Do I Charge Sales Tax On Services?

This guidance certificate is advisory in nature only is bounden on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose boosted requirements or penalties on regulated parties or include confidential data or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.

This guidance document may alter with updated information or added examples. DOR recommends you lot do not print this document. Instead, sign upward for the subscription service at revenue.nebraska.gov to go updates on your topics of involvement.

Pest Command Services

Are pest command services purchased by a contractor and performed at a construction site discipline to tax?

Yes Charges for pest control services performed before, during, or after construction are discipline to tax. The contractor cannot purchase such services tax-gratuitous (for resale) considering this service is not considered contractor labor for sales tax purposes. Nor can such services be purchased tax-costless under aPurchasing Amanuensis Appointment, Course 17, issued past the governmental unit or exempt entity.

Tin can I buy my chemicals and other supplies for resale?

No. Yous are the consumer of all chemicals and supplies used in providing your pest command services and must pay sales or use revenue enhancement on all purchases of materials, supplies and equipment used to provide your service.

I provide pest control services to farmers and ranchers. Are these services subject area to sales revenue enhancement?

No. Pest control applications fabricated to crops or state used in commercial agronomics are non field of study to sales tax. This includes applications made to grain storage or livestock facilities on the farm. All other pest control applications on the subcontract are taxable.

Are pest control services contracts which are in effect prior to October 1, 2002, subject to tax?

Sales taxation applies to all payments for pest command services recorded as a sale on and subsequently October ane, 2002.

Are charges for a single awarding of a product containing both insecticide and fertilizer subject area to tax?

Yes. Charges for the single awarding of a blended product containing both pest control chemicals and fertilizer or weed control chemicals are field of study to tax. A retailer is not allowed to collect tax on only a portion or percentage of the charge (for insecticide) when both products are commingled in a single application.

Is someone who inspects and treats trees for emerald ash tapping infestation providing a taxable pest command service?

Yes. A person who inspects and treats copse for infestation of emerald ash borers is providing taxable pest command services. Retailers of pest control services must agree a Nebraska sales and use taxation permit and collect the Nebraska and applicable local (city) sales tax on charges for these services. These charges must be shown on an invoice separate and apart from your non-taxable charges, otherwise the entire invoice amount is field of study to sales tax. Retailers have certain administrative responsibilities for collecting and remitting sales tax. These responsibilities are summarized in our Information Guide titled " Nebraska and Local Sales Tax."

Edifice Cleaning and Maintenance

Is structure site clean-upwardly subject to tax?

Yes. Charges for the clean-up of a building under construction are subject to tax. Contractors cannot purchase such services tax-gratuitous (for resale) from a 3rd political party. This service is not considered contractor labor for sales revenue enhancement purposes. Nor can such services be purchased tax-costless under a Purchasing Agent Appointment, Form 17, issued by the governmental unit or exempt entity.

Are charges to clean a furnace, air conditioner, heat pump, duct work, or drains taxable?

Yep. Building cleaning services includes any piece of work done to make clean a fixture that has been annexed to existent manor. This includes cleaning a furnace, air conditioner, heat pump, duct work, sewer, and drains located in or attached to a building. Such work in not considered contractor labor.

What happens when a contractor responds to a service call to repair a furnace blower and as well takes a few minutes to change out the furnace filter?

An Option one contractor must collect sales revenue enhancement on the full amount charged for the furnace filter and parts and will not collect any tax on his or her labor charge provided it is separately stated. Pick 2 and 3 contractors will pay or remit revenue enhancement on the furnace filter and repair parts according to their option and will not collect any tax on the amount charged to repair the furnace.

Is the charge to clean a edifice after a fire or flood subject to tax?

Yes. Charges forcleaning the interior or exterior of a building and its contents later a fire, inundation, or similar disaster are subject to tax. Labor charges to repair or supersede part or all of the building are non taxable.

Is the charge to winterize an underground sprinkler organisation subject to tax?

No. Charges for services such as the blowout and draining of the underground pipes and sprinkler heads are not taxable.

Tin can I purchase my cleaning supplies tax free?

No. You are the consumer of all supplies used in providing your cleaning and maintenance services and must pay sales or utilise taxation on all purchases of materials, supplies and equipment used to provide your service.

Does taxable edifice cleaning and maintenance include property attached to the outside of a building?

Yes. Examples would exist an awning, a sign, or an attached deck.

Does building cleaning and maintenance service include picking upwards containers of grease from a restaurant?

No. The charge to choice-up and dispose of or take the containers of grease to a recycling middle is not taxable.

Does building cleaning and maintenance service include removing grease from a drove pit located in a edifice?

Yes. The charge for removing the grease from the collection pit is taxable.

If I but charge to inspect a home and its heating and ac systems (HVAC) related to the purchase of a dwelling house, am I required to collect sales taxation on such charges?

