Pillen says ag inputs won’t be subject to new sales taxes

Some Nebraska farm groups would like to see the Governor’s administration reduce the state’s budget deficit without significant impacts to producers.  

Jim Pillen says his administration doesn’t have plans to eliminate sales tax exemptions for some ag products. “Nobody has talked about taxing ag inputs. Pun intended, it’s pure hogwash.”

He tells Brownfield there’s plenty of misinformation about how the state plans to address the more-than $200 million shortfall. “I’ve been accused, (by) somebody (recently) that I’m talking about sales tax on implements. It never crossed our mind. It’s crazy. Let’s have a broaden sales tax where all Nebraskans participate. Services would be pretty simple.”

Pillen says he’s considering removing the exemption for animal antibiotics.

Speaking with reporters at Husker Harvest Days, Nebraska Farm Bureau President Mark McHargue says the organization is opposed because it would further raise operating expenses. “Quite frankly, our inputs are high enough already. Our inputs are almost at the highest they’ve ever been.”

South-central Nebraska farmer Lance Atwater says, “After running the numbers, I would actually end up paying 170 percent more in taxes then what I pay in property taxes.”

NEFB also says that high property taxes are also impacting ag profitability and would like to see additional steps taken to lower levies.