Posted January 28, 2014
A bill introduced in the Nebraska legislature would exempt agricultural repair and replacement parts from Nebraska’s sales tax, according to an Associated Press story available here.
The bill, LB96, was introduced by state Sen. Annette Dubas. The full text of the bill is available here.
Nebraska Governor Dave Heineman has expressed his support for the bill.
Sen. Dubas, said she introduced the bill because the same parts are sold tax free in neighboring states including Kansas, Iowa, Missouri, South Dakota, and Colorado, according to a KVNO News article available here. “If our farmers and ranchers are traveling to another state to buy repairs, they are ultimately buying their equipment there as well. These are big ticket items, costing hundreds of thousands of dollars,” said Dubas.
State Sen. Tom Hansen, supports the bill, but cautions against taking tax cuts too far. “This legislation stands in sharp contrast to some of the radical and fiscally irresponsible approaches that members of this body have put forward in regard to tax policy this session,” said Hansen.
If passed, the ag repair tax exemption is “expected to reduce state revenues by a little more than $9 million.”
For more information on agricultural tax issues, please visit the National Agricultural Law Center’s website here.