No. These inspection charges are normally but to determine if the heating and ac systems are operating properly.

However, if the inspectorboth inspectsand cleans the HVAC arrangement and itemizes the different charges, only the accuse to make clean the HVAC system is taxable. If one amount is charged to both inspect and clean the HVAC system, the entire charge is taxable.

If the inspector inspects the HVAC organization and determines information technology needs to be repaired and performs the repair work, the inspector is considered to exist a contractor for the repairs performed. As a contractor, the inspector is required to be registered in the Contractor Registration Database, and charges for materials and labor to repair the HVAC system will be taxed in the following manner:

An Option 1 contractor must collect sales tax on the total amount charged for any materials and volition not collect any tax on separately stated charges for the inspection and repair labor. If the charges are not separately stated, the entire charge is taxable.
An Option ii or Option 3 contractor volition not collect any sales tax on the amount charged to the customer.

Installation or Application of Tangible Personal Property

Is the application of agricultural chemicals to country or crops on the farm (commercial agriculture) or to food producing animals a taxable application service?

No, the agricultural chemicals are exempt in this state of affairs. Come across Sales and Apply Taxation Regulations i-061 and 1-063.

I install a born dishwasher for my customer. Is the installation charge subject to sales tax equally a taxable installation service?

No, since a built-in dishwasher is considered annexed to real estate, normal installation labor rules for personal property do non employ. The person "installing" the dishwasher is a contractor. Contractors must elect between three options to show how they volition collect sales tax (Choice 1) pay sales tax (Option two), or remit employ tax (Option 3) on building materials that are annexed. The contractor's labor is more often than not not taxable. An option i contractor must collect sales tax from its client on the selling price of the dishwasher. No sales taxation will be charged on the installation labor equally long as the labor charge is separately stated from the price of the dishwasher.

Option 2 or iii contractors do non separately charge taxation on their customer's invoice for the dishwasher or their installation labor. An Selection 2 contractor pays sale tax to its supplier when purchasing the dishwasher, and an Option three contractor remits use tax to DOR on its purchase price of the dishwasher. Run into Reg-1-017, Contractors for more data.

Motor Vehicle Towing

If I tow a wrecked vehicle from the crash site to a belongings facility in Nebraska, am I required to accuse sales tax on the corporeality charged for towing?

Yeah. The charge is taxable regardless of who y'all bill, fifty-fifty if the wrecked vehicle is later totaled by the insurance company.

If you are later hired to tow this wrecked vehicle from the holding facility to the salvage yard, and yous charge a split fee for this tow, such accuse is not subject to sales taxprovided the salvage yard is a licensed motor vehicle dealer. The save yard can result a Nebraska Resale or Exempt Sale Certificate, Class xiii, to you when this vehicle will get an inventory vehicle of the salvage yard.

Is a wrecked or totaled vehicle considered an auto hulk or crushed vehicle?

Can I purchase motor vehicle towing services for resale?

Yes, but just if your business concern is engaged in motor vehicle towing and you "farm out" or farm a tow job to another towing company. You may give that company a resale document to avoid paying sales revenue enhancement when that visitor bills you. You will so collect tax on the total amount you accuse your client for the towing service.

I own an car engine repair shop. We take an outside service tow for united states of america. We pay the tow company for the tow, plus tax. And so we charge our customer a marking-upward for the tow. Do we collect sales revenue enhancement on this marked-upward charge?

No. Since you are not providing towing services to your customer (you are simply repairing the vehicle), y'all should not exist charging tax to the customer for "towing." You can compensate the price of the tow (including revenue enhancement) paid to the tow company past passing this cost on to your customer. Your bill to your customer should include the accuse for the tow along with any other labor charges. There will be no dissever tax collected by yous on the tow charge, including whatever mark-upward.

Are towing services provided for under a warranty or maintenance understanding discipline to tax?

What if the towing charge is paid for by an insurance company or volition exist reimbursed past insurance?

The amount charged for vehicle towing is taxable.

Is the sale of a warranty or service understanding that covers towing taxable?

Yes. Although whatever accuse for bodily towing services performed under such an agreement would not be taxable. However, if the owner of the motor vehicle pays for towing but is later reimbursed past an insurance company, the charge for towing is taxable.

Is a motor society membership taxable every bit a service agreement for towing?

No, every bit long as the motor club membership provides other services and benefits besides towing.

Is a motor club taxable when it pays for towing a member's vehicle and on what amount do I collect sales taxation when I nib the motor club?

The charge to the motor club for towing is taxable. The taxable corporeality is the amount the motor club pays for the tow.

Does towing include winching or uprighting a motor vehicle?

Yes. Motor vehicle towing consists of towing, pulling, transporting, winching, or uprighting an overturned motor vehicle. Therefore, the charge to winch a motor vehicle out of a ditch or upright an overturned vehicle by using a winch, air bags, or a crane is taxable.

