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It’s Against the Law to Advertise No Sales Tax

  • Mar 24, 2014 | Gail Cole

 In Nebraska, it's a misdemeanor to advertise "No Sales Tax."

Sales tax applies to the transfer of taxable tangible goods in Nebraska, unless a transaction is exempted by law. Nebraska doesn’t even offer a sales tax holiday as some states do, although it has considered tax-free periods in the past. Why, then, would a retailer advertise, “We’ll Pay Your Sales Tax,” or a tax-free sale?

It turns out they shouldn’t. If they do, they're breaking the law.

The Nebraska Department of Revenue announced today that some retailers “may attempt to capitalize on the public’s sensitivity to the payment of taxes” during income tax filing season. Tax Commissioner Kim Conroy reminds that “it is a misdemeanor to advertise that the customer will not be charged any sales tax or that the sales tax will be paid or absorbed by the retailers.”

“Retailers are prohibited from advertising (or implying in any way) that the sales tax (or any part of the sales tax) will be paid by the retailer or not added to the selling price.”

The following are examples of language that is prohibited from appearing in any sales advertisement:

  • Tax-Free Sale;
  • Pay No Sales Tax;
  • Purchases Will Be Discounted by the Amount of the Sales Tax;
  • We’ll Pay Your Sales Tax;
  • Tax Credit Sale; and
  • Tax Rebate Sale.

When in doubt, retailers are invited to run their advertisements past the Department of Revenue. It never hurts to check.

Don’t mess with sales tax. Automate.

photo credit: banspy via photopin cc

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.