Contact Person: Ellen Thompson
Tel. No.: (402) 471-5679
Fax No.: (402) 471-5946
Public Schools (K-12)
Private Schools (K-12)- Exempt
School Groups (e.g., clubs, bands, teams)- Exempt
Other parent groups- Exempt (Parent Booster groups)
Church Groups- Not Exempt
Youth Sports League- Not Exempt
501 (c)(3) organizations- Not Exempt
501 (c)(6) organizations- Not Exempt
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.
Candies and Confections
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 accessoriesNot 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?
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.
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.
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".
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.
Price paid by consumer to fundraising group
Schools and school associated groups which make exempt sales of products are not required to obtain a sales tax permit in order to purchase the products at wholesale.
Records for sales of food, food products and exempt magazine subscriptions must clearly indicate the type of product being sold in order to substantiate the exemption.