Who May Issue a Resale Certificate. Purchasers are to give the
seller a properly completed Form 13, Section A, when making purchases
of property or taxable services that will subsequently be resold in the
purchaser’s normal course of business. The property or services must be
resold in the same form or condition as when purchased, or as an ingredient
or component part of other property that will be resold.
Who May Issue an Exempt Sale Certificate. Form 13, Section B,
may be completed and issued by governmental units or organizations that
are exempt from paying Nebraska sales and use taxes. See this list in the
Nebraska Sales Tax Exemptions Chart. Most nonprot organizations are
not exempt from paying sales and use tax. Enter the appropriate number
from “Exemption Categories” (listed below) that properly reects the basis
for your exemption.
For additional information about proper issuance and use of this certicate,
please review Reg-1-013, Sale for Resale – Resale Certificate, and
Reg-1-014, Exempt Sale Certicate.
Contractors. Contractors complete Form 13, Section C, part 1 or part 2
based on the option elected on the Contractor Registration Database.
To make tax-exempt purchases of building materials and xtures, Option
1 or Option 3 contractors must complete Form 13, Section C, Part 1. To
make tax-exempt purchases of building materials and xtures pursuant
to a construction project for an exempt governmental unit or an exempt
nonprofit organization, Option 2 contractors must complete Form 13,
Section C, Part 2. The contractor must also attach a copy of a properly
completed Purchasing Agent Appointment and Delegation of Authority for
Sales and Use Tax, Form 17, to the Form 13, and both documents must be
given to the supplier when purchasing building materials. See the contractor
information guides and Reg-1-017, Contractors, for additional information.
Also, see the Important Note under “Exemption Categories” number 3.
When and Where to Issue. The Form 13 must be given to the seller
at the time of the purchase to document why sales tax does not apply
to the purchase. The Form 13 must be kept with the seller’s records for
audit purposes.
Sales Tax Number. A purchaser who is engaged in business as a
wholesaler or manufacturer is not required to provide an ID number when
completing Section A. Out-of-state purchasers may provide their home state
sales tax number. Section B does not require a Nebraska ID number when
exemption category 1, 2, or 5 is indicated.
Fully Completed Resale or Exempt Sale Certificate. A fully
completed resale or exempt sale certificate is proof for the retailer
that the sale was for resale or is exempt. For a resale certicate to be
fully completed, it must include: (1) identification of the purchaser
and seller, type of business engaged in by the purchaser; (2) sales
tax permit number; (3) signature of an authorized person; and
(4) the date of issuance.
For an exempt sale certicate to be fully completed, it must include:
(1) identication of purchaser and seller; (2) a statement that the certicate
is for a single purchase or is a blanket certicate covering future sales;
(3) a statement of the basis for exemption, including the type of activity
engaged in by the purchaser; (4) signature of an authorized person; and
(5) the date of issuance.
Penalties. Any purchaser who gives a Form 13 to a seller for any purchase
which is other than for resale, lease, or rental in the normal course of the
purchaser’s business, or is not otherwise exempted from sales and use tax
under the Nebraska Revenue Act, is subject to a penalty of $100 or ten times
the tax, whichever is greater, for each instance of presentation and misuse.
In addition, any purchaser, or their agent, who fraudulently signs a Form 13
may be found guilty of a Class IV misdemeanor.
Exemption Categories
(Insert appropriate number from the list below in Section B)
1. Governmental units, identied in Reg-1-072, United States Government
and Federal Corporations; and Reg-1-093, Governmental Units.
Governmental units are not assigned exemption numbers.
Instructions
Sales to the U.S. government, its agencies, instrumentalities, and
corporations wholly owned by the U.S. government are exempt from
sales tax. However, sales to institutions chartered or created under
federal authority, but which are not directly operated and controlled by
the U.S. government for the benet of the public, generally are taxable.
Purchases by governmental units that are not exempt from Nebraska
sales and use taxes include, but are not limited to: governmental units
of other states; sanitary and improvement districts; rural water districts;
railroad transportation safety districts; and county historical societies.
2. Purchases when the intended use renders it exempt. See Nebraska Sales
Tax Exemption Chart.
3. Purchases made by organizations that have been issued a Nebraska Exempt
Organization Certificate of Exemption (Certificate of Exemption).
Reg-1-090, Nonprofit Organizations; Reg-1-091, Religious
Organizations; and Reg-1-092, Educational Institutions, identify these
organizations. These organizations are issued a Certicate of Exemption
with a state ID number which must be entered in Section B of Form 13.
Important Note: Nonprot educational institutions must be accredited
regionally or nationally and have their primary campus in Nebraska to be
exempt from sales and use tax. Also nonprot organizations providing
any of the types of health care or services that qualify to be exempt
must be licensed or certied by the Nebraska Department of Health and
Human Services (DHHS) to be exempt from sales and use taxes. There
is no sales and use tax exemption prior to these entities being accredited,
licensed, or certied. They CANNOT issue either a Resale or Exempt
Sale Certicate, Form 13, or a Purchasing Agent Appointment, Form 17,
to any retailer or contractor relating to purchases of building materials
for construction or repair projects performed prior to being accredited,
licensed, or certied. After an entity becomes accredited, licensed, or
certied upon completion of the construction project, it may submit a
Form 4.
Nonprofit health care organizations that hold a Certificate of
Exemption are exempt for purchases for use at their facility, or portion
of the facility, covered by the license issued under the Nebraska Health
Care Facility Licensure Act. Only specic types of health care facilities
and activities are exempt. Purchases of items for use at facilities that
are not covered under the license, or for any other activities that are
not specically exempt, are taxable. The exemption is not for the entire
organization that oers dierent levels of health care or other activities,
but is limited to the specic type of health care that is exempt. Purchases
for non-exempt types of health care are taxable.
4. Purchases of motor vehicles, trailers, semitrailers watercraft, and aircraft
used predominately as common or contract carrier vehicles; accessories
that physically become part of the common or contract carrier vehicle;
and repair and replacement parts for these vehicles. The exemption ID
number must be entered in Section B of the Form 13. An individual or
business that has been issued a common or contract carrier certicate of
exemption may only use it to purchase those items described above prior
to the expiration date on the certicate. The certicate of exemption
expires every 5 years. (See Nebraska Common or Contract Carrier
Information Guide).
5. Purchases of manufacturing machinery and equipment made by a
person engaged in the business of manufacturing, including repair
and replacement parts or accessories, for use in manufacturing. (See
Reg-1-107, Manufacturing Machinery and Equipment Exemption).
6. Occasional sales of used business or farm machinery or equipment
productively used by the seller as a depreciable capital asset for more
than one year in his or her business. The seller must have previously
paid tax on the item being sold. The seller must complete, sign, and
give the Exempt Sale Certicate to the purchaser. (See Reg-1-022,
Occasional Sales). The Form 13 must be kept with the purchaser’s
records for audit purposes.
