Advanced tax code adjustments include land donations, natural gas

Senators amended and advanced a bill from select file March 19 that would make several technical changes to the state tax code regarding auto museums, sports arenas, bullion and postage.

Currently, only a municipal employee is authorized to access sales and use tax information of permit holders within city limits. LB867, introduced by Kearney Sen. Galen Hadley, would broaden the statute to include any person certified by the municipality seeking the information. Confidentiality provisions already in statute still would bind the certified person, who could include a financial or accounting contractor.

Omaha Sen. John Nelson introduced an amendment, adopted 33-0, which incorporated provisions of his LB1043. The amendment would exempt from the documentary stamp tax charitable donations of land to nonprofits. Nelson said it represented good tax policy.

“Our public charities provide aid for the poor, the sick, the hungry where the state cannot,” he said. “[This amendment] reflects the fact that good public policy does not tax charitable gifts.”

A second amendment, introduced by Omaha Sen. Jeremy Nordquist and adopted 28-0, incorporated provisions of his LB150.

Currently, the Metropolitan Utilities District (MUD) remits the equivalent of 2 percent of the annual gross revenue derived from all retail sales of water and gas sold by MUD to Omaha.

The Nordquist amendment would exempt from the calculation the retail sale of natural gas used as vehicular fuel. It also would exempt the energy used in the compression of natural gas for sale as vehicular fuel.

A Revenue Committee amendment, adopted 35-0 on general file, would incorporate the provisions of several bills, including:
• LB809, originally introduced by Lincoln Sen. Colby Coash, which would exempt from sales and use taxes purchases made by historic automobile museums;
• LB783, originally introduced by Omaha Sen. Steve Lathrop, which would change the annual determination and certification of sales tax revenue under the Sports Arena Financing Act to a quarterly determination and certification;
• LB159, originally introduced by Columbus Sen. Paul Schumacher, which would exempt the sale, lease or rental of currency or bullion from sales and use taxes; and
• LB829, also introduced by Schumacher, which would exempt separately stated postage charges from sales and use taxes.

Following the adoption of a technical amendment, senators advanced the bill to final reading on a voice vote.