Bill Introduction Deadline Passes; Committee Hearings Commence

Date: January 26, 2019

Nebraska lawmakers to chew over 739 bills, seven constitutional amendments

State Director Bob Hallstrom reports from Lincoln on the legislative week ending January 25

The time for new bill introductions has expired with a total of 739 bills and seven proposed constitutional amendments to be addressed by the Legislature this session. Committee hearings have commenced and the initial floor debate of the session was conducted January 25, with the initial bills advancing from committee ready for consideration.

NFIB to Fight Income Tax Hike Proposal

NFIB submitted testimony in opposition to Legislative Bill 50, which was heard before the Revenue Committee, January 23.

Introduced by Sen. Tony Vargas (Omaha), LB 50 would, effective for taxable years beginning on or after January 1, 2019, establish an additional individual income tax rate bracket of 7.84 percent for incomes over $100,000 for single individuals and incomes over $200,000 for married filing jointly. The measure would also impose an additional tax of 1 percent on that portion of the taxpayers Nebraska taxable income in excess of $1 million and an additional tax of two percent on that portion of the taxpayers Nebraska taxable income in excess of $2 million.

Upcoming Hearing

The Business and Labor Committee has scheduled a hearing January 28, when Legislative Bill 306 will be heard. Introduced by Sen. Sue Crawford (Bellevue) the legislation would treat an individual leaving his or her employment to care for a family member with a serious health condition as having good cause for voluntarily leaving employment under the Unemployment Insurance Act. (NFIB Position – Oppose)

Workers’ Compensation

Legislative Bill 487 – Workers’ Compensation – Evidenced-Based Drug Formulary: Sen. Andrew La Grone (Gretna) has introduced legislation that would establish an evidence-based drug formulary consisting of Schedule II, III, IV and V prescription drugs in connection with workers’ compensation claims with a date of injury on or after January 1, 2020. (NFIB Position – Support)

Legislative Bill 526 – Workers’ Compensation Act – Temporary Disability: Introduced by Sen. Mike McDonnell (Omaha), LB 526 would provide that temporary disability shall continue until the later of a) any permanent disability, as measured by permanent impairment for a scheduled member injury, has been determined or, in the event of a claim payable under loss of earning capacity, until a loss of earning capacity evaluation has been issued or b) 30 days after the employee has been given notice of termination of temporary disability benefits. Upon termination of temporary disability benefits, the employer would be required to provide copies of all evidence relied upon in making the determination to cease benefit payments and if evidence from outside of the treating physician has been relied upon, the employee shall be entitled to seek a medical finding by an independent medical examiner to be paid for by the employer, with such independent medical examiner to be chosen by the employee. (NFIB Position – Oppose)

Taxes

Legislative Bill 507 – Tax Shifts for Property Tax Relief: Introduced by Sen. Tom Briese (Albion), LB 507 would expand the sales tax on services to include, among many other services, the following:

  • labor for repair or maintenance services performed on motor vehicles
  • pet–related services
  • cleaning of tangible personal property
  • storage and moving services
  • investment advice
  • personal care services including hair care, nail services, spa services, and tattoo services
  • limousine, taxi, ridesharing and other transportation services
  • lawncare, gardening, and landscaping services
  • parking services
  • legal services other than services performed for a for-profit business enterprise
  • accounting and tax preparation services, other than for a for-profit business enterprise
  • labor of a contractor for any major addition, remodeling, restoration, repair, or renovation of an owner-occupied residential housing
  • interior design services.

The bill would also eliminate several sales tax exemptions and impose a tax on soft drinks, candy, and bottled water. Net revenues resulting from the taxes imposed by the bill would be credited to the Property Tax Credit Cash Fund. (NFIB Position – Oppose)

Legislative Bill 508 – Tax Shifts for Property Tax Relief: LB 508, also introduced by Senator Briese, would impose the sales tax on certain services, eliminate sales tax exemptions and use the increased revenue for property tax relief. Among the services for which sales tax would be imposed, include the following:

  • investment advice
  • hair care services
  • maintenance, painting, and repair services for single-family housing
  • limousine, taxi, and other transportation services
  • plumbing services
  • lawn care, gardening, and landscaping services.

The legislation would also impose a tax on soft drinks and candy. (NFIB Position – Oppose)

Legislative Bill 614 – Tax Shifts for Property Tax Relief: Senator Crawford has also sponsored LB 614 which would:

  • increase the alcohol tax and cigarette tax
  • impose sales and use taxes on candy, soft drinks and bottled water
  • increase the state’s earned income tax credit
  • eliminate exemptions provided under the Personal Property Tax Relief Act
  • change provisions relating to certain extraordinary dividends and capital gains, certain S Corporation and limited liability company income and itemized deductions
  • provide for a property tax relief allowance and increase allocated income tax funds under the school aid formula. (NFIB Position – Oppose)

Legislative Bill 661 – Income Tax Increases for Property Tax Relief: LB 661, introduced by Sen. Curt Friesen (Henderson), would eliminate the existing inflation adjustment for income tax brackets, change provisions relating to personal exemptions and provide for additional income tax liability. Net revenues derived from the income tax increases would be credited to the Property Tax Credit Cash Fund for property tax relief. (NFIB Position – Oppose)

Punitive Damage Award

Legislative Bill 491 – Punitive Damages: Sen. Justin Wayne (Omaha) has introduced a bill that would authorize a court to award punitive damages when the defendant has displayed actual intent to cause harm or causes an injury through action taken in reckless disregard for the lives and safety of others. The bill would authorize the award of punitive damages to punish the defendant and provide retribution, to act as a deterrent to the defendant and others inclined to behave in a similar manner, and to demonstrate the court’s disapproval of such conduct. Any award of punitive damages would be remitted to the State Treasurer for distribution to the common schools. (NFIB Position – Oppose)

Previous State Capitol Reports

January 18—Will Bill Introductions Set a Record?

January 15—Comment on Today’s State-of-the-State Address

January 11—Nebraska Legislature Convenes; Committee Chairmen Elected

Speaker Jim Scheer and Sen. Sue Crawford

[Photo courtesy of Unicameral Update, the Nebraska Legislature’s official news source since 1977]

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy