|
(Lincoln, NE) Gov. Dave Heineman visited a recently remodeled Lincoln home today to highlight sales tax relief that takes effect on July 1.
LB 968 was passed this year’s legislative session and signed into law by the Governor on April 6. In addition to providing income and modest property tax relief, the bill repeals the sales tax on home-repair labor.
“I am pleased for hard-working Nebraskans that we can provide tax relief for the people who want to add value to their existing homes by making improvements,” Gov. Heineman said. “Beginning this weekend, Nebraskans will have an opportunity to embark on home-improvement projects without being taxed on the labor they can’t do themselves and in some cases see the cost of home repairs reduced with the elimination of this tax.”
Examples of the types of previously taxed home projects that will be exempt from the sales tax on labor include: repairs to air conditioning and heating units, home painting projects, roofing repairs, carpet and laminate replacement, wood floor finishing, kitchen, basement, bedroom and living quarters remodeling projects, as well as improvements to drywall.
The sales tax relief portion of LB 968 is expected to provide more than $30 million in sales tax relief in the coming fiscal year, which begins July 1. The remainder of LB 968 includes changes to the income tax brackets, expansion of the homestead exemption, the addition of an earned-income tax credit, and the reduction of agricultural land valuations.
The full tax relief package contained in LB 968 is expected to provide $90 million a year in tax relief.
|
