While the world recognizes Earth Day, we as Nebraskans can be proud that our very own Arbor Day is where it all started. The first Arbor Day was celebrated in 1872 in Nebraska City, and was named a legal state holiday in 1885. I am glad our state carries on the legacy of planting trees and being good stewards of the land, another reminder that more than one-fourth of Nebraska’s economy is connected to ag production.

One of the bills affecting agriculture before the Legislature was debated this week, LB 595, which provides a sales tax exemption on the enzymes, yeast and related products used in the process of manufacturing ethyl alcohol. The Revenue Committee also amended portions of four other bills into LB 595. As a result, this bill would now exempt additional ag machinery and equipment used directly in crop and animal production, climate control equipment on livestock buildings, and some ag equipment used in transportation. It would allow businesses under the expiring Advantage Act to dovetail in the ImagiNE Act with the same sales tax requirements; send the sales tax from recreational vehicles such as boats and ATVs to a capital maintenance  fund at Game and Parks; and exempt some inputs to internet installation from sales tax. 

Another exemption from sales and use tax passed first round debate this week, Sen. Wayne’s LB 26. This bill would exempt the gross receipts from the sale, lease, or rental of and the storage, use, or other consumption of residential water service from sales or use tax. The bill advanced on a 38 to 3 vote.

These exemptions from sales tax, as well as reductions in income tax, will take millions of dollars out of the expected state revenue in the next few years. We all want to pay less in taxes, but we also want the state budget to provide the things we all need and depend on. It is always a matter of balance and very intentional consideration. As senators, we must make sure we assess tax where needed and give breaks where it will do the most good; always being mindful of how that affects individuals and the state as a whole.

Sen. Brandt’s LB 396 passed to second round consideration with no dissenting votes. It would create the Nebraska Farm-to-School Program Act and link elementary and secondary public and nonpublic schools in this state with locally and regionally produced or processed food in order to encourage children to develop healthy eating habits and improve the incomes of Nebraska farmers. The fiscal note will include a coordinator, a registration system, and  a way to connect producers and schools. This should help people in the area who could raise food that the school can use and save some costs to the schools in shipping. The bills advanced on a vote of 43-0.

Another bill with local impact was LB 366, introduced by Sen. Briese. We had a good discussion about enterprise tax credits. This act to support small, or micro businesses, began in 2014, providing $10,000 per entity. The fund got a lot of use in the past, but that had fallen off. So this bill changed the support amount to a $20,000 cap, while simplifying and reducing some of the paperwork. In rural areas of our district, this would really help some businesses. Part of making this effective is increasing awareness about the fund and how it can help small businesses get their feet off the ground. I feel that will be especially helpful as we continue to come out of the pandemic.

As we continue to work for the good of District 30 and the state as a whole, I welcome your communication. Contact me at mdorn@leg.ne.gov or 402-471-2620.