Are sales of depositions, bills of exceptions, and transcripts prepared and sold by a court reporter subject to Nebraska sales tax?

Plain-English summary

This ruling creates a narrow exemption for court reporters. Beginning October 1, 2008, Neb. Rev. Stat. § 77-2704.58 (added by 2008 Legislative Bill 916, § 22) exempts from sales and use tax the gross receipts from selling depositions, bills of exceptions, and transcripts -- and copies of those documents -- when they are prepared and sold by a court reporter.

Who and what qualifies. The exemption is tied to the seller being a court reporter (a person who can produce a verbatim record of court and other legal proceedings, such as depositions, administrative hearings, and arbitrations). The ruling defines each covered document -- deposition (see Neb. Rev. Stat. § 25-1242), bill of exceptions, and transcript.

Key limits:

• Videotaped depositions are exempt only if prepared and sold by a court reporter. If a non-court-reporter prepares the videotape, selling it -- to a court reporter or anyone else -- is taxable.
• A court reporter's sales of all other tangible personal property stay taxable.
• If someone other than a court reporter sells depositions, bills of exceptions, or transcripts (or copies) in any tangible format, that seller must collect sales tax on the gross receipts, under Nebraska Sales and Use Tax Regulation 1-080.

What this means for you

Court reporters

Do not charge sales tax on the depositions, bills of exceptions, and transcripts (and copies) you prepare and sell on or after October 1, 2008 -- they are exempt. But keep charging tax on any other tangible personal property you sell, and on a videotaped deposition only treat it as exempt if you prepared and sold it.

Law firms and litigants buying transcripts

Transcripts, depositions, and bills of exceptions you buy directly from a court reporter should come without Nebraska sales tax. If you buy the same documents from a vendor who is not a court reporter, expect sales tax.

Non-court-reporter vendors (e.g. copy/litigation-support services)

If you sell these documents in a tangible format and you are not a court reporter, you must collect sales tax on those sales under Regulation 1-080. The exemption does not extend to you.

Common questions

Q: What documents are exempt, and who has to sell them?
A: Depositions, bills of exceptions, and transcripts (and copies), but only when prepared and sold by a court reporter, effective October 1, 2008.

Q: Are videotaped depositions exempt?
A: Only if prepared and sold by a court reporter. If a non-court-reporter prepares the videotape, its sale is taxable.

Q: What about a court reporter's other sales?
A: Sales of all tangible personal property other than the exempt documents remain taxable.

Q: I'm not a court reporter but I sell transcripts -- do I charge tax?
A: Yes. A non-court-reporter selling these documents in any tangible format must collect sales tax under Regulation 1-080.

Citations and references

• Neb. Rev. Stat. § 77-2704.58 -- exempts depositions, bills of exceptions, and transcripts (and copies) prepared and sold by a court reporter; added by Laws 2008, LB 916 § 22, effective October 1, 2008.
• Neb. Rev. Stat. § 25-1242 -- the statutory definition of a deposition.
• Nebraska Sales and Use Tax Regulation 1-080 -- requires non-court-reporters selling these documents in tangible format to collect sales tax.

Source

• Landing page: https://revenue.nebraska.gov/about/legal-information/revenue-rulings-issued-tax-commissioner
• Original PDF: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/legal/rulings/rr010805.pdf

Original ruling text

Revenue Ruling 01-08-5
October 24, 2008
TAXABILITY OF SALES BY COURT REPORTERS
Issue:
Are retail sales of depositions, bills of exceptions, and transcripts or copies of depositions, bills of
exceptions, and transcripts taxable when prepared and sold by court reporters?
Conclusion:
Beginning October 1, 2008, Neb. Rev. Stat. § 77-2704.58, pursuant to Laws 2008, LB 916 § 22,
provides that sales and use tax shall not be imposed on the gross receipts from the sale, use, or
other consumption in this state of depositions, bills of exceptions, and transcripts or copies of such
depositions, bills of exceptions, and transcripts prepared and sold by a court reporter.
Definitions:
Court Reporter – A person who possesses the knowledge, skill, and ability to produce a verbatim
record of court and other legal proceedings (for example: depositions, administrative hearings, and
arbitrations). A “verbatim record” is one which accurately reflects the spoken word and nonverbal
communication and action.
Deposition – A written declaration under oath or a videotape taken under oath in accordance
with procedures provided by law, made upon notice to the adverse party for the purpose of
enabling him or her to attend and cross‑examine, or made upon written interrogatories. See
Neb. Rev. Stat. § 25-1242.
Bill of Exceptions - A verbatim record of anything and everything said or done by anyone in the
course of trial or any other legal proceeding, any objection to the court’s proposed instructions or
to instructions tendered by any party, together with the court’s rulings thereon, and any posttrial
proceeding; amendments to the bill of exceptions, together with the court’s rulings thereon; and the
index of the bill of exceptions.
Transcript - A writing or record (original or copy) of judicial, legislative, administrative, or other
legal proceedings, including, but not limited to: pleadings upon which the case was tried; the
judgment, decree, or final order sought to be reversed, vacated, or modified; the lower court’s
memorandum opinion, if any; and other parts of the record as are necessary and material to the
assignments of error.
Analysis:
Sales of depositions, bills of exceptions, and transcripts or copies of depositions, bills of exceptions,
and transcripts prepared and sold by a court reporter are exempt from sales tax. Sales of videotaped

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

Revenue Ruling 01-08-5

October 24, 2008

Page 2 of 2

depositions are exempt only if prepared and sold by a court reporter. If a person other than a court
reporter prepares the videotape, then sales of the videotape to a court reporter or to any other party
are taxable.
Sales of all tangible personal property other than depositions, bills of exceptions, and transcripts
by court reporters remain taxable.
Any person, other than a court reporter, selling depositions, bills of exceptions, and transcripts or
copies of depositions, bills of exceptions, and transcripts in any tangible format must collect sales tax
on the gross receipts of these sales pursuant to Nebraska Sales and Use Tax Regulation 1-080.

APPROVED:

Douglas A. Ewald
Tax Commissioner
October 24, 2008