State Senator Proposes Higher Taxes On Candy, Soda And Certain Services

Nebraska lawmakers are considering a bill that would give people a break on property taxes by increasing sales taxes on some items. LB 314 would raise the state sales tax by half a percentage point on certain services and items like candy, soda and bottled water.

On Wednesday Governor Pete Ricketts and Nebraska grocers came out against the bill. “Taxing working Nebraskans and making their grocery bills more expensive by taxing food, pop, candy, bottled water, is not the answer.”

The Governor said this bill will affect poor Nebraskans and force one group to essentially pay for homeowners to have a tax cut.

Lou Ann Linehan, of the Revenue Committee, told 6 News that this won’t affect low income families. “Food is need to have, candy is nice to have. So we're trying to make sure that we are not taxing anything that people have to have.”

Ricketts argues the bill is too confusing, saying it's too hard for consumers to know what is and isn't being taxed.

In addition to sweets and sodas, the bill would also raise taxes on things like tobacco, alcohol, ride-sharing services, landscaping, tanning and a slew of other services and goods. you can see some of the tax increases below:

Sales and Use Tax Changes: The bill changes sales and use tax provisions, beginning January 1, 2020, as follows: Increases the state sales tax rate from 5.5% to 6.0%;

  • Imposes sales and use tax on:
  • motor vehicle repair and maintenance labor
  • pet-related services
  • cleaning of clothing
  • storage and moving services
  • ride-sharing services
  • personal care services including hair care, massage, tanning, nail services, spa services, and tattoo services
  • maintenance, painting, repair, and decorating services for single-family homes
  • limousine, taxi, and transportation services
  • travel agents, tour operators, and online travel services
  • lawn care, gardening, and landscaping
  • parking services
  • swimming pool cleaning and maintenance
  • dating and escort services
  • instruction in music, dance, golf, and other recreational activities
  • telefloral delivery services
  • Imposes sales and use tax on candy, soft drinks, and bottled water


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