A bill working its way through the Nebraska legislature would create a commission of state lawmakers to study possible reforms in the state tax system.
LB613 creates a Tax Modernization Commission, which would study whether state taxes should be shifted or otherwise changed to make the state’s tax system more competitive with other states.
Property taxes need to be part of that discussion, says Nebraska Farm Bureau’s Jay Rempe.
“It’s expected that that discussion will include all taxes in Nebraska, including property taxes,” Rempe says. “I think senators have heard from a lot of people across the state that that needs to be part of it.”
A separate bill, LB96, would exempt repair or replacement parts for ag machinery and equipment from the state sales tax.
“It really is a competition issue for equipment dealers near the borders of Nebraska, because no other—with the exception of Wyoming—all the other states do no levy a sales tax on repair parts,” Rempe says. “So our dealers along the border are losing a lot of business and there’s a potential loss of jobs there.”