Nebraska: Annual Tax Expenditure Report to Include Sales Tax and Exemptions
- Apr 16, 2014 | Gail Cole
The Nebraska Tax Expenditure Reporting Act is being amended to include exempt services purchased for nonbusiness purposes.
Exempt services in Nebraska include, but are not limited to, the following:
- Admissions to places of entertainment;
- Accounting services;
- Cleaning and repair of clothing;
- Lawn care, gardening and landscaping services;
- Maintenance, painting and repair of real property;
- Motor vehicle cleaning, maintenance and repair services;
- Personal care services;
- Pet-related services;
- Storage and moving services; and
- Transportation services such as taxi and limousine.
The purpose of the Nebraska Tax Expenditure Reporting Act is to “provide a mechanism which will enable the Legislature to better determine those sectors of the economy which are receiving indirect subsidies as a result of tax expenditures.” In addition, it helps lawmakers uncover potential sources of revenue. The most recent amendment allows scrutiny of the “actual or estimated revenue loss caused by failure to impose sales and use tax on services purchased for nonbusiness use.”
In addition to impacting budgets, sales and use tax exemptions are a common cause of negative audit findings. An automated solution helps to effectively and efficiently manage sales tax exemptions.