The City of Lincoln today reminded residents that Lincoln’s sales and use tax rate will increase from 1.5 percent to 1.75 percent beginning October 1. The current state sales and use tax rate is 5.5 percent, so the total sales and use tax rate will increase from 7 percent to 7.25 percent.
More information for consumers, retailers and others who hold sales and use tax permits is available at lincoln.ne.gov (keyword: sales tax). The website includes a link to sales and use tax information from the Nebraska Department of Revenue, which offers a very helpful subscription service for email notifications about sales and use tax and other topics
Lincoln voters approved the 1/4-cent increase in April to support two important public safety projects: replacement of the City’s emergency 911 radio system and the construction and/or relocation of four fire stations. One will be a joint police and fire station. The sales and use tax rate increase will be in effect for three years, and any extension of the increase would need to be approved by voters.