Nebraska: Sales Tax Handbook

Nebraska:

Are Optional Maintenance Contracts subject to sales tax?

While Nebraska's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in Nebraska, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Nebraska.

General Optional Maintenance Contracts

TAXABLE

In the state of Nebraska, the maintenance agreement is considered to be taxable if the property covered or the services provided are also considered to be taxable. Agreements which cover only real estate, fixtures, or structures are considered to be exempt.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts

EXEMPT

In the state of Nebraska, so long as the agreement does not provide full coverage, the amount which is charged for parts is considered to be taxable.

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