Food and Beverage Occupation Tax

Prepared Food and Beverage Occupation Tax


The City of Fremont, Nebraska imposed a 1.75% Prepared Food and Beverage Occupation Tax.  Effective October 1, 2015, businesses are required to remit the occupation tax to the City on a monthly basis.  Reports are required, even when there is no activity for the month.  The tax is owed on gross receipts of sales of food and nonalcoholic beverages within the City which are subject to the sales and use tax imposed by Ordinance No. 5343.  The occupation tax is imposed on the business; however, the business may choose to pass the tax onto its customers by itemizing the occupation tax on the customer’s bill as a separate line item.  The City amended the tax rate to 1.25% effective July 1, 2016.

Below is an example on how to calculate the occupation tax and sales tax if the business is passing the tax onto its customer.
Cost of Meal
$50
Add Fremont Occupation Tax (1.75%)
0.63
Subtotal 50.63
Add Sales Tax (7% of Subtotal)
3.55
Total Bill
$54.18
The occupation tax return and payment are due on or before the last business day of the month following the month of collection.  Postmark will not be accepted as proof of timely filing.  Penalty for not filing a return and paying the tax by the due date is 10% per month plus interest of 1% per month.  Records must be maintained for three years for examination by the City.

For a more complete explanation, see Chapter 14 of the Fremont Municipal Code, Sections 14-301 through Section 14-314 which can be accessed at http://www.fremontne.gov/DocumentCenter/View/798.

If you have any questions about the implementation, calculation, or payment of occupation tax, please contact Jody Sanders at (402) 727-2627 or jody.sanders@fremontne.gov.        

Food and Beverage Service Occupation Tax Return