Sales Tax State Activity Update - November 2008

Nebraska Legal – Court Records Bailed from Sales and Use Tax

Effective October 1, 2008 sales and use tax shall not be imposed on the gross receipts from the sale, use, or other consumption in this state of depositions, bills of exceptions, and transcripts or copies of such depositions, bills of exceptions, and transcripts prepared and sold by a court reporter. Sales of videotaped depositions are exempt only if prepared and sold by a court reporter. If a person other than a court reporter prepares the videotape, then sales of the videotape to a court reporter or to any other party are taxable.

Definitions:

• Court Reporter – A person who possesses the knowledge, skill, and ability to produce a verbatim record of court and other legal proceedings (for example: depositions, administrative hearings, and arbitrations). A “verbatim record” is one which accurately reflects the spoken word and nonverbal communication and action.
• Deposition – A written declaration under oath or a videotape taken under oath in accordance with procedures provided by law, made upon notice to the adverse party for the purpose of enabling him or her to attend and cross examine, or made upon written interrogatories
• Bill of Exceptions - A verbatim record of anything and everything said or done by anyone in the course of trial or any other legal proceeding, any objection to the court’s proposed instructions or to instructions tendered by any party, together with the court’s rulings thereon, and any post trial proceeding; amendments to the bill of exceptions, together with the court’s rulings thereon; and the index of the bill of exceptions.
• Transcript - A writing or record (original or copy) of judicial, legislative, administrative, or other legal proceedings, including, but not limited to: pleadings upon which the case was tried; the judgment, decree, or final order sought to be reversed, vacated, or modified; the lower court’s memorandum opinion, if any; and other parts of the record as are necessary and material to the assignments of error.

Any person, other than a court reporter, selling depositions, bills of exceptions, and transcripts or copies of depositions, bills of exceptions, and transcripts in any tangible format must collect sales tax.

This Revenue Ruling may be viewed at the Nebraska Department of Revenue
(Nebraska Department of Revenue, Revenue Ruling 01-08-05, 10/24/08)

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address