State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter77 > 77-2711

77-2711. Sales and usetax; Tax Commissioner; enforcement; records; retain; reports; wrongful disclosures;exceptions; information provided to municipality; penalty; waiver; streamlinedsales and use tax agreement; confidentiality rights.(1)(a)The Tax Commissioner shall enforce sections 77-2701.04 to 77-2713 and mayprescribe, adopt, and enforce rules and regulations relating to the administrationand enforcement of such sections.(b) The Tax Commissioner may prescribe the extent to whichany ruling or regulation shall be applied without retroactive effect.(2) The Tax Commissioner may employ accountants, auditors,investigators, assistants, and clerks necessary for the efficient administrationof the Nebraska Revenue Act of 1967 and may delegate authority to his or herrepresentatives to conduct hearings, prescribe regulations, or perform anyother duties imposed by such act.(3)(a) Every seller, every retailer, and every person storing,using, or otherwise consuming in this state property purchased from a retailershall keep such records, receipts, invoices, and other pertinent papers insuch form as the Tax Commissioner may reasonably require.(b) Every such seller, retailer, or person shall keep suchrecords for not less than three years from the making of such records unlessthe Tax Commissioner in writing sooner authorized their destruction.(4) The Tax Commissioner or any person authorized in writingby him or her may examine the books, papers, records, and equipment of anyperson selling property and any person liable for the use tax and may investigatethe character of the business of the person in order to verify the accuracyof any return made or, if no return is made by the person, to ascertain anddetermine the amount required to be paid. In the examination of any personselling property or of any person liable for the use tax, an inquiry shallbe made as to the accuracy of the reporting of city sales and use taxes forwhich the person is liable under the Local Option Revenue Act or sections 13-319, 13-324, and 13-2813 and the accuracy of the allocation made betweenthe various counties, cities, villages, and municipal counties of the taxdue. The Tax Commissioner may make or cause to be made copies of resale orexemption certificates and may pay a reasonable amount to the person havingcustody of the records for providing such copies.(5) The taxpayer shall have the right to keep or store hisor her records at a point outside this state and shall make his or her recordsavailable to the Tax Commissioner at all times.(6) In administration of the use tax, the Tax Commissionermay require the filing of reports by any person or class of persons havingin his, her, or their possession or custody information relating to salesof property, the storage, use, or other consumption of which is subject tothe tax. The report shall be filed when the Tax Commissioner requires andshall set forth the names and addresses of purchasers of the property, thesales price of the property, the date of sale, and such other informationas the Tax Commissioner may require.(7) It shall be a Class I misdemeanor for the Tax Commissioneror any official or employee of the Tax Commissioner, the State Treasurer,or the Department of Administrative Services to make known in any manner whateverthe business affairs, operations, or information obtained by an investigationof records and activities of any retailer or any other person visited or examinedin the discharge of official duty or the amount or source of income, profits,losses, expenditures, or any particular thereof, set forth or disclosed inany return, or to permit any return or copy thereof, or any book containingany abstract or particulars thereof to be seen or examined by any person notconnected with the Tax Commissioner. Nothing in this section shall be construedto prohibit (a) the delivery to a taxpayer, his or her duly authorized representative,or his or her successors, receivers, trustees, executors, administrators,assignees, or guarantors, if directly interested, of a certified copy of anyreturn or report in connection with his or her tax, (b) the publication ofstatistics so classified as to prevent the identification of particular reportsor returns and the items thereof, (c) the inspection by the Attorney General,other legal representative of the state, or county attorney of the reportsor returns of any taxpayer when either (i) information on the reports or returnsis considered by the Attorney General to be relevant to any action or proceedinginstituted by the taxpayer or against whom an action or proceeding is beingconsidered or has been commenced by any state agency or the county or (ii)the taxpayer has instituted an action to review the tax based thereon or anaction or proceeding against the taxpayer for collection of tax or failureto comply with the Nebraska Revenue Act of 1967 is being considered or hasbeen commenced, (d) the furnishing of any information to the United StatesGovernment or to states allowing similar privileges to the Tax Commissioner,(e) the disclosure of information and records to a collection agency contractingwith the Tax Commissioner pursuant to sections 77-377.01 to 77-377.04, (f)the disclosure to another party to a transaction of information and recordsconcerning the transaction between the taxpayer and the other party, (g) the disclosure of informationpursuant to section 77-27,195 or 77-5731,or (h) the disclosure of information to the Department of Labor necessaryfor the administration of the Employment Security Law, the Contractor RegistrationAct, or the Employee Classification Act.