Revenue Ruling 01-02-5
Sales and Use Tax

This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (Department) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of the Department and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.

This guidance document may change with updated information or added examples. The Department recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.

Sales and Use Tax - Training on Computer Software. AMOUNTS PAID TO A RETAILER OF SOFTWARE FOR COMPUTER SOFTWARE TRAINING ARE SUBJECT TO TAX EFFECTIVE OCTOBER 1, 2002.

Laws 2002, LB 1085, repealed the sales and use tax exemption for the amount charged by a retailer of computer software for training customers in the use of the software. The training can be conducted by the retailer of the software or on the retailer’s behalf by another person. The charges for training are taxable whether the training is an optional or mandatory part of the sale, lease, rental or licensing of computer software, or whether the training is provided at a different time than the actual sale of the software.

Sales and Use Tax Regulations 1-007.02(G) and 1-088.02 are superseded by the provisions of Laws 2002, LB 1085.

APPROVED:
Mary Jane Egr
State Tax Commissioner

September 30, 2002