NE 01-02-4 Sales and Use Tax 2002-09-30

Are purchases by an elected Nebraska County Fair Board exempt from sales and use tax, and what about an appointed board?

Short answer: Yes. Under Revenue Ruling 01-02-4 and Laws 2002, LB 123, purchases by an elected Nebraska County Fair Board are exempt from sales and use tax effective October 1, 2002. To buy tax free, the Board issues a Nebraska Resale or Exempt Sale Certificate (Form 13) to its vendor; because governmental units are not assigned exemption numbers (Reg 1-093.01), the Board indicates exemption category #1 on the Form 13. The exemption does not cover purchases used in furnishing gas, water, electricity, or heat. A Board may appoint a prime contractor as its purchasing agent to buy building materials annexed to Board property by issuing Form 17, but its exempt status cannot be extended to someone buying property or services to donate to the Board. Tax paid in error on or after October 1, 2002 can be refunded if the refund is $2.00 or more by filing Form 7. A county fair board with an appointed (rather than elected) membership is also exempt, because it operates as a division of county government.

Apply this to your situation

This page answers the general question as of 2002. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

Nebraska's 2002 tax bill LB 123 added the elected Nebraska County Fair Board to the governmental units whose purchases are exempt from sales and use tax, effective October 1, 2002. This ruling explains how a Board claims the exemption, where it doesn't apply, and confirms that an appointed board qualifies too.

How to buy tax free. The Board gives its vendor a Nebraska Resale or Exempt Sale Certificate (Form 13) and marks exemption category #1 (governmental units aren't assigned exemption numbers, per Reg 1-093.01).

Where the exemption stops. Purchases used in furnishing gas, water, electricity, or heat are not eligible, and the Board's exempt status cannot be extended to a person or business buying property or services to donate to the Board.

Building projects. A Board may appoint a prime contractor as its purchasing agent to buy building materials annexed to Board-owned property by issuing a Form 17.

Appointed boards too. A county fair board with an appointed membership is also exempt, because it operates as a division of county government.

Fixing tax paid in error. For purchases on or after October 1, 2002, tax paid in error can be refunded if $2.00 or more, by filing a Claim for Overpayment of Sales and Use Tax (Form 7).

What this means for you

A Nebraska County Fair Board (elected or appointed)

You can buy tax free from October 1, 2002 forward using Form 13 marked category #1. Whether your board's members are elected or appointed, the exemption applies. Watch the utility carve-out (gas, water, electricity, heat) and use a Form 17 to authorize your construction contractor to buy annexation materials tax free.

A vendor dealing with a Fair Board

Accept a valid Form 13 marked category #1, but don't extend the exemption to a donor buying goods or services to give to the Board.

Common questions

Q: When did elected County Fair Board purchases become exempt?
A: October 1, 2002, under Laws 2002, LB 123.

Q: Does the exemption also cover a board whose members are appointed, not elected?
A: Yes — an appointed county fair board operates as a division of county government and is exempt.

Q: Is everything the Board buys exempt?
A: No. Purchases used to furnish gas, water, electricity, or heat are not exempt, and the exemption can't pass to someone buying items to donate to the Board.

Citations and references

Laws 2002, LB 123 — exempts elected Nebraska County Fair Board purchases from sales and use tax effective October 1, 2002.
Reg 1-093.01 — governmental units are not assigned exemption numbers (hence category #1 on Form 13).
Regs 1-012.02C and 1-093.04 — incomplete to the extent they don't list a Nebraska Elected County Fair Board as an exempt governmental unit.
Forms — Form 13 (exempt purchase certificate), Form 17 (purchasing agent appointment), Form 7 (overpayment claim).

Source

Original ruling text

REVENUE RULING 1-02-4
September 30, 2002
Sales and Use Tax - Elected County Fair Board. EFFECTIVE OCTOBER 1, 2002, PURCHASES
BY AN ELECTED NEBRASKA COUNTY FAIR BOARD ARE EXEMPT FROM SALES AND
USE TAX.
Laws 2002, LB 123, provides an exemption from sales and use tax for purchases by an elected
Nebraska County Fair Board (Board). For purchases made on and after October 1, 2002, the Board
must issue a Nebraska Resale or Exempt Sale Certiﬁcate, Form 13, to its vendor in order to purchase
items tax free. As provided in Nebraska Sales and Use Tax Regulation 1-093.01, governmental
units are not assigned exemption numbers. Therefore, the Board must indicate exemption category

1 on Form 13. Purchases by a Board for use in furnishing gas, water, electricity, or heat are not

eligible for the exemption.
A Board may appoint as its agent a prime contractor to purchase building materials that will be
annexed to property owned by the Board. The appointment of the prime contractor as its agent
is completed by issuing to the contractor a Purchasing Agent Appointment and Delegation of
Authority for Sales and Use Tax, Form 17. The exempt status of a Board cannot be extended to a
person or business purchasing property or services to be donated or given to the Board.
Sales or use tax paid in error on purchases made on and after October 1, 2002, can be refunded
provided the amount of the refund is $2.00 or more. To receive a refund, the Board must ﬁle a
Claim for Overpayment of Sales and Use Tax, Form 7.
Purchases by a Nebraska county fair board with an appointed membership are exempt from tax as
the board operates as a division of county government.
The provisions of Sales and Use Tax Regulations 1-012.02C and 1-093.04 are incomplete to the
extent they do not include a Nebraska Elected County Fair Board as an exempt governmental
unit.
APPROVED:

Mary Jane Egr
State Tax Commissioner
September 30, 2002

Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818

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