Are mileage charges for towing a motor vehicle part of gross receipts and taxable?

Yeah. The mileage charge for towing a motor vehicle is taxable, even if the mileage charge is separately itemized or separately invoiced.

Is the accuse for towing a repossessed motor vehicle taxable?

Yes, with the exception of towing charges billed to a company that holds a motor vehicle dealer's license, finance visitor license, sale dealer license, or wrecker or salvage dealer license issued past the Nebraska Motor Vehicle Industry Licensing Board (Board) for purposes of delivering the motor vehicle to the license holder's inventory. The towing company's records must include documentation that the company they are billing holds a license issued by the Board. This documentation could include a copy of the page the company is listed on from the Board'south dealer listing. An entity that tows a motor vehicle for a repossession company that is not a licensed motor vehicle dealer is providing taxable motor vehicle towing.

Are towing companies that charge for cleanup or for off-loading a disabled vehicle required to collect sales tax on such charges?

No. The charges for off-loading and cleanup of the wreckage site are non taxable provided such charges are separately itemized on the billing invoice or separately invoiced and such statement is not used as a ways of fugitive the imposition of the sales taxation upon the bodily charge for the towing service.

Motor Vehicle Painting

I am a motorcar dealer. When I take my inventory vehicles to have them touched up, re-striped, airbrushed, etc., am I supposed to pay sales tax to my vendors?

Are motor vehicle painting services which are billed to a Common or Contract Carrier subject to sales tax?

Motor Vehicle Washing and Waxing

Can I purchase my lather, wax, and other supplies for resale?

No. Yous are the consumer of all materials and supplies used in providing your washing and waxing services, and must pay sales or use revenue enhancement on all purchases of such materials and supplies used to provide your service.

Practise gross receipts from providing money-operated motor vehicle washing and waxing services include coin-operated vacuuming?

No, provided the vacuuming receipts are accounted for separately.

Our nonprofit organization is conducting a motorcar wash to enhance funds for a camping ground trip. Is this a taxable service?

The gross receipts from motor vehicle washing services are taxable. If your nonprofit organisation chooses non to set a fee or accuse for its car wash and volition accept a free-will donation, the costless-will donation is non taxable. The organization must post a sign that states "free-will donations accepted." If the organisation charges a specific amount for washing, it must have a sales revenue enhancement permit and collect sales taxation on the amount charged for washing the vehicles.

Our church is conducting a car launder to raise funds for the organization. Is this a taxable service?

In addition to the above reply on complimentary-volition donations, a religious organization may have ane sale a year that is not taxed. The sale may concluding up to iii consecutive days. (Come across Sales and Use Revenue enhancement Regulation 1-091.07B). A machine launder with a set charge could exist conducted during the once a year auction without collecting tax.

Our school is conducting a motorcar wash to heighten funds for a band trip. Is this a taxable service?

If a schoolhouse or schoolhouse group conducts a auto wash, and the proceeds from the car launder are used to back up school activities or the schoolhouse itself, the service is not taxable even if a specific accuse is set for the car wash. (Meet Sales and Use Taxation Regulation 1-092)

Tin can a motor vehicle dealer purchase detailing services for resale?

No. A motor vehicle dealer must pay tax on detailing services purchased for any of its inventory vehicles.

Security Services

I accidentally locked my keys in the car and called a locksmith to open the vehicle for me. Is this a taxable security service?

No. This is not considered a taxable security service.

Are security services contracts in event prior to October 1, 2002, subject to tax?

Sales tax applies to all payments for security services recorded as a sale on and after Oct 1, 2002.

Are charges for monitoring services for patients or residents of a nursing habitation subject to tax?

No. Nursing homes and other healthcare facilities are non retailers of security services.

Are charges for in-habitation health care monitoring services subject area to tax?

Yep. Charges for in-home medical and panic alarm monitoring services are subject to tax.

Are off-duty police officers who simply provide traffic command services providing security services?

No. Even so, if the officeholder is providing traffic command services and also has other security service responsibilities for which he or she is being paid, the total amount charged is taxable.

Are off-duty police officers required to obtain a sales tax permit if they simply provide security services to organizations or entities that are exempt from paying sales and utilise taxes?

Do security services include the installation of the security system wires and monitoring equipment?

No. All security system wires and equipment (parts) that are annexed must be taxed based on the installer's contractor option. A definition of "annexed" is available in Nebraska Sales and Use Tax Regulation 1-017.02A.

All security system wires and equipment (parts) that are installed and remain tangible personal property after installation are retail sales, and the total amount charged for such items and installation is discipline to sales tax.

If the installation of a security system involves the installation of both tangible personal property and building materials that are annexed for ane amount, the total corporeality charged (materials and labor) is subject to sales tax.

