Habitat for Humanity Seeks Sales Tax Exemption
On average, Nebraska affiliates pay about $2,200 on sales tax per home built. Based on the number of homes built in 2007, the amount that would be exempted each year would be approximately $100,000.
Since the mid 1980s, Nebraska Habitat for Humanity affiliates have served economically disadvantaged families in need of housing. In that time, over 400 homes have been built in partnership with families in need, and then sold to the families at the cost to build and with no interest loans. Currently, Nebraska has 18 Habitat affiliates across the state from Omaha to Scottsbluff.
Although most of the state's Habitat affiliates are led solely by volunteers, a few have Executive Directors that lead the volunteer operations. In October, the state's Executive Directors held a meeting in Omaha at which the idea of sales tax exemption was discussed.
"This is exciting,” commented Margaret Stamp about the exemption proposal. Stamp serves as the Executive Director for the Sarpy County affiliate, which struggles with some of the highest land costs in the state. “If this bill becomes law we will be able to help more economically disadvantaged families achieve the dream of home ownership.”
Dana Jelinek, Executive Director of the Grand Island affiliate added, “Any way we can cut our costs and help more families into homes that they wouldn’t otherwise be able to afford is a plus for us.”
Several states across the nation exempt Habitat for Humanity affiliates from paying sales tax. The trend is growing with many affiliates currently addressing their state legislatures about the topic. Iowa passed a similar law in May of 2005.
Habitat for Humanity relies on volunteers and financial support from the communities in which they serve. They do not get direct funding from the government or government grants, but instead have traditionally depended on grass root support.