Agricultural machinery and equipment shall mean tangible personal property that is used directly in the cultivating or harvesting of a crop, the raising or caring for animal life, or the collecting or processing of an agricultural product on the farm or ranch. Agricultural machinery and equipment does not include office equipment, registered or unregistered motor vehicles, well-drilling equipment, handling or processing equipment for agricultural products not on a farm or ranch, or any building or fixture. Commercial agriculture is the business of producing food products, or other useful and valuable crops, or raising animal life. The crops or animal life can either be sold or used by the grower to produce other products for sale. Commercial agriculture includes commercial production in greenhouses, nurseries, tree farms, sod farms, and feedlots.
Purchase is a transfer of title or possession for a consideration.
The purchase may occur by sale, conditional sale, sale at auction, or a lease or rental for thirty days or more. The purchaser is entitled to a refund of the Nebraska and local option sales and use tax paid on the purchase if the item purchased meets all of the following criteria. If any of the criteria are not met, the purchaser is not allowed a refund. It is used in commercial agriculture. The purchase is exempt from the Nebraska and local option sales and use tax if the item purchased meets all of the following criteria.