Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 316 - NEBRASKA DEPARTMENT OF REVENUE
Chapter 1 - SALES AND USE TAX REGULATIONS
Section 316-1-082 - LABOR CHARGES
Universal Citation: 316 NE Admin Rules and Regs ch 1 ยง 082
Current through March 20, 2024
082.01 INTRODUCTION
082.01A Labor charges relating to tangible
personal property will generally fall into one of four categories: production,
assembly, repair, and installation. Labor on annexed property, fixtures, or
real estate is contractor labor and is generally exempt .(See
Reg-1-017,
Contractors)
082.02 TYPES OF LABOR CHARGES
082.02A PRODUCTION
LABOR. Production labor is labor used for producing, fabricating, processing,
printing, or imprinting tangible personal property for consumers during which
the tangible personal property is created, transformed, or reduced to a
different state, quality, form, property, or thing. Transformation may occur by
hand, machine, art, chemical action, or natural means. The property may be
furnished by the person performing the labor; furnished directly by the
consumer; or furnished indirectly through the consumer arranging for delivery
of the property by a third party.
082.02B ASSEMBLY LABOR. Assembly labor is the
labor involved in collecting or gathering together the various parts and
placing them in their proper relationship to each other to constitute a piece
of machinery, equipment, or other tangible personal property.
082.02C REPAIR LABOR. Repair labor is defined
as the labor involved in restoring to essentially its original form and
condition or replacing a used, worn, or damaged item of tangible personal
property. Repair labor includes replacing a component or subassembly of an item
with a substantially similar component or subassembly. Repair labor does not
include making repair parts for another person who is making the
repair.
082.02D INSTALLATION LABOR.
Installation labor is defined as the labor involved in placing a piece of
machinery, equipment, or other tangible personal property that is already
assembled in a position where it will reasonably accomplish the purposes for
which it was intended.
082.03 TAXABILITY OF LABOR CHARGES
082.03A Charges for production and assembly
labor are taxable.
082.03B Charges
for installation and repair labor are taxable when the item of property being
installed, repaired, or replaced is taxable and is not annexed to real
property.
082.03C Charges for labor
to repair motor vehicles are not taxable.
082.03C(1) Charges for painting of motor
vehicles, including labor, are taxable.
082.03C(2) Charges for labor to install
accessories or add-ons to motor vehicles are taxable.
082.04 STATEMENT ON SALES INVOICE
Taxable charges for labor performed on tangible personal property are taxable regardless of whether they are separately stated on the same sales invoice or are separately invoiced. Charges for otherwise exempt labor performed on tangible personal property are not taxable; provided, these charges are separately stated on the same sales invoice or are separately invoiced, and such separate statement is not used as a means of avoiding the imposition of the tax upon the actual sales price of the tangible personal property.
Disclaimer: These regulations may not be the most recent version. Nebraska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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