Nebraska has an online sales tax. In 2018, a Supreme Court ruling granted states the authority to collect sales tax from remote sellers, even without a physical presence in the state. This ruling redefined the threshold for economic nexus, allowing states to enforce tax collection based on a seller’s economic activity within the state. As a result, each state now holds autonomy in determining its sales tax laws. Online sales tax refers to the levy imposed by state governments on sales made over the internet. With the surge in online retail, policymakers addressed taxation in the digital sphere.
The ruling has proven to be a boon for states. The U.S. Government Accountability Office reports that states collected at least $23 billion from online sellers in 2022, triple the 2019 amount. That’s nearly eight times pre-ruling collections. States likely aggressively protect this revenue through increased enforcement and audits.
Nebraska taxes are divided into property, income, and sales taxes. In 2024, Nebraska expects $5.3 billion from property taxes, $3.6 billion from income taxes, and $2.5 billion from sales taxes. Gov. Pillen wants to reduce high property taxes by 40%, but would need to increase another tax, most likely sales tax, to offset the loss. Though he proposed a sales tax rate increase to 7.5%, he later backed away from specifics while reaffirming the property tax reduction goal. He admitted not yet finding an answer, despite working to unite legislators around a solution.