4/22/08-Gov. Dave Heineman signed a bill into law to set aside $15 million in cash reserves during the next three years. The money will be used to match about $75 million in federal funds that have been earmarked for specific projects in the state.
The new law, previously LB846, also changes the way a portion of the state’s fuel tax is computed. It ties the tax to the wholesale price of fuel.

2/19/08-The Revenue Committee voted 6-1 to approve a bill that would apply a general sales tax on motor fuels.
Sponsored by Sen. Deb Fischer of Valentine, LB846 would establish a tax of 5 percent per gallon on the price of motor fuels at the wholesale level – allowing the tax to increase with the price of fuel. The majority of revenues would be routed to the state’s Highway Trust Fund with one-third of the revenues earmarked for cities and counties.
A fiscal analysis on the bill shows the state would get an additional $42 million annually while cities and counties would receive $3.2 million.
It is expected that implementing the tax would increase the cost of fuel by 3 cents per gallon next year. It would rise another 4 cents in 2010.
For bill status, call (402) 471-2709. In Nebraska, call 1-800-742-7456.

1/17/08-A bill in the Legislature’s Revenue Committee would apply a general sales tax on motor fuel purchases.
Sponsored by Sen. Deb Fischer of Valentine, LB846 would establish a tax of 5 percent per gallon on the price of motor fuels at the wholesale level – allowing the tax to increase with the price of fuel. The majority of revenues would be routed to the state’s Highway Trust Fund with one-third of the revenues earmarked for cities and counties.
The state’s 10-cent-per-gallon tax, which is a fixed tax, would be reduced by 8 cents per gallon to 2 cents per gallon.
For bill status, call (402) 471-2709. In Nebraska, call 1-800-742-7456.