NEW Good Life District Local Option Sales and Use Tax
LB 1317, passed in 2024, allows a city to impose a new local tax called the Good Life District (GLD) Local Option Sales and Use Tax, if they have a GLD located within the city’s boundaries. Effective July 1, 2025, a 2.75% GLD Local Option Sales and Use Tax rate will be imposed by the city of Omaha on taxable transaction within the GLD named “Avenue One”. For the GLD named “Nebraska Crossing Village District” which is located partially inside and partially outside of Gretna, this new 2.75% tax rate will be imposed by the city of Gretna, effective on July 1, 2025.
For transactions within the Avenue One GLD, located inside of Omaha, this new 2.75% GLD local option sales and use tax will be in addition to Omaha’s current 1.5% local sales and use tax rate. It’s important to understand that Omaha’s 1.5% local sales and use tax rate is imposed on all taxable transactions made within the city limits of Omaha; however, this 2.75% tax rate is ONLY imposed on transactions sourced within the GLD Avenue One boundaries.
For the GLD “Nebraska Crossing Village District”, this GLD has an area that is partially located within Gretna but also has a large area that is outside of Gretna’s boundaries. The portion of this GLD that is also located within Gretna’s boundaries is primarily the Nebraska Crossing Outlet Mall and a few businesses near the mall. This new 2.75% GLD local option sales and use tax is only imposed on taxable transactions sourced to the GLD Nebraska Crossing Village District that are also located within Gretna’s city boundaries. The Nebraska Crossing Village District GLD has a very large area that is outside of Gretna’s boundaries, so this area is not subject to the new GLD local option sales and use tax rate. Additionally, there is a large area of Gretna’s city boundaries that are NOT inside the Nebraska Crossing Village District GLD.
The boundaries of all GLDs are shown on Revenue’s website under the Sales Tax Rate Finder link. Click the GLD search tool and click the down arrow in the search box to select the maps for any of the four current GLDs. The boundaries of each GLD are shown in a purplish pink color, identifying both the boundaries of the GLD and the areas that are inside a city’s boundaries. Boundaries of a GLD that are outside the city boundaries are shown in light pink on this link.
The new GLD Local Option Sales and Use Tax will be reported on the Nebraska Schedule I of the Nebraska and Local Sales and Use Tax Return, Form 10 for retailers, or on the Nebraska and Local Business Use Tax Return, Form 2 for use tax filers. This tax will be listed as a separate GLD Local Option Sales and Use Tax and will be given a unique ‘city code number’ on our forms. This is because it needs to be separately identified from any other local sales and use tax receipts. This GLD local option tax is for a different purpose/usage than the city’s local sales and use taxes. This GLD Local Option Sales and Use Tax cannot be reduced by any refund claims or incentive claims prior to being remitted back to the city. Just a reminder that the state sales and use tax rate on taxable transactions that are made within a GLD and inside the city’s boundaries is 2.75% instead of 5.5%. All returns are being updated to show the changes in taxes and will be available on the website by May 1, 2025.
Local Sales and Use Tax Rate Changes
For the calendar quarter starting on July 1, 2025, the city of Wilber will decrease its local sales and use tax rate from 1.5% to 1%.
As a reminder of the upcoming calendar quarter beginning on April 1, 2025, the following changes will be made.
Rulo, Shickley, and Thedford will each start a new local sales and use tax rate of 1%.
Curtis and Eustis will each increase their current 1% rate to 1.5%.
Friend, Mullen, and Norfolk will each increase their rate from 1.5% to 2%.
No Lodging Tax Rate Changes
There are no changes in the lodging tax rates for the calendar quarters beginning on April 1, 2025 or July 1, 2025.
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