[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":44,"_46":47,"_48":49,"_50":51,"_52":53,"_54":55,"_56":57,"_58":59,"_60":61,"_62":63,"_64":65,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},"mediaId",6303918,"mediaKeyId","2469193-868f0d673129bc526310f07bcd17c1a5","parentId",2469193,"title","Lawmakers debate replacing bifurcated vape tax with wholesale percent; retailers warn 40% rate would push sales out of state","audioSeconds",0,"startMs",7295000,"endMs","viewUrl","/Search/View?dp=1&key=2469193-868f0d673129bc526310f07bcd17c1a5&start=7295&end=7295","thumbnailUrl","https://assets.pipeline.soar.com/2469193-868f0d673129bc526310f07bcd17c1a5/thumbnail_7295000.jpg","articleUrl","/articles/6303918/Nebraska/Lawmakers-debate-replacing-bifurcated-vape-tax-with-wholesale-percent-retailers-warn-40-rate-would-push-sales-out-of-state","mediaUrl","https://secure.pipeline.soar.com/6303918-3b5b48e2edfcb664b57f6d72c0bfd4fc/orig.mp4?Expires=1771152765&Signature=M3--7-hrNay479tacUEE3XYRBEUa0ll-zppeuNPntiS0N7ha0Y~JNxtk478u8TicUdThHjP2dFU7ko2sTezhwc~026xWvoTDMme5AU1eRM3SOwEHaFaWBFcZ0sIFsQDX8jqn9m0OxQBw07pGj7rHYg~MP8W1PHjnnDmV7BHjPh-mMh9njImv2eRQtJWqnuxpytthOSzDJXQrfZ5ZGL4DXidfsvC1TTZZejAX5pCK5ny8WExlYrd7RYVO5i20qH-n2ySOPb3ZQ1FMFG1N2aJt1qPB~npuzNfwKGQWHBJ8rKHxe2nw4ujseojt4v-M0PC3xfPH~DQ0I8UCs4qai9SkvA__&Key-Pair-Id=KUT5TJCACFTXG","author","Nebraska Legislature","date","2025-02-28T00:00:00Z","article","Senator Jana Hughes introduced LB 712 to the Revenue Committee and proposed eliminating Nebraska’s bifurcated electronic nicotine delivery systems (ENDS) tax in favor of a single wholesale percentage. Her draft calls for a 40% wholesale tax on vape products as an alternative to the current mix of a per‑milliliter rate for small‑volume products and a 10% wholesale tax on larger products.

Hughes said a single wholesale percentage better tracks product price and inflation, addresses inequities in the current bifurcated system and aligns ENDS taxation with other nicotine excise taxes. “When you do a flat 5¢ per milliliter, 20 years from now, what does that 5¢ mean?” Hughes asked, arguing that wholesale percentage taxes scale with market prices and avoid repeated statutory revisions.

Opponents representing vape retailers, convenience stores and business associations told the committee that a 40% wholesale tax would be disproportionately high and risk pushing consumers to unregulated or out‑of‑state sources. Chris Peterson, representing a multi‑state vape retailer, and local store owners said the current bifurcated approach was negotiated recently and that a quadrupling of the tax on many products would jeopardize small businesses, encourage cross‑border purchases and could reverse harm‑reduction gains if adult smokers return to combustible cigarettes.

Health and policy context
Supporters and several senators framed the bill as a public‑health intervention to reduce youth vaping by raising price, noting evidence that price increases reduce youth consumption. Hughes cited a public‑health estimate that a 10% price increase reduces e‑cigarette use among youth by about 7%.

Industry witnesses pushed for a lower wholesale percentage (for example, 20%) or maintenance of the current bifurcated structure while supporting regulation to reduce illicit and flavored products. Several vendors described voluntary store practices — restricting entry to customers 21 and older, scanning IDs at entry and sale, and using child‑resistant packaging and exit bags — to prevent youth access.

