Nebraska

E-mail:  ethompso@rev.state.ne.us

1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

   Public Schools (K-12) - Exempt

   Private Schools (K-12) - Exempt

   School Groups (e.g., clubs, bands, teams) - Exempt

   PTAs - Exempt

   PTOs - Exempt

   Other parent groups - Exempt (Parent Booster groups)

   (please identify)

   Church Groups - Not Exempt

   Youth Sports League - Not Exempt

   501 (c)(3) organizations - Not Exempt

   501 (c)(6) organizations - Not Exempt

   Other (specify:__________________)

   1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

   Yes

   1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

   Sales made by school-associated organizations are not subject to tax when the proceeds are used to support the school or the school's activities. This exemption does not include sales of meals to the general public.

   Religious organization must collect tax on sales to the general public or to its members. A religious organization may have one annual sale that is not taxed provided 1) the sale is an activity of the organization; 2) the sale lasts no more than three consecutive days; and 3) the organization sells items it owns.

 

2. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

   Candies and Confections- Exempt

   Cookies and Other Baked Goods - Exempt

   Cheese Products - Exempt

   Meat Products - Exempt

   Nuts, popcorn and other snack food - Exempt

   Other edible items (please identify) - Exempt

   Magazine subscriptions - Exempt (issued at least monthly)

   Paper products (e.g., calendars, cards stationery, books, gift wrap) - Not Exempt

   Decorative tins, baskets, other containers - Decorative tins and baskets containing food are taxable if the container's value exceed 10% of the total cost 

   Decorative novelties (mugs, ornaments) - Not Exempt

   Sundry items (please specify item below) - Not Exempt

   Clothing and accessories Not Exempt

   Jewelry - Not Exempt

   Plants and seeds - Garden seeds, bulbs, and plants are exempt if they produce food for human consumption

   Other hard good items - Not Exempt

   2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

   Yes

   2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

   The products listed as taxable would be exempt if sold by a school, school group or a religious organization at its one annual sale. Sales by other groups are taxable.

 

3. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

   Limits on number of fundraiser events per year

   Limits on duration of fundraisers

   As noted in 1b & 2b, religious organizations may have one annual sale that is not taxed. The sale must be an activity of the religious organization and must not last more than 3 consecutive days.

 

4. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

   Neb. Rev Stat. Sect 77-2704.25 provides the exemption for school sales. 77-2702.09 (4) provides the exemption for religious organizations. Nebraska Sales & Use Tax Regulations 1-091 & 1-092 provide addition guidance. School groups may purchase merchandise to be resold by completing Section B of the Nebraska Resale or Exempt Sale Certificate, Form 13. In lieu of an exemption certificate number the group should indicate the reason for the exemption as, for example, "PTA exempt sale per regulation 1-092".

 

5. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

   Neb. Rev Stat. Sect 77-2704.24 provides an exemption for sales of food or food products for human consumption. 77-2704.22 provides an exemption for magazine subscriptions issued at least monthly. Also see Regulation 1-055 & 1-087.

 

6. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

   The fundraising group (e.g., school, PTA, church)

 

7. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

   Price paid by consumer to fundraising group

 

8. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.