Nebraska exempts qualifying purchases from sales and use tax, but only when the buyer gives the seller a valid certificate. That certificate is almost always Form 13, the Nebraska Resale or Exempt Sale Certificate. When a certificate is missing, incomplete, or wrong, the seller pays. The Nebraska Department of Revenue (DOR) reclassifies the sale as taxable, and the seller owes the tax, interest, and penalties.
This page explains who qualifies, how Form 13 works section by section, how to fill it out, and how to stay audit-ready. For the full category list, start with the DOR Nebraska Sales Tax Exemptions information guide.
What Is Nebraska Form 13, the Resale or Exempt Sale Certificate?
Form 13 is one certificate with two distinct sections. Section A is the resale certificate and requires a Nebraska sales tax permit number. Section B is the exempt sale certificate and requires the exemption category plus, for some categories, an exemption number. The buyer picks one section based on why the purchase is tax-free, then gives the completed form to the seller.
| Certificate | Who uses it | What it covers | Requirement | Source |
|---|---|---|---|---|
| Section A: Resale | Retailers, wholesalers, resellers | Inventory bought to resell | Nebraska Sales Tax ID, format 01-XXXXXXX | Form 13, Nebraska DOR |
| Section B: Exempt sale | Nonprofits, government, manufacturers, farmers, carriers | Purchases exempt by category | Exemption category; 05-XXXXXXX number for categories 3 and 4 | Form 13, Nebraska DOR |
Who Qualifies for Nebraska Sales Tax Exemption?
Nebraska recognizes a set of exemption categories, each tied to a statute or regulation. Resellers, government units, qualifying nonprofits, manufacturers, commercial farmers, common carriers, and one-time sellers of depreciable equipment can all buy tax-free when they meet the conditions. The table below is the statutory backbone, and each category gets its own answer further down.
| Exemption category | Who or what qualifies | Key condition | Statute / regulation |
|---|---|---|---|
| Purchases for resale | Licensed retailers and wholesalers | Valid Nebraska permit (01-XXXXXXX) | Reg-1-013, Reg-1-014 |
| Government | Federal, Nebraska state, county, city, village, school district, natural resource district, public housing authority | Official use only | Neb. Rev. Stat. \u00a7 77-2704 |
| Nonprofit organizations | A narrow statutory list only | DOR Certificate of Exemption (05-XXXXXXX) | Neb. Rev. Stat. \u00a7 77-2704.12; Reg-1-090 |
| Manufacturing machinery | Machinery used more than 50% in manufacturing | Buyer qualifies as a manufacturer | Reg-1-107 |
| Manufacturing and ag energy | Electricity, gas, and fuels used more than 50% in qualifying use | Claimed on Form 13E, tested per meter | Reg-1-089; Neb. Rev. Stat. \u00a7 77-2704.13 |
| Agriculture | Depreciable ag machinery, parts, chemicals, seeds | Used in commercial agriculture | Neb. Rev. Stat. \u00a7 77-2704 |
| Common or contract carrier | Vehicles, watercraft, aircraft used predominantly as carriers | 5-year certificate | Form 13 exemption category 4 |
| Occasional sale | One-time sale of depreciable business or farm assets | Seller not in that business | Neb. Rev. Stat. \u00a7 77-2704 |
How Does the Nebraska Resale Certificate Work for Retailers?
Licensed retailers and wholesalers complete Form 13 Section A with their Nebraska sales tax permit number to buy inventory tax-free. They resell the goods and collect tax downstream from the end consumer. Section A requires a valid Nebraska Sales Tax ID in the 01-XXXXXXX format, per Reg-1-013 and Reg-1-014. An unlicensed buyer with no permit number cannot use Section A.
What Is the Nebraska Manufacturing Machinery Exemption?
Machinery and equipment used more than 50% of the time in manufacturing is exempt under Reg-1-107. The exemption covers repair and replacement parts, installation, and maintenance services on qualifying machinery. Nebraska treats a person who derives the majority of revenue from manufacturing sales as a manufacturer. Energy used in manufacturing is exempt under a separate certificate, Form 13E.
What Is Form 13E and the Manufacturing Energy Exemption?