Administration and revenue
Committee members asked whether a wholesale tax or a retail tax would be easier to administer. Hughes and witnesses said excise taxes are typically collected at wholesale for enforcement efficiency and that a wholesale percentage would avoid repeated statutory updates caused by changes in package sizes or product lines.

No committee vote was recorded during the hearing. Supporters and opponents signaled a willingness to negotiate on tax rate and implementation details; the sponsor said she was open to amendments and phasing approaches.","mediaType","Video","parentTitle","Revenue Committee - 2/28/2025","oneSentenceSummary","Senator Jana Hughes proposed replacing Nebraska’s bifurcated vaping tax with a uniform wholesale percentage and included a 40% wholesale rate; retailers and industry groups warned the proposed rate would be disproportionately high, push consumers to other markets and could harm small businesses.","taxTitle","2025 Legislature NE, Nebraska","taxId",77675,"location","Nebraska","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_46":81,"_48":82,"_50":83,"_52":84,"_54":55,"_56":57,"_58":85,"_60":61,"_62":63,"_64":86,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},6303924,"Sen. Spivey proposes income‑based circuit breaker for property-tax and rent relief",1706,5538000,7244000,"/Search/View?dp=1&key=2469193-868f0d673129bc526310f07bcd17c1a5&start=5538&end=7244","https://assets.pipeline.soar.com/2469193-868f0d673129bc526310f07bcd17c1a5/thumbnail_5538000.jpg","/articles/6303924/Nebraska/Sen-Spivey-proposes-incomebased-circuit-breaker-for-property-tax-and-rent-relief","https://secure.pipeline.soar.com/6303924-11f92d1706d05af5bc388b46908af584/orig.mp4?Expires=1771152765&Signature=hxZrinK2DsNH95pe6-AJCWpcI3ANnOhbn5nOUPzK6LXl7xC8OfjT5sgRsZLwa9fFYS5pCo-hMrDxa6WX1kq~oU7af9FO5ZhAV5ewJ8paaoEOiUOfCvdidlUaM-LMgjrO3X~Xb4j0x3HnWXCqHepUQF0Fy-bCYCi0~EuQVkLcxQmXp~MbRs1Mk3pnWcpRXw6TSFu8IQFGt-sMtPXWoXtkXnyrTK4LpnBQ~k12cUI88MA2P2GKDFNTzN8IcWWLcnwTUQqct1sUsFgZOzxP01PHQJFgmbeyIsJK4qHgpM71qZIr6wJEyS4FRoy0pYz9oKrnZRg1A5TAeoIJ4mDNNhitYw__&Key-Pair-Id=KUT5TJCACFTXG","Senator Ashley Spivey told the Revenue Committee she introduced LB 439 to target property‑tax and rent relief to Nebraskans most burdened by housing costs. The bill would create a refundable income‑tax credit that reimburses 50% of the tax or rent exceeding 5% of a taxpayer’s federal adjusted gross income, with annual caps of $4,000 for most claimants and $5,000 for taxpayers age 65 or older.

Design and intent
LB 439 would allow qualifying taxpayers to claim the credit for primary residences and places where renters pay rent; homeowners would be limited to property taxes paid on the taxable value of a primary residence up to 200% of the county average assessed value for single‑family residential property. Spivey said the goal is not broad, universal property‑tax cuts but targeted relief for low‑ and middle‑income homeowners and renters whose housing costs are high relative to income.

Supporters included OpenSky Policy Institute and Habitat for Humanity of Omaha, which offered examples of homeowners whose mortgage payments and taxes rose sharply as assessed values increased. OpenSky said circuit‑breaker programs are used in 17 states and can be calibrated to fit state fiscal constraints; Habitat for Humanity submitted client examples and described families facing doubled mortgage payments due to valuation increases.

