New Nebraska GLD Sales Tax: What Businesses Need to Know and How to Report It

Beginning July 1, 2025, Nebraska businesses operating within certain specially designated zones—called Good Life Districts (GLDs)—will need to start collecting and reporting a new 2.75% local option sales and use tax. This new tax is in addition to existing local and state sales taxes, and applies only within the boundaries of these GLDs.

Here's what Nebraska businesses need to know to stay compliant:

What Is the GLD Tax?

The Good Life District Local Option Sales and Use Tax was created under LB 1317 (2024). It allows cities with a designated GLD to charge an additional 2.75% sales tax on taxable goods and services within the district.

Where Is This New Tax Being Applied?

As of July 1, 2025, two cities will begin collecting the new GLD tax:

1. Omaha – Avenue One District

• The 2.75% GLD tax applies only within the Avenue One district.

• This is in addition to Omaha’s current 1.5% local tax, bringing the total local tax rate to 4.25% in that zone.

2. Gretna – Nebraska Crossing Village District

• The tax only applies to the portion of the Nebraska Crossing district within Gretna city limits, including:

  • Nebraska Crossing Outlet Mall

  • Nearby businesses inside city limits

• Businesses outside Gretna’s boundaries are not subject to this new tax.

Use the Nebraska Sales Tax Rate Finder to determine if your business location falls within one of these GLDs.

How to Report the GLD Tax

If your business operates within a GLD, you must report this tax separately from your regular city or state sales tax.

For Retailers:

• Use Form 10 – Nebraska and Local Sales and Use Tax Return

• Report GLD tax on Schedule I

• Each GLD will have a unique city code on the form

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For Use Tax Filers:

• Use Form 2 – Nebraska and Local Business Use Tax Return

Note: The GLD tax cannot be reduced by any refund claims or economic incentive credits before remitting to the Nebraska Department of Revenue.

Important Changes:

• The state sales tax rate in a GLD inside city limits drops from 5.5% to 2.75%.

• Updated tax forms will be available on the Department of Revenue website by May 1, 2025.

Don’t Forget Other Local Rate Changes

For the quarter beginning April 1, 2025:

• New 1% tax: Rulo, Shickley, Thedford

• Increase to 1.5%: Curtis, Eustis

• Increase to 2%: Friend, Mullen, Norfolk

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For the quarter starting July 1, 2025:

• Wilber will reduce its local rate from 1.5% to 1%

Next Steps for Businesses

1. Check if your business is located in a GLD using the Sales Tax Rate Finder.

2. Update your point-of-sale systems to charge the correct tax rate starting July 1, 2025.

3. Use the updated tax forms (Form 10 or Form 2) when filing after July 1, 2025.

4. Train your staff or bookkeeper to recognize and report the GLD tax separately.

   
   

If you need help reviewing your tax setup or ensuring compliance with the new GLD reporting rules, we’re here to help. Contact us at LedgerLine Accounting to schedule a consultation.