SALES AT SPECIAL EVENTS | Nebraska Department of Revenue

Nebraska Special Events Information Guide, September 20, 2011, Page 1

InformatIon GuIde

OVERVIEW

A special event is a gathering of sellers where merchandise, items, or services are sold or traded to

the public from a temporary venue. Nebraska sales tax is due on all retail sales of taxable new and

used items at special events. Promoters and sellers at special events are required to have a Nebraska

sales tax permit.

6-515-2011

SaleS at SpecIal eventS

September 2011

TERMS

Promoter or Operator. A promoter or operator is a person or entity that arranges, promotes, or sponsors a

special event.

Retail Sale. Retail sale means any sale, lease, or rental of taxable property or services for any purpose other

than resale. Transactions involving barter or trade are also considered retail sales.

Seller. A seller includes every person engaged in the business of selling, leasing, or renting tangible personal

property or taxable services. Any seller is considered a retailer. Sellers who only sell tax exempt items (vegetables or

fruits) are not required to have a sales tax permit.

Special Events. Special events are any events of a temporary nature which are held primarily for selling

merchandise, items, or services. Special events include, but are not limited to:

v Antique shows; v Farmer’s markets;

v Art shows; v Flea markets;

v Carnivals; v

Garage sales, held at a location other than an individual’s home;

v Circuses; v Gun shows;

v Conventions; v Swap meets; and

v Craft shows; v Trade shows (auto, boat, home, and garden shows).

v Fairs;

A religious organization may have one annual sale that is not taxed. See the Nebraska Taxation of Nonprot

Organizations Information Guide for more detailed information.

This guidance document is advisory in nature but is binding on the Nebraska Department of

Revenue (Department) until amended. A guidance document does not include internal procedural

documents that only affect the internal operations of the Department and does not impose

additional requirements or penalties on regulated parties or include condential information or

rules and regulations made in accordance with the Administrative Procedure Act. If you believe

that this guidance document imposes additional requirements or penalties on regulated parties, you

may request a review of the document.

This guidance document may change with updated information or added examples. The

Department recommends you do not print this document. Instead, sign up for the

subscription service at revenue.nebraska.gov to get updates on your topics of interest.

Nebraska Special Events Information Guide, September 20, 2011, Page 2

An educational institution may make certain sales without collecting tax to the general public or to the members

of the institution. See the Nebraska Taxation of Nonprot Organizations Information Guide for more

detailed information.

Special events do not include garage or yard sales which may qualify as occasional sales (see Reg-01-022 for more

detailed information on occasional sales).

RESPONSIBILITIES OF THE PROMOTER OR OPERATOR OF SPECIAL EVENTS

The promoter or operator of a special event must provide the Department with special event information and a list of

all participating sellers.

The special event information must include:

v The dates of the special event;

v The name of the contact person for the promoter or operator; and

v The address and telephone number for the contact person.

The list of participating sellers must include:

v Name;

v Address;

v Phone number; and

v Nebraska Sales Tax ID Number, if available.

The list can be sent to the Department by faxing the information to 402-471-5929 Attn: Special Events, or by

emailing the list to rev[email protected].

Let sellers know that a Department representative may attend the special event to ensure that they comply with all

applicable sales tax laws.

Promoters or operators must do the following:

v Distribute all materials furnished by the Department to participating sellers;

vProvide sellers with the state, and any applicable local, sales tax rate for the event location on the dates

of the event; and

v Collect sales tax on any admission fees charged to the public to enter the special event.

LICENSING REQUIREMENTS

All promoters, operators, and resident sellers must have a Nebraska sales tax permit or obtain one by ling a

Nebraska Tax Application, Form 20. The ling frequency depends on the seller’s sales volume and will be assigned

by the Department based on the information provided on the Form 20.

The Nebraska sales tax permit may take two weeks to receive and will be mailed to the mailing address provided on

the Form 20. This permit, or a copy of it, must be in the seller’s possession at the special event.

Nonresident sellers should have an active Nebraska sales tax permit, or obtain one, by ling a Form 20. In certain

situations, a one-time special event reporting form may be obtained from the Department. For information on the

type of situations when this is allowed, contact the Department rev[email protected].

