Option 2 and Option 3 contractors must pay tax on such equipment and materials and do not collect sales tax from their customers. Option 2 and Option 3 contractors cannot accept a Form 13 and prescription from their customer to exempt the equipment or materials from tax. Disabled or handicapped persons who purchase materials to build a ramp or other mobility enhancing equipment that will be used by them or a dependent to make their private residence accessible are required to pay sales tax on the materials. The purchaser can then file a Claim for Overpayment of Sales and Use Tax, Form 7, with documentation, including a copy of the Nebraska-licensed physician s prescription, to support the amount of the refund claimed. The purchase of a warranty or service contract for mobility enhancing equipment annexed to real estate is not taxable.
Persons repairing mobility enhancing equipment annexed to real estate are contractors.
As contractors, they are required to pay sales tax or remit use tax on all parts and materials used to replace or repair the equipment covered under a warranty or service and maintenance agreement, regardless of the contractor option under which they are operating. The purchase of a warranty or service contract to cover mobility enhancing equipment that is not annexed to real estate is taxable unless the purchaser gives to the seller a Nebraska Resale or Exempt Sale Certificate, Form 13, and a copy of the prescription issued by a Nebraska- licensed physician. Repair and maintenance parts for mobility enhancing equipment that is not annexed to real estate, but is used in a private residence, are exempt from tax provided the owner of the equipment gives to the repairperson a completed Form 13, Section B, and a copy of the prescription issued by a Nebraska-licensed physician. Form 7, with the Nebraska Department of Revenue. Documentation, including a copy of the Nebraska-licensed physician s prescription must be filed with the claim.