Nebraska Revised Statute 77-2704.13

Revised Statutes » Chapter 77 » 77-2704.13
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77-2704.13. Fuel, energy, or water sources; exemption.

Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental of and the storage, use, or other consumption in this state of:

(1) Sales and purchases of electricity, coal, gas, fuel oil, diesel fuel, tractor fuel, propane, gasoline, coke, nuclear fuel, butane, wood as fuel, and corn as fuel when more than fifty percent of the amount purchased is for use directly in irrigation or farming;

(2) Sales and purchases of such energy sources or fuels made before April 1, 1993, or after March 31, 1994, when more than fifty percent of the amount purchased is for use directly in processing, manufacturing, or refining, in the generation of electricity, or by any hospital. The state tax paid on purchases of such energy sources or fuels during the period beginning April 1, 1993, and ending March 31, 1994, shall not exceed one hundred thousand dollars for any one location when more than fifty percent of the amount purchased is for use directly in processing, manufacturing, or refining or by any hospital. All purchases of such energy sources or fuels for use in the generation of electricity during the period beginning April 1, 1993, and ending March 31, 1994, shall be taxable. Any taxpayer who has paid the limit of state tax on such energy sources or fuels at one location shall be exempt on all other qualifying purchases at such location. Such taxpayer shall be entitled to a refund of any amount of state or local option tax paid on an energy source or fuel exempt under this subdivision. A refund shall be made pursuant to section 77-2708; and

(3) Sales and purchases of water used for irrigation of agricultural lands and manufacturing purposes.

Source

    Laws 1992, LB 871, § 37;
    Laws 1992, Fourth Spec. Sess., LB 1, § 27;
    Laws 1993, LB 345, § 43;
    Laws 1994, LB 977, § 4;
    Laws 2003, LB 282, § 55;
    Laws 2009, LB9, § 4.

Annotations

In light of Nebraska Sales and Use Tax Regulation 1-089.02A(1), 316 Neb. Admin. Code, ch. 1, section 089.02A(1) (1994), the use of electricity to store treated water awaiting distribution does not qualify for an exemption from Nebraska sales tax under this section. Metropolitan Utilities Dist. v. Balka, 252 Neb. 172, 560 N.W.2d 795 (1997).

The definitions of "manufacturing" and "processing" contained in Nebraska Sales and Use Tax Regulation 1-089.02A(1), 316 Neb. Admin. Code, ch. 1, section 089.02A(1) (1994), are in conformance with this section. Metropolitan Utilities Dist. v. Balka, 252 Neb. 172, 560 N.W.2d 795 (1997).

Oxygen used in a metal cutting process through an "oxyfuel" cutting torch is a gas that is exempt under section 77-2704(1)(k) (Supp. 1983) and its predecessors. Vulcraft v. Karnes, 229 Neb. 676, 428 N.W.2d 505 (1988).