Lincoln imposes occupation taxes on specific business classes including telecommunications, restaurants, hotels, and car rentals under LMC Chapter 3.24, separate from Nebraska's uniform 5.5% sales tax remitted to the state.
Under LMC Chapter 3.24, Lincoln levies occupation taxes targeting specific industries: 4% on hotel lodging (Chapter 3.28), 2% on prepared food and beverages at restaurants and bars (Chapter 3.30), 4% on telecommunications, and various rates on car rentals and entertainment venues. These city occupation taxes are layered on top of Nebraska's 5.5% statewide sales tax and Lincoln's 1.75% local sales tax. The restaurant-bar occupation tax funds the West Haymarket Joint Public Agency including Pinnacle Bank Arena.
Late filing or underpayment brings interest, penalties, and potential business license suspension. Willful evasion can be charged as a Nebraska misdemeanor with personal owner liability.
See how Lincoln's business tax classification rules stack up against other locations.
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