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Iowa holiday prompts call for same in Nebraska

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By The Associated Press

Wednesday, Jul 30, 2008 - 09:45:18 am CDT

The sales tax holiday in Iowa scheduled for this weekend is renewing pleas to have one in Nebraska.

State Sen. Bill Avery of Lincoln says the state needs a holiday from sales taxes during the back-to-school shopping season to compete with Iowa. Missouri also gives shoppers a short reprieve from taxes, and a total of about 15 states do so.

Avery says he’s “tired of seeing parking lots in Council Bluffs full of cars with Nebraska license plates” and that he can’t blame Nebraskans for crossing the river. he plans to introduce a bill for a sales tax holiday next legislative session.

Story Photo
State Sen. Bill Avery of Lincoln

Previous proposals for a tax holiday have fallen flat, partially because of worries it would put a dent in state revenues.


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nemo wrote on July 30, 2008 10:05 am:
" it's true, I've been to state's where they use this, it may not be so great for state's sales tax revenue but it's great for retailers go for it. "

well of course wrote on July 30, 2008 10:17 am:
" why would Nebraska want to compete with Iowa? come on Nebraska wake up. "

Outside the Box wrote on July 30, 2008 10:31 am:
" As someone in Sen. Avery's district, I've been very impressed with his record and accomplishments as a first year senator. However, I think he's off-base with this plan.

Even with a 5% tax-free savings, it takes a lot of spending to break even on the gas needed to drive to Coucil Bluffs for anyone outside the Omaha metro. A Lincolnite whose vehicle gets 25 MPG would need to spend $400 to break even.

While a Nebraska tax holiday would benefit families throughout the state, tax revenues are lost and either need to be made up somewhere else (hello tax increase!) or more sevices would need to be trimmed.

But it is a great way for a politican to get votes and positive press "

Car Sales wrote on July 30, 2008 10:38 am:
" Sales tax holidays should also apply to new car sales, and be scheduled months ahead. "

Grundle wrote on July 30, 2008 10:45 am:
" I buy most of my clothes in Kansas City or Minnesota anyway. All my electronics are bought online. And my books come from online.

Since this state cannot budget money properly I will support them as little as possible. "

Matt wrote on July 30, 2008 10:47 am:
" Maybe we should ask Senator Avery what he's doing in Council Bluffs' parking lots. Shopping? "

C wrote on July 30, 2008 10:48 am:
" I think it would be a good idea. Didn't they just say the state had over a 500 million cash reserve. Losing 2-3 million in sales tax revenue is not going to kill them. "

Jim wrote on July 30, 2008 10:50 am:
" Nebraska legislature passing up on opportunity to tax residents? Ha! Nice try Mr. Avery but, never happen. After all, gambling and the tax free holiday in Iowa have turned them all into lawless hooligans. We would never want that here. We'd rather be taxed to death. "

This one stinks wrote on July 30, 2008 11:07 am:
" The only winners are the retailers. The public is duped into believing they are getting a break by trunpeting a holiday from sales tax. The retailers charge regular prices instead of having their normal sales, so they get a windfall and the public actually pays more. The state would lose millions of dollars in sales tax. Cities would lose their portion of city sales tax, Lincoln and Omaha taking the biggest hit (I find it interesting that the LJS hasn't figured this out). Where the state could possibly afford the loss in income, I know that Lincoln cannot. Does Senator Avery have a mechanism so that cities can recover their lost income? If you want to compete with Iowa, why not broaden the tax base and reduce the tax rate year round? If this is such a good idea why limit it to just one weekend a year, let's exempt these items permanently (Minnesota exempts clothing year round)? BTW, Missouri has a completely different system than Iowa and Nebraska. In Missouri, cities are allowed to opt out of the holiday and can charge the regular sales tax during the holiday. All this bill is, is a politician's trick to make people think that he's doing something. Once it is in place it would be impossible to take back, ask the Iowa Department of Revenue, they are stuck. "

