State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Nebraska (NE)

NE Sales Tax - Name of Tax and General Application:

Nebraska imposes a tax on sales of tangible personal property and select services at the retail level in the state. This tax is known as a "sales tax". In addition, there is a tax imposed on storage, use, distribution or consumption of tangible personal property in the state where sales tax has not been paid. This tax is known as a "use tax".

NE Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Nebraska imposes nexus on having a representative, franchise, or licensee that sells or delivers tangible personal property in the state, by soliciting from state residents on a continuous or systematic basis through the media, or by benefiting from banking, financing, debt collection, or marketing activities in the state.

NE Local Tax - Do Localities Impose Tax?

Yes, Nebraska imposes local sales tax.

NE Resale Certificate Renewal Agreements:

A sale for resale is made in Nebraska when the seller gets a resale certificate from the purchaser. The resale certificate transfers liability for tax, penalties and interest from the seller to the purchaser. Sellers are required to maintain records of all resale transactions.

NE Resale Certificate Renewal Periods

A resale certificate is required for each sale and is valid only for that sale. When there is a blanket certificate, it must be renewed every three years.

NE Statute of Limitations

Later of three years from the date the return was filed or the last day of the calendar month following the tax period. Five years if no return was filed.