77-101. Definitions, where found.

For purposes of Chapter 77 and any statutes dealing with taxation, unless the context otherwise requires, the definitions found in sections 77-102 to 77-132 shall be used.

Source:Report of 1943 Statute Commission, § 77-101; Laws 1943, c. 115, § 1, p. 401; R.S.1943, § 77-101; Laws 1987, LB 508, § 1;    Laws 1992, LB 1063, § 43; Laws 1992, Second Spec. Sess., LB 1, § 42;    Laws 1997, LB 270, § 2;    Laws 1999, LB 194, § 5;    Laws 2000, LB 968, § 22;    Laws 2001, LB 170, § 2;    Laws 2003, LB 292, § 3;    Laws 2005, LB 263, § 2.    


Annotations

77-102. Property, defined.

The word property includes every kind of property, tangible or intangible, subject to ownership.

Source:Laws 1903, c. 73, § 3, p. 389; R.S.1913, § 6291; Laws 1921, c. 133, art. I, § 1, p. 545; C.S.1922, § 5808; C.S.1929, § 77-101; R.S.1943, § 77-102.


Annotations

77-103. Real property, defined.

Real property shall mean:

(1) All land;

(2) All buildings, improvements, and fixtures, except trade fixtures;

(3) All electric generation, transmission, distribution, and street lighting structures or facilities owned by a political subdivision of the state;

(4) Mobile homes, cabin trailers, and similar property, not registered for highway use, which are used, or designed to be used, for residential, office, commercial, agricultural, or other similar purposes, but not including mobile homes, cabin trailers, and similar property when unoccupied and held for sale by persons engaged in the business of selling such property when such property is at the location of the business;

(5) Mines, minerals, quarries, mineral springs and wells, oil and gas wells, overriding royalty interests, and production payments with respect to oil or gas leases; and

(6) All privileges pertaining to real property described in subdivisions (1) through (5) of this section.

Source:Laws 1903, c. 73, § 1, p. 389; R.S.1913, § 6289; Laws 1921, c. 133, art. I, § 2, p. 545; C.S.1922, § 5809; C.S.1929, § 77-102; R.S.1943, § 77-103; Laws 1951, c. 257, § 1, p. 881; Laws 1961, c. 372, § 1, p. 1147; Laws 1969, c. 638, § 1, p. 2551; Laws 1989, Spec. Sess., LB 1, § 1; Laws 1991, LB 829, § 5; Laws 1992, LB 1063, § 44; Laws 1992, Second Spec. Sess., LB 1, § 43;    Laws 1997, LB 270, § 3;    Laws 2007, LB334, § 13;    Laws 2019, LB218, § 1.    


Annotations

77-103.01. Class or subclass of real property, defined.

Class or subclass of real property means a group of properties that share one or more characteristics typically common to all the properties in the class or subclass, but are not typically found in the properties outside the class or subclass. Class or subclass includes, but is not limited to, the classifications of agricultural land or horticultural land listed in section 77-1363, parcel use, parcel type, location, geographic characteristics, zoning, city size, parcel size, and market characteristics appropriate for the valuation of such land. A class or subclass based on market characteristics shall be based on characteristics that affect the actual value in a different manner than it affects the actual value of properties not within the market characteristic class or subclass.

Source:Laws 2001, LB 170, § 3;    Laws 2003, LB 291, § 1.    


Annotations

77-104. Personal property, defined.

The term personal property includes all property other than real property and franchises.

Source:Laws 1903, c. 73, § 2, p. 389; R.S.1913, § 6290; Laws 1921, c. 133, art. I, § 3, p. 545; C.S.1922, § 5810; C.S.1929, § 77-103; R.S.1943, § 77-104.


Annotations

77-105. Tangible personal property, intangible personal property, defined.

The term tangible personal property includes all personal property possessing a physical existence, excluding money. The term tangible personal property also includes trade fixtures, which means machinery and equipment, regardless of the degree of attachment to real property, used directly in commercial, manufacturing, or processing activities conducted on real property, regardless of whether the real property is owned or leased, and all depreciable tangible personal property described in subsection (9) of section 77-202 used in the generation of electricity using wind, solar, biomass, or landfill gas as the fuel source. The term intangible personal property includes all other personal property, including money.

Source:Laws 1921, c. 133, art. I, § 4, p. 545; C.S.1922, § 5811; C.S.1929, § 77-104; Laws 1933, c. 156, § 2, p. 592; C.S.Supp.,1941, § 77-104; R.S.1943, § 77-105; Laws 1991, LB 829, § 6; Laws 2007, LB334, § 14;    Laws 2010, LB1048, § 10;    Laws 2011, LB360, § 1;    Laws 2015, LB424, § 2.    


Annotations

77-106. Money, defined.

The term money includes all kinds of coin and all kinds of paper, issued by or under authority of the United States, circulating as money.

Source:Laws 1903, c. 73, § 4, p. 389; R.S.1913, § 6292; Laws 1921, c. 133, art. I, § 5, p. 545; C.S.1922, § 5812; C.S.1929, § 77-105; R.S.1943, § 77-106.


77-107. Credits, defined.

The word credits includes corporation shares of stock, accounts, contracts for cash or labor, bills of exchange, judgments, choses in action, liens of any kind, other than real estate mortgages, securities, debentures, bonds, other than those of the United States, annuities, and all other demands for labor or other valuable thing, whether due or to become due.

Source:Laws 1903, c. 73, § 5, p. 389; R.S.1913, § 6293; Laws 1921, c. 133, art. I, § 6, p. 546; C.S.1922, § 6813; C.S.1929, § 77-106; R.S.1943, § 77-107.


Annotations

77-108. County board, defined.

The term county board includes both county commissioners and supervisors, as the case may be.

Source:Laws 1903, c. 73, § 6, p. 389; R.S.1913, § 6294; Laws 1921, c. 133, art. I, § 7, p. 546; C.S.1922, § 5814; C.S.1929, § 77-107; R.S.1943, § 77-108.


77-109. County tax, defined.

The term county tax includes all taxes due to the county, school districts and other subdivisions of the county, which are levied and collected by the county.

Source:Laws 1903, c. 73, § 7, p. 389; R.S.1913, § 6295; Laws 1921, c. 133, art. I, § 8, p. 546; C.S.1922, § 5815; C.S.1929, § 77-108; R.S.1943, § 77-109.


Annotations

77-110. Repealed. Laws 2000, LB 968, § 91.

77-111. Township, precinct, defined.

The words township and precinct shall each include the other, and shall also include towns in counties under township organization.

Source:Laws 1903, c. 73, § 9, p. 390; R.S.1913, § 6297; Laws 1921, c. 133, art. I, § 10, p. 546; C.S.1922, § 5817; C.S.1929, § 77-110; R.S.1943, § 77-111.


77-112. Actual value, defined.

Actual value of real property for purposes of taxation means the market value of real property in the ordinary course of trade. Actual value may be determined using professionally accepted mass appraisal methods, including, but not limited to, the (1) sales comparison approach using the guidelines in section 77-1371, (2) income approach, and (3) cost approach. Actual value is the most probable price expressed in terms of money that a property will bring if exposed for sale in the open market, or in an arm's length transaction, between a willing buyer and willing seller, both of whom are knowledgeable concerning all the uses to which the real property is adapted and for which the real property is capable of being used. In analyzing the uses and restrictions applicable to real property, the analysis shall include a consideration of the full description of the physical characteristics of the real property and an identification of the property rights being valued.

Source:Laws 1903, c. 73, § 12, p. 390; R.S.1913, § 6300; Laws 1921, c. 133, art. II, § 1, p. 546; C.S.1922, § 5820; C.S.1929, § 77-201; Laws 1939, c. 102, § 1, p. 461; C.S.Supp.,1941, § 77-201; R.S.1943, § 77-112; Laws 1955, c. 289, § 1, p. 918; Laws 1957, c. 320, § 1, p. 1138; Laws 1967, c. 493, § 1, p. 1684; Laws 1971, LB 945, § 1;    Laws 1985, LB 30, § 1;    Laws 1985, LB 271, § 1;    Laws 1989, LB 361, § 3;    Laws 1991, LB 404, § 1;    Laws 1991, LB 320, § 1;    Laws 1992, LB 1063, § 46; Laws 1992, Second Spec. Sess., LB 1, § 45;    Laws 1996, LB 934, § 1;    Laws 1997, LB 270, § 4;    Laws 1997, LB 342, § 1;    Laws 2000, LB 968, § 23;    Laws 2003, LB 292, § 4;    Laws 2003, LB 295, § 1.    


Annotations

77-113. Person, defined.

The word person includes any number of persons and any partnership, limited liability company, association, joint-stock company, corporation, or other entity that may be the owner of property.

Source:Laws 1903, c. 73, § 10, p. 390; R.S.1913, § 6298; Laws 1921, c. 133, art. I, § 11, p. 546; C.S.1922, § 5818; C.S.1929, § 77-111; R.S.1943, § 77-113; Laws 1993, LB 121, § 492.    


Annotations

77-114. Gender and number, how construed.

The words used in the singular shall include the plural; and in the masculine gender shall include the feminine and neuter genders, and vice versa, as the case may require.

Source:Laws 1903, c. 73, § 11, p. 390; R.S.1913, § 6299; Laws 1921, c. 133, art. I, § 12, p. 546; C.S.1922, § 5819; C.S.1929, § 77-112; R.S.1943, § 77-114.


Cross References

Annotations

77-115. County assessor, defined.

County assessor includes an elected or appointed county assessor or a county clerk who is an ex officio county assessor.

Source:Laws 1987, LB 508, § 2;    Laws 1990, LB 821, § 41;    Laws 2000, LB 968, § 24;    Laws 2003, LB 292, § 5;    Laws 2008, LB965, § 2;    Laws 2015, LB261, § 5.    


Cross References

77-116. County official, defined.

The term county official shall include any county officer or employee of a county officer who is charged with the duty of valuing, assessing, or equalizing property for property tax purposes.

Source:Laws 1987, LB 508, § 3.    


77-117. Improvements on leased land, defined.

Improvements on leased land shall mean any item of real property defined in subdivisions (2) through (5) of section 77-103 which is located on land owned by a person other than the owner of the item.

Source:Laws 1992, LB 1063, § 45; Laws 1992, Second Spec. Sess., LB 1, § 44;    Laws 1997, LB 270, § 5;    Laws 2019, LB218, § 2.    


77-118. Nebraska adjusted basis, defined; trade in of property; how treated.

(1) Nebraska adjusted basis shall mean the adjusted basis of property as determined under the Internal Revenue Code increased by the total amount allowed under the code for depreciation or amortization or pursuant to an election to expense depreciable property under section 179 of the code.

(2) For purchases of depreciable personal property occurring on or after January 1, 2018, if similar personal property is traded in as part of the payment for the newly acquired property, the Nebraska adjusted basis shall be the remaining federal tax basis of the property traded in, plus the additional amount that was paid by the taxpayer for the newly acquired property.

Source:Laws 1992, LB 1063, § 47; Laws 1992, Second Spec. Sess., LB 1, § 46;    Laws 1995, LB 574, § 63;    Laws 2018, LB1089, § 1;    Laws 2019, LB663, § 1.    


Annotations

77-119. Depreciable tangible personal property, defined.

Depreciable tangible personal property shall mean tangible personal property which is used in a trade or business or used for the production of income and which has a determinable life of longer than one year.

Source:Laws 1992, LB 1063, § 48; Laws 1992, LB 719A, § 204.    


Annotations

77-120. Net book value of property for taxation, defined.

(1) Net book value of property for taxation shall mean that portion of the Nebraska adjusted basis of the property as of the assessment date for the applicable recovery period in the table set forth in this subsection.

NET BOOK VALUE AS A PERCENT
OF NEBRASKA ADJUSTED BASIS
Year Recovery Period (in years)
3 5 7 10 15 20
1 75.00 85.00 89.29 92.50 95.00 96.25
2 37.50 59.50 70.16 78.62 85.50 89.03
3 12.50 41.65 55.13 66.83 76.95 82.35
4 0.00 24.99 42.88 56.81 69.25 76.18
5 8.33 30.63 48.07 62.32 70.46
6 0.00 18.38 39.33 56.09 65.18
7 6.13 30.59 50.19 60.29
8 0.00 21.85 44.29 55.77
9 13.11 38.38 51.31
10 4.37 32.48 46.85
11 0.00 26.57 42.38
12 20.67 37.92
13 14.76 33.46
14 8.86 29.00
15 2.95 24.54
16 0.00 20.08
17 15.62
18 11.15
19 6.69
20 2.23
21 0.00

Net book value as a percent of Nebraska adjusted basis shall be calculated using the one-hundred-fifty-percent declining balance method, switching to straight line, with a one-half-year convention.

(2) The applicable recovery period for any item of property shall be determined as follows:

(a) Three-year property shall include property with a class life of four years or less;

(b) Five-year property shall include property with a class life of more than four years and less than ten years;

(c) Seven-year property shall include property with a class life of ten years or more but less than sixteen years;

(d) Ten-year property shall include property with a class life of sixteen years or more but less than twenty years;

(e) Fifteen-year property shall include property with a class life of twenty years or more but less than twenty-five years; and

(f) Twenty-year property shall include property with a class life of twenty-five years or more.

(3) Class life shall be based upon the anticipated useful life of a class of property and shall be determined by the Property Tax Administrator under the Internal Revenue Code.

(4) One-half-year convention shall be a convention which treats all property placed in service during any tax year as placed in service on the midpoint of such tax year.

(5) The percent shown for year one shall be the percent used for January 1 of the year following the year the property is placed in service.

Source:Laws 1992, LB 1063, § 49; Laws 1992, Second Spec. Sess., LB 1, § 47;    Laws 1995, LB 490, § 27;    Laws 1995, LB 574, § 64;    Laws 2016, LB775, § 1.    


Annotations

77-121. Taxable property, defined.

Taxable property shall mean any real or tangible personal property subject to tax pursuant to law and not exempt from tax.

Source:Laws 1992, LB 1063, § 50; Laws 1992, Second Spec. Sess., LB 1, § 48.    


77-122. Purchase, defined.

Purchase shall include taking by sale, discount, negotiation, or any other transaction for value creating an interest in property except liens. Purchase shall not include transfers for stock or other ownership interests upon creation, dissolution, or any other tax-free reorganization for income tax purposes of any corporation, partnership, limited liability company, trust, or other entity.

Source:Laws 1992, LB 1063, § 51; Laws 1992, Second Spec. Sess., LB 1, § 49;    Laws 1993, LB 121, § 493.    


Annotations

77-123. Omitted property, defined.

Omitted property means, for the current tax year, (1) any taxable real property that was not assessed on March 19, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, any taxable real property that was not assessed on March 25, and (2) any taxable tangible personal property that was not assessed on May 1. Omitted property also means any taxable real or tangible personal property that was not assessed for any prior tax year. Omitted property does not include property exempt under subdivisions (1)(a) through (d) of section 77-202, listing errors of an item of property on the assessment roll of the county assessor, or clerical errors as defined in section 77-128.

Source:Laws 1997, LB 270, § 6;    Laws 1998, LB 1104, § 5;    Laws 1999, LB 194, § 6;    Laws 1999, LB 271, § 3;    Laws 2004, LB 973, § 5;    Laws 2011, LB384, § 2.    


77-124. Undervalued and overvalued property, defined.

Undervalued and overvalued property means any taxable real property that is assessed by the county assessor but has a taxable value lower or higher than other taxable property with which it is required to be equalized.

Source:Laws 1997, LB 270, § 7.    


77-125. Tax situs, defined.

Tax situs means the tax district wherein taxable real property is located or taxable tangible personal property is located for fifty percent or more of the calendar year. Taxable tangible personal property of a business shall be assessed at the location of the business unless the property has acquired tax situs elsewhere.

Source:Laws 1997, LB 270, § 8;    Laws 1999, LB 194, § 9.    


77-126. Assessment, defined.

Assessment means the act of listing the description of all real property and taxable tangible personal property, determining its taxability, determining its taxable value, and placing it on the assessment roll.

Source:Laws 1997, LB 270, § 9;    Laws 2003, LB 292, § 6.    


77-127. Tax district, defined.

Tax district means an area within a county in which all of the taxable property is subject to property taxes at the same consolidated property tax rate.

Source:Laws 1997, LB 270, § 10.    


77-128. Clerical error, defined.

Clerical error means transposition of numbers, mathematical error, computer malfunction causing programming and printing errors, data entry error, items of real property other than land identified on the wrong parcel, incorrect ownership, or certification of an incorrect valuation to political subdivisions.

Source:Laws 1999, LB 194, § 7.    


77-129. Assessment roll, defined.

Assessment roll means a complete and verified list of all real property and the taxable tangible personal property in a county and the associated assessments as defined in section 77-126. The assessment roll is described in section 77-1303.

Source:Laws 1999, LB 194, § 8;    Laws 2003, LB 292, § 7.    


77-130. Taxing official, defined.

Taxing official means any federal, state, or local government officer or employee who is charged with the duty of auditing, assessing, equalizing, levying, computing, and collecting taxes.

Source:Laws 2000, LB 968, § 25.    


77-131. Taxable value, defined.

Taxable value shall be as described in section 77-201 and shall have the same meaning as assessed value.

Source:Laws 2003, LB 292, § 8.    


77-132. Parcel, defined.

(1) Parcel means a contiguous tract of land determined by its boundaries, under the same ownership, and in the same tax district and section. Parcel also means an improvement on leased land.

(2) If all or several lots in the same block are owned by the same person and are contained in the same subdivision and the same tax district, they may be included in one parcel.

(3) If two or more vacant or unimproved lots in the same subdivision and the same tax district are owned by the same person and are held for sale or resale, such lots shall be included in one parcel if elected to be treated as one parcel by the owner. Such election shall be made annually by filing an application with the county assessor by December 31.

(4) For purposes of this section, subdivision means the common overall plan or approved preliminary plat.

Source:Laws 2005, LB 263, § 3;    Laws 2014, LB191, § 14.    


Annotations

77-201. Property taxable; valuation; classification.

(1) Except as provided in subsections (2) through (4) of this section, all real property in this state, not expressly exempt therefrom, shall be subject to taxation and shall be valued at its actual value.

(2) Agricultural land and horticultural land as defined in section 77-1359 shall constitute a separate and distinct class of property for purposes of property taxation, shall be subject to taxation, unless expressly exempt from taxation, and shall be valued at seventy-five percent of its actual value, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after January 1, 2022, such land shall be valued at fifty percent of its actual value.

(3) Agricultural land and horticultural land actively devoted to agricultural or horticultural purposes which has value for purposes other than agricultural or horticultural uses and which meets the qualifications for special valuation under section 77-1344 shall constitute a separate and distinct class of property for purposes of property taxation, shall be subject to taxation, and shall be valued for taxation at seventy-five percent of its special valuation as defined in section 77-1343, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after January 1, 2022, such land shall be valued at fifty percent of its special valuation as defined in section 77-1343.

(4) Historically significant real property which meets the qualifications for historic rehabilitation valuation under sections 77-1385 to 77-1394 shall be valued for taxation as provided in such sections.

(5) Tangible personal property, not including motor vehicles, trailers, and semitrailers registered for operation on the highways of this state, shall constitute a separate and distinct class of property for purposes of property taxation, shall be subject to taxation, unless expressly exempt from taxation, and shall be valued at its net book value. Tangible personal property transferred as a gift or devise or as part of a transaction which is not a purchase shall be subject to taxation based upon the date the property was acquired by the previous owner and at the previous owner's Nebraska adjusted basis. Tangible personal property acquired as replacement property for converted property shall be subject to taxation based upon the date the converted property was acquired and at the Nebraska adjusted basis of the converted property unless insurance proceeds are payable by reason of the conversion. For purposes of this subsection, (a) converted property means tangible personal property which is compulsorily or involuntarily converted as a result of its destruction in whole or in part, theft, seizure, requisition, or condemnation, or the threat or imminence thereof, and no gain or loss is recognized for federal or state income tax purposes by the holder of the property as a result of the conversion and (b) replacement property means tangible personal property acquired within two years after the close of the calendar year in which tangible personal property was converted and which is, except for date of construction or manufacture, substantially the same as the converted property.

Source:Laws 1903, c. 73, § 12, p. 390; R.S.1913, § 6300; Laws 1921, c. 133, art. II, § 1, p. 546; C.S.1922, § 5820; C.S.1929, § 77-201; Laws 1939, c. 102, § 1, p. 461; C.S.Supp.,1941, § 77-201; R.S.1943, § 77-201; Laws 1953, c. 265, § 1, p. 877; Laws 1955, c. 289, § 2, p. 918; Laws 1957, c. 320, § 2, p. 1138; Laws 1959, c. 353, § 1, p. 1244; Laws 1979, LB 187, § 191;    Laws 1985, LB 30, § 2;    Laws 1985, LB 271, § 2;    Laws 1986, LB 816, § 1;    Laws 1989, LB 361, § 5;    Laws 1991, LB 404, § 2;    Laws 1991, LB 320, § 2;    Laws 1992, LB 1063, § 52; Laws 1992, Second Spec. Sess., LB 1, § 50;    Laws 1997, LB 269, § 34;    Laws 1997, LB 270, § 11;    Laws 1997, LB 271, § 38;    Laws 2004, LB 973, § 6;    Laws 2005, LB 66, § 11;    Laws 2006, LB 808, § 24;    Laws 2006, LB 968, § 2;    Laws 2007, LB166, § 3;    Laws 2009, LB166, § 4;    Laws 2016, LB775, § 2;    Laws 2021, LB2, § 1.    


Annotations

77-201.01. Repealed. Laws 1967, c. 498, § 3.

77-202. Property taxable; exemptions enumerated.

