Local Sales and Use Tax Information

What happens when voters elect to start, change, or terminate a local sales and use tax?

Upon approval by a majority of voters in any city, county, or state general, primary, or special election involving a vote on a local sales and use tax ballot issue, the city or county must meet and adopt an ordinance in accordance with its municipal and statutory authority. The city or county must submit the documents referenced below to the Nebraska Department of Revenue (DOR). The date that DOR receives all of the required documents will determine the effective date of the local sales and use tax. The effective date is the first day of the calendar quarter that is at least 120 days after receipt of the required documents by DOR.   

For a city sales and use tax, upon approval by a majority of the votes cast in an election, the following documents must be received by DOR:

  1. A copy of the ordinance adopted by the city to impose the sales and use tax;
  2. A map of the city that is certified as correct;
  3. A certified copy of the election results from the county election commissioner; and
  4. A certified statement from the county election commissioner that the question of imposing a city tax has not failed in the previous 23 months. 
     

For a county sales and use tax, upon approval by a majority of the votes cast in an election, the following documents must be received by DOR:

  1. A certified copy of the resolution imposing the tax; and
  2. A certified copy of the election results from the county election commissioner.

What is the effective date to start, stop, or change a local sales and use tax?

A city or county sales and use tax can only start, stop, or change on one of four dates throughout the year. Those dates are January 1, April 1, July 1, or October 1 of any year. The effective date of the sales and use tax will be the first day of the next calendar quarter that is at least 120 days after DOR receives the required documents referenced above. Local Sales and Use Tax Reg-9-006, Cities and Counties – Timelines for Submitting Certified Materials to the Department, provides specific date information:

006.01 If a city or county receives voter approval and adopts a local sales and use tax, terminates a local sales and use tax, or changes the rate of a local sales and use tax, the timelines for providing the certified materials required by this regulation are as follows:

To be Operative
Certified Materials Must
be Furnished After
But No Later Than
January 1
June 3
September 3
April 1
September 3
December 2
April 1 (of a leap year)
September 3
December 3
July 1
December 2
March 3
July 1 (of a leap year)
December 3
March 3
October 1
March 3
June 3

 

006.02 If the “But No Later Than” date falls on a Saturday, Sunday or holiday, the certified materials must be furnished no later than the Friday before the date in column 3.

(Neb. Rev. Stat. §§ 13-324 and 77-27,143, and McDonald’s Executive Offices v. Nebraska Department of Revenue, 243 Neb. 82 [1993]. November 17, 2013.)

Where should the ordinance or resolution and other documents be sent?

The required documents should be sent to:

Karen Barrett, Policy Division
Nebraska Department of Revenue
301 Centennial Mall South
PO Box 94818
Lincoln, NE 68509-4818
402-471-5980
karen.barrett@nebraska.gov

Where can the Local Sales and Use Tax Regulations be found?

Title 316, Chapter 9, Local Sales and Use Tax, can be found toward the bottom of DOR's home page under "Law and Guidance." These regulations provide information on the rates, required wording in the ballot question, and other helpful information.

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