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090.01 The fact that an organization is nonprofit does not, by itself, entitle the organization to an exemption from payment of sales and use tax. The following nonprofit organizations will be exempt from payment of the Nebraska sales and use tax to the extent indicated after the organization has applied for and received an exemption certificate. Religious organizations are discussed in Reg-1-091, Religious Organizations; and educational institutions are discussed in Reg-1-092, Educational Institutions. All other nonprofit organizations are not exempt and must pay the sales and use tax.
090.01A A nonprofit organization operating any of the following facilities is only exempt on purchases for use at the facility or portion of the facility covered by the license. Any purchases by the nonprofit organization for use at facilities not included in the license or for any other activities of the nonprofit organization are not exempt from the Nebraska sales and use tax.
090.01A(1) A nonprofit hospital licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes;
090.01A(2) A nonprofit health clinic licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes, when two or more hospitals or the parent corporations of the hospitals own or control the health clinic for the purpose of reducing the cost of health services, or when the health clinic receives federal funds through the United States Public Health Service;
090.01A(3) A nonprofit skilled nursing facility licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes;
090.01A(4) A nonprofit intermediate care facility defined in section 71-420, a nonprofit intermediate care facility for the mentally retarded defined in section 71-421, and a nonprofit organization providing community-based services for the developmentally disabled which are licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes;
090.01A(5) A nonprofit nursing facility licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes;
090.01A(6) A licensed child-placing agency; and
090.01A(7) A licensed child-caring agency, providing 24 hour daily care, supervision, custody, or control of children in lieu of care or supervision normally exercised by parents in their own home, and licensed under sections 71-1901 to 71-1904 of the Nebraska Revised Statutes;
090.01A(7)(a) A licensed child-caring agency does not include an organization providing day care, early childhood programs, and periodic care as defined in section 71-1910 of the Nebraska Revised Statutes.
090.01B A nonprofit organization operating any of the following facilities or activities is only exempt on purchases for use at the facility or portion of the facility covered by the license, or for the activities covered by the license. Any purchases by the nonprofit organization for use at facilities not included in the license or for any other activities of the nonprofit organization not included in the license are not exempt from the Nebraska sales and use tax.
090.01B(1) A nonprofit home health agency licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes; and
090.01B(2) An organization operating a licensed hospice or providing hospice services or respite care services licensed under the Health Care Facility Licensure Act of the Nebraska Revised Statutes.
090.01C The following nonprofit organizations are exempt on all purchases.
090.01C(1) A nonprofit organization providing services exclusively to the blind; and
090.01C(2) The State Fair Board.
090.02 The nonprofit organization seeking exemption from payment of sales and use tax must complete a Nebraska Exemption Application for Sales and Use Tax, Form 4, accompanied by the necessary supporting documentation. Exemptions are granted to organizations listed under Reg-1-090.01A through Reg-1-090.01C(2), based on a presentation of factual documentation. In those instances where licensure is a requirement, the state agency responsible for issuing that license will be contacted. Organizations approved for exemption from payment of sales and use tax are issued an Exempt Organization Certificate of Exemption. This certificate assigns the organization an exemption number (05-XXXXXXX) which must be used in claiming its exemption.
090.03 The organization must give its supplier a Nebraska Resale or Exempt Sale Certificate, Form 13, as proof of its exempt status. Section B of this certificate, or an approved substitute form, shall be completed in accordance with Reg-1-014, Exempt Sale Certificate.
090.04 Only the organization issued an Exempt Organization Certificate of Exemption may make purchases to be used by and for the purposes of the organization without payment of sales or use tax. Affiliated or subsidiary organizations, although operating in support of or under the guidance of an exempt organization, may not use the exempt organization's exemption certificate. The affiliated or subsidiary organization must apply for its own certificate. The affiliated or subsidiary organization may or may not qualify for its own exemption.
090.04A The sales and use tax exemption does not extend to a person purchasing property to be given or donated to an exempt organization. For an item to be purchased exempt, the person must donate the funds, and the organization must purchase the item. A retailer donating inventory to an exempt organization is required to pay the use tax on the item donated.
090.04B An exempt organization engaging in construction or repair projects will receive the benefit of its tax exempt status by complying with the provisions of Reg-1-017, Contractors. Organizations that must be licensed to be exempt must pay tax or have the contractor pay tax on all building materials for construction or repair performed before licensing. After licensing, the organization may apply for a refund.
090.05 A nonprofit organization is required to collect sales tax on sales made by the organization, with the exception of those sales enumerated in Reg-1-012.02A. Even an organization exempted from payment of sales and use tax under Reg-1-090.01 above, is required to collect sales tax on its sales of property and services to the general public or to the members of the organization.`
090.05A Organizations making sales of property or services of a type subject to the sales tax must apply for a Nebraska Sales Tax Permit and collect sales tax on the gross receipts from such sales. When the organization purchases the property for resale, it shall complete Nebraska Resale or Exempt Sale Certificate, Form 13, section A, and give it to its supplier. This certificate, or an approved substitute form, shall be issued in accordance with Reg-1-013, Sale for Resale-Resale Certificate.
090.06 When a nonprofit organization charges for a fund-raising event that includes either food or entertainment, recreation, or amusement, and the charge is combined with the solicitation of a contribution, the portion of the amount charged representing the fair market value of what is received is a retail sale. The organization shall determine the amount properly attributable to the fair market value in advance and shall clearly indicate that amount on any ticket, receipt, or other evidence issued in connection with the payment. If the charge for fair market value and the contribution amount are not separately stated, the total charge is taxable.
090.06A If there is no fair market value determined by the organization, and there is more than one ticket price, and all purchasers receive substantially the same benefits, the price of the lowest price ticket shall be presumed to be the fair market value of all tickets sold.
090.07 Charges by committees registered with the Political Accountability and Disclosure Commission, or committees for candidates for federal office, for admission to or for meals or food served at political fund-raising events are exempt.
090.07A All other sales of property by committees, other than committees for candidates for federal office, are taxable.
090.07B Committee as used in Reg-1-090.07 includes ballot question committees, candidate committees, independent committees, and political party committees.
(Sections 77-2704.10 and 77-2701.33, R.R.S. 2003, and section 77-2704.12, R.S.Supp., 2008. February 22, 2009.)
