SALT Report 2967 – The Nebraska Department of Revenue issued guidance that explains how a boundary change impacts a city’s sales and use taxes. Under Nebraska law, a city can only start, terminate, or change its sales and use tax rates on the first day of a calendar quarter: January 1, April 1, July 1, or October 1.
Therefore, when a boundary change occurs, the city must send the Department the following items to initiate the process:
- A certified copy of the ordinance
- A certified map of the city reflecting the area annexed or de-annexed
- A list of all retailers in the area annexed or de-annexed, and
- Information on the number of residents in the annexed or de-annexed area
After receiving the required documents, the Department will confirm the city sales and use tax effective date in the annexed area and update its website with an ordinance notice. Once this occurs, the Department will mail a letter to all retailers in the annexed area to notify them of their obligation to collect and remit the new city sales and use taxes.
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