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The Nebraska Department of Revenue has issued an information guide reminding retailers that Nebraska law prohibits retailers from advertising or implying in any way that the sales tax will be assumed or absorbed by the retailer or not added to the selling price. Retailer are required to pass on to their customers the full amount of the sales tax, which must be stated on the customer’s invoice and collected as an item separate and district from the sales price. Examples of prohibited language include “Tax-Free Sale”, “Pay No Sales Tax”, “Purchases Will Be Discounted By the Amount of the Sales Tax”, “Sales Tax Stimulus Sale”, “We Will Pay Your Sales Tax”, and “Tax Credit Sale”. Retailers may contact the Department prior to conducting an advertising campaign to ensure the advertisement does not violate any statuary provisions. (Information Guide 6-493-2010, Unlawful Advertisements Referring To Sales Tax, Nebraska Department of Revenue, March 22, 2010)

(04/15/2010)

On April 2, 2010, an updated sales and use tax checklist for construction contractors was released by the Nebraska Department of Revenue. The checklist describes the forms and the processes by which option 1, 2 and 3 contractors pay or collect sales tax on building materials and fixtures. The tax status of purchases by contractors of certain services and tangible personal property is also described on the checklist. (Construction Contractor Taxability Check List, Nebraska Department of Revenue, February 2010, released April 2, 2010)

(04/15/2010)

Retail sales of Web site design, development, and hosting by a Web site service provider are not subject to tax in Nebraska unless the Web site design is transferred to the customer on a tangible storage medium. If the Web site design is retained by the service provider for hosting, or electronically transferred to either a third party hosting entity or to the customer, the charges are exempt. Furthermore, Web site hosting by a service provider is not taxable because it is not one of the statutorily enumerated services subject to tax in Nebraska. (Revenue Ruling 01-10-2, Nebraska Department of Revenue, March 1, 2010)

(04/05/2010)

The Nebraska Department of Revenue has released a revenue ruling confirming that the sale or purchase of wood or corn for use as an energy source are exempt from sales and use taxes. The following conditions must be met to qualify for the exemption: 1) more than 50% of the wood or corn sold or purchased is used or directly consumed in manufacturing, processing, refining, the generation of electricity, irrigation or farming, or by any hospital, and 2) the purchaser gives the seller a completed Nebraska Energy Source Exempt Sale Certificate. Additional regulation and rules may apply. (Revenue Ruling 01-10-1, Nebraska Department of Revenue, February 22, 2010)

(04/05/2010)

The Nebraska Department of Revenue has issued a contractor taxability checklist which provides the taxability of a contractor’s purchase of services as well as materials, consumables, and equipment. In addition, the checklist gives details on how option 1, 2, and 3 contractors should pay or collect tax on building material or fixtures and which forms to use. (Construction Contractor Taxability Check List, Nebraska Department of Revenue, September 30, 2009)

(12/18/2009)

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