Refund Claim Documentation

LB 775 Information | Tax Incentives Home

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This guide should be used by companies who have met the minimum levels of employment and investment and are eligible to file an Economic Incentive Claim for Overpayment of Sales and Use Tax, Form 7-I, for benefits under the Employment and Investment Growth Act, LB775. It outlines the documentation which must be submitted with your claim to avoid delay in its processing.
  1. Use the dollar scopes established with you by the Department of Revenue for providing invoices. Periodically, we will review the scope and will notify you of any changes. On a random basis, we will request invoices below this established scope to verify that tax was paid.
     
  2. Basis for Claim Line.
     
    3.
    Identify as a DIRECT claim for qualifying property placed-in-service during the attainment or entitlement periods.
     
    Identify as a CREDIT claim on otherwise non-refundable sales and use taxes paid on purchases used at the project.
     
    If you have more than one project, clarify which project.
     
    Separate Forms 7-I need to be filed for DIRECT and CREDIT claims for each project.
     
    A direct claim for taxes paid on an aircraft must be filed on its own Form 7-I. An affidavit is required for each filing and must state whether the aircraft has been used for fund-raising or for the transportation of an elected official.
     
  3. Summary documents.
     
    4.
    Provide a listing which identifies all invoices claimed. The listing should include only items claimed on the Form 7-I and not items that relate to other filings.
     
    If there is more than one list for a single Form 7-I, submit a lead schedule showing how these lists tie to the Form 7-I. The lead schedule for each claim should stand alone and the amount claimed should be easily identifiable. The lead schedule should prevent us from having to calculate the amount claimed by adding together various printouts or by computing the refund amount based on the difference between balances.
     
  4. Listings.
     
    5.
    The listing of invoices should include the following information: vendor name, description of item purchased, invoice number, invoice date, taxable amount, taxes paid by jurisdiction (separate by state and each city), segregation of sales from use tax paid, indication of which invoices are included for documentation. If your system does not segregate sales from use tax, then annotate next to each item whether sales or use tax was paid. See Attachment "A" for an example.
     
    If the listing was prepared electronically, please submit the information on a double sided, 3.5-inch disc or email to the address listed below. We are able to work with listings prepared on Lotus (version 5 or less), Quattro Pro (version 9 or less), Excel (97 or earlier), Paradox, a text file, or dBASE (version 4 or less).
     
  5. Invoices.
     
    6.
    Submit all invoices based on the previously established scopes for direct refund on qualifying assets and credit refunds on non-qualifying purchases.
     
    Please arrange the invoice copies in the same order that the invoices appear on the listing and ensure the copies are legible.
     
  6. Use tax detail.
     
    7.
    If you are claiming a refund of use taxes remitted to the Department on a Nebraska and City Sales and Use tax Return, Form 10, or a Nebraska and City Consumer's Use Tax Return, Form 2; submit a copy of the return and the backup supporting the use tax remitted. The supporting work papers must list each invoice and tie to the Form 10. This information should be sent with each refund claim.
     
  7. Qualification Letter.
     
    8.
    Submit a copy of the approval letter issued by the Department of Revenue.
     
  8. Contractor's Certificate of Tax Paid
     
    9.
    For each contract for an improvement to real property where the claimed tax refund meets the scope guidelines, please provide a contractor's certificate of tax paid similar to the one attached certifying the percentage of materials with state or city tax paid. See Attachment "B" for an example.
     
  9. If you are filing a refund claim for a period of time already included in a previously approved refund claim, then send a copy of the list supporting the prior claims for refund. We do not need a copy of the invoices provided with the original claim.
     
  10. Each claim should be self supporting. Please file the applicable backup for each claim separately instead of combining the backup together when filing more than one claim.
    11.

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If you have any questions, please contact Mary Hugo at (402) 471-5790 or at  Mary.Hugo@rev.ne.gov

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ABC Company
ID #123456
Direct Claim
1/1/00 to 6/30/00

Asset # Vendor Name Description Inv
Incl		 Invoice # Inv Date Taxable
Amount		 Sales Tax
NE		 Sales Tax
Gr Isld		 Use Tax
NE		 Use Tax
Gr Isld		 Total Tax
Paid NE		 Total Tax
Paid Gr Isld
1324 Gr Island Supply Desk * 378 01/12/00 2,500 125 25     125 25
1325 Computer Depot PC * 57832 04/23/00 4,500 225 45     225 45
1328 Press MFG Printing press   df290 05/02/00 70,000     3,500 700 3,500 700
1329 Gr Island Supply copy machine   534 06/14/00 1,200 60     12 60 12
 
TOTALS 410 70 3,500 712 3,910 782

Note: Attached invoices are in asset number order.