€
€
One Hundred Eighth Legislature - First Special Session - 2024
Introducer€s Statement of Intent
LB16
€
Chairperson: Senator Lou Ann Linehan
Committee: Revenue
Date of Hearing: July 31, 2024
€
The following constitutes the reasons for this bill and the purposes which are sought to be
accomplished thereby:
LB16 implements the EPIC Option Consumption Tax. The EPIC Option Consumption
Tax is an acronym where the word EPIC stands for the Elimination of Property, Income
and Corporate taxes. Together with the aid of LR4CA and LR5CA, the EPIC Option
Consumption Tax would repeal all state taxes except consumption taxes and excise taxes.
LB 16 establishes the taxpayers Bill of Rights.
The EPIC Option Consumption Tax imposes a tax on the sale of new goods and services.
Used goods are never taxed. There is no tax on business-to-business transactions or
investments. No good or service may be taxed in more than one way. If a good or service is
subject to an excise tax, it cannot be subjected to a consumption tax, and vice versa.
LB 16 established a starting consumption tax rate of 7.5% beginning January 1, 2026;
however, the Legislature would retain sole authority for setting the rate.
The EPIC Option Consumption Tax retains local control over the budgeting process for
Counties. Counties submit their budgets to five regional representatives who comprise the
Budget Equalization and Review Board. Funding for counties comes from the state. Funding
for counties comes out of three funds: 1) The County Trust fund covers the budgets of
all 93 counties, 2) the County Stabilization Fund provides additional revenues for public
service needs, hospitals, and roads, 3) the County Rainy Day Fund provides revenues for
emergencies and blighted properties.
Public School Districts retain local control over the budgeting process. School districts
submit their budgets to five regional representative who comprise the School Equalization
and Review Board. Funding for public school districts comes from the state. Funding for
schools comes out three funds: 1) The School Trust Fund covers the budgets of all public
- 1 - school districts, 2) The Education Stabilization Fund provides additional revenues for all
public school districts by utilizing a new TEEOSA-like formula with scores that are simple
and easy to calculate, 3) The Education Facilities and Growth Fund provides additional
revenues to public school districts for the construction of new facilities and the repair of
existing facilities plus growth and the need for new programs.€
The Education Facilities and Growth Fund utilizes three new boards and/or committees:€ 1)
The Facilities Assessment Committee would assess the facilities needs of all public school
districts, 2) The School Programs and Growth Committee would assess the growth
and program needs of all public school districts, 3) The School Facilities and Growth
Commission would establish the policies for measuring facilities needs and growth needs
of the public school districts and submit a report of such needs to the School Equalization and
Review Board.
€
€
Principal Introducer:________________________________
Senator Steve Erdman
- 2 -