THE OTHER JR wrote on July 30, 2008 11:19 am:
" Thanks LJS for the head's up about this weekend. Nothing going on in Nebraska -- again -- so I believe I'll take a quick trip and spend some money with our neighbors to the east. I can take advantage of Iowa's sales tax holiday and hit up their casinos all in a day! "

to Grundle wrote on July 30, 2008 11:22 am:
" you are actively breaking the law if you are buying items online and not sending in the state required tax...just becuase the website doesn't charge it doesn;t mean you don't owe it "

zippy wrote on July 30, 2008 11:24 am:
" Thank you, Senator Avery! One weekend a year would NOT kill Nebraska's sales tax revenue, but would provide some welcome relief for families that struggle with back to school shopping for their children. Clothes and school supplies for a family of kids can add up fast. And how much of a dent would it really make if many Nebraskans from the most populous cities in the state are giving that business to Iowa and Missouri anyway? I say bite a small bullet on tax revenue, give a break to Nebraska's families, and let the retailers see some benefit rather than giving it to Iowa and Missouri! "

It wrote on July 30, 2008 11:26 am:
" ain't ever going to happen in nebraska. The year is 2008 and nebraska lives in the year 1953. If it ain't broke don't fix it seems to be the attitude. "

something useful wrote on July 30, 2008 11:33 am:
" If you want to compete with Iowa pass gaming. Nebraska might not even need a sales tax at all then. "

jim wrote on July 30, 2008 11:33 am:
" For this on stinks: I live in Missouri and you are all wet about this states sales tax holiday. It is up to the town if they want to have their own sales tax holiday to run concurrent with the states holiday. Either get it right or don't put in for people to read. Also, working in retail in Missouri, we don't take things off sale and sell at full retail during the period. If we don't have to charge the sales tax, the state takes the hit not us. Typical of people who never leave the state or city to make statements like this. Believe it or not, it ain't hard to spend $400 when you buy computers or the like even without state sales tax. I guess if you can't have it, it has to be a bad idea. "

M wrote on July 30, 2008 11:41 am:
" Just one more reason I am happy to be moving to Iowa!! "

JB wrote on July 30, 2008 11:55 am:
" Yet ANOTHER reason Iowa is better then Nebraska. "

why wrote on July 30, 2008 11:59 am:
" Avery says he’s “tired of seeing parking lots in Council Bluffs full of cars with Nebraska license plates” and that he can’t blame Nebraskans for crossing the river. he plans to introduce a bill for a sales tax holiday next legislative session.

Same goes for casino parking lots. So what's the difference?!? "

RE wrote on July 30, 2008 12:04 pm:
" Grundle: if you didn't pay sales tax on your online orders to another state, you still need to file a Nebraska Use Tax form to pay state sales tax on items purchased online or through mail order.

This one Stinks: it is a state tax holiday, not a city tax holiday. the state would forgoe its 5.5% while the city could still collect its 1.5% "

Good idea wrote on July 30, 2008 12:06 pm:
" That shows how smart Iowa and MO are and how stupid Nebraska is. Lower
taxes brings in more business and spending. Guess you haven't listened
to Bush! Just wait until Obama gets ahold of ya, he flip flops so much you
don't know what way your going. How on earth do you suppose other states
live and GROW with taxes half of Nebraska's. In Nebraska its alllllllll
about that last dime somebody has. The state I lived in with half the
taxes was more concerned about their citizens welfare, with 6% sales tax,
my property tax in Lincoln 6 times higher, social security not taxed
because they care about their retireds in the state I moved from. This
is NOT a happy state to live in, and I've never seen so much hatred and
greed in all my life since I moved here, which was not my wish! I know
a ton of people here that do most of their shopping in Minn, Iowa, K.C., Indiana, Chicago and Denver on special trips and vacations. Also many
do their grocery shopping out of state and many buy gas in Iowa. And
Nebraska wonders why sales taxes have been down!!!! Raise taxes some more
maybe you'll finally figure it out, I doubt with NE's greed. I never lived anywhere, where car dealers were open on Sunday. Gotta get that
last dime!!!!! Yep state I lived in Worship God on Sunday, not the buck!! "

Mother of School Children wrote on July 30, 2008 12:22 pm:
" I personally go to Iowa to do my school shopping on such an event. It saves money and considering the way the economy is...well need I say more. Shame on you Nebraska for not helping out the locals!!! "

Andy Dalka wrote on July 30, 2008 12:35 pm:
" Avery is the man; he was my professor at UNL. The guy is very intelligent, and I think this is a great Idea. Way to go Avery!!!! "

Brock Landers wrote on July 30, 2008 12:58 pm:
" I planned on going over to Iowa this weekend anyway to see family so now I will spend some money there too! Nebraska needs to get with the times and legalize gambling, have sales tax holidays, and sell fireworks year round. Maybe then we might enjoy lower taxes, smoother roads, and better schools. "

to Outside the Box wrote on July 30, 2008 1:01 pm:
" Obviously you don't have a family of three or more. Back to school basics can get costly if you have 3 + kids. YOu aren't talking about just buying some pens and a few notebooks, they will be buying new clothes, new shoes, new bookbag, new everything, that's just the way kids like it, and most parents will let them do it.


