How to Fill Out Nebraska Form 17: Sections, Dates, and Deadlines

To fill out Nebraska Form 17, the exempt project owner completes Section A by naming the prime contractor, identifying the exempt entity (including its Nebraska Exemption Number if it is a nonprofit or educational institution), describing the project and contract, entering a specific effective date and a specific expiration date, and signing as an authorized official. The signed original goes to the contractor, who keeps it on file and uses Section B on separate copies to delegate purchasing-agent authority to each subcontractor. Every signature must land before any building materials are annexed to the project.¹

Form 17 is the Purchasing Agent Appointment and Delegation of Authority for Sales and Use Tax. It lets an exempt governmental unit, nonprofit, or educational institution appoint a construction contractor to buy building materials free of Nebraska’s 5.5% state sales tax and any applicable local option tax on the entity’s behalf. It is not a general exempt-sale certificate; that is Form 13’s job.

Before You Start: Confirm You Can Issue the Form

Only three kinds of project owners may issue a Form 17:

Governmental units that are exempt from Nebraska sales and use tax, including state agencies, counties, cities, school districts, and other political subdivisions.
Nonprofit organizations that already hold an Exempt Organization Certificate of Exemption from the Nebraska Department of Revenue.
Educational institutions that hold the same exempt certificate.

A nonprofit or educational institution has to apply for and receive the exemption certificate before it can issue a Form 17.² Organizations that require state licensure, such as nonprofit hospitals, need the license from the Nebraska Department of Health and Human Services in hand first. An unlicensed organization still under construction cannot appoint a purchasing agent; it would need to pay the tax now and seek a refund once the license issues.

Even for an eligible issuer, the appointment reaches only building materials that will be physically attached to the exempt entity’s property and that the entity pays for, directly or through its contractor.³

Section A: What the Project Owner Fills In

Section A is where the exempt entity appoints the prime contractor. Each field has a specific requirement:

Name and address of the contractor. The full legal name and mailing address of the prime contractor being appointed.
Name and address of the exempt entity. The governmental unit, nonprofit, or educational institution issuing the appointment.
Nebraska Exemption Number. Required for nonprofits and educational institutions; this is the number shown on the Exempt Organization Certificate of Exemption. Governmental units leave this blank.
Project name and location. The physical street address where construction will take place, plus the project name, for example “East Wing Addition” or “New School Auditorium.”
Contract name, number, and description. Enough detail to tie the appointment to one specific construction contract.
Effective date. The date the appointment begins. The actual effective date is whichever is later: this date or the date the project owner signs.
Expiration date. A specific calendar date when the appointment ends.
Authorized signature. A proper governmental official or an officer of the exempt organization must sign. Anyone else signing has to hold a power of attorney, and a copy must be attached to the form.

Once Section A is signed, the original Form 17 goes to the contractor and the project owner keeps a copy.¹ The form is not filed with the Nebraska Department of Revenue; it stays with the parties to the project.

Section B: Delegating Authority to Subcontractors

A prime contractor who has been appointed can pass that authority down to subcontractors using Section B. A subcontractor that received a delegation can further delegate to its own subcontractors the same way.

Each subcontractor needs its own separate Form 17. A single blanket delegation covering several subcontractors is not valid. The delegating contractor uses a copy of the Form 17 it received from the project owner and completes Section B:

Subcontractor name and address. Full legal name and mailing address of the subcontractor receiving the delegation.
Effective date and expiration date. Same rules as Section A: specific dates, no open-ended language.
Portion of project. A description of the subcontractor’s scope, for example “electrical wiring for second floor.”
Signatures. Both the delegating contractor (or subcontractor) and the receiving subcontractor sign. Each signature must come from an owner, partner, or corporate officer, unless a power of attorney is attached.

If Section B runs out of room for additional delegations, fill out a new Form 17 Section B and attach a copy of the original Section A to it. Copies of each delegation go to the contractor, the subcontractor, and the exempt entity.¹

Dates: The Rule That Trips People Up

Timing is the detail most likely to blow up the exemption. The appointment must be signed and delivered before the contractor annexes any building materials to the project.³ “Before” means before a single nail, board, or pipe is permanently attached. If the form arrives late, the exemption only applies going forward from the later of the effective date or the project owner’s signature date, and anything already annexed is taxable. The same timing rule governs Section B delegations to subcontractors.

The expiration date has to be a real calendar date. “Upon completion” or similar open-ended language is not accepted.¹ Pick a date that comfortably covers the expected construction window. If the project runs long and building materials still need to be annexed after that date, issue a new Form 17 to keep the exemption alive.

Why the strictness matters: contractors who pay sales or use tax on their materials (Nebraska’s Option 2 and Option 3 contractors) owe that tax on everything annexed before the appointment’s effective date. A late form does not retroactively undo those purchases.

What Form 17 Does and Doesn’t Cover

The appointment reaches only building materials and fixtures that will be physically annexed to the exempt entity’s property. It does not cover:

Tools, supplies, and equipment the contractor uses on the job but does not leave behind.
Scaffolding, barricades, and other temporary structures.
Manufacturing machinery and equipment, even if installed at the project site.

Those items remain taxable no matter who issued the Form 17.⁴ Buying them tax-free under a Form 17 creates a use tax liability that will surface at audit.

If what you need is routine tax-free purchasing by an exempt organization, a resale certificate for inventory, or an agricultural exemption, Form 17 is the wrong document. That work belongs to Form 13, the Nebraska Resale or Exempt Sale Certificate.⁵ Form 17 exists specifically for construction projects where an exempt entity is naming a contractor as its purchasing agent.

If You Missed the Deadline

A late Form 17 does not permanently kill the exemption, but it does force a slower path. The contractor pays the sales or use tax on the materials annexed before the appointment took effect. The exempt entity can then file a refund claim with the Nebraska Tax Commissioner to recover that tax.³ The contractor may also apply for a refund or use the tax paid as a credit against a future use tax liability.

The refund route requires documenting exactly which materials were annexed before the effective date and how much tax was paid on them. Getting the form signed and delivered before the first material goes in is far simpler.

Keep the Form on File

Both the contractor and the exempt entity have to keep copies of every Form 17, including all Section B delegations, with their business records. Nebraska requires sales tax records to be retained for at least three years from the date they are created, unless the Tax Commissioner authorizes earlier destruction in writing.⁶

A contractor who cannot produce a valid Form 17 during a Department of Revenue audit can be held liable for the uncollected tax on all materials purchased under the appointment. The form is the proof that the tax-free purchases were authorized, so a paper copy in the project file plus a digital backup is sensible insurance against a lost document turning into a tax bill years after the building is finished.

1
Nebraska Department of Revenue. Purchasing Agent Appointment Form 17
2
Nebraska Department of Revenue. Nebraska Exemption Application for Sales and Use Tax, Form 4
3
Nebraska Legislature. Nebraska Code 77-2704.15
4
Nebraska Department of Revenue. 316 Nebraska Admin Code ch 1 017 – Contractors
5
Nebraska Department of Revenue. Nebraska Sales Tax Exemptions
6
Nebraska Legislature. Nebraska Code 77-2711