[{"_1":2,"_100":-5,"_101":-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",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":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,"_75":74},"mediaId",6277842,"mediaKeyId","2646127-bc1ece3770787097344ba9984a533c65","parentId",2646127,"title","Bill to let first-time buyers deduct contributions to state savings accounts advances in hearing; housing groups back plan","audioSeconds",3063,"startMs",3620000,"endMs",6683000,"viewUrl","/Search/View?dp=1&key=2646127-bc1ece3770787097344ba9984a533c65&start=3620&end=6683","thumbnailUrl","https://assets.pipeline.soar.com/2646127-bc1ece3770787097344ba9984a533c65/thumbnail_3620000.jpg","articleUrl","/articles/6277842/Nebraska/Bill-to-let-first-time-buyers-deduct-contributions-to-state-savings-accounts-advances-in-hearing-housing-groups-back-plan","mediaUrl","https://secure.pipeline.soar.com/6277842-e9eb548e3553ce4667adbaff28ef9384/orig.mp4?Expires=1771151439&Signature=WZJl0zdg2U~DJ0nxRLBPVScO0imnDY62xXKsW7owyCI1GjHvXS2tLKWhgOrI-rOFM0QJthwVYBFe0Euqr~es9Bos8qMksHr4kYxHNMh~UUtR~NY1W0TnHNZBmnZc0-Evwtpqh3C0Q3zSStIYlheY65xdyCj~AMw2EO8gDCNI6An-N1VEXPvEgLj9PRqomY7~jIAg12SEM5DYqeDRNWC~jKc~ODnj33z5TFlPe2go75-~Su8fe7jsrv6Cl3JCI~N9HBFeimpfbdJx4Jv1FOlk1dZXpdnL0ZsnffXWRrbBR7hqcX54d0yTI~Uee3KwoBYIB6~ywK7s3hRiupjy5OF2Tw__&Key-Pair-Id=KUT5TJCACFTXG","author","https://video.legislature.ne.gov/api/stream/Wll0V2ZlV1o=/master.m3u8","date","2025-03-14T00:00:00Z","article","Sen. John Kavanaugh introduced LB151 to create a state tax-preferenced savings account for first-time homebuyers. The proposed account would allow contributors to deduct up to $2,000 annually (or $4,000 for married filers) from taxable income, with lifetime contribution limits (proposed at $20,000 and $40,000 for married filers in the draft) and qualified-distribution rules similar to other tax-advantaged accounts.

The intent: help first-time buyers reach the upfront costs of home purchase, such as down payments, earnest money, prepaid property taxes and homeowners insurance at closing, and required reserves. Kavanaugh said the accounts would operate similarly to other targeted savings vehicles, pointing to Iowa's experience with comparable programs.

Supporters from housing, mortgage-lending and building trades offered testimony. The Nebraska Housing Developers Association said the account \"provides a small but important boost to saving for first-time homebuyers\" and would complement development incentives and down-payment assistance programs. Local banks and home-builder groups told the committee the accounts could help buyers combine private savings with existing down-payment assistance and nonprofit programs to close deals.

What the bill would do

LB151 would create a state tax-deduction for contributions to a qualified first-time homebuyer savings account and allow tax-preferred growth if used for qualifying home purchase expenses (down payment, closing costs, earnest money, and associated costs). The draft includes contribution and lifetime caps and a holding period before funds can be used for a purchase.

Committee questions and implementation issues

Members asked about design specifics — whether contributions by parents or others could qualify, whether accounts should be available to nonresidents, and whether low- and middle-income caps or matching incentives might be added. Sponsor said the bill could be refined to address transfer rules for parent contributions and to add matching incentives or eligibility criteria if the committee desired.

No vote was taken; sponsors and proponents asked the committee to advance the concept for additional drafting and to coordinate with the Department of Revenue on administrative mechanics and fiscal effects.

Ending

Housing and lending stakeholders recommended the committee move the idea forward, characterizing LB151 as a modest, low-cost incentive to help first-time buyers save for closing costs and reduce the need for high mortgage-insurance charges on low-down-payment loans. Committee staff will be asked to work with the sponsor and agencies on final definitions and the fiscal impact of the tax deductions.

