Neb. Admin. Code § 316-9-004 — Authorization for Counties

004.01 Permissible Rates of Tax, Restrictions on Proceeds. A county may authorize and impose a local sales and use tax at a rate of ½%, 1%, or 1½ % by resolution of the county board after the tax has been approved by a majority of votes cast in a county or state general, primary, or special election held within the county. 004.01A Any county sales and use tax applies to retail sales sourced within the boundaries of the county, except that a county sales and use tax does not apply within the boundaries of any incorporated city which has a local sales and use tax pursuant to Neb. Rev. Stat. § 77-27,142, even if: 004.01A(1) The rate imposed by the city is lower than the rate imposed by the county; 004.01A(2) The city adopted its local sales and use tax after the adoption of the county sales and use tax; or 004.01A(3) The city changed its boundaries. 004.01B Any sales and use tax imposed pursuant to this section must be used to finance public services provided by a public safety commission or to provide the county share of funds required under an agreement executed under the Interlocal Cooperation Act or Joint Public Agency Act. 004.01C Adoption of a local sales and use tax by a city, or annexation by a city with a local sales and use tax which occurs after the adoption of a local sales and use tax by a county, will reduce the area of the county subject to the existing county sales tax as of the effective date for local sales tax changes as provided in Reg-9-002.05, Reg-9-003.05, and Reg-9-007.02. 004.02 Vote at an Election Required. The election required for approval of a county sales and use tax may be held as part of any county or state general, primary, or special election held within the county. 004.02A The question authorizing adoption of a local sales and use tax must include the following language: "Shall the county impose a sales and use tax upon the same transactions within the county, other than in municipalities which impose a local option sales tax, on which the State of Nebraska is authorized to impose a tax to finance public safety services?" 004.02B The question authorizing adoption of a local sales and use tax must be initiated by vote of the governing body. Notice of the question must be given by publication, as required by Neb. Rev. Stat. § 13-323. 004.03 Resolution Required. If the question is approved by a majority of the votes cast at the election, the county must adopt a resolution imposing the sales and use tax in accordance with its statutory authority. If the resolution states an operative date, the operative date must be the first day of a calendar quarter. 004.04 Notification to the Department Required. When the governing body of a county adopts a local sales and use tax: 004.04A The county must furnish the Department a certified copy of the resolution imposing the tax; and 004.04B The county election commissioner must furnish the Department a certified copy of the election results to the question submitted to the electors. 004.04C For purposes of this regulation, the certified materials may be furnished by mail or by electronic means. 004.05 When Operative. The implementation of the sales and use tax cannot begin until the first day of the calendar quarter that is at least 120 days following receipt by the Department of the certified materials. The certified materials must be provided in the timelines provided in Reg-9-006, Cities and Counties – Timelines for Submitting Certified Materials to the Department. 004.06 Termination. For resolutions containing a termination date, the termination date must be the first day of a calendar quarter. 004.06A The county must furnish a certified statement to the Department at least 120 days and no more than 180 days prior to the termination date stating that the termination date in the resolution is still valid. 004.06B If the certified statement is not furnished within this time, the tax will remain in effect, and the Department will continue to collect the tax until the first day of the calendar quarter which is at least 120 days after receipt of the certified statement, notwithstanding the termination date stated in the resolution. (Neb. Rev. Stat. §§ 13-319, 13-320, 13-322, 13,323, 13-324, and 13-326. November 17, 2013.)