(8) Notwithstanding the provisions of subsection (7) of thissection, the Tax Commissioner may permit the Postal Inspector of the UnitedStates Postal Service or his or her delegates to inspect the reports or returnsof any person filed pursuant to the Nebraska Revenue Act of 1967 when informationon the reports or returns is relevant to any action or proceeding institutedor being considered by the United States Postal Service against such personfor the fraudulent use of the mails to carry and deliver false and fraudulenttax returns to the Tax Commissioner with the intent to defraud the State ofNebraska or to evade the payment of Nebraska state taxes.(9) Notwithstanding the provisions of subsection (7) of thissection, the Tax Commissioner may permit other tax officials of this stateto inspect the tax returns, reports, and applications filed under sections 77-2701.04 to 77-2713, but such inspection shall be permitted only for purposesof enforcing a tax law and only to the extent and under the conditions prescribedby the rules and regulations of the Tax Commissioner.(10) Notwithstanding the provisions of subsection (7) of thissection, the Tax Commissioner may, upon request, provide the county boardof any county which has exercised the authority granted by section 81-1254with a list of the names and addresses of the hotels located within the countyfor which lodging sales tax returns have been filed or for which lodging salestaxes have been remitted for the county's County Visitors Promotion Fund underthe Nebraska Visitors Development Act.The information provided by the Tax Commissioner shall indicateonly the names and addresses of the hotels located within the requesting countyfor which lodging sales tax returns have been filed for a specified periodand the fact that lodging sales taxes remitted by or on behalf of the hotelhave constituted a portion of the total sum remitted by the state to the countyfor a specified period under the provisions of the Nebraska Visitors DevelopmentAct. No additional information shall be revealed.(11)(a) Notwithstanding the provisions of subsection (7) ofthis section, the Tax Commissioner shall, upon written request by the Auditorof Public Accounts or the Legislative Performance Audit Committee, make taxreturns and tax return information open to inspection by or disclosure toAuditor of Public Accounts or Legislative Performance Audit Section employeesfor the purpose of and to the extent necessary in making an audit of the Departmentof Revenue pursuant to section 50-1205 or 84-304. Confidential tax returnsand tax return information shall be audited only upon the premises of theDepartment of Revenue. All audit workpapers pertaining to the audit of theDepartment of Revenue shall be stored in a secure place in the Departmentof Revenue.(b) No employee of the Auditor of Public Accounts or LegislativePerformance Audit Section shall disclose to any person, other than anotherAuditor of Public Accounts or Legislative Performance Audit Section employeewhose official duties require such disclosure or as provided in subsections(2) and (3) of section 50-1213, any return or return information describedin the Nebraska Revenue Act of 1967 in a form which can be associated withor otherwise identify, directly or indirectly, a particular taxpayer.(c) Any person who violates the provisions of this subsectionshall be guilty of a Class I misdemeanor. For purposes of this subsection,employee includes a former Auditor of Public Accounts or Legislative PerformanceAudit Section employee.(12) For purposes of this subsection and subsection (11) ofthis section:(a) Disclosure means the making known to any person in anymanner a tax return or return information;(b) Return information means:(i) A taxpayer's identification number and (A) the nature,source, or amount of his or her income, payments, receipts, deductions, exemptions,credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies,overassessments, or tax payments, whether the taxpayer's return was, is being,or will be examined or subject to other investigation or processing or (B)any other data received by, recorded by, prepared by, furnished to, or collectedby the Tax Commissioner with respect to a return or the determination of theexistence or possible existence of liability or the amount of liability ofany person for any tax, penalty, interest, fine, forfeiture, or other impositionor offense; and(ii) Any part of any written determination or any backgroundfile document relating to such written determination; and(c) Tax return or return means any tax or information returnor claim for refund required by, provided for, or permitted under sections 77-2701 to 77-2713 which is filed with the Tax Commissioner by, on behalfof, or with respect to any person and any amendment or supplement thereto,including supporting schedules, attachments, or lists which are supplementalto or part of the filed return.(13) Notwithstanding the provisions of subsection (7) ofthis section, the Tax Commissioner shall, upon request, provide any municipalitywhich has adopted the local option sales tax under the Local Option RevenueAct with a list of the names and addresses of the retailers which have collectedthe local option sales tax for the municipality. The request may be made annuallyand shall be submitted to the Tax Commissioner on or before June 30 of eachyear. The information provided by the Tax Commissioner shall indicate onlythe names and addresses of the retailers. The Tax Commissioner may provideadditional information to a municipality so long as the information does notinclude any data detailing the specific revenue, expenses, or operations ofany particular business.