One more time: DST ban in Unicam could yield summer time 'island' in southwest Nebraska

'Consumption tax' enabling bill returns

Gering state Sen. Brian Hardin Thursday introduced a companion “enabling act” to his pair of constitutional amendments replacing most of Nebraska’s tax system with an all-new “consumption tax.”

All three mostly copy versions pushed by former Bayard Sen. Steve Erdman during the 2023 and 2024 Unicameral sessions. None reached the floor, and petition drives for the constitutional amendments fell short last fall of gathering enough valid signatures from registered voters.

Hardin’s Legislative Bill 331, like the reintroduced versions of Erdman’s amendments (Legislative Resolutions 10CA and 11CA), would outlaw all current types of Nebraska taxes except excise taxes and impose a statewide consumption tax on new goods and services.

They envision voters approving the amendments in the November 2026 general election. The trio of measures would take effect Jan. 1, 2028, leaving the Legislature one year to convert or close out state and local government obligations tied to property, sales, income or other types of taxes.

Other than updating effective dates, LB 331 adds limited new details to the consumption-tax regime envisioned in a 2023 Erdman rewrite of his enabling act (then LB 79) that supporters declined to circulate as a separate voter petition.

It would keep the same 7.5% statewide consumption tax rate proposed by Erdman, but it says counties, cities and villages could impose a local consumption tax of up to 1% “for the purpose of repaying bonds.”

LB 331 also would include nonprofit organizations among those excused from paying consumption taxes “on any taxable property or service purchased for a business purpose in a trade or business.”

Hardin’s version of Erdman’s enabling act retains its intention of establishing two unelected statewide boards to oversee local government budgets and consumption tax distributions. One would handle K-12 school budgets and the other all other local governments.

County commissioners or supervisors in each of five regional districts would hire a “regional representative” for each statewide board. That person would have the power to rewrite a local government’s approved budget if it didn’t conform to a manual to be written by its respective state board.

In other Unicameral action this week involving western Nebraska senators:

• North Platte Sen. Mike Jacobson, chairman of the Banking, Commerce and Insurance Committee, was also named chairman of the tax-writing Revenue Committee. Sumner Sen. Teresa Ibach, vice chairwoman of the Executive Board, was re-elected as Agriculture Committee vice chairwoman.

• First-year Sen. Tanya Storer of Whitman introduced the Parental Rights in Social Media Act (LB 383) on behalf of Gov. Jim Pillen. It would generally forbid children younger than 18 from having social media accounts without parental permission or proof that they’re 18 or older. Hardin and Ibach are among LB 383’s cosponsors.

• Fellow freshman Sen. Paul Strommen of Sidney introduced his first bill, LB 312, that would allow student loans for nurse anesthesia practice programs. He was elected vice chairman of the Legislature's special Planning Committee Friday afternoon.