(1) The following property shall be exempt from property taxes:

(a) Property of the state and its governmental subdivisions to the extent used or being developed for use by the state or governmental subdivision for a public purpose. For purposes of this subdivision:

(i) Property of the state and its governmental subdivisions means (A) property held in fee title by the state or a governmental subdivision or (B) property beneficially owned by the state or a governmental subdivision in that it is used for a public purpose and is being acquired under a lease-purchase agreement, financing lease, or other instrument which provides for transfer of legal title to the property to the state or a governmental subdivision upon payment of all amounts due thereunder. If the property to be beneficially owned by a governmental subdivision has a total acquisition cost that exceeds the threshold amount or will be used as the site of a public building with a total estimated construction cost that exceeds the threshold amount, then such property shall qualify for an exemption under this section only if the question of acquiring such property or constructing such public building has been submitted at a primary, general, or special election held within the governmental subdivision and has been approved by the voters of the governmental subdivision. For purposes of this subdivision, threshold amount means the greater of fifty thousand dollars or six-tenths of one percent of the total actual value of real and personal property of the governmental subdivision that will beneficially own the property as of the end of the governmental subdivision's prior fiscal year; and

(ii) Public purpose means use of the property (A) to provide public services with or without cost to the recipient, including the general operation of government, public education, public safety, transportation, public works, civil and criminal justice, public health and welfare, developments by a public housing authority, parks, culture, recreation, community development, and cemetery purposes, or (B) to carry out the duties and responsibilities conferred by law with or without consideration. Public purpose does not include leasing of property to a private party unless the lease of the property is at fair market value for a public purpose. Leases of property by a public housing authority to low-income individuals as a place of residence are for the authority's public purpose;

(b) Unleased property of the state or its governmental subdivisions which is not being used or developed for use for a public purpose but upon which a payment in lieu of taxes is paid for public safety, rescue, and emergency services and road or street construction or maintenance services to all governmental units providing such services to the property. Except as provided in Article VIII, section 11, of the Constitution of Nebraska, the payment in lieu of taxes shall be based on the proportionate share of the cost of providing public safety, rescue, or emergency services and road or street construction or maintenance services unless a general policy is adopted by the governing body of the governmental subdivision providing such services which provides for a different method of determining the amount of the payment in lieu of taxes. The governing body may adopt a general policy by ordinance or resolution for determining the amount of payment in lieu of taxes by majority vote after a hearing on the ordinance or resolution. Such ordinance or resolution shall nevertheless result in an equitable contribution for the cost of providing such services to the exempt property;

(c) Property owned by and used exclusively for agricultural and horticultural societies;

(d) Property owned by educational, religious, charitable, or cemetery organizations, or any organization for the exclusive benefit of any such educational, religious, charitable, or cemetery organization, and used exclusively for educational, religious, charitable, or cemetery purposes, when such property is not (i) owned or used for financial gain or profit to either the owner or user, (ii) used for the sale of alcoholic liquors for more than twenty hours per week, or (iii) owned or used by an organization which discriminates in membership or employment based on race, color, or national origin. For purposes of this subdivision, educational organization means (A) an institution operated exclusively for the purpose of offering regular courses with systematic instruction in academic, vocational, or technical subjects or assisting students through services relating to the origination, processing, or guarantying of federally reinsured student loans for higher education or (B) a museum or historical society operated exclusively for the benefit and education of the public. For purposes of this subdivision, charitable organization includes an organization operated exclusively for the purpose of the mental, social, or physical benefit of the public or an indefinite number of persons and a fraternal benefit society organized and licensed under sections 44-1072 to 44-10,109; and

(e) Household goods and personal effects not owned or used for financial gain or profit to either the owner or user.

(2) The increased value of land by reason of shade and ornamental trees planted along the highway shall not be taken into account in the valuation of land.

(3) Tangible personal property which is not depreciable tangible personal property as defined in section 77-119 shall be exempt from property tax.

(4) Motor vehicles, trailers, and semitrailers required to be registered for operation on the highways of this state shall be exempt from payment of property taxes.

(5) Business and agricultural inventory shall be exempt from the personal property tax. For purposes of this subsection, business inventory includes personal property owned for purposes of leasing or renting such property to others for financial gain only if the personal property is of a type which in the ordinary course of business is leased or rented thirty days or less and may be returned at the option of the lessee or renter at any time and the personal property is of a type which would be considered household goods or personal effects if owned by an individual. All other personal property owned for purposes of leasing or renting such property to others for financial gain shall not be considered business inventory.

(6) Any personal property exempt pursuant to subsection (2) of section 77-4105 or section 77-5209.02 shall be exempt from the personal property tax.

(7) Livestock shall be exempt from the personal property tax.

(8) Any personal property exempt pursuant to the Nebraska Advantage Act or the ImagiNE Nebraska Act shall be exempt from the personal property tax.

(9) Any depreciable tangible personal property used directly in the generation of electricity using wind as the fuel source shall be exempt from the property tax levied on depreciable tangible personal property. Any depreciable tangible personal property used directly in the generation of electricity using solar, biomass, or landfill gas as the fuel source shall be exempt from the property tax levied on depreciable tangible personal property if such depreciable tangible personal property was installed on or after January 1, 2016, and has a nameplate capacity of one hundred kilowatts or more. Depreciable tangible personal property used directly in the generation of electricity using wind, solar, biomass, or landfill gas as the fuel source includes, but is not limited to, wind turbines, rotors and blades, towers, solar panels, trackers, generating equipment, transmission components, substations, supporting structures or racks, inverters, and other system components such as wiring, control systems, switchgears, and generator step-up transformers.

(10) Any tangible personal property that is acquired by a person operating a data center located in this state, that is assembled, engineered, processed, fabricated, manufactured into, attached to, or incorporated into other tangible personal property, both in component form or that of an assembled product, for the purpose of subsequent use at a physical location outside this state by the person operating a data center shall be exempt from the personal property tax. Such exemption extends to keeping, retaining, or exercising any right or power over tangible personal property in this state for the purpose of subsequently transporting it outside this state for use thereafter outside this state. For purposes of this subsection, data center means computers, supporting equipment, and other organized assembly of hardware or software that are designed to centralize the storage, management, or dissemination of data and information, environmentally controlled structures or facilities or interrelated structures or facilities that provide the infrastructure for housing the equipment, such as raised flooring, electricity supply, communication and data lines, Internet access, cooling, security, and fire suppression, and any building housing the foregoing.

(11) For tax years prior to tax year 2020, each person who owns property required to be reported to the county assessor under section 77-1201 shall be allowed an exemption amount as provided in the Personal Property Tax Relief Act. For tax years prior to tax year 2020, each person who owns property required to be valued by the state as provided in section 77-601, 77-682, 77-801, or 77-1248 shall be allowed a compensating exemption factor as provided in the Personal Property Tax Relief Act.

Source:Laws 1903, c. 73, § 13, p. 390; R.S.1913, § 6301; Laws 1921, c. 133, art. II, § 2, p. 547; C.S.1922, § 5821; C.S.1929, § 77-202; R.S.1943, § 77-202; Laws 1955, c. 290, § 1, p. 921; Laws 1965, c. 468, § 1, p. 1514; Laws 1965, c. 469, § 1, p. 1516; Laws 1967, c. 494, § 1, p. 1685; Laws 1967, c. 495, § 1, p. 1686; Laws 1971, LB 945, § 2;    Laws 1975, LB 530, § 3;    Laws 1980, LB 882, § 1; Laws 1980, LB 913, § 1; Laws 1982, LB 383, § 5;    Laws 1984, LB 891, § 1;    Laws 1985, LB 268, § 1;    Laws 1986, LB 732, § 1;    Laws 1987, LB 775, § 13;    Laws 1988, LB 855, § 3;    Laws 1989, Spec. Sess., LB 7, § 2; Laws 1991, LB 829, § 7; Laws 1992, LB 1063, § 53; Laws 1992, Second Spec. Sess., LB 1, § 51;    Laws 1994, LB 961, § 7;    Laws 1997, LB 271, § 39;    Laws 1999, LB 271, § 4;    Laws 2002, LB 994, § 10;    Laws 2005, LB 312, § 4;    Laws 2008, LB1027, § 1;    Laws 2010, LB1048, § 11;    Laws 2011, LB360, § 2;    Laws 2012, LB902, § 1;    Laws 2012, LB1080, § 1;    Laws 2015, LB259, § 5;    Laws 2015, LB414, § 2;    Laws 2015, LB424, § 3;    Laws 2016, LB775, § 3;    Laws 2020, LB1107, § 121.    


Cross References

Annotations

77-202.01. Property taxable; tax exemptions; application; requirements; waiver of deadline; penalty; lien.

(1) Any organization or society seeking a tax exemption provided in subdivisions (1)(c) and (d) of section 77-202 for any real or tangible personal property, except real property used for cemetery purposes, shall apply for exemption to the county assessor on or before December 31 of the year preceding the year for which the exemption is sought on forms prescribed by the Tax Commissioner. Applications that lack an estimated valuation, or any other required information, shall result in the denial of the requested exemption. The county assessor shall examine the application and recommend either taxable or exempt for the real property or tangible personal property to the county board of equalization on or before March 1 following. Notice that a list of the applications from organizations seeking tax exemption, descriptions of the property, and recommendations of the county assessor are available in the county assessor's office shall be published in a newspaper of general circulation in the county at least ten days prior to consideration of any application by the county board of equalization.

(2) Any organization or society which fails to file an exemption application on or before December 31 may apply on or before June 30 to the county assessor. The organization or society shall also file in writing a request with the county board of equalization for a waiver so that the county assessor may consider the application for exemption. The county board of equalization shall grant the waiver upon a finding that good cause exists for the failure to make application on or before December 31. When the waiver is granted, the county assessor shall examine the application and recommend either taxable or exempt for the real property or tangible personal property to the county board of equalization and shall assess a penalty against the property of ten percent of the tax that would have been assessed had the waiver been denied or one hundred dollars, whichever is less, for each calendar month or fraction thereof for which the filing of the exemption application missed the December 31 deadline. The penalty shall be collected and distributed in the same manner as a tax on the property and interest shall be assessed at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date the tax would have been delinquent until paid. The penalty shall also become a lien in the same manner as a tax pursuant to section 77-203.

Source:Laws 1963, c. 441, § 1, p. 1460; Laws 1969, c. 639, § 1, p. 2552; Laws 1980, LB 688, § 1; Laws 1984, LB 835, § 2;    Laws 1986, LB 817, § 1;    Laws 1993, LB 346, § 7;    Laws 1993, LB 345, § 4;    Laws 1995, LB 490, § 28;    Laws 1996, LB 1122, § 1;    Laws 1997, LB 270, § 12;    Laws 1997, LB 271, § 40;    Laws 1999, LB 194, § 10;    Laws 1999, LB 271, § 5;    Laws 2000, LB 968, § 26;    Laws 2007, LB334, § 15;    Laws 2021, LB63, § 1;    Laws 2021, LB521, § 1.    


Annotations

77-202.02. Property taxable; exempt status; application; hearing; procedure.

The county board of equalization, between February 1 and June 1 after a hearing on ten days' notice to the applicant and the publication of notice as provided in section 77-202.01, and after considering the recommendation of the county assessor and any other information it may obtain from public testimony, shall grant or withhold tax exemption for the real property or tangible personal property on the basis of law and of regulations promulgated by the Tax Commissioner.

For applications accepted after approval of a waiver pursuant to section 77-202.01, the county board of equalization shall hear and certify its decision on or before August 15.

Source:Laws 1963, c. 441, § 2, p. 1460; Laws 1969, c. 640, § 1, p. 2553; Laws 1980, LB 688, § 2; Laws 1995, LB 490, § 29;    Laws 1997, LB 270, § 13;    Laws 1997, LB 271, § 41;    Laws 2000, LB 968, § 27;    Laws 2003, LB 292, § 9;    Laws 2005, LB 263, § 4;    Laws 2007, LB334, § 16.    


Annotations

77-202.03. Property taxable; exempt status; period of exemption; change of status; late filing authorized; when; penalty; lien; new applications; reviewed; hearing; procedure; list.

(1) A properly granted exemption of real or tangible personal property, except real property used for cemetery purposes, provided for in subdivisions (1)(c) and (d) of section 77-202 shall continue for a period of four years if the statement of reaffirmation of exemption required by subsection (2) of this section is filed when due. The four-year period shall begin with years evenly divisible by four.

(2) In each intervening year occurring between application years, the organization or society which filed the granted exemption application for the real or tangible personal property, except real property used for cemetery purposes, shall file a statement of reaffirmation of exemption with the county assessor on or before December 31 of the year preceding the year for which the exemption is sought, on forms prescribed by the Tax Commissioner, certifying that the ownership and use of the exempted property has not changed during the year. Any organization or society which misses the December 31 deadline for filing the statement of reaffirmation of exemption may file the statement of reaffirmation of exemption by June 30. Such filing shall maintain the tax-exempt status of the property without further action by the county and regardless of any previous action by the county board of equalization to deny the exemption due to late filing of the statement of reaffirmation of exemption. Upon any such late filing, the county assessor shall assess a penalty against the property of ten percent of the tax that would have been assessed had the statement of reaffirmation of exemption not been filed or one hundred dollars, whichever is less, for each calendar month or fraction thereof for which the filing of the statement of reaffirmation of exemption is late. The penalty shall be collected and distributed in the same manner as a tax on the property and interest shall be assessed at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date the tax would have been delinquent until paid. The penalty shall also become a lien in the same manner as a tax pursuant to section 77-203.

(3)(a) If any organization or society seeks a tax exemption for any real or tangible personal property acquired on or after January 1 of any year or converted to exempt use on or after January 1 of any year, the organization or society shall make application for exemption on or before July 1 of that year as provided in subsection (1) of section 77-202.01. The procedure for reviewing the application shall be as in sections 77-202.01 to 77-202.05, except that the exempt use shall be determined as of the date of application and the review by the county board of equalization shall be completed by August 15.

(b) If an organization as described in subdivision (1)(c) or (d) of section 77-202 purchases, between July 1 and the levy date, property that has been granted tax exemption and the property continues to be qualified for a property tax exemption, the purchaser shall on or before November 15 make application for exemption as provided in section 77-202.01. The procedure for reviewing the application shall be as in sections 77-202.01 to 77-202.05, and the review by the county board of equalization shall be completed by December 15.

(4) In any year, the county assessor or the county board of equalization may cause a review of any exemption to determine whether the exemption is proper. Such a review may be taken even if the ownership or use of the property has not changed from the date of the allowance of the exemption. If it is determined that a change in an exemption is warranted, the procedure for hearing set out in section 77-202.02 shall be followed, except that the published notice shall state that the list provided in the county assessor's office only includes those properties being reviewed. If an exemption is denied, the county board of equalization shall place the property on the tax rolls retroactive to January 1 of that year if on the date of the decision of the county board of equalization the property no longer qualifies for an exemption.

The county board of equalization shall give notice of the assessed value of the real property in the same manner as outlined in section 77-1507, and the procedures for filing a protest shall be the same as those in section 77-1502.

When personal property which was exempt becomes taxable because of lost exemption status, the owner or his or her agent has thirty days after the date of denial to file a personal property return with the county assessor. Upon the expiration of the thirty days for filing a personal property return pursuant to this subsection, the county assessor shall proceed to list and value the personal property and apply the penalty pursuant to section 77-1233.04.

(5) During the month of September of each year, the county board of equalization shall cause to be published in a paper of general circulation in the county a list of all real estate in the county exempt from taxation for that year pursuant to subdivisions (1)(c) and (d) of section 77-202. Such list shall be grouped into categories as provided by the Property Tax Administrator. An electronic copy of the list of real property exemptions and a copy of the proof of publication shall be forwarded to the Property Tax Administrator on or before November 1 of each year.

Source:Laws 1963, c. 441, § 3, p. 1460; Laws 1965, c. 470, § 1, p. 1517; Laws 1969, c. 641, § 1, p. 2554; Laws 1973, LB 114, § 1;    Laws 1973, LB 530, § 1;    Laws 1976, LB 786, § 1; Laws 1979, LB 17, § 8;    Laws 1980, LB 688, § 3; Laws 1981, LB 179, § 3;    Laws 1983, LB 494, § 1;    Laws 1986, LB 817, § 2;    Laws 1989, LB 133, § 1;    Laws 1990, LB 919, § 1;    Laws 1993, LB 734, § 42;    Laws 1995, LB 490, § 30;    Laws 1996, LB 1122, § 2;    Laws 1997, LB 270, § 14;    Laws 1997, LB 271, § 42;    Laws 1998, LB 1104, § 6;    Laws 1999, LB 194, § 11;    Laws 1999, LB 271, § 6;    Laws 2000, LB 968, § 28;    Laws 2004, LB 973, § 7;    Laws 2007, LB166, § 4;    Laws 2007, LB334, § 17;    Laws 2010, LB708, § 1;    Laws 2019, LB512, § 10.    


Annotations

77-202.04. Property taxable; exempt status; delivery of copy of final decision; appeal; failure to give notice; effect.

(1) Notice of a county board of equalization's decision granting or denying an application for exemption from taxation for real or tangible personal property shall be mailed or delivered to the applicant and the county assessor by the county clerk within seven days after the date of the board's decision. Persons, corporations, or organizations may appeal denial of an application for exemption by a county board of equalization. Only the county assessor, the Tax Commissioner, or the Property Tax Administrator may appeal the granting of such an exemption by a county board of equalization. Appeals pursuant to this section shall be made to the Tax Equalization and Review Commission in accordance with section 77-5013 within thirty days after the decision of the county board of equalization. The Tax Commissioner or Property Tax Administrator may in his or her discretion intervene in any such appeal pursuant to this section within thirty days after notice by the Tax Equalization and Review Commission that an appeal has been filed pursuant to this section. If the county assessor, Tax Commissioner, or Property Tax Administrator appeals a county board of equalization's final decision granting an exemption from property taxation, the person, corporation, or organization granted such exemption by the county board of equalization shall be made a party to the appeal and shall be issued a notice of the appeal by the Tax Equalization and Review Commission within thirty days after the appeal is filed.

(2) A copy of the final decision by a county board of equalization shall be delivered electronically to the Tax Commissioner and the Property Tax Administrator within seven days after the date of the board's decision. The Tax Commissioner or the Property Tax Administrator shall have thirty days after the final decision to appeal the decision.

(3) Any owner may petition the Tax Equalization and Review Commission in accordance with section 77-5013, on or before December 31 of each year, to determine the taxable status of real property for that year if a failure to give notice as prescribed by this section prevented timely filing of a protest or appeal provided for in sections 77-202 to 77-202.25.

Source:Laws 1963, c. 441, § 4, p. 1461; Laws 1969, c. 642, § 1, p. 2556; Laws 1995, LB 490, § 31;    Laws 1997, LB 271, § 43;    Laws 2000, LB 968, § 29;    Laws 2004, LB 973, § 8;    Laws 2005, LB 15, § 3;    Laws 2007, LB334, § 18;    Laws 2010, LB877, § 1;    Laws 2011, LB384, § 3.    


Annotations

77-202.05. Property taxable; exempt status; Tax Commissioner; forms; prescribe; contents.

The Tax Commissioner shall prescribe forms for distribution to the county assessors on which persons, corporations, and organizations may apply for tax-exempt status for real or tangible personal property. The forms shall include the following information:

(1) Name of owner or owners of the property, and if a corporation, the names of the officers and directors, and place of incorporation;

(2) Legal description of real property and a general description as to class and use of all tangible personal property;

(3) The precise statutory provision under which exempt status for such property is claimed; and

(4) An estimated valuation for the property.

Source:Laws 1963, c. 441, § 5, p. 1461; Laws 1969, c. 643, § 1, p. 2557; Laws 1995, LB 490, § 32;    Laws 1997, LB 271, § 44;    Laws 2000, LB 968, § 30;    Laws 2007, LB334, § 19;    Laws 2021, LB521, § 2.    


77-202.06. Repealed. Laws 2004, LB 973, § 72.

77-202.07. Repealed. Laws 2004, LB 973, § 72.

77-202.08. Repealed. Laws 1997, LB 271, § 57.

77-202.09. Cemetery organization; exemption; application; procedure; late filing.

Any cemetery organization seeking a tax exemption for any real property used to maintain areas set apart for the interment of human dead shall apply for exemption to the county assessor on forms prescribed by the Tax Commissioner. An application for a tax exemption shall be made on or before December 31 of the year preceding the year for which the exemption is sought. The county assessor shall examine the application and recommend either taxable or exempt to the county board of equalization on or before March 1 following. If a cemetery organization seeks a tax exemption for any real or tangible personal property acquired for or converted to exempt use on or after January 1, the organization shall make application for exemption on or before July 1. The procedure for reviewing the application shall be the same as for other exemptions pursuant to subdivisions (1)(c) and (d) of section 77-202. Any cemetery organization which fails to file on or before December 31 for exemption may apply on or before June 30 pursuant to subsection (2) of section 77-202.01, and the penalty and procedures specified in section 77-202.01 shall apply.

Source:Laws 1997, LB 270, § 16;    Laws 1999, LB 271, § 7;    Laws 2007, LB334, § 20;    Laws 2010, LB708, § 2;    Laws 2021, LB63, § 2.    


77-202.10. Cemetery organization; period of exemption; annual review.

Any real property exemption granted to a cemetery organization shall remain in effect without reapplication unless disqualified by change of ownership or use. On or before August 1 the county assessor shall annually make a review of the ownership and use of all cemetery real property and report such review to the county board of equalization.

Source:Laws 1997, LB 270, § 17.    


77-202.11. Leased public property; taxation status; lessee; lien; procedure.

(1) Leased public property, other than property leased for a public purpose as set forth in subdivision (1)(a) of section 77-202, shall be taxed or exempted from taxation as if the property was owned by the leaseholder. The value of the property shall be determined as provided under section 77-201.