I am glad that they are having it this weekend, my boyfriend and I are going to Dark Knight at their IMAX Theatre. :) "

Politics as usual wrote on July 30, 2008 2:09 pm:
" Mr.Avery should admit that sales tax's are to high in Nebraska year round.If you need a "holday" from a sales tax doesn't that confirm that the sale's tax is already too high?
Will Mr.Avery introduce legislation to reduce the state's sales tax from 6.0% to say 4.0% year round or will it be just a one day holiday? If Mr.Avery is upset at seeing Nebraska cars in Iowa parking lots wouldn't his logic work in reverse? Wouldn't a reduction in Nebraska's sales tax result in more Iowa car's in Nebraska's parking lots? If it work's for a day or even a week's worth of holiday's why would a reduction benefit year round?
The cynic in me leads me to believe that A.)Mr.Avery won't introduct any legislation to reduce the state sales tax rate year round and B.) Mr.Avery will actually introduce legislation to impose a special sales tax rate authority for Nebraska's major metroploitian area's both of them (Oma & Lin) to pay for their arenas.Hope I'm wrong but stand by and watch...before it's done..Omaha and Lincoln will have "authority" to increase their sales tax's without any need for the State's legislature to approve it and much like the "new" gas tax formula it will rise automaticly and nobody will have to take responsibility for it. "

agree with Brock wrote on July 30, 2008 2:15 pm:
" Nebraska is so far behind the times!! Give us break instead of sticking it to us every chance u get.. Pass a law for all Nebraskans to pay WHEEL TAX and and the sales tax could be lowered.Seward County has lower sales tax than Lincoln, yet they don't pay wheel tax but we do. What is wrong with this picture??!!! The state senators won't pass a bill like this as they all live outside Lancaster and Douglas counties and that would mean they would have to pay the wheel tax. Who cares - they all drive on the hiways and city streets. Fair is fair!! Go for the sales tax holiday - it's the right thing to do!! "

This one stinks wrote on July 30, 2008 2:22 pm:
" RE Nebraska Sales Tax Regulation 9-005.01 states "The Tax Commissioner shall collect the sales or use tax imposed by any city concurrently with the collection of the state sales and use tax and in the same manner as the state sales and use tax is collected." If the State loses collections, the city loses collections. It is as simple as that.

Jim from Missouri, we are saying exactly the same thing. "It is up to the town if they want to have their own sales tax holiday to run concurrent with the states holiday" is the same thing as "cities are allowed to opt out of the holiday and can charge the regular sales tax during the holiday". Further, I am very glad that you as a retailer have some morals and ethics. Most retailers would take advantage of the situation as I stated before. My statement had nothing to do with whether or not you were fron Iowa, Nebraska or Missouri. My statement was directed more at the majority of retailers that would take advantage of the situation...after all they are only human, and they are trying to make a living. "

Carrie wrote on July 30, 2008 2:25 pm:
" Thanks LJS for the heads up. We don't have anything going on this weekend so it looks like we will be heading to Iowa to do some school shopping. "

Laurie wrote on July 30, 2008 2:25 pm:
" How desperate ARE people REALLY if "they will be buying new clothes, new shoes, new bookbag, new everything, that's just the way kids like it", and they're mad because the government isn't making it easier for them to buy MORE. What a bunch of crybabies. I'd support a tax holiday from paying the LPS portion of my property tax. You parents could just go have a bake sale or something. "

Jeannene Douglass wrote on July 30, 2008 2:43 pm:
" It all boils down to greed, doesn't it! "

