Charges related to the access of the Internet, such as hosting services, are not taxable provided the customer receives no software. If the Web page program or other software is transferred to the customer for its own use, or if a license is granted to the customer to use these programs, the charge for such programs is taxable. Yes, purchases made from retailers via the Internet are taxed in the same manner as purchases made from other retailers, including those from mail-order catalogs. If the seller is licensed to collect Nebraska sales tax, then the customer pays the tax to the seller. If the seller is not licensed to collect Nebraska tax or fails to collect the tax, then the customer becomes personally liable for the tax and must pay it directly to the Department of Revenue as consumer's use tax .
Forms are available on our Web site for remitting consumer's use tax.
The point of delivery determines the location of the sale and the rate of sales tax. Deliveries into Nebraska cities that impose a local option sales tax must be taxed at the state rate plus the applicable local rate. Deliveries into another state are not subject to Nebraska tax. Except for telephone service, utility services are taxed where the meter is located. Telephone service is taxed where the service is provided to the customer.