(2) On or before January 31 each year, the state and each governmental subdivision shall provide to the appropriate county assessor each new lease or preexisting lease which has been materially changed which went into effect during the previous year and a listing of previously reported leases that are still in effect.

(3) Taxes on property assessed to the lessee shall be due and payable in the same manner as other property taxes and shall be a first lien upon the personal property of the person to whom assessed until paid and shall be collected in the same manner as personal property taxes as provided in sections 77-1711 to 77-1724. The state or its governmental subdivisions shall not be obligated to pay the taxes upon failure of the lessee to pay. Notice of delinquent taxes shall be timely sent to the lessee and to the state or the governmental subdivision. No lien or attachment shall be attached to the property of the state or the governmental subdivisions for failure of the lessee to pay the taxes due.

(4) The state or any governmental subdivision may, if it chooses to do so in its discretion, provide the appropriate county assessor a description of the property rather than a copy of the lease; request that the assessor notify it of the amount of tax which would be assessed to the leaseholder; voluntarily pay that tax; and collect that tax from the leaseholder as part of the rent.

(5) Except as provided in Article VIII, section 11, of the Constitution of Nebraska, no in lieu of tax payments provided for in any other section of law shall be made with respect to any leased public property to which this section applies.

Source:Laws 1999, LB 271, § 8;    Laws 2000, LB 968, § 31;    Laws 2003, LB 292, § 10.    


Annotations

77-202.12. Public property; taxation status; county assessor; duties; appeal.

(1) On or before March 1, the county assessor shall send notice to the state or to any governmental subdivision if it has property not being used for a public purpose upon which a payment in lieu of taxes is not made. Such notice shall inform the state or governmental subdivision that the property will be subject to taxation for property tax purposes. The written notice shall contain the legal description of the property and be given by first-class mail addressed to the state's or governmental subdivision's last-known address. If the property is leased by the state or the governmental subdivision to another entity and the lessor does not intend to pay the taxes for the lessee as allowed under subsection (4) of section 77-202.11, the lessor shall immediately forward the notice to the lessee.

(2) The state, governmental subdivision, or lessee may protest the determination of the county assessor that the property is not used for a public purpose to the county board of equalization on or before April 1. The county board of equalization shall issue its decision on the protest on or before May 1.

(3) The decision of the county board of equalization may be appealed to the Tax Equalization and Review Commission on or before June 1. The Tax Commissioner in his or her discretion may intervene in an appeal pursuant to this section within thirty days after notice by the Tax Equalization and Review Commission that an appeal has been filed pursuant to this section.

Source:Laws 1999, LB 271, § 9;    Laws 2000, LB 968, § 32;    Laws 2005, LB 263, § 5;    Laws 2007, LB334, § 21;    Laws 2011, LB384, § 4.    


Annotations

77-202.13. Repealed. Laws 2008, LB 965, § 27.

77-202.14. Repealed. Laws 1979, LB 65, § 33.

77-202.15. Repealed. Laws 1979, LB 65, § 33.

77-202.16. Repealed. Laws 1979, LB 65, § 33.

77-202.17. Repealed. Laws 1979, LB 65, § 33.

77-202.18. Repealed. Laws 1979, LB 65, § 33.

77-202.19. Repealed. Laws 1979, LB 65, § 33.

77-202.20. Repealed. Laws 1979, LB 65, § 33.

77-202.21. Repealed. Laws 1979, LB 65, § 33.

77-202.22. Repealed. Laws 1979, LB 65, § 33.

77-202.23. Disabled or blind honorably discharged veteran; terms, defined.

As used in sections 77-202.23 and 77-202.24, unless the context otherwise requires:

(1) Disabled person shall mean a veteran who has lost the use of or has undergone amputation of two or more extremities or has undergone amputation of one or more extremities and has lost the use of one or more extremities; and

(2) Blind shall mean a veteran whose sight is so defective as to seriously limit his ability to engage in the ordinary vocations and activities of life.

Source:Laws 1971, LB 990, § 1;    Laws 1979, LB 273, § 1.    


77-202.24. Disabled or blind veteran; mobile home exempt.

A mobile home shall be exempt from taxation if it is owned and occupied by a disabled or blind veteran of the United States Armed Forces whose disability or blindness is recognized by the United States Department of Veterans Affairs as service connected and who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions).

Source:Laws 1971, LB 990, § 2;    Laws 1979, LB 273, § 2;    Laws 1991, LB 2, § 16;    Laws 1992, LB 719A, § 162;    Laws 1997, LB 271, § 46;    Laws 2005, LB 54, § 16.    


77-202.25. Disabled or blind honorably discharged veteran; property exemption; application; procedure; appeal.

Application for the exemption provided in section 77-202.24 shall be made to the county assessor on or before April 1 of every year. The county assessor shall approve or disapprove such application and shall notify the taxpayer of his or her decision within twenty days of the filing of the application. The taxpayer may appeal the decision of the county assessor to the county board of equalization within twenty days after notice of the decision is mailed by the county assessor.

The taxpayer may appeal any decision of the county board of equalization under this section pursuant to section 77-202.04.

Source:Laws 1984, LB 835, § 3;    Laws 1995, LB 490, § 36;    Laws 1997, LB 271, § 47.    


77-202.26. Repealed. Laws 1980, LB 882, § 9.

77-202.27. Repealed. Laws 1980, LB 882, § 9.

77-202.28. Repealed. Laws 1980, LB 882, § 9.

77-202.29. Repealed. Laws 1980, LB 882, § 9.

77-202.30. Repealed. Laws 1980, LB 882, § 9.

77-202.31. Repealed. Laws 1980, LB 882, § 9.

77-202.32. Repealed. Laws 1980, LB 882, § 9.

77-202.33. Repealed. Laws 1986, LB 817, § 15.

77-202.34. Repealed. Laws 1979, LB 65, § 33.

77-202.35. Repealed. Laws 1979, LB 65, § 33.

77-202.36. Repealed. Laws 1980, LB 882, § 9.

77-202.37. Repealed. Laws 1980, LB 882, § 9.

77-202.38. Repealed. Laws 1980, LB 882, § 9.

77-202.39. Repealed. Laws 1980, LB 882, § 9.

77-202.40. Repealed. Laws 1980, LB 882, § 9.

77-202.41. Repealed. Laws 1980, LB 882, § 9.

77-202.42. Repealed. Laws 1980, LB 882, § 9.

77-202.43. Repealed. Laws 1980, LB 882, § 9.

77-202.44. Repealed. Laws 1979, LB 65, § 33.

77-202.45. Repealed. Laws 1979, LB 65, § 33.

77-202.46. Repealed. Laws 1992, LB 1063, § 213; Laws 1992, Second Spec. Sess., LB 1, § 181.

77-202.47. Repealed. Laws 1992, LB 1063, § 213; Laws 1992, Second Spec. Sess., LB 1, § 181.

77-203. Property taxes; when due; first lien.

All property taxes levied for any county, city, village, or other political subdivision therein shall be due and payable on December 31 next following the date of levy except as provided in section 77-1214. Commencing on that date taxes on real property shall be a first lien on the property taxed until paid or extinguished as provided by law. Taxes on personal property shall be a first lien upon the personal property of the person to whom assessed until paid.

Source:Laws 1903, c. 73, § 14, p. 390; R.S.1913, § 6302; Laws 1919, c. 163, § 1, p. 367; Laws 1921, c. 133, art. II, § 3, p. 547; C.S.1922, § 5822; C.S.1929, § 77-203; Laws 1933, c. 134, § 1, p. 513; Laws 1935, c. 151, § 1, p. 557; Laws 1937, c. 167, § 2, p. 636; Laws 1939, c. 98, § 2, p. 421; Laws 1941, c. 157, § 2, p. 607; C.S.Supp.,1941, § 77-1959; R.S.1943, § 77-203; Laws 1959, c. 354, § 4, p. 1249; Laws 1969, c. 645, § 1, p. 2559; Laws 1971, LB 945, § 3;    Laws 1997, LB 269, § 35;    Laws 1998, LB 1104, § 7.    


Annotations

77-204. Real estate taxes; when delinquent.

One-half of the taxes due under section 77-203 shall become delinquent on May 1 and the second half on September 1 next following the date the taxes become due, except that in counties having a population of more than one hundred thousand, the first half shall become delinquent April 1 and the second half August 1 next following the date the taxes become due.

Source:Laws 1903, c. 73, § 150, p. 442; R.S.1913, § 6479; C.S.1922, § 6002; Laws 1925, c. 43, § 10, p. 172; C.S.1929, § 77-1907; Laws 1933, c. 134, § 1, p. 513; Laws 1935, c. 151, § 1, p. 557; Laws 1937, c. 167, § 2, p. 636; Laws 1939, c. 98, § 2, p. 421; Laws 1941, c. 157, § 2, p. 607; C.S.Supp.,1941, § 77-1959; R.S.1943, § 77-204; Laws 1961, c. 373, § 1, p. 1148; Laws 1965, c. 471, § 1, p. 1518; Laws 1967, c. 497, § 1, p. 1689; Laws 1987, LB 508, § 4.    


77-205. Repealed. Laws 1997, LB 269, § 80.

77-206. Repealed. Laws 1997, LB 269, § 80.

77-207. Delinquent taxes; interest.

All delinquent taxes shall draw interest at a rate equal to the maximum rate of interest allowed per annum under section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date they become delinquent, and the interest shall be collected the same as the tax upon which the interest accrues.

Source:Laws 1903, c. 73, § 150, p. 442; R.S.1913, § 6479; C.S.1922, § 6002; Laws 1925, c. 43, § 10, p. 172; C.S.1929, § 77-1907; Laws 1933, c. 134, § 1, p. 513; Laws 1935, c. 151, § 1, p. 557; Laws 1937, c. 167, § 2, p. 636; Laws 1939, c. 98, § 2, p. 421; Laws 1941, c. 157, § 2, p. 607; C.S.Supp.,1941, § 77-1959; R.S.1943, § 77-207; Laws 1969, c. 646, § 1, p. 2563; Laws 1979, LB 84, § 1;    Laws 1980, LB 933, § 29; Laws 1981, LB 167, § 38.    


Annotations

77-208. General taxes; lien on real estate; priority.

The first lien upon real estate under section 77-203 shall take priority over all other encumbrances and liens thereon.

Source:Laws 1903, c. 73, § 17, p. 391; R.S.1913, § 6305; Laws 1921, c. 133, art. II, § 6, p. 547; C.S.1922, § 5825; C.S.1929, § 77-206; R.S.1943, § 77-208.


Annotations

77-209. Special assessments; lien on real estate; priority.

All special assessments, regularly assessed and levied as provided by law, shall be a lien on the real estate on which assessed, and shall take priority over all other encumbrances and liens thereon except the first lien of general taxes under section 77-203.

Source:Laws 1903, c. 73, § 18, p. 391; R.S.1913, § 6306; Laws 1921, c. 133, art. II, § 7, p. 548; C.S.1922, § 5826; C.S.1929, § 77-207; R.S.1943, § 77-209.


Annotations

77-210. Repealed. Laws 2000, LB 968, § 91.

77-211. Hospital which provides office building or office space; rent included in lieu of taxes; payment in lieu of taxes to county treasurer; allocation.

Any political subdivision, tax-exempt corporation, or proprietorship acting with respect to any hospital and which provides office buildings or office space to tenants who shall be engaged in private enterprise shall charge such tenants a sufficient amount of rent so that a portion of the rent payments shall be in lieu of taxes. Such payments in lieu of taxes shall be paid to the county treasurer to be allocated to the taxing units within which the property is located so that each shall receive, as in lieu of tax payments, the same amount that it would have received from such leased property if it were not exempt from taxation.

Source:Laws 1973, LB 294, § 1.    


77-212. Hospitals providing for supportive medical services to patients; exempt from in lieu of tax payment.

Space provided for supportive medical services to patients in hospitals shall be exempt from section 77-211.

Source:Laws 1973, LB 294, § 2.    


77-301. Transferred to section 77-363.

77-301.01. Repealed. Laws 1972, LB 1044, § 1.

77-301.02. Repealed. Laws 1971, LB 33, § 1.

77-302. Transferred to section 77-364.

77-302.01. Repealed. Laws 1980, LB 834, § 66.

77-303. Repealed. Laws 1980, LB 834, § 66.

77-303.01. Transferred to section 77-378.

77-303.02. Transferred to section 77-367.

77-303.03. Transferred to section 77-368.

77-304. Transferred to section 77-370.

77-305. Transferred to section 77-371.

77-306. Transferred to section 77-387.

77-307. Transferred to section 77-388.

77-308. Transferred to section 77-389.

77-309. Transferred to section 77-390.

77-310. Transferred to section 77-391.

77-311. Transferred to section 77-392.

77-312. Transferred to section 77-393.

77-313. Transferred to section 77-394.

77-314. Transferred to section 77-395.

77-315. Transferred to section 77-396.

77-316. Transferred to section 77-397.

77-317. Transferred to section 77-398.

77-318. Transferred to section 77-399.

77-318.01. Repealed. Laws 1980, LB 834, § 66.

77-319. Transferred to section 77-3,100.

77-320. Repealed. Laws 1980, LB 834, § 66.

77-321. Repealed. Laws 1980, LB 834, § 66.

77-322. Repealed. Laws 1980, LB 834, § 66.

77-323. Transferred to section 77-372.

77-324. Transferred to section 77-373.

77-325. Repealed. Laws 1980, LB 834, § 66.

77-326. Transferred to section 77-365.

77-327. Transferred to section 77-377.

77-328. Transferred to section 77-375.

77-329. Transferred to section 77-376.

77-330. Repealed. Laws 1980, LB 834, § 66.

77-331. Repealed. Laws 1980, LB 834, § 66.

77-332. Transferred to section 77-374.

77-333. Repealed. Laws 1980, LB 834, § 66.

77-333.01. Transferred to section 77-386.

77-333.02. Repealed. Laws 1980, LB 834, § 66.

77-334. Repealed. Laws 1969, c. 649, § 1.

77-335. Repealed. Laws 1980, LB 834, § 66.

77-336. Repealed. Laws 1980, LB 834, § 66.

77-337. Repealed. Laws 1980, LB 834, § 66.

77-338. Repealed. Laws 1980, LB 834, § 66.

77-339. Repealed. Laws 1980, LB 834, § 66.

77-340. Transferred to section 77-360.

77-341. Transferred to section 77-362.

77-342. Transferred to section 77-369.

77-343. Repealed. Laws 1980, LB 834, § 66.

77-344. Transferred to section 77-3,101.

77-345. Transferred to section 77-3,102.

77-346. Transferred to section 77-3,103.

77-347. Repealed. Laws 1980, LB 834, § 66.

77-348. Transferred to section 77-3,104.

77-349. Transferred to section 77-3,105.

77-350. Transferred to section 77-3,106.

77-351. Transferred to section 77-3,107.

77-352. Transferred to section 77-3,108.

77-353. Transferred to section 77-379.

77-354. Transferred to section 77-380.

77-355. Transferred to section 77-381.

77-356. Transferred to section 77-382.

77-357. Transferred to section 77-383.

77-358. Transferred to section 77-384.

77-359. Transferred to section 77-385.

77-360. Department of Revenue; created; Tax Commissioner; chief executive officer.

There is hereby created and established a department of state government to be known as the Department of Revenue, of which the chief executive officer shall be the Tax Commissioner.

Source:Laws 1969, c. 630, § 1, p. 2532; R.S.1943, (1976), § 77-340; Laws 1980, LB 834, § 1.


77-361. Department of Revenue; functions and goals.

The functions and goals of the Department of Revenue shall be to: (1) Execute faithfully the revenue and property tax laws of the State of Nebraska; (2) provide for efficient, updated, and economical methods and systems of revenue accounting, reporting, enforcement, and related activities; and (3) continually seek to improve its system of administration to provide greater efficiency and convenience to this state's taxpayers.

Source:Laws 1980, LB 834, § 2; Laws 2007, LB334, § 23.    


77-362. Tax Commissioner; powers, duties, functions.

The Tax Commissioner, through the Department of Revenue, shall exercise those powers, duties, and functions vested in and administered by the Tax Commissioner.

Source:Laws 1969, c. 630, § 2, p. 2532; R.S.1943, (1976), § 77-341; Laws 1980, LB 834, § 3.


77-362.01. Tax amnesty; authorized; when.

If a federal tax amnesty law is enacted, the Tax Commissioner shall have the authority to duplicate the federal amnesty program in implementing a Nebraska tax amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to authorization by any law of the State of Nebraska and collected by the Department of Revenue. The Tax Commissioner shall have the authority to waive any and all penalties and any and all interest on all delinquent taxes due and owing from any taxpayer.

Source:Laws 1986, LB 1027, § 213.    


77-362.02. Department of Motor Vehicles; provide information to Department of Revenue.

In order to assist the Department of Revenue in carrying out its duties, the Department of Motor Vehicles shall provide information about individuals holding an operator's or driver's license or a state identification card under the Motor Vehicle Operator's License Act to the Department of Revenue in a manner agreed to by the Department of Revenue and the Department of Motor Vehicles. The information shall include:

(1) The individual's name;

(2) The individual's address of record;

(3) The individual's social security number, if available and permissible under law, and the individual's date of birth;

(4) The type of license, permit, or card held;

(5) The issuance date of the license, permit, or card;

(6) The expiration date of the license, permit, or card; and

(7) The status of the license, permit, or card.

The Department of Revenue may enter into agreements with the Director of Motor Vehicles to carry out this section.

Source:Laws 2010, LB879, § 5.    


Cross References

77-363. Tax Commissioner; appointment; salary.

The Governor shall nominate, and, with the advice and consent of the Legislature, shall appoint a Tax Commissioner and shall fix his or her salary.

Source:Laws 1921, c. 133, art. III, § 1, p. 548; C.S.1922, § 5827; C.S.1929, § 77-301; R.S.1943, § 77-301; Laws 1951, c. 258, § 1, p. 883; Laws 1957, c. 367, § 6, p. 1291; Laws 1963, c. 442, § 1, p. 1462; Laws 1967, c. 612, § 1, p. 2059; R.S.1943, (1976), § 77-301; Laws 1980, LB 834, § 4.


Annotations

77-364. Tax Commissioner; vacancy; removal by Governor.

In case of vacancy in the office of Tax Commissioner by death, resignation, or otherwise, the Governor shall make a temporary appointment until the next session of the Legislature, when the vacancy for the unexpired term shall be filled in the manner provided in section 77-363. The Tax Commissioner may be removed by the Governor, following a public hearing, if requested by the Tax Commissioner.

Source:Laws 1921, c. 133, art. III, § 2, p. 548; C.S.1922, § 5828; C.S.1929, § 77-302; R.S.1943, § 77-302; Laws 1951, c. 258, § 2, p. 883; Laws 1965, c. 459, § 16, p. 1460; R.S.1943, (1976), § 77-302; Laws 1980, LB 834, § 5.


77-365. Revenue administration; Tax Commissioner; creation of divisions and bureaus; relationships with taxpayers.

The Tax Commissioner shall establish, consistent with the laws of the State of Nebraska, such divisions or bureaus or other subdivisions within the office of the Tax Commissioner as he or she may find necessary or desirable to maintain adequate and effective relationships with taxpayers and to improve the administration of the tax laws of this state.

Source:Laws 1965, c. 459, § 7, p. 1457; R.S.1943, (1976), § 77-326; Laws 1980, LB 834, § 6.


77-365.01. Repealed. Laws 1999, LB 36, § 41.

77-366. Tax Commissioner; officers and employees; deputies; bond or insurance; powers.

(1) The Tax Commissioner shall appoint or employ deputies, investigators, inspectors, agents, security personnel, and other persons as he or she deems necessary to administer and effectively enforce all provisions of the revenue and property tax laws of this state. The appointed personnel shall hold office at the pleasure of the Tax Commissioner. Any appointed or employed personnel shall perform the duties assigned by the Tax Commissioner.

(2) All personnel appointed or employed by the Tax Commissioner shall be bonded or insured as required by section 11-201. As specified by the Tax Commissioner, certain personnel shall be vested with the authority and power of a law enforcement officer to carry out the laws of this state administered by the Tax Commissioner or the Department of Revenue and to enforce sections 28-1101 to 28-1117 relating to possession of a gambling device pursuant to the limitations in section 9-1,101. Such personnel shall be empowered to arrest with or without a warrant, file and serve any lien, seize property, serve and return a summons, warrant, or subpoena issued by the Tax Commissioner, collect taxes, and bring an offender before any court with jurisdiction in this state, except that such personnel shall not be authorized to carry weapons or enforce any laws other than laws administered by the Tax Commissioner or the Department of Revenue and sections 28-1101 to 28-1117 relating to possession of a gambling device pursuant to the limitations in section 9-1,101.

(3) Subsection (2) of this section shall not be construed to restrict any other law enforcement officer of this state from enforcing any state law, revenue or otherwise.

Source:Laws 1980, LB 834, § 7; Laws 1990, LB 821, § 42;    Laws 1993, LB 345, § 5;    Laws 1995, LB 490, § 38;    Laws 1999, LB 36, § 6;    Laws 2004, LB 884, § 36;    Laws 2007, LB334, § 24;    Laws 2007, LB638, § 19.    


77-367. Products and services to identify nonfilers of returns, underreporters, nonpayers of taxes, or improper or fraudulent payments; contract authorized; duties; use of proceeds; report.

