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In Nebraska, clarification is included in a new regulation. Any materials, equipment, and/or supplies used to supply pest control services are taxable. This includes contracted services as well. Pest control services are defined as those services intended to inspect for, detect, eliminate, neutralize, or control animals that infest buildings, plants, lawns, and any other property. Lawn service providers that use pest control chemicals are also liable for the collection of tax on their charges. However, if services are being performed to apply agricultural chemicals to land, crops, or animals in a commercial agriculture context, the services will not be taxable. (Reg 1-100 Pest Control Services, Sec. 77-2702.07, R.R.S. 2003, October 1, 2003)


The gross receipts on the purchases of industrial machinery or equipment, including parts for repairs,purchases made by Nebraska or its political subdivisions from another state shall not be taxable if the other state provides a similar reciprocal exemption.. The gross receipts will be on the sale, lease, rental of, storage of, use or other consumption of the machinery or equipment. (L.B. 168, Laws 2003, effective July 1, 2003)


Any labor affiliated with the sale of property to be attached to become real property by an Option 1 contractor will be taxable. The only exception would be if the attachment was purely incidental to the transfer of a building. Taxable labor charges would include "fabricating, installing, applying, assembling, and repairing building materials and fixtures annexed to real estate". It will not make a difference in the taxability of the labor if the charges are separately stated. Option 1 contractors include those contractors who have not filed a Nebraska Sales and Use Tax Election for Contractors (Form 16). (Revenue Ruling No. 1-02-07, Nebraska Department of Revenue, September 30, 2002)


As of October 1, 2002 charges by a retailer for computer software training will be subject to Nebraska sales and use tax. This will include retailers who out-sources training. Previous to October 1st there was an exemption for software training but was repealed with L.B. 1085, Laws 2002. (Revenue Ruling No. 1-02-05, Nebraska Department of Revenue, September 30, 2002)


Along with many other Nebraska taxability changes, the sales of lime, synthetic slag, refractory materials, mill rolls, and guides for use in manufacturing steel or cement are now subject to sales and use tax effective October 1, 2002. (L.B. 1085, Laws 2002, Revenue Ruling No. 1-02-12, Nebraska Department of Revenue, September 30, 2002)



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