§ 77-2703.03 — Direct mail sourcing

Nebraska § 77-2703.03

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

Text

(1)
This section applies when sourcing sales of direct mail. For purposes of this
section:
(a)
Advertising and promotional direct mail means direct mail that has the primary
purpose of attracting public attention to a product, person, business, or
organization or attempting to sell, popularize, or secure financial support
for a product, person, business, or organization; and
(b)(i) Other direct mail means any
direct mail that is not advertising and promotional direct mail, regardless
of whether advertising and promotional direct mail is included in the same
mailing.
(ii)
Other direct mail includes, but is not limited to:
(A) Transactional direct mail that
contains personal information specific to the addressee, including, but not
limited to, invoices, bills, statements of account, and payroll advices;
(B) Any legally required
mailings, including, but not limited to, privacy notices, tax reports, and
stockholder reports; and
(C)
Other nonpromotional direct mail delivered to existing or former shareholders,
customers, employees, or agents, including, but not limited to, newsletters
and informational pieces.
(iii)
Other direct mail does not include the development of billing information
or any data processing service that is more than incidental.
(2) The sale of advertising
and promotional direct mail shall be sourced as follows:
(a) If the purchaser
of advertising and promotional direct mail provides the retailer with a direct
payment permit, certificate of exemption authorized by the streamlined sales
and use tax agreement, or written statement claiming exemption that has been
approved, authorized, or accepted by the Tax Commissioner, the purchaser shall
source the sale to the jurisdictions to which the advertising and promotional
direct mail is to be delivered to recipients and shall report and pay any
applicable tax due. In the absence of bad faith, the retailer is relieved
of all obligations to collect, pay, or remit any tax on any transaction involving
advertising and promotional direct mail to which the direct payment permit,
certificate of exemption, or written statement applies;
(b) If the purchaser
of advertising and promotional direct mail provides the retailer with information
showing the jurisdictions to which the advertising and promotional direct
mail is to be delivered to recipients, the retailer shall source the sale
to the jurisdictions to which the advertising and promotional direct mail
is to be delivered to recipients and shall collect and remit the applicable
tax. In the absence of bad faith, the retailer is relieved of any further
obligation to collect any additional tax on the sale of advertising and promotional
direct mail; or
(c)
If neither subdivision (a) of this subsection nor subdivision (b) of this
subsection applies, then the sale of advertising and promotional direct mail
shall be sourced according to subsection (6) of section 77-2703.01 . The tax
paid shall not constitute a properly paid tax for purposes of allowing credit
against state and local option sales and use tax due.
(3) The sale of other direct mail
shall be sourced as follows:
(a) If the purchaser of other direct mail provides
the retailer with a direct payment permit, certificate of exemption authorized
by the streamlined sales and use tax agreement, or written statement claiming
exemption that has been approved, authorized, or accepted by the Tax Commissioner,
the purchaser shall source the sale to the jurisdictions to which the other
direct mail is to be delivered to recipients and shall report and pay any
applicable tax due. In the absence of bad faith, the retailer is relieved
of all obligations to collect, pay, or remit any tax on any transaction involving
other direct mail to which the direct payment permit, certificate of exemption,
or written statement applies; or
(b) If subdivision (a) of this subsection does not
apply, then the sale of other direct mail shall be sourced according to subsection
(4) of section 77-2703.01 . The tax paid shall not constitute a properly paid
tax for purposes of allowing credit against state and local option sales and
use tax due.
(4)
This section applies to transactions characterized under state law as sales
of services only if the service is an integral part of the production and
distribution of direct mail.
(5) If a transaction is a bundled transaction that
includes advertising and promotional direct mail, this section applies only
if the primary purpose of the transaction is the sale of advertising and promotional
direct mail.
(6)
This section does not apply to any transaction that includes the development
of billing information or the provision of any data processing service that
is more than incidental, regardless of whether advertising and promotional
direct mail is included in the same mailing.

Legislative History

Source: Laws 2003, LB 282, § 51; Laws 2011, LB211, § 4.