Nebraska State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Nebraska, with full citations and the original source on every page.
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If a financial institution in a Nebraska unitary group earns LB 775 credits but files no income tax return, can the group still use those credits to cut its corporate income tax and get sales/use tax refunds?
Yes. Under Revenue Ruling 29-87-10, credits earned under the Employment and Investment Growth Act by a financial institution that is a member of a unitary group may be used to reduce the corporate inc…
When a company counts new full-time employees to qualify for Nebraska's LB 775 (Employment and Investment Growth Act) tax incentives, how many hours does a salaried worker count for?
A salaried employee is counted using the number of hours the employer has established as the regular workweek for a full-time hourly employee. Under Revenue Ruling 29-87-4, a salaried worker is treate…
Will the Nebraska Tax Commissioner agree to change the required employment and investment levels in a signed LB 775 agreement?
Only in two narrow situations. Under Revenue Ruling 29-87-3, an Employment and Investment Growth Act agreement will only be amended as set out in the ruling. The Act does not specifically prohibit ame…
When is tangible personal property treated as 'invested' for Nebraska's LB 775 incentives -- at order, delivery, or when it is actually put to use?
When the property is placed in service or incorporated into real-estate improvements. Under Revenue Ruling 29-87-2, for the Employment and Investment Growth Act investment has occurred when tangible p…
For Nebraska's LB 775 incentives, what counts toward the 'original cost' of qualified property I buy and install -- just the purchase price, or also freight, interest, and my own workers' installation labor?
It is the purchase price plus the other placing-in-service costs you capitalize federally. Under Revenue Ruling 29-87-1, for the Employment and Investment Growth Act the 'original cost' of qualified p…
When a Nebraska unitary business group includes an S corporation, how is the group's income apportioned, who files which return, and how are the S corporation's shareholders taxed?
The S corporation and the other corporations in a unitary group all use the same apportionment formula. Under Revenue Ruling 24-87-1, the apportionment factors are computed for the entire unitary grou…
Does a trust or estate that owed federal alternative minimum tax for 1986 have to recompute that AMT for its Nebraska fiduciary income tax return, and how?
Yes. A trust or estate that had to compute the alternative minimum tax on its 1986 federal fiduciary return (Federal Form 6251) must recompute that AMT for Nebraska purposes. Under Revenue Ruling 23-8…
If an individual repays income they earlier reported under a 'claim of right' and uses the federal section 1341 special tax computation, does Nebraska use that same section 1341 result for its income tax?
Yes. If a taxpayer computes federal income tax under Internal Revenue Code section 1341 -- the special rule for a taxpayer who repays a substantial amount (over $3,000) that was earlier received and r…
Does the National Enquirer qualify as a tax-exempt 'newspaper' so its sales are exempt from Nebraska sales and use tax?
Yes. The National Enquirer qualifies as an exempt newspaper for Nebraska sales and use tax. Under the Nebraska Revenue Act of 1967, as amended, a publication is an exempt newspaper if it is published …
In a Nebraska motor-vehicle sublease chain, whose sales-tax election controls when the vehicle's owner has not elected to pay tax on the vehicle's cost but the intermediate lessor has?
The lessor's election governs. Under Revenue Ruling 01-78-15, when a vehicle owner rents or leases a motor vehicle to a lessor solely for re-lease to a lessee, and the owner has NOT elected to pay sal…
Is a company that provides chemical (portable) toilets to customers renting tangible personal property, so its charges are subject to Nebraska sales and use tax?
Yes. Providing chemical toilets is a rental or lease of tangible personal property that is subject to Nebraska sales and use tax. Under Revenue Ruling 01-78-12, chemical toilets are tangible personal …
Are a moving company's charges for packing taxable, and does the mover owe tax on the boxes, wrapping paper, and tape it uses?
A moving company's packing and moving charges are a nontaxable service, so the mover does not charge sales tax on its total service charge. But the mover owes Nebraska sales or use tax on the boxes, c…
Are admission charges and food and drink sales on a Missouri River riverboat cruise subject to Nebraska sales and use tax, and how is the Nebraska share determined?
Admissions collected in Nebraska and charges for food and drink made on the Nebraska side of the Missouri River are subject to Nebraska sales and use tax. Under Revenue Ruling 01-77-7, riverboat board…
Do private vendors have to charge Nebraska sales and use tax on goods delivered to people living on a federally owned military housing area?
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 Bu…
Does a Nebraska golf course have to charge sales and use tax on fees for cleaning and storing customers' golf equipment?
No. A golf course operator's charges for cleaning and storing golf equipment are not subject to Nebraska sales and use tax. Under Revenue Ruling 01-77-11, cleaning golf equipment and storing equipment…
When a reservation Indian and a non-Indian jointly own and register a motor vehicle on a Nebraska Indian reservation, is any Nebraska sales and use tax due?
Sales and use tax is due, but only on the non-Indian owner's share. Under Revenue Ruling 01-76-27, when a motor vehicle registered on a Nebraska Indian reservation is owned by a reservation Indian and…
Can an employer rent motel rooms for its employees free of Nebraska sales and use tax when it just pays a daily rate with no 30-day contract?
No. An employer that rents motel rooms for employee use at a daily rate, with no oral or written contract guaranteeing a minimum room rental for at least 30 days, must pay Nebraska sales and use tax o…
Did Nebraska's statutory deadline for tax-refund claims apply to reservation Indians?
Yes. A reservation Indian seeking a refund of erroneously paid state tax had to file within the period set by the applicable tax law. The Department or other taxing authority could not consider a clai…
How did Nebraska treat an Indian tribal council for state-tax purposes?
A tribal council received the same state-tax treatment as a reservation Indian when it consisted of reservation Indians and was chartered as the ruling body of a federally recognized American Indian t…
Who qualified as a reservation Indian for purposes of Nebraska's state-tax exemption?
A reservation Indian was a person who met Revenue Ruling 99-76-1's definition of an Indian and resided on a Nebraska Indian reservation as defined in Revenue Ruling 99-76-2. Both status and residence …
Who does Nebraska consider to be an 'Indian' for purposes of exemption from state taxation?
For purposes of exemption from Nebraska state taxation, an 'Indian' is a person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe. R…
Could a Nebraska water-pollution-control facility obtain a sales-and-use-tax refund for chemicals consumed in its operation?
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 …
Was steam heat sold through a closed system subject to Nebraska sales and use tax?
No. When a utility piped steam through a customer's heating system and the condensed water returned to the utility, the transaction transferred heat rather than tangible personal property, and steam h…
How did Nebraska sales tax apply when a carpet dealer bought samples for display and later sold the obsolete samples?
The dealer owed sales or use tax on the samples' purchase cost because they were used to promote carpet sales, not bought for resale. If the dealer later sold obsolete samples at retail, it also had t…
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These are official tax letter rulings and advisory opinions issued by Nebraska's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.