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LR 10CA

Constitutional amendment to require the state to impose a consumption tax or an excise tax on all new goods and services and to provide a tax exemption for grocery items

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

Nebraska would impose a statewide retail consumption or excise tax on all new goods/services from 2028, possibly allowing subdivisions; groceries off-premises exempt; ballot 2026.

Hardin MO34 prevailed
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WeVote Research Nonpartisan
Bill Summary · LR 10CA

Summary: LR 10CA — Proposed Constitutional Amendment to Create a Statewide Consumption/Excise Tax

Overview

  • Bill number & type: LR 10CA, a proposed constitutional amendment (resolution).
  • Introduced: January 13, 2025 by Legislators Hardin, Lippincott, and Lonowski.
  • Status: Reference indicates “Hardin MO34 prevailed” in committee/procedure; the measure advances as a proposed constitutional amendment for voter consideration.
  • Introduction context: Filed in the 109th Nebraska Legislature, First Session.
  • Vote/ballot plan: To be submitted to voters at the November 2026 general election.

Purpose and intent

  • To add a new constitutional provision (Article VIII-15) requiring the state to implement a retail consumption tax or an excise tax on all new goods and services.
  • The Legislature would have the authority to authorize political subdivisions (e.g., counties or municipalities) to impose similar taxes.

Key provisions

  1. Tax base and scope

    • Beginning January 1, 2028, Nebraska shall impose a retail consumption tax or an excise tax on all new goods and services.
    • The tax could be implemented at either the statewide level (retail consumption tax) or via targeted excise taxes, as applicable by the state.

  2. Local option for subdivisions

    • The Legislature may authorize political subdivisions to impose the same taxes (consumption or excise) within their jurisdictions.

  3. Exemptions

    • There shall be no exemptions to the tax regime except for grocery items purchased for off-premises consumption (i.e., groceries bought to be consumed elsewhere, such as at home).

  4. Constitutional amendment mechanism

    • The amendment would be placed on the ballot for approval or rejection by Nebraska voters in the November 2026 general election.
    • Ballot language frames the proposal as adding taxation on all new goods and services with the specified grocery-item exemption and potential subdivision authorization.

Who or what would be affected

  • State government: Required to impose a retail consumption or excise tax on all new goods and services starting in 2028.
  • Local governments (subdivisions): May be authorized by the Legislature to impose similar taxes within their jurisdictions.
  • Consumers: Subject to the new tax on broad categories of goods and services (except grocery items purchased for off-premises consumption).
  • Businesses: Tax collection responsibilities would extend to the new consumption/excise taxes on new goods and services.

Procedural and timeline notes

  • Submission to voters: If enacted into law, the amendment would be placed on the November 2026 general election ballot for voter approval.
  • Effective date: January 1, 2028 (start of tax imposition).
  • Caption/ballot language: Ballot wording would ask voters to approve a constitutional amendment to impose the tax on all new goods and services, authorize subdivisions to do the same, and exclude grocery items purchased off-premises from taxation.

Potential considerations for readers

  • Broadens or creates a new tax base across most goods and services, with a targeted exemption for groceries.
  • Shifts or consolidates revenue-raising power to the state, with potential delegation to local governments.
  • Would require a constitutional amendment, meaning it changes Nebraska’s foundational rules and would need voter ratification to take effect.

If you’d like, I can compare this proposal to current Nebraska tax policy or outline potential fiscal and economic implications based on typical consumption/excise tax implementations.

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

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