Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental of and the storage, use, or other consumption in this state of: (1) Sales and purchases of electricity, coal, gas, fuel oil, diesel fuel, tractor fuel, propane, gasoline, coke, nuclear fuel, butane, wood as fuel, and corn as fuel when more than fifty percent of the amount purchased is for use directly in irrigation or farming; (2) Sales and purchases of such energy sources or fuels when more than fifty percent of the amount purchased is for use directly in processing, manufacturing, or refining, in the generation of electricity, in the compression of natural gas for retail sale as a vehicle fuel, or by any hospital. For purposes of this subdivision, processing includes the drying and aerating of grain in commercial agricultural facilities; and (3) Sales and purchases of water used for irrigation of agricultural lands and manufacturing purposes.
Neb. Rev. Stat. § 77-2704.13
Fuel, energy, or water sources; exemption
Applied in 4 court decisions — leading case Omaha Public Power District v. Nebraska Department of Revenue (1995)
Most recently applied in Ash Grove Cement Co. v. Nebraska Dept. of Rev. (August 2020)
Laws 1992, LB 871, § 37; Laws 1992, Fourth Spec
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Nebraska Legislature. Reproduced from public-domain Nebraska statutes; confirm against the official source for the current text. Not legal advice.