LIBA Testimony in Support of LB 723 & LB 724

Chairman Gloor and members of the Committee:

I appear today on behalf of more than 1,300 Lincoln businesses in support of LB 723 and LB 724. LIBA believes these two proposals help to provide a more equitable approach to sales taxes for businesses that collect this important revenue on behalf of the State.

In our increasingly digital age, businesses and consumers alike have begun to rely heavily on both plastic payment and electronic options as a primary source for completing transactions. As consumers utilize non-cash payment mechanisms more often, the fees charged by banks, credit card companies, and other transaction software companies – which typically amount to a percentage of the value of each transaction – become a larger burden on businesses. Because part of each transaction processed includes funds diverted to the State as sales tax, it makes sense that the State should help cover the costs businesses spend collecting the sales tax portion of these necessary transactions. LB 723 and LB 724 help to do just that. Increasing the amount of sales tax retained by businesses will go a long way toward offsetting the costs of collection borne by Nebraska businesses on behalf of the State.

We support the concept presented in both LB 723 and 724, which works to balance the burden on businesses of collecting sales taxes that benefit of the State. On behalf of Lincoln and Nebraska businesses both large and small, we ask the committee to approve LB 723 and LB 724 and forward them to the floor for further consideration.