FOR IMMEDIATE RELEASE:
September 11, 2007
FOR INFORMATION CONTACT:
Douglas A. Ewald, State Tax Commissioner
OCTOBER 1 CHANGES IN SALES AND USE TAX
LINCOLN - State Tax Commissioner Douglas Ewald announced today that, effective October 1, 2007, the
cities of Hartington and Wakefield will begin imposing a city sales and use tax of one percent (1.0%); and
the city of Pawnee City will begin imposing a new city sales tax at the rate of one and one-half percent
(1.5%). Also effective October 1, 2007, the cities of Schuyler and Waterloo will increase their current one
percent (1.0%) city sales tax to one and one-half percent (1.5%).
Merchants in those cities are being notified of the changes. According to Ewald, the Department of
Revenue also provides written notice of changes to sales tax permitholders in affected cities. Literature
listing jurisdictions with a local sales and use tax is being updated and distributed.
Ewald said that all retailers who sell items for delivery in a community with a local (city) sales tax are
responsible for collecting both the local and state sales taxes. Local sales tax receipts are reported to the
Department of Revenue along with state sales tax receipts, and are returned to the community from
which they were collected. In the event sales tax is not collected on a taxable sale by the merchant at
the time of purchase, the buyer is responsible for paying the appropriate use tax directly to the
Local sales and use taxes can be set at 0.5%, 1.0% and 1.5%. With these latest changes on October 1,
2007, three cities and one county will have a 0.5% sales and use tax rate; 103 cities will have a 1.0% rate;
and 62 cities will have a 1.5% rate.
More detailed information about sales and use tax is available on the department's Web site at
, including rates, forms, information guides, revenue rulings, frequently asked
questions, and a schedule of the department's free educational seminars.
Douglas A. Ewald
State Tax Commissioner