Taxes

As an education institution, UNL has a tax exempt certificate and is exempt from paying Nebraska sales tax as well as Lincoln's hotel/motel and restaurant/bar occupation taxes. However, sales made by UNL to outside entities, related groups, ancillaries or individuals are only tax exempt if the purchasing entity has a Nebraska tax exempt certificate. So, there are still instances where UNL departments must collect and file sales tax and/or restaurant/bar occupation tax. There are also instances where UNL departments must pay unrelated business income tax. More information is available in the links below. For additional questions, please contact Brenda Owen in Accounting via email or at 472-5278.

Collecting Sales Tax

Departments that sell to outside entities and individuals must collect sales tax unless the entity/individual has a Nebraska tax exempt certificate on file.

One group of entities that is often overlooked for collecting sales tax is related groups and ancillaries. These groups are housed on or near campus but are not actually part of the core activity of the university. Unless they have a Nebraska tax exempt certificate on file (form 13), they must be charged sales tax. Some examples of groups falling into this category are:

Cost Object Related Group/Ancillary
2398131001 Veteran Costs
2398131005 NE High School Press Association
2398131008 University of Nebraska Foundation
2398131009 Alumni Association
2398131010 Daily Nebraskan
2398131001 Other Activities
2398131013 Radio Science
2398131015 Tech Park
2398131016 Music Centennial
2398131017 Electrical Engineering 100 Year
2398131018 NAMR/SME Conference
2398131019 One Technology Center
2398131020 NE Champions Club
2398131021 Technology Park Server Farm
2398131022 NE Academy of Science
2398131024 NE Crop Improvement
2398131025 NE Pork Producers
2398131026 NE Poultry Industry
2398131027 UAAD
2398131029 USDA Forest Service
2398131030 NE Turf Association

 

If you have any questions on sales tax, please contact Susan Howard via email or at 472-5277.

 

Hotel/Motel Occupation Tax

As a tax exempt entity, UNL is exempt from paying Lincoln's hotel/motel occupation tax for hotel rooms with overnight stays. The hotel/motel occupation tax does not apply to rental of conference rooms, e.g. ballrooms, banquet rooms, reception rooms or meeting rooms. If you are booking rooms for overnight guests on behalf of a UNL department, you must provide the hotel with a copy of UNL's Certificate of Exempt Sale. To obtain this, please contact Purchasing at 472-2126.

For more information on the hotel/motel occupation tax, please see the following links:

Restaurant/Bar Occupation Tax

As a tax exempt entity, UNL is exempt from Lincoln's restaurant/bar occupation tax. If you buying goods from restaurants/bars on behalf of a UNL department, you must provide the establishment with a copy of UNL's Certificate of Exempt Sale. To obtain this, please contact Purchasing at 472-2126.

For more information on the restaurant/bar occupation tax, please see the following links:

Car Rental Occupation Tax

Effective January 1, 2011 the City of Lincoln imposed a four percent occupation tax on the rental of vehicles within the city limits. The University is exempt from paying this tax if the rental charge is billed directly to UNL. We are required to deliver a certificate of exempt sale to the retailer. If a personal credit card is used to pay for the rental car the tax must be paid, even if it is for University business.

Telecommunications Occupation Tax

Commencing October 1, 2010, the City of Lincoln levied an occupation tax of six percent on any telecommunication service and any sale of telecommunication equipment within the city limits. Telecommunication service includes telephone cards, phone cards, calling cards, rechargeable cards, telephone tokens and any other method or device used in purchasing prepaid minutes or prepaid telecommunication services. Telecommunication equipment includes phones, mobile phones, cellular phones, smart phones, pagers, and all like devices. Telecommunications equipment does not include computers, routers, hubs, etc. The University is exempt from paying this tax if billed directly to the University. If purchasing the above taxable services or items for University business, we are required to deliver a certificate of exempt sale to the retailer.

To obtain a certificate of exempt sale, please contact Procurement Services at 472-2126. If you have any questions regarding occupancy taxes, please contact Brenda Owen, Director of Accounting & Finance via emailor at 472-5278.

UNL as Retailer (Seller)

When UNL is acting as the retailer (seller), we are required to charge the 2% restaurant/bar occupation tax. If your department sells food, please contact Brenda Owen, Director of Accounting & Finance via email or at 472-5278.