Taxes

As an education institution, University of Nebraska-Lincoln 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. Consequently, 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 Lana Anderson, Financial Accountant II.

• Collecting Sales Tax
• Filing Sales Tax Returns
• Occupation Taxes
• Unrelated Business Income Tax (UBIT)

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.

The Nebraska Department of Revenue provides:

• Current Nebraska state sales tax rates
• Nebraska state tax regulations

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:

If you have any questions on sales tax, please contact Lana Anderson.

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 the University of Nebraska's Procure-to-Pay team at 402-472-2126.

For more information on the City of Lincoln's hotel/motel occupation tax, please review:

• Hotel/Motel Occupation Tax FAQs
• Lincoln Municipal Code Chapter 3.28

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 the University of Nebraska's Procure-to-Pay team at 402-472-2126.

For more information on the City of Lincoln's restaurant/bar occupation tax, please review:

• Restaurant/Bar Occupation Tax FAQs
• Lincoln Municipal Code Chapter 3.30

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, even if the rental is for University business, the tax must be paid.

Telecommunications Occupation Tax

Effective 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 the University of Nebraska's Procure-to-Pay team at 402-472-2126. If you have any questions regarding occupancy taxes, please contact Lana Anderson, Financial Accountant II.

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 email Lana Anderson, Financial Accountant II.