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The Nebraska state government has decided to cut sales and use tax for replacing and repairing farming equipment parts. The change was prompted by legislation the Legislature passed earlier this year. The bill was sponsored by Sen. Annette Dubas, of Fullerton. According to Mark McHargue, the 1st Vice President of the Nebraska Farm Bureau, your average farmer spends over $10,000 every couple years in repairs. And before now they had to pay about a 6% tax on that, depending where they lived.. "Add all of the farmers together in all of Nebraska and that's where it all really comes together in about a $10,000,000 package for Nebraska and really it couldn't come at a better time when commodity prices are down and [we're] looking for all the dollars we can get," said McHargue. The great timing doesn't just apply to the year, but what time of year it is. "Harvest season, you just have a lot of equipment in the field. You have a several hundred thousand dollar combine, you typically have a couple tractors, multiple trucks that you see driving around here," said McHargue on what farmers need every Fall. "They never break when they're sitting in the shop in the Winter time, they always break in use. When we go in and have to make those repair parts purchases it is going to make a difference to the bottom line for sure." With this decision by the Legislature, Nebraska now joins the majority of the country without these taxes. Nebraska was one of only 8 that were enforcing them. It also means that the replacement parts business will remain here in The Cornhusker State. McHargue said, "Honestly there was a lot of farmers that were going across the state line to purchase parts just because it's cheaper. Well we're going to keep those parts being purchased in Nebraska. So for our implement dealers and especially those along the borders it's really going to be beneficial because we'll keep that business in Nebraska." McHargue said without sales and use tax on these parts farmers and ranchers have a much better chance of success than before. "Farmers are producing a raw commodity, we sell at whole sale prices so to be taxed on our inputs is really a difficult thing so this is one of the items that we're going to take off the docket that probably was an unfair tax," said McHargue. He also said the next tax the Farm Bureau will try to adjust is the property tax. He said it's their biggest tax issue and they will be interested to see the turnout of the political races this year to see how to handle it in next year's legislature. http://www.nbcneb.com/home/headlines/Nebraska-Drops-Taxes-on-Farm-Equipment-Parts-278250181.html