Nebraska residents who like to download music, movies and books are now seeing sales tax on their monthly bills.
Nebraska Tax Commissioner Doug Ewald says, “The legislature determined that on October 1st music, movies and download of books are subject to sales tax.”
But farmer Chris Hunt says his on-line music provider has overcharged him sales tax.
Hunt lives outside the city limits of Eagle, Nebraska but he’s being charged city sales tax.
Hunt says, “It’s the principle that they’re charging rural customers city tax for services we’re not liable for.”
Nebraska State sales tax is 5.5% but 100 cities in the state tack on one percent more. 62 other towns go even higher to the maximum 7% total sales tax.
Tax Commissioner Ewald says some internet entertainment providers use billing software based on zip codes.
Ewald says, “You have the same zip code for inside and outside of city limits and they’re throwing them all in the city.”
Ewald says customers with sales tax questions should contact the on-line company first and if that doesn’t remove the overcharge then contact the State Department of Revenue. The toll free number is 1-800-742-7474