Nebraska Special Events Information Guide, September 20, 2011, Page 3

Independent Consultants/Representatives Selling for a Direct Sales Company. Direct sales companies that have

a signed Distributor’s Agreement with the Department are allowed to collect sales tax on behalf of their independent

consultants/representatives (consultants). The direct sales company will obtain a sales tax permit, relieving each

consultant from the need for their own sales tax permit and having to le sales tax returns. Direct sales companies

will collect sales tax on purchases made through their consultants. The consultant should collect the Nebraska and

any applicable local sales tax as a reimbursement for the tax they paid to the direct sales company.

The Department’s website provides a list of companies that have signed Distributors’ Agreements. Any questions

related to a consultant selling products for a direct sales company that is not found on this list should be directed to

rev[email protected].

COLLECTING AND REMITTING SALES TAX

Every seller at a special event must collect the state, and any applicable local, sales tax on all retail sales, unless the

seller receives a properly completed Nebraska Resale or Exempt Sale Certicate, Form 13, from the purchaser.

Sellers must remit the tax collected on a Nebraska and Local Sales and Use Tax Return, Form 10. The Department

encourages sellers to e-le and e-pay sales tax using the Department’s NebFile system.

If the special event includes concessions, the concessionaire must have or obtain a Nebraska sales tax permit, and

collect and remit the appropriate amount of sales tax (see Nebraska Sales and Use Tax Guide for Prepared Foods

Information Guide).

PENALTIES FOR NOT COMPLYING WITH SALES TAX LAWS

If a seller fails to obtain a Nebraska sales tax permit, or fails to le and remit the appropriate amount of sales tax, the

Department representative may ask the seller to leave the premises. The Department may also prevent the seller from

participating in future special events for not complying with Nebraska licensing and sales tax laws.

Any person who engages in business as a seller without the proper Nebraska sales tax permit (or following the

revocation or suspension of a permit) may be found guilty of a Class IV misdemeanor upon conviction. Each day of

operation without a permit represents a separate offense and subjects the seller to a ne of up to $500 per day.

Any person who willfully fails to collect, report, or remit sales tax, or who in any manner evades taxes imposed

under Nebraska’s sales tax laws, may be found guilty of a Class IV felony upon conviction. This person may receive

a maximum imprisonment of up to ve years, or a ne of up to $10,000, or both.

RESOURCE LIST

Information Guides

v Nebraska Sales and Use Tax Guide on Delivery Charges

v Nebraska Sales and Use Tax Guide for Food, Food Ingredients, and Dietary Supplements

v Nebraska and Local Sales Tax

v Nebraska Taxation of Nonprot Organizations

v Nebraska Sales and Use Tax Guide for Prepared Food

v Statutory Responsibilites for Collecting, Reporting, and Remitting Sales and Withholding Taxes

Nebraska Special Events Information Guide, September 20, 2011, Page 4

revenue.nebraska.gov

800-742-7474 (NE and IA), or 402-471-5729

Nebraska Department of Revenue, PO Box 94818, Lincoln, NE 68509-4818

Nebraska Sales and Use Tax Regulations

v Reg-1-005 Retailers and Sellers

v Reg-1-006 Retail Sale or Sale at Retail

v Reg-1-013 Sale for Resale - Resale Certicate

v Reg-1-022 Occasional Sales

v Reg-1-033 Transient and Itinerant Sellers

v Reg-1-091 Religious Organizations

Nebraska Statutes

v Neb. Rev. Stat. § 77-2701.31, Retail sale or sale at retail, dened.

v Neb. Rev. Stat. § 77-2701.32, Retailer, dened.

v Neb. Rev. Stat. § 77-2701.36, Seller, dened.

v Neb. Rev. Stat. § 77-2705, Sales and use tax; retailer; registration; permit; form; revocation; restoration;

appeal; exempt sale certicate; violations; penalty; wrongful disclosure; online registration system.

v Neb. Rev. Stat. § 77-2713, Sales and use tax; failure to collect; false return; violations; penalty; statute

of limitations.