Bill
LB 117
Nebraska LB117 would exempt residential electricity, natural gas, propane, and sewer from sales/use tax starting Jan 1, 2026, benefiting households and separately billed units.
LB117 – Summary
Purpose and intent
- LB117 aims to provide a Nebraska sales and use tax exemption for certain residential utilities. Specifically, it would exempt gross receipts from the sale, lease, rental, storage, use, or other consumption of electricity, natural gas, propane, and sewer utilities when used for residential purposes. The measure would replace the existing language in the relevant statute with updated provisions reflecting this exemption and set an operative date.
Key provisions
- Amended statute: Section 77-2704.13, Reissue Revised Statutes of Nebraska, is amended and repealed and reenacted to implement the exemption.
- Exemption scope: The exemption would apply to gross receipts from:
- The sale, lease, rental, storage, use, or other consumption of electricity, natural gas, propane, and sewer utilities that are used for residential purposes.
- Definition of residential use:
- Includes primary residences such as apartments where the utility cost is billed as a separate line item from rent.
- Includes commercial properties where the primary use of the property is as one or more primary residences.
- Alignment with existing exemptions: The bill is framed within the broader structure of the state’s sales and use tax exemptions for various energy sources and utilities, but adds a distinct residential utilities exemption for the listed services.
- Effective date: The exemption becomes operative on January 1, 2026.
- Repeal and replacement: The original section (77-2704.13) is repealed and replaced with the revised language containing the residential utilities exemption.
Who is affected
- Residential customers: Individuals and households that use electricity, natural gas, propane, and sewer utilities in their primary residences (including separately billed apartment units) would see these utilities exempt from Nebraska sales and use tax in the transactions covered.
- Property owners/landlords: In multi-unit buildings where utilities are billed separately from rent and used as primary residences, the exemption would apply.
- Utilities and sellers/lessees: Utility providers and retailers/suppliers of these services would be subject to the exemption for qualifying residential uses.
Procedural and timeline aspects
- Introduced: January 10, 2025
- Committee: Revenue
- Hearing: January 31, 2025
- Status note: Conrad name added (reflecting sponsorship or cosponsorship changes)
- Operative date: January 1, 2026
- Legislative action: Repeals the existing section and enacts amended language to implement the exemption
Overall impact
- The bill seeks to reduce the sales and use tax burden on residential utility costs for electricity, natural gas, propane, and sewer services, starting in 2026, by exempting these gross receipts from taxation when used for residential purposes.
Compiled from official sources — confirm details with the bill’s official record.
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