What are Nebraska’s updated sales tax advertising rules?

Nebraska’s DOR prohibits sellers from advertising that they will pay or absorb sales tax for customers or implying that sales tax is excluded from the selling price.

When were the updated Nebraska sales tax advertising guidelines released?

The Nebraska Department of Revenue (DOR) updated the Unlawful Advertisements Referring to Sales Tax Guidelines on December 9, 2024.

What advertising terms are prohibited under Nebraska’s sales tax rules?

Prohibited terms include "tax-free sale," "pay no sales tax," "we will pay your sales tax," "tax credit sale," and similar language that misleads consumers about sales tax.

Are sellers required to show sales tax separately on invoices?

Yes, sellers must list the full sales tax amount separately from the selling price on invoices for taxable retail sales, including furniture, electronics, and motor vehicles.

What are the consequences of violating Nebraska’s sales tax advertising rules?

Sellers who use prohibited sales tax advertising practices may face penalties or enforcement actions from the Nebraska Department of Revenue.

How can businesses ensure compliance with Nebraska’s sales tax advertising rules?

Businesses can contact the Nebraska DOR before launching advertising campaigns to confirm compliance with the updated sales tax advertising regulations.

Nebraska DOR Updates Sales Tax Advertising Rules: Key Compliance Guidelines

Sales tax rules across the US can be challenging for both in-state and out-of-state sellers. To help taxable persons comply more successfully with various regulations and requirements, the state Department of Revenues and similar state governing bodies issue and update relevant guidelines regularly.

The Nebraska Department of Revenue (DOR) updated one such guideline regarding unlawful advertisements referring to sales tax, to remind and provide additional information to sellers subject to sales tax.

Impact on Taxable Persons

The Nebraska DOR updated the 2018 Unlawful Advertisements Referring to Sales Tax Guidelines on December 9, 2024. As the guidelines state, sellers cannot advertise or imply that they will pay, assume, or absorb sales taxes for their consumers or that sales tax will be excluded from the selling price.

The DOR lists some examples of language practices that are forbidden in advertisements, including wording such as tax-free sale, pay no sales tax, purchases will be discounted by the amount of the sales tax, we will pay your sales tax, tax credit sale, sales tax stimulus sale, and similar.

Furthermore, the guidelines highlight that sellers must charge the full amount of sales tax on taxable retail sales and collect it separately from the selling price. Sellers of properties subject to sales tax, furniture, and electronics, must also expressly state the sales tax amount on invoices issued to consumers. Even the motor vehicle sellers must state the sales tax amount on their invoices, although the consumer will pay the tax to the county treasurer.

Conclusion

Although the guidelines are advisory for sellers and only binding on the Nebraska DOR, sellers must pay attention to the stated rules and regulations. The DOR will act accordingly and penalize those who commit prohibited advertising practices.

Sellers may contact DOR before releasing their advertising campaign to ensure that their advertisements comply with the regulations and that their language is appropriate.

Source: Unlawful Advertisements Referring to Sales Tax