Tax exemption proposed for nonprofit clinics

Nonprofit health clinics would be exempt from paying sales and use taxes under a bill advanced from general file Jan 31.

Under LB40, introduced by Kearney Sen. Galen Hadley, clinics must meet two requirements to qualify for the tax exemption. First, the clinic must be owned by one or more hospitals operating the clinic as a nonprofit. Second, the health clinic must be licensed under the Health Care Facility Licensure Act.

Hadley said the bill would resolve a long-standing issue.

“It is certainly not our intention to tax nonprofit health care,” Hadley said.

Schuyler Sen. Chris Langemeier voiced his support for the bill, saying the nonprofit clinics provide an important service to many people.

“I believe this [exemption] is a priority that many Nebraskans have demonstrated they have,” Langemeier said.

Boys Town Sen. Rich Pahls said he had some reservations about supporting a new tax exemption in the current economic climate.

“I know that this is an important bill in a lot of peoples’ eyes,” Pahls said. “We need to remember these exemptions add up.”

Senators advanced the bill to select file on a 37-0 vote.