Section 316-9-003 - AUTHORIZATION FOR CITIES - IN EXCESS OF 11/2%003.01 Permissible Rates of Additional Tax, Restrictions on Proceeds Any city, except a metropolitan class city, may authorize and impose a local sales and use tax at a rate of 13/4% or 2% on retail sales sourced within the boundaries of the city, after approval by at least 70% of the governing body of the city and a majority of the votes cast in a city, county, or state general or primary election held within the city, but only if the sales and use tax is levied in accordance with the following conditions.
003.01A The city must be a party to an agreement executed under the Interlocal Cooperation Act or Joint Public Agency Act with a political subdivision within the city or the county in which the city is located, which creates a separate administrative entity and which relates to a public infrastructure project. This separate administrative entity cannot have been in existence for more than one year before the question of the increased local sales and use tax was submitted to the voters. 003.01A(1) If the city is a city of the primary class, the proceeds from the rate greater than 11/2% must be used for public infrastructure projects or voter approved public infrastructure projects related to an economic development program, except that up to 15% of the proceeds may be used for non-public infrastructure projects that are part of the agreement executed under the Interlocal Cooperation Act or Joint Public Agency Act.003.01A(2) For any other city, the proceeds from the rate greater than 11/2% must be used for public infrastructure projects or voter-approved public infrastructure projects related to an economic development program. 003.01B Any rate greater than 11/2% must terminate no later than ten years after its effective date except that: 003.01B(1) If the proceeds from the rate greater than 11/2% are pledged for payment of principal and interest on bonds issued for public infrastructure projects, the rate greater than 11/2% will terminate with the retirement of the bonds;003.01B(2) If proceeds equal to at least 1/8%, but less than 3/8%, of the rate greater than 11/2% are imposed for the purpose of funding an agreement executed under the Interlocal Cooperation Act or Joint Public Agency Act for public or nonpublic infrastructure projects, there is no termination date for 1/4% of the amount; or003.01B(3) If proceeds equal to at least 3/8% of the rate greater than 11/2% are imposed for the purpose of funding an agreement executed under the Interlocal Cooperation Act or Joint Public Agency Act for public or non-public infrastructure projects, there is no termination date for any of the increase.003.02 Vote at an Election Required The election required for approval of a local sales and use tax greater than 11/2% may be held as part of any city, county, or state general or primary election held within the city.
003.02A The question authorizing adoption of a local sales and use tax must include the following language: "Shall the governing body of the incorporated municipality impose a sales and use tax upon the same transactions within such municipality on which the State of Nebraska is authorized to impose a tax?" The question must also include, but is not limited to:003.02A(1) A list of reductions or limitations for any other taxes, if any;003.02A(2) A description of the infrastructure projects to be funded from the sales and use tax proceeds in excess of 11/2%;003.02A(3) The length of time the proceeds in excess of 11/2% will be imposed, or, if bonds will be issued for which the sales and use tax proceeds in excess of 11/2% will be pledged, a statement that the revenue in excess of 11/2% will be collected until repayment of the bonds; and003.02A(4) The percentage of the proceeds in excess of 11/2% that will be used for the purposes of an agreement executed under the Interlocal Cooperation Act or Joint Public Agency Act, the purpose of the agreement, and the name of all other political subdivisions which are parties to the agreement. 003.02B Notice of the question must be given by publication, as required by Neb. Rev. Stat. § 77-27, 142.03.003.02C If a majority of voters do not approve the imposition of a local sales and use tax, then the question cannot be submitted to the voters again for at least 23 months.003.03 Ordinance Required If the question is approved by a majority of the votes cast at the election, the city imposing the sales and use tax must adopt an ordinance in accordance with its municipal and statutory authority. If the ordinance states an operative date, the operative date must be the first day of a calendar quarter.
003.04 Notification to the Department Required When the governing body of a city adopts a local sales and use tax in excess of 11/2%:
003.04A The city must furnish the Department a certified copy of the ordinance imposing the tax, and a certified map of the city clearly showing its boundaries;003.04B The county election commissioner must furnish the Department a certified copy of the election results to the question submitted to the electors, and a certified statement that the question of imposing the tax for the city has not failed in the previous 23 months.003.04C For purposes of this regulation, the certified materials may be furnished by mail or by electronic means.003.05 When Operative The implementation of the sales and use tax cannot begin until the first day of the calendar quarter that is at least 120 days following receipt by the Department of the certified materials. The certified materials must be provided in the timelines provided in Reg-9-006, Cities and Counties - Timelines for Submitting Certified Materials to the Department.
003.06 Termination For ordinances containing a termination date, the termination date must be the first day of a calendar quarter. If the proceeds from the rate greater than 11/2% are pledged for payment of principal and interest on bonds issued for public infrastructure projects, the rate greater than 11/2% will terminate on the first day of a calendar quarter after the repayment of the bonds.
003.06A The city must furnish a certified statement to the Department at least 120 days and no more than 180 days prior to the termination date stating that the termination date in the ordinance is still valid.003.06B If the certified statement is not furnished within this time, the tax will remain in effect, and the Department will continue to collect the tax until the first day of the calendar quarter that is at least 120 days after receipt of the certified statement, notwithstanding the termination date stated in the ordinance.316 Neb. Admin. Code, ch. 9, § 003
Neb. Rev. Stat. §§ 77-27,142, 77-27, 142.01, 77-27, 142.02, 77-27, 142.03, 77-27, 142.04, 77- 27, 142.05, 77-27,143, and 77-27,144. November 17, 2013.