Nebraska – 2013 Sales and Use Tax Legislative Changes

SALT Report 2870 – The Nebraska Department of Revenue issued a notice that discusses the 2013 legislative changes that affect various state taxes.  The following address changes to the sales and use tax laws.

Net Metering of Electricity

Effective October 1, 2013, LB 90 requires that a customer generator’s electricity production will be netted against their electricity consumption when determining the customer generator’s sales tax liabilities. Previously, a customer generator’s electricity sales to the utility and its purchases from the utility were considered separate transactions that were not netted for sales tax purposes.

Liquor Sales from Out-of-State Retailers

Effective September 6, 2013, LB 230 requires that any craft brewer, craft distillery, farm winery, or direct retailer shipping alcoholic beverages into Nebraska must obtain a shipper’s license from the Nebraska Liquor Control Commission and use a common carrier approved by the Liquor Control Commission. The Bill also creates several restrictions on direct shipments, including volume limits and a requirement that a responsible adult accept receipt of the alcoholic beverage.

Additionally, the Bill provides that shipping into Nebraska will create nexus for sales and use tax purposes.  Therefore, the shipper will be required to collect and remit sales tax and obtain a sales tax permit from the Nebraska Department of Revenue.

Local Sales Tax

Effective June 6, 2013, LB 104 provides that a metropolitan city may not impose a local sales tax above 1.5%.  However, a municipality other than a metropolitan city may impose a local sales tax of 1.75% or 2.0% if the rate increase is approved by at least 70% of the municipality’s governing board and by the voters residing in the municipality.

For Further Information

Nebraska Department of Revenue – LB 90

Nebraska Department of Revenue – LB 230

Nebraska Department of Revenue – LB 104