NE 01-99-4 Sales and Use Tax 1999-12-06

Is mobility enhancing equipment for a Nebraska home — ramps, stair lifts, elevators — exempt from sales tax?

Short answer: Yes, with a prescription and a Form 13. Under Revenue Ruling 01-99-4 and Neb. Rev. Stat. §77-2704.09, mobility enhancing equipment for use in a private residence — items like ramps, railings, stair lifts, patient lifts, and elevators that let a disabled or handicapped person enter, exit, or move within the home — is exempt from sales and use tax on and after October 1, 1999, when purchased pursuant to a prescription issued by a Nebraska-licensed physician. It does not include dumbwaiters or elevators generally useful absent illness, or telephones, computers, and intercoms. To claim the exemption the buyer gives the retailer a Nebraska Resale or Exempt Sale Certificate (Form 13) and a copy of the prescription. Option 1 contractors act as retailers and may accept the Form 13 and prescription; Option 2 and Option 3 contractors are consumers who pay the tax and cannot. A buyer who pays tax (for example on materials to build a ramp) may claim a refund on Form 7 with the prescription.

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This page answers the general question as of 1999. 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Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it.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.

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Plain-English summary

This ruling explains when equipment that helps a disabled or handicapped person get around their own home is exempt from Nebraska sales and use tax.

The exemption. Under Neb. Rev. Stat. §77-2704.09, mobility enhancing equipment for use in a private residence, purchased on and after October 1, 1999 pursuant to a prescription issued by a Nebraska-licensed physician, is exempt from sales and use tax.

What qualifies. Equipment that lets a disabled or handicapped person enter, exit, or move from place to place within their private residence — the ruling names ramps, railings, stair lifts, patient lifts, and elevators. Equipment bought for a dependent (generally a family member — parent, spouse, son, or daughter) who could have bought it themselves is also exempt.

What does not qualify. Homewaiters (dumbwaiters) and elevators that are generally useful in the absence of illness, physical injury, or physical incapacity, and telephones, computers, intercoms, and similar items that do not improve a person's mobility.

How to claim it. The buyer gives the retailer a Nebraska Resale or Exempt Sale Certificate (Form 13) and a copy of the prescription.

The contractor rules are the tricky part:

Option 1 contractors act as retailers and collect sales tax — they may accept a Form 13 and prescription to exempt the equipment or materials.
Option 2 and Option 3 contractors are the consumers of equipment and materials they annex to real estate: they pay the tax themselves and cannot accept a Form 13 and prescription from the customer.
A disabled or handicapped person who buys their own materials to build a ramp or similar improvement pays sales tax on the materials, then may claim a refund.

Refunds. Anyone who pays tax on qualifying equipment on or after October 1, 1999 may file a Claim for Overpayment of Sales and Use Tax (Form 7) with documentation including the physician's prescription.

Warranties, repairs, and institutions. A warranty or service contract on equipment annexed to real estate is not taxable; on non-annexed equipment it is taxable unless a Form 13 and prescription are given. People repairing annexed equipment are contractors who owe tax on parts and materials regardless of option; repair/maintenance parts for non-annexed equipment used in a private residence are exempt with a Form 13 (Section B) and prescription. Equipment bought by a nursing home, hospital, or other organization is not exempt unless the organization itself holds a valid Nebraska certificate of exemption.

What this means for you

A homeowner or family caregiver

If a Nebraska-licensed physician prescribes a ramp, stair lift, patient lift, railing, or home elevator to help a disabled or handicapped person move around the residence, you can buy it tax-free — give the seller a Form 13 and a copy of the prescription. If you instead buy the raw materials yourself and build it, you'll pay tax up front and claim it back on Form 7 with the prescription.

A contractor installing accessibility equipment

Your treatment depends on your contractor option. Option 1 (retailer) contractors can accept the customer's Form 13 and prescription and sell tax-free; Option 2/3 contractors are consumers who pay tax on the materials and cannot pass the exemption through.

A nursing home or hospital

The home-use exemption doesn't automatically cover you — an institution's purchases are taxable unless the organization itself holds a valid Nebraska certificate of exemption.

Common questions

Q: What kind of equipment is covered?
A: Items that help a disabled or handicapped person enter, exit, or move within a private residence — ramps, railings, stair lifts, patient lifts, and elevators — not dumbwaiters or elevators useful absent a disability, and not phones, computers, or intercoms.

Q: What do I need to buy it tax-free?
A: A Nebraska Resale or Exempt Sale Certificate (Form 13) and a copy of a prescription from a Nebraska-licensed physician, given to the retailer.

Q: I already paid tax on a prescribed ramp — can I get it back?
A: Yes, file a Claim for Overpayment of Sales and Use Tax (Form 7) with documentation including the physician's prescription.

Citations and references

Neb. Rev. Stat. §77-2704.09 — exempts prescribed mobility enhancing equipment for a disabled or handicapped person, effective for purchases on and after October 1, 1999.
Form 13 (Nebraska Resale or Exempt Sale Certificate) — given with the prescription to claim the exemption at purchase.
Form 7 (Claim for Overpayment of Sales and Use Tax) — used to recover tax paid on qualifying equipment or materials.
Contractor Options 1, 2, and 3 — determine whether a contractor collects tax as a retailer or pays it as a consumer of annexed materials.

