Nebraska: When Buyers Must Pay Use Tax
- Sep 2, 2014 | Gail Cole
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).