Nebraska recently made changes related to their local tax rate structure to create Good Life Districts with alternate state and local sales tax rates. The Good Life Districts were created in LB1317, Section 81, and the first zones went into effect April 1, 2024. Additional Good Life Districts have been approved with effective dates of July 1, 2024, and October 1, 2024.
The legislation behind these Districts is intended to more fairly distribute sales tax dollars by adjusting both the state and local rates for sales tax within certain geological areas. Businesses in Nebraska will have to pay special attention to the exact locations of their sales to ensure they are correctly reporting tax on returns to ensure areas within Good Life Districts are being reported at a lower state rate but a higher local rate.
Nebraska has made a motion to the Streamlined Sales Tax Board to allow alternative rates; right now, they are out of compliance with the SST Agreement. The motion seeks to amend Section 308 to allow more than one state rate, provided the rate is identified in files provided under Section 305 and that the rate applies to all taxable transactions in a defined geographical area.
For more information on when these local rates go into effect, see the Nebraska Department of Revenue page here: https://revenue.nebraska.gov/businesses/sales-and-use-tax
These rates are also being updated in the Nebraska Sales Tax Rate Finder website here: Nebraska Sales Tax Rate Finder
(Nebraska Department of Revenue, Notification to Permitholders of Changes in Local Sales and Use Tax Rates, March 5, 2024)