Change to mandatory tractor permitting passed

Agricultural tractors of 100 horsepower or greater are subject to a mandatory permitting process under a bill passed by the Legislature April 2.

Currently, agricultural tractor models of 40 horsepower or more are subject to the mandatory permit. Only permitted tractors are eligible for the state’s sales tax exemption on agricultural machinery.

LB907, introduced by Holdrege Sen. Tom Carlson, raises the minimum threshold from 40 to 100 horsepower.

Under the bill, vendors have the option to permit tractors with less than 100 horsepower. Customers are still able to purchase unpermitted tractors, but cannot claim the agricultural machinery sales tax exemption.

Senators passed the bill on a 46-0 vote.