By Lauren M. Curran
Nebraska Governor Jim Pillen has signed legislation that changes the state sales tax rate, amends definitions and criteria under the Good Life Transformational Projects Act, and establishes requirements pursuant to the Good Life Economic Development Act. (L. 2025, L707, effective 06/04/2025, or as otherwise noted.)
State sales tax rate.
Prior to October 1, 2025, the state sales tax rate is 5.5%, except for Good Life Districts (GLD) where the rate is 2.75%. Beginning October 1, 2025, the exception for GLD is eliminated, and the state rate of 5.5% will apply. However, any transactions, excluding sales of aircraft, all-terrain vehicles, barges, motor vehicles, motorboats, railroad rolling stock, semitrailers, and trailers by a GLD applicant or an enhanced employment area GLD retailer that physically occur within a GLD and within the corporate limits of a city of the metropolitan class will be subject to a state sales tax rate that is 50% the state sales tax rate.
On and after October 1, 2025, a GLD applicant or GLD retailer will be eligible for a state refund of 50% of the state sales tax paid on new development costs for a new business, additional GLD retailer, or relocated good life district retailer to the extent there is excess allocation available at the time they are placed in service.
Good life transformational projects.
The bill amends several definitions associated with the Good Life Transformational Projects Act and the Good Life Economic Development Act, including controlling property rights, enhanced employment area, good life district retailer, and good life district applicant.
Creation of GLD.
The bill also requires GLDs to demonstrate certain investment, job creation, and sales thresholds to establish a GLD. New development investments must exceed specific amounts based on location of the GLD. For instance, in a city of the metropolitan class, GLDs need to invest at least $1 billion, and 1,000 new jobs must be created. In counties with a population of 100,000 or more, at least 20% of sales must be to nonresidents or generate at least 600,000 out-of-state visitors to Nebraska per year.
Occupation tax.
Upon establishing a GLD economic development program, a city is authorized to establish a general business occupation tax as a local source of revenue. The occupation tax may be imposed upon the businesses and users of space located within the GLD program area.
Application and reporting requirements.
The bill details application and reporting requirements for the programs.
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