What is the Nebraska Economic Nexus?

Alexander Dunn
January 13, 2021

Prior to the South Dakota v. Wayfair, Inc. decision, Nebraska could not require remote sellers to collect sales tax on sales made to customers in the state. However, there is now a Nebraska economic nexus following the Wayfair decision. The Nebraska Department of Revenue explains that this does not create a new tax, but just clarifies which businesses must collect sales tax. We have outlined the key points below.

Enforcement date:
January 1, 2019.

Sales/transactions threshold:
$100,000 or 200 transactions.

Measurement period:
Threshold applies to the previous or current calendar year.

Included transactions/sales:
Retail sales of tangible personal property delivered into the state.

When You Need to Register Once You Exceed the Threshold:
Next transaction.

Summary: Remote sellers selling tangible property and services subject to Nebraska sales tax must obtain a sales tax permit from the Nebraska Department of Revenue. Remote sellers must then begin collecting and remitting Nebraska state and local sales taxes if their retail sales, including sales made through a Multivendor Marketplace Platform (MMP), in Nebraska exceeded $100,000 in the previous year or current calendar year, or if the seller made 200 or more separate Nebraska retail sales transactions in the prior calendar year or current calendar year.

MMPs that exceed the threshold(s) mentioned above are retailers and must obtain a permit and begin collecting and remitting Nebraska and local sales taxes on sales they facilitate for others that are delivered or sourced to a Nebraska address.

Nebraska Sales Tax Resources: Contact our team for more information on the Nebraska economic nexus and sales and use tax changes. Also be sure to check out our interactive sales tax nexus map for real-time updates on each state.

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