Tax exemption approved for nonprofit clinics

Nonprofit health clinics are exempt from paying sales and use taxes under a bill passed by the Legislature April 5.

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.

Senators passed the bill on a 49-0 vote.