Blank Nebraska 17 PDF Template

When filling out the Nebraska 17 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here’s a list of things you should and shouldn't do:

• Do ensure that the form is completed before any building materials are annexed to the project.
• Do include the names and addresses of both the prime contractor and the governmental unit or exempt organization.
• Do specify the effective and expiration dates for the appointment clearly.
• Do verify the Nebraska Exemption Number if applicable, especially for exempt organizations.
• Don't use vague terms like “upon completion” for expiration dates; specific dates are required.
• Don't forget to retain a copy of the completed form for your records.
• Don't allow any purchases to be made without the tax being paid if the form is not issued properly.

By adhering to these guidelines, you can help ensure that the process runs smoothly and complies with Nebraska tax regulations.

1. Incomplete Information: Failing to provide all required details, such as the name and address of the prime contractor or the governmental unit, can lead to delays or rejection of the form.

2. Incorrect Dates: Entering an ineffective or expired date for the appointment or delegation can invalidate the form. Always ensure that the effective and expiration dates are accurate and clearly stated.

3. Missing Exemption Number: Exempt organizations must include their Nebraska Sales and Use Tax Exemption number. Omitting this information can result in the form being deemed incomplete.

4. Improper Delegation: The prime contractor must delegate authority to each subcontractor using a completed Form 17. Failing to provide proper documentation for delegation can lead to tax liabilities.

5. Failure to Retain Copies: Not retaining a copy of the completed form can create issues later. Both the governmental unit and the prime contractor should keep their respective copies for records.

6. Ignoring Filing Instructions: Not following the specific filing instructions outlined in the form can lead to complications. Ensure that all steps are adhered to, including when and where to file the form.

Misconceptions about the Nebraska 17 form can lead to confusion for contractors and exempt organizations alike. Here are nine common misunderstandings, along with clarifications to help you navigate the process more effectively.

1. All nonprofits are exempt from sales tax in Nebraska. Many people believe that all nonprofit organizations qualify for tax exemption. However, this is not the case. Most nonprofits are not exempt from sales tax in Nebraska.
2. The Nebraska 17 form can be filed after materials are purchased. Some think it’s acceptable to submit the form after purchasing materials. In reality, the form must be completed and submitted before any building materials are annexed to the project.
3. Only governmental units can use the Nebraska 17 form. While governmental units frequently use this form, exempt organizations can also appoint contractors as purchasing agents. This includes certain nonprofit entities that meet specific criteria.
4. Once the Nebraska 17 form is filed, it never expires. This is a common misconception. The form has specified effective and expiration dates, and it must be reissued if the project extends beyond these dates.
5. A contractor can delegate their authority to anyone. In fact, a prime contractor can only delegate authority to a subcontractor. This delegation must be documented through a completed Form 17 for each subcontractor involved.
6. Tax exemption applies automatically to all purchases made by the contractor. The exemption only applies if the governmental unit or exempt organization directly pays for the building materials. If the contractor pays, the exemption does not apply.
7. Licensure is not important for tax exemption. This is incorrect. If an exempt organization requires licensure to be exempt, they must be licensed at the time of the project. If not, they cannot issue the form or an exemption certificate.
8. Form 17 is the only document needed for tax-exempt purchases. In addition to Form 17, a Nebraska Resale or Exempt Sale Certificate (Form 13) must also be provided to subcontractors when applicable.
9. The Nebraska Department of Revenue does not need to be contacted for exemption status. On the contrary, contractors should verify the exempt status of an organization by contacting the Nebraska Department of Revenue to avoid potential tax liabilities.

Understanding these misconceptions can help ensure compliance with Nebraska tax laws and streamline the purchasing process for construction projects. Always consult the Nebraska Department of Revenue for the most accurate and up-to-date information.

What is the Nebraska 17 form?

The Nebraska 17 form, also known as the Purchasing Agent Appointment and Delegation of Authority for Sales and Use Tax, is a document used by governmental units or exempt organizations in Nebraska. It allows these entities to appoint a prime contractor as their purchasing agent. This appointment enables the contractor to purchase building materials and fixtures for construction projects that will be annexed to property owned or to be owned by the governmental unit or exempt organization without incurring sales tax.

Who must file the Nebraska 17 form?

Any governmental unit or organization that is exempt from sales and use tax in Nebraska may file the Nebraska 17 form. This includes entities that have a construction contract with a prime contractor. It is important to note that not all governmental units or nonprofit organizations are exempt from sales tax. Therefore, it is advisable to verify the exempt status by contacting the Nebraska Department of Revenue.

When should the Nebraska 17 form be filed?

The Nebraska 17 form must be completed and issued to the prime contractor before any building materials are annexed to the project. If the form is not provided prior to the annexation, the contractor will be responsible for paying the sales and use taxes. The governmental unit or exempt organization may then seek a refund of the taxes paid by the contractor.

Where should the Nebraska 17 form be filed?

A copy of the completed Nebraska 17 form should be retained by the governmental unit or exempt organization that issues the form. The original form must be kept by the prime contractor. If the prime contractor delegates authority to any subcontractors, copies of the form must be made for them as well.

What information is required on the Nebraska 17 form?