Source

Original ruling text

REVENUE RULING 1-99-4
December 6, 1999
Sales and Use Tax - Mobility Enhancing Equipment for Use in a Home. MOBILITY ENHANCING
EQUIPMENT FOR USE IN A HOME PURCHASED PURSUANT TO A PRESCRIPTION
ISSUED BY A NEBRASKA-LICENSED PHYSICIAN IS EXEMPT FROM SALES AND USE
TAX.
Advice has been requested as to whether the purchase of mobility enhancing equipment on and
after October 1, 1999, for use in a home (private residence) is subject to sales and use tax.
Mobility enhancing equipment for use in a private residence is equipment that enables a disabled
or handicapped person to enter, exit, or move from one place to another place in his or her private
residence. Mobility enhancing equipment for use in a private residence includes items such as
ramps, railings, stair lifts, patient lifts, and elevators.
Mobility enhancing equipment does not include homewaiters (dumbwaiters) and elevators that
are generally useful in the absence of illness, physical injury or physical incapacity. In addition,
telephones, computers, intercoms, and other similar items that do not improve the mobility of a
disabled or handicapped person cannot qualify for the exemption.
Pursuant to Nebraska Revised Statute section 77-2704.09, mobility enhancing equipment purchased
by any disabled or handicapped person who is required to use durable medical equipment,
orthotics, or prosthetics for locomotion and which is purchased pursuant to a prescription issued by
a Nebraska licensed physician is exempt from sales and use tax when the following procedures are
followed. (Mobility enhancing equipment that is purchased for use in a private residence to meet
the needs of a dependent who could have purchased the mobility enhancing equipment themselves
is also exempt. A dependent is generally a family member and may include a parent, spouse, son,
or daughter.)
The purchaser of the mobility enhancing equipment must give a Nebraska Resale or Exempt Sale
Certiﬁcate, Form 13, and a copy of the prescription to the retailer to exempt the retail sale from
sales tax.
Contractors operating under Option 1 are acting as retailers and collect sales tax from their
customers. Option 1 contractors may accept a Form 13 and a copy of the prescription issued by a
Nebraska-licensed physician to exempt the equipment or materials from sales tax.
Contractors operating under Option 2 or Option 3 are the consumers of all mobility enhancing
equipment or materials used to construct mobility enhancing equipment that are purchased and
annexed to real estate. Option 2 and Option 3 contractors must pay tax on such equipment and
materials and do not collect sales tax from their customers. Option 2 and Option 3 contractors
cannot accept a Form 13 and prescription from their customer to exempt the equipment or materials
from tax.
All contractors who make over-the-counter retail sales of mobility enhancing equipment that is
not annexed to real estate by them are required to collect sales tax on the retail selling price of

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

Revenue Ruling 1-99-4

December 6, 1999

Page 2 of 2

the equipment unless the purchaser provides a Form 13 and a copy of the prescription issued by a
Nebraska-licensed physician.
Disabled or handicapped persons who purchase materials to build a ramp or other mobility
enhancing equipment that will be used by them or a dependent to make their private residence
accessible are required to pay sales tax on the materials. The purchaser can then ﬁle a Claim
for Overpayment of Sales and Use Tax, Form 7, with documentation, including a copy of the
Nebraska-licensed physician’s prescription, to support the amount of the refund claimed.
The purchase of a warranty or service contract for mobility enhancing equipment annexed to
real estate is not taxable. Persons repairing mobility enhancing equipment annexed to real estate
are contractors. As contractors, they are required to pay sales tax or remit use tax on all parts
and materials used to replace or repair the equipment covered under a warranty or service and
maintenance agreement, regardless of the contractor option under which they are operating.
The purchase of a warranty or service contract to cover mobility enhancing equipment that is
not annexed to real estate is taxable unless the purchaser gives to the seller a Nebraska Resale or
Exempt Sale Certiﬁcate, Form 13, and a copy of the prescription issued by a Nebraska- licensed
physician.
Repair and maintenance parts for mobility enhancing equipment that is not annexed to real estate,
but is used in a private residence, are exempt from tax provided the owner of the equipment gives
to the repairperson a completed Form 13, Section B, and a copy of the prescription issued by a
Nebraska-licensed physician.
Any disabled or handicapped person who pays sales tax on the purchase of mobility enhancing
equipment on or after October 1, 1999, for use in a private residence may ﬁle a Claim for Overpayment
of Sales and Use Tax. Form 7, with the Nebraska Department of Revenue. Documentation, including
a copy of the Nebraska-licensed physician’s prescription must be ﬁled with the claim.
Mobility enhancing equipment that is purchased by a nursing home, hospital, or other organization
is not exempt from sales and use tax unless the organization itself is exempt from sales and use tax
and holds a valid certiﬁcate of exemption issued by the Nebraska Department of Revenue.
APPROVED:

Mary Jane Egr
State Tax Commissioner
December 6, 1999

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