Neb. Admin. Code § 316-68-005 — Exempt Sale Certificates

005.01 The burden of proving that any charge for a hotel occupancy is not subject to the lodging tax is upon the permitholder and he or she must keep sufficient records which reveal the nature of each exempt charge. A permitholder is required to obtain an exempt sale certificate from the organization or person in support of the claim that the charge is exempt. The exempt sale certificate constitutes a part of the permitholder's records and is to be retained in the same manner as other lodging tax records. 005.02 The Nebraska Department of Revenue will recognize only the Nebraska Resale or Exempt Sale Certificate, Form 13, a previously approved paper or electronic substitute, or a certificate of exemption authorized by the Streamlined Sales Tax Agreement for all sales except sales to the federal government. Regular federal certificate of exemption forms will also be accepted in lieu of the above forms when presented by an officer or an authorized employee of the United States government, its agencies, or corporations wholly owned by the United States government. The exempt sale certificate should include a statement as to the nature of the exempt charge and the sales and use tax exemption number of the occupant if such number is required. 005.03 Exemption numbers, in the form of sales and use tax numbered certificates of exemption, are issued by the Nebraska Department of Revenue and are required for nonprofit organizations, and public schools. (Reg-68-004, Exemptions.) 005.04 The exempt sale certificate may appear as part of the invoice or billing for the occupancy; provided, that all requirements of the exemption certificate(s) identified in Reg-68-005.02 are met, and that the permitholder cross-references such invoices or billings to memoranda created at the time of the charge. 005.05 If a certificate or satisfactory evidence cannot be produced on demand of the Nebraska Department of Revenue in support of a claim that a charge is exempt, the tax is payable by the permitholder furnishing the hotel occupancy. If the Nebraska Department of Revenue determines that the permitholder knew or should have known that the charge for which a certificate was given was not exempt, the permitholder will be responsible for the tax. 005.06 The permitholder holding a properly completed exempt sale certificate is relieved from liability for tax, penalty, and interest. However, this does not apply to permitholders who frauduently fail to collect tax or who solicit purchasers to participate in unlawful claims of exemption. 005.07 A permitholder repeatedly providing exempt hotel occupancies to the same occupant is not required to take a separate exempt sale certificate for each hotel occupancy but maytake a blanket certificate covering future charges for hotel occupancies. 005.08 Any person who gives a Nebraska Resale or Exempt Sale Certificate, Form 13, to a permitholder for any purchase which is not exempted from the lodging tax shall be subject to a penalty of $100.00 or ten times the tax, whichever amount is larger, for each instance of presentation and misuse. With regard to a blanket certificate, the penalty shall apply to each purchase made during the period the blanket certificate is in effect. Any person who fraudulently signs a Form 13 with the intention to avoid payment of the tax may, in addition to the aforementioned penalty, be found guilty of a Class IV misdemeanor. 005.09 The Nebraska Department of Revenue may make and retain copies of any exempt sale certificate. (Section 81-1260, R.R.S.1999. March 7, 2006.)