","mediaType","Video","parentTitle","Revenue Committee - Room 1524 3/14/2025, 2:30:00 AM","oneSentenceSummary","Sen. John Kavanaugh told the Revenue Committee LB151 would create a state-tax-deductible savings account for first-time homebuyers to use for down payments and closing costs, with annual and lifetime contribution caps and qualified-distribution rules.","taxTitle","2025 Legislature NE, Nebraska","taxId",77675,"location","Nebraska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6277852,"Senator Brandt proposes broad sales-tax expansion, higher cigarette and alcohol levies; businesses and nonprofits warn of costs",9,192000,183000,"/Search/View?dp=1&key=2646127-bc1ece3770787097344ba9984a533c65&start=192&end=183","https://assets.pipeline.soar.com/2646127-bc1ece3770787097344ba9984a533c65/thumbnail_192000.jpg","/articles/6277852/Nebraska/Senator-Brandt-proposes-broad-sales-tax-expansion-higher-cigarette-and-alcohol-levies-businesses-and-nonprofits-warn-of-costs","https://secure.pipeline.soar.com/6277852-dd2c24c2968d9417f874083156206725/orig.mp4?Expires=1771151439&Signature=klfSevEU3ee8bWVWjsG-ZnGjE7oStJlKI16UBLqr17hONzH03gBMMWl5jrB44K-BN6TbUW9pbdXFf5kxmnneMK6WNlSXXcepkWQay-pW-9YyF-F5CESW88MVYsku9OyR~lVBAgCM3fh003qC3k0qASN4rh4wjqVxHE2sHGMaToQh0YqAzcoq3HvqNrUV65-o6YJjvZr3GXZHGM~Xz00Crf4MmRi56hlLgleRTouvsbaPbKahhhNFpztU8aFV~I9YZ~Blr0O3IAMe5MwNGyzOB7bOqFF-sFjxu5Zutg~1Esgk9HBq3pnS8febw1vZEIOenAfROIyplhH82f77p8gFJw__&Key-Pair-Id=KUT5TJCACFTXG","Sen. Tom Brandt introduced a two-bill package to expand Nebraska's sales-tax base and increase excise taxes on cigarettes and alcohol, saying the measures would raise revenue to help cover the state's budget shortfall and to fund property-tax relief.

Brandt told the Revenue Committee that LB169 would \"impose a sales tax on numerous items and services that are currently exempt,\" and that a white-copy amendment (AM589) narrows the list after industry feedback. He described LB170 as a separate measure that would add a 72¢ increase to the cigarette excise (from 64¢ to $1.36 per pack) and raise certain alcohol excise rates (including a proposed $4.50 per gallon of pure alcohol for large producers), subject to Commerce Clause review, and estimated the pair could generate roughly $120 million in new revenue in a full year.

Why it matters: Senators and advocates framed the bills as one way to stabilize the state's finances without immediate cuts to services, and to create a revenue stream that could be dedicated to property-tax relief. Opponents warned the proposals could be regressive, difficult and costly for small businesses to implement, could tax business inputs (risking \"pyramiding\" of tax on both inputs and outputs), and could produce unintended consequences such as driving customers to out-of-state sellers and expanding an underground market for unregulated services.

What supporters said

Bruce Bureker of Nebraska Farm Bureau and the Ag Leaders Working Group said groups who pay sales, income and property taxes support broadening the base to rebalance Nebraska's tax structure. Mary Bagalgalis, representing Philip Morris International, supported the tobacco provisions that would recognize heated tobacco products and establish a different excise approach for them.

What opponents said

A wide range of businesses and organizations testified against parts of the package. Small-business owners and trade groups argued that taxing services such as tattooing, body art, professional instruction, interior design, golf lessons, and certain personal-care services would add administrative burdens and be regressive. Licensed cosmetologists and estheticians warned that carving out only some salon services while taxing others could force pricing and bookkeeping changes for small salons. Movie-theater owners said language in the bill could impose a tax on film rental fees — a business input that would amount to \"double taxation\" because theaters already collect sales tax on ticketed sales and concessions. Zoo and aquarium representatives said removing exemptions on admissions would undermine access and tourism that already produces state revenue.

Regulatory and constitutional concerns

Hobert Rupp, executive director of the Nebraska Liquor Commission, told the committee that AM603's proposed two-tiered alcohol excise (treating sellers differently based on production volume) raised Commerce Clause concerns and could invite litigation; he recommended caution before adopting a differential tax structure. Several trade groups asked that marketing and telemarketing services be left out because taxing marketing could reduce local advertising revenue and harm local broadcasters.

Revenue estimates and specifics

Brandt said the amended LB169 lists roughly 21 categories (including pet grooming, dry cleaning, nonmedical massage, nonmedical skin care, tattooing, interior design and decorating, sightseeing by ground vehicle, telemarketing, limousine/luxury vehicle services, and admissions to zoos and museums) and that Legislative Research estimated the package would generate roughly $37 million from the services list. He said LB170's pop-and-candy changes would raise about $40 million and the cigarette and alcohol changes about $44.5 million combined in a full year, subject to amendment and constitutional limits.

Questions and next steps

Committee members asked for clarification on several items: whether dry-cleaning revenues are business inputs or consumer purchases, how the bills would treat medical services (Brandt pointed to AM589 language to carve out medically necessary services), whether film rentals would be taxed (several theater owners said they understood the bill could be read that way and urged clarification), and how the cigarette increase's proceeds would be distributed between special funds and the general fund.

No formal votes were taken during the hearing. Committee members and bill sponsors signaled further follow-up with stakeholders and agencies (Department of Revenue, Liquor Commission, and Legislative Research) to tighten definitions, resolve carve-outs for medical services and 501(c)(3) exemptions, and to review constitutional risk on bifurcated excise proposals.

