Change to mandatory tractor permitting advances

Agricultural tractors of 100 horsepower or greater would be subject to a mandatory permitting process under a bill advanced from general file March 5.
Currently agricultural tractor models of 40 horsepower or more are subject to the mandatory permit. Only permitted tractors are eligible for the state’s sales tax exemption on agricultural machinery.
LB907, introduced by Holdrege Sen. Tom Carlson, would raise the minimum threshold from 40 to 100 horsepower. Carlson said the bill would have a positive impact on the state’s tractor market.
“We’re losing sales to dealers in other states because of this process,” Carlson said. “Nebraska dealers would be able to recapture sales in this market.”
Under the bill, vendors would have the option to permit tractors with less than 100 horsepower. Customers still would be able to purchase unpermitted tractors, but could not claim the agricultural machinery sales tax exemption.
Omaha Sen. Scott Price spoke in support of the bill, saying it would strengthen Nebraska businesses.
“We want to reset the relationship between farmers and vendors,” he said.
Senators advanced the bill to select file 30-0.