Nebraska Releases Guide on Illegal Advertising Referring to Sales Tax

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)

Posted on April 15, 2010