Nebraska Updates Guidance on Prohibited Sales Tax Advertising Practices

The Nebraska Department of Revenue (DOR) has provided updated guidance on unlawful advertisements referring to sales tax. Per the DOR’s guidance, retailers may not advertise or imply that they will pay, assume, or absorb the sales tax for their customers, or that sales tax will not be added to the selling price.

The DOR provided examples of prohibited language that should not appear in any advertisement. Examples include:

• “Tax-Free Sale”
• “Pay No Sales Tax”
• “Purchases Will Be Discounted by the Amount of the Sales Tax”
• “Sales Tax Stimulus Sale”
• “Receive A Discount Equal to the Sales Tax”
• “We Will Pay Your Sales Tax”
• “Tax Credit Sale”

Retailers are required by law to pass on to their customers the full amount of the sales tax in a retail sale. The sales tax must be collected as an item separate and distinct from the selling price. Retailers are required to state on the customer’s invoice the amount of the sales tax.

Nebraska retailers are required to follow the above guidance from the DOR in order to comply with the law. Per the guidance, retailers may contact the DOR prior to conducting an advertising campaign to ensure that the proposed language does not violate statutory provisions. (Information Guide, Nebraska Department of Revenue, December 9, 2024)