Tax exemption for treatment centers, others advanced

Lawmakers advanced a bill from general file March 22 that would provide a tax exemption for certain treatment centers.

LB774, introduced by Norfolk Sen. Jim Scheer, would provide a sales and use tax exemption for purchases made by nonprofit substance abuse treatment centers. Scheer said other nonprofit healthcare providers currently receive the exemption.

“The Nebraska tax policy was never intended to levy taxes on nonprofit healthcare providers,” he said.

A Revenue Committee amendment, adopted 34-0, incorporated provisions of LB510 as originally introduced by Omaha Sen. Tanya Cook. These provisions would allow an employer to apply a nonrefundable tax credit against 20 percent of its expenses used for an employee’s postsecondary tuition or costs associated with a high school equivalency program. The tax credit would be valid for no more than two years of an eligible employee’s expenses.

The committee amendment incorporated provisions of five additional bills, including:
• LB542, originally introduced by Omaha Sen. Burke Harr, which would create a sales tax exemption for county agricultural societies;
• LB888, originally introduced by Omaha Sen. Heath Mello, which would clarify that insurance companies are eligible for tax credits under the Nebraska Job Creation and Mainstreet Revitalization Act and also would reserve the first $4 million in credits for applications seeking credits of $150,000 or less until April 1 each year;
• LB1015, introduced by Harr, which would create a sales tax exemption for museums that rent or lease property;
• LB1047, introduced by Harr, which would add as a qualified activity the drying and aerating of grain in commercial facilities under the sales tax exemption for energy used in manufacturing and processing; and
• LB1088, originally introduced by Hyannis Sen. Al Davis, which would create a sales tax exemption for independent living centers.

Venango Sen. Dan Hughes supported the bill but raised concerns about passing additional sales tax exemptions.

“There is a growing disparity between sales and income taxpayers and property taxpayers,” he said. “There are things the state needs to spend money on but I’m more concerned about the equity of where that money comes from.”

Gering Sen. John Stinner introduced an amendment to the committee amendment, which incorporated provisions of his LB1014. These provisions would exempt from levy limits any property taxes levied for bonds issued by a county airport authority.

The Stinner amendment was adopted 35-0 and senators advanced the bill to select file on a 40-0 vote.