Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 316 - NEBRASKA DEPARTMENT OF REVENUE
Chapter 9 - LOCAL SALES AND USE TAXES
Section 316-9-002 - AUTHORIZATION FOR CITIES - UP TO 1½%

Universal Citation: 316 NE Admin Rules and Regs ch 9 ยง 002

Current through March 20, 2024

002.01 Permissible Rates of Tax

Any city may authorize and impose a local sales and use tax at the rate of ½%, 1%, or 1½% on retail sales sourced within the boundaries of the city. The local sales and use tax must be approved by a majority of the votes cast in a regular election held within the city and adopted by ordinance.

002.02 Vote at an Election Required

The election required for approval of a local sales and use tax may be held as part of any city, county, or state general, primary, or special election held within the city.

002.02A The question authorizing adoption of a local sales and use tax must include the following language: "Shall the governing body of the incorporated municipality impose a sales and use tax upon the same transactions within such municipality on which the State of Nebraska is authorized to impose a tax?"

002.02B The question authorizing adoption of a local sales and use tax may be initiated either by a majority vote of the governing body or upon petition by qualified electors to the governing body. Notice of the question must be given by publication, as required by Neb. Rev. Stat. § 77-27, 142.03.

002.02C If the majority of voters do not approve the imposition of a local sales and use tax, then the question cannot be submitted to the voters again for at least 23 months.

002.03 Ordinance Required

If the question is approved by a majority of the votes cast at the election, the city imposing the sales and use tax must adopt an ordinance in accordance with its municipal and statutory authority. If the ordinance states an operative date, the operative date must be the first day of a calendar quarter.

002.04 Notification to the Department Required

When the governing body of a city adopts a local sales and use tax:

002.04A The city must furnish the Department a certified copy of the ordinance imposing the tax, and a certified map of the city clearly showing its boundaries; and

002.04B The county election commissioner must furnish the Department a certified copy of the election results to the question submitted to the electors and a certified statement that the question of imposing the tax for the city has not failed in the previous 23 months.

002.04C For purposes of this regulation, the certified materials may be furnished by mail or by electronic means.

002.05 When Operative

The implementation of the sales and use tax cannot begin until the first day of the calendar quarter that is at least 120 days following receipt by the Department of the certified materials. The certified materials must be provided in the timelines provided in Reg-9-006, Cities and Counties - Timelines for Submitting Certified Materials to the Department.

002.06 Termination

For ordinances containing a termination date, the termination date must be the first day of a calendar quarter.

002.06A The city must furnish a certified statement to the Tax Commissioner at least 120 days and no more than 180 days prior to the termination date stating that the termination date in the ordinance is still valid.

002.06B If the certified statement is not furnished within this time, the tax will remain in effect, and the Department will continue to collect the tax until the first day of the calendar quarter that is at least 120 days after receipt of the certified statement, notwithstanding the termination date stated in the ordinance.

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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