Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Nebraska.
April 12, 2024
Nebraska Proposed New 7.5% Gross Receipts Tax on Advertising Services
Authored by: Emilia Jarrin and Penny Sweeting, CPA
Nebraska proposed Bill LB388 to implement a new gross receipts tax on advertising services. Previous bills (LB1310 and LB1354) creating an Advertising Services Tax Act never passed the Revenue Committee. The new bill combines the gross receipts tax with property tax reform. The Act will impose a tax on companies operating in Nebraska whose combined gross advertising revenue exceeds one billion dollars. If passed, the Nebraska tax would apply to all forms of advertising services, including digital ads. The proposed gross receipts tax rate is 7.5% on the “assessable base.” The Act defines “assessable base” as the “portion of gross advertising revenue that is derived from sales to customers where services are delivered within Nebraska.” For sourcing, gross revenue from digital advertising is considered within Nebraska if it is received on a user’s device with an IP address located within Nebraska.
If you have questions about state digital advertising taxes, please reach out to a member of the Withum SALT Team.
September 7, 2023
Nebraska Adopts an Elective Pass-Through Entity Tax
Authored by: Jessie Racioppi and Jonathan Weinberg, JD, LLM, Principal
Nebraska Department of Revenue Legislation Bill 754 (LB754) enables eligible partnerships and S corporations to make an irrevocable pass-through entity tax election. Under LB754, taxpayers may make retroactive elections for tax years back to January 1, 2018. For tax years beginning on or after January 1, 2023, the election must be made prior to the filing due date of the income tax return, including any extensions. Pass-Through Entity Tax (PTET) elections must be uploaded to the Nebraska Department of Revenue website.
Eligible partnerships include any entity, including limited liability corporations, treated as a partnership for federal tax purposes and are not publicly traded. An eligible S corporation includes any entity that is subject to tax under Internal Revenue Code Subchapter S.
If you have questions about making Pass-Through Entity Tax elections, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
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