The Nebraska Department of Revenue has published important information regarding changes in local sales and use tax rates that will come into effect on July 1, 2024, and October 1, 2024. These changes are significant for businesses and individuals operating in the affected areas. The calendar quarter beginning on July 1, 2024, will see no local rate changes. However, for the quarter beginning on October 1, 2024, several localities will impose new or increased rates. The changes also include modifications to the state sales and use tax rate for Good Life District (GLD) transactions, as per recent legislation. These changes have implications for transactions within and outside the boundaries of certain areas. It is important for our clients to stay informed about these changes to ensure compliance and proper tax planning.

Notification to Permitholders of Changes in Local Sales and Use Tax Rates Effective July 1, 2024

Updated 03/05/2024

For the calendar quarter beginning on July 1, 2024, there are no local rate changes.

As a reminder for the calendar quarter of April 1, 2024, the city of Crofton increased its local sales and use tax rate from 1% to 1.5%.

The Good Life District(GLD) state rate changes are effective on April 1, 2024. The Sales Tax Rate Finder has a new filter that shows the map location of the two approved GLDs, which are GL801-Avenue One and GL802-Nebraska Crossing Village District. The GLD state rate of 2.75% will not show on the Sales Tax Rate finder until April 1, 2024. The Rates and Boundaries File is already posted to our website and this file does show the GL801- Avenue One and GL802- Nebraska Crossing Village District rates.

There are no changes for lodging tax for the quarter beginning on July 1, 2024.

Notification to Permitholders of Changes in Local Sales and Use Tax Rates Effective October 1, 2024

For the calendar quarter beginning on October 1, 2024, the local sales and use tax rate changes will be:

• Adams will impose a new 1% rate;
• Grafton and Kenesaw will each impose a new 1.5% rate;
• Lyons will increase its rate from 1.5% to 2%; and
• Mullen and Nelson will each increase their rate from 1% to 1.5%.

There are no changes in county lodging tax rates for October 1, 2024.

As a reminder for the upcoming calendar quarter of July 1, 2024, there are no local sales and use tax rate changes or county lodging tax rate changes.

Per recent legislation (LB 1317, Section 81) changes were made to the state sales and use tax rate for Good Life District (GLD) transactions. Effective on July 1, 2024 the state sales and use tax rate is 2.75% only on those transactions sourced to a GLD area that are also within the city boundaries. Transactions made within a GLD but that are OUTSIDE the boundaries of a city have a state rate of 5.5%. This currently only affects the GLD Nebraska Crossing Village District (GLD 802-802) which is located both outside and inside of Gretna’s city boundaries. The GLD Avenue One (GLD 801-801) is located entirely within Omaha, so this GLD has a state rate of 2.75%. Changes are being made to our sales and use tax returns for this change. The Sales Tax Rate Finder on our website will show these different rates on and after July 1, 2024.

HBE Is Here To Help

To navigate these changes effectively and ensure compliance, HBE encourages our clients to reach out to their trusted HBE advisor with any questions or concerns they may have. Our team is here to provide guidance, support, and expertise to assist you in understanding and adapting to these regulatory updates for proper tax planning and compliance.