NTF WORKSHEET: LB 289 WOULD EXPAND SALES TAX to MANY SERVICES

NTF worksheet: legwatch179.doc. 5-19.
NEBRASKA TAXPAYERS FOR FREEDOM WORKSHEET:
LB 289 WOULD EXPAND SALES TAX TO MANY SERVICES.

BACKGROUND. The Revenue Committee of the Legislature has altered and revised LB 289 for several weeks and finally presented a new version to the full Legislature for debate. One provision that has attracted alarm and heavy opposition is the expansion of the state sales tax to many services. This expansion is unfair for several reasons. First, services that remain untaxed will enjoy a financial advantage. A representative from the Tax Foundation advised that it is more fair and easier to apply sales tax to all services or none. Secondly, states that have extended sales taxes to several services eventually apply the tax to all services, increasing the sales tax burden on their residents. Third, states that have expanded sales taxes to services eventually raise the tax rate percentage on both products and services. Furthermore, this tax expansion includes only a number of services offered by a business; other services offered not taxed. This situation creates an accounting nightmare for small businesses. Below is a list of services targeted by LB 289.

TARGET LIST:
Pet-related services
Transportation and car ownership including:
     brakes and body repair
     scheduled maintenance
Parking
Taxi, limo, and rideshares
Home maintenance and improvements including:
     plumbing
     HVAC
     electrical
     interior design
     swimming pool cleaning
     lawn care
Personal care including:
     hair care
     hair removal services
     nail care
     skin care
     weight loss
     personal training
Moving services and storage
Clothing alterations
Dating and weddings including:
     dating services
     tele-floral
     wedding planning
Food items:
     candy
     pop
     bottled water
     ice
Tattoos

TAKE ACTION NOW. If LB 289 passes into law, it will yoke us with $600 million in new taxes. Nebraskans will gain no guarantee of future property tax relief. Instead, we will pay higher state sales tax on all our products and an increasing number of our services. Email your state senator today to vote NO on LB 289. Email netaxpayers@gmail.com for contact information for your state senator and to join our NTF Legislature Watch Project.