Current through September 17, 2024
065.01 Intrastate telephone communication
service and telegraph service, mobile telecommunications service, wireless
paging service, and wireless radio service are taxable whether furnished by
public or private corporations or enterprises. This includes those services
which are sold by mutual companies.
065.01A
Intrastate telephone communications services which are taxable include mobile
telecommunications services, ancillary services, except for conference bridging
services, and intrastate telecommunications services, except for value-added
nonvoice data service, wireless paging service, wireless radio service, and the
gross receipts from coin-operated telephones, 800 service, and 900 service,
when the receipts are for intrastate service.
065.01A(1) Mobile telecommunications services
are intrastate if the service originates and terminates in the same state. If
the customer has a place of primary use in Nebraska, intrastate
telecommunications services are taxable in Nebraska.
065.01B Charges made to hotels, motels,
similar lodging accommodations, or any other company by telephone communication
service companies for telephone communication service, including telephone
communication service that may be rebilled by the telephone communication
service company customer to another party, are taxable. (
Reg-1-046,
Hotels, Lodgings, and Accommodations)
065.01C Sales of telephone directories or
directory covers to Nebraska customers by telephone service providers are
taxable.
065.01D Gross receipts
does not include any surcharges imposed under the Emergency Telephone
Communications Systems Act, the Enhanced Wireless 911 Services Act, the
Telecommunications Relay System Act, the Nebraska Telecommunications Universal
Service Fund Act, or payments between telephone service providers, as defined
in federal law, for division of revenue, settlements, carrier access charges,
or provision of telephone communication service.
065.01E Gross receipts includes the sale of a
prepaid calling service, but does not include the payments to a telephone
service provider attributable to services rendered using a prepaid calling
service. A prepaid calling service means the right to exclusively purchase
telecommunications service that is paid for in advance that enables the
origination of calls using an access number or authorization code, whether
manually or electronically dialed, and whether delivered wireless or
wireline.
065.01F When the
purchaser is not using any portion of the purchased telephone communication
services, the services may be purchased for resale.
065.02 The tax on intrastate long distance
charges is computed on the gross amount of the total charge for long distance,
less any interstate telephone and telegram charges. The amount of the tax
computed on the intrastate long distance charges must be indicated separately
on the billing statement. The federal telecommunications excise tax, the
Nebraska 911 service surcharge, the enhanced wireless 911 service surcharge,
the Nebraska telecommunications relay system surcharge, and the Nebraska
Universal Service Fund surcharge are excluded from gross receipts for purposes
of computing the sales tax.
065.02A The tax
on intrastate telephone communication service, whether on a flat or measured
basis, is computed on the total amount billed by the telephone service provider
for this service.
065.02B Telegrams
charged to the account of a telephone subscriber and billed by the telephone
service provider must include the tax as computed by the telegraph company and
must appear on the billing statement in an amount equal to the regular charge
for the telegrams plus the sales tax. The tax on these telegrams must be
remitted by the telegraph company.
065.02C Intrastate long distance calls
provided by a different service provider that are charged to the account of a
telephone subscriber and billed by the telephone company must include the tax
as computed by the telephone company and must appear on the billing statement
in an amount equal to the regular charge for the phone call plus the sales tax.
The tax on these telephone calls must be remitted by the telephone
company.
065.03 Any
company furnishing telephone communication service or telegraph service is
required to bill the sales tax to the customer. A retailer of bundled
transactions that include any telecommunications services, ancillary services,
Internet access, or audio or video programming services may identify in its
books and records the sales price of any nontaxable products and collect and
remit tax on only the sales price of the taxable products in the bundle. If the
price attributable to the nontaxable products is not reasonably identifiable
and verifiable, the entire charge for the bundled transaction is taxable. (
Reg-1-108,
Bundled Transactions)
065.04
Persons engaged in providing telecommunications services are the consumers of
materials, supplies, and other items that they use in providing their services
and they must pay the sales and use tax on their purchases.
065.05 Charges made by a telephone company to
the customer for nonrecurring telecommunications charges, such as
installations, service connections, move and change charges, service upgrades,
optional features like call waiting or voice mail, and construction costs
constitute gross receipts for telephone communication service and are
taxable.
065.06 All interstate long
distance charges are exempt from the sales tax, as are gross receipts from
coin-operated telephones that are for interstate long distance
services.
065.07 Services rendered
to the United States government and to federal agencies and instrumentalities,
including those federal corporations listed in
Reg-1-072,
United States Government and Federal Corporations, are exempt. Sales to
purchasers listed in Reg-1-012.02C are exempt.
