NE 01-76-14 Sales and Use Tax 1976-09-22

Could a Nebraska water-pollution-control facility obtain a sales-and-use-tax refund for chemicals consumed in its operation?

Short answer: No. The refund act covered approved materials and equipment incorporated into and becoming part of the pollution-control facility. Operating chemicals did not become part of the facility, so tax paid on them was not refundable.

Apply this to your situation

This page answers the general question as of 1976. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is a historical 1976 Nebraska Revenue Ruling applying the Air and Water Pollution Control Tax Refund Act. Nebraska Revenue Rulings are general guidance described by the Department as advisory but binding on it until amended. Confirm the current refund statute, agency-approval requirements, and status of this ruling before relying on it.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

Sales and use tax paid on chemicals used to operate a water-pollution-control facility was not refundable. The chemicals did not become part of the facility.

Why the refund was denied

The Air and Water Pollution Control Tax Refund Act provided a refund for materials and equipment incorporated into and becoming part of the facility after approval by the Department of Health and the Department of Environmental Control.

Operating chemicals failed the incorporation requirement. Even though they were used in the facility, they did not become part of it.

Common questions

Q: Did use in a pollution-control facility make a chemical eligible?

A: No. The material had to be incorporated into and become part of the facility.

Q: Did the ruling address machinery or permanently incorporated materials?

A: It described approved materials and equipment as covered by the act, but the specific request concerned operating chemicals.

Q: What agencies approved qualifying pollution-control materials and equipment?

A: The ruling named the Nebraska Department of Health and Department of Environmental Control.

Citations and references

Nebraska Air and Water Pollution Control Tax Refund Act — refund for approved materials and equipment incorporated into the facility
Nebraska Revenue Ruling 01-76-14 — chemicals used in operating a water-pollution-control facility

Source

Source-quality note: The source is a low-quality scan and the extracted text has OCR errors, but the refund rule and holding are legible and are the basis for this summary.

Original ruling text

Revenue Ruling 1--76-14

Sales and Use Tax

Chemicals Used in l{ater Pollution

ffiEMTCALS

S AND

USED TN THE OPER.â,TION OF WATER
POLLUTION CONTROL FACTLITIES.

Advice has been requested concerning refund of sales and use
t,ax paid on chemj-cals used in the operation of a water

pollution control facility.
The Air and, Water Pollution Control Tax Refund Act provides
for a refund of sales and use tax paid on maÈerials and
equípment which are incorporated into and become a part of
the facility, after approval by the Department of Health and
the Department of Environmental Control
Since chemicals used in the operation of a water pollution
control facílity do not become a part of the facility, sales
and use tax paid is not refundable.
APPROVED:

State Tax Commissioner
September 2L

, L976

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