§ 77-2602.05 — Cigarette tax; exempt transaction; refund; application; documentation; interest; tax refund formula authorized

Nebraska § 77-2602.05

• Jurisdiction: Nebraska
• Ch. 77: Revenue and Taxation

Text

(1) A person
that paid taxes applicable under section 77-2602 on cigarettes sold in an
exempt transaction shall be eligible for a refund of the taxes paid on those
cigarettes.
(2) Exempt transactions,
for purposes of this section and section 69-2703 , are defined as:
(a) Cigarette
sales on a federal installation in a transaction that is exempt from state
taxation under federal law; and
(b) Cigarette sales on an Indian tribe's
Indian country to its tribal members where state taxation is precluded by
federal law.
(3) Except as provided in subsection (5) of this section, the person
seeking a refund of taxes shall submit an application to the Tax Commissioner
providing documentation sufficient to demonstrate (a) that the cigarettes
were sold in a package bearing the correct stamp required under section 77-2603
or 77-2603.01 and that the stamp was one that required payment of tax, (b)
that the person paid the applicable taxes in question, (c) that the cigarettes
were sold in an exempt transaction, and (d) that the person has not previously
obtained the refund on the cigarettes. The documentation shall include, in
addition to information necessary to meet the requirements of subdivisions
(3)(a) through (d) of this section and any other information that the Tax
Commissioner may reasonably require, documents showing the identity of the
seller and purchaser and the places of shipment and delivery of the cigarettes.
The Tax Commissioner shall verify the accuracy and completeness of the required
documentation and information before granting the requested refund.
(4) If a meritorious
refund claim under subsection (3) of this section is not paid within sixty
days after submission of the required documentation, the refund shall include
interest on the amount of such refund at the rate specified in section 45-104.02
as such rate existed at the date of submission of the required documentation.
(5) The Tax Commissioner
and an Indian tribe may agree upon a tax refund formula to operate in lieu
of application for refunds under subsection (3) of this section. The aggregate
refund provided to an Indian tribe under a formula for a year shall not exceed
the aggregate tax paid by entities owned and operated by that tribe or member
of that tribe on cigarettes sold in exempt transactions on that tribe's Indian
country during that year. Refunds of taxes under subsection (3) of this section
shall not be available for cigarettes sold in exempt transactions on an Indian
tribe's Indian country by an Indian tribe that agrees upon a refund formula
under this subsection. Nothing in this subsection shall limit the state's
authority to enter into an agreement pursuant to section 77-2602.06 pertaining
to the collection and dissemination of any cigarette taxes which may otherwise
be inconsistent with this subsection.

Legislative History

Source: Laws 2011, LB590, § 22.