Concerns and administration
John Cannon of NACO provided neutral testimony noting possible administrative burdens: the program would require information exchange between county treasurers/assessors and the Department of Revenue, and the bill’s treatment of renters (applying the full rent as an equivalent of property tax) raised questions about proportionality and the best proxy for tax burden. Committee members asked about overlap with existing homestead programs and whether claimants would be able to double‑dip; NACO asked the committee to clarify interactions with the homestead exemption and suggested limiting overlap.

Fiscal considerations
Witnesses and committee members discussed the bill’s fiscal note, which committee staff estimated at hundreds of millions annually in some scenarios. Proponents said the circuit‑breaker design can be adjusted with eligibility levers and caps to fit fiscal constraints and that targeting funds to those most burdened is more equitable than broad cuts. OpenSky urged the committee to consider LB 439 as a tool to direct any future additional property‑tax funding to the most income‑constrained households.

Conclusion
The hearing drew proponent testimony from policy and housing advocates and neutral technical input from county officials. The committee closed the LB 439 hearing without taking final action; the sponsor said she would follow up with technical information and consider adjustments to align the bill with fiscal constraints and administrative capabilities.","LB 439 would create a refundable tax credit that reimburses a portion of property tax or rent for households whose housing costs exceed a defined share of their income; proponents said the design targets the most burdened households, while critics and fiscal analysts urged caution on fiscal impact and administration.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_46":93,"_48":94,"_50":95,"_52":96,"_54":55,"_56":57,"_58":97,"_60":61,"_62":63,"_64":98,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},6303928,"Sen. Kauth reintroduces Prop. 13‑style constitutional amendment; opponents warn of revenue, uniformity risks",2809,2256000,5065000,"/Search/View?dp=1&key=2469193-868f0d673129bc526310f07bcd17c1a5&start=2256&end=5065","https://assets.pipeline.soar.com/2469193-868f0d673129bc526310f07bcd17c1a5/thumbnail_2256000.jpg","/articles/6303928/Nebraska/Sen-Kauth-reintroduces-Prop-13style-constitutional-amendment-opponents-warn-of-revenue-uniformity-risks","https://secure.pipeline.soar.com/6303928-585a6153006200d084091369124984ee/orig.mp4?Expires=1771152765&Signature=Ai~nLPPH66qvdXEPDqEzf5qkTnT4AC2S6rmwVEM730LeuX~85F2wEGnGBlxra1znYfRIexxVFknNrpqntXf5JlR~PLp~XD5HIca0k357W562FgShMdeBgHxzO990CnBp~iDeroDeWAq-NtB~KJM89IDObR0rt4zmeGS8L~mp4RXOOAr1avEXX7fmXS4oXeoIoBh8xL3pFXwl2Q6Q-D-EZoixUOlHhsX4FEnY4lsiwzxqnhNKIjt9DEQNdqFMGLSglSa65g1oz2DT0XeW2rjwADJdFPlqiHMvJLzZoEhqARJK2C7Kk0H8em75Dh-zWwGu7XdWNlP7YT6u3c1h1n2LuQ__&Key-Pair-Id=KUT5TJCACFTXG","Senator Kathleen Kauth told the Revenue Committee she filed LR 12 CA to begin discussion of a property‑tax constitutional amendment modeled on California’s Proposition 13 that would change how residential and agricultural property is assessed and taxed. She said the measure would provide predictability for homeowners by capping reassessment growth and tying taxable value to the sale price (her initial proposal referenced a 1.5% base for residential property).

Kauth said the proposal is intended to protect homeowners — particularly seniors and people on fixed incomes — from sudden, steep increases in property tax bills tied to rapid market appreciation. “The goal of the CA is to not hurt schools, it's to not hurt the counties, it's to not take money away from anyone but it is to put a pin in what people are experiencing with their property tax,” she said.

