Who May Issue a Resale Certificate. Purchasers are to give the seller
a properly completed Form 13, Section A, when making purchases
of property or taxable services that will subsequently be resold in the
purchaser’s normal course of business. The property or services must
be resold in the same form or condition as when purchased, or as an
ingredient or component part of other property that will be resold.
Who May Issue an Exempt Sale Certificate.
Form 13, SectionB,
may be completed and issued by governmental units or organizations
that are exempt from paying Nebraska sales and use taxes. See this
list in the Nebraska Sales Tax Exemptions Chart. Most nonprot
organizations are not exempt from paying sales and use tax. Enter the
appropriate number from “Exemption Categories” (listed below) that
properly reects the basis for your exemption.
For additional information about proper issuance and use of this certicate,
please review Reg-1-013, Sale for Resale – Resale Certicate, and
Reg-1-014, Exempt Sale Certicate.
Contractors. Contractors complete Form 13, Section C, part 1 or part
2 based on the option elected on the Contractor Registration Database.
To make tax-exempt purchases of building materials and xtures,
Option 1 or Option 3 contractors must complete Form 13, SectionC,
Part 1. To make tax-exempt purchases of building materials and xtures
pursuant to a construction project for an exempt governmental unit or
an exempt nonprot organization, Option 2 contractors must complete
Form 13, Section C, Part 2. The contractor must also attach a copy of
a properly completed Purchasing Agent Appointment and Delegation
of Authority for Sales and Use Tax, Form17, to the Form 13, and both
documents must be given to the supplier when purchasing building
materials. See the contractor information guides and Reg-1-017,
Contractors, for additional information. Also, see the Important Note
under “Exemption Categories” number 3.
When and Where to Issue. The Form 13 must be given to the seller
at the time of the purchase to document why sales tax does not apply
to the purchase. The Form 13 must be kept with the seller’s records for
auditpurposes.
Sales Tax Number. A purchaser who is engaged in business as a
wholesaler or manufacturer is not required to provide an ID number
when completing Section A. Out-of-state purchasers may provide their
home state sales tax number. SectionB does not require a Nebraska ID
number when exemption category 1, 2, or 5 is indicated.
Fully Completed Resale or Exempt Sale Certificate. A fully
completed resale or exempt sale certicate is proof for the retailer
that the sale was for resale or is exempt. For a resale certicate to be
fully completed, it must include: (1) identication of the purchaser
and seller, type of business engaged in by the purchaser; (2) sales tax
permit number; (3) signature of an authorized person; and (4) the date
of issuance.
For an exempt sale certicate to be fully completed, it must include:
(1) identication of purchaser and seller; (2) a statement that the certicate
is for a single purchase or is a blanket certicate covering future sales;
(3) a statement of the basis for exemption, including the type of activity
engaged in by the purchaser; (4) signature of an authorized person; and
(5) the date of issuance.
Penalties. Any purchaser who gives a Form 13 to a seller for any
purchase which is other than for resale, lease, or rental in the normal
course of the purchaser’s business, or is not otherwise exempted from
sales and use tax under the Nebraska Revenue Act, is subject to a
penalty of $100 or ten times the tax, whichever is greater, for each
instance of presentation and misuse. In addition, any purchaser, or their
agent, who fraudulently signs a Form 13 may be found guilty of a Class
IV misdemeanor.
Exemption Categories
(Insert appropriate number from the list below in Section B)
1. Governmental units, identied in Neb. Rev. Stat. §§ 77-2704.15,
Reg-1-072, United States Government and Federal Corporations,
and Reg-1-093, Governmental Units. Governmental units are not
assigned exemption numbers.
Instructions
Sales to the U.S. government, its agencies, instrumentalities, and
corporations wholly owned by the U.S. government are exempt
from sales tax. However, sales to institutions chartered or created
under federal authority, but which are not directly operated and
controlled by the U.S. government for the benet of the public,
generally aretaxable.
Purchases by governmental units that are not exempt from Nebraska
sales and use taxes include, but are not limited to: governmental units
of other states or countries; sanitary and improvement districts;
rural water districts; railroad transportation safety districts; and
county historicalsocieties.
2.
Purchases when the intended use renders it exempt. See Nebraska
Sales Tax Exemptions Chart.
3.
Purchases made by organizations that have been issued a Nebraska
Exempt Organization Certificate of Exemption (Certificate of
Exemption). Reg-1-090, Nonprofit Organizations; Reg-1-091,
Religious Organizations; and Reg-1-092, Educational Institutions,
identify these organizations. These organizations are issued a
Certicate of Exemption with a state ID number which must be
entered in Section B of Form 13.
Important Note: Nonprofit educational institutions must be
accredited regionally or nationally and have their primary campus
in Nebraska to be exempt from sales and use tax. Also nonprot
organizations providing any of the types of health care or services
that qualify to be exempt must be licensed or certified by the
Nebraska Department of Health and Human Services (DHHS)
to be exempt from sales and use taxes. There is no sales and use
tax exemption prior to these entities being accredited, licensed,
or certied. They CANNOT issue either a Resale or Exempt Sale
Certicate, Form 13, or a Purchasing Agent Appointment, Form17,
to any retailer or contractor relating to purchases of building
materials for construction or repair projects performed prior to
being accredited, licensed, or certied. After an entity becomes
accredited, licensed, or certied upon completion of the construction
project, it may submit a Nebraska Exemption Application for Sales
and Use Tax, Form 4.
Nonprofit health care organizations that hold a Certificate of
Exemption are exempt for purchases for use at their facility, or
portion of the facility, covered by the license issued under the
Nebraska Health Care Facility Licensure Act. Only specic types
of health care facilities and activities are exempt. Purchases of items
for use at facilities that are not covered under the license, or for any
other activities that are not specically exempt, are taxable. The
exemption is not for the entire organization that offers different
levels of health care or other activities, but is limited to the specic
type of health care that is exempt. Purchases for non-exempt types
of health care are taxable.
4.
Purchases of motor vehicles, trailers, semitrailers, watercraft,
and aircraft used predominately as common or contract carrier
vehicles; accessories that physically become part of the common or
contract carrier vehicle; and repair and replacement parts for these
vehicles. The exemption ID number must be entered in Section B
of the Form 13. An individual or business that has been issued a
common or contract carrier certicate of exemption may only use it
to purchase those items described above prior to the expiration date
on the certicate. The certicate of exemption expires every 5 years.
(See Nebraska Common or Contract Carrier Information Guide).
5.
Purchases of manufacturing machinery and equipment made by a
person engaged in the business of manufacturing, including repair
and replacement parts or accessories, for use in manufacturing.
6.
Occasional sales of used business or farm machinery or equipment
productively used by the seller as a depreciable capital asset for more
than one year in his or her business. The seller must have previously
paid tax on the item being sold. The seller must complete, sign, and
give the Exempt Sale Certicate to the purchaser. (See Reg-1-022,
Occasional Sales). The Form 13 must be kept with the purchaser’s
records for audit purposes.