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Nebraska - Sales and Use Tax Exemptions and Exemption Certificates
Nebraska sales tax is imposed upon the gross receipts from all sales, leases, rentals, installation, application, repair, or maintenance of tangible personal property and certain enumerated services. (Neb. Rev.Stat §77-2703(1))

NEBRASKA EXEMPTIONS: Nebraska exempt sales can be divided into four groups as:

  • Nebraska Seller-based Exemptions: Meals served to students by schools, student organizations, or parent-teacher associations during the regular school day; Concession sales of food by elementary and secondary schools at events, admissions charged by schools, student organizations, or parent-teacher associations; Meals sold by churches at church functions; Admissions charged or meals sold at political fund-raising events by ballot question committees, candidate committees, independent committees, and political party committees; occasional sales; Admissions charged or meals sold at political fund-raising events by ballot question committees, candidate committees, independent committees, and political party committees. (Regulation 1-012.02A)

  • Nebraska Buyer-based Exemptions: The United States government and its agencies; organizations created exclusively for religious purposes; non profit organizations; public and private educational institutions; governmental units (Reg-1-093); United States Government and Federal Corporations (Reg-1-072); the Nebraska investment finance authority; the small business development authority. (Regulation 1-012.02C)

  • Nebraska Product-based Exemptions: Aircraft fuels; Motor vehicle fuels; prescribed medicines, insulin (Reg-1-050); animals ordinarily used as food for human consumption, (Reg-1-062); hotels, lodgings, and accommodations (Reg-1-046); Laundries and Dry Cleaners (Reg-1-048); Motor vehicle purchased with funds contributed by the Veterans Administration of the United States (Reg-1-020); railroad rolling stock and replacement parts, (Reg-1-068); Nebraska lottery tickets. (Regulation 1-012.02B)

  • Nebraska Use-based Exemptions: property purchased to be resold prior to the use of such property; property which will be incorporated as an ingredient or component part of an item to be sold; fabrication labor on property that will be resold; property and fabrication labor on materials delivered outside Nebraska; water for the care of or consumption by animals and humans; seeds and annual plants for agricultural purposes; diesel fuel and compressed fuel; agriculture chemicals, containers (Reg-1-043); energy source utility (Reg-1-089); Water purchased for irrigation of agricultural lands and manufacturing purposes (Reg-1-066); Common and Contract Carrier Vehicles (Reg-1-069); municipally-owned public transportation system; aircraft and related services; oxygen for human use, prosthetic devices, durable medical equipment, mobility enhancing equipment (Reg-1-050); personal property containing for rebroadcast by a radio/television station to the general public (Reg-1-045); animal specialty services (Reg-1-102); materials used in the manufacture, installation, construction, repair, or replacement of qualified community-based energy development. (Regulation 1-012.02D)

CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

NEBRASKA EXEMPTION CERTIFICATES: The burden of proving that a sale of tangible personal property is subject to sales tax is an exempt transaction is upon the retailer, unless the purchaser provides the retailer a certificate to the effect that the purchase is by an exempt organization, for an exempt purpose, pursuant to a Direct Payment Permit, or a certificate of exemption for direct mail. (Regulation 1-070)

Product based exemptions and seller based exemptions do not need to be supported by exemption certificates, provided the retailer records clearly show the nature of the retailer and the property being sold. Exemptions based on the buyer or based on the buyer's intended use of the item sold must be supported by exemption certificates or other suitable documentation. (Regulation 1-014)

 
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