093.01 Governmental units are only exempt if they are specifically listed in either 093.04 or 093.05 of this regulation. Provisions concerning school districts are discussed in Reg-1-092, Educational Institutions. Governmental units are not assigned exemption numbers.
093.02 Employees of governmental units are not exempt. The employees are not exempt even when the governmental unit will be reimbursing them for expenses incurred, such as travel expenses.
093.03 An exemption from sales and use tax has been granted to the United States government, (see Reg-1-072, United States Government and Federal Corporations, for organizations considered a part of the United States government)
093.04 An exemption from sales and use tax has been granted to the following units of government. The exemption granted to any governmental unit in this subsection does not include any departments or portion of the governmental unit that sells electricity, gas, heat, or water. The governmental unit will be taxed the same as any other utility company. (Reg-1-066, Sewer and Water, and Reg-1-089, Energy Source Utility Exemption.) The exempt units are:
093.04A The State of Nebraska;
093.04B A Nebraska drainage district;
093.04C A Nebraska county;
093.04D A Nebraska elected county fair board;
093.04E A Nebraska county library;
093.04F A Nebraska township;
093.04G A Nebraska city;
093.04H A Nebraska municipal library;
093.04I A Nebraska village;
093.04J A Nebraska airport authority;
093.04K A Nebraska natural resource district;
093.04L A Nebraska rural or suburban fire protection district ; and
093.04M A Nebraska local or regional housing agency.
093.05 An exemption from sales and use tax has been granted to the following units of government. The exemption granted to any governmental unit in this subsection includes any departments or portion of the governmental unit that sells electricity, gas, heat, or water, and applies to any such activities performed by the governmental unit.
0093.05A A Nebraska irrigation or reclamation district; and
0093.05B The irrigation district of any Nebraska public power and irrigation district.
093.06 All governmental units not listed in 093.04 or 093.05 must pay the tax. Governmental units that must pay the tax include, but are not limited to:
093.06A County agricultural societies;
093.06B County historical societies;
093.06C Railroad transportation safety districts;
093.06D Rural water districts;
093.06E Sanitary and improvement districts;
093.06F Other states and units of government in other states;
093.06F(1) Other states and units of governments in other states are exempt on the purchase of industrial equipment in this state, provided the other state grants a similar exemption to Nebraska and its units of government; and
093.06G Weed districts.
093.07 Organizations such as the following which are not governmental units but which may assist in performing governmental functions are taxable:
093.07A Volunteer fire departments;
093.07B Corporations created under the Nebraska Nonprofit Corporation Act of the Nebraska Revised Statutes;
093.07C Institutions chartered or created under federal authority, but not directly operated and controlled by the United States government; and
093.07D Organizations using funds or grants from governmental entities.
093.08 An organization established under the Nebraska Interlocal Cooperation Act by exempt governmental units may make purchases for its use without payment of tax. If any of the members are not exempt, then the organization is not exempt on any of its purchases.
093.09 An enumerated governmental unit making purchases must issue its suppliers a Nebraska Resale or Exempt Sale Certificate, Form 13, section B. An enumerated governmental unit will receive the benefit of its exemption on construction or repair projects by following the provisions of Reg-1-017, Contractors.
093.10 All governmental units of the state will collect tax on their sales.
093.11 Sales by agencies and corporations of the federal government are not exempt. The tax shall be collected and remitted by such agency or corporation unless such collection is specifically prohibited by federal law.
093.11A If collection of the tax is prohibited by federal law, the purchaser shall pay the tax directly to the Department of Revenue.
093.12 Any governmental unit may purchase property for resale. It shall issue a Nebraska Resale or Exempt Sale Certificate, Form 13, section A, to its supplier. (Reg-1-013, Sale for Resale-Resale Certificate).
(Section 21-1901, R.R.S. 1997, and sections, 77-2704.16, 77-2704.17, , 77-2704.19, and 77-2704.20, R.R.S. 2003, and section 77-2704.15, R.S.Supp. 2008. February 22, 2009.)