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Nebraska: When Buyers Must Pay Use Tax


 You can't escape your use tax obligation.

The Nebraska Department of Revenue recently issued a news release reminding Nebraska taxpayers of October 2014 sales tax rate changes. It also points out that when sellers do not collect sales tax at the time of sale, buyers must remit use tax to the department.

Use tax is “imposed on the storage, use, distribution, or consumption of tangible personal property and certain services purchased by the end user when Nebraska sales tax has not been paid.” It may be owed when a non-collecting out-of-state retailer delivers goods to a Nebraska buyer, or when a buyer purchases an item in another state. Regulation 1-0002 provides additional information.

Both businesses and individuals can be liable for use tax and should remit it with the proper form:

  • Retail businesses should file the Nebraska and Local Sales and Use Tax Return (Form 10).
  • Other businesses should file the Nebraska and Local Business Tax Use Tax Return (Form 2).
  • Individuals should file the Nebraska and Local Individual Use Tax Return (Form 3) or the Nebraska Individual Income Tax Return (Form 1040N).

Use tax compliance can be challenging. Automated sales and use tax software simplifies it. Learn more.

photo credit: Dawn Endico 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.