NEBRASKA – Internet Sales Tax Bill Levels Playing Field

Back in Lincoln, this week we had the final debate on LB 704. This bill will allow the State of Nebraska to collect sales tax from online internet sales. This really isn’t a new tax because the obligation in the law already exists to pay what is called “use tax” on these purchases. Many people ignore this tax obligation, and without an enforcement mechanism in place much of it goes uncollected. The bill has an “emergency clause” which means it will be enacted into law the moment the Governor signs it. Ordinarily, bills signed by the Governor become law 90 days after the end of the legislative session. Instead of a simple majority (25), “E” bills require a 2/3 vote (33) to pass. This bill passed 43 yes, 0 no, 2 present not voting, 2 absent.