Opponents from municipal and county associations, chambers of commerce and policy groups told the committee the amendment would undermine the uniformity clause in Nebraska’s constitution, create fiscal instability for local governments and likely shift costs to other taxpayers or state general revenues. John Cannon, executive director of the Nebraska Association of County Officials (NACO), and Lynn Rex of the League of Nebraska Municipalities said the proposal would remove uniformity and introduce wide valuation disparities between neighboring properties that have changed hands at different times.

Key points from testimony
- Sponsor’s intent: Kauth said LR 12 CA is meant to provide predictable, stable property tax liabilities by fixing taxable value at a base sale price with a modest annual escalator (she noted 1.5% as an example for residential property and suggested 1.125% for agricultural land in early drafts). She said the proposal aims to spare people from being priced out of their homes by rapid valuation increases.
- Opponents’ fiscal and legal concerns: Witnesses warned a constitutional assessment limit would force the state or other taxpayers to backfill substantial revenue declines for schools, cities and counties, citing California’s long experience after Prop 13. NACO and municipal witnesses emphasized the constitution’s uniformity clause and assessment‑to‑market requirements used by county assessors.
- Technical proposals and alternatives: Several neutral and proponent testifiers recommended more targeted or technical reforms, such as county reassessment schedules, different treatment for non‑owner occupied or commercial property, or circuit‑breaker style tax credits. Witnesses urged careful design to avoid shifting burdens to renters, businesses or other taxpayers.

Committee discussion
Committee members pressed the sponsor and witnesses on how the amendment would affect agricultural land, how to avoid a long‑term revenue cliff for local governments, and whether alternatives such as valuation caps, circuit breakers or targeted relief would better meet policy goals. The hearing record includes multiple proponent and opponent letters and a range of technical suggestions from property‑tax experts.

No committee vote occurred; the hearing closed after sponsor and stakeholder testimony. Because LR 12 CA is a proposed constitutional amendment, proponents and opponents emphasized constitutional and budgetary consequences rather than a near‑term statutory change.","Senator Kathleen Kauth presented LR 12 CA, a proposed constitutional amendment modeled on California’s Proposition 13 that would cap annual assessment growth and set fixed taxable bases; municipal and county groups warned of uniformity and budget impacts.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_46":105,"_48":106,"_50":107,"_52":108,"_54":55,"_56":57,"_58":109,"_60":61,"_62":63,"_64":110,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},6303933,"Sen. Moser urges doubling Build Nebraska Act sales-tax share to address rising road costs",2033,227000,2260000,"/Search/View?dp=1&key=2469193-868f0d673129bc526310f07bcd17c1a5&start=227&end=2260","https://assets.pipeline.soar.com/2469193-868f0d673129bc526310f07bcd17c1a5/thumbnail_227000.jpg","/articles/6303933/Nebraska/Sen-Moser-urges-doubling-Build-Nebraska-Act-sales-tax-share-to-address-rising-road-costs","https://secure.pipeline.soar.com/6303933-271babb0fd2c3be9480dfc7d108162fa/orig.mp4?Expires=1771152765&Signature=QCSWvWP3xhChR4zh5nYVkjU38PW7I5l6uXZFiLIaQsJVDMOB-cQhLEiQE-hjv5jgyosz-ZsF7mEKpVk08xxPlhW0Xb785qE5C3AiFyX0uJerbn4rVEnfeW4gCPrbc-XjJHbibpYp8xn9xk51nz2INVZts2sZN7LhvSQISZ0QrCbT2S2VI4jL1eD7MqB7tWInI7PMg7fUpxlVFGxnDGjxEfKjdZditA8S1YKgmuHb9yfJHgnusI-ER-n8y0u98CF1koacM9KWlNngkijRx2OAOE3OXcJkuYNAeLuGih0ZNKDuKTjNCl7DIXTJlozlJNBJf6qZFodHdnducSDnncd9hA__&Key-Pair-Id=KUT5TJCACFTXG","Senator Mike Moser, introducing LB 479 to the Revenue Committee, asked lawmakers to increase the share of sales‑tax revenue dedicated to the Build Nebraska Act (BNA) from one quarter of one percent to one half of one percent, saying construction costs have risen sharply and BNA revenue is no longer keeping pace.

