Who Can Issue. Any governmental unit or nonprot organization that is exempt from sales and use tax may appoint a contractor
as its purchasing agent for building materials and xtures that will be annexed to property that belongs to or will belong to the
exempt governmental unit or exempt nonprot organization pursuant to a construction contract or covered under an on-call, repair,
or maintenance service agreement. Exempt governmental units and exempt nonprot organizations are identied in Sales and Use
Tax Regulations 1-072, 1-090, 1-091, 1-092, and 1-093.
Important Note: A nonprot organization that has not received its sales and use tax Exempt Organization Certicate
of Exemption, cannot issue either a Purchasing Agent Appointment and Delegation of Authority for Sales and Use Tax,
Form 17, or a Nebraska Resale or Exempt Sale Certicate for Sales Tax Exemption, Form 13.
Appointment Information. To appoint a contractor as its purchasing agent, the exempt governmental unit or exempt nonprot
organization must complete Section A. The phrase “upon completion” or similar phrase is not an acceptable expiration date. If the
project is not completed before the expiration date, a new purchasing agent appointment must be issued with the new effective and
expiration dates. The purchasing agent authority for the contractor becomes effective on the later of the “effective date” or the signature
date of the individual authorized to sign the Form 17 on behalf of the exempt governmental unit or exempt nonprot organization.
When To Issue. The qualied exempt nonprot organization or exempt governmental unit should issue the completed and signed
Form 17 to the contractor BEFORE the contractor annexes any building materials. If the Form 17 is not timely issued, the Option 2
or Option 3 general contractor must pay the sales and use taxes on all building materials annexed to real estate before the effective
date or signature date on the appointment.
Important Note: A copy of the completed Form 17 should be retained by the exempt governmental unit or exempt
nonprot organization. The original is to be retained by the contractor.
On-Call, Repair, or Maintenance Agreements. Exempt governmental units and exempt nonprot organizations, in lieu of
issuing a separate purchasing agent appointment to the same Option 2 or Option 3 contractor for each service call, may issue to
the Option 2 or Option 3 contractor a written on-call, repair, or maintenance agreement and purchasing agent appointment that
covers a calendar year or part of a calendar year. A new written agreement and purchasing agent appointment must be issued at
least each calender year.
Section B
Delegation of Contractor’s Authority. The contractor or subcontractor who has previously been delegated to be a purchasing
agent for a portion of the project may delegate his or her authority as the purchasing agent to other subcontractors for all or a portion
of the project. Contractors who are delegating their authority as the purchasing agent are only required to complete Section B.
Contractors and subcontractors must issue a separate Form 17 to each subcontractor to whom they are delegating their purchasing
agent authority. The purchasing agent authority for the subcontractor becomes effective on the later of the “effective date” or the
signature date of the contractor’s or subcontractor’s authorized individual.
If Section B is full and additional delegations are required, it is necessary for the contractor who is delegating his or her authority to
complete a new Form 17, Section B and provide a copy of the Form 17 between the exempt governmental unit or exempt nonprot
organization and the contractor. Reproductions of this delegation must be provided to the contractor, who must retain a copy for
his or her records, and to the governmental unit or exempt nonprot organization.
When To Issue. The delegation must be issued to the subcontractor BEFORE the subcontractor annexes any building materials.
If the Form 17, Section B, Delegation of Contractor’s Authority is not issued, the Option 2 or Option 3 subcontractor must pay the
sales and use taxes on all building materials annexed to real estate before the effective date or signature date on the appointment.
Other Contractor Information
Purchasing Tax Exempt Building Materials and Fixtures. Option 1 and Option 3 contractors who perform construction
work for an exempt governmental unit or exempt nonprot organization can purchase the building materials and xtures tax exempt
by issuing a properly and fully competed Form 13, Section C, Block 1, to its suppliers. It is not necessary for the Option 1 or Option
3 subcontractor to attach a copy of the Form 17 to its Form 13.
Option 2 contractors who perform construction work for an exempt governmental unit or exempt nonprot organization can purchase
the building materials and xtures tax exempt by issuing a properly and fully completed Form 13, Section C, Block 2, and a copy
of the Form 17 to its supplier. This delegation will not allow purchases of building materials and xtures without payment of the
tax by the contractor or subcontractor before the later of the effective date of the appointment or the signature date of the individual
authorized to delegate them as a purchasing agent. In addition, the appointment cannot be made after the expiration date of the
original appointment.
Form 13 and Form 17 must be retained with the supplier’s and contractor’s records for audit purposes. A contractor may reproduce
copies of these documents which can be furnished to the suppliers for each invoice or order made by them.
Invoices from suppliers for the purchase of building materials by a contractor as purchasing agent, or an authorized subcontractor,
must clearly identify that the purchase is for the specic Form 17 project.
Instructions
Section A
