Are retail sales of game birds subject to Nebraska sales tax?

Plain-English summary

Nebraska exempts food for human consumption from sales tax. This ruling explains that, effective October 1, 2008, that food exemption was extended to cover retail sales of game birds.

The rule. LB 916 amended Neb. Rev. Stat. § 77-2704.46 so that retail sales of game birds subject to permit and regulation by the Nebraska Game and Parks Commission are not subject to sales or use tax. The exemption rests on treating game birds as a form of animal life that ordinarily constitutes food for human consumption. Sellers do not collect or remit tax on these sales -- whether the birds are sold alive, dressed and readied for preparation, or ready-to-eat.

What counts as a "game bird." The Game Law (Neb. Rev. Stat. §§ 37-201 to 37-811), and specifically § 37-229, defines game birds as coots, cranes, curlew, doves, grouse, partridges, pheasants, plovers, prairie chickens, quail, rails, snipes, swans, woodcocks, wild turkeys, and all migratory waterfowl -- which includes ducks, geese, and brant.

Related inputs are exempt too. Purchases of feed, agricultural chemicals, veterinary medicines, feed supplements, and water used for, on, or in caring for game birds are also exempt from sales and use tax.

The key exception -- hunting is not a bird sale. A game preserve that charges to hunt is not considered to be selling game birds, even when the fee increases with the number of birds bagged. That charge is an admission to a place where amusement, entertainment, or recreation is provided, and it is subject to tax.

What this means for you

Game bird producers and sellers

If you raise or sell permitted-and-regulated game birds at retail, you do not charge sales tax on the birds -- in any form (live, dressed, or ready-to-eat) -- and you can buy your feed, medicines, supplements, chemicals, and water for the birds tax-free.

Hunting preserves and outfitters

Treat the two revenue streams differently. Selling birds (as food) is exempt, but charging people to hunt is a taxable recreational admission -- collect tax on the hunt fee even if it is priced per bird bagged.

Common questions

Q: Does the bird have to be sold as food to be exempt?
A: The exemption is grounded in game birds being animal life that ordinarily constitutes food for human consumption. It applies to sales of the regulated birds alive, dressed, or ready-to-eat.

Q: Can I buy feed and veterinary supplies for my game birds tax-free?
A: Yes. Feed, agricultural chemicals, veterinary medicines, feed supplements, and water for consumption by or care of game birds are exempt.

Q: I run a hunting preserve -- is my hunting fee exempt because it involves game birds?
A: No. A hunting charge is a taxable admission to a place of amusement, entertainment, or recreation, even if the fee rises with the number of birds bagged. Only the sale of the birds themselves is exempt.

Citations and references

• Neb. Rev. Stat. § 77-2704.46 -- Nebraska's exemption for food for human consumption, amended by LB 916, section 20, to exempt retail sales of game birds effective October 1, 2008.
• Neb. Rev. Stat. § 37-229 (within the Game Law, §§ 37-201 to 37-811) -- defines the birds that qualify as "game birds."
• LB 916, section 20 (2008) -- the legislation that amended § 77-2704.46.

Source

• Landing page: https://revenue.nebraska.gov/about/legal-information/revenue-rulings-issued-tax-commissioner
• Original PDF: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/legal/rulings/rr010804.pdf

Original ruling text

Revenue Ruling 01-08-4
September 9, 2008
RETAIL SALES OF GAME BIRDS
Issue:
Are retail sales of game birds subject to sales tax?
Conclusion:
Beginning October 1, 2008, Nebraska Revised Statute § 77-2704.46 has been amended to provide
that retail sales of game birds subject to permit and regulation by the Nebraska Game and Parks
Commission are not subject to sales tax. The exemption of game birds is based on their designation
as a form of animal life which ordinarily constitutes food for human consumption.
Definition:
Game birds – Birds included in sections 37-201 to 37-811 of the Nebraska Revised Statutes, also
cited as the Game Law. Specifically, Nebraska Revised Statute § 37-229 defines game birds as
coots, cranes, curlew, doves, grouse, partridges, pheasants, plovers, prairie chickens, quail, rails,
snipes, swans, woodcocks, wild turkeys, and all migratory waterfowl.
Migratory waterfowl subject to permit and regulation by the Nebraska Game and Parks Commission
includes ducks, geese, or brant.
Analysis:
Persons who barter, buy, or sell game birds subject to permit and regulation by the Nebraska Game
and Parks Commission are not required to collect or remit Nebraska sales and use tax on such
transactions. Game birds may be sold, for purposes of the exemption, alive, dressed and readied
for preparation, or ready-to-eat.
Any purchases of feed, agricultural chemicals, veterinary medicines, feed supplements and water
for consumption by, use on, or use in caring for game birds are also exempt from sales and use
tax.
Game preserves for hunting are not considered to be selling game birds, even when fees increase
for the number of birds bagged. The amount charged to hunt is an admission to use a place or
location where amusement, entertainment, or recreation is provided and is subject to tax.
LB 916, section 20, has amended Nebraska Revised Statute § 77-2704.46 regarding food for
human consumption.
APPROVED:

Douglas A. Ewald
Tax Commissioner
September 9, 2008
Nebraska Department of Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-4818