Revenue committee hears bill to exempt state sales tax on residential utilities

Senators in the Nebraska Legislature’s Revenue Committee heard testimony on LB 117 and AM 100, a bill that would exempt the 5.5% state sales tax on residential utilities such as electricity, natural gas, propane and sewer service at a primary residence or at commercial properties primarily made up of residential units. Senator Rick Holcroft introduced the bill and asked the committee for a timely vote to advance it to the full Legislature.

The bill’s supporters told the committee that exempting state sales tax on utilities would reduce household costs and protect low-income families from spikes in energy prices. “Utilities are a necessity and not a luxury,” Senator Rick Holcroft said in his opening remarks. Proponent witnesses — including Nebraska’s Public Advocate for natural gas ratepayers, industry representatives and Senator LuAnn Linehan — said the exemption is consistent with other…