Ethanol input tax exemption amended, advanced

A bill containing several sales and use tax exemptions advanced to the final round of debate May 11 after lawmakers amended it to clarify a provision related to ethanol inputs.

Under LB595, introduced by Thurston Sen. Joni Albrecht, state sales and use taxes could not be imposed on gross receipts from the sale, lease or rental of — and storage, use or other consumption in Nebraska of — enzymes, yeast and related products used to manufacture ethanol.

Albrecht introduced an amendment on select file, adopted 31-0, that instead would exempt from state sales and use taxes all catalysts, chemicals and materials used in the process of manufacturing ethanol and the production of coproducts.

She said the change would provide clarity to the state Department of Revenue and ensure that the proposed exemption applies to all inputs used in ethanol manufacturing and the production of coproducts such as distillers grains.

As amended on general file, LB595 also would exempt from state sales and use taxes the gross income received from the lease or use of towers or other structures primarily used in conjunction with the furnishing of internet access service.

Sen. Lou Ann Linehan of Elkhorn introduced an amendment to expand the exemption to include such income related to the furnishing of agricultural GPS locating services or certain over-the-air radio and television broadcasting.

After voting 34-0 to adopt Linehan’s amendment, senators advanced LB595 to final reading by a vote of 37-0.