Earlier this year, various legislators introduced no fewer than eight bills that sought to expand the sales tax base in the state of Nebraska. If any of those bills were to pass and include self-service laundry as part of their tax expansion plans, laundromat owners in that state would have become responsible for remitting revenue to the state equal to the prevailing sales tax rate in their specific areas.
However, CLA approached a number of representatives on behalf of the industry and successfully argued to keep self-service laundry on the exempt list. In fact, even after a special session of the Nebraska legislature, which was held on July 25 to further discuss the state’s sales tax issue, self-service laundry remains exempt.
Clearly, this will be a continuing battle, and CLA and its lobbyist on the ground in Nebraska will remain vigilant.
It’s also worth noting that both drycleaning and “other laundry services” (which can be taken to mean wash-dry-fold and pickup-and-delivery services) are included on the list of those services slated to lose their sales tax exemptions in Nebraska.
“Although we wish wash-dry-fold and pickup and delivery would remain exempt, CLA has taken the position here and in other states that we’re not going to the mat to protect the exemption for full-service laundry,” explained CLA President and CEO Brian Wallace. “Frankly, it’s much harder – and much more expensive – to make a convincing argument that full-service laundry remain exempt. After all, it’s collectible over the counter from consumers, it’s a non-essential service, and it’s utilized by higher income customers.”
CLA would like to sincerely thank its Strategic Corporate Allies – Alliance Laundry Systems, Cents, Dexter Laundry, and Girbau North America – whose generous support make it possible for the association to continue to strongly advocate on behalf of the laundromat industry against such legislative threats.
