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Ezel / Tax Rulings / NE
NE 01-77-6 Sales and Use Tax 1977-07-21

Do private vendors have to charge Nebraska sales and use tax on goods delivered to people living on a federally owned military housing area?

Short answer: Yes. Sales and use tax applies to deliveries of tangible personal property by private vendors to people residing on federally owned military housing areas. Under Revenue Ruling 01-77-6, the federal Buck Act (4 U.S.C.A. section 105) makes members of the armed services liable for the state sales tax on all purchases from private vendors, regardless of where the transaction takes place. So residents of federally owned military housing who buy from private vendors -- rather than from government-operated facilities like the commissary or post/base exchange -- must pay Nebraska sales and use tax on purchases delivered to their residences.

Apply this to your situation

This page answers the general question as of 1977. Ezel answers yours, under current Nebraska tax law, with citations.

Currency note: this ruling is from 1977
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.
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

People sometimes assume that buying something delivered onto a federal military installation is beyond a state's reach. For Nebraska sales tax, this ruling says otherwise: deliveries by private vendors to residents of federally owned military housing are taxable.

The core holding: sales and use tax is to be charged and collected on deliveries of tangible personal property by private vendors to persons who reside on federally owned military housing areas.

The reasoning:

  • Nebraska imposes a sales tax on the gross receipts of retail sales of tangible personal property sold in Nebraska.
  • The federal Buck Act (4 U.S.C.A. § 105 (Supp. 1975)) provides that members of the armed services are liable for the state sales tax on all purchases from private vendors, regardless of the location of the transaction -- including purchases delivered onto a federal area.
  • Therefore, people residing on federally owned military housing areas who purchase from sources other than government-operated facilities (such as the commissary and the post or base exchange) must pay Nebraska sales and use tax on purchases delivered to their residences.

The dividing line is who you buy from: purchases from the on-base government facilities are treated differently from purchases from private vendors, which are taxable even when delivered on base.

What this means for you

Retailers and delivery businesses serving a military base

Do not waive Nebraska sales tax just because the delivery address is inside a federally owned military housing area. Under the Buck Act, your sales to service members and other residents there are taxable the same as any other Nebraska retail sale, so charge and collect the tax.

Service members and military-housing residents

Expect Nebraska sales and use tax on goods you buy from private, off-base vendors, even when they are delivered to your on-base residence. The tax-free channel is the government-operated commissary and post/base exchange, not private retailers.

Accountants and tax professionals

The ruling rests on the Buck Act's authorization for states to tax sales to persons on federal areas. It distinguishes government-operated facilities (commissary, exchange) from private vendors. Because it dates to 1977 and cites the Buck Act as it stood then, confirm the current federal and Nebraska authorities before relying on it.

Common questions

Q: Are deliveries to on-base military housing subject to Nebraska sales tax?
A: Yes, when the seller is a private vendor. The Buck Act makes service members liable for state sales tax on purchases from private vendors regardless of where the transaction occurs.

Q: Does it matter who I buy from?
A: Yes. Purchases from private vendors are taxable. Purchases from government-operated facilities such as the commissary or post/base exchange are the exception.

Q: What is the Buck Act?
A: A federal law (4 U.S.C.A. § 105) that lets states impose sales and use tax on transactions occurring on federal areas, including purchases by service members from private vendors.

Q: Can I rely on this 1977 ruling today?
A: It states the Department's position and is "binding on the Nebraska Department of Revenue until amended," but it is decades old. Verify current law and consult a Nebraska tax professional.

Citations and references

  • Nebraska Revenue Ruling 01-77-6, "Sales and Use Tax -- Home Deliveries to Persons Residing on Federally Owned Military Housing Areas" (Nebraska Department of Revenue, issued July 1977; approved by the State Tax Commissioner).
  • Buck Act, 4 U.S.C.A. § 105 (Supp. 1975) -- service members liable for state sales tax on purchases from private vendors regardless of the location of the transaction.
  • Nebraska sales tax on the gross receipts of retail sales of tangible personal property in Nebraska (Nebraska Revenue Act of 1967, as amended).

Source

Source-quality note: This ruling survives only as a low-quality scan, and the machine-extracted text below has minor OCR artifacts (garbled headings and signature block). The holding, the Buck Act citation (4 U.S.C.A. § 105), and the government-facility-versus-private-vendor distinction are legible and are the basis for this summary.

Original ruling text

Revenue Ruling L-77'6

Sales and U e - Home Delíveries to Persons Resi
us

as.

on

IS
TO PERSONS WHO RESI DE

ON FEDERAIJLY OWNED MILITARY HOUSING AREAS '

Ad,vice has been requested as to whether or not sales and use
tax is to be charged and collected on deliveries of tangible
personal property by private vendors to persons residing on
federally owned military housing areas.

A sales tax is imposed upon the gross receipts of sales of
tangible personal property sold at retail in Nebraska. The
Buck Act, 4 USCA Section 105 (Supp. 1975) provides that
members of tFarmed services are liable for payment of the
State sales tax on all purchases from prívate vendors regardless of the location of the transaction.
Persons resid,ing on federally owned military housing
areas, who purchase from sources other than government
operated facilities such as the commissary and post or base
exchange, must pay sales and use tax on purchases delivered

to their resíd,ences.

APPRO\iiED:

am

e

s

State Tax Commissíoner

rury Al

, L977

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