(1) The Department of Revenue may contract to procure products and services to develop, deploy, or administer systems or programs which identify nonfilers of returns, underreporters, or nonpayers of taxes administered by the department or improper or fraudulent payments made through programs administered by the department. The department shall enter into at least one such contract by December 31, 2014, and such contract shall be for the purpose of identifying nonfilers of returns with a tax liability in any amount or underreporters or nonpayers of taxes with an outstanding tax liability of at least five thousand dollars. Fees for services, reimbursements, costs incurred by the department, or other remuneration may be funded from the amount of tax, penalty, interest, or other recovery actually collected and shall be paid only after the amount is collected. The Legislature intends to appropriate an amount from the tax, penalty, interest, and other recovery actually collected, not to exceed the amount collected, which is sufficient to pay for services, reimbursements, costs incurred by the department, or other remuneration pursuant to this section. Vendors entering into a contract with the department pursuant to this section are subject to the requirements and penalties of the confidentiality laws of this state regarding tax information.

(2) Ten percent of all proceeds received during each calendar year due to the contracts entered into pursuant to this section shall be deposited in the Department of Revenue Enforcement Fund for purposes of identifying nonfilers, underreporters, nonpayers, and improper or fraudulent payments.

(3) The Tax Commissioner shall submit electronically an annual report to the Revenue Committee of the Legislature and Appropriations Committee of the Legislature on the amount of dollars generated during the previous fiscal year pursuant to this section.

Source:Laws 2011, LB642, § 1;    Laws 2012, LB782, § 135;    Laws 2014, LB851, § 7.    


77-368. Repealed. Laws 1997, LB 270, § 110.

77-369. Tax Commissioner; rules and regulations; adopt; publish.

The Tax Commissioner shall make, adopt, and publish such rules and regulations as he or she may deem necessary and desirable to carry out the powers and duties imposed upon him or her and the Department of Revenue.

Source:Laws 1969, c. 630, § 3, p. 2532; R.S.1943, (1976), § 77-342; Laws 1980, LB 834, § 10; Laws 1995, LB 490, § 40;    Laws 1999, LB 36, § 7.    


77-370. Department of Revenue; uniform tax books, records, and forms; approval.

The form of all schedules, books of instruction, records, and all other forms which may be necessary or expedient for the proper administration of the revenue and property tax laws of the state shall be approved by the Department of Revenue. All such schedules, forms, and documents shall be uniform throughout the several counties insofar as the same is possible and practicable.

Source:Laws 1921, c. 133, art. III, § 3, p. 548; C.S.1922, § 5829; C.S.1929, § 77-303; R.S.1943, § 77-304; Laws 1959, c. 355, § 2, p. 1251; Laws 1969, c. 647, § 1, p. 2565; R.S.1943, (1976), § 77-304; Laws 1980, LB 834, § 11; Laws 1997, LB 270, § 18;    Laws 1999, LB 36, § 8;    Laws 2007, LB334, § 25.    


Annotations

77-370.01. Repealed. Laws 1995, LB 152, § 1.

77-371. Repealed. Laws 1999, LB 36, § 41.

77-372. Revenue administration; implementation of programs; records; statistical information.

The Department of Revenue shall develop, operate, and implement systems for the production of records of taxes and other revenue and receipts collected by any agency of the State of Nebraska. Such records shall provide for the collection and recording of such accounting information in such fashion as may be required by the accounting division of the Department of Administrative Services and shall provide in addition for such further statistical information as the Department of Revenue may find necessary for the effective execution of its responsibilities under appropriate laws of this state.

Source:Laws 1965, c. 459, § 4, p. 1456; R.S.1943, (1976), § 77-323; Laws 1980, LB 834, § 13.


77-373. Revenue administration; implementation of agreements and working relationships; state and federal agencies.

The Department of Revenue may develop and implement such agreements and working relationships which are consistent with the laws of the State of Nebraska with any federal office, state agency, or local subdivision of state government, either within or without the State of Nebraska which it may find necessary or desirable for proper administration of the tax laws of this state.

Source:Laws 1965, c. 459, § 5, p. 1457; R.S.1943, (1976), § 77-324; Laws 1980, LB 834, § 14.


77-373.01. Department of Labor and Department of Revenue; statistical compilation; confidentiality; disclosure authorized.

(1) The Department of Labor and the Department of Revenue shall use the codes under the North American Industry Classification System for the compilation and publication of statistics rather than codes under the Standard Industrial Classification System.

For the sole purpose of determining or updating the proper code under the appropriate industrial classification system, the Department of Labor and the Department of Revenue may disclose to the other department identification information about taxpayers conducting a business in this state. The information disclosed shall be strictly limited to the name, address, and federal employer identification number or numbers of the taxpayer and the code under the industrial classification system.

(2) Notwithstanding sections 77-2711 and 77-27,119 and for the sole purpose of administration of the Contractor Registration Act and the contractor database provisions of section 48-2117, the Department of Labor and the Department of Revenue may disclose to the other department identification information about taxpayers conducting a business in this state. The information disclosed shall be limited to the name, address, and federal employer identification number or numbers of the taxpayer.

(3) The disclosures allowed under this section may be made notwithstanding any other provision of law of this state regarding disclosure of information by either department. Any information received by either department under this section shall be considered confidential by the receiving department, and any employee who discloses such information other than as specifically allowed by this section or other laws of this state shall be subject to the penalties normally imposed on employees who improperly disclose information.

Source:Laws 1997, LB 875, § 19;    Laws 2009, LB162, § 8.    


Cross References

77-374. Department of Revenue; efficiency recommendations; report; to whom.

Where the Department of Revenue shall find that the administration of the revenue and property tax laws of the state might be more efficiently and economically conducted, it shall cause to be prepared recommendations to effect the desired objective. Such recommendations shall be given to the Governor and the chairperson of the appropriate legislative committee when the Legislature is next in regular session following the development of the recommendations. Should the Legislature be in regular session at the time such recommendations are compiled, the recommendations shall be communicated to the Governor and the appropriate committee of the Legislature.

Source:Laws 1965, c. 459, § 13, p. 1459; R.S.1943, (1976), § 77-332; Laws 1980, LB 834, § 15; Laws 2007, LB334, § 26.    


77-375. Tax Commissioner; administer oaths; compel attendance of witnesses; production of records; rules of procedure for discovery.

(1) The Tax Commissioner or his or her duly authorized representative may administer oaths and compel the attendance of witnesses and require the production of records as may be necessary for the performance of his or her responsibilities under applicable state law.

(2) Any person shall comply with a written demand of the Tax Commissioner requiring the production of records notwithstanding the confidentiality provisions of section 8-1401. The records and the information contained thereon shall be protected pursuant to the confidentiality provisions applicable to the Tax Commissioner. Any person disclosing information to the Tax Commissioner pursuant to a demand for production of records under this subsection is immune from liability, civil, criminal, or otherwise, that might result from disclosing such information. The Tax Commissioner shall pay the costs of providing such information pursuant to section 8-1402.

(3) The Tax Commissioner may adopt and promulgate rules of procedure for discovery, not in conflict with the laws governing discovery in civil cases, as may be necessary for the performance of his or her responsibilities under applicable state law.

(4) The Tax Commissioner shall have access to the information required to be reported under the New Hire Reporting Act for the purpose of administering taxes he or she has a duty to collect.

Source:Laws 1965, c. 459, § 9, p. 1457; R.S.1943, (1976), § 77-328; Laws 1980, LB 834, § 16; Laws 1993, LB 345, § 6;    Laws 1995, LB 490, § 42;    Laws 1998, LB 1104, § 8;    Laws 1999, LB 36, § 9;    Laws 2007, LB223, § 1.    


Cross References

77-375.01. Repealed. Laws 1999, LB 36, § 41.

77-376. Tax Commissioner; examination of financial records; no release of information; sharing of information; confidentiality.

(1) The Tax Commissioner may examine or cause to be examined in his or her behalf, and make memoranda from, any of the financial records of state and local subdivisions, persons, and corporations subject to the tax laws of this state, including the social security numbers of employees of such state and local subdivisions, persons, and corporations. No information shall be released that is not so authorized by existing statutes. Unless otherwise prohibited by law, the Tax Commissioner may share the information examined with the taxing or law enforcement authorities of this state, other states, and the federal government.

(2) The audit and examination selection criteria and standards, the discovery techniques, the design of technological systems to detect fraud and inconsistencies, and all other techniques utilized by the Department of Revenue to discover fraud, misstatements, inconsistencies, underreporting, and tax avoidance shall be confidential information. The department may disclose this information to certain persons to further its enforcement activities and as provided under section 50-1213, but such limited disclosure shall not change the confidential nature of the information.

Source:Laws 1965, c. 459, § 10, p. 1458; R.S.1943, (1976), § 77-329; Laws 1980, LB 834, § 17; Laws 1995, LB 490, § 43;    Laws 1999, LB 36, § 10;    Laws 2015, LB261, § 6;    Laws 2018, LB1089, § 2;    Laws 2022, LB1150, § 1.    


77-377. Proceedings by Attorney General or county attorney; enforcement of revenue laws.

The Department of Revenue may request the Attorney General or any county attorney to institute proceedings, actions, and prosecutions as may be required to enforce the laws relating to penalties, liabilities, assessments, collection, and payment of revenue and punishment of public officers, persons, or officers or agents of corporations for failure to comply with or for neglect to comply with the provisions of any revenue or property tax law administered by or subject to the administrative jurisdiction of the department.

Source:Laws 1965, c. 459, § 8, p. 1457; R.S.1943, (1976), § 77-327; Laws 1980, LB 834, § 18; Laws 1993, LB 345, § 7;    Laws 2007, LB334, § 27.    


77-377.01. Delinquent tax collection; contract with collection agency; when authorized.

The Tax Commissioner may, for the purposes of collecting delinquent taxes due from a taxpayer and in addition to exercising those powers in section 77-27,107, contract with any collection agency licensed pursuant to the Collection Agency Act, within or without the state, for the collection of such delinquent taxes, including penalties and interest thereon. Such delinquent tax claims may be assigned to the collection agency, for the purpose of litigation in the agency's name and at the agency's expense, as a means of facilitating and expediting the collection process.

For purposes of this section, a delinquent tax claim shall be defined as a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been mailed at least three notices requesting payment. At least one notice shall include a statement that the matter of such taxpayer's delinquency may be referred to a collection agency in the taxpayer's home state.

Source:Laws 1981, LB 170, § 1;    Laws 1993, LB 261, § 22;    Laws 1993, LB 161, § 2;    Laws 2012, LB727, § 28.    


Cross References

77-377.02. Delinquent tax collection; collection agency; fees; remit funds.

(1) Fees for services, reimbursements, or other remuneration to such collection agency shall be based on the amount of tax, penalty, and interest actually collected and shall not be subject to the requirements of section 73-203 or 73-204. Each contract entered into between the Tax Commissioner and the collection agency shall provide for the payment of fees for such services, reimbursements, or other remuneration not in excess of fifty percent of the total amount of delinquent taxes, penalties, and interest actually collected.

(2) All funds collected, less the fees for collection services as provided in the contract, shall be remitted to the Tax Commissioner within forty-five days from the date of collection from a taxpayer. Forms to be used for such remittances shall be prescribed by the Tax Commissioner.

Source:Laws 1981, LB 170, § 2;    Laws 2019, LB512, § 11.    


77-377.03. Delinquent tax collection; collection agency; bond required.

Before entering into such a contract, the Tax Commissioner shall require a bond for the collection agency not in excess of one hundred thousand dollars, guaranteeing compliance with the terms of the contract and such bond shall be in addition to any bond required by section 45-608.

Source:Laws 1981, LB 170, § 3.    


77-377.04. Delinquent tax collection; collection agency; subject to taxation.

A collection agency entering into a contract with the Tax Commissioner for the collection of delinquent taxes pursuant to sections 77-377.01 to 77-377.04 agrees that it is receiving income from sources within this state or doing business in this state for purposes of the Nebraska income tax laws pursuant to section 77-2733 or 77-2734.02.

Source:Laws 1981, LB 170, § 4;    Laws 1984, LB 1124, § 1.    


77-378. Delinquent taxpayers; Department of Revenue and Department of Labor; prepare, maintain, and publish list; Tax Commissioner and Commissioner of Labor; duties.

(1) The Department of Revenue and the Department of Labor shall prepare, maintain, and publish a list of delinquent taxpayers who owe taxes or fees, including interest, penalties, and costs, in excess of twenty thousand dollars for which a notice of lien has been filed with the appropriate filing officer in accordance with the Uniform State Tax Lien Registration and Enforcement Act, except that no such list of delinquent taxpayers shall include any taxpayer that has not exhausted or waived all rights of appeal from a final balance of tax liability. The list may be posted on the website of the Department of Revenue or the Department of Labor. The list shall include the name and address of the delinquent taxpayer, the type of tax or fee due, and the amount of tax or fee due, including interest, penalties, and costs.

(2) The Tax Commissioner and Commissioner of Labor shall update the list of delinquent taxpayers on a quarterly basis. The list shall not include (a) the name or related information of any taxpayer who has entered into a payment agreement with the Tax Commissioner or Commissioner of Labor and who is in compliance with that agreement or (b) the name or related information of any person who is protected by a stay that is in effect under the federal bankruptcy law. The name of a taxpayer shall be removed from the list within fifteen days after the payment in full of the debt or within fifteen days after the taxpayer enters into a payment agreement with the Tax Commissioner or Commissioner of Labor. A taxpayer may be placed back on the list if the taxpayer is more than fifteen days delinquent on a payment agreement.

(3) At least thirty days before the disclosure of the name of a delinquent taxpayer pursuant to subsection (1) of this section, the Tax Commissioner or Commissioner of Labor shall mail a written notice to the delinquent taxpayer at the taxpayer's last-known address informing the taxpayer that the failure to cure the tax delinquency could result in the taxpayer's name being included in a list of delinquent taxpayers that is published by the Tax Commissioner or Commissioner of Labor pursuant to this section.

Source:Laws 2010, LB879, § 6.    


Cross References

77-379. Act, how cited.

Sections 77-379 to 77-385 shall be known and may be cited as the Tax Expenditure Reporting Act.

Source:Laws 1979, LB 17, § 1;    R.S.Supp.,1979, § 77-353; Laws 1980, LB 834, § 20; Laws 1991, LB 82, § 1.    


77-380. Legislative intent.

It is the intent of sections 77-202.03 and 77-379 to 77-385 to provide a mechanism which will enable the Legislature to better determine those sectors of the economy which are receiving indirect subsidies as a result of tax expenditures. The Legislature recognizes that the present budgeting system fails to accurately and totally reflect the revenue lost due to such tax expenditures and that as a result undetermined amounts of potential revenue are escaping public or legislative scrutiny. The loss of such potential revenue causes a narrowing of the tax base which in turn forces higher tax rates on the remaining tax base.

Source:Laws 1979, LB 17, § 2;    R.S.Supp.,1979, § 77-354; Laws 1980, LB 834, § 21.


77-381. Terms, defined.

For purposes of the Tax Expenditure Reporting Act, unless the context otherwise requires:

(1) Tax expenditure shall mean a revenue reduction that occurs in the tax base of the state or a political subdivision as the result of an exemption, deduction, exclusion, tax deferral, credit, or preferential rate introduced into the tax structure;

(2) Department shall mean the Department of Revenue;

(3) Income tax shall mean the tax imposed upon individuals and corporations under the Nebraska Revenue Act of 1967;

(4) Sales tax shall mean the tax imposed upon expenditures under the Nebraska Revenue Act of 1967;

(5) Property tax shall mean the tax imposed upon real and personal property under Chapter 77; and

(6) Miscellaneous tax shall mean revenue sources other than income, sales, and property taxes for state and local government including, but not limited to, motor fuel taxes, liquor taxes, cigarette taxes, inheritance and estate taxes, generation-skipping transfer taxes, insurance premium taxes, and occupation taxes and fees or other taxes which generate state or local revenue annually in excess of two million dollars.

Source:Laws 1979, LB 17, § 3;    R.S.Supp.,1979, § 77-355; Laws 1980, LB 834, § 22; Laws 1992, LB 1004, § 1; Laws 1994, LB 1160, § 121;    Laws 1995, LB 182, § 65.    


Cross References

77-382. Department; tax expenditure report; prepare; contents.

(1) The department shall prepare a tax expenditure report describing (a) the basic provisions of the Nebraska tax laws, (b) the actual or estimated revenue loss caused by the exemptions, deductions, exclusions, deferrals, credits, and preferential rates in effect on July 1 of each year and allowed under Nebraska's tax structure and in the property tax, (c) the actual or estimated revenue loss caused by failure to impose sales and use tax on services purchased for nonbusiness use, and (d) the elements which make up the tax base for state and local income, including income, sales and use, property, and miscellaneous taxes.

(2) The department shall review the major tax exemptions for which state general funds are used to reduce the impact of revenue lost due to a tax expenditure. The report shall indicate an estimate of the amount of the reduction in revenue resulting from the operation of all tax expenditures. The report shall list each tax expenditure relating to sales and use tax under the following categories:

(a) Agriculture, which shall include a separate listing for the following items: Agricultural machinery; agricultural chemicals; seeds sold to commercial producers; water for irrigation and manufacturing; commercial artificial insemination; mineral oil as dust suppressant; animal grooming; oxygen for use in aquaculture; animal life whose products constitute food for human consumption; and grains;

(b) Business across state lines, which shall include a separate listing for the following items: Property shipped out-of-state; fabrication labor for items to be shipped out-of-state; property to be transported out-of-state; property purchased in other states to be used in Nebraska; aircraft delivery to an out-of-state resident or business; state reciprocal agreements for industrial machinery; and property taxed in another state;

(c) Common carrier and logistics, which shall include a separate listing for the following items: Railroad rolling stock and repair parts and services; common or contract carriers and repair parts and services; common or contract carrier accessories; and common or contract carrier safety equipment;

(d) Consumer goods, which shall include a separate listing for the following items: Motor vehicles and motorboat trade-ins; merchandise trade-ins; certain medical equipment and medicine; newspapers; laundromats; telefloral deliveries; motor vehicle discounts for the disabled; and political campaign fundraisers;

(e) Energy, which shall include a separate listing for the following items: Motor fuels; energy used in industry; energy used in agriculture; aviation fuel; and minerals, oil, and gas severed from real property;

(f) Food, which shall include a separate listing for the following items: Food for home consumption; Supplemental Nutrition Assistance Program; school lunches; meals sold by hospitals; meals sold by institutions at a flat rate; food for the elderly, handicapped, and Supplemental Security Income recipients; and meals sold by churches;

(g) General business, which shall include a separate listing for the following items: Component and ingredient parts; manufacturing machinery; containers; film rentals; molds and dies; syndicated programming; intercompany sales; intercompany leases; sale of a business or farm machinery; and transfer of property in a change of business ownership;

(h) Lodging and shelter, which shall include a separate listing for the following item: Room rentals by certain institutions;

(i) Miscellaneous, which shall include a separate listing for the following items: Cash discounts and coupons; separately stated finance charges; casual sales; lease-to-purchase agreements; and separately stated taxes;

(j) Nonprofits, governments, and exempt entities, which shall include a separate listing for the following items: Purchases by political subdivisions of the state; purchases by churches and nonprofit colleges and medical facilities; purchasing agents for public real estate construction improvements; contractor as purchasing agent for public agencies; Nebraska lottery; admissions to school events; sales on Native American Indian reservations; school-supporting fundraisers; fine art purchases by a museum; purchases by the Nebraska State Fair Board; purchases by the Nebraska Investment Finance Authority and licensees of the State Racing and Gaming Commission; purchases by the United States Government; public records; and sales by religious organizations;

(k) Recent sales tax expenditures, which shall include a separate listing for each sales tax expenditure created by statute or rule and regulation after July 19, 2012;

(l) Services purchased for nonbusiness use, which shall include a separate listing for each such service, including, but not limited to, the following items: Motor vehicle cleaning, maintenance, and repair services; cleaning and repair of clothing; cleaning, maintenance, and repair of other tangible personal property; maintenance, painting, and repair of real property; entertainment admissions; personal care services; lawn care, gardening, and landscaping services; pet-related services; storage and moving services; household utilities; other personal services; taxi, limousine, and other transportation services; legal services; accounting services; other professional services; and other real estate services; and

(m) Telecommunications, which shall include a separate listing for the following items: Telecommunications access charges; prepaid calling arrangements; conference bridging services; and nonvoice data services.

(3) It is the intent of the Legislature that nothing in the Tax Expenditure Reporting Act shall cause the valuation or assessment of any property exempt from taxation on the basis of its use exclusively for religious, educational, or charitable purposes.

Source:Laws 1979, LB 17, § 4;    R.S.Supp.,1979, § 77-356; Laws 1980, LB 834, § 23; Laws 1991, LB 82, § 2;    Laws 2012, LB962, § 1;    Laws 2013, LB629, § 1;    Laws 2014, LB989, § 1;    Laws 2021, LB561, § 47.    


77-383. Tax expenditure reports; department; access to information.

The department may request from any state or local official or agency any information necessary to complete the reports required under section 77-382 and subsection (2) of section 77-385. All state and local officials or agencies shall cooperate with the department with respect to any such request.

Source:Laws 1979, LB 17, § 5;    R.S.Supp.,1979, § 77-357; Laws 1980, LB 834, § 24; Laws 2014, LB989, § 2.    


77-384. Repealed. Laws 1991, LB 82, § 6.

77-385. Tax expenditure report; summary; submission required; joint hearing; supplemental information.

(1) The report required under section 77-382 and a summary of the report shall be submitted to the Governor, the Executive Board of the Legislative Council, and the chairpersons of the Legislature's Revenue and Appropriations Committees on or before October 15, 1991, and October 15 of every even-numbered year thereafter. The report submitted to the executive board and the committees shall be submitted electronically. The department shall, on or before December 1 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request. The summary shall be included with or appended to the Governor's budget presented to the Legislature in odd-numbered years.

