Imagine having to hand over 7.5 percent of your gross sales to your state government – without being able to recoup this tax from your customers.
That’s the dire possibility self-service laundry owners in Nebraska are currently facing.
Like most states, Nebraska exempts vended laundries from collecting sales tax. However, various competing tax reform bills have been introduced to the Nebraska legislature, which would broaden the sales tax base to include presently exempt industries – including self-serve laundry.
In particular, LB452 and LB563 would eliminate the laundry exemption. This could mean that all laundry owners would be required to remit 7.5 percent of their gross sales to the state each year, costing the average store operator approximately $7,500 to $15,000 per year.
As with most states, these bills are aimed at broadening the sales tax base by eliminating all of the exemptions on a wholesale basis – as opposed to singling out laundromats. The net effect is the same, with laundry owners having to pay what amounts to be a gross receipts tax.
The Coin Laundry Association’s legislative monitoring service alerted the association to this threat – and, upon learning that the legislation had gained some momentum, the CLA engaged a lobbyist to protect the sales tax exemption for Nebraska laundry owners. In fact, lobbyists are now reaching out to key committee members and the leadership within the Nebraska legislature to build the case for laundromats to remain exempt from such sales tax.
Interested in helping this important cause?
As self-service laundry owners, there is strength in numbers. The most immediate need is fundraising. Lobbyists require a substantial investment. To all laundry owners who find themselves at risk of being hit with this potentially crippling tax, the CLA is asking for a contribution of at least $500 for each laundry you own. This is a wise investment when you consider that the sales tax will cost the average laundry owner at least $7,500 to $15,000 per year – every year.
To donate, make out a check to the Coin Laundry Association, noting “Nebraska Sales Tax.” Or, visit coinlaundry.org/advocacy/stop-laundry-tax to make your contribution via credit card online. Donations of this sort are not tax-deductible.
