Nebraska Revised Statutes

Neb. Rev. Stat. § 77-2704.13 (2026)

Fuel, energy, or water sources; exemption

✓ current as of July 2026
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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.

Notes of Decisions
Cited in 4 cases, 1995–2020 · leading case: Metro. Utils. Dist. v. Balka, 560 N.W.2d 795 (Neb. 1997).
Metro. Utils. Dist. v. Balka, 560 N.W.2d 795 (Neb. 1997). · cites it 12× “92 of the requested refund, but denied the remainder of the claim because MUD’s use of electricity to transport treated water from two treatment facilities into storage did not constitute “manufacturing” or “processing” under Neb. Rev. Stat. § 77-2704.13 (Cum. Supp. 1992), and…”
Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947 (Neb. 2020). · cites it 8× “The Department contends, pursuant to Metropolitan Utilities Dist. v.”
Omaha Pub. Power Dist. v. Nebraska Dep't of Revenue, 537 N.W.2d 312 (Neb. 1995). · cites it 4× “" Neb.Rev.Stat. § 77-2704.13 (Cum.Supp.1992) provided: *319 Sales and use taxes shall not be imposed on the gross receipts from the sale .”
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). · cites it 3× “Under Neb. Rev. Stat. § 77-2704.13 (1) (Reissue 2003), the purchase of certain energy sources or fuels is exempt from sales and use tax “when more than fifty percent of the amount purchased is for use directly in irrigation or farming.”
— Neb. Rev. Stat. § 77-2704.13(1) — 1 case
Kerford Limestone Co. v. Nebraska Dept. of Rev., 287 Neb. 653 (Neb. 2014). “Under Neb. Rev. Stat. § 77-2704.13 (1) (Reissue 2003), the purchase of certain energy sources or fuels is exempt from sales and use tax “when more than fifty percent of the amount purchased is for use directly in irrigation or farming.”
— Neb. Rev. Stat. § 77-2704.13(2) — 1 case
Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947 (Neb. 2020). “The Department contends, pursuant to Metropolitan Utilities Dist. v.”
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