(2)(a) In addition to the tax expenditure report required under section 77-382, the department shall prepare an annual report that focuses specifically on the tax expenditures relating to sales and use tax as follows:

(i) For 2014 and every fourth year thereafter, the report shall analyze the actual or estimated revenue loss caused by the tax expenditures described in subdivisions (2)(a) through (c) of section 77-382;

(ii) For 2015 and every fourth year thereafter, the report shall analyze the actual or estimated revenue loss caused by the tax expenditures described in subdivisions (2)(d) through (f) of section 77-382;

(iii) For 2016 and every fourth year thereafter, the report shall analyze the actual or estimated revenue loss caused by the tax expenditures described in subdivisions (2)(g) through (j) of section 77-382; and

(iv) For 2017 and every fourth year thereafter, the report shall analyze the actual or estimated revenue loss caused by the tax expenditures described in subdivisions (2)(k) through (m) of section 77-382.

(b) The report required under this subsection shall be submitted to the Governor, the Executive Board of the Legislative Council, and the chairpersons of the Revenue Committee of the Legislature and the Appropriations Committee of the Legislature on or before October 15 of each year. The report submitted to the executive board and the committees shall be submitted electronically. The department shall, on or before December 1 of each year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

Source:Laws 1979, LB 17, § 7;    R.S.Supp.,1979, § 77-359; Laws 1980, LB 834, § 26; Laws 1991, LB 82, § 3;    Laws 2012, LB782, § 136;    Laws 2013, LB612, § 1;    Laws 2014, LB989, § 3.    


77-386. Repealed. Laws 1982, LB 454, § 4.

77-387. Repealed. Laws 1987, LB 508, § 50.

77-388. Repealed. Laws 1987, LB 508, § 50.

77-389. Repealed. Laws 1987, LB 508, § 50.

77-390. Repealed. Laws 1987, LB 508, § 50.

77-391. Repealed. Laws 1987, LB 508, § 50.

77-392. Repealed. Laws 1987, LB 508, § 50.

77-393. Repealed. Laws 1987, LB 508, § 50.

77-394. Repealed. Laws 1987, LB 508, § 50.

77-395. Repealed. Laws 1987, LB 508, § 50.

77-396. Repealed. Laws 1987, LB 508, § 50.

77-397. Repealed. Laws 1997, LB 770, § 5.

77-398. Repealed. Laws 2000, LB 968, § 92.

77-399. Repealed. Laws 1997, LB 270, § 110.

77-3,100. Repealed. Laws 1997, LB 270, § 110.

77-3,101. Repealed. Laws 1985, LB 273, § 72.

77-3,102. Repealed. Laws 1985, LB 273, § 72.

77-3,103. Repealed. Laws 1985, LB 273, § 72.

77-3,104. Repealed. Laws 1985, LB 273, § 72.

77-3,105. Repealed. Laws 1985, LB 273, § 72.

77-3,106. Repealed. Laws 1985, LB 273, § 72.

77-3,107. Repealed. Laws 1985, LB 273, § 72.

77-3,108. Repealed. Laws 1985, LB 273, § 72.

77-3,109. Charge for publications; authorized.

The Department of Revenue may charge persons and state agencies for the following publications of the Department of Revenue: Department of Revenue Annual Report, Package XN, Department of Revenue Tax Expenditure Report, and the Department of Revenue State Funds Booklet. The Tax Commissioner shall set the price of such publications which shall be the cost of production.

Source:Laws 1986, LB 1027, § 211.    


77-3,110. Department of Revenue Miscellaneous Receipts Fund; created; use; investment.

(1) All funds received pursuant to sections 77-3,109 and 77-3,118 shall be remitted to the State Treasurer for credit to the Department of Revenue Miscellaneous Receipts Fund which is hereby created.

(2) On or before September 1, 2020, the State Treasurer shall transfer fifty-nine thousand five hundred dollars from the College Savings Plan Expense Fund to the Department of Revenue Miscellaneous Receipts Fund.

(3) All money in the Department of Revenue Miscellaneous Receipts Fund shall be administered by the Department of Revenue and shall be used as follows:

(a) Any money transferred to the fund under subsection (2) of this section shall be used by the Department of Revenue to defray the costs incurred to implement Laws 2020, LB1042; and

(b) All other funds shall be used to defray the cost of production of the publications listed in section 77-3,109 or of the listings described in section 77-3,118 and to carry out any administrative responsibilities of the department.

(4) Transfers may be made from the fund to the General Fund at the direction of the Legislature. Any money in the Department of Revenue Miscellaneous Receipts Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1986, LB 1027, § 212;    Laws 1993, LB 345, § 10;    Laws 1994, LB 1066, § 79;    Laws 2009, First Spec. Sess., LB3, § 54;    Laws 2020, LB1042, § 1.    


Cross References

77-3,111. Repealed. Laws 2011, LB 378, § 37.

77-3,112. Low-level radioactive waste facility or employment; employment of person removed under immigration and customs enforcement or convicted for certain violations; tax credit or exemption; prohibited.

(1) Notwithstanding any provision of law, the Tax Commissioner shall not approve or grant to any person or taxpayer any tax credit or exemption for the construction of a facility or the employment of people for the disposal in Nebraska of low-level radioactive waste for which a license is required pursuant to the Low-Level Radioactive Waste Disposal Act.

(2) Notwithstanding any provision of law, the Tax Commissioner shall not approve or grant to any person any tax credit, exemption, or refund for the employment of any person who has been removed from the United States pursuant to proceedings initiated by the United States Immigration and Customs Enforcement, or other competent authority, or who has been convicted in a criminal court proceeding for offenses related to illegal immigration. Any benefits that were received prior to the removal or conviction will be recaptured to the extent the benefits were received based on the employment of such persons.

Source:Laws 1987, LB 523, § 46;    Laws 2007, LB223, § 2.    


Cross References

77-3,113. Repealed. Laws 1997, LB 270, § 110.

77-3,114. Repealed. Laws 1997, LB 270, § 110.

77-3,115. Material for developing tax policy changes; study; contents.

The Department of Revenue shall gather, prepare, and study material which shall be used as a basis for developing tax policy changes. The material shall be directed toward providing results which would be useful to a concept of analyzing the impact of taxes on different economic sectors as defined by the Standard Industrial Code in the state and the impact on those sectors of any policy changes in taxes. The study shall be updated to serve as a basis to review future proposed tax policy changes. The study shall include, but not be restricted to, the following:

(1) Compiling an accurate and dependable set of indicators that show the role each economic sector plays in Nebraska's economy and each sector's legal tax incidence by tax types. The purpose is to develop an appropriate share for each economic sector's responsibility for state and local taxes;

(2) The amount of taxes, fees, and other governmental costs imposed on each economic sector which amount shall include those taxes, fees, and other governmental costs imposed on individuals employed in industries in such sector; and

(3) If possible, an estimate of those state and local taxes, fees, and other governmental costs which are exported outside the state or offset by provisions of state and federal tax laws.

Source:Laws 1992, LB 719A, § 217.    


77-3,116. Study; cooperation with Department of Labor and other state agencies; contracts authorized; reports; department; duty.

(1) The Department of Revenue and the Department of Labor shall cooperate and participate in the collection of data for the study described in section 77-3,115. Other state agencies, including the University of Nebraska, shall assist in the study or the update as requested by the Department of Revenue and as any necessary funds are available. Any agency may contract with the Department of Revenue to provide such assistance. The Department of Revenue may also contract with an independent entity for the entity to conduct or assist in conducting such study or update. The department, other state agency, or independent entity preparing the material or study shall utilize and consider, along with other information, the results of any available study relating to the items listed in section 77-3,115 and conducted or contracted for by the Legislature in the year prior to April 16, 1992.

(2) A preliminary report of the initial study's models and initial findings shall be reported by the Department of Revenue to the chairpersons of the Appropriations Committee and Revenue Committee of the Legislature, the Clerk of the Legislature, and the Governor by December 1, 1992. The initial study shall be completed and the department shall report its findings to the same entities by December 1, 1993. The study shall be updated and the update shall be reported to the same entities on November 1, 2013, and every two years thereafter. The study submitted to the Appropriations Committee and Revenue Committee of the Legislature and the Clerk of the Legislature pursuant to this subsection shall be submitted electronically.

(3) Any models developed for the initial study or update shall be electronically shared with the Legislative Fiscal Analyst. The Department of Revenue shall include in its budget request for every other biennium following the 1991-93 biennium sufficient appropriation authority to conduct or contract for the required update.

Source:Laws 1992, LB 719A, § 218;    Laws 2012, LB727, § 29;    Laws 2012, LB782, § 137;    Laws 2013, LB612, § 2.    


77-3,117. Department of Revenue; computation authorized.

(1) When the Department of Revenue finds that the administration of the revenue laws might be more efficiently and economically conducted, the department may require or allow for rounding of all amounts on returns or reports, including amounts of tax. Amounts will be rounded to the nearest dollar, with amounts ending in fifty cents or more rounded to the next highest dollar.

(2) The department may, on an annual basis, eliminate account balances of one dollar or less under uniform procedures developed by the department.

(3) For sales and use tax purposes, the tax computation shall be carried to the third decimal place and rounded down to a whole cent whenever the third decimal place is four or less and rounded up to a whole cent whenever the third decimal place is greater than four.

Source:Laws 1993, LB 345, § 8;    Laws 2003, LB 282, § 5.    


77-3,118. Department of Revenue; charge for information; authorized.

The Department of Revenue may charge persons and state agencies for any listings made by the department of information that is not confidential. The Tax Commissioner shall set the price of such listings which shall be the cost of production.

Source:Laws 1993, LB 345, § 9.    


77-3,119. Tax Commissioner; certify population of cities and villages.

(1) The Tax Commissioner shall certify the population of cities and villages to be used for purposes of calculations made pursuant to subdivisions (3)(a) and (b) of section 35-1205, subdivision (1) of section 39-2517, and sections 39-2513 and 77-27,139.02. The Tax Commissioner shall transmit copies of such certification to all interested parties upon request.

(2) The Tax Commissioner shall certify the population of each city and village based upon the most recent federal census figures. The Tax Commissioner shall determine the most recent federal census figures for each city and village by using the most recent federal census figures available from (a) the most recent federal decennial census, (b) the most recent revised certified count by the United States Bureau of the Census, or (c) the most recent federal census figure of the city or village plus the population of territory annexed as calculated in sections 18-1753 and 18-1754.

(3) The Tax Commissioner may adopt and promulgate rules and regulations to carry out this section.

Source:Laws 1994, LB 1127, § 1;    Laws 1998, LB 1120, § 26;    Laws 2000, LB 968, § 33;    Laws 2011, LB383, § 2;    Laws 2017, LB113, § 54;    Laws 2021, LB509, § 9.    


77-401. Transferred to section 23-3205.

77-401.01. Repealed. Laws 1986, LB 888, § 1.

77-401.02. Transferred to section 23-3206.

77-402. Repealed. Laws 1987, LB 508, § 50.

77-403. Transferred to section 23-3210.

77-404. Transferred to section 23-3208.

77-405. Repealed. Laws 1949, c. 225, § 1.

77-405.01. Repealed. Laws 1982, LB 592, § 2.

77-406. Transferred to section 77-1202.01.

77-407. Transferred to section 23-3306.

77-408. Transferred to section 23-3209.

77-409. Transferred to section 77-1233.02.

77-410. Transferred to section 77-1233.03.

77-411. Repealed. Laws 1987, LB 508, § 50.

77-412. Transferred to section 77-1233.04.

77-412.01. Transferred to section 77-1233.05.

77-413. Repealed. Laws 1965, c. 475, § 7.

77-414. Educational courses and standards; Tax Commissioner; duties.

The Property Tax Administrator shall:

(1) Establish, implement, and maintain a required system of educational courses for the certification and recertification of all holders of county assessor certificates; and

(2) Establish the required educational standards and criteria for certification and recertification of all holders of county assessor certificates.

In order to promote compliance with the requirements of this section, the Tax Commissioner shall adopt and promulgate, and from time to time amend or revise, rules and regulations containing the necessary educational standards and criteria for certification and recertification.

Source:Laws 1999, LB 194, § 14;    Laws 2003, LB 443, § 1;    Laws 2007, LB334, § 28.    


77-415. Repealed. Laws 2007, LB 334, § 108.

77-416. Repealed. Laws 1997, LB 270, § 110.

77-417. Repealed. Laws 2007, LB 334, § 108.

77-418. Repealed. Laws 1997, LB 270, § 110.

77-419. Repealed. Laws 1997, LB 270, § 110.

77-420. Supplementary seminars; purpose.

In cooperation with the county assessors association, the Property Tax Administrator may arrange and conduct seminars in assessment methods, which seminars shall be supplementary to any educational course required under section 77-414.

Source:Laws 1963, c. 439, § 6, p. 1458; Laws 1995, LB 490, § 51;    Laws 1997, LB 270, § 21;    Laws 2003, LB 443, § 4.    


77-421. Certification as county assessor; applicants; forms; examination; fee.

(1) The Property Tax Administrator shall, in February, May, August, and November of each year, hold an examination of applicants for certification as county assessor. An applicant for the examination shall, not less than ten days before an examination, present to the Property Tax Administrator a written application on forms provided by the Property Tax Administrator. Such application shall not be considered by the Property Tax Administrator unless accompanied by a payment of a fee to the order of the Tax Commissioner. The fees shall be credited to the Department of Revenue Property Assessment Division Cash Fund. The amount of such fee shall be determined annually by the Tax Commissioner and shall be sufficient to cover the costs of the administration of the examination. Such examination shall be written and shall be of such character as fairly to test and determine the qualifications, fitness, and ability of the person tested actually to perform the duties of county assessor. The Property Tax Administrator shall prepare such examination.

(2) When the office of county assessor is vacant, the county board may for good cause request a certification examination from the Property Tax Administrator at a time different from those set out in subsection (1) of this section. The request shall be in writing and shall state the basis for the certification examination. The Property Tax Administrator shall within ten days after receipt of the request for certification review the request and send notice of approval or disapproval to the county board. If approved, the Property Tax Administrator shall state the date, time, and place of the requested certification examination.

Source:Laws 1969, c. 623, § 1, p. 2520; Laws 1983, LB 245, § 1;    Laws 1986, LB 1105, § 1;    Laws 1995, LB 490, § 52;    Laws 1997, LB 270, § 22;    Laws 1999, LB 36, § 12;    Laws 2000, LB 968, § 34;    Laws 2007, LB334, § 29;    Laws 2009, LB166, § 5.    


Annotations

77-422. Certification as county assessor; examination; successful completion; certificate; disciplinary actions; appeal; invalidated certificate; effect.

(1) Upon the successful completion of the examination by the applicant, a county assessor certificate shall be issued to him or her.

(2) The Tax Commissioner shall establish a system for revocation or suspension of a certificate, including a certificate issued by the Property Tax Administrator, for failure to maintain the educational standards and criteria and shall have the power to revoke the certificate if the certificate holder has not successfully met the educational requirements in section 77-414. A copy of the Tax Commissioner's written order revoking or suspending a certificate shall be mailed to the person within seven days after the date of the order.

(3) Any person whose certificate, including a certificate issued by the Property Tax Administrator, has been revoked or suspended may appeal the written order of the Tax Commissioner, within thirty days after the date of the order, to the Tax Equalization and Review Commission in accordance with section 77-5013.

(4) A person whose certificate has been invalidated by the commission or the Tax Commissioner shall not be eligible to hold a certificate for five years after the date of invalidation.

Source:Laws 1969, c. 623, § 2, p. 2521; Laws 2003, LB 443, § 5;    Laws 2004, LB 973, § 9;    Laws 2006, LB 808, § 25;    Laws 2007, LB334, § 30.    


Annotations

77-423. Transferred to section 23-3202.

77-424. Repealed. Laws 1982, LB 592, § 2.

77-425. Repealed. Laws 1999, LB 36, § 41; Laws 1999, LB 194, § 40.

77-426. Transferred to section 23-3204.

77-427. Repealed. Laws 1986, LB 1105, § 2.

77-428. Repealed. Laws 1997, LB 270, § 110.

77-429. Transferred to section 23-3203.

77-430. Transferred to section 77-1311.01.

77-501. Repealed. Laws 2000, LB 1067, § 36.

77-502. Repealed. Laws 2000, LB 1067, § 36.

77-503. Repealed. Laws 2000, LB 1067, § 36.

77-504. Repealed. Laws 1987, LB 508, § 50.

77-505. Transferred to section 77-5022.

77-506. Transferred to section 77-5023.

77-506.01. Repealed. Laws 1991, LB 320, § 13.

77-507. Repealed. Laws 1987, LB 508, § 50.

77-507.01. Transferred to section 77-5024.

77-507.02. Repealed. Laws 1987, LB 508, § 50.

77-507.03. Transferred to section 77-5025.

77-508. Transferred to section 77-5026.

77-508.01. Transferred to section 77-5027.

77-509. Transferred to section 77-5028.

77-509.01. Transferred to section 77-5029.

77-509.02. Transferred to section 77-5030.

77-510. Repealed. Laws 1997, LB 397, § 51.

77-510.01. Repealed. Laws 1969, c. 793, § 1.

77-511. Repealed. Laws 1997, LB 397, § 51.

77-512. Repealed. Laws 1969, c. 657, § 1.

77-513. Repealed. Laws 1969, c. 657, § 1.

77-514. Repealed. Laws 1969, c. 657, § 1.

77-515. Repealed. Laws 1969, c. 411, § 1.

77-516. Repealed. Laws 1969, c. 411, § 1.

77-517. Repealed. Laws 1969, c. 657, § 1.

77-518. Transferred to section 77-1316.01.

77-519. Transferred to section 77-1613.02.

77-601. Railroad operating property; assessment.

The Property Tax Administrator shall assess all operating property of the railroads and railroad corporations in the State of Nebraska as defined in section 77-602.

Source:Laws 1903, c. 73, § 85, p. 413; Laws 1909, c. 111, § 1, p. 441; R.S.1913, § 6375; Laws 1921, c. 133, art. VI, § 1, p. 554; C.S.1922, § 5839; C.S.1929, § 77-501; R.S.1943, § 77-601; Laws 1969, c. 645, § 3, p. 2559; Laws 1969, c. 658, § 1, p. 2575; Laws 1979, LB 105, § 1;    Laws 1985, LB 268, § 3;    Laws 1995, LB 490, § 60.    


Annotations

77-602. Railroad operating property; duty of Property Tax Administrator; when valued.

The Property Tax Administrator in May of each year shall proceed to ascertain all operating property of any railroad company owning, operating, or controlling any railroad or railroad service in this state. Operating property is property that contributes to the operation of a railroad and which for the purpose of this section shall be held to include the main track, sidetrack, spur tracks, warehouse tracks, roadbed, right-of-way and depot grounds, all machine and repair shops, general office buildings, storehouses, and all water and fuel stations, buildings, and superstructures located on any of such property, any manufacturing plant necessary in the operation of such railroad and any property used or held in connection with the manufacturing plant, all machinery, rolling stock, telegraph lines and instruments connected with such lines, all material on hand and supplies provided for operating and carrying on the business of such road, in whole or in part, franchises, all personal property of such railroad company, and all other real property of such railroad company which is adjacent and contiguous to the railroad right-of-way and is used or held for the sole purpose of operating the railroad. Nonoperating property is property owned or leased by a railroad company that does not contribute to the operation of a railroad. The Property Tax Administrator shall value operating property as other real and personal property.

Source:Laws 1903, c. 73, § 86, p. 414; R.S.1913, § 6376; Laws 1921, c. 133, art. VI, § 2, p. 555; C.S.1922, § 5840; C.S.1929, § 77-502; R.S.1943, § 77-602; Laws 1969, c. 659, § 1, p. 2577; Laws 1979, LB 105, § 2;    Laws 1979, LB 103, § 1;    Laws 1981, LB 486, § 1; Laws 1985, LB 268, § 4;    Laws 1995, LB 490, § 61;    Laws 1997, LB 270, § 24.    


Annotations

77-603. Railroad property; annual statement; contents.

On or before April 15 each year, the person, company, or corporation owning, operating, or controlling any railroad or railroad service in this state shall, by a duly authorized corporate representative or official, return to the Property Tax Administrator a statement of the property of such company on January 1 preceding. The statement shall be made on forms prescribed by the Tax Commissioner. All information reported by the railroad company, not available from any other public source, and any memorandum thereof shall be confidential and available to taxing officials only. For good cause shown, the Property Tax Administrator may allow an extension of time in which to file such statement. Such extension shall not exceed fifteen days after April 15. Such statement shall include:

(1) A list of the right-of-way, track, and roadbed, giving the entire length of the main track and sidetrack in this and other states, and showing as to this state the portion in each governmental subdivision;

(2) A schedule showing: (a) The amount of capital stock authorized and the number of shares into which such capital stock is divided; (b) the amount of capital stock paid up; (c) the market value of the stock or, if of no market value, then the true value of the shares of stock; (d) the total amount of all secured and unsecured indebtedness except for current expenses of operating the road; and (e) the taxable valuation of all its operating property in this state that is locally assessed;

(3) A correct return of the value of all materials and supplies used for operating and carrying on the business of such railroad;

(4) The total gross earnings and net earnings of such corporation during the year for which the statement is made, and the total amount expended in the operation and maintenance of the property and the improvements to such property, distinguishing that expended in improvement or betterment from that expended in maintenance and operation, also the dividend last declared upon its shares and the amount thereof, and the date, number, and amount of all dividends declared upon its stock during the year preceding the date of such report; and

(5) Such other necessary information as the Property Tax Administrator may require, all of which shall be taken into consideration in ascertaining and fixing the value of such railroad and the franchise thereof.

