FOR IMMEDIATE RELEASE:
August 17, 2012

FOR INFORMATION CONTACT:
Douglas A. Ewald, Tax Commissioner
402-471-5604

ESTIMATED SALES AND USE TAX REVENUE FROM REMOTE SALES

LINCOLN – The Omaha World-Herald, citing a report by the National Conference of State Legislatures (NCSL), had recently reported Nebraska’s estimated revenue loss due to uncollected sales and use tax on catalog and Internet purchases at $118 million annually. The Nebraska Department of Revenue’s Research Section (Department) estimates approximately $37 million in state and $8 million in local sales and use tax goes uncollected annually due to out-of-state businesses not collecting sales tax, and consumers not remitting use tax, on catalog and Internet purchases.

The Department’s estimate incorporates a number of assumptions made in the NCSL report; however, it estimates a higher rate of tax compliance by businesses, particularly larger businesses, and a narrower tax base than used in the NCSL report.

The Department encourages all Nebraska taxpayers to remit use tax on their catalog and Internet purchases by filing the Nebraska and Individual Consumer’s Use Tax Return, Form 3, or on the applicable lines of their annual income tax return. For additional information, please visit the Department’s website: www.revenue.ne.gov.

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APPROVED:
Douglas A. Ewald
Tax Commissioner