Omaha, Neb. — A Nebraska group that advocates for lowering taxes is urging lawmakers to get rid of sales tax exemptions on many goods and services and use the extra revenue to lower property taxes and the state’s sales tax rate.
The Platte Institute said Tuesday that Nebraska’s sales tax system hasn’t kept pace with the state economy. The report says services have grown as a share of Nebraska’s economy, but many of them are exempt from sales taxes.
Any service that loses its exemption would be subject to sales tax, but the Platte Institute report argues that it would broaden the sales tax base. The report says the extra revenue generated should then be used to lower property taxes and the state’s sales tax rate.