Revenue Committee
January 22, 2026
Committee Chair: Sen. Brad von Gillern | Bills Heard: 5 | Full Transcript (PDF)
LB757: Aircraft Leasing Sale-for-Resale Exemption
Introduced by: Sen. Brad von Gillern | Testimony: 2 proponents, 1 opponents, 0 neutral
Sen. von Gillern seeks to clarify aircraft leasing tax treatment, but airport officials warn of revenue loss. 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 but rejected by the Department of Revenue for aircraft five years ago. The bill includes a 7.5% minimum lease payment threshold to ensure state revenue.
Why it matters: Aircraft owners are registering planes in Iowa and other states to avoid Nebraska's upfront sales tax. The Aeronautics Capital Improvement Fund, created in 2023, has used aircraft sales tax revenue to help smaller airports secure $90 million in federal grants. The bill could cost the fund $550,000 per aircraft initially but proponents argue the state will recoup losses through lease payments and ancillary economic activity over 13-15 years.
What they're saying: - Proponents: "This clarifies an existing statute the Department of Revenue changed unilaterally five years ago," said Stacy Watson, a 30-year aviation tax consultant. "Businesses deserve stability." Daniel Cheung noted all neighboring states have similar statutes and Indiana saw economic benefits after adopting one in 2008. - Opponents: Jon Large, representing airport officials, said trading a guaranteed $550,000 sales tax for $41,250 annual payments means "it would take over 13 years to recover what a sales tax would provide in one year." He requested evidence from other states that airports benefit from the model.
By the numbers: Breakeven period: 13.3-13.5 years. Current aircraft sales tax revenue to Aeronautics Fund: $5.4 million over two years. Federal grants leveraged: $90 million.
What's next: No vote was taken. Sen. von Gillern indicated he would reach out to airport officials to discuss protecting infrastructure funding.
LB749: Eliminate Duplicate Tax Information Filing
Introduced by: Sen. Tony Sorrentino | Testimony: 1 proponents, 0 opponents, 0 neutral
LB749 eliminates redundant tax reporting requirement between State Auditor and Department of Revenue. The bill removes the requirement for the State Auditor's Office to annually provide the Department of Revenue with municipal bond and nonbond tax request amounts, since the Department already receives this information through the Certificate of Taxes Levy (CTL) certification process.
Why it matters: The duplicate filing creates unnecessary administrative burden. The CTL reports are also more accurate than the Auditor's separate filing since valuation information may have changed between submissions.
What they're saying: Deputy State Auditor Craig Kubicek said the bill "eliminates the need for duplication of filing" and represents the Auditor's office "looking for efficiencies in government."
By the numbers: No fiscal impact.
What's next: No vote was taken. The bill appears to have committee support as a straightforward cleanup measure.
LB900: Increase Distress Warrant Fees
Introduced by: Sen. Dan Lonowski | Testimony: 2 proponents, 0 opponents, 0 neutral
Sheriffs seek $2-to-$20 fee increase for collecting delinquent personal property taxes, but senators worry about impact on those who can't pay. LB900 would increase the distress warrant fee for the first time since 1989, when it was raised from $0.50. The original fee of $0.25 dates to 1947. The bill also consolidates the $1 levy fee into the $20 fee and adjusts commission thresholds from $100 to $500.
Why it matters: County sheriffs say the fee no longer reflects the actual cost of collecting delinquent taxes on personal property, mobile homes, and cabin trailers. The fee is paid by the delinquent taxpayer, not the general public. However, the increase raises equity concerns for those already struggling financially.
What they're saying: - Proponents: Sergeant Theodore Huber of Buffalo County Sheriff's Office said the fee increase "reflects actual costs of enforcement action" and noted that serving distress warrants is "time-consuming and challenging work." The fee has not been raised in 37 years. - Opponents: Sen. George Dungan expressed concern that "individuals who already can't pay are being assessed a higher fee" and questioned whether the state would ever recover the money or simply add to their financial burden.
By the numbers: Fiscal note estimates $193,000-$205,380 in additional annual revenue. Fee increase: $2 to $20 (a 900% increase). Last increase: 1989. Original fee: $0.25 in 1947.
