LINCOLN – Monday, Governor Pete Ricketts and representatives from Norm’s Car Care called for the Legislature to scrap its plan to tax automotive maintenance and repairs. This week, the Legislature will open debate on LB 289, the largest tax increase in state history.
“The money from these new taxes won’t go toward direct property tax relief—it will go to increase local government spending,” said Governor Ricketts. “The Legislature’s scheme will result in high property taxes and high sales taxes without giving hardworking Nebraskans the real, sustainable tax relief they need.”
As currently written, LB 289 would raise the sales tax in Nebraska to an all-time high and cut property tax relief from the state in half. It would also add new sales taxes, of up to 8%, on more than 20 services including plumbing, electrical work, HVAC services, roofing, storage, pet healthcare, haircuts, and motor vehicle repairs.
“We can’t afford to absorb an almost 8% increase in the labors that we do here in our store, and our customers can’t afford it either,” said Ian Oehm of Norm’s Car Care. “An 8% difference really does strike at the heart of working Nebraskans and working Lincolnites. It adds undue stress and financial strain to families.”
Governor Ricketts encouraged Nebraskans to contact their State Senator to voice their opinion of the plan. The contact information for Nebraska’s Legislators can be found at www.NebraskaLegislature.gov.