Ending

The joint hearing produced detailed, sometimes conflicting testimony about who would be affected and how. Supporters say the measures are a pragmatic way to broaden Nebraska's tax base to support property-tax relief; opponents say they would create administrative burdens, tax business inputs or essential services, and disproportionately affect small businesses and low- and middle-income consumers. Committee members asked for more clarifications and legal analysis before advancing either bill.

","Sen. Tom Brandt introduced a two-bill package to broaden Nebraska's sales-tax base and raise cigarette and alcohol levies, saying the measures would help cover the state's budget shortfall and support property-tax relief.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6277847,"Senator Brandt urges pause to final income-tax cuts to shore up state budget; supporters say pause averts service cuts",2416,2280000,4696000,"/Search/View?dp=1&key=2646127-bc1ece3770787097344ba9984a533c65&start=2280&end=4696","https://assets.pipeline.soar.com/2646127-bc1ece3770787097344ba9984a533c65/thumbnail_2280000.jpg","/articles/6277847/Nebraska/Senator-Brandt-urges-pause-to-final-income-tax-cuts-to-shore-up-state-budget-supporters-say-pause-averts-service-cuts","https://secure.pipeline.soar.com/6277847-a2891dd27ba2f0a1077fab3ae2a07837/orig.mp4?Expires=1771151439&Signature=ksK0J2klcs7cbogsEFMqFeflM41v1beKNimcMyFyqxJY1c05Qs5CiqU1MVfLRuxc6R5cbwUBwYJqU4mKfUFDtbr9XqTQakEEfcvQF-n2B2DE-DvpFbm-l19xUFdQx9LKZBnbRiLiXl5Osvr0llgwW53ONtgvXUtonnDB2OfSn0BSwqj3a3g5hM65GV72OHB2E4Gm~nKnJciG37cDMrVLYd99T3egnu38gleOEn9yItMDTFyjp7dH~f0sbPRJHhnXyUGpYeFBHxhBckL1VJmIH9uh-y5ElNcze4OjZ05Gph-skXOU1O9NMdAG11vwdIzzHMt0QsnuS14YT5C~r~jy9g__&Key-Pair-Id=KUT5TJCACFTXG","Sen. Tom Brandt proposed a pause to the scheduled reductions in Nebraska income-tax rates with LB171, saying the change would stabilize state finances while preserving the possibility of future cuts when revenues allow.

In his opening, Brandt said LB171 is \"not a tax increase\" but a pause — keeping the top corporate and personal income-tax rate at 4.99% rather than allowing it to fall to 3.99% as scheduled under previously enacted legislation. He said a pause would produce needed revenue to address the state's budget shortfall and to keep commitments to property-tax relief programs.

Support for a measured pause

OpenSky Policy Institute's director, Rebecca Firestone, testified in favor, saying the state's structural budget gaps and the planned allocation of billions in state funds for property-tax relief make it prudent to protect revenue in the near term. Farm and local leaders testifying in support said the approach would provide fiscal space to hold other commitments.

Opposition and concerns

Business groups objected. Brian Sloan of the Nebraska Chamber of Commerce said the 2023 tax reforms were transformational and that pausing or rescinding planned rate reductions would reduce Nebraska's competitiveness for jobs and investment. The Nebraska Chamber argued continued reforms are essential for business growth; NFIB also opposed the bill.

Committee questions and alternatives

Committee members asked about decoupling corporate and personal rates (so one stays and the other continues its scheduled reduction), triggers for resuming cuts, and whether any pause should be tied to budget reserves or objective fiscal triggers. Brandt said he would be open to trigger mechanisms that restore reductions when revenues and reserves reach sustainable levels, and to discussing targeted designs, such as holding the corporate rate while allowing further individual-rate declines.

No vote was taken during the hearing. Several members said they would want additional fiscal modeling of decoupled alternatives and trigger designs before deciding whether to move the bill.

Ending

LB171 frames the pause as a short-term fiscal safeguard to protect the state's spending commitments while leaving open future rate reductions if revenues improve. Business groups cautioned the committee that pausing scheduled reductions could harm competitiveness and economic growth, and asked for more analysis before any change.

","Sen. Tom Brandt told the Revenue Committee LB171 would hold next scheduled income-tax reductions at 4.99% rather than allowing a drop to 3.99%, preserving revenue to cover a projected budget shortfall and to fund property-tax relief. Supporters described the pause as pragmatic; chambers and business groups opposed reversing planned rate declines,","actionData","errors"]

Article not found

Bill to let first-time buyers deduct contributions to state savings accounts advances in hearing; housing groups back plan

Senator Brandt proposes broad sales-tax expansion, higher cigarette and alcohol levies; businesses and nonprofits warn of costs

Senator Brandt urges pause to final income-tax cuts to shore up state budget; supporters say pause averts service cuts