The Nebraska Department of Revenue
The Nebraska Department of Revenue was created Charitable Gaming
effective January 1, 1970, with the State Tax
Commissioner as its chief executive officer. The function of the Charitable Gaming Division is to
oversee all charitable gaming activities in Nebraska,
The State Tax Commissioner is responsible for the
ensuring fair play and collection of gaming revenues.
administration of Nebraska revenue laws. Tax programs
Bingo, lottery by pickle card, county and city lottery,
administered by the State Tax Commissioner include
gift enterprise, and lottery and raffle activities
but are not limited to income tax, sales and use tax,
conducted by nonprofit organizations are all regulated
motor fuels taxes, and numerous miscellaneous taxes.
by the division.
The Nebraska Department of Revenue strives to provide
taxpayers with the most efficient and economical Responsibilities of the division include audits of
administration of the Nebraska revenue laws. licensees, licensing reviews, testing and approval of
gaming equipment, and development of necessary
The Nebraska Department of Revenue is comprised of forms, regulations and legislative proposals. The
the Administration and integrated divisions. division also represents the department at
administrative hearings and assists the Attorney
Administration General and county attorneys in litigation involving
Administration includes the State Tax Commissioner,
Director of Administration/Finance, Hearing Officer, The division provides educational materials to the
Personnel Administrator, Legislative Liaison, Special public outlining the statutory provisions and reporting
Assistants, and Administrative Assistant to the State requirements necessary to conduct legal gaming
Tax Commissioner. They provide the administrative activity. Educational workshops are held for licensees,
support necessary for carrying out the directives of and training materials are developed and presented
the State Tax Commissioner. to the public and law enforcement units.
The Audit Division initiates, implements, and controls
audits for all tax programs administered by the The Field Services Division provides taxpayer
Nebraska Department of Revenue, except those assistance and education, enforcement of the tax laws,
administered by the Charitable Gaming and Motor Fuels and tax collection services. It coordinates
Divisions. The Audit Division also fulfills the statutory communication between taxpayers and the department
responsibility of the State Tax Commissioner to audit through offices located in six Nebraska cities.
the Auditor of Public Accounts.
The Field Services Division informs taxpayers of their
The audit activities of the division are conducted on a rights and responsibilities under the states tax laws,
nationwide basis and are not limited to taxpayers and also assists them in preparing returns for all tax
residing within Nebraska. All taxpayers required to file programs.
a return with the State of Nebraska, regardless of where
their records are maintained, are eligible for audit The division takes corrective action when there are
selection. This applies to all taxpayers, including failures or irregularities in registration and reporting.
businesses and individuals. The Collections area is responsible for obtaining the
The division prepares agreements with taxpayers payment of delinquent taxes for all of the tax programs
allowing the use of the states economic development administered by the Department of Revenue, except
tax incentives and reviews the claims for refunds and motor fuels taxes.
credits allowed by those agreements.
Field Services Division enhances compliance efforts
The Audit Division participates in informational by developing and presenting tax-related educational
exchange agreements with the Internal Revenue materials. The division provides tax information and
Service, the Multistate Tax Commission, and other offers training to taxpayers through industry association
states. meetings, civic organizations, and tax practitioners.
Finance and Information Services enforcement, nonprofit organizations, and retail
businesses, to name a few.
Within the Finance and Information Services Division,
finance prepares the state budget request in Legal
conjunction with the State Tax Commissioner, accounts
for the day-to-day expenditures of the department and The Legal Division serves as internal legal counsel for
prepares monthly reports for management. Finance is the State Tax Commissioner and the entire agency.
also responsible for establishing and implementing This division represents the Nebraska Department of
internal accounting controls. They perform the Revenue at all formal hearings before the State Tax
cashiering function for all the cash and checks received Commissioner and represents the department before
by the Nebraska Department of Revenue. the State Tax Board and Quality Jobs Board.