(14) In all proceedings under the Nebraska Revenue Act of1967, the Tax Commissioner may act for and on behalf of the people of theState of Nebraska. The Tax Commissioner in his or her discretion may waiveall or part of any penalties provided by the provisions of such act or intereston delinquent taxes specified in section 45-104.02, as such rate may fromtime to time be adjusted.(15)(a) The purpose of this subsection is to set forth thestate's policy for the protection of the confidentiality rights of all participantsin the system operated pursuant to the streamlined sales and use tax agreementand of the privacy interests of consumers who deal with model 1 sellers.(b) For purposes of this subsection:(i) Anonymous data means information that does not identifya person;(ii) Confidential taxpayer information means all informationthat is protected under a member state's laws, regulations, and privileges;and(iii) Personally identifiable information means informationthat identifies a person.(c) The state agrees that a fundamental precept for model1 sellers is to preserve the privacy of consumers by protecting their anonymity.With very limited exceptions, a certified service provider shall perform itstax calculation, remittance, and reporting functions without retaining thepersonally identifiable information of consumers.(d) The governing board of the member states in the streamlinedsales and use tax agreement may certify a certified service provider onlyif that certified service provider certifies that:(i) Its system has been designed and tested to ensure thatthe fundamental precept of anonymity is respected;(ii) Personally identifiable information is only used andretained to the extent necessary for the administration of model 1 with respectto exempt purchasers;(iii) It provides consumers clear and conspicuous noticeof its information practices, including what information it collects, howit collects the information, how it uses the information, how long, if atall, it retains the information, and whether it discloses the informationto member states. Such notice shall be satisfied by a written privacy policystatement accessible by the public on the web site of the certified serviceprovider;(iv) Its collection, use, and retention of personally identifiableinformation is limited to that required by the member states to ensure thevalidity of exemptions from taxation that are claimed by reason of a consumer'sstatus or the intended use of the goods or services purchased; and(v) It provides adequate technical, physical, and administrativesafeguards so as to protect personally identifiable information from unauthorizedaccess and disclosure.(e) The state shall provide public notification to consumers,including exempt purchasers, of the state's practices relating to the collection,use, and retention of personally identifiable information.(f) When any personally identifiable information that hasbeen collected and retained is no longer required for the purposes set forthin subdivision (15)(d)(iv) of this section, such information shall no longerbe retained by the member states.(g) When personally identifiable information regarding anindividual is retained by or on behalf of the state, it shall provide reasonableaccess by such individual to his or her own information in the state's possessionand a right to correct any inaccurately recorded information.(h) If anyone other than a member state, or a person authorizedby that state's law or the agreement, seeks to discover personally identifiableinformation, the state from whom the information is sought should make a reasonableand timely effort to notify the individual of such request.(i) This privacy policy is subject to enforcement by theAttorney General.(j) All other laws and regulations regarding the collection,use, and maintenance of confidential taxpayer information remain fully applicableand binding. Without limitation, this subsection does not enlarge or limitthe state's authority to:(i) Conduct audits or other reviews as provided under theagreement and state law;(ii) Provide records pursuant to the federal Freedom of InformationAct, disclosure laws with governmental agencies, or other regulations;(iii) Prevent, consistent with state law, disclosure of confidentialtaxpayer information;(iv) Prevent, consistent with federal law, disclosure ormisuse of federal return information obtained under a disclosure agreementwith the Internal Revenue Service; and(v) Collect, disclose, disseminate, or otherwise use anonymousdata for governmental purposes. SourceLaws 1967, c. 487, § 11, p. 1566; Laws 1969, c. 683, § 7, p. 2641; Laws 1977, LB 39, § 239; Laws 1981, LB 170, § 6; Laws 1982, LB 705, § 2; Laws 1984, LB 962, § 12; Laws 1985, LB 344, § 4; Laws 1987, LB 523, § 17; Laws 1991, LB 773, § 10; Laws 1992, LB 871, § 61; Laws 1992, Fourth Spec. Sess., LB 1, § 31; Laws 1993, LB 345, § 60; Laws 1994, LB 1175, § 1; Laws 1995, LB 134, § 3; Laws 1996, LB 1177, § 18; Laws 2001, LB 142, § 56; Laws 2003, LB 282, § 73; Laws 2005, LB 216, § 9; Laws 2005, LB 312, § 11; Laws 2006, LB 588, § 8; Laws 2007, LB94, § 1; Laws 2007, LB223, § 9; Laws 2008, LB914, § 8; Laws 2009, LB165, § 10; Laws 2010, LB563, § 14; Laws 2010, LB879, § 9.Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB563, section 14, with LB879, section 9, to reflect all amendments.Note: Changes made by LB563 became effective July 15, 2010. Changes made by LB879 became operative July 15, 2010. Cross ReferencesContractor Registration Act, see section 48-2101.Employee Classification Act, see section 48-2901.Employment Security Law, see section 48-601.Local Option Revenue Act, see section 77-27,148.Nebraska Visitors Development Act, see section 81-1263.