A long-time effort to provide a tax break on agricultural machinery parts has run into a snag, again.
Sen. Annette Dubas of Fullerton sponsors LB 96, which would exempt the sale of agricultural machinery parts from the state sales tax.
Dubas insists this tax break isn’t what it seems.
“This isn’t about giving a tax break to farmers. It appears that’s who the direct beneficiary is going to be,” Dubas says. “This is about a very important industry in our state that supports agriculture; our implement dealers. And especially for those dealers who are on the borders of states that don’t charge sales tax on their repairs and parts, they are in extreme economic disadvantage.”
Every border state except one provides the tax break. Farmers who live near the border simply cross the state line to get the break on their parts purchase.
Dubas says the exemption would level the playing field for implement dealers located along the border.
“Our implement dealers are a very important component of our business as farmers and ranchers and when it becomes more difficult for us to have a relationship with our instate dealers, it’s not good for our economy,” Dubas argues.
Dubas says the proposal has been around for years. She’s just the latest to sponsor it. Something always derails it, according to Dubas.
This year, the legislature has become reluctant to consider any tax breaks prior to a proposal study of the entire state tax code. Still, some members of the Revenue Committee have been pushing it, arguing that it is a break that benefits both the implement dealer and the farmer.