Q. I am a licensed private detective and I am hired to repossess a car. Is this service taxable?
A. Yes. However, if the service is provided by someone other than a licensed detective the charge is not taxable.
Q. I am a licensed private detective and am hired to investigate the cause of a fire. Is this service taxable?
A. If a licensed private detective or detective agency is hired to determine the cause of a fire, the charge is taxable.
Q. I am a licensed private detective and am hired by an exempt governmental agency or exempt organization. Are charges billed to these entities subject to tax?
A. Charges billed by a detective or detective agency to an exempt governmental agency or exempt organization are not taxable, provided the customer issues a properly completed Nebraska Resale or Exempt Sale Certificate, Form 13. For additional information regarding exempt governmental units and exempt organizations see Nebraska Sales and Use Tax Regulations 1-072, 1-090, 1-091, 1-092, and 1-093.
Q. My private investigative business is located in Omaha and I am hired to "follow" a person who lives in Lincoln. What city sales tax is collected?
A. Detective services are taxed at the customer’s primary residential or business address in this state, regardless of the detective agency’s location or the place(s) the detective goes in performing its service.
Q. If I perform investigative services but am not a "licensed" detective, are my services subject to sales tax?
A. No. However, Nebraska Revised Statute Section 71-3202, requires individuals and businesses performing private detective services to be licensed with the Nebraska Secretary of State’s Private Detective Division.
Q. If I am hired by an out-of-state customer to serve papers to a person in Nebraska, is this taxable?
A. Detective services are taxed at the customer’s primary residential or business address in this state. Since the customer is located outside this state, the detective’s services are not taxable.
Q. If I am hired by a Nebraska resident to serve papers to a person who is outside of Nebraska, is this taxable?
A. Detective services are taxed at the customer’s primary residential or business address in this state. Since the customer is located in this state, the detective’s services are taxable.