Nebraska

Overview: Nebraska lawmakers are considering LB 1025, legislation that will tax social media platforms based on the data they collect. In practice, this will effectively tax the data-powered social media ads that Nebraska small businesses rely on to connect with customers, compete, and grow.

The Problem: A tax on social media data collection — like all taxes — will raise costs for consumers. In this case, the consumers are thousands of small Nebraska businesses who purchase data-powered social media ads. 

The Impact: By increasing advertising costs, LB 1025 will force Nebraska small businesses to either reduce their marketing efforts and scale back growth and hiring, or raise prices for customers. Both would be bad for Nebraska’s small businesses, workforce, and economy.

Small Business Advocacy: Lawmakers need to hear directly from small-business leaders to understand the bill’s real-world consequences. Take a moment to add your name to this letter urging Nebraska lawmakers to oppose LB 1025 ahead of a hearing on February 18. 

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Want to get in touch? Email us at info@connectedcouncil.org.

Overview: In 2024, Nebraska lawmakers proposed a digital ads tax. While it did not pass, the issue is likely to resurface in the 2026 legislative session.

Digital advertising gives Nebraska’s small businesses an affordable, effective way to reach new customers. These tools help level the playing field, allowing local businesses to compete with larger companies while maintaining strong relationships with their customers.

That’s why it’s critical for lawmakers to support legislation that protects — rather than restricts — small businesses’ access to digital advertising.