TAXES

The Nebraska State Government is financed by an individual income tax, corporate income tax, 5.5 percent sales and use tax, corporate occupation tax, and selective excise taxes (liquor, tobacco, motor fuels, etc.).

Local governments are financed primarily by property taxes. Some cities also collect a city sales tax.
Real estate and personal property taxes are levied by county and municipal subdivisions, including school districts.

Highlights of the Nebraska Tax Structure:

• Sales-only formula used to calculate corporate income tax liability
• No state property tax
• No inventory tax
• No personal property tax on intangibles
• No sales tax on raw materials when used as ingredients or component parts in manufacturing operations
• No sales tax on sales of energy for processing or manufacturing purposes
• No sales tax on water used exclusively in manufacturing and processing
• No sales tax on qualified agricultural machinery and equipment
• No sales tax on manufacturing machinery, equipment, and related services
• Sales and use tax refunds are available on qualified air and water pollution control equipment
• Sales and use tax refunds are available on property qualifying for certain investment incentives