Source:Laws 1903, c. 73, § 87, p. 414; R.S.1913, § 6377; Laws 1921, c. 133, art. VI, § 3, p. 555; C.S.1922, § 5841; C.S.1929, § 77-503; R.S.1943, § 77-603; Laws 1979, LB 105, § 3;    Laws 1979, LB 103, § 2;    Laws 1981, LB 179, § 4;    Laws 1985, LB 268, § 5;    Laws 1992, LB 719A, § 163;    Laws 1995, LB 490, § 62;    Laws 1997, LB 270, § 25;    Laws 2004, LB 973, § 10;    Laws 2007, LB334, § 31.    


Annotations

77-603.01. Railroad operating property; sale; report by purchaser; contents; penalty; waiver.

The sale of railroad operating property as defined in section 77-602 shall be reported by the purchaser to the Property Tax Administrator within thirty days after the date of sale. The purchaser shall identify the seller, the date of the sale, any change in the name of the railroad, the main track and sidetrack mileage located in each political subdivision, and the purchase price. If additional information regarding the sale is deemed necessary, the Property Tax Administrator shall make a written request for such information to the purchaser or seller. This requirement shall apply only to a purchaser subject to section 77-603. For each day's failure to furnish the information required to be reported by this section, the Tax Commissioner shall assess a penalty in the amount of one hundred dollars, except that the penalty shall not exceed ten thousand dollars. Such penalty shall be collected by the Tax Commissioner and credited to the Department of Revenue Property Assessment Division Cash Fund. The Tax Commissioner may waive all or part of the penalty provided in this section.

Source:Laws 1997, LB 270, § 26;    Laws 1999, LB 36, § 13;    Laws 2007, LB334, § 32.    


77-604. Railroad property; statement by railroad company not conclusive; taxable value; distribution; valuation per mile; how determined.

The returns of railroad companies or corporations shall not be held to be conclusive as to the taxable value of the property, but the Property Tax Administrator shall, from all the information which he or she is able to obtain, including records of the Public Service Commission or other regulatory body, find the taxable value of all such property, including tangible property and franchises, and shall assess such property on the same basis as other property is required to be assessed.

The taxable value of the railroad companies allocated to the state shall be distributed as follows:

(1) Five percent shall be distributed to all taxing subdivisions where the railroad company has investment in general office buildings or machine and repair facilities proportionate to the company's investment in general office buildings and machine and repair facilities in the state; and

(2) The balance shall be distributed to all taxing subdivisions including cities and villages based on a formula in which fifty percent of the valuation is based on miles of main track and sidetrack and fifty percent of the valuation is based on density factor on miles of main track and sidetrack. The value per mile of sidetrack shall equal the value of the line divided by the following quantity: The number of miles of sidetrack plus two times the number of miles of main track. The value per mile of main track shall equal twice the value per mile of sidetrack as computed in this section.

For purposes of Chapter 77, article 6, the reference to sidetrack shall include all track not properly designated as main track and shall include, but not be limited to, passing track, yard track, and track within terminals. Main track shall be defined as that track over which regularly scheduled railroad operations are conducted. Density factor shall be determined by ton-miles traveled over a route, measured by the number of tons of revenue freight moved one mile.

Source:Laws 1903, c. 73, § 89, p. 417; R.S.1913, § 6378; Laws 1921, c. 133, art. VI, § 4, p. 557; C.S.1922, § 5842; C.S.1929, § 77-504; R.S.1943, § 77-604; Laws 1979, LB 103, § 3;    Laws 1981, LB 486, § 2; Laws 1985, LB 268, § 6;    Laws 1992, LB 1063, § 64; Laws 1992, Second Spec. Sess., LB 1, § 62;    Laws 1995, LB 490, § 63.    


Annotations

77-605. Railroad operating property; failure of railroad to furnish statement or information; penalty; waiver.

For each day's failure to furnish the statement required by section 77-603 or for each day's failure to furnish the information as required on those statements, the Tax Commissioner shall assess a penalty in the amount of one hundred dollars, except that the penalty shall not exceed ten thousand dollars. Such penalty shall be collected by the Tax Commissioner and credited to the Department of Revenue Property Assessment Division Cash Fund. The Tax Commissioner, in his or her discretion, may waive all or part of the penalty provided in this section.

Source:Laws 1903, c. 73, § 88, p. 416; R.S.1913, § 6379; Laws 1921, c. 133, art. VI, § 5, p. 557; C.S.1922, § 5843; C.S.1929, § 77-505; R.S.1943, § 77-605; Laws 1977, LB 39, § 212;    Laws 1979, LB 105, § 4;    Laws 1979, LB 187, § 195;    Laws 1980, LB 599, § 11; Laws 1985, LB 268, § 7;    Laws 1986, LB 817, § 4;    Laws 1995, LB 490, § 64;    Laws 1997, LB 270, § 27;    Laws 1999, LB 36, § 14;    Laws 2007, LB334, § 33.    


77-606. Railroad nonoperating property; annual statement by railroad to county assessor; when made.

The county assessor shall assess all nonoperating property of any railroad company. A railroad company operating within the State of Nebraska shall, on or before January 1 of each year, report to the county assessor all nonoperating property belonging to such railroad company.

Source:Laws 1903, c. 73, § 90, p. 417; R.S.1913, § 6380; Laws 1921, c. 133, art. VI, § 6, p. 558; C.S.1922, § 5844; C.S.1929, § 77-506; R.S.1943, § 77-606; Laws 1947, c. 251, § 4, p. 808; Laws 1969, c. 658, § 2, p. 2576; Laws 1979, LB 105, § 5;    Laws 1979, LB 103, § 4;    Laws 1985, LB 268, § 8;    Laws 1995, LB 490, § 65;    Laws 1997, LB 270, § 28.    


77-607. Railroad property; Tax Commissioner; hearing; power to compel attendance of railroad's officers or agents.

The Tax Commissioner shall have power to require any officer, agent, or servant of any railroad or railway company having any portion of its property in this state to attend a hearing and to answer under oath questions regarding the property. The Tax Commissioner shall have power to issue whatever notice or process may be necessary to compel the attendance of any such person as a witness.

Source:Laws 1903, c. 73, § 91, p. 417; R.S.1913, § 6381; Laws 1921, c. 133, art. VI, § 7, p. 558; C.S.1922, § 5845; C.S.1929, § 77-507; R.S.1943, § 77-607; Laws 1977, LB 39, § 213;    Laws 1985, LB 268, § 9;    Laws 1995, LB 490, § 66;    Laws 1997, LB 270, § 29;    Laws 2007, LB334, § 34.    


77-608. Repealed. Laws 1997, LB 270, § 110.

77-609. Railroad operating property; density factor; recalculation.

Beginning January 1, 2001, the Property Tax Administrator shall annually calculate the density factor used in distributing value along the line based upon an average of the most recent three years. If a density factor cannot be determined in this manner, the Property Tax Administrator may use other information to develop a fair and reasonable factor in lieu of the density factor.

Source:Laws 1927, c. 174, § 1, p. 509; C.S.1929, § 77-509; R.S.1943, § 77-609; Laws 1979, LB 105, § 6;    Laws 1985, LB 268, § 11;    Laws 1995, LB 490, § 68;    Laws 2000, LB 968, § 35.    


Annotations

77-610. Repealed. Laws 1985, LB 268, § 31.

77-611. Repealed. Laws 1997, LB 270, § 110.

77-612. Railroad property; notice of valuation; appeal.

On or before July 1, the Property Tax Administrator shall mail a draft appraisal to each railroad company required to file pursuant to section 77-603. The Property Tax Administrator shall, on or before July 15 of each year, notify by mail each railroad company of the total allocated value of its operating property. If a railroad company feels aggrieved, such railroad company may, on or before August 1, file with the Tax Commissioner an administrative appeal in writing stating that it claims the valuation is unjust or inequitable, the amount which it is claimed the valuation should be, and the excess therein and asking for an adjustment of the valuation by the Tax Commissioner. The Tax Commissioner shall act upon the appeal and shall issue a written order mailed to the company within seven days after the date of the order. The order may be appealed within thirty days after the date of the order to the Tax Equalization and Review Commission in accordance with section 77-5013.

Source:Laws 1927, c. 174, § 1, p. 510; C.S.1929, § 77-509; R.S.1943, § 77-612; Laws 1985, LB 268, § 13;    Laws 1988, LB 352, § 153;    Laws 1995, LB 490, § 70;    Laws 1997, LB 270, § 30;    Laws 2004, LB 973, § 11;    Laws 2007, LB334, § 35;    Laws 2012, LB727, § 30.    


Annotations

77-613. Repealed. Laws 1985, LB 268, § 31.

77-614. Repealed. Laws 1985, LB 268, § 31.

77-615. Repealed. Laws 1997, LB 270, § 110.

77-616. Railroad property; levy of taxes; injunction prohibited.

No injunction shall be granted restraining the levy of taxes under the assessment made by the Property Tax Administrator.

Source:Laws 1927, c. 174, § 1, p. 511; C.S.1929, § 77-509; R.S.1943, § 77-616; Laws 1985, LB 268, § 15;    Laws 1995, LB 490, § 72.    


77-617. Repealed. Laws 1985, LB 268, § 31.

77-618. Repealed. Laws 1985, LB 268, § 31.

77-619. Repealed. Laws 1989, LB 643, § 2.

77-620. Repealed. Laws 1989, LB 643, § 2.

77-621. Railroad property; valuation; contents of report.

On or before August 10, the Property Tax Administrator shall certify to the railroad company and county assessor the railroad company's total taxable equalized value and the distribution of that value determined pursuant to section 77-604. The report of distributed value shall include:

(1) The number of miles of main track and sidetrack of each railroad located in each governmental subdivision and the total length of main track and sidetrack in the county;

(2) The assessed valuation per mile of such main track and sidetrack; and

(3) The valuations that shall be placed to the credit of such governmental subdivision in the county.

Source:Laws 1903, c. 73, § 94, p. 418; R.S.1913, § 6384; Laws 1921, c. 133, art. VI, § 10, p. 559; C.S.1922, § 5848; C.S.1929, § 77-510; R.S.1943, § 77-621; Laws 1979, LB 105, § 13;    Laws 1979, LB 103, § 5;    Laws 1985, LB 268, § 18;    Laws 1995, LB 490, § 73;    Laws 1997, LB 270, § 31;    Laws 1998, LB 306, § 18.    


77-622. Repealed. Laws 1985, LB 268, § 31.

77-623. Railroad operating property; valuation; county assessor; duties; lien.

For purposes of certifying values pursuant to section 13-509, the county assessor shall include the railroad company value as certified by the Property Tax Administrator pursuant to section 77-621. The taxes so levied shall be included upon the personal property tax roll and be due and payable in the same manner as personal property taxes pursuant to sections 77-203 and 77-204. From the date the taxes are due and payable, the taxes shall be a first lien upon the personal property of the railroad company to whom assessed until paid. The procedure for the collection of any delinquent tax pursuant to this section shall be that used for the collection of personal property tax.

Source:Laws 1903, c. 73, § 96, p. 418; R.S.1913, § 6386; Laws 1921, c. 133, art. VI, § 12, p. 559; C.S.1922, § 5850; C.S.1929, § 77-512; R.S.1943, § 77-623; Laws 1947, c. 251, § 5, p. 809; Laws 1979, LB 105, § 15;    Laws 1985, LB 268, § 19;    Laws 1995, LB 490, § 74;    Laws 1997, LB 270, § 32;    Laws 1998, LB 306, § 19;    Laws 2000, LB 968, § 36.    


77-624. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-625. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-626. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-627. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-628. Transferred to section 77-1613.01.

77-629. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-629.01. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-630. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-631. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-631.01. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-631.02. Transferred to section 77-1250.03.

77-631.03. Transferred to section 77-1250.04.

77-631.04. Transferred to section 77-1250.05.

77-632. Repealed. Laws 1986, LB 817, § 15.

77-633. Repealed. Laws 1989, First Spec. Sess., LB 7, § 11.

77-634. Repealed. Laws 1985, LB 268, § 31.

77-635. Repealed. Laws 1985, LB 268, § 31.

77-636. Repealed. Laws 1985, LB 268, § 31.

77-637. Repealed. Laws 1985, LB 268, § 31.

77-638. Repealed. Laws 1985, LB 268, § 31.

77-639. Repealed. Laws 1985, LB 268, § 31.

77-640. Repealed. Laws 1985, LB 268, § 31.

77-641. Repealed. Laws 1985, LB 268, § 31.

77-642. Repealed. Laws 1985, LB 268, § 31.

77-643. Repealed. Laws 1985, LB 268, § 31.

77-644. Repealed. Laws 1985, LB 268, § 31.

77-645. Repealed. Laws 1985, LB 268, § 31.

77-646. Repealed. Laws 1985, LB 268, § 31.

77-647. Repealed. Laws 1985, LB 268, § 31.

77-648. Repealed. Laws 1985, LB 268, § 31.

77-649. Repealed. Laws 1985, LB 268, § 31.

77-650. Repealed. Laws 1985, LB 268, § 31.

77-651. Repealed. Laws 1985, LB 268, § 31.

77-652. Repealed. Laws 1985, LB 268, § 31.

77-653. Repealed. Laws 1985, LB 268, § 31.

77-654. Repealed. Laws 1985, LB 268, § 31.

77-655. Repealed. Laws 1985, LB 268, § 31.

77-656. Repealed. Laws 1985, LB 268, § 31.

77-657. Repealed. Laws 1985, LB 268, § 31.

77-658. Repealed. Laws 1985, LB 268, § 31.

77-659. Repealed. Laws 1985, LB 268, § 31.

77-660. Repealed. Laws 1985, LB 268, § 31.

77-661. Repealed. Laws 1985, LB 268, § 31.

77-662. Repealed. Laws 1985, LB 268, § 31.

77-663. Repealed. Laws 1985, LB 268, § 31.

77-664. Repealed. Laws 1985, LB 268, § 31.

77-665. Repealed. Laws 1985, LB 268, § 31.

77-666. Repealed. Laws 1985, LB 268, § 31.

77-667. Repealed. Laws 1985, LB 268, § 31.

77-668. Repealed. Laws 1985, LB 268, § 31.

77-669. Repealed. Laws 1985, LB 268, § 31.

77-670. Repealed. Laws 1985, LB 268, § 31.

77-671. Repealed. Laws 1985, LB 268, § 31.

77-672. Repealed. Laws 1985, LB 268, § 31.

77-673. Repealed. Laws 1985, LB 268, § 31.

77-674. Repealed. Laws 1985, LB 268, § 31.

77-675. Repealed. Laws 1985, LB 268, § 31.

77-676. Repealed. Laws 1992, LB 864, § 1.

77-677. Repealed. Laws 1992, LB 864, § 1.

77-678. Repealed. Laws 1990, LB 932, § 1.

77-679. Car line company, defined.

For purposes of sections 77-680 to 77-691, car line company shall mean any person, other than a person operating a railroad, owning or operating any railroad cars through, in, or into the State of Nebraska.

Source:Laws 1992, LB 719A, § 205.    


77-680. Car line companies; annual statement.

The president or other chief officer or owner of every car line company shall, on or before June 1 of each year, furnish to the Property Tax Administrator, on forms prescribed by the Tax Commissioner, a statement showing (1) the aggregate number of miles made by each class of its cars on the several lines of railroad in this state during the preceding year ending December 31, (2) the aggregate number of miles made by each class of its cars on all railroad lines during the preceding year ending December 31, (3) the total number of each type of its cars, (4) the taxable value of its cars, and (5) the number of its cars required to make the total mileage in this state. For good cause shown, the Property Tax Administrator may allow an extension of time in which to file such statement.

Source:Laws 1992, LB 1063, § 65; Laws 1992, LB 719A, § 206;    Laws 1993, LB 734, § 47;    Laws 1995, LB 490, § 75;    Laws 2009, LB166, § 6.    


77-681. Railroad companies; annual statement.

The president or other chief officer of every railroad company which has lines running through, in, or into this state shall, on or before June 1 of each year, furnish to the Property Tax Administrator a statement, verified by the affidavit of the officer or person making the statement, showing the total number of miles traveled by each class of cars of every car line company on their lines, branches, sidings, spurs, and warehouse tracks in this state during the preceding year ending December 31. For good cause shown, the Property Tax Administrator may allow an extension of time in which to file such statement. Such extension shall not exceed thirty days after June 1.

Source:Laws 1992, LB 1063, § 66; Laws 1992, LB 719A, § 207;    Laws 1993, LB 734, § 48;    Laws 1995, LB 490, § 76;    Laws 1997, LB 270, § 33.    


77-682. Car line companies; value and assessment.

The Property Tax Administrator shall ascertain from the statements made under sections 77-680 and 77-681, or from any other information available, the number of cars of each class required to make the total mileage in this state of each car line company within the period of one year. The Property Tax Administrator shall ascertain and fix the value upon each particular class of cars which as nearly as possible shall be the taxable value of such cars, and the number so ascertained shall be assessed to the respective car line company. The method of allocation shall be determined by the Property Tax Administrator. For the purpose of making the assessment, the Property Tax Administrator may base the assessment upon the statements of the railroad companies.

Source:Laws 1992, LB 1063, § 67; Laws 1992, LB 719A, § 208;    Laws 1995, LB 490, § 77.    


77-683. Failure to furnish statement; penalty; waiver; Tax Commissioner; harmonize statements.

(1) For each day's failure to furnish the statement required by section 77-680 or 77-681 or for each day's failure to furnish the information as required on the statement, the company may be assessed a penalty in the amount of one hundred dollars, except that the penalty shall not exceed ten thousand dollars. Such penalty shall be collected by the Tax Commissioner and credited to the Department of Revenue Property Assessment Division Cash Fund. The Tax Commissioner may waive all or part of the penalty provided in this section.

(2) In determining the number of such cars, the Property Tax Administrator, insofar as may be practicable, shall harmonize the statements of the railroad companies and car line companies. Such assessment shall be included in the records of the Property Tax Administrator.

Source:Laws 1992, LB 1063, § 68; Laws 1992, LB 719A, § 209;    Laws 1995, LB 490, § 78;    Laws 1997, LB 270, § 34;    Laws 1999, LB 36, § 15;    Laws 2007, LB334, § 36.    


77-684. Tax rate; determination; collection; appeal; distribution.

The Property Tax Administrator shall, on or before January 15 each year, establish a tax rate for purposes of taxation against the taxable value as provided in sections 77-682 and 77-683 at a rate which shall be equal to the total property taxes levied in the state divided by the total taxable value of all taxable property in the state as certified pursuant to section 77-1613.01. The date when such tax rate is determined shall be deemed to be the levy date for the property. The Property Tax Administrator shall send to each car line company a statement showing the taxable value, the tax rate, and the amount of the tax and a statement that such tax is due and payable to the Property Tax Administrator on January 31 next following the levy thereof. If a car line company feels aggrieved, such company may, on or before February 15, file an appeal with the Tax Commissioner. The Tax Commissioner shall act upon the appeal and shall issue a written order mailed to the company within seven days after the date of the order. The order may be appealed within thirty days after the date of the order to the Tax Equalization and Review Commission in accordance with section 77-5013. The Property Tax Administrator shall remit the tax collected, less a three-percent collection fee, to the State Treasurer for distribution among the taxing subdivisions in proportion to all railroad taxes levied by taxing subdivisions. The collection fee shall be remitted to the State Treasurer for credit to the Department of Revenue Property Assessment Division Cash Fund.

Source:Laws 1992, LB 1063, § 69; Laws 1992, LB 719A, § 210;    Laws 1993, LB 345, § 11;    Laws 1995, LB 490, § 79;    Laws 1997, LB 270, § 35;    Laws 1999, LB 36, § 16;    Laws 2000, LB 968, § 37;    Laws 2004, LB 973, § 12;    Laws 2007, LB334, § 37.    


77-685. Distress warrant; receipt issued.

The Tax Commissioner may issue a distress warrant to compel payment of the tax required by section 77-684 which may be served by any sheriff, any member of the Nebraska State Patrol, or any person specially deputized by the Tax Commissioner to serve such warrant. At the time the tax is paid, the Tax Commissioner shall issue a receipt in duplicate, one of which shall be given to the taxpayer and one filed with the State Treasurer at the time the tax collected is remitted by the Tax Commissioner to the state treasury.

Source:Laws 1992, LB 1063, § 70; Laws 1992, Second Spec. Sess., LB 1, § 63;    Laws 1995, LB 490, § 80;    Laws 2007, LB334, § 38.    


77-686. Certification of levy.

The Property Tax Administrator, on or before January 15 of each year, shall certify to the State Treasurer the names of the car line companies and the several amounts of taxes levied under section 77-684.

Source:Laws 1992, LB 1063, § 71; Laws 1992, LB 719A, § 211;    Laws 1995, LB 490, § 81;    Laws 1998, LB 1104, § 9.    


77-687. Delinquency in payment of taxes; interest; collection by Tax Commissioner.

One-half of the taxes levied as provided in section 77-684 shall become delinquent March 1, and the second half on July 1, next following the date the tax has become due and payable. All delinquent taxes shall bear interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date they become delinquent, and the interest shall be collected in the same manner as the tax on which the interest accrues. If such taxes and interest due thereon have not been paid on July 1 following the levy thereof, the Tax Commissioner shall collect the tax and interest by distress and sale of any property belonging to such delinquent car line company in the same manner as is required of county treasurers and county sheriffs in like cases.

Source:Laws 1992, LB 1063, § 72; Laws 1992, LB 719A, § 212;    Laws 1995, LB 490, § 82;    Laws 1997, LB 270, § 36;    Laws 2007, LB334, § 39.    


77-688. Collection procedures; cumulative.

Sections 77-689 to 77-691 shall apply to car line companies taxed under sections 77-680 to 77-691, and the procedure provided in sections 77-689 to 77-691 for collection of such taxes shall be in addition to other procedures available for the collection of such taxes.