Systems and Micro Support design, coordinate, and The Legal Division is responsible for initiating and
schedule all mainframe and LAN data processing reviewing all legal documents, proposed legislation,
operations within the Department of Revenue and serve regulations, revenue rulings, contracts, and forms for
as the liaison between this agency and the Central legal content. The division is the departments liaison
Data Processing Division of the Department of with the state Department of Justice and assists the
Administrative Services. Attorney Generals office in any litigation regarding
They analyze new and existing tax programs and
develop systems in accordance with statutory This division also monitors taxation at the federal level
requirements and departmental policy. A vital function for impact on state tax revenue. It coordinates the
of this division is implementing computer hardware and exchange of tax information between the department
software improvements for the department. and the Internal Revenue Service and other states
revenue departments. The division reviews tax
All electronic commerce functions for the department information confidentiality laws and issues opinions
are handled by this division. to all employees concerning the confidentiality of
Investigation revenue data. It also coordinates the implementation
of new revenue laws and monitors the results in order
The Investigations Division serves as the investigative to ensure the smooth functioning of new and existing
arm for the State Tax Commissioner and the entire administrative systems. Its duties also include
Nebraska Department of Revenue, to include both responding verbally or in writing to the most difficult
external and internal investigations. As a result, the technical questions posed to this agency.
Investigation Division works closely with the Charitable
Legal assistance is provided to county officials in the
Gaming Division, the Lottery Division, the Motor Fuels
administration of documentary stamp tax and the
Division, the Field Services Division, and the Legal
homestead exemption program. An up-to-date legal
Division of the Department, in conducting these
library is maintained within the department under the
investigations. Also a part of the Investigations Division
direction of the Legal Division.
is the Inspections Section which conducts regulatory-
type on-sight inspections involving the Gaming Division,
the Lottery Division, and the Field Services Division.
The Investigations Divisions specific functions are to The Lottery Division launched the Nebraska Lottery
conduct investigations, some of which are pursued the 37th Lottery in the nation on September 11,
criminally, some administratively and some both 1993.
criminally and administratively for the aforementioned Initial lottery products consisted of instant ticket games
divisions; to conduct background investigations, both which allow players to determine instantly if they have
for prospective licensees, prospective vendors and won a prize, and offer 1 in 5 odds of doing so. Planning
department employees as related to the Lottery and began in October 1993 for the introduction of on-line
Gaming Division; to conduct on-sight inspections games, such as the multi-state game Powerball, which
involving the printing of lottery tickets; to conduct on- began sales through Nebraska Lottery retail outlets
sight regulatory-type inspections involving licensees, on July 21, 1994.
contractors and businesses for compliance purposes;
to maintain a working relationship with law enforcement Division personnel are organized into marketing,
agencies at all levels, to include prosecuting attorneys; investigations, finance and accounting, and
to provide training to various groups, to include law administrative units. The divisions main offices are
located in Lincoln, with Claim Centers within department property tax laws. The division provides advice
field offices in Scottsbluff, Grand Island, North Platte, concerning the uniform and proportionate valuation of
Norfolk, and Omaha. real property. Additionally, information is provided to
property owners concerning the level and quality of
The Lottery Division recruits and licenses lottery the assessment of property by each county.
retailers; develops, implements and reviews advertising
and promotional campaigns; monitors lottery sales and The division is also responsible for determining
collects net proceeds from lottery retailers; and assessable valuation of all property in each school
develops necessary forms and procedures, rules, and district, used in the formula for state aid to school
legislation. The Lottery Division contracts for outside districts; valuation and distribution of centrally
security, marketing, and game production services assessed property such as railroads, public service
when necessary. entities, railcar companies, and air carriers;
administering the county data processing services for
After prizes and expenses, lottery proceeds will be used county assessors and treasurers administrative
to fund grants for special environmental projects, functions; and prepares schedules of values for motor
innovative education programs, and compulsive vehicles subject to motor vehicle tax.
gamblers assistance as specified by the Legislature.
The division is comprised of staff located centrally at
Motor Fuels the Department of Revenue and staff located in six
Nebraska cities. The staff provide assistance to the
The Motor Fuels Division administers and regulates
county assessors regarding level and quality of real
all Nebraska motor fuel tax programs, including motor
property assessment methods to improve assessment
vehicle fuels (gasoline and gasohol), diesel fuel, aircraft
practices and procedures.
fuel, and compressed fuel. The division also
administers the Petroleum Release Remedial Action
The Research Division prepares revenue estimates and
Through our account representative structure, each
cash flow projections for use by the State Tax
licensee is assigned to an Account Representative who
Commissioner and the Nebraska Legislature.
provides them personalized assistance in all aspects
Forecasting models have been developed by the
of motor fuel tax compliance. We also provide toll free
Research Section and are updated periodically.
WATS access for the convenience of all licensees.
