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.
