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NE 99-76-1 All Nebraska Taxes 1976-10-01

Who does Nebraska consider to be an 'Indian' for purposes of exemption from state taxation?

Short answer: For purposes of exemption from Nebraska state taxation, an 'Indian' is a person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe. Revenue Ruling 99-76-1 states only this definition of who qualifies as an Indian exempt from state taxation; it sets the threshold for the exemption without detailing which taxes or transactions the exemption covers.

Apply this to your situation

This page answers the general question as of 1976. Ezel answers yours, under current Nebraska tax law, with citations.

Currency note: this ruling is from 1976
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
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Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it.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

Certain American Indians are exempt from state taxation, which raises a threshold question: who counts as an "Indian" for that exemption? This short ruling gives Nebraska's definition.

The core holding: "An Indian is a person of at least one-fourth Indian blood or a person presently enrolled as a member of a recognized American Indian tribe."

That is the entire substance of the ruling. It answers the request for "who is considered to be an Indian exempt from State taxation" by setting a two-part test -- either the blood-quantum standard (at least one-fourth Indian blood) or current enrollment as a member of a recognized American Indian tribe. Meeting either prong satisfies the definition.

The ruling defines the term only. It does not, in its text, spell out which specific Nebraska taxes the exemption reaches or the circumstances (such as activity in Indian country) required for the exemption to apply -- those questions turn on other law and are not addressed here.

What this means for you

Individuals claiming an Indian tax exemption

Nebraska's definition is met if you are either a person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe. Current tribal enrollment is one clear way to satisfy the definition. Keep in mind this ruling sets only the definition of who qualifies as an Indian; whether a particular tax or transaction is actually exempt depends on other rules not covered here.

Retailers and businesses dealing with exemption claims

If a customer asserts an Indian tax exemption, this ruling is the Department's baseline for who qualifies as an Indian. It does not, by itself, establish that a given sale is exempt, so confirm the specific exemption rules and documentation that apply to the transaction.

Accountants and tax professionals

Treat 99-76-1 as a definitional building block, not a full exemption ruling. Because it dates to 1976 and both federal Indian-country tax doctrine and Nebraska's guidance have developed since, verify the current definition and the scope of any exemption before relying on it.

Common questions

Q: How does Nebraska define an "Indian" for tax exemption?
A: A person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe. Either one satisfies the definition.

Q: Does this ruling say what is exempt from tax?
A: No. It defines who qualifies as an Indian; it does not, in its text, identify which taxes or transactions the exemption covers.

Q: Is tribal enrollment enough?
A: Under the definition, present enrollment as a member of a recognized American Indian tribe meets the test, as does being a person of at least one-fourth Indian blood.

Q: Can I rely on this 1976 ruling today?
A: It states the Department's position and is "binding on the Nebraska Department of Revenue until amended," but it is decades old and narrow. Verify current law and consult a Nebraska tax professional.

Citations and references

  • Nebraska Revenue Ruling 99-76-1, "State Taxation -- Definition of an Indian" (Nebraska Department of Revenue, issued October 1976; approved by the State Tax Commissioner).
  • Definition stated in the ruling: an Indian is a person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe.

Source

Source-quality note: This ruling survives only as a low-quality scan, and the machine-extracted text below has OCR artifacts (garbled heading and signature block). The one-sentence definition -- at least one-fourth Indian blood, or present enrollment in a recognized American Indian tribe -- is legible and is the basis for this summary.

Original ruling text

Revenue Ruling 99'76-I

State Taxation - Def inition of an Inditn. Alf INDIAN IS A
D OR A PERSON
INDIAN TRTBE.
AIVTERICAN
ENROLLED AS A MEMBER OF A RECOGNIZED
Advice has been requested as to who is considered to be an
Indian exempt from State taxation.
An Indian is a person of at least one-fourth Indian blood or
a person pre=ently enrolled as a member of a recognized
American Indian Tribe.
APPROVED:

State Tax Commissioner

october L

Lg76

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