Mike in DC wrote on July 30, 2008 3:02 pm:
" This is stupid. Most states have rules that make these holidays political smoke screen and extra admin work. This is as myopic as the idea of the federal gas tax holiday. First, crazy folks that are talking about cars and such... SLOW down. Most states, set limits, like MD $100 limit on purchases. So, goober legislative guy... why would I drive an extra 60 miles to save only about what I would save on gas by spending it at home for school items and pay the FREAKING TAXES that SUPPORT the school system! I don't see THAT MANY folks busting their butts over $5-10 ONCE A YEAR; it's merely a psychological boost not backed by real logic. Instead, let's create a system that has to decide what not to tax (usually only clothes and school/office supplies are exempt), how to process it, what forms need to be filled out... even in the digital age, does all this work may sense? Even for $20 bucks? I guess folks have SO MUCH time to waste over 2 hours of their day in extra driving roundtrip to save $10-20 per YEAR. Instead, maybe Nebraskans can NOT be sheeple. "

tim wrote on July 30, 2008 3:06 pm:
" why dont we use the iowa gas tax? better yet, use the south dakota personal property tax rate. "

Currently in Colorado wrote on July 30, 2008 3:20 pm:
" I've decided that when the world is about to come to an end, that I want to be in NE. Because in NE most (not all) things are about 30 years behind the rest of the country. "

This one stinks wrote on July 30, 2008 3:41 pm:
" RE, Nebraska Sales Tax Regulation 9-005.01 states "The Tax Commissioner shall collect the sales or use tax imposed by any city concurrently with the collection of the state sales and use tax and in the same manner as the state sales and use tax is collected." This means that anything exempted from State sales tax must also be exempted from City sales tax, the cities have no option. The cities would lose their collections with a State Sales Tax Holiday. Incidentally, this would also effect the amount available for State Aid to Cities through the Municipal Equalization Fund. Less collections, means less money available to each city. Sometimes simple "solutions" have dire unintended consequences. I do not believe that Sen. Avery has thought through all the consequences his little bill would entail.

Jim from Missouri, we are both saying the same thing. "It is up to the town if they want to have their own sales tax holiday to run concurrent with the states holiday" is saying the same thing as "cities are allowed to opt out of the holiday and can charge the regular sales tax during the holiday." You have made my point, Missouri towns have an option that Iowa and Nebraska towns do not. Further, I am glad that you are one of the moral and ethical retailers. Most would take advantage of the situation and let the State do their advertising instead of marking things down. This is not an indictment of retailers, after all they are human and they too need to make a living.

I still think the best solution is to broaden the tax base by reducing exempt items, and lowering the overall rate. We still bring in the same amount of revenue, and we bring in the customers from the surrounding States...all year long. "

HPG wrote on July 30, 2008 4:52 pm:
" In the grand scheme of things, is a $7.00 savings (at 7% sales tax) on a $100 purchase that big of a deal? If you are spending more than $100 - 150 on school clothes/supplies your kids are probably spoiled and their real focus is not on school but, on their appearance. Or shall we say they.you are shallow. Add the extra distance to drive and the extra time spent in the car/stores from all the Nebraskans in Iowa and the savings will probably wash.
Seriously people find something a bit more constructive to spend your time and energy on. "

DJ wrote on July 30, 2008 5:17 pm:
" Look folks, YOU need to pay all the taxes you can afford and then some. Just because the Democrat Elites got a "Tax Holiday" for Their personal use of gasoline,for a while in Denver (until the story was uncovered) doesn't mean You are Owed Anything. There are some that "Are Owed", and some That Ain't. You are in the latter category. You are going to pay the bill, and you better Like It. "

I wrote on July 30, 2008 7:30 pm:
" A tax free day in Nebraska? Who do they think they are kidding? There's no way, in this tax hungry state even with a surplus, that it will ever pass.
Compete with Iowa? Who would ever had thought that Iowa would be a competitor? Well, it didn't sneak up on Nebraska that's for sure. Lower taxes, more recreation, not as stubbornly, morally prudish. Non dictorial of it's residents life choices. What a great state Iowa is turning out to be. That "Good Life" motto sign at the border needs to be turned around. "

I wrote on July 30, 2008 7:43 pm:
" HPG said: "In the grand scheme of things, is a $7.00 savings (at 7% sales tax) on a $100 purchase that big of a deal? "

I say: "Yes it is! $7.00 can buy a package of 6 pairs of socks. Another item of need."

HPG says: "If you are spending more than $100 - 150 on school clothes/supplies your kids are probably spoiled and their real focus is not on school but, on their appearance."

