Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 350 - Nebraska Department of Revenue, Property Assessment Division
Chapter 20 - Personal Property Regulations
Section 350-20-005 - PERSONAL PROPERTY EXEMPTIONS

Universal Citation: 350 NE Admin Rules and Regs ch 20 ยง 005

Current through March 20, 2024

The following categories of personal property are exempt from the property tax:

005.01 Inventory shall be exempt from the personal property tax.

005.01A Inventory is defined as goods held for sale or resale in a manufacturing, merchandising, or agricultural business where the production, sale, or purchase of property is in the ordinary course of their business. Inventory shall include all finished or partly finished goods or products, and raw materials and supplies, which have been acquired for sale or which, will physically become a part of inventory. A seller shall include in inventory goods or products held under contract for sale, but not yet delivered, and goods or products out on consignment. A seller shall not include in inventory goods or products sold where title has passed to the buyer. Items used in the conduct of the business that are not intended to be sold or to become part of goods or products intended to be sold cannot be included in inventory.

005.01B Inventory shall include personal property owned for purposes of leasing or renting for financial gain only when:
(1) the items are of a type which in the ordinary course of business are leased or rented for a period of 30 days or less: and

(2) the items may be returned at the option of the lessee or renter at any time: and

(3) the items are of a type which would be considered household goods or personal effects if owned by an individual.

005.01C Items of personal property held for lease or rental or in possession of a lessee or renter other than those described in REG-20-005.01B are defined as depreciable tangible personal property and cannot be included in inventory. Treatment of property which is part of a conditional sale is addressed in Reg-20-006.

005.02 Household goods and personal effects shall be exempt from the personal property tax.

005.02A The term household goods includes: tools and equipment used in the maintenance of the home and yard; cooking utensils; health, sports, and recreational equipment; art objects; television sets; record players; stereo systems; home computers for personal use; musical instruments; sewing machines; furniture; and, appliances not attached to real property.

005.02B The term personal effects includes items of personal property usually associated with or having a close relationship to the person, such as: wearing apparel; jewelry; hobby equipment and collections; guns; golf carts; snowmobiles; cameras; and, pets.

005.02C Household goods and personal effects do not include any property that is owned or used for the financial gain or profit to either the owner or the user.

005.03 All personal property owned by the state of Nebraska and its governmental subdivisions that is used for a public purpose, is exempt from property tax. Personal property owned by other states or their governmental subdivisions is subject to property tax in Nebraska, if the property has situs for tax purposes in Nebraska.

005.04 Tangible personal property that is not depreciable as defined in Reg-20-001, shall be exempt from property tax.

005.05 Employment and Investment Growth Act Personal Property Exemptions. Turbine-powered aircraft, mainframe business computers and peripheral components, and business equipment used in the manufacture or processing of agricultural products, may be exempt from personal property taxation for a specified number of years when the taxpayer and the Tax Commissioner have signed an agreement pursuant to the Employment and Investment Growth Act. Qualifications for this exemption are based upon the attainment of certain levels of new employment and investment. See Chapter 77, Article 41.

005.06 Livestock shall be exempt from the personal property tax.

005.06A For purposes of the exemption, livestock shall mean all animals or other living creatures used or raised for profit.

005.07 Tangible personal property owned by a Native American Indian and having situs on a Nebraska Indian Reservation shall be exempt from the property tax.

005.08 Nebraska Advantage Act Personal Property Exemptions. Turbine powered aircraft, mainframe business computers and peripheral components, business equipment used in the manufacture or processing of agricultural products and personal property used in a distribution facility that is used to store or move products, may be exempt from personal property taxation for a specified number of years when the taxpayer and the Tax Commissioner have signed an agreement pursuant to the Nebraska Advantage Act. Qualifications for this exemption are based upon the attainment of certain levels of new employment and investment. See Chapter 77, Article 41.

005.09 All other personal property which the Legislature has provided by law to be exempt from the property tax. See, Property Tax Exemption Regulations, Chapter 40.

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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