Multistate Tax Commission/Association of Fund-Raising Distributors & Suppliers   Nebraska

Agency:  Revenue

Contact Person:  Ellen Thompson

Tel. No.:  (402) 471-5679

Fax No.:  (402) 471-5946

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.

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  3. 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.

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  5. 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.

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  7. 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".

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  9. 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.

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  11. 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)

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  13. 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

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  15. 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.

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.