LINCOLN — The Nebraska Department of Revenue has confirmed it is the entity responsible for administering state and local sales taxes under state law as a state senator alleges wrongdoing by Lincoln city officials.
The state agency made the clarification Thursday in response to questions from the Nebraska Examiner. Local taxes are determined by some municipalities and a couple of counties, up to 2 cents per dollar. State sales taxes are set by the Legislature, currently at a 5.5-cent rate.
“Retailers collect and remit city sales tax to the DOR,” the statement read. “The DOR in turn remits the sales tax to the city minus any applicable refunds. The DOR does not itself collect sales and use taxes. It is the responsibility of the retailer to collect the appropriate tax.”
State Sen. Beau Ballard of Lincoln blasted Lincoln officials this week after he said constituents alerted him that they were being taxed 7.25% for purchases made outside city limits but within a 3-mile zoning buffer around Lincoln. He said that included deliveries and services at their homes. Lincoln’s sales tax rate is 1.75%…