Current through March 20, 2024
092.01 The following
educational institutions are exempt from payment of the Nebraska sales and use
tax after the institution has applied for and received a Nebraska Exempt
Organization Certificate of Exemption from the Nebraska Department of Revenue
(Department):
092.01A A Nebraska public
elementary or secondary school, or school district;
092.01B A nonprofit Nebraska private
elementary or secondary educational institution established under Chapter 79,
article 16;
092.01C A Nebraska
community college, established under Chapter 85, Article 15;
092.01D A Nebraska educational service unit,
established under the Educational Service Units Act, Chapter 79, Article
12;
092.01E A Nebraska learning
community established under Chapter 79, Article 21;
092.01F The Nebraska Center for the Education
of Children who are Blind or Visually Impaired, established by Neb. Rev. Stat.
§
79-11,109;
092.01G The Nebraska State College System,
established under Chapter 85, Article 3;
092.01H The University of Nebraska System,
established under Chapter 85, Article 1;
092.01I A nonprofit, private, regionally or
nationally accredited college or university with its primary campus located in
Nebraska that is authorized under the Postsecondary Institution Act, Chapter
85, Article 24; and
092.01J A
conference or other organization, if all the members of the conference or
organization are exempt from payment of the Nebraska sales and use
tax.
092.02 Schools and
other educational institutions not listed in Reg-1-092.01 are not exempt and
must pay the sales and use tax. These include, but are not limited to:
092.02A Home schools, other Rule 12 and Rule
13 schools, and all other educational institutions not subject to state
approval or accreditation;
092.02B
Schools, colleges, or universities from another state.
092.03 The educational institution seeking
exemption from payment of sales and use tax must complete a Nebraska Exemption
Application for Sales and Use Tax, Form 4, accompanied by the necessary
supporting documentation. In those instances where approval or accreditation is
a requirement for an educational institution, the Department of Education may
be contacted. Educational institutions approved for exemption from payment of
sales and use tax are issued an Exempt Organization Certificate of Exemption.
This certificate assigns the institution an exemption number (05-XXXXXXX) which
must be used in claiming its exemption.
092.04 The educational institution must give
its seller a Nebraska Resale or Exempt Sale Certificate, Form 13, as proof of
its exempt status. Section B of this certificate, or an approved substitute
form, must be completed in accordance with
Reg-1-014,
Exempt Sale Certificate.
092.05
Only the educational institution that has been issued a Nebraska Exempt
Organization Certificate of Exemption may make purchases to be used by and for
the purposes of the educational institution without payment of sales or use
tax. Affiliated or subsidiary organizations, including student organizations or
parent-teacher-student organizations, cannot make tax exempt purchases using an
exempt educational institution's certificate of exemption, even if they are
operating in support of or under the guidance of the educational institution.
092.05A The sales and use tax exemption does
not extend to a person purchasing property or services to be given or donated
to an exempt educational institution. For these purchases to be tax exempt, the
person must donate the funds to the educational institution, and the
educational institution must make the purchase. Any person who removes property
from inventory that was originally purchased sales tax exempt with a resale
certificate, and donates the property to an exempt educational institution,
must remit use tax on the property donated. (
Reg-1-035,
Consumption of Untaxed Property)
092.05B An exempt educational institution
engaging in a construction or repair project will receive the benefit of its
tax exempt status by issuing the contractor a Purchasing Agent Appointment,
Form 17, and complying with the provisions of
Reg-1-017,
Contractors. If the exempt nonprofit educational institution does not issue the
contractor a Purchasing Agent Appointment, Form 17, prior to the building
materials being annexed to real estate, the exempt nonprofit educational
institution may apply to the Department for a refund of any sales or use tax
paid by the contractor on building materials annexed to real estate in the
project.
092.05C When a private,
nonprofit, postsecondary educational institution is engaging in a construction
or repair project, it must be regionally or nationally accredited with its
primary campus physically located in Nebraska to be exempt from sales and use
tax. But, if it was not accredited or located in Nebraska at the time of the
purchase, the private, nonprofit, postsecondary educational institution must
pay sales tax or remit use tax, and cannot issue either a Purchasing Agent
Appointment, Form 17, or a Resale or Exempt Sale Certificate, Form 13, to any
contractor relating to purchases of building materials for construction or
repair performed before approval or accreditation. When the private, nonprofit,
postsecondary educational institution becomes accredited and located in
Nebraska upon completion of the project, it may apply for a refund of the sales
tax paid or collected, or the use tax remitted by any contractor on building
materials necessary to open the facility and qualify for the approval or
accreditation.
092.05D A private,
nonprofit, postsecondary educational institution required to be accredited and
with its primary campus physically located in Nebraska to be exempt from sales
and use tax, but that is not accredited or located in Nebraska at the time of
the purchase, cannot make tax exempt purchases. When the educational
institution becomes accredited and located in Nebraska upon completion of the
project, it may apply for a refund of the sales or use tax paid on the
equipment, furnishings, or supplies necessary to open the facility and qualify
for the license or certification.
092.05E When a private, nonprofit,
postsecondary educational institution is required to be accredited to be exempt
from sales and use tax, the educational institution may only make tax exempt
purchases during the time that any required accreditation is valid.
092.06 An educational institution
is required to collect sales tax on sales of property made by the educational
institution except for:
092.06A Admissions
charged by elementary or secondary schools;
092.06B Admissions charged by school
districts, student organizations, or parent-teacher associations to an event or
activity held in an elementary or secondary school during the regular school
day, or at an approved function of the school;
092.06C Prepared food, soft drinks, and
candy, served during the regular school day or at school functions, sold by;
092.06C(1) An elementary or secondary school
or school district;
092.06C(2) A
student organization or parent-teacher association of an elementary or
secondary school; or
092.06C(3) An
institution of higher education, public or private, but only if the sale is
made at a facility or event that is not open to the public.
092.06D Concession sales of
prepared food, soft drinks, and candy by elementary and secondary schools at
events including those open to the public;
092.06E Sales by parent-booster clubs,
parent-teacher associations, parent-teacher-student associations, or
school-operated stores approved by elementary or secondary schools, if the
proceeds are used to support school activities or the school itself;
or
092.06F Occasional rental of
rooms or accommodations regularly used to house students in dormitories or
facilities operated by an educational institution established under Chapter 79
or 85 of the Nebraska Revised Statutes.
092.06G For purposes of the exemptions in
subsections
092.06A through
092.06F:
092.06G(1) Schools include both public and
private elementary and secondary schools; and
092.06G(2) Schools and school districts
include organizations of schools and school districts, acting on behalf of its
members in carrying out school events, activities, or functions.
092.07 An educational
institution making sales of property or services subject to sales tax must
apply for a Nebraska Sales Tax Permit using a Nebraska Tax Application, Form 20
and collect sales tax on the gross receipts from these sales.
092.08 Any educational institution may
purchase property for resale without paying sales tax if it issues a Nebraska
Resale or Exempt Sale Certificate, Form 13, section A, to its seller. This
certificate, or an approved substitute form, must be issued in accordance with
Reg-1-013,
Sale for Resale-Resale Certificate.
092.09 Purchases by employees of the
educational institution, or members of parent-booster clubs, parent-teacher
associations, or parent-student-teacher associations, using their own funds are
subject to sales or use tax, even if the purchases are made on behalf of the
educational institution, and even if the educational institution will be
reimbursing the employees or members for expenses incurred, including purchases
of prepared food and lodging.
Neb. Rev. Stat. §§
77-2704.10,
77-2704.12,
77-2704.15,
77-2704.24
and
77-2704.25.
July 3, 2013.
