Effective today repair and replacement parts for agricultural machinery and equipment will no longer be subject to Nebraska sales and use taxes, Nebraska Farm Bureau reminded farmers Tuesday.
The change in Nebraska state law is the result of the legislation during the 2014 session of the Nebraska Unicameral. The Nebraska Farm Bureau Federation supported the bill. The federation has a daily presence at the State Capitol.
"We are pleased to have worked on behalf of our members to be part of the effort to provide this much needed change in Nebraska tax policy,” said NFB president Steve Nelson.
Prior to the change, Nebraska was one of only eight states that charged sales tax on repair and replacement parts on agricultural machinery and equipment.
“Nebraska’s previous sales tax policy put Nebraska farmers and ranchers doing business with in-state equipment dealers at a competitive disadvantage with their counterparts in neighboring states. It also created an incentive for Nebraska farmers and ranchers to cross state lines for repair needs,” Nelson said.
The change in state law is estimated to save Nebraska farmers and ranchers between $9-$10 million collectively each year. The legislation initiating the tax policy change was introduced by Sen. Annette Dubas of Fullerton. Gov. Dave Heineman signed the bill into law in April.
Nebraska Farm Bureau Federation is a state-wide organization dedicated to supporting farm and ranch families and working for the benefit of all Nebraskans through educational, service and advocacy efforts. More than 56,000 families across Nebraska are Farm Bureau members, many of the using Farm Bureau insurance.
The organization advocates for rural and urban prosperity as agriculture is a key fuel to Nebraska’s economy. For more information, see nefb.org.