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Nebraska Encourages Out-of-State Sellers to Register with the State

  • Jul 24, 2013 | Gail Cole

 Does your business have nexus in Nebraska?

The Streamlined Sales Tax Governing Board (SSTGB) strongly supports the Marketplace Fairness Act of 2013, which would allow states to require certain out-of-state sellers to collect and remit sales tax. SSTGB thinks businesses should "compete on the basis of price and service, not on the ability of one form of retailer to avoid collecting taxes," and it has been working toward that end since its inception. Nebraska takes a similar stance.

Nebraska adopted the Streamlined Sales and Use Tax Agreement (SSUTA) in 2003, signaling its desire to "simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance" for all business, but for out-of-state businesses in particular.

It should therefore be no surprise that Nebraska wants all out-of-state sellers to register with the state, just as out-of-state sellers with nexus in Nebraska do. As a member of SSUTA, Nebraska has simplified its sales tax laws and regulations so that it is easier for all sellers, even out-of-state sellers, to negotiate.

Pursuant to Nebraska's Regulation 1-003, Non-nexus Sales:

"Every out-of-state seller, except as set out in this regulation, making retail sales of property or services for delivery in the State of Nebraska or leasing or renting property with delivery to lessees within this state must obtain a permit, collect and remit Nebraska sales tax."

"The seller is not obligated to collect sales tax when he or she is not engaged in business in this state."

However, "Where no obligation to register for collection of the Nebraska tax exists, the seller may make application for a sales tax permit, and in fact is encouraged to make application for such a permit in order that the appropriate use tax might be collected from Nebraska customers." (Emphasis mine.)

Furthermore, "The Tax Commissioner may require non-nexus sellers to file the same return as is required from retailers collecting the sales tax…"

The Marketplace Fairness Act has not yet gained any traction in the House, although it passed the Senate in a 69-27 vote. Eager to move forward on this issue, numerous states are taking their own steps toward marketplace fairness. Many, like Nebraska, are members of SSUTA.

Read more about Nebraska's sales and use tax returns in Regulation 1-010. Or let someone else read about it for you.

Is your business prepared for these and other sales tax changes?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.