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092.01 The following educational institutions will be exempt from payment of the Nebraska sales and use tax after the institution has applied for and received a certificate of exemption.
092.01A A Nebraska public school district;
092.01B A private Nebraska educational institution established under Chapter 79, article 16, of the Nebraska Revised Statutes;
092.01C A Nebraska technical community college;
092.01D Nebraska educational service units;
092.01E Nebraska School for the Deaf;
092.01F Nebraska School for the Visually Impaired;
092.01G The Nebraska State College System;
092.01H The University of Nebraska; and
092.01I A conference or other organization if all the members of the conference or organization are exempt from payment of the Nebraska sales or use tax.
092.02 Schools and other educational institutions not listed in Reg-1-092.01 are not exempt and must pay the sales and use tax. These include, but are not limited to:
092.02A Home schools, other Rule 12 and Rule 13 schools, and all other educational institutions not subject to state approval or accreditation;
092.02B Schools, colleges, or universities from another state.
092.03 The educational institution 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. In those instances where approval or accreditation is a requirement for an educational institution, the Department of Education may be contacted. Educational institutions approved for exemption from payment of sales and use tax are issued an Exempt Organization Certificate of Exemption. This certificate assigns the institution an exemption number (05-XXXXXXX) which must be used in claiming its exemption.
092.04 The institution 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.
092.05 Only the institution issued an Exempt Organization Certificate of Exemption may make purchases to be used by and for the purposes of the institution without payment of sales or use tax.
092.06 Affiliated or subsidiary organizations, including student organizations or parent-teacher-student organizations, although operating in support of or under the guidance of an exempt institution, may not use the exempt institution's certificate of exemption.
092.06A The sales and use tax exemption does not extend to a person purchasing property or services to be given or donated to an exempt institution. For an item to be purchased exempt, the person must donate the funds, and the institution must purchase the item. A retailer donating inventory to an exempt institution is required to pay the use tax on the item donated.
092.06B An exempt institution 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 institution may then apply for a refund.
092.07 An educational institution is required to collect sales tax on sales of property and services made by the institution to the general public or to the members of the institution. The educational institution may make the following sales without collecting tax. An organization approved by the educational institution may make the sales specified in the following subparagraphs without collecting tax.
092.07A Admissions charged by public or private elementary or secondary schools or school districts;
092.07B Admissions charged by student organizations or parent-teacher associations to an event or activity in a public or private elementary or secondary school during the regular school day or at an approved function of the school;
092.07C Meals and food products, including soft drinks and candy, served during the regular school day or at school functions not open to the general public, sold by:
092.07C(1) An elementary or secondary school or school district;
092.07C(2) A student organization or parent-teacher association of an elementary or secondary school; and
092.07C(3) An institution of higher education, public or private.
092.07D Concession sales of food by elementary and secondary schools at events including those open to the public;
092.07E Sales by parent-booster clubs, parent-teacher associations, parent-teacher-student associations, or school-operated stores approved by elementary or secondary schools if the proceeds are used to support school activities or the school itself;
092.07F The occasional rental of rooms or accommodations regularly used to house students in dormitories or facilities operated by an educational institution established under Chapter 79 or 85 of the Nebraska Revised Statutes.
092.08 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 the sale. When the institution purchases the property for resale, it shall complete a Nebraska Resale or Exempt Sale Certificate, Form 13, section A, and give it to its supplier. This certificate or an approved substitute, shall be issued in accordance with Reg-1-013, Sale for Resale-Resale Certificate.
Section 77-2704.10, R.R.S. 2003 and sections 77-2704.12 and 77-2704.25, R.S.Supp., 2005. March 7, 2006.
