Tax exemption proposed for mental health centers

The taxation of nonprofit mental health centers would be clarified by a bill advanced from general file March 19.

Under LB1097, introduced by Omaha Sen. Pete Pirsch, purchases made by nonprofit mental health centers would not be subject to sales and use taxes.

“Within the tax policy of Nebraska it’s never been the intent to tax nonprofit health care,” Pirsch said. “It is not sound policy to expect these providers to pay sales and use taxes.”

Bellevue Sen. Abbie Cornett spoke in support of the bill, saying it was necessary to put the exemption into statute.

“This is a bill that will finally give the Department of Revenue the clarification they have been asking for in regard to nonprofit mental health centers,” she said.

Senators advanced the bill to select file on a 32-0 vote.