Reprinted from powerpoint by Garry Clark, Cuming County Economic Development director.
SUSTAIN BANCROFT VILLAGE SALES TAX FAQ’S…
Which purchase will I pay a village sales tax on?
Simple Rule of Thumb: If you don’t pay sales tax on it now, you won’t pay village sales tax on it either.
Sales tax is NOT paid on: Edible Groceries, Prescriptions
Also, the village sales tax is only collected on taxable purchases made within the village limits.
Will people stop shopping in Bancroft if a village sales tax is passed?
Where do you shop? Do you consider the sales tax before making purchases in Pender, West Point, Lyons, or Norfolk? Each of these communities has a city/village sales tax of at least 1%.
How would a village sales tax affect my property tax?
Property taxes are something that few of us truly understand, but we all agree that we dislike having to pay them. However, many of the services we enjoy as a community such as streets, police and fire protection are funded through taxes on property. Since these services cost the same regardless of the number of people using them, it makes sense that the more people who contribute to the tax, the more economical these services become for each individual. As rural populations decline, the property taxes paid per household or business rise in order to maintain these essential services.
I like Bancroft the way it is, why should it change?
Personal, business, and government budgets continue to tighten. The state and federal funding that most municipalities have received in the past has dried up. Gas prices continue to rise, along with raw materials and utility costs. If this trend continues, businesses and government will not be able to provide the same services without additional income. By implementing the village sales tax everyone who shops in Bancroft will help pay the costs, not just the property owners and utility users.
Define Capital Improvements.
The term “Capital Improvements” is a general term that encompasses a wide range of projects and undertakings. Projects might include street paving, library, parks, playground equipment, sidewalks, and storm sewers.
How would passing the village sales tax affect the cost of farm equipment repair?
As The Nebraska Sales and Use Tax Regulation tend to be complex and contradictory in nature, specific questions regarding the effect of a village sales tax on big-ticket items should be addressed to your accountant for interpretation.
If the farm equipment is tax-exempt when purchased, then the labor to repair and install parts of the piece of equipment is also tax exempt to provided that the labor charges are separately itemized on the invoice. However, the parts would be taxable regardless of whether or not the equipment was tax-exempt.
How would implementing a village sales tax effect commercial agriculture operations of local farmers and feeders?
State sales tax is not currently charged as follows, nor would a city sales tax be assessed.
• Seeds that are sold exclusively for use in commercial agriculture are exempt from the sales tax. Commercial Ag also includes the commercial production in greenhouses, nurseries, tree farms, and sod farms.
• Ag chemicals such as fertilizers, anhydrous ammonia, minerals, insecticides, fungicides, rodenticides, and herbicides are exempt from sales tax.
• The sale of cattle, swine, sheep, baby chicks, turkey poults, and bees whose products ordinarily constitute food for human consumption are exempt from the sales tax. Other animals such as horses, dogs, and cats are subject to sales tax even when purchased for breeding purposes.
• Feed, ag chemicals, veterinary medicines, feed supplements, and water are exempt from the sales tax if consumed by, used on, or used in caring for animals whose products ordinarily constitute food for human consumption or whose pelts are ordinarily used for human apparel.
• The purchase of depreciable Ag machinery and equipment such as tractors, combines, and implements are exempt from sales tax if the item purchased is used in commercial Ag and the purchaser has completed a NE Resale of Exempt Sale Certificate.
Village sales tax is not collected on purchases subject to sales tax when delivery is made outside of the village limits.
Additional information can be found on Ag related questions at: www.revenue.ne.gov/legal/regs/slstaxregs.htm
Is this the right time to implement a sales tax?
Bancroft has always been a great place to live and has been supported by dedicated owners and businesses, coupled with an excellent school district. By investing in our community, we can continue to offer quality services and improve those services, such as, facilities, and resources to attract new residents and maintain our high quality of life. When we shop in West Point, Pender, and Lyons we pay to fund their projects and quality of life.