Form 13E, the Nebraska Energy Source Exempt Sale Certificate, exempts electricity, natural gas, and other fuels when more than 50% of the purchase is used directly in manufacturing, processing, irrigation, farming, refining, or electricity generation, per the Form 13E instructions. The exemption is all-or-nothing per meter. If more than 50% of a meter’s energy charge is qualified use, the entire billing is exempt; at 50% or less, the entire charge is taxable, per Reg-1-089.
The qualified-use percentage comes from an energy study covering a full one-year consumption period, analyzing every device and load on the meter, per the Form 13E instructions. Office space, bathrooms, and storage areas are non-qualifying uses. Reg-1-089 implements Neb. Rev. Stat. \u00a7 77-2704.13, and the current form is Rev. 6-2024. Give Form 13E to the seller; do not file it with the DOR.
What Does the Nebraska Agricultural Sales Tax Exemption Cover?
The agricultural exemption has two prongs. First, depreciable agricultural machinery and equipment used in commercial agriculture, plus repair and replacement parts. Second, agricultural chemicals, seeds, and qualifying consumables. Both prongs sit under Neb. Rev. Stat. \u00a7 77-2704. “Commercial agriculture” is a defined term, and hobby or personal farming does not qualify.
Which Nonprofits Qualify for a Nebraska Exemption Certificate?
Not all 501(c)(3) organizations qualify. Nebraska exempts only a narrow statutory list under Neb. Rev. Stat. \u00a7 77-2704.12, and each qualifying organization must hold a DOR-issued Certificate of Exemption bearing an exemption number in the 05-XXXXXXX format, per Reg-1-090. The organization applies to the Tax Commissioner and uses the number on Form 13 Section B.
| Qualifying organization type | Statutory citation |
|---|---|
| Religious organizations created exclusively for religious purposes | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Organizations serving exclusively the blind | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Nonprofit private educational institutions | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Accredited nonprofit colleges and universities with a primary Nebraska campus | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Nonprofit hospitals, health clinics, skilled nursing and intermediate care facilities | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Licensed child-caring and child-placing agencies | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Organizations serving persons with developmental disabilities | Neb. Rev. Stat. \u00a7 77-2704.12 |
| Behavioral health and substance use service providers | Neb. Rev. Stat. \u00a7 77-2704.12 |
Are Government Purchases Exempt From Nebraska Sales Tax?
Yes. Purchases by the federal government, the State of Nebraska, counties, cities, villages, school districts, natural resource districts, and public housing authorities are exempt when made for official use, per Neb. Rev. Stat. \u00a7 77-2704. Most governmental units need no exemption ID number.
The exemption covers the government as the buyer, not contractors purchasing on its behalf. A contractor buying materials for a government project is taxed under Nebraska’s Option 1, 2, or 3 contractor rules, described in the Nebraska DOR Construction Contractors information guide. Confirm the contractor’s option before treating a project purchase as exempt.
What Is the Nebraska Common Carrier Exemption?
Vehicles, watercraft, and aircraft used predominantly as common or contract carriers qualify for exemption, along with repair and replacement parts, under Form 13 exemption category 4. The common or contract carrier certificate of exemption expires every 5 years and must be renewed to keep buying exempt, per the Form 13 instructions (Rev. 7-2022). This five-year cycle supersedes the older three-year cycle still printed in the unamended Reg-1-069 text. Keep documentation of predominant carrier use for audit.
What Counts as an Occasional Sale in Nebraska?
An occasional sale is a one-time sale of used business or farm equipment held as a depreciable asset for more than one year, on which tax was originally paid. It is exempt only when the seller is not in the business of selling that type of property. Motor vehicles and trailers are generally excluded from occasional-sale treatment. The seller completes Form 13 for the buyer, who keeps it for audit.
How Do You Fill Out Nebraska Form 13?
