Nebraska Tax Nexus
Businesses with nexus in Nebraska are required to register with the Nebraska Department of Revenue and to charge, collect, and remit the appropriate tax.
Generally, a business has nexus in Nebraska when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.
Nebraska nexus for out-of-state sellers
Every person engaging in business as a retailer in Nebraska is required to obtain a sales tax permit. “Engaging in business” includes, but is not limited to:
- Soliciting retail sales of property from residents of Nebraska on a continuous, regular, or systematic basis by means of advertising which is broadcast from or relayed from a transmitter within Nebraska or distributed from a location within Nebraska
- Soliciting orders from residents of Nebraska for property by mail, if the solicitations are continuous, regular, seasonal, or systematic and if the retailer benefits from any banking, financing, debt collection, or marketing activities occurring in Nebraska or benefits from the location in Nebraska of authorized installation, servicing, or repair facilities
- Being owned or controlled by the same interests which own or control any retailer engaged in business in the same or similar line of business in Nebraska
Nebraska encourages but does not require out-of-state sellers who are not “engaged in business” in the state to register and collect and remit Nebraska sales and use tax.
On May 27, 2015, the Governor approved LB 200, which allows the state to require remote sellers with no physical presence in the state to register and collect and remit sales if the United States Congress expands states’ authority to do so.
See the Nebraska Department of Revenue FAQs about Nebraska Sales and Use Tax; LB 200, and Regulation 1-003; Reg 1-004; and Reg-005.