Revenue Committee hears proposals to pull sales tax exemptions

Facing a budget shortage, eliminating some sales tax exemptions is one way to address that

March 17, 2025Updated: March 17, 2025
News Channel NebraskaBy News Channel Nebraska

BEATRICE – A Nebraska lawmaker has made eliminating a tax exemption his priority bill, for this session.

32nd District Senator Tom Brandt, of Plymouth has introduced LB 170, proposing to eliminate the sales tax exemption on candy and soft drinks. 

The bill was heard last Thursday by the Revenue Committee.  Eliminating the exemption would raise general fund revenue by a total of nearly $65 million over the next two fiscal years.  Brandt said the move would broaden the sales tax base, address a shortfall in state revenue and make it easier to provide property tax relief.

Brandt has also introduced LB 169, which proposes eliminating sales tax exemptions on about two dozen currently exempt services.

Both of Brandt’s bills drew opposition during their committee hearings from the Nebraska Chamber of Commerce and Industry.

On Monday, Speaker of the Legislature, Senator John Arch announced 25 bills he is naming as speaker priority measures.  One of them is introduced by Senator Brandt.   

LB 561 proposes changing the maximum weight limits for vehicles carrying raw milk.  Under the bill, drivers would be allowed to haul raw milk from a dairy farm to a processing facility, at up to 15-percent more than the maximum weight now allowed.

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