Nebraska vacation rental tax guide

With a bounty of popular destinations including Omaha and Lincoln, the Cornhusker State offers ample opportunity for prospective short-term rental (STR) businesses.

But new income opportunities bring new tax implications. Like hotel stays, STR stays in Nebraska are subject to lodging taxes. Failure to comply with state and local tax laws can result in fines and penalties. Tax jurisdictions are increasingly making STR tax compliance a priority, so it’s important to address compliance before tax authorities address it for you.

Avalara MyLodgeTax put together this guide to help you comply with Nebraska lodging tax laws at the state level. Local jurisdictions such as cities or counties may have their own lodging tax rules. For more information on the tax rates and jurisdictions that apply to your rental’s specific location, use our lodging tax lookup tool.

No lodging tax guide is a substitute for professional tax advice. Consider this an asset to help you understand and prioritize your lodging tax questions and concerns. Questions pertaining to specific situations or out-of-the-ordinary conditions are best solved with a certified tax professional familiar with Nebraska tax laws.

Lodging tax basics

Lodging tax is calculated as a percentage of the cost of your guest’s stay and added to the price on the bill. The guest pays the tax, but the STR operator is responsible for collecting and paying it to the proper tax authority.

What’s the definition of “short-term rental” in Nebraska?

In Nebraska, rentals of sleeping accommodations of less than 30 consecutive days are subject to lodging taxes.

Who’s required to collect and file lodging taxes on short-term rentals in Nebraska?

If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling, you’re likely responsible for collecting, filing, and remitting lodging taxes to Nebraska tax authorities.

Location is key to compliance

The location of your rental is a crucial piece of information for lodging tax compliance. Your address determines which tax jurisdictions you’re required to report to, which taxes you need to collect, and the appropriate tax rates.

Use our lodging tax lookup tool to get a rate report specific to your Nebraska rental’s address. The report includes the estimated total tax rate to collect from guests, number of required registrations, number and frequency of returns per year, and minimum number of rented days to qualify as a taxable stay.

It should be noted that tax rates and the rules governing them change frequently. Please consider your tax rate report to be informative rather than authoritative.

Local short-term rental regulations

STR operators in Nebraska should be aware of the local regulations that apply to them, including rules covering:

• Legality
• Permits, licenses, and registration
• Zoning
• Advertising
• Neighborhood notification
• Building and housing standards

Homeowner associations (HOAs), condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals. It’s your responsibility to be aware of STR policies that apply to your property.

Registering with tax authorities

Before you can begin collecting taxes on your STR in Nebraska, you’re legally required to register with the Nebraska Department of Revenue for both a lodging tax permit and a sales tax permit. You can register online. Depending on your jurisdiction, you may also be required to register with your local tax authority and file local lodging tax returns.

Collecting lodging tax

Once you’ve registered with tax authorities, you’re ready to start collecting lodging taxes, which you’ll add to your guest’s bill when they pay for their stay.

Which lodging taxes apply to Nebraska short-term rentals?

In Nebraska, a number of different lodging taxes may apply to your STR, depending on your location. These can include:

Tax rates

Before you can begin collecting STR taxes, you need to know the correct rate to charge to avoid compliance issues. Our lodging tax lookup tool can give you a rate report specific to your Nebraska address.

What charges are taxable?

In Nebraska, all charges for sleeping accommodations are taxable, including amounts paid for any city-imposed occupation tax. This includes charges such as cleaning fees, pet fees, rollaway bed fees, extra person fees, and forfeited room deposits. Fees for extra options such as meals, internet, and safe charges are subject to sales taxes, but not lodging taxes.

Cancellation fees, valet or laundry services, childcare services, and complimentary food or beverages are not subject to either sales or lodging taxes as long as they’re stated separately on the invoice.

What happens when my short-term rental marketplace (such as Airbnb or Vrbo) collects taxes for me?

In Nebraska, STR marketplaces such as Airbnb and Vrbo are required to collect and remit state-administered sales and lodging taxes on STR stays that they facilitate. You’re still required to file state lodging tax returns even if taxes are being collected and paid for you.

STR marketplaces don’t necessarily collect locally administered lodging taxes. If taxes aren’t being collected for you, you’re responsible for collecting and remitting lodging taxes to tax authorities.

Are guests ever exempt from taxes?

There are situations in which you aren’t required to collect lodging taxes in Nebraska. For example, a guest who rents for a long term rather than a short term is exempt from lodging taxes.

In Nebraska, accommodations purchased directly by buyers including nonprofit organizations, religious and educational institutions, as well as federal, state, or local government agencies may be exempt from lodging taxes. Purchasers are required to present valid exemption certificates.

Filing lodging tax returns

After you’ve collected taxes from your guests, it’s time to file your tax returns with the Nebraska Department of Revenue. In Nebraska, you can file state sales tax returns and pay tax online. State and county lodging taxes are filed manually, but payments may be made electronically. The Nebraska Department of Revenue allows credit card payments, but you may be charged convenience fees for this type of payment.

When do I need to file my returns?

You’ll be assigned a filing frequency and due dates when you register with the tax authority. For filing with the Nebraska Department of Revenue, due dates are as follows:

I didn’t rent my property during this filing period. Am I still required to file a lodging tax return with the Nebraska Department of Revenue?

Yes. STR operators registered with the Nebraska Department of Revenue are required to file returns each assigned filing period, regardless of whether you had any STR income or collected lodging taxes. Such returns are commonly known as “zero dollar returns.” Local tax authorities may have their own requirements.

Are there penalties for filing lodging taxes late?

Whether you choose to offer STRs through a marketplace like Airbnb or Vrbo, or directly to guests, you open the door to tax liability at the state and local level. As tax revenue is a major source of local funding, tax authorities are becoming more aggressive in their efforts to identify individuals and businesses violating tax laws. Failure to register with tax authorities and file lodging tax returns in Nebraska on time may result in late fees, interest payments, and in extreme cases, legal action.

I’ve been offering short-term rentals without collecting lodging tax. What options do I have?

If you’re already operating an STR but not collecting lodging taxes, you may be in violation of Nebraska tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risk of continuing to not collect tax.

STR operators in Nebraska may be able to take advantage of a voluntary disclosure agreement (VDA). A VDA offers an opportunity for hosts to proactively disclose prior period tax liabilities in accordance with a binding agreement with the Nebraska Department of Revenue. VDAs are offered to encourage cooperation with state tax laws and may result in some or all penalty and interest payments being waived.

Are there options for outsourcing lodging tax filing?

Yes. Many STR operators in Nebraska file several state and local lodging tax returns every year. Filing solutions such as Avalara MyLodgeTax can relieve this burden.