The bill would double the current sales‑tax allocation for the BNA, a fund created in 2011 that dedicates 0.25% of the state sales tax to expressway expansion, federally designated high‑priority corridors and reconstruction of existing state transportation infrastructure. “Therefore, we need to increase the percentage of sales tax revenue dedicated to fund the Build Nebraska Act from 1 quarter of 1% to 1 half of 1%,” Moser said in his opening remarks.

Supporters from the construction and engineering sectors told the committee that rising materials, labor and equipment costs and other project risks have increased the state’s highway funding gap. Tyler Chercoigne of the Associated General Contractors–Nebraska chapter said the Nebraska Department of Transportation (NDOT) reported an annual shortfall in the range of $150 million and that construction costs for several major projects have roughly doubled in a few years. Jeannie McClure of the American Council of Engineering Companies of Nebraska and Lynn Rex of the League of Nebraska Municipalities echoed that rising costs delay projects and raise long‑term expenses.

Why it matters: The BNA currently directs about 85% of its receipts to NDOT projects and 15% to city and county roads and streets. Supporters said the dedicated sales‑tax approach broadens the revenue base beyond fuel taxes — important as vehicle efficiency and electric vehicle adoption reduce fuel‑tax yield — and that failing to increase dedicated funds will delay key expressway and corridor work that proponents say affects safety and economic development.

Details and context
- Built in 2011 and effective 2013, the Build Nebraska Act dedicates a quarter‑cent of sales tax revenue for expressway and major corridor projects. Moser noted prior legislation extended the BNA sunset to 2042 and said the program now produces roughly $100 million a year in receipts.
- Witnesses and the introducer cited NDOT’s needs reporting and a Transportation Innovation Act / BNA report showing major project cost growth since 2019–2021 and an NDOT presentation indicating an ongoing annual funding shortfall.
- The bill’s supporters described the split of BNA receipts (85% NDOT / 15% city and county allocation) and said doubling the set‑aside would increase local allocations proportionally. Moser explained that under the existing split a 15% allocation equates to roughly $15 million of a $100 million annual BNA take, and doubling the set aside would raise those amounts proportionally.

Committee discussion and next steps
Committee members asked presenters for traffic counts, allocation formulas and whether a gas‑tax increase should be considered. Supporters said traffic counts and detailed project priority and performance scoring are NDOT’s responsibility and noted earlier bills and proposals that would study or propose alternative revenue sources. Senator Moser said he would be willing to bring LB 479 to the floor for broader debate and that advancing the bill would allow fuller discussion of revenue and budget tradeoffs.

No formal committee vote or final action was recorded during the hearing. The record shows multiple proponents and no registered opponents at the hearing.

Ending
Proponents urged the committee to advance LB 479 for floor debate so members across the Legislature could weigh the tradeoffs between reallocating general‑fund receipts, raising new revenue (for example via fuel taxes) or dedicating more sales‑tax to roads. The committee closed the LB 479 hearing after the introducer’s closing remarks.","Lawmakers and construction and engineering groups told the Revenue Committee that Nebraska’s Build Nebraska Act funding is not keeping pace with construction cost escalation and urged increasing the dedicated sales-tax share from a quarter‑cent to a half‑cent.","actionData","errors"]

Article not found

Lawmakers debate replacing bifurcated vape tax with wholesale percent; retailers warn 40% rate would push sales out of state

Sen. Spivey proposes income‑based circuit breaker for property-tax and rent relief

Sen. Kauth reintroduces Prop. 13‑style constitutional amendment; opponents warn of revenue, uniformity risks

Sen. Moser urges doubling Build Nebraska Act sales-tax share to address rising road costs