OMAHA, Neb. (WOWT) — Beginning next year certain retailers with no physical presence in a state, including online retailers, must collect and distribute state sales tax. Local businesses believe that will finally give them a level playing field.
There are many Internet shoppers who don’t pay Nebraska tax when they order online. There are a lot of people who avoid actual stores during the holiday, choosing to do their shopping online.
Valarie does a lot of shopping that way and she doesn’t worry if the tax is included or not. “I will go from store to store. I’ll find the sites that haven’t updated yet and don’t charge sales tax.”
The State of Nebraska wants Internet buyers to self-report the taxes they don’t pay up front. Internet customers are asked to fill out forms to pay Nebraska and local individual use tax. There is a tax table broken down by city to help you figure the tax you owe.
In Omaha, there’s a 1.5 percent local tax and a 7 percent state sales tax. Officials says it might be easier just to include your Internet sales tax owed on your state tax return – Form 1040n, Line 41 on last year’s form. This is what you need to do because state officials want you to self-report.
by John Chapman
November 8, 2018