Nebraska – Sale and Use Tax Regulations

SALT Report 2698 – The Nebraska Department of Revenue has revoked, amended, and adopted several sales and use tax regulations in order to conform to current State laws.

Adopted Regulations

Regulation1-110 – Claims for Refund of Sales or Use Tax

This rule provides that a person who has overpaid sales or use tax may file a claim for refund or request a hearing with the Department of Revenue.  However, a claim can only be filed by the person who made the overpayment, or their attorney, executor, administrator, or personal representative.

The Tax Commissioner is required to make a decision regarding a claim within 180 days of the filing date, unless a request for a hearing has been made, or the Commissioner and the claimant have agreed to extend the period.

Amended Regulations

Regulation 1-010 Sales and Use Tax Returns

This regulation has been amended to provide additional guidance regarding reporting periods, deficiency determinations, and penalties. For example, annual returns are required if a retailer’s yearly tax liability is less than $900, quarterly returns are required if the tax liability is $900 or more but less than $3,000, and monthly returns are required if the yearly tax liability is more than $3,000.

The statute of limitations for a deficiency determination is three years from the last day of the month following the reporting period or three years after the return was filed, whichever is later.  If no return was filed, the statute of limitations is five years.

If an understatement on a return is due to fraud or an intent to avoid paying tax, a 25% penalty equal to the amount of the understatement or $50, whichever is greater, may be assessed.

In addition, it is now a Class IV felony if:

  • A person required to collect or pay sales or use taxes willfully fails to do so,
  • A person willfully attempts to evade sales or use taxes, and
  • A person willfully assists in or advises in the preparation of the filing of a false or fraudulent return

Regulation 1-060 – Seeds and Plants

This regulation has been amended to reflect that sales of bulbs that generally constitute food for human consumption are taxable unless the sale is for use in commercial agriculture or the bulbs are purchased with funds from the Supplemental Nutrition Assistance Program.

Regulation 1-072 – United States Government and Federal Corporations

This regulation has been amended to reflect that federal corporations who are performing a federal function are exempt from sales and use tax.  However, sales by agencies and corporations of the U.S. government are taxable, but the requirement to collect and remit sales tax cannot be imposed on the agency or corporation unless permitted by federal law.

Regulation 1-077 – Combined Sales Tax Returns

This regulation has been amended to reflect that all combined returns and any payments due must be filed electronically. The returns must include all pertinent business information.

Regulation 1-087 – Food or Food Ingredients

This regulation has been amended to reflect that food products with a “Nutrient Facts” box on the label qualify as an exempt food or food ingredient.  However, the exemption does not apply to alcoholic beverages, dietary supplements, or tobacco.

Nonprofit, Religious, and Educational Organizations

Regulations 1-090, 1-091, and 1-092 for non nonprofit organizations, nonprofit religious organizations, and educational organizations have been amended to reflect that purchases made by employees or members of these organizations are taxable even if the organization will reimburse the employees or members and the purchases were made on behalf of the organization.

Revoked Regulations

Regulation1-041 – Concessionaire Sales

Regulation11-042 – Bottle Clubs

The regulations were effective July 3, 2013.

For Further Information

Nebraska Department of Revenue – Sales and Use Tax Regulations