013.01 A sale for resale is a sale of property or services to any purchaser for the purpose of resale in the normal course of the purchaser's business. The item may be resold either in the form or condition in which it was purchased, or as an ingredient or component part of other property, (Reg-1-023, Component Parts--Manufacturing, Processing, and Fabrication). A sale for resale includes a sale of property to a purchaser for the sole purpose of renting or leasing such property to others; provided, such rental or lease payments are set at a fair market value.

013.01A Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the necessary facts.

013.01B A sale for resale does not include the sale of property to a purchaser whose subsequent rental or lease of that property is incidental to the rental or lease of real estate.

013.02 The burden of proving that a sale of property is not a sale at retail is upon the retailer (seller) unless the retailer (seller) accepts a properly completed resale certificate providing evidence that the property is purchased for the purpose of reselling, leasing, or renting in the regular course of the purchaser's business or is to be used as an ingredient or component part of other property to be resold, leased, or rented. The resale certificate constitutes a part of the retailer's (seller's) records and is to be retained in the same manner as other sales tax records.

013.03 A properly completed resale certificate received from the purchaser is proof for the retailer (seller) that the sale was for resale. To be properly completed, the resale certificate, as allowed by Reg-1-013.11, must include all of the following:

013.03A Identification of both purchaser and retailer (seller) including type of business engaged in by purchaser;

013.03B Sales tax permit number of purchaser. If the purchaser is licensed as a retailer in Nebraska or another state which requires a permit, enter the sales tax permit number. If the purchaser has no permit number, state the reason;

013.03C A general description of the property or services sold, leased, or rented by the purchaser in the regular course of his or her business;

013.03D Identification of items purchased. A single purchase certificate that covers a single sales transaction must describe the specific property or services purchased. A blanket certificate must contain a general description of the property or services commonly purchased;

013.03E Authorized signature or other form of authorization as allowed by the Streamlined Sales Tax Agreement; and

013.03F Date of issuance.

013.04 If a purchaser who gives a resale certificate makes any use of the property other than retention, demonstration, or display while holding it for sale, lease, or rental in the regular course of business, such use removes it from the "sale for resale" exemption category and accordingly, the use is taxable to the purchaser from the time the property is first used. Except for a purchaser of aircraft as provided in Reg-1-067, Aircraft and Related Services, the sales price of the property is the measure of the tax. (Reg-1-035, Consumption of Untaxed Property.)

013.05 The retailer (seller) holding a properly completed resale certificate is relieved from liability for tax, penalty, and interest. However, this does not apply to sellers who fraudulently fail to collect tax or who solicit purchasers to participate in unlawful claims of exemption.

013.06 A retailer (seller) repeatedly making the same type of sales to the same purchaser is not required to take a separate resale certificate for each sale, but may take a blanket resale certificate covering future sales.

013.07 Sales in which the seller is required to make delivery outside of Nebraska need not be supported by resale certificates if properly supported by bills of lading, certificates of out-of-state delivery, or other documentation. However, where delivery to the out-of-state purchaser occurs in this state, the sales tax payment is required unless the sale is otherwise exempt or for actual resale purposes, in which case the retailer (seller) must take a properly completed resale or exempt sale certificate.

013.08 If in any case a resale certificate or satisfactory evidence in support of a claim that a sale is exempt cannot be produced on demand of the Nebraska Department of Revenue, the retailer (seller) making the sale is responsible for the tax on the transaction.

013.09 Any purchaser, or the agent thereof, who gives a resale certificate to the retailer (seller) for any purchase taxable under sections 77-2701 through 77-27,135 of the Nebraska Revised Statutes, which is purchased for a use other than resale, lease, or rental in the regular course of the purchaser's business, shall be subject to a penalty of one hundred dollars ($100.00) or ten times the tax, whichever amount is larger, for each instance of presentation and misuse. With regard to a blanket resale certificate, said penalty shall apply to each purchase made during the period the blanket certificate is in effect.

013.10 Any purchaser, or the agent thereof, who fraudulently signs a resale certificate with intent to avoid payment of the tax may, in addition to the penalty set out in paragraph 013.09, be found guilty of a Class IV misdemeanor.

013.11 The Nebraska Department of Revenue will recognize only the Nebraska Resale or Exempt Sale Certificate, Form 13, a previously approved paper or electronic substitute for this Form 13, the Multistate Tax Commission Uniform Sales and Use Tax Certificate, or a certificate of exemption authorized by the Streamlined Sales Tax Agreement.

013.12 Sellers shall maintain records of resale transactions. The Nebraska Department of Revenue may make and retain copies of any resale certificates.

(Sections 77-2706(1), (2), (3), and (4), and 77-2706.01, R.R.S. 2003, and sections 77-2701.34 and 77-2703(1)(f), R.S.Supp., 2004. April 12, 2005.)

SALE FOR RESALE - RESALE CERTIFICATE

Form 13: Download or Fill in online

REG-1-013 SALE FOR RESALE - RESALE CERTIFICATE