Nebraska: Sales Tax Handbook
What constitutes sales tax nexus in Nebraska?
One of the more complicated aspects of Nebraska sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of Nebraska, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in Nebraska, the vendor must register for a Nebraska sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state. On this page, we have compiled some of the most commonly needed facts about what constitutes sales tax nexus in Nebraska.
Sales Tax Nexus in Nebraska
According to the Nebraska law, retailers who have tax nexus are "engaged in business", and can be defined in several different ways.
If your business has an office or any other type of place of business in Nebraska, an employee, sales representative, agent, contractor, or any other representative within the state's boundaries, derives receipts form the lease or rental of any kind of property, or he ownership pf any merchandise any sort of storage facility, they have sales tax nexus in Nebraska.
For additional details on sales tax nexus law in Nebraska, see the nexus information page from the Department of Revenue at http://www.revenue.nebraska.gov/legal/regs/slstaxregs.html#001
Taxation of Internet-Based Sales in Nebraska
NOTE: 2018 Supreme Court Ruling Regarding Online Sales Taxes
In the 2018 Supreme Court case South Dakota vs. Wayfair Inc, Et Al., the court overturned a previous ruling that required a merchant to have physical nexus in order for a state to collect sales tax. This means that any state is now free to enforce collection of sales taxes on out-of-state online merchants. The information provided here may be subject to change, and many states are expected to begin collecting online sales taxes following this ruling.
Generally, Nebraska does not charge sales tax on Internet-based transactions determined to have nexus within the state. This means that purchases from Amazon.com and other Internet-based retailers may be sales-tax-free.
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within Nebraska, have been the subject of hot debate in recent years. You can learn more on our introduction to Internet-based sales taxes.
Does my business have tax nexus in Nebraska?
The folks at the sales tax compliance company Avalara are an approved Nebraska sales tax partner, and you can use their free Nebraska nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay Nebraska sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
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