Source:Laws 1992, LB 1063, § 73; Laws 1992, LB 719A, § 213.    


77-689. Taxes; delinquent; lien; collection.

If any taxes and interest and penalties due on such taxes have not been paid on July 1 following the levy thereof, the total amount shall be a lien in favor of the State of Nebraska upon all money and credits belonging to the car line companies until the liability therefor is satisfied or otherwise released or discharged. The Tax Commissioner or his or her designated agent may collect such total amount by issuing a distress warrant and making levy upon all money and credits belonging to such car line companies. Such lien shall be filed and enforced pursuant to the Uniform State Tax Lien Registration and Enforcement Act.

Source:Laws 1992, LB 1063, § 74; Laws 1992, LB 719A, § 214;    Laws 1995, LB 490, § 83;    Laws 2007, LB334, § 40.    


Cross References

77-690. Taxation; levy; money and credits; surrender to Tax Commissioner.

Any car line company in possession of any money and credits upon which levy has been made shall, upon demand of the Tax Commissioner or his or her designated agent, surrender the same to the Tax Commissioner or his or her designated agent. If any such car line company fails or refuses to surrender the money and credits in accordance with the requirements of this section, such car line company shall be liable to the State of Nebraska in a sum equal to the value of the money and credits not so surrendered but not exceeding the amount of the taxes, interest, and penalties for the collection of which such levy has been made.

Source:Laws 1992, LB 1063, § 75; Laws 1992, LB 719A, § 215;    Laws 1995, LB 490, § 84;    Laws 2007, LB334, § 41.    


77-691. Money; disposition.

The money realized from any levy made pursuant to section 77-689 shall be first applied by the Tax Commissioner toward payment of any costs incurred by virtue of such levy and next to the payment of such taxes, interest, and penalties. Any balance remaining shall then be paid over to the car line company entitled thereto.

Source:Laws 1992, LB 1063, § 76; Laws 1992, LB 719A, § 216;    Laws 1995, LB 490, § 85;    Laws 2007, LB334, § 42.    


77-692. Repealed. Laws 1992, LB 719A, § 224.

77-693. Adjustment to value of railroad and car line property; Property Tax Administrator; powers and duties.

(1) The Property Tax Administrator in determining the taxable value of railroads and car lines shall determine the following ratios involving railroad and car line property and commercial and industrial property:

(a) The ratio of the taxable value of all commercial and industrial personal property in the state actually subjected to property tax divided by the market value of all commercial and industrial personal property in the state;

(b) The ratio of the taxable value of all commercial and industrial real property in the state actually subjected to property tax divided by the market value of all commercial and industrial real property in the state;

(c) The ratio of the taxable value of railroad personal property to the market value of railroad personal property. The numerator of the ratio shall be the taxable value of railroad personal property. The denominator of the ratio shall be the railroad system value allocated to Nebraska and multiplied by a factor representing the net book value of rail transportation personal property divided by the net book value of total rail transportation property;

(d) The ratio of the taxable value of railroad real property to the market value of railroad real property. The numerator of the ratio shall be the taxable value of railroad real property. The denominator of the ratio shall be the railroad system value allocated to Nebraska and multiplied by a factor representing the net book value of rail transportation real property divided by the net book value of total rail transportation property; and

(e) Similar calculations shall be made for car line taxable properties.

(2) If the ratio of the taxable value of railroad and car line personal or real property exceeds the ratio of the comparable taxable commercial and industrial property by more than five percent, the Property Tax Administrator may adjust the value of such railroad and car line property to the percentage of the comparable taxable commercial and industrial property pursuant to federal statute or Nebraska federal court decisions applicable thereto.

(3) For purposes of this section, commercial and industrial property shall mean all real and personal property which is devoted to commercial or industrial use other than rail transportation property and land used primarily for agricultural purposes.

(4) For tax years prior to tax year 2020, after the adjustment made pursuant to subsections (1) and (2) of this section, the Property Tax Administrator shall multiply the value of the tangible personal property of each railroad and car line by the compensating exemption factor calculated in section 77-1238.

Source:Laws 1992, LB 719A, § 219;    Laws 1995, LB 490, § 86;    Laws 2015, LB259, § 6;    Laws 2020, LB1107, § 122.    


77-701. Property assessment division; established; Property Tax Administrator; powers and duties; appeal rights.

(1) A division of state government to be known as the property assessment division of the Department of Revenue is established. The Property Tax Administrator shall be the chief administrative officer of the division but shall be under the general supervision of the Tax Commissioner.

(2) The goals and functions of the division shall be to: (a) Execute faithfully the property tax laws of the State of Nebraska; (b) provide for efficient, updated methods and systems of property tax reporting, enforcement, and related activities; and (c) continually seek to improve its system of administration.

(3) All employees, budget requirements, appropriations, encumbrances, and assets and liabilities of the Department of Property Assessment and Taxation for the administration of property valuation and equalization shall be transferred and delivered to the division. The transferred employees shall not lose any accrued benefits or status due to the transfer and shall receive the same benefits as other state employees, including participation in the State Employees Retirement Act.

(4) The Tax Commissioner or Property Tax Administrator may appeal any final decision of a county board of equalization relating to the granting or denying of an exemption of real or personal property to the Tax Equalization and Review Commission. If the Tax Commissioner or Property Tax Administrator files such an appeal, the person, corporation, or organization granted or denied the exemption by the county board of equalization shall be made a party to the appeal and shall be issued a notice of the appeal by the Tax Equalization and Review Commission within thirty days after the appeal is filed. The Tax Commissioner or Property Tax Administrator may appeal any final decision of the Tax Equalization and Review Commission relating to the granting or denying of an exemption of real or personal property or relating to the valuation or equalization of real property.

Source:Laws 1999, LB 36, § 21;    Laws 2007, LB334, § 43;    Laws 2010, LB877, § 2.    


Cross References

77-702. Property Tax Administrator; qualifications; duties.

(1) The Governor shall appoint a Property Tax Administrator with the approval of a majority of the members of the Legislature. The Property Tax Administrator shall have experience and training in the fields of taxation and property appraisal and shall meet all the qualifications required for members of the Tax Equalization and Review Commission under subsections (1) and (2) of section 77-5004.

(2) In addition to any duties, powers, or responsibilities otherwise conferred upon the Property Tax Administrator, he or she shall administer and enforce all laws related to the state supervision of local property tax administration and the central assessment of property subject to property taxation. The Property Tax Administrator shall also advise county assessors regarding the administration and assessment of taxable property within the state and measure assessment performance in order to determine the accuracy and uniformity of assessments.

Source:Laws 1999, LB 36, § 22;    Laws 2001, LB 465, § 1;    Laws 2007, LB334, § 44;    Laws 2011, LB210, § 4;    Laws 2011, LB384, § 5;    Laws 2019, LB512, § 12.    


77-703. Repealed. Laws 2007, LB 334, § 108.

77-704. Repealed. Laws 2007, LB 334, § 108.

77-705. Uniform tax books, records, and forms; approval.

The form of all schedules, books of instruction, assessment and tax books, records, and other forms which may be necessary or expedient for the proper administration of the property tax laws of the state shall be approved by the Tax Commissioner. All such schedules, forms, and documents shall be uniform throughout the several counties insofar as the same is possible and practicable. The Department of Revenue may provide forms on a reimbursement basis. Alterations to any prescribed form may be made only upon written application to and written approval from the Tax Commissioner.

Source:Laws 1999, LB 36, § 25;    Laws 2007, LB334, § 45.    


77-706. Property tax administration; implementation of agreements and working relationships; state and federal agencies.

The Department of Revenue may develop and implement such agreements and working relationships which are consistent with the laws of the State of Nebraska with any federal office, state agency, or local subdivision of state government, either within or without the State of Nebraska, which it may find necessary or desirable for proper administration of the property tax laws of this state.

Source:Laws 1999, LB 36, § 26;    Laws 2007, LB334, § 46.    


77-707. Property Tax Administrator; administer oaths; compel attendance of witnesses; production of records; rules of procedure for discovery.

(1) The Property Tax Administrator or his or her duly authorized representative may administer oaths, compel the attendance of witnesses, and require the production of records as may be necessary for the performance of his or her responsibilities under applicable state law.

(2) The Property Tax Administrator may adopt and promulgate rules of procedure for discovery, not in conflict with the laws governing discovery in civil cases, as may be necessary for the performance of his or her responsibilities under applicable state law.

Source:Laws 1999, LB 36, § 27.    


77-708. Repealed. Laws 2007, LB 334, § 108.

77-709. Property assessment division; annual report; powers and duties.

The property assessment division of the Department of Revenue shall publish an annual report detailing property tax valuations, taxes levied, and property tax rates throughout the state. The annual report shall display information by political subdivision and by property type within each county and also include statewide summarizations. The department shall submit the report electronically to the Clerk of the Legislature. The department may charge a fee for copies of the annual report. The Tax Commissioner shall set the fee, based on the reasonable cost of production.

Source:Laws 2001, LB 170, § 4;    Laws 2007, LB334, § 47;    Laws 2013, LB222, § 30.    


77-801. Public service entity; furnish information; confidentiality; Property Tax Administrator; duties.

(1) All public service entities shall, on or before April 15 of each year, furnish a statement specifying such information as may be required by the Property Tax Administrator on forms prescribed by the Tax Commissioner to determine and distribute the entity's total taxable value including the franchise value. All information reported by the public service entities, not available from any other public source, and any memorandum thereof shall be confidential and available to taxing officials only. For good cause shown, the Property Tax Administrator may allow an extension of time in which to file such statement. Such extension shall not exceed fifteen days after April 15.

(2) The returns of public service entities shall not be held to be conclusive as to the taxable value of the property, but the Property Tax Administrator shall, from all the information which he or she is able to obtain, find the taxable value of all such property, including tangible property and franchises, and shall assess such property on the same basis as other property is required to be assessed.

(3) The county assessor shall assess all nonoperating property of any public service entity. A public service entity operating within the State of Nebraska shall, on or before January 1 of each year, report to the county assessor of each county in which it has situs all nonoperating property belonging to such entity which is not subject to assessment and assessed by the Property Tax Administrator under section 77-802.

(4) For tax years prior to tax year 2020, the Property Tax Administrator shall multiply the value of the tangible personal property of each public service entity by the compensating exemption factor calculated in section 77-1238.

Source:Laws 1903, c. 73, § 68, p. 408; Laws 1903, c. 73, § 76, p. 411; Laws 1903, c. 73, § 80, p. 412; Laws 1911, c. 104, § 6, p. 373; R.S.1913, §§ 6358, 6366, 6370; Laws 1921, c. 133, art. IX, § 1, p. 586; C.S.1922, § 5890; C.S.1929, § 77-801; R.S.1943, § 77-801; Laws 1981, LB 179, § 8;    Laws 1983, LB 353, § 1;    Laws 1985, LB 269, § 2;    Laws 1995, LB 490, § 87;    Laws 1997, LB 270, § 37;    Laws 2000, LB 968, § 38;    Laws 2004, LB 973, § 13;    Laws 2009, LB166, § 7;    Laws 2015, LB259, § 7;    Laws 2020, LB1107, § 123.    


Annotations

77-801.01. Terms, defined.

As used in sections 77-801 to 77-804:

(1) Nonoperating property means property owned or leased by a public service entity that does not contribute to the entity's function;

(2) Operating property means property owned or leased that contributes to a public service entity's function; and

(3) Public service entity means any person as defined in section 49-801 or entity, organized for profit under the laws of this state or any other state or government and engaged in the business of waterworks, electrical power, gas works, natural gas, telecommunications, pipelines used for the transmission of oil, heat, steam, or any substance to be used for lighting, heating, or power, and pipelines used for the transmission of articles by pneumatic or other power and all other similar or like entities.

Source:Laws 1985, LB 269, § 1;    Laws 1986, LB 732, § 2;    Laws 1997, LB 270, § 38;    Laws 2000, LB 968, § 39;    Laws 2006, LB 808, § 26.    


77-801.02. Tax Commissioner; powers.

The Tax Commissioner shall have power to require any officer, agent, or servant of any public service entity having any portion of its property in this state to attend a hearing and to answer under oath questions regarding the property. The Tax Commissioner shall have power to issue whatever notice or process may be necessary to compel the attendance of any such person as a witness.

Source:Laws 1997, LB 270, § 39;    Laws 2007, LB334, § 48.    


77-802. Property Tax Administrator; valuation; apportionment of tax.

The Property Tax Administrator shall apportion the total taxable value including the franchise value to all taxing subdivisions in proportion to the ratio of the original cost of all operating real and tangible personal property of that public service entity having a situs in that taxing subdivision to the original cost of all operating real and tangible personal property of that public service entity having a situs in the state.

If the apportionment in accordance with this section does not fairly represent the proportion of the taxable value, including franchise value properly allocable to the county, the taxpayer may petition for or the Property Tax Administrator may require the inclusion of any other method to effectuate an equitable allocation of the value of the public service entity for purposes of taxation.

On or before July 25, the Property Tax Administrator shall mail a draft appraisal to each public service entity as defined in section 77-801.01. On or before August 10, the Property Tax Administrator shall, by mail, notify each public service entity of its taxable value and the distribution of that value to the taxing subdivisions in which the entity has situs. On or before August 10, the Property Tax Administrator shall also certify to the county assessors the taxable value so determined.

Source:Laws 1921, c. 133, art. IX, § 2, p. 587; C.S.1922, § 5891; C.S.1929, § 77-802; R.S.1943, § 77-802; Laws 1983, LB 353, § 2;    Laws 1984, LB 835, § 6;    Laws 1985, LB 269, § 3;    Laws 1987, LB 508, § 26;    Laws 1995, LB 490, § 88;    Laws 1997, LB 270, § 40;    Laws 1998, LB 306, § 20;    Laws 2004, LB 973, § 14;    Laws 2012, LB727, § 31.    


Annotations

77-802.01. County assessor; duties; lien.

For purposes of certifying values pursuant to section 13-509, the county assessor shall include the public service entity value as certified by the Property Tax Administrator pursuant to section 77-802. The taxes so levied shall be included upon the personal property tax roll and be due and payable in the same manner as personal property taxes pursuant to sections 77-203 and 77-204. From the date the taxes are due and payable, the taxes shall be a first lien upon the personal property of the public service entity to whom assessed until paid. The procedure for the collection of any delinquent tax pursuant to this section shall be that used for the collection of personal property tax.

Source:Laws 1997, LB 270, § 41;    Laws 1998, LB 306, § 21;    Laws 2000, LB 968, § 40.    


77-802.02. Public service entity; appeals.

On or before September 10, if a public service entity feels aggrieved, such public service entity may file an appeal with the Tax Commissioner. The Tax Commissioner shall act upon the appeal and shall issue a written order mailed to the entity within seven days after the date of the order. The order may be appealed within thirty days after the date of the order to the Tax Equalization and Review Commission in accordance with section 77-5013.

Source:Laws 1997, LB 270, § 42;    Laws 2000, LB 968, § 41;    Laws 2004, LB 973, § 15;    Laws 2007, LB334, § 49.    


77-803. Public service entity; failure to furnish statement or information; penalty; waiver.

For each day's failure to furnish the statement required by section 77-801 or for each day's failure to furnish the information as required on those statements, the public service entity may be assessed a penalty in the amount of one hundred dollars, except that the penalty shall not exceed ten thousand dollars. Such penalty shall be collected by the Tax Commissioner and credited to the Department of Revenue Property Assessment Division Cash Fund. The Tax Commissioner, in his or her discretion, may waive all or part of the penalty provided in this section.

Source:Laws 1903, c. 73, § 77, p. 411; Laws 1903, c. 73, § 81, p. 412; Laws 1911, c. 104, § 9, p. 375; R.S.1913, §§ 6367, 6371; Laws 1921, c. 133, art. IX, § 3, p. 587; C.S.1922, § 5892; C.S.1929, § 77-803; R.S.1943, § 77-803; Laws 1986, LB 732, § 3;    Laws 1986, LB 817, § 6;    Laws 1995, LB 490, § 89;    Laws 1997, LB 270, § 43;    Laws 1999, LB 36, § 17;    Laws 2007, LB334, § 50.    


77-804. Sale of entity; report required; penalty; waiver.

Any sale of a public service entity as defined in section 77-801.01 shall be reported by the purchaser to the Property Tax Administrator within thirty days from the date of the sale. The purchaser shall identify the seller, the date of the sale, any change in name of the entity, and the purchase price of the entity. If additional information regarding the sale is needed by the Property Tax Administrator, a specific written request shall be made. For each day's failure to furnish the information, an entity may be assessed a penalty in the amount of one hundred dollars, except that the penalty shall not exceed ten thousand dollars. Such penalty shall be collected by the Tax Commissioner and credited to the Department of Revenue Property Assessment Division Cash Fund. The Tax Commissioner may waive all or part of the penalty provided in this section.

Source:Laws 1987, LB 508, § 27;    Laws 1995, LB 490, § 90;    Laws 1997, LB 270, § 44;    Laws 1999, LB 36, § 18;    Laws 2007, LB334, § 51.    


77-901. Repealed. Laws 1951, c. 256, § 9.

77-902. Repealed. Laws 1951, c. 256, § 9.

77-903. Repealed. Laws 1951, c. 256, § 9.

77-904. Repealed. Laws 1951, c. 256, § 9.

77-905. Repealed. Laws 1951, c. 256, § 9.

77-906. Repealed. Laws 1951, c. 256, § 9.

77-907. Terms, defined.

As used in Chapter 77, article 9, unless the context otherwise requires:

(1) Domestic, foreign, and alien insurance companies shall have the meanings as set forth in section 44-103 and shall include reciprocal or interinsurance exchanges and their designated attorneys in fact as defined in Chapter 44, article 12;

(2) Department shall mean the Department of Insurance;

(3) Director shall mean the Director of Insurance;

(4) Premiums shall mean the consideration paid to insurance companies for insurance and shall include policy fees, assessments, dues, or other similar payments, except that premiums on all annuity contracts and pension, profit-sharing, individually sponsored retirement plans, and other pension plan contracts which are described in section 818(a) of the Internal Revenue Code shall be exempt from taxation;

(5) License shall mean certificate of authority as contemplated by section 44-105; and

(6) Direct writing shall mean insurance as defined in section 44-102, but shall not include reinsurance as defined in section 44-103.

Source:Laws 1951, c. 256, § 1, p. 878; Laws 1965, c. 468, § 2, p. 1514; Laws 1980, LB 905, § 1; Laws 1986, LB 1114, § 9;    Laws 1988, LB 855, § 4;    Laws 1995, LB 574, § 65.    


Annotations

77-908. Insurance companies; tax on gross premiums; rate; exceptions.

Every insurance company organized under the stock, mutual, assessment, or reciprocal plan, except fraternal benefit societies, which is transacting business in this state shall, on or before March 1 of each year, pay a tax to the director of one percent of the gross amount of direct writing premiums received by it during the preceding calendar year for business done in this state, except that (1) for group sickness and accident insurance the rate of such tax shall be five-tenths of one percent and (2) for property and casualty insurance, excluding individual sickness and accident insurance, the rate of such tax shall be one percent. A captive insurer authorized under the Captive Insurers Act that is transacting business in this state shall, on or before March 1 of each year, pay to the director a tax of one-fourth of one percent of the gross amount of direct writing premiums received by such insurer during the preceding calendar year for business transacted in the state. The taxable premiums shall include premiums paid on the lives of persons residing in this state and premiums paid for risks located in this state whether the insurance was written in this state or not, including that portion of a group premium paid which represents the premium for insurance on Nebraska residents or risks located in Nebraska included within the group when the number of lives in the group exceeds five hundred. The tax shall also apply to premiums received by domestic companies for insurance written on individuals residing outside this state or risks located outside this state if no comparable tax is paid by the direct writing domestic company to any other appropriate taxing authority. Companies whose scheme of operation contemplates the return of a portion of premiums to policyholders, without such policyholders being claimants under the terms of their policies, may deduct such return premiums or dividends from their gross premiums for the purpose of tax calculations. Any such insurance company shall receive a credit on the tax imposed as provided in the Community Development Assistance Act, the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the Nebraska Higher Blend Tax Credit Act, and the Affordable Housing Tax Credit Act.

Source:Laws 1951, c. 256, § 2, p. 878; Laws 1984, LB 372, § 13;    Laws 1986, LB 1114, § 10;    Laws 1989, LB 92, § 275;    Laws 1992, LB 1063, § 91; Laws 1992, Second Spec. Sess., LB 1, § 64;    Laws 2001, LB 433, § 1;    Laws 2002, Second Spec. Sess., LB 9, § 3;    Laws 2006, LB 1248, § 83;    Laws 2007, LB117, § 53;    Laws 2007, LB367, § 5;    Laws 2010, LB698, § 3;    Laws 2012, LB1128, § 21;    Laws 2014, LB191, § 15;    Laws 2016, LB884, § 18;    Laws 2022, LB1261, § 9.    


Cross References

Annotations

77-909. Repealed. Laws 1986, LB 1114, § 23.

77-910. Computation of tax; forms; department furnish; audit of returns; erroneous payment; refund; limitation.

(1) The computation of the taxes as provided in Chapter 77, article 9, shall be made on forms furnished by the Department of Insurance and shall be forwarded to the department together with a sworn statement by an appropriate fiscal officer of the company attesting the accuracy of the tax computation. The department shall furnish such forms to the companies together with any information relative to the taxes as may be needful or desirable. Upon receipt of the tax payment, the director shall audit and examine the computations and satisfy himself or herself that the taxes have been properly paid in conformity with Chapter 77, article 9.

