Multiple Sales Tax Bills Introduced To Nebraska Legislature

LINCOLN-(KFOR Feb.26)-Two bills aimed at altering Nebraska’s tax code were introduced to the Revenue Committee of the Nebraska Legislature Wednesday afternoon.

One bill is LB946, an effort to modernize Nebraska’s tax code. If passed, it would change the sales tax rate and impose a tax on additional services. Senator Tom Briese of District 41 introduced the bill, and said that it is necessary to adopt the sales tax system to the reality of the 21st century.

“When our sales tax was first implemented our economy was goods based,” said Briese. “We have shifted to the point where we’re roughly two-thirds service based.”

Briese also described the manner in which the tax would be implemented, with the department of revenue monitoring the rate over time to ensure it doesn’t raise taxes for Nebraskans. He claimed that adding the service tax would spread the tax load more evenly and fairly across the economy.

Against the proposed tax changes were many service industry associations, including the Nebraska Broadcaster’s Association. Craig Eckort represented the NBA, taking the stance that adding a tax to advertising costs is essentially adding a tax to free speech which should be protected by the First Amendment.

Korby Gilbertson represented a coalition of groups who all wanted the same thing: to have their concerns about exemptions met before the bill passes legislation. The bill as proposed would leave no group exempt and would give away exemptions on a case-by-case basis.

Another bill introduced before the Revenue Committee was LB1162, also proposed by Senator Briese. It which would expand Nebraska’s sales tax to include gambling machines.

The bill if passed would add a 10% tax on revenue of the devices which would be paid to the property tax credit fund.

Briese said that owners of coin operated gaming machines pay a $35 fee for a license, but pay no tax on the amount of money wagered in them.

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