Current through September 17, 2024
094.01 For the purposes of this regulation,
the following definitions will be used.
094.01A Agricultural machinery and equipment
shall mean tangible personal property that is used directly in the cultivating
or harvesting of a crop, the raising or caring for animal life, or the
collecting or processing of an agricultural product on the farm or ranch.
094.01A(1) Agricultural machinery and
equipment does not include office equipment, registered or unregistered motor
vehicles, well-drilling equipment, handling or processing equipment for
agricultural products not on a farm or ranch, or any building or fixture.
094.01B Commercial
agriculture is the business of producing food products, or other useful and
valuable crops, or raising animal life. The crops or animal life can either be
sold or used by the grower to produce other products for sale. Commercial
agriculture includes commercial production in greenhouses, nurseries, tree
farms, sod farms, and feedlots. Commercial agriculture does not include storage
of products off the farm or in commercial elevators, or animal life in
stockyards or sale barns.
094.01C
Depreciable agricultural machinery and equipment means agricultural machinery
and equipment that has a determinable life of longer than one year.
094.01D Purchase is a transfer of title or
possession for a consideration. The purchase may occur by sale, conditional
sale, sale at auction, or a lease or rental for thirty days or more.
094.02 The purchase of depreciable
agricultural machinery and equipment is exempt from the Nebraska and local
option sales and use tax if the agricultural machinery and equipment purchased
meets all of the following criteria. If any of the criteria are not met, the
purchaser is not entitled to an exemption:
094.02A The item purchased is agricultural
machinery and equipment;
094.02B It
is used in commercial agriculture; and
094.02C The purchaser properly completes a
Nebraska Resale or Exempt Sale Certificate, Form 13, Section B.
094.03 Sales of repair and
replacement parts for agricultural machinery and equipment used in commercial
agriculture are taxable. Charges for labor to repair agricultural machinery and
equipment are not taxable provided the charges are separately itemized on the
billing invoice.
094.03A The tax paid on
purchases of depreciable repair and replacement parts is eligible for a refund,
including the tax paid on the related repair or maintenance labor
charges.
094.04 Charges
for labor to repair a building, structure, or fixture used in commercial
agriculture are taxable.
094.05
Personal property tax must be paid on qualified agricultural machinery and
equipment and depreciable repair parts, even if sales tax is paid on the
item.
