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The Revenue Committee of the Nebraska Legislature is currently considering measures to increase revenue. (Nebraska has a unicameral legislature, that is, only one body). The measures reportedly include an increase in the real estate transfer tax, taxing home repairs such as plumbing work, and placing a tax on moving services.Currently, the real estate transfer tax is $2.25 per $1,000 of value. It is not clear how much the tax would be increased. The sales tax (currently 5.5% statewide, with local options up to 7.5%) would be extended to home repair services and moving services. Revenues from the increases would primarily be used to reduce property taxes.However, Realtors and builders have strongly opposed any such new taxes. And on April 12, 2019, the state’s governor joined them in announcing his opposition. Governor Ricketts (R), echoing the positions of the Realtors and builders, said that working families would be unacceptably harmed by the proposed changes.
Each of the tax increases proposed would add costs to the relocation of employees. Worldwide ERC® members need to be aware of these proposals.
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