Complete the seller information, the buyer information, and the certificate type (single-purchase or blanket). Then complete Section A for resale, using your Nebraska permit number, or Section B for an exempt sale, using the exemption category and number. Sign and date it. A single-purchase certificate covers one transaction; a blanket certificate covers all qualifying purchases from that seller until revoked.
| Field | What to enter | Common error | Source |
|---|---|---|---|
| Seller info | Seller name and address | Leaving it blank | Form 13, Nebraska DOR |
| Buyer info | Legal name and full address (no P.O. box) | Using a P.O. box | Form 13, Nebraska DOR |
| Certificate type | Single-purchase or blanket | Checking neither box | Form 13, Nebraska DOR |
| Section A: resale | Nebraska Sales Tax ID, format 01-XXXXXXX | An unregistered or ineligible number | Form 13, Nebraska DOR |
| Section B: exempt | Exemption category plus 05-XXXXXXX for categories 3 and 4 | Missing category or number | Form 13, Nebraska DOR |
| Description | Specific items and intended use | Vague “miscellaneous items” | Form 13, Nebraska DOR |
| Signature | Authorized signer, title, and date | Unsigned or undated | Form 13, Nebraska DOR |
Do Nebraska Exemption Certificates Expire?
Most Nebraska resale and exempt sale certificates do not expire. A blanket certificate stays valid until the purchaser revokes it in writing or the circumstances change. The common or contract carrier certificate is the exception, with a 5-year renewal cycle per the Form 13 instructions. Nebraska accepts signed paper certificates and electronic PDF certificates.
Sellers keep certificates for a minimum of three years after the related return is filed, per Reg-1-008 and Neb. Rev. Stat. \u00a7 77-2711, and longer while a refund claim or audit is pending.
Can Nebraska Sellers Accept Out-of-State Certificates and Handle Drop Shipments?
Yes. An out-of-state purchaser with no Nebraska permit may complete Form 13 using their home-state registration number when the purchase qualifies. In a drop-shipment transaction, the out-of-state retailer may give its home-state resale number on Form 13, per the Form 13 instructions. Confirm the buyer’s home-state number is valid before accepting the certificate.
What Are the Penalties for Nebraska Exemption Certificate Errors?
A purchaser who presents Form 13 for a purchase that is not actually for resale or otherwise exempt faces a penalty of $100 or ten times the tax, whichever is greater, for each instance, per the Form 13 instructions and Reg-1-013. Fraudulent signing adds a Class IV misdemeanor charge. On the seller side, a missing or incomplete certificate at audit means the seller owes the tax, interest, and penalties.
| Pitfall or rule | Consequence | Source |
|---|---|---|
| Presenting Form 13 for a non-exempt purchase | Penalty of $100 or ten times the tax, whichever is greater, per instance | Form 13 instructions; Reg-1-013 |
| Fraudulently signing a certificate | Class IV misdemeanor, on top of the penalty | Reg-1-013; Form 13 |
| Misusing a blanket certificate | Penalty applies to every purchase made under it | Form 13 instructions |
| Missing or incomplete certificate at audit | Seller owes the tax, interest, and penalties | Reg-1-008 |
| Record retention | Keep certificates at least 3 years after the return is filed | Reg-1-008; Neb. Rev. Stat. \u00a7 77-2711 |
| Deficiency lookback | Up to 6 years if no return was filed or the deficiency exceeds 25% | Reg-1-008 |
How Should Businesses Manage Nebraska Exemption Certificates?
Collect the completed Form 13 at the time of sale, validate every field, and store each certificate digitally in a retrievable system. Track carrier certificates for the 5-year renewal, and review blanket certificates periodically for changes in the buyer’s status. Missing or stale certificates are the fastest way to convert exempt sales into an audit assessment.
How Commenda Automates Nebraska Exemption Certificate Management
Manual certificate work is where compliance breaks: chasing certificates at checkout, validating fields by hand, tracking renewals, and finding the right document during an audit. Commenda’s indirect tax platform automates certificate collection and validation, stores every certificate in centralized, audit-ready storage, and sends renewal alerts before a carrier certificate hits its five-year expiry. It connects through 100+ ERP (enterprise resource planning), API (application programming interface), and custom integrations.
For Nebraska specifics, use the Nebraska sales tax guide, check where you have to register with the US nexus exposure guide, and look up rates with the sales tax calculator. Ready to see your exposure? Book a demo for a free review of your exemption certificate exposure.
