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Unicameral Update: Rory Wins the Masters & Revenue Package Update

April 13, 2025

All is right with the world right now as Rory McIlroy finally won the Grand Slam of golf.  I justified spending the past three hours glued to the television by also summarizing the latest proposed amendments to the emerging revenue package.  For those of you that don’t like golf, at least you will benefit from my reading while I watched.

On Friday, the Revenue Committee advanced LB169 from committee with AM965, and it will join previously advanced LB170 by Senator Brandt LB170 with AM603.  These bills begin to give us a clearer picture of what we will see for a Revenue package this session.  I say begin because we still expect more changes and are working on some of them.  But for now, this what has made its way to the floor of the Legislature:

LB169 as amended by AM965 would remove the tax from a variety of services and increase cigarette taxes.

  • Telefloral Deliveries defined as amounts received by Nebraska florists who make deliveries in Nebraska pursuant to instructions received from florists in other states
  • Cleaning and Repair of Clothing except coin operated laundry machines
  • Hair care and Hair Removal services
  • Pet-related services other than veterinary services and services provided to livestock
  • Taxi, Limousine, Chartered flights; and other transportation services
  • Travel Agency Services
  • Dating Services
  • Interior Design and Decorating Services
  • Telemarketing Services
  • Nail Care Services
  • Dance, Golf and Tennis Lessons
  • Sightseeing by ground vehicles
  • Skin Care Services except services that are part of a course of medical treatment and are provided by or under the care or supervision of a licensed health care practitioner or in a licensed health care facility
  • Massage Services, except for those that are part of course of medical treatment or are provided by or under the care or supervision of a licensed massage therapist and in a licensed massage therapy establishment or other location specifically permitted in the Massage Therapy Practice Act
  • Swimming Pool Cleaning and Maintenance services
  • Tattoo and Body Modification services except for any such services that are part of a course of medical treatment and are provided by or under the care or supervision of a licensed health care practitioner or in a licensed health care facility
  • Weight Loss services except services that are part of a course of medical treatment and are provided by or under the care or supervision of a licensed health care practitioner or in a licensed health care facility.
  • $1.36 tax per pack of cigarettes (an increase of .72 cents)
    • $1.18 to General Fund (was .49 cents)
    • $.06 cents to DHHS Cash Fund for cancer research (was $.03 cents)
  • $.32 cents per pack of 20 heat not burn cigarettes and proportional tax for each cigarette over 20.  All funds go to General Fund.

LB170 as Amended by AM603 would eliminate the tax exemption from candy and soft drinks, and increase taxes on alcohol and spirits and cigarettes.

  • Imposes sales tax  on “candy” and “soft drinks”
    • Candy is defined as a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. Candy does not include any preparation that contains flour or that requires refrigeration
    • Soft Drink is defined as nonalcoholic beverages that contain natural or artificial sweeteners. Soft drink does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes or that contain greater than fifty percent of vegetable or fruit juice by volume.
  • Modifies tax on alcohol and spirits based on gallons manufactured or shipped in Nebraska via a wholesaler:
    • Less than 100,000 gallons taxed $2.75 cents per gallon
  • More than 100,000 gallons taxed at $4.50 cents per gallon
  • $1.36 tax per pack of traditional cigarettes (an increase of .72 cents)
    • $1.21 to General Fund (was .49 cents)
  • $.32 cents per pack of 20 heat not burn cigarettes and proportional tax for each cigarette over 20.  All funds go to the General Fund

Neither of these bills have been scheduled for debate, however we expect them to be on the agenda later this week.  Tomorrow, senators will take up LR20CA which would allow Nebraska voters to decide whether mobile sports betting would be legalized in Nebraska.  Currently, sports betting is legal in person at Nebraska Casinos.  No one can argue that there isn’t substantial illegal sports betting happening in the state every day.  The question senators will decide is whether they support letting voters decide based on the current proposal.  If they don’t pass LR20CA, it is expected that there will be another petition drive to put the question to voters.  The primary difference between the two approaches is that the tax revenue will undoubtedly be higher in the current resolution than it would be in a petition proposal. 

Please let us know if you have any questions or want additional information.  Have a great week!

Korby M. Gilbertson
Radcliffe Gilbertson & Brady