AROUND NEBRASKA

PHIL ERDMAN Director of Dealer and Government Affairs [phile@ineda.com]

Nebraska Legislature

“It’s déjà vu all over again!” – Yogi Berra

As soon as the Nebraska Legislature adjourned in April, Governor Pillen began efforts to bring Senators back for a “special session” to work on the impact of rising property taxes. As property taxpayers in Nebraska of personal and business real estate taxes, we have seen these increases firsthand. We do not oppose the goal of tax reform, but the priority should be to see the tax burden go down – not just paid differently.

Governor Pillen proposed taxing all ag machinery (new and used) at 4%. The tax increase would have funded 25% of the cost of shifting the funding of schools and local government from primarily property

We discussed the impact of this new taxation on your business and customers, the reality of border bleed and driving sales across the border, that half of the relief would not go to the farmers paying higher taxes, and the practical problems with the drafting of the bill including the reality that ag machinery would generate 25% of the tax increase hoped for by Governor Pillen to fund his tax shift.

14 dealers also submitted written testimony to the Revenue Committee and nearly every dealership group contacted their Senator. THANK YOU!

Since 1992, Nebraska has exempted the sale of agricultural machinery and equipment used in commercial agriculture from sales and use tax. Every previous amendment to state law was needed to correct the work of an overzealous department of Revenue who repeatedly reinterpreted the plain meaning of ag equipment and parts. That is why net wrap, baling wire and twine, header trailers, head haulers, header transports, and seed tender trailers had to be amended into statute with specific language to restore their status as exempt agricultural machinery and equipment.

The bill that ultimately passed did not include any new taxes on machinery. It was nearly identical to an amendment that was offered during the regular session to replace the income tax credit you get for paying property taxes to schools to directly crediting you that amount in the form of a property tax credit on your property tax statement. NOTE: When you file your 2024 income taxes you can expect an increase in your liability as the previous property tax credit will no longer reduce your income tax liability.

“It’s déjà vu all over again!”

NED PAC Update

Dealers across Nebraska have been or will be hosting Legislative candidates before November to discuss issues that are of importance to the future of their business. Topics include adequate labor and what dealers are doing to recruit and retain a talented workforce, housing, broadband/connectivity, right to repair, and, of course, taxation.

There are 25 Legislative Districts that are up for election – over half – and only 10 incumbents are running in those races. INEDA members in Nebraska, through the Nebraska Legislative Committee, have chosen to support 28 candidates.

Federal

Congressman Smith (NE), Chair of the Rural America Tax Team for Ways and Means Committee Republicans, is leading the effort to review the tax code ahead of Tax Cuts and Jobs Act reauthorization next year. During their travels to eastern Nebraska and western Iowa, they invited members to Claas North America Headquarters. Dave McCarthy (Titan Machinery), Kevin Clark (AKRS Equipment), Don Partridge (Bobcat of Omaha) along with INEDA staff attended and were armed with their own experiences as well as key updates and policy information from our federal advocacy partners at Associated Equipment Dealers (AED). Among the topics discussed included Section 179 expensing.

(L to R) Mark Hennessey (INEDA), Congressman Smith, Don Partridge (Bobcat of Omaha), and Dave McCarthy (Titan Machinery).

Claas leadership hosted Members of Congress (Center): Mike Flood (NE), Nicole Malliotakis (NY), Adrian Smith (NE), Randy Feenstra (IA), and Don Bacon (NE).

Jamie Mertz (INEDA) and Congressman Randy Feenstra (IA).

Career Exploration –Agriculture Equipment Maintenance and Technology Curriculum

Four teachers from Nebraska and Iowa have recently completed curriculum training to teach and raise the interest and aptitude of students in high school for careers in Agricultural Equipment Maintenance & Technology (AEMT).

In Nebraska, Mr. Kubik at Norris High School and Mrs. Mowry at Syracuse/Dunbar/Avoca High School have both completed the AEMT training. Members in Nebraska visited their classrooms and delivered a starter electrical board for training in the ag equipment management and technology curriculum.

Representatives of AKRS Equipment and KanEquip joined INEDA staff in Nebraska to also discuss career opportunities for students in their dealership business.

Electrical training tool incorporates the starting system, safety system, PTO system and charging system and is designed help students understand series circuits.