Revenue Ruling 01-99-1
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 Tax - Surcharge levied on retail, end-user revenue from telecommunication services. THE NEBRASKA UNIVERSAL SERVICE FUND (NUSF) SURCHARGE ASSESSED AGAINST CERTAIN RETAIL, END-USER REVENUES IS NOT INCLUDED IN GROSS RECEIPTS SUBJECT TO SALES TAX.

Advice has been requested as to whether the Nebraska Universal Service Fund (NUSF) surcharge should be included in the gross receipts of a retailer providing telecommunication services within Nebraska.

The Nebraska Universal Service Fund is created pursuant to Neb. Rev. Stat. §86-1405 for the purpose of providing assistance necessary to make telecommunications services available to all persons in Nebraska. In order to finance this fund, the Nebraska Public Service Commission issued a findings and conclusions dated January 13, 1999, on Application No. C-1628, which created the NUSF surcharge. Modifications to the order were issued by the commission on February 2, 1999, and March 9, 1999. The NUSF surcharge is imposed on intrastate telecommunication services billed to retail end-users. It is required to be separately stated on the customer's bill. It is remitted by the vendor to the Public Service Commission and becomes a part of the Universal Service Fund.

The NUSF surcharge is similar to the Nebraska 911 surcharge and the Nebraska surcharge for hearing impaired. Like these surcharges, it is not subject to Nebraska sales tax and is not a part of the taxable gross receipts of a vendor providing telecommunication services.

APPROVED:
Mary Jane Egr
State Tax Commissioner

April 22, 1999