PREPARED BY: John Wiemer
LB 479 DATE PREPARED: February 27, 2025
PHONE: 402-471-0051
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS ($80,914,000) ($125,154,000)
CASH FUNDS See Below $68,777,000 See Below $106,381,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See Below ($12,137,000) See Below ($18,773,000)
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 479 amends section 77-27,132 to provide that for transactions occurring on or after October 1, 2025 and before July 1, 2042, of the
proceeds of the sales and use taxes derived from transactions other than those listed in subdivisions (2)(a), (b), (e) of the section from
a sales tax rate of 0.5%, a change from 0.25%, cr edit monthly 85% to the Highway Trust Fund and 15% to the Highway Allocation
Fund.
The Department of Revenue (DOR) estimates the following impact to revenues as a result of the bill:
There is estimated to be a revenue increase to the Highway Trust Fund and the Highway Allocation Fund, w hich is distributed to cities
and counties.
The DOR estimates no costs to it as a result of the bill.
The Nebraska Department of Transportation (NDOT) estimates Cash Fund increases that are from the DOR. NDOT notes the increase
in revenues would result in more funding available for NDOT highway construction projects, such as for expansion of the expressway
system, and to the Highway Allocation Fund for cities and counties.
ADMINISTRATIVE SERVICES STATE BUDGET D IVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 479 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Ryan Yang DATE: 2/26/2025 PHONE: (402) 471 -4178
COMMENTS: Concur with the Department of Revenue assessment of fiscal impact from LB 479 and no fiscal impact to the
agency.
LB 0479 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 02/26/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $(80,914,000) $(125,154,000) $(129,020,000)
Cash Funds $68,777,000 $106,381,000 $109,667,000
Federal Funds
Other Funds $12,137,000 $18,773,000 $19,353,000
Total Funds $ 0 $ 0 $ 0
Major Objects of Expenditure
25-26 26-27 27-28 25-26 26-27 27-28
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
Benefits………………………………………………………………………………………………………….
Operating Costs………………………………………………………………………………………………….
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total…………………………………………………………………………………………………………….
Beginning October 1, 2025, LB 479 changes the Revenue Distribution Fund credit for certain sales of one-quarter
of one percent to one-half of one percent from the sales tax rate to the Highway Trust Fund and Highway
Allocation Fund.
The estimated fiscal impact of LB 479 to the General Fund revenues, Highway Trust Fund, and Highway
Allocation Fund are as follows:
General Fund
Revenues
Highway Trust
Fund
Highway
Allocation Fund
FY25-26 $ (80,914,000) $ 68,777,000 $ 12,137,000
FY26-27 $ (125,154,000) $ 106,381,000 $ 18,773,000
FY27-28 $ (129,020,000) $ 109,667,000 $ 19,353,000
FY28-29 $ (133,080,000) $ 113,118,000 $ 19,962,000
It is estimated that there will be no cost for the Department of Revenue to implement LB 479. Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 479 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Department of Transportation
Prepared by:
(3) Jenessa Boynton Date Prepared:
(4)
2/24/25 Phone:
(5)
402-479-4691
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
See below $68,777,000 See below $106,381,000
FEDERAL FUNDS
OTHER FUNDS
$12,137,000 $18,773,000
TOTAL FUNDS
See below $80,914,000 See below $125,154,000
Explanation of Estimate:
As proposed, LB479 would change the distr ibution of sales and use taxes proceeds for certain transactions
from one- quarter of one percent to one-half of one percent beginning October 1, 2025. Credit of the one- half
of one percent will continue to be applied at eight five percent to the Nebraska Department of Transportation
(NDOT) through the Highway Trust Fund and fifteen percent to cities and counties through the Highway
Allocation Fund.
Revenue to Build Nebraska Act Funds
FY2025-26 FY2026-27 FY2027-28 FY2028-29
Highway Trust Fund (NDOT) $68,777,000 $106,381,000 $109,667,000 $113,118,000
Highway Allocation Fund (cities and counties) $12,137,000 $18,773,000 $19,353,000 $19,962,000
This estimate of increased tax revenue is from the Nebraska Department of Revenue. The increase in
revenue in Build Nebraska Act Funds will result in more funding available for NDOT highway construction
projects, such as for expansion of the expressway system, and to the Highway Allocation Fund for cities and
counties.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITU RE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....