NESCPA Legislative Update: Feb. 4, 2024

The Legislature has finished more than a third of the 2024 legislative session.

Throughout the week, the Governor's plan to provide 40% property tax relief faced tough opposition. Multiple opponents submitted online comments and lined up to testify on Tuesday against a bill that would provide for approximately $250 million in transfers from State Agency Cash Funds to the General Fund (LB 1413).

On Thursday, a proposal to introduce property tax levy limits (LB 1241) was heavily criticized by political subdivisions. Similarly, school districts strongly opposed LB 1316, a bill that would remove a provision that allows school boards to override levy limits imposed with a 70% vote of the school board.

The business sector (including your Nebraska Society of CPAs) also raised concerns about a set of bills, discussed Thursday, which aimed to either remove current sales tax exemptions or introduce new taxes on various items and services, including soda, candy, advertising, and professional services like accounting and legal assistance, as well as on parts for repairing and replacing agricultural machinery. Special thanks to Stacy Watson from Lutz and Brian Klintworth from HBE LLP for testifying on behalf of the Nebraska Society in opposition to LB 1308, which would eliminate the sales and use tax exemption on business to business accounting services, in the Revenue Committee’s hearing on Thursday!

On a positive note, LB 854, the Society’s affirmative legislation that would allow candidates to sit for the CPA exam with 120 hours of qualifying college credit and a bachelor’s degree, has been voted out of committee and placed on General File. General File is the first time the full Legislature has the opportunity to debate and vote on a bill.

In other news, the Society requested additional language be added to LB 1059, providing further technical changes to the Nebraska Pass-Through Entity Tax law, which passed in 2023. The hearing was held Jan. 25 and remains in committee at this time.

The Society will be holding a 2-hour Nebraska PTET Mechanics Webcast on Feb. 13. Click here to register.

As a reminder, Daily Legislative Reports and other Legislative News may be found on our website at https://www.nescpa.org/advocacy/news.

Please feel free to contact me if you have any questions or would like more information on bills moving through the Legislature this session.