What's next: No vote was taken. Sen. Lonowski characterized the fee as a "fine for not paying your taxes on time" rather than a tax increase, comparing it to parking ticket penalties.
LB848: Back-to-School Sales Tax Holiday
Introduced by: Sen. John Cavanaugh | Testimony: 2 proponents, 0 opponents, 0 neutral
Sen. Cavanaugh proposes back-to-school sales tax holiday to compete with Iowa and Missouri while providing family relief. LB848 would exempt clothing, school supplies, computer software, graphing calculators, and personal computers from sales tax during the first weekend in August. The bill is modeled after Missouri legislation and aims to address the affordability crisis families face as prices for school supplies remain 9% higher than a year ago.
Why it matters: Iowa and Missouri already have back-to-school sales tax holidays, drawing Nebraska shoppers across state lines. Council Bluffs retailers report the Iowa holiday is second only to Black Friday in foot traffic. The bill would keep consumer dollars in Nebraska and provide modest relief to families during a period of significant unavoidable purchases.
What they're saying: - Proponents: Rich Otto of the Nebraska Retail Federation said sales tax holidays "consistently drive customers into stores" and recommended aligning dates with Iowa to prevent shoppers from splitting purchases. Charles Carder, a child care owner, said families "constantly face decisions" about replacing worn items and providing developmental elements "while ensuring food on the table." - Concerns: Sen. Murman asked if it would be a "nightmare for retailers" to determine which items qualify. The Department of Revenue flagged that bill definitions may not comply with streamlined sales tax.
By the numbers: Fiscal note: $3.6 million in lost state revenue. 18 states have similar holidays. Nebraska students: 300,000+.
What's next: No vote was taken. Sen. Cavanaugh indicated willingness to adjust dates, items, or definitions based on committee feedback and Department of Revenue guidance.
LB865: Sales Tax Holiday on Child Care and School Items
Introduced by: Sen. Jason Prokop | Testimony: 2 proponents, 0 opponents, 0 neutral
Sen. Prokop proposes sales tax holiday on child care and school items to ease affordability crisis for Nebraska families. LB865 would exempt child care supplies, clothing, footwear, and school supplies (all priced at $100 or less) from sales tax during the last weekend of July through the following Sunday. The bill targets the period when families make large unavoidable purchases for back-to-school season.
Why it matters: Child care-related items cost 24% more than a year ago; school supplies are up 9%. These are necessities families cannot delay. Iowa and Missouri already have similar holidays, drawing Nebraska shoppers across state lines. The bill would keep consumer dollars in Nebraska and provide targeted relief when family budgets are stretched thinnest.
What they're saying: - Proponents: Rich Otto of the Nebraska Retail Federation said sales tax holidays "consistently drive customers into stores" and recommended aligning dates with Iowa. Charles Carder, a child care owner, said families face constant decisions about "replacing worn items, keeping up with growth spurts, and providing developmental elements while ensuring food on the table." - Concerns: The Department of Revenue flagged that bill definitions may not comply with streamlined sales tax, which retailers need for system compliance.
By the numbers: Fiscal note: $3.8 million in lost state revenue in 2027; $4.1 million in 2028. Child care costs up 24% year-over-year. School supplies up 9% year-over-year. 18 states have similar holidays.
What's next: No vote was taken. Sen. Prokop indicated willingness to align dates with Iowa and adjust items or definitions based on committee feedback. He noted that some states, like Mississippi, publish sales tax holiday guides to promote awareness.
Session Notes
The committee heard four bills during the January 22, 2026 hearing. LB757 (aircraft leasing) and LB900 (distress warrant fees) generated substantive debate. LB749 (eliminate duplicate filing) was a straightforward cleanup bill with no opposition. LB848 and LB865 (back-to-school sales tax holidays) were heard jointly, with both sponsors indicating openness to combining elements of the two bills. No votes were taken on any bills. Vice Chair Jacobson presided over most of the hearing after Sen. von Gillern introduced LB757. Committee members noted concerns about retailer compliance with streamlined sales tax definitions for the holiday bills and requested clarification from the Department of Revenue.
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