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Exemption for clinics vetoed

By Martha Stoddard
WORLD-HERALD BUREAU

LINCOLN - Gov. Dave Heineman vetoed a bill Monday that would provide a sales tax exemption for nonprofit health clinics, starting in three years.

But whether those clinics will have to continue paying sales taxes remains to be seen.

Some lawmakers argued Monday that the same measure, Legislative Bill 420, became law after the Legislature passed it last year. They said it became law when the governor had not signed or vetoed it within five days of its passage.

The majority disagreed. They said the Legislature acted within its authority when it asked for the bill back from the governor before he took action.

The request was made after Heineman made it clear he would only sign one sales tax exemption bill.

Lawmakers opted for a bill granting tax exemptions to investors in wind energy.

The Legislature passed LB 420 for the second time Monday morning after delaying its effective date to July 1, 2013.

It was the delayed implementation that the governor objected to. In a letter to senators, he called that "the oldest legislative trick possible." He said the bill should be passed when it can fit within the state budget.

If those who argue the bill passed last year are correct, the state may still have to grant the exemption. It would take a court challenge to sort out the issue.


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