Bill
LB 315
LB 315 would sunset Nebraska's biennial corporate reporting and occupation tax, reforming the regime with a 1/1/2026 end date and penalties including possible dissolution.
LB 315 (Nebraska) – Summary
Purpose and intent
- LB 315 aims to reform and ultimately sunset Nebraska’s biennial reporting and occupation tax regime for domestic and foreign corporations. The bill would amend several sections of the Nebraska Reissue Revised Statutes to harmonize and repeal certain original provisions, and to set a sunset date for the current biennial report and occupation tax requirements.
Key provisions and changes
- Sunset/termination of current requirements: The bill sets an end-date framework for the existing biennial reports and occupation taxes, tying their ongoing applicability to a specific sunset timeline. The stated intent is to repeal the current framework unless extended by further action.
- Biennial reports: Domestic corporations subject to the Nebraska Model Business Corporation Act would be required to deliver a biennial report to the Secretary of State. The report is due by March 1 of each even-numbered year, with the reporting window ending prior to January 1, 2026 (per the draft language), and delinquency rules kicking in if filed late.
- Occupation tax: In addition to the biennial report, there is an occupation tax due concurrently. The tax is calculated based on the corporation’s paid-up capital stock, with a tiered schedule of dollar amounts. The schedule is complex and detail-heavy, with rates escalating as paid-up capital increases (ranging from lower amounts at smaller capital levels to higher amounts at larger levels).
- Delinquency and dissolution: If the report and occupation tax are not received by the specified deadline, notices would be issued, and corporations could face administrative dissolution if they fail to file/pay by the grace period (e.g., April 15 following the deadline).
- Compliance and filing: The Secretary of State is responsible for filing conformance checks of the report and for processing the occupation tax once submitted in the required form and format. Signatures on the report can be digital or electronic if compliant with existing statutes.
- Legislative scope: The bill would amend sections 21-301, 21-303, 21-304, 21-306, 21-313, 21-323, and 21-325, Reissue Revised Statutes of Nebraska, and would repeal the original sections in order to align the statutes with the sunset framework and harmonized provisions.
Who is affected
- Domestic and foreign corporations doing business in Nebraska (including those that have domesticated in the state) would be subject to the biennial report and occupation tax requirements during the interim period covered by the sunset framework.
- The Secretary of State would administer the biennial reporting process and monitor compliance, including notices and potential dissolution for noncompliance.
- Corporate officers (e.g., president, vice presidents, secretary, treasurer) who sign the biennial report, and corporate tax/finance teams responsible for calculating and remitting the occupation tax, would be involved in compliance.
Procedural and timeline aspects
- Introduced: January 16, 2025
- Hearing: Notice of hearing set for February 4, 2025 (Committee: Banking, Commerce and Insurance, Chair: Senator Mike Jacobson)
- Status: Moving through the Legislature with a sunset-oriented reform approach
- Effective date: The draft language indicates a deadline framework that culminates around January 1, 2026, for the current biennial reporting and occupation tax regime, with dissolution consequences for noncompliance if not remedied by April 15, (in each even-numbered year before the sunset).
Notes
- The bill’s title references “sunset date for required biennial reports of and occupation taxes on domestic and foreign corporations,” and the text provides concrete due dates and a capital-stock-based tax schedule, albeit in a lengthy, detailed format. If enacted, readers should review the final enacted language for precise sunset dates and any transitional provisions.
Compiled from official sources — confirm details with the bill’s official record.
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