Nebraska Codifies Economic Nexus and Enacts Marketplace Nexus Legislation

Effective Date: April 1, 2019 (Specific Legislative enactment) January 1, 2019 (Administrative announcement based on existing law)

Threshold: $100,000 or 200 or more separate transactions

Measurement Date: Previous or current calendar year

Includable Transactions: Retail per specific legislation; Gross per Jan 2019 administrative position

When You Need to Register Once You Exceed the Threshold: The first day of the second calendar month after the threshold was exceeded

Effective April 1, 2019, Nebraska has enacted legislation with economic and marketplace nexus provisions. The legislation codifies Nebraska’s administrative position, effective January 1, 2019 and creates new requirements for marketplace facilitators. A remote seller or a multivendor marketplace platform (marketplace facilitator) is required to collect and remit Nebraska sales and use tax if it either:

  • Made or facilitated total retail sales (per specific legislation) of property or services subject to sales tax in Nebraska exceeding $100,000 in the previous or current calendar year; or
  • Made or facilitated retail sales in Nebraska in 200 or more separate transactions in the previous or current calendar year.

For purposes of calculating the threshold, remote seller should include sales they make through a multivendor marketplace platform. Note that Nebraska had previously issued guidance on July 27, 2018 indicating that remote sellers meeting an economic nexus threshold of $100,000 or 200 transactions were required to collect and remit Nebraska sales and use tax effective January 1, 2019.

Remote sellers, including multivendor marketplace platforms, must obtain a sales tax permit and begin collecting and remitting Nebraska sales tax on April 1, 2019 if they exceeded the threshold amount in 2018 or in the first two months of 2019.

Remote sellers, including multivendor marketplace platforms, who exceed the threshold in March 2019 or later in 2019 must obtain a sales tax permit and begin collecting and remitting Nebraska sales tax on or before the first day of the second calendar month after the threshold(s) are exceeded. Affected retailers will also be subject to the Local Option Revenue Act and shall collect and remit the sales tax due under the act.

A retailer that makes sales into Nebraska using a multivendor marketplace platform is not required to collect and remit Nebraska sales tax on any sales taxes collected and remitted by the multivendor marketplace platform. The retailer making sales through the platform must include all sales into Nebraska in its gross receipts in its return but may claim a credit for any sales taxes collected and remitted by the multivendor marketplace platform with respect to the retailer’s sales through the platform. The form (Form 10) will be updated prior to the April return filing date.

A multivendor marketplace platform is not required to collect and remit Nebraska sales tax if it can establish that an error was caused by insufficient or incorrect information provided by the seller. This does not apply if the multivendor marketplace platform and the seller are related parties or if the seller is also the multivendor marketplace platform operator. For additional information and FAQs, visit the Nebraska Department of Revenue webpage. (L.B. 284, Laws 2019; Notice for Remote Sellers and Marketplace facilitators, Nebraska Department of Revenue webpage)

Posted on April 8, 2019