The Nebraska 17 form requires several key pieces of information, including:

1. Name and address of the prime contractor
2. Name and address of the governmental unit or exempt organization
3. Details of the construction project, including its name and location
4. Effective and expiration dates of the appointment
5. Nebraska exemption number for exempt organizations

Accurate completion of this information is essential for the form to be valid.

Can a prime contractor delegate authority to a subcontractor?

Yes, a prime contractor can delegate authority to act as a purchasing agent to a subcontractor. The prime contractor must complete a separate Nebraska 17 form for each subcontractor who is granted this authority. The subcontractor must retain a copy of the form for their records, and copies must also be provided to the governmental unit or exempt organization.

What happens if the project is not completed within the effective dates?

If the construction project is not completed within the effective and expiration dates specified on the Nebraska 17 form, the governmental unit or exempt organization must issue a new form to extend the appointment. The original form will not remain valid beyond the expiration date, and any purchases made after this date will require payment of sales tax.

What is the Exempt Sale Certificate?

The Exempt Sale Certificate, specifically Form 13, must be provided by the prime contractor to any subcontractor operating as an Option 1 contractor. This certificate, along with a completed Nebraska 17 form, allows the subcontractor to avoid charging sales tax on materials annexed to the specific project. If these forms are not provided, the subcontractor is required to collect and remit sales tax on the applicable materials.

• Power of Attorney (POA): Similar to the Nebraska 17 form, a Power of Attorney allows one party to act on behalf of another. It grants authority to the agent to make decisions and take actions regarding specified matters, often including financial transactions.

• Purchase Order (PO): A Purchase Order is a document issued by a buyer to a seller, indicating the products, quantities, and agreed prices for goods or services. Like the Nebraska 17, it formalizes a transaction and outlines the responsibilities of both parties.

• Contractor Agreement: This document outlines the terms and conditions between a contractor and a client. Similar to the Nebraska 17, it specifies roles, responsibilities, and the scope of work to be performed.

• Delegation of Authority Form: This form allows a principal to delegate authority to another individual. Much like the Nebraska 17, it specifies who is authorized to act on behalf of the principal and under what conditions.

• Exemption Certificate: An Exemption Certificate is used to claim exemption from sales tax. Similar to the Nebraska 17, it serves as proof that the purchaser is exempt from tax on specific purchases.

• Subcontractor Agreement: This document outlines the terms between a contractor and a subcontractor. It is akin to the Nebraska 17 in that it details the scope of work and the delegation of authority to the subcontractor.

• Sales Tax Exemption Application: This application is used to request sales tax exemption status. Like the Nebraska 17, it is essential for organizations seeking to avoid sales tax on eligible purchases.

• Letter of Authorization: A Letter of Authorization grants permission for one party to act on behalf of another. This is similar to the Nebraska 17, as both documents establish a formal relationship and outline the authority granted.

• Durable Power of Attorney Form: To ensure your wishes are honored during incapacitation, access the comprehensive Durable Power of Attorney document that grants trusted individuals the authority to manage your affairs.

• Vendor Agreement: A Vendor Agreement details the terms between a vendor and a buyer. Like the Nebraska 17, it outlines expectations and responsibilities regarding the sale of goods or services.

• Construction Contract: This document outlines the agreement between a client and a contractor for a construction project. Similar to the Nebraska 17, it specifies the terms under which materials and labor will be provided.

The Nebraska 17 form is essential for governmental units and exempt organizations to appoint a prime contractor as their purchasing agent for tax-exempt construction projects. Alongside this form, several other documents are often utilized to ensure compliance and facilitate the purchasing process. Below is a list of these related forms and documents.

• Nebraska Resale or Exempt Sale Certificate (Form 13): This certificate allows contractors to purchase materials without paying sales tax. It must be provided to subcontractors to ensure they do not charge sales tax on materials used in tax-exempt projects.
• Construction Contract: This is the agreement between the governmental unit or exempt organization and the prime contractor. It outlines the terms of the project, including scope, timelines, and payment details.
• Subcontractor Agreement: This document formalizes the relationship between the prime contractor and any subcontractors. It details the work to be performed, payment terms, and the delegation of authority for purchasing materials.
• IRS W-9 Form: This form is necessary for providing your Taxpayer Identification Number (TIN) to other parties for tax reporting. For assistance with filling out the form, check out PDF Templates.
• Sales Tax Exemption Application: This application is submitted to the Nebraska Department of Revenue to confirm the exempt status of the governmental unit or organization. It is essential for establishing eligibility for tax exemptions.
• Project Identification Document: This document provides specific details about the construction project, including its name and location. It helps clarify which project the purchasing agent appointment pertains to.
• Delegation of Authority Form: This form is used by the prime contractor to delegate purchasing authority to subcontractors. It must be completed and retained by all parties involved in the project.
• Tax Refund Application: If an exempt organization becomes licensed after a project is completed, this application allows them to request a refund for any sales tax paid during construction.

Understanding these forms and documents is crucial for ensuring that the purchasing process for tax-exempt projects runs smoothly. Each document serves a specific purpose in maintaining compliance with Nebraska tax laws and protecting the interests of all parties involved.