Is a business which provides security services required to collect sales taxation on the accuse to repair the security system?

Computer Software and Training

I do non sell computer software, but I provide grooming in the utilize of diverse canned software applications which are purchased "off the shelf." Must I charge tax on my figurer software training services?

No. Your preparation services are taxable simply if you lot also sell the estimator software.

Fauna Specialty Services

Are charges for medicated baths taxable?

Charges for medicated baths for livestock are not taxable. Livestock is defined equally domesticated cattle, horses, mules, donkeys, sheep, and swine.

Charges for medicated baths for animals other than livestock, are taxable unless performed by a veterinary or veterinarian technician, as a role of a medical treatment of the beast.

Are charges for shearing or grooming animals taxable?

Charges for shearing or grooming livestock are not taxable. Livestock is defined every bit domesticated cattle, horses, mules, donkeys, sheep, and swine.

Charges for shearing or preparation animals other than livestock are taxable unless performed by a veterinary or veterinary technician as a part of a medical treatment of the animal.

Are charges for rendering or disposal of livestock taxable?

Charges for rendering or disposal services of livestock are not taxable. Refer to the previous answer for a definition of livestock. All rendering or disposal charges for animalsother than livestock aretaxable.

Detective Services

I am a licensed private detective hired to repossess a car. Is this service taxable?

Yes. Even so, if the service is provided by someone other than a licensed detective the accuse is not taxable.

I am a licensed private detective hired to investigate the crusade of a burn down. Is this service taxable?

If a licensed individual detective or detective agency is hired to determine the cause of a fire, the charge is taxable.

I am a licensed private detective hired by an exempt governmental bureau or exempt organization. Are charges billed to these entities subject to tax?

Charges billed by a detective or detective agency to an exempt governmental agency or exempt arrangement are not taxable, provided the customer issues a properly completed Nebraska Resale or Exempt Sale Certificate, Form 13. For boosted information regarding exempt governmental units and exempt organizations see Nebraska Sales and Use Tax Regulations 1-072, i-090, one-091, 1-092, and 1-093.

My private investigative business organisation is located in Omaha and I am hired to "follow" a person who lives in Lincoln. What city sales taxation is collected?

Detective services are taxed at theclient'due south primary residential or business accost in this state, regardless of the detective bureau'south location or the place(due south) the detective goes in performing its service.

If I perform investigative services merely am not a "licensed" detective, are my services field of study to sales tax?

No. Notwithstanding, Nebraska Revised Statute Section 71-3202, requires individuals and businesses performing individual detective services to be licensed with the Nebraska Secretary of Land'southward Private Detective Division.

I am a licensed private detective hired by an out-of-state customer to serve papers to a person in Nebraska, is this taxable?

Detective services are taxed at theclient's primary residential or business address in this state. Since the customer is located exterior this state, the detective's services are not taxable.

I am a licensed private detective hired by a Nebraska resident to serve papers to a person who is exterior of Nebraska, Is this taxable?

Detective services are taxed at thecustomer'southward primary residential or business organisation address in this land. Since the customer is located in this state, the detective's services are taxable.

Recreational Vehicle (RV) Park Services

Do RV park services include charges for the rental or charter of a site for a mobile abode that is annexed to existent property?

No. A mobile domicile annexed to real property is not considered a recreational vehicle.

If I operate an RV park that has a separate RV storage area, is the accuse for storage taxable?

No, as long as the RV is parked in the dissever storage area. Nonetheless, if the RV is actually parked at a pad site instead of in the storage surface area, the accuse would be subject to tax.

Repair or Maintenance Services

Are charges for repairing tires used on a licensable motor vehicle taxable?

No. Charges for repairing tires used on a licensable motor vehicle are exempt from revenue enhancement whether or not the tire is on the vehicle at the time of repair. Charges to repair tires that are not for a licensable motor vehicle are taxable.

Are charges to restore or refinish (paint or stain) tangible personal holding such as appliances and piece of furniture taxable?

Are charges for repairing and maintaining musical instruments, such every bit pianos, taxable?

Are charges for gunsmith services taxable?

Are charges for dry cleaning and laundering clothes taxable?

Charges for cleaning and laundering clothes are considered restoration services and are not taxable. Yet, charges for alterations and repairs such every bit mending or replacing a button are taxable. See Nebraska Sales and Apply Tax Regulation 1-048.

Are charges for sharpening tools and equipment taxable?

Are charges for the re-scale of machinery and equipment taxable?

I am hired to perform tests on mechanism or equipment to determine if it is performance properly. Are these testing charges taxable?

No. Services performed to merely test machinery or equipment are not considered taxable repair or maintenance labor. However, if whatever repairs are fabricated to the machinery or equipment, the total amount charged, including the charge for testing, is taxable.