: Beginning January 1, 2028, no governmental entity in Nebraska may impose taxes other than retail consumption taxes or excise taxes.
  • Ballot language (for voters): The measure would ask to approve a constitutional amendment to provide that, beginning January 1, 2028, no governmental entity in Nebraska may impose taxes other than retail consumption taxes or excise taxes. Ballot options: “For” or “Against.”

Who would be affected

  • Entities subject to the prohibition: All governmental entities within the State of Nebraska, including the state and its political subdivisions (e.g., counties and municipalities).
  • Tax types permitted after the effective date: Only two categories of taxes—retail consumption taxes (e.g., sales and use taxes) and excise taxes (taxes on specific goods or activities).
  • Taxes that would be prohibited: Any other forms of taxation currently used by state or local governments, such as income taxes, property taxes, franchise taxes, corporate taxes, gross receipts taxes, wealth taxes, and similar broad-based or non-retail/excise taxes.

Procedural and timeline notes

  • Legislative process: The proposal is a constitutional amendment introduced as LR 11CA and referred to the Revenue Committee for consideration.
  • Voter consideration: If advanced, the amendment would be placed on the ballot for the November 2026 general election.
  • Constitutional requirement: If approved by voters, the amendment would take effect on January 1, 2028, altering the authority of governmental entities to levy taxes beyond retail and excise taxes.
  • Status nuance: The notation “Hardin MO33 prevailed” indicates a procedural action within the committee or chamber related to LR11CA, but the bill’s substantive path remains the voter-approved constitutional amendment described above.

Potential implications to consider

  • Revenue structure: The state and local governments would need to rely on retail sales/use taxes and excise taxes to fund public services, potentially reshaping tax policy and revenue stability.
  • Tax policy flexibility: The constraint could limit options for broad-based taxation (e.g., income or property taxes) and would require consideration of how essential services are funded.
  • Economic considerations: Depending on the tax mix, this could affect tax incidence, administrative efficiency, and competitiveness, with differing impacts across households and businesses.

If you’d like, I can compare this proposal to Nebraska’s current tax framework or outline potential fiscal scenarios under different assumptions.

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

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