(1) Except as otherwise provided in subsection (5) of this section, a tax is hereby imposed and levied, in the amount and in accordance with this section, upon the net operating revenue of all cash devices operating within the State of Nebraska for profit or gain either directly or indirectly received. The tax shall be paid in the amount and manner specified in this section.

(2) Except as otherwise provided in subsection (5) of this section, beginning on and after July 1, 2025, any distributor of a cash device, and any operator of a cash device if the operator is not subject to a revenue-sharing or other agreement with a distributor who is paying the tax, shall pay a tax for each cash device in operation each calendar quarter during the taxable year. The tax shall be collected by the department and due and payable on January 1, April 1, July 1, and October 1 of each year on each cash device in operation during the preceding calendar quarter. For each cash device put into operation on a date subsequent to a quarterly due date that has not been included in computing the tax imposed and levied by the Mechanical Amusement Device Tax Act, the tax shall be due and payable on the immediately succeeding quarterly due date.

(3) The amount of the tax imposed and levied under this section shall be five percent of the net operating revenue for each cash device. The quarterly tax shall be submitted on a form prescribed by the Tax Commissioner documenting the total gross and net operating revenue for that quarter.

(4) The Tax Commissioner shall remit the taxes collected pursuant to this section to the State Treasurer for credit as follows:

(a) Twenty percent to the Charitable Gaming Operations Fund for enforcement of the act and maintenance of the central server;

(b) Two and one-half percent to the Compulsive Gamblers Assistance Fund;

(c) Two and one-half percent to the General Fund;

(d) Ten percent to the Nebraska Tourism Commission Promotional Cash Fund;

(e) Forty percent to the Property Tax Credit Cash Fund; and

(f) The remaining twenty-five percent to the county treasurer of the county in which the cash device is located to be distributed as follows: (i) If the cash device is located completely within an unincorporated area of a county, the remaining twenty-five percent shall be distributed to the county in which the cash device is located, or (ii) if the cash device is located within the limits of a city or village in such county, one-half of the remaining twenty-five percent shall be distributed to such county and one-half of the remaining twenty-five percent shall be distributed to the city or village in which such cash device is located.

(5) This section does not apply to cash devices operated by a fraternal benefit society organized and licensed under sections 44-1072 to 44-10,109 or a recognized veterans organization as defined in section 80-401.01.