LINCOLN – A new Platte Institute report recommends expanding Nebraska’s sales tax to additional goods and services to help fund income and property tax relief. The report estimates that taxing currently exempt services, including lawn care, vehicle repairs, and personal care, could generate approximately $202 million annually in additional state revenue by fiscal year 2028. Broader expansions covering groceries, motor fuel, and certain medical and professional services could raise the total to $1.63 billion. The Platte Institute argues that expanding the sales tax base would help Nebraska maintain its planned income tax reductions, address budget challenges, and improve economic competitiveness.
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