Services provided by Wharton Econometric Forecasting
The division also conducts field audits with staff Associates and Data Resources, Inc., are utilized in
assigned to Lincoln, Omaha, and Kearney. making forecasts of national trends that affect
Nebraskas economic activity. This information is used
Property Tax by the Nebraska Economic Forecasting Advisory Board
at their meetings to set General Fund revenue
Property Tax Division is directed by the Property Tax
Administrator. As of September 1, 1996, the powers
and duties of the State Tax Commissioner relating to The Research Division analyzes information and
assessment, valuation and taxation of property prepares reports regarding all tax programs
transferred to the Property Tax Administrator. The administered by the department. Published reports
Property Tax Administrator is appointed by the include the Annual Report of the Nebraska Department
Governor, with approval by the legislature, for a six- of Revenue, the annual report of Aid to Local
year term. Governmental Subdivisions, and the Tax Expenditure
Report. This division maintains a library of extensive
The purpose of the Property Tax Division is to develop
research materials, and provides estimates of the fiscal
information, in various formats, that assists the
impact of proposed legislation on state revenue.
administrators, payers and beneficiaries of the property
taxes to make informed decisions concerning the The Research Division also allocates the state aid
quality of the assessment function of the property tax payments to counties, cities and natural resource
system in Nebraska. districts under the provisions of the aid to local
The division provides legal, policy and assessment
information through regulations, rulings, directives, Revenue Operations
standards, manuals and education, to the county
assessors to ensure the uniform execution of the Revenue Operations Division is responsible for receiving
and processing the monies and refunds for most tax procedures and journal programs. Electronically filed
programs administered by the Nebraska Department tax returns are also monitored for errors. Errors are
of Revenue. Revenue Operations Division is also detected by staff and corrected using on-line video
responsible for the Taxpayers Assistance in the Lincoln display terminals. These corrections may result in the
office. Specialized divisions, such as Motor Fuels, issuance of notices of balance dues, or changes in
Charitable Gaming, and Lottery, each handle their own refunds. Taxpayer written correspondence concerning
tax categories. The larger, broad-based tax programs, income tax are researched and answered by this
such as sales tax and income tax, have all tax section.
applications, returns, reports, claims, and assistance
processed by the Revenue Operations Division. Taxpayers Assistance provides instructions on
preparing state tax returns, application of state tax
The division is organized into eight functional sections. statues, rules, regulations, and policies. The taxpayer
These are Initial Operations, Validation, Clearance, receives specialized attention by making use of an
Teleprocessing, Post Processing, Claims, Taxpayers automated telephone response system. The status of
Assistance, and Records. All tax returns flow through a current year individual income tax refund may be
an established processing cycle which utilizes the accessed through this system 24 hours a day.
functions of each of the sections.
After the errors have been resolved to the individual
The Initial Operations Section receives all incoming accounts, the returns proceed to Records Section
documents through the mail or other receiving areas. where the returns are microfilmed for later retrieval, if
Mail is removed from the envelopes and is sorted and necessary, and archival purposes. A computerized
batched. Returns are validated for remittances. Checks return indexing system is updated with location data
are microfilmed, endorsed, and sent to the Finance for retrieval purposes. After microfilming, the returns
Division for accounting and deposit. Most mail received are transferred to a long-term storage site and
by the department flows through this section. eventually destroyed according to a specified retention
The majority of tax returns are sent to the Clearance schedule.
Section where they are reviewed and edited for The Claims Section handles refund requests outside
processing. Problems are resolved through internal the normal processing cycle and the applications for
research or communication with the taxpayers. Homestead Exemption from property tax. Accounts are
Taxpayer written correspondence for business tax verified to ensure that the refund or exemption claimed
programs are also researched and answered by this is correct and complies with statues and regulations.
After review, the tax returns and documents are routed Special Services
to Teleprocessing where detailed information from each Forms Design Section provides forms and publication
return is entered into the taxpayers computerized design services to the department and its regional
account. Data is merged with preliminary data entered offices. Other office support services include
at the validation function to create a complete purchasing and office supplies, security,
computerized record of each return received. telecommunication, transportation, forms and
From data entry in Teleprocessing, the returns are sent equipment inventory, office layout and design, and
to the Post Processing Section where errors are caught maintenance for the departments office machines and
and resolved through computerized balance and edit other equipment.