NE 29-96-1 Tax Incentives 1996-09-24

What counts as a single 'business location' under Nebraska's economic development incentive law?

Short answer: A 'business location' is one continuous parcel of real property, or two or more contiguous parcels. Under Revenue Ruling 29-96-1, the term "business location" in Neb. Rev. Stat. §77-27,189 means one continuous parcel of real property, or two or more parcels of real property that are contiguous. For purposes of the ruling, ownership includes the rental of real property. The ruling also addresses parcels separated by a feature such as a park, railroad track, or natural geographic feature. (This page is drawn from an OCR-converted scan of the ruling; the definition and the rental point are legible, but confirm the finer details against the Department's PDF.)

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This page answers the general question as of 1996. 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Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it.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

This short ruling defines a term that matters for Nebraska's business-tax-incentive programs: "business location."

The definition. Under Neb. Rev. Stat. §77-27,189, the term "business location" means one continuous parcel of real property, or two or more parcels of real property that are contiguous.

Rental counts. For purposes of the ruling, ownership includes the rental of real property — so a business can establish a "location" on property it rents, not only property it owns.

Parcels separated by a feature. The ruling also addresses parcels of real property separated by a feature such as a park, railroad track, or natural geographic feature.

Note: this page is drawn from an OCR-converted scan of the ruling. The core definition and the rental point above are clearly legible in the source; some of the finer wording (including exactly how separated parcels are treated) is degraded in the scan. Confirm those details against the Department's official PDF before relying on them.

What this means for you

A business applying for a Nebraska incentive agreement

When your agreement turns on a "business location," think of it as one continuous parcel or a set of contiguous parcels — and remember that rented real property counts, not just owned property. If your parcels are split by a park, railroad track, or natural geographic feature, look to the ruling's full text (and the statute) for how that affects whether they're still one location.

Common questions

Q: What is a "business location" for Nebraska incentive purposes?
A: One continuous parcel of real property, or two or more parcels that are contiguous, under Neb. Rev. Stat. §77-27,189.

Q: Does the property have to be owned?
A: No. For purposes of this ruling, ownership includes the rental of real property.

Citations and references

Neb. Rev. Stat. §77-27,189 — the statute defining "business location" that this ruling interprets.

Source

Original ruling text

Tiebraska

Revenr¡e Ruling 29-96-l

I deoartment
I of 'revenue
TT{E TERM
,BUSINESS LOCATION"
SECTION 77.27,T89 MEAIV S ONE CONTINUOUS
PARCEL OF REAL PROPERTY OR TWO OR MORE PARCELS OF REAL PROPERTY
TTIAT ARE CONTIGUOUS.

Two p
natural

Act if,
park, rail¡oad track or natu¡al geographic feaflu
For purposes of this revenue rulitg, ownership would include rental of real property.
APPRO\IED:

M. Berri
State Tax Commissioner

September 21, L996

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