I say: "Not true. One,kids do grow. Wearing last fall's clothes won't work this fall. Two, have you priced clothing lately or are you still wearing the leisure suit you bought in 1972? A pair of jeans, 3 shirts, shoes, undies for ONE child can easily be $75.00..even in Walmart."

HPG says: "Seriously people find something a bit more constructive to spend your time and energy on. "

I say: "My kids are worth spending my time and energy on" "

Shell game wrote on July 30, 2008 8:22 pm:
" Pay attention to the shell that has the pea underneath, last year this bill was introduce and the retail stores had to pay the sales tax on sales, but didn't have to have include the percentage on the receipt. This just another gimmick by the dead beat legislator. If they would spend an equal time to constructive legislation maybe, just maybe, we could have true tax relief. How about a day, week, or month the state and local government don't spend any monies and reduce the taxes an equal amount. Tax holiday, what a joke. "

Hamon Righ wrote on July 31, 2008 2:02 am:
" I want to know how someone can say, "In this economy I need to save money so I go yo Iowa to get the savings." and "It's more than pens and notebooks. It's new clothes, new everything."
One, save money by not buying new crap every year. Two, it's that "we need more and newer stuff even though I don't have the money" attitude that helped put the economy where it's at now.
Now, I realize that kids grow, but I see a complete overindulgence for children's wnats, not needs today. Not just today, this has been going on for 30 years now. However, it's far more expensive today. In the eighties is was $50 Pepe jeans. Today, it's the latest cell phone, $120 pairs of shorts, $600 laptops, mp3 players, and more. Do they need all this junk to get smarter or so they can feel as "cool" as those idiots on "The Hill"? Ask yourself that next time you complain about the cost of school supplies for your kids. Maybe if you tell them to suck it up oday, they'll have more for college tomorrow. "

what wrote on July 31, 2008 8:38 am:
" This is really unbelievable - To quote the above article "Avery says he’s “tired of seeing parking lots in Council Bluffs full of cars with Nebraska license plates” and that he can’t blame Nebraskans for crossing the river." Well now, havent we been saying the exact same thing about people going to the boats for about 10 years now. If the anti-everything legislature and Tom Osborne hadnt been incharge, those boats would be on this side of the river and maybe we wouldnt even have to charge people sales tax on anything in this state.

Senator Avery - what are you doing in Council Bluffs checking license plates in parking lots? You wouldnt have been accidentally been in one of those godless dens of sin owned by Ameristar or Harrahs were you??? "

Ryan wrote on July 31, 2008 8:48 am:
" I know of a sales tax holiday that would be in favor of the state - casino gambling. Quit being so self rightous and allow people to do what they want as long as they do not directly hurt anyone doing it. "

Whiny Nebraska wrote on July 31, 2008 10:32 am:
" Why are you whining about sales tax? Go visit Kansas, where you are taxed on your groceries. Yes, they actually charge tax on cookies and chips at the grocery store. What a surprise when I visited NE and paid sticker price and no taxes. "

Please wrote on July 31, 2008 11:24 am:
" Half the people that drive over to Iowa probably don't even know what the sales tax rate is that they're "saving." If they did, they wouldn't go bonkers over saving a measly $7-14 or so. You won't be buying an extra package of socks with your savings. You'll be filling up your gas tank from the ride over there! If people want to drive all the way over to Iowa to save $7, let them go! "

Nina wrote on July 31, 2008 11:50 am:
" It might help lagging vehicle sales or other large purchases that involve a chunk of sales tax, but for most of us it reminds me of the childhood mantra,"...but everybody else is doing it." Nebraska may be like a rich uncle with its cash reserve, but instead, as we've already learned, it is a stingy relative that holds the purse strings. "

Good going Nebraska wrote on July 31, 2008 1:45 pm:
" I spend a lot of money in IA at the boats now i will spend even more on this! Thanks for the heads up. I find myself asking more and more "Why do I live here?". "

SWMom wrote on July 31, 2008 4:52 pm:
" I took my kids on the yearly trip visit to family in Colorado, albiet I paid 8.5% sales tax we got some great deals!

Nebraska and lincoln tax me enough as it is. We just dont have the selection the bigger cities like Denver or Minneapolis do.

We're not dumb, we don't drive that far just to do our school shopping, we add it to our vacations. We also shop TJ Maxx and Ross Stores, not Von Mar and Dillards, but we got their brands. :-) "