Certain public power equipment exempted from sales tax

Streetlights and power poles owned by a city are exempt from state sales and use tax under a bill passed by lawmakers May 23.

LB218, introduced by Omaha Sen. Brett Lindstrom, adds electric generation, transmission, distribution and street lighting structures or facilities owned by a political subdivision to the definition of real property, thereby making those items exempt from state sales and use tax.

It also excludes from the definition of “gross receipts” the gross income received by political subdivisions for the lease or use of those structures or facilities, making that income exempt from state sales and use tax.

LB218 passed on a vote of 48-0 and takes effect immediately.