Revenue Committee
January 22, 2026
Committee Chair: Sen. Brad von Gillern | Bills Heard: 5 | Full Transcript (PDF)
LB757: Aircraft Lease-for-Resale Sales Tax Exemption
Introduced by: Sen. Brad von Gillern | Testimony: 2 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Nebraska seeks to clarify aircraft leasing tax rules to compete with Iowa and other states. LB757 would allow companies to defer sales tax on aircraft purchases and pay tax over time through lease payments, a treatment already available for other business equipment. The bill requires minimum annual lease payments of 7.5% of aircraft value.
Why it matters: Aircraft owners are registering planes in Iowa and other states to avoid Nebraska's upfront sales tax. The state loses 100% of tax revenue when aircraft leave. Proponents argue the state will eventually recover more through lease payments plus personal property taxes, while airports worry about losing immediate funding for infrastructure projects.
What they're saying: - Proponents: "This clarifies an existing statute the Department of Revenue changed unilaterally five years ago without legislative action. All neighboring states allow this. The breakeven is 13-15 years, and we'll gain ancillary benefits like fuel sales, maintenance, and pilot employment." - Opponents: "We're trading a guaranteed $550,000 upfront sales tax for uncertain annual payments of $41,250. The Aeronautics Capital Improvement Fund has used $5.4 million over two years to leverage $90 million in federal airport grants. We can't afford that risk."
By the numbers: Breakeven period: 13.3-15.5 years. Aeronautics fund has supported 60+ airport projects and $90 million in federal grants over two years.
What's next: No vote was taken. The bill remains in committee.
Committee sentiment: Supportive: Sen. Mike Jacobson, Sen. Tony Sorrentino, Sen. George Dungan Unclear: Sen. Kathleen Kauth, Sen. Teresa Ibach
Sentiment estimated from questions and comments — not stated positions.
LB749: Eliminate Duplicate Tax Information Filing
Introduced by: Sen. Tony Sorrentino | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska's State Auditor seeks to eliminate redundant tax reporting to the Department of Revenue. LB749 would remove the requirement for the Auditor's Office to annually provide bond and nonbond tax request amounts from municipal budgets, since the Department of Revenue already receives this information through the Certificate of Taxes Levy (CTL) certification process.
Why it matters: The duplicate filing wastes government resources and can create inconsistencies when valuation information changes. Eliminating it streamlines state aid calculations with no fiscal impact.
What they're saying: - Proponents: "The Department of Revenue already gets this information through the CTL process. This is a simple efficiency measure that eliminates unnecessary duplication."
What's next: No vote was taken. The bill remains in committee.
LB900: Increase Distress Warrant Fees for Tax Collection
Introduced by: Sen. Dan Lonowski | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska sheriffs seek a tenfold increase in distress warrant fees to reflect actual collection costs. LB900 would raise the fee for issuing distress warrants from $2 to $20, the first increase since 1989. The bill also consolidates the $1 levy fee into the $20 fee and adjusts commission thresholds from $100 to $500 to account for inflation.
Why it matters: County sheriffs say the current fee doesn't cover the time and resources required to collect delinquent personal property taxes on mobile homes and other property. But the fee is paid by delinquent taxpayers—people who already can't pay—raising fairness concerns.
What they're saying: - Proponents: "The $2 fee hasn't changed since 1989. Adjusted for inflation from 1947, it would be much higher. Serving warrants is time-consuming and dangerous work. Delinquent taxpayers have opportunities to declare indigency." - Opponents: "We're increasing the burden on people who already can't pay. The fiscal note projects only $193,000-$205,000 in additional revenue, suggesting many won't be able to pay the higher fee anyway."
By the numbers: Fee increase: $2 to $20. Last increase: 1989 (from $0.50). Projected additional revenue: $193,000-$205,000 annually.
What's next: No vote was taken. The bill remains in committee.
Committee sentiment: Supportive: Sen. Tony Sorrentino, Sen. Mike Jacobson Skeptical: Sen. George Dungan, Sen. Kathleen Kauth
Sentiment estimated from questions and comments — not stated positions.
LB848: Back-to-School Sales Tax Holiday
Introduced by: Sen. John Cavanaugh | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Senator Cavanaugh proposes a back-to-school sales tax holiday to help Nebraska families manage rising costs. LB848 would exempt clothing, school supplies, computers, and calculators from all sales taxes during the first weekend in August. The bill is modeled on similar legislation in Missouri and follows a pattern used in 18 states.
Why it matters: Nebraska families are struggling with persistent inflation and rising back-to-school costs. The holiday would provide relief while keeping shopping dollars in Nebraska instead of having families cross borders to Iowa or Missouri for tax-free purchases.
What they're saying: - Proponents: "Families face unavoidable back-to-school purchases all at once. Eighteen states already do this. It keeps shopping in Nebraska and increases foot traffic for retailers. Retailers can manage compliance if definitions align with streamlined sales tax." - Skeptics: "How will retailers determine which items qualify? We've had compliance issues before with tax changes."
By the numbers: Fiscal impact: $3.6 million in state tax revenue loss. Holiday duration: One weekend (Friday-Sunday) in early August.
What's next: No vote was taken. The bill remains in committee. Sponsor indicated willingness to align dates with Iowa and consider additional items from LB865.
Committee sentiment: Skeptical: Sen. Dave Murman Unclear: Sen. George Dungan, Sen. Mike Jacobson, Sen. Kathleen Kauth
Sentiment estimated from questions and comments — not stated positions.
LB865: Sales Tax Holiday on Back-to-School and Child Care Items
Introduced by: Sen. Jason Prokop | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Senator Prokop proposes a sales tax holiday on back-to-school and child care items to ease family affordability pressures. LB865 would exempt clothing, footwear, child care items, and school supplies (all priced at $100 or less) from sales taxes during the last weekend of July. The bill targets the moment when families make large unavoidable purchases for school and child care.
Why it matters: Nebraska families are struggling with persistent inflation. Child care costs are up 24% year-over-year, and school supplies are up 9%. Iowa and Missouri already offer similar holidays, drawing shopping dollars away from Nebraska. The holiday would keep consumer spending in-state while providing relief to working families.
What they're saying: - Proponents: "These are necessities families cannot delay. Eighteen states already do this. It keeps shopping in Nebraska and helps families who are stretched thin. Child care owners see firsthand how families struggle to afford basic items." - Retailers: "We support this if definitions align with streamlined sales tax. We recommend matching Iowa's dates to prevent split shopping trips."
By the numbers: Fiscal impact: $3.8 million in 2027, $4.1 million in 2028. Holiday duration: Last Friday of July through following Sunday. Item price limit: $100 per item.
What's next: No vote was taken. The bill remains in committee. Sponsor indicated willingness to align dates with Iowa and coordinate with LB848.
Committee sentiment: Unclear: Sen. Tony Sorrentino, Sen. Dave Murman, Sen. Mike Jacobson, Sen. Teresa Ibach
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The Revenue Committee held hearings on four bills. LB848 and LB865 were heard jointly with both sponsors opening, followed by combined proponent and opponent testimony. Committee Chair von Gillern indicated he would not request executive session votes on any bills. The committee noted that written position comments must be submitted by 8 a.m. on the day of the hearing via nebraskalegislature.gov to be included in the official record.
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