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Sales tax form instructions have been updated to clarify that aircraft sales include the sale of drones and hot air balloons when listing the amount of sales or use tax relating to aircraft.

Effective on July 1, 2023, the 5.5% state sales and use tax from the sale or lease of ?aircraft? will be credited to the Nebraska Department of Transportation Aeronautics Capital Improvement Fund. The term ?aircraft? is identified in Nebraska Revised Statutes, Section 3-101 as ?Aircraft means any contrivance now known, hereafter invented, used, or designed for navigation of or flight in the air.?? This includes the sale or lease of airplanes, drones, and hot air balloons.

The state tax amount that is from the sale or lease of an aircraft needs to be identified in Section B of the Form 10, Schedule I titled ?MVL, ATV, UTV, Motorboat Leases or Rentals, or Aircraft Sales or Leases? on Line 4a and/or Line 4b.? These new lines are located at the bottom of the Schedule I or on a paper Form 10, it is at the bottom of page 3 of Schedule I.????? ?

For filers of the Nebraska and Local Business Use Tax Return, Form 2 or the Nebraska and Local Individual Use Tax Return, Form 3, you need to complete the Aircraft State Use Tax box that is now on these forms.?

If you have questions on this, please contact Taxpayer?s Assistance at 800-742-7474 (toll free in NE or IA) or 402-471-5729.

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