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Sen. John Kavanaugh proposes sales‑tax exemption for over‑the‑counter drugs

Nebraska Legislature Revenue Committee · February 20, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Sen. John Kavanaugh introduced LB 849 to exempt over‑the‑counter drugs from sales and use tax, saying OTC items often recommended by physicians should be tax‑exempt. The committee recorded written support and opposition but heard no in‑person testimony and did not take action.

Senator John Kavanaugh, who said he represents the 9th Legislative District in Midtown Omaha, told the Revenue Committee LB 849 would exempt over‑the‑counter drugs from sales and use tax. Kavanaugh argued that, as basic household health items often recommended by physicians, such products should be treated similarly to prescription drugs, which are already exempt from sales tax.

The committee asked for proponents and opponents; there were no in‑person testifiers. Committee staff recorded eight proponent letters and seven opponent letters in the hearing record. Kavanaugh acknowledged many colleagues may be reluctant to add exemptions amid budget pressures but said the measure is intended to protect households from additional costs tied to basic health care needs.

The hearing record contains written advocacy on both sides; the committee moved on to subsequent bills without a vote on LB 849.