The bill would add sales tax to industry unit rentals
May 8, 2019: Nebraska Self-storage operators are being encouraged to fight a bill that would add sales tax to industry unit rentals. This week, the Legislature will debate the largest tax increase in Nebraska history. The Legislature Bill 289 (LB 289), which changes provisions relating to county assessor inspections of real property for property-tax purposes.
If passed, the LB 289 bill would bring the largest tax increase in the state’s history. Legislature Bill 289 introduced in the last January. As per the bill the sales tax rate also increases from 5.5 percent to 6 percent, the measure would impose new taxes on 20 services, including self-storage. It would also cut property-tax relief from the state in half, raise the cigarette tax by 36 cents and increase the tax for buying a house.
Like most states, self storage rentals are currently excluded from tax in Nebraska. To express their concern regarding the bill, industry operators can contact their district senator. The national Self-Storage Association (SSA) has also created a customizable e-mail message for their use. Revenue from LB 289 would increase state tax to K-12 schools by about $500 million. Taxes from self-storage rentals would generate $1.2 million.
The bill faced immense opposition from state residents in the legislature’s revenue committee. Governor Pete Ricketts has also spoken against it.