(2) Commencing with taxes imposed for 1985 or any subsequent year, whenever it appears to the satisfaction of the director that, because of a mistake of fact, error in calculation, or erroneous interpretation of a statute not pertaining to the statute's constitutionality, any tax has been erroneously paid to the director, he or she shall have the authority to refund or credit the amount of such erroneous overpayment. The refund or credit may be made by applying such amount towards the payment of other similar taxes already due or which may become due until such overpayment has been fully reimbursed. A claim for refund or credit of an overpayment of a tax caused by a mistake of fact, error in calculation, or erroneous interpretation of a statute not pertaining to the statute's constitutionality shall be filed by the taxpayer within one year from the date the overpayment was made or such claim shall be forever barred.

Source:Laws 1951, c. 256, § 4, p. 879; Laws 1986, LB 1114, § 11.    


77-911. Tax; failure to remit; license rescinded; notice; hearing; appeal.

The director shall rescind or refuse to reissue the license of any company which fails to remit its taxes in conformity with Chapter 77, article 9. Prior to rescinding such license, the director shall issue an order to such company directing the company to show cause why such rescission should not be made. He or she shall in the order give not less than ten days' notice for a hearing before the department. Should the company be aggrieved by such determination, the company may appeal the determination, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1951, c. 256, § 5, p. 879; Laws 1969, c. 661, § 1, p. 2580; Laws 1986, LB 1114, § 12;    Laws 1988, LB 352, § 154.    


Cross References

77-912. Tax; Director of Insurance; disposition; exceptions.

The Director of Insurance shall transmit fifty percent of the taxes paid in conformity with Chapter 44, article 1, and Chapter 77, article 9, to the State Treasurer, forty percent of such taxes paid to the General Fund, and ten percent of such taxes paid to the Mutual Finance Assistance Fund promptly upon completion of his or her audit and examination and in no event later than May 1 of each year, except that:

(1) All fire insurance taxes paid pursuant to sections 44-150 and 81-523 shall be remitted to the State Treasurer for credit to the General Fund;

(2) All workers' compensation insurance taxes paid pursuant to section 44-150 shall be remitted to the State Treasurer for credit to the Compensation Court Cash Fund; and

(3) Commencing with the premium and related retaliatory taxes for the taxable year ending December 31, 2001, and for each taxable year thereafter, all premium and related retaliatory taxes imposed by section 44-150 or 77-908 paid by insurers writing health insurance in this state shall be remitted to the Comprehensive Health Insurance Pool Distributive Fund.

Source:Laws 1951, c. 256, § 6, p. 880; Laws 1986, LB 1114, § 13;    Laws 1987, LB 302, § 8;    Laws 1993, LB 757, § 35;    Laws 1996, LB 693, § 8;    Laws 1998, LB 1120, § 27;    Laws 1999, LB 113, § 3;    Laws 2000, LB 1253, § 44;    Laws 2002, Second Spec. Sess., LB 9, § 4;    Laws 2003, LB 408, § 3;    Laws 2006, LB 1248, § 84;    Laws 2007, LB296, § 702;    Laws 2010, LB698, § 4.    


77-913. Insurance Tax Fund; created; use; investment; allocation.

The Insurance Tax Fund is created. The State Treasurer shall receive the funds paid pursuant to Chapter 77, article 9, and except as provided in sections 77-912 and 77-918 shall keep all money received in the Insurance Tax Fund. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Prior to June 1 of each year, the State Treasurer shall disburse or allocate all of the funds in the Insurance Tax Fund on May 1 of each year as follows:

(1) Ten percent of the total shall be allocated to the counties proportionately in the proportion that the population of each county bears to the entire state, as shown by the last federal decennial census;

(2) Thirty percent of the total shall be allocated to the Municipal Equalization Fund; and

(3) Sixty percent of the total shall be allocated to the State Department of Education for distribution to school districts as equalization aid pursuant to the Tax Equity and Educational Opportunities Support Act as follows: The Commissioner of Education shall (a) include the amount certified by the State Treasurer pursuant to this section in the state aid certified to each school district pursuant to section 79-1022 and (b) distribute such funds as equalization aid under the provisions of the act during the ensuing fiscal year.

Source:Laws 1951, c. 256, § 7, p. 880; Laws 1986, LB 1114, § 18;    Laws 1990, LB 1090, § 1;    Laws 1996, LB 1050, § 1;    Laws 1996, LB 1177, § 17;    Laws 1997, LB 269, § 36;    Laws 1999, LB 113, § 4;    Laws 2003, LB 8, § 1;    Laws 2023, LB818, § 21.    
Effective Date: May 25, 2023


Cross References

77-914. Repealed. Laws 1986, LB 1114, § 23.

77-915. Tax; challenge to constitutionality; tax paid under protest; credit refund.

(1) Commencing with taxes imposed for 1985 or any subsequent year, if a taxpayer believes any tax imposed pursuant to Chapter 77, article 9, is unconstitutional and chooses to challenge such tax, the taxpayer shall pay the tax under protest and, within thirty days after payment or within thirty days after March 15, 1986, whichever is later, initiate a court challenge to the tax in the district court of Lancaster County, which challenge shall be heard by the district court de novo.

(2) If, by judgment or final order of any court of competent jurisdiction in this state in an action not pending on appeal or error, it is adjudged and determined that such taxes are unconstitutional, such taxes shall be refunded only by applying such refund as a credit against the payment of any such tax falling due thereafter unless special circumstances, as determined by the director, require a refund.

Source:Laws 1986, LB 1114, § 14.    


77-916. Tax; no injunction allowed.

No injunction shall be granted restraining the collection of taxes levied pursuant to Chapter 77, article 9. The provisions of section 77-915 shall be the exclusive remedy available to the taxpayer.

Source:Laws 1986, LB 1114, § 15.    


77-917. Political subdivision; return of funds not required.

Any political subdivision which has received funds pursuant to section 77-913 shall not be required to return any funds received pursuant to such section resulting from a final order or judgment of a court that such tax is unconstitutional.

Source:Laws 1986, LB 1114, § 16.    


77-918. Prepayment of tax; when due; Premium and Retaliatory Tax Suspense Fund; created; investment.

Insurers transacting insurance in this state whose annual tax for the preceding taxable year was four thousand dollars or more shall make prepayments of the annual taxes imposed pursuant to Chapter 77, article 9, and related retaliatory taxes imposed pursuant to Chapter 44, article 1.

Each insurer required to make prepayments shall remit such prepayments on or before April 15, June 15, and September 15 of the current taxable year. Remittance for such prepayments shall be accompanied by a prepayment form prescribed by the director.

The amount of each such prepayment shall be at least one-fourth of either (1) the total tax paid for the immediately preceding taxable year or (2) eighty percent of the actual tax due for the current taxable year.

The director, for good cause shown, may extend for not more than ten days the time for making a prepayment. The extension may be granted at any time if a request for such extension is filed with the director within or prior to the period for which the extension may be granted. Insurers who fail to pay any premium or retaliatory tax, including prepayments, when due shall pay interest at the rate prescribed by section 45-104.02, as such rate may from time to time be adjusted, until such tax is paid. Any insurer who fails to make the prepayments within the prescribed time period or to obtain an extension shall be subject to the penalties prescribed in section 77-911.

The director shall immediately deposit one-half of the prepayments received in the Premium and Retaliatory Tax Suspense Fund, which fund is hereby created, and one-half of the prepayments received in the General Fund. Commencing with the premium and related retaliatory taxes for the taxable year ending December 31, 2001, and for each taxable year thereafter, the director shall determine the amount of the premium and related retaliatory taxes imposed by section 44-150 or 77-908 paid by insurers writing health insurance in this state, except as otherwise set forth in subdivisions (1) and (2) of section 77-912, and such amount shall be credited to the Comprehensive Health Insurance Pool Distributive Fund. Except as provided in subsection (5) of section 44-4225, on May 1 of each year the director shall transfer all of the interest earned in the Premium and Retaliatory Tax Suspense Fund on the immediately preceding year's prepayments to the General Fund and transfer the balance of the preceding year's prepayments deposited in the Premium and Retaliatory Tax Suspense Fund to the Insurance Tax Fund. Any money in the Premium and Retaliatory Tax Suspense Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1986, LB 1114, § 17;    Laws 1992, Fourth Spec. Sess., LB 1, § 14;    Laws 1994, LB 1066, § 81;    Laws 2000, LB 1253, § 45;    Laws 2011, LB73, § 7.    


Cross References

77-1001. Act, how cited.

Sections 77-1001 to 77-1035 shall be known and may be cited as the Nebraska Advantage Transformational Tourism and Redevelopment Act.

Source:Laws 2010, LB1018, § 1.    


77-1002. Legislative findings and declarations.

The Legislature hereby finds and declares that it is the policy of this state to utilize Nebraska's tax structure in order to encourage new businesses to relocate to Nebraska as a component of a program to develop new tourism attractions as well as to redevelop areas of municipalities which are suffering the effects of age. In addition, the policy of this state is to promote the creation and retention of new jobs in Nebraska and attract and retain Nebraska's best and brightest young people.

Source:Laws 2010, LB1018, § 2.    


77-1003. Definitions, where found.

For purposes of the Nebraska Advantage Transformational Tourism and Redevelopment Act, the definitions found in sections 77-1004 to 77-1027 shall be used.

Source:Laws 2010, LB1018, § 3.    


77-1004. Tax terms, meaning.

Any term shall have the same meaning as used in Chapter 77, article 27.

Source:Laws 2010, LB1018, § 4.    


77-1005. Approved cost, defined.

Approved cost means:

(1) Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, delivery persons, and material suppliers in connection with the acquisition, construction, equipping, and installation of a project;

(2) The cost of acquiring real property or rights in real property and any cost incidental thereto;

(3) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of the acquisition, construction, equipping, and installation of a project which is not paid by the vendor, supplier, delivery person, or contractor or otherwise provided;

(4) The cost of architectural and engineering services, including, but not limited to, estimates, plans, specifications, preliminary investigations, and supervision of construction and installation, as well as for the performance of all the duties required by or consequent to the acquisition, construction, equipping, and installation of a project;

(5) The cost required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of a project;

(6) The cost required for the installation of utilities, including, but not limited to: Water; sewer; sewer treatment; gas; electricity; and communications, including offsite construction of facilities paid for by the project owner; and

(7) All other costs comparable with those described in this section.

Source:Laws 2010, LB1018, § 5.    


77-1006. Approved project, defined.

Approved project means any project that is certified by a municipality under the Nebraska Advantage Transformational Tourism and Redevelopment Act.

Source:Laws 2010, LB1018, § 6.    


77-1007. Cultural development, defined.

Cultural development means a real estate development with a primary purpose of promoting cultural education or development, such as a museum or related visual arts centers, performing arts facility, or facilities housing, incubating, developing, or promoting art, music, theater, dance, zoology, botany, natural history, cultural history, or the sciences.

Source:Laws 2010, LB1018, § 7.    


77-1008. Destination dining, defined.

Destination dining means a real estate development primarily selling and serving prepared food and beverage to the public in a setting with sit-down dining. In addition, the development must offer a unique food or experience concept not found in this state within (1) the same metropolitan statistical area as determined by the United States Office of Management and Budget and (2) a fifty-mile radius of the development.

Source:Laws 2010, LB1018, § 8.    


77-1009. Entertainment destination center, defined.

Entertainment destination center means a facility containing a minimum of two hundred thousand square feet of gross leasable area adjacent or complementary to an existing tourism attraction, an approved tourism development project, or a convention facility, and which provides a variety of entertainment and leisure options that contain at least six full-service restaurants and at least three additional entertainment venues, including, but not limited to, live entertainment, multiplex theaters, large-format theaters, motion simulators, family entertainment centers, concert halls, virtual reality or other interactive games, museums, exhibitions, or other cultural and leisure-time activities. Entertainment, food, and drink options and adjacent lodging shall occupy a minimum of sixty percent of the total gross area. Other retail stores shall occupy no more than forty percent of the total gross area.

Source:Laws 2010, LB1018, § 9.    


77-1010. Entitlement period, defined.

Entitlement period means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the ninth year following the year of application.

Source:Laws 2010, LB1018, § 10.    


77-1011. Full-service restaurant, defined.

Full-service restaurant means any public place (1) which is kept, used, maintained, advertised, and held out to the public as a place where meals are served and where meals are actually and regularly served, (2) which has no sleeping accommodations, (3) which has adequate and sanitary kitchen and dining room equipment and capacity and a sufficient number and kind of employees to prepare, cook, and serve suitable food for its guests to consume on premise, and (4) which has wait staff and table service with an average per-table bill of at least fifteen dollars.

Source:Laws 2010, LB1018, § 11.    


77-1012. Historical redevelopment, defined.

Historical redevelopment means a real estate development project that redevelops a historic building, as listed on either the National Register of Historic Places or the Nebraska Historic Buildings Survey. The reuse of the historic building can be any approved use, including retail for an entertainment destination center or a mixed-use project.

Source:Laws 2010, LB1018, § 12.    


77-1013. Investment, defined.

Investment means the value of qualified property incorporated into or used at the project. For qualified property owned by the taxpayer, the value shall be the original cost of the property. Investment does not include real property for a tourism development project.

Source:Laws 2010, LB1018, § 13.    


77-1014. Lodging, defined.

(1) Lodging means any lodging facility with the following attributes:

(a) The facility constitutes a portion of an approved project and represents less than fifty percent of the total approved cost of the tourism attraction project, or the facility is to be located on recreational property owned or leased by the state or the federal government and has received prior approval from the appropriate state or federal agency;

(b) The facility utilizes a historical redevelopment; or

(c) The facility involves the construction, reconstruction, restoration, rehabilitation, or upgrade of a full-service lodging facility having not less than two hundred fifty guestrooms, with reconstruction, restoration, rehabilitation, or upgrade costs exceeding the minimum. The hotel facilities or attached conference facility must also include a minimum of fifteen thousand square feet of net function space, including exhibit space, ballrooms, meeting rooms, or lecture halls.

(2) Lodging includes a lodging facility constructed as part of a development prior to the construction of retail development or a tourism attraction under the Nebraska Advantage Transformational Tourism and Redevelopment Act.

Source:Laws 2010, LB1018, § 14.    


77-1015. Mixed-use project, defined.

Mixed-use project means a facility containing a minimum of fifty thousand square feet. The project must include at least two vertical stories of usable or leasable space and contain a minimum of two uses, such as restaurant, office, retail, or residential, not including parking. Retail stores shall occupy no more than forty percent of the total gross usable area.

Source:Laws 2010, LB1018, § 15.    


77-1016. Nebraska crafts and products center, defined.

Nebraska crafts and products center means a real estate retail development primarily selling products created, grown, or assembled in Nebraska. Nebraska crafts and products must constitute a minimum of fifty percent of the total sales volume of the development.

Source:Laws 2010, LB1018, § 16.    


77-1017. Project, defined.

Project means the acquisition, including the acquisition of real estate by a leasehold interest with a minimum term of ten years, construction, and equipping of a tourism attraction or redevelopment project; the construction and installation of improvements to facilities necessary or desirable for the acquisition, construction, and installation of a tourism attraction or redevelopment project, including, but not limited to, surveys; installation of utilities which may include water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; and offsite construction of utility extensions to the boundaries of the real estate on which the facilities are located, all of which are to be used to improve the economic situation of the approved company in a manner that allows the approved company to attract persons.

Source:Laws 2010, LB1018, § 17.    


77-1018. Qualified business, defined.

(1) For a tourism development project, qualified business means any business engaged in:

(a) Cultural development;

(b) Historical redevelopment;

(c) Recreation facilities;

(d) Entertainment destination centers;

(e) Lodging;

(f) Destination dining;

(g) Tourism attraction;

(h) Nebraska crafts and products center; or

(i) Any combination of the activities listed in this subsection.

(2) For a redevelopment project, qualified business means any business engaged in:

(a) Cultural development;

(b) Historical redevelopment;

(c) Recreation facilities;

(d) Entertainment destination centers;

(e) Mixed-use projects;

(f) Lodging;

(g) Full-service restaurants or destination dining;

(h) Residential development;

(i) Retail development;

(j) Structured parking;

(k) Tourism attraction;

(l) Nebraska crafts and products center; or

(m) Any combination of the activities listed in this subsection.

Source:Laws 2010, LB1018, § 18.    


77-1019. Qualified property, defined.

(1) Qualified property means any tangible property of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property, that will be located and used at the project.

(2) Qualified property does not include (a) aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or (b) property that is rented by the taxpayer qualifying under the Nebraska Advantage Transformational Tourism and Redevelopment Act to another person.

Source:Laws 2010, LB1018, § 19.    


77-1020. Recreation facility, defined.

Recreation facility means any real estate project with a primary purpose of promoting and hosting sports or recreation activities, including sports facilities, golf courses, beaches, parks, water parks, amusement parks, and related support amenities.

Source:Laws 2010, LB1018, § 20.    


77-1021. Redevelopment project, defined.

Redevelopment project means a project proposed on a parcel or parcels previously developed with real property improvements. Current usage cannot include agriculture or livestock. The redevelopment project must be within the municipal limits of a municipality. The existing improvements must be more than ten years old or have been demolished prior to application.

Source:Laws 2010, LB1018, § 21.    


77-1022. Related persons, defined.

Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under either section 267(b) and (c) or section 707(b) of the Internal Revenue Code of 1986, as amended.

Source:Laws 2010, LB1018, § 22.    


77-1023. Structured parking, defined.

Structured parking means a real estate development used primarily as a covered parking facility for automobiles or related personal vehicles. The parking facility must have a minimum of two levels of parking above or below ground.

Source:Laws 2010, LB1018, § 23.    


77-1024. Taxpayer, defined.

(1) Taxpayer means any person subject to sales and use taxes under the Nebraska Revenue Act of 1967 and subject to withholding under section 77-2753 and any corporation, partnership, limited liability company, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, that is subject to such sales and use taxes or such withholding.

(2) Taxpayer does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended, or any partnership, limited liability company, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture in which political subdivisions or organizations described in section 501(c) or (d) of the Internal Revenue Code of 1986, as amended, hold an ownership interest of ten percent or more.

Source:Laws 2010, LB1018, § 24.    


Cross References

77-1025. Tourism attraction, defined.

Tourism attraction means a place of interest where tourists visit, typically for the inherent or exhibited cultural value, historical significance, natural or built beauty, or amusement opportunities, such as historical places, monuments, zoos, aquaria, museums, art galleries, botanical gardens, skyscrapers, parks, forests, natural recreation areas, theme parks, ethnic enclaves, historic transportation, and landmarks.

Source:Laws 2010, LB1018, § 25.    


77-1026. Year, defined.

Year means the taxable year of the taxpayer.

Source:Laws 2010, LB1018, § 26.    


77-1027. Year of application, defined.

Year of application means the year that a completed application is filed under the Nebraska Advantage Transformational Tourism and Redevelopment Act.

Source:Laws 2010, LB1018, § 27.    


77-1028. Election required; procedures applicable.

The powers granted by the Nebraska Advantage Transformational Tourism and Redevelopment Act shall not be exercised unless and until the question of directing the proceeds of the local option sales tax as authorized under the act has been submitted at a primary, general, or special election held within the municipality and in which all registered voters are entitled to vote on such question. The officials of the municipality shall order the submission of the question by submitting a certified copy of the resolution proposing the tax to the election commissioner or county clerk. The question may include any terms and conditions set forth in the resolution, such as a termination date, and shall include the following language: Shall the municipality direct the local option sales tax collected within an area defined by the municipality to require redevelopment or as a tourism development project for the benefit of that area? If a majority of the votes cast upon the question are in favor, the governing body may so direct the tax. If a majority of those voting on the question are opposed, the governing body shall not so direct the tax. Once approved, the municipality may exercise the powers granted by the act for a period of ten years. Any election under this section shall be conducted in accordance with the procedures provided in the Election Act.

Source:Laws 2010, LB1018, § 28.    


Cross References

77-1029. Verification of work eligibility status.

A municipality shall not approve or grant to any person any incentive under the Nebraska Advantage Transformational Tourism and Redevelopment Act unless the taxpayer provides evidence satisfactory to the municipality that the taxpayer electronically verified the work eligibility status of all newly hired employees employed in Nebraska.

Source:Laws 2010, LB1018, § 29.    


77-1030. Application; form; contents; confidentiality; fee; municipality; duties; certification; written agreement; contents; modification.

(1) In order to utilize the incentives set forth in the Nebraska Advantage Transformational Tourism and Redevelopment Act, the taxpayer shall file an application, on a form developed by an association of municipalities organized statewide, requesting an agreement.

(2) The application shall contain:

(a) A written statement describing the plan of employment and investment for a qualified business in this state;

(b) Sufficient documents, plans, and specifications as required by the municipality to support the plan and to define a project and a feasibility study. The plans shall include evidence that demonstrates that the project is feasible only with the incentives provided by the act;

(c) A nonrefundable application fee of two thousand five hundred dollars; and

(d) A timetable showing the expected local option sales tax refunds and what year they are expected to be claimed.

The application and all supporting information shall be confidential except for the name of the taxpayer, the location of the project, and the amounts of increased employment and investment.

(3) An application must be complete to establish the date of the application. An application shall be considered complete once it contains the items listed in subsection (2) of this section, regardless of the municipality's additional needs pertaining to information or clarification in order to approve or not approve the application.

(4) The municipality shall conduct an internal review of the feasibility study. If the municipality determines that the feasibility study demonstrates that the project can meet the requirements of the act, then the municipality shall conduct its own study with an independent third party, the cost of which shall be paid in full by the applicant. The cost of the study required under this subsection shall be in addition to the fee required under subsection (2) of this section. The purpose of the study is to verify or nullify the results of the feasibility study provided by the applicant. Additionally, the study shall examine the ability of the applicant to meet the requirements of the act. The study shall make a recommendation to the municipality on whether to proceed with the project or not.

(5) Once satisfied that the plan in the application defines a project consistent with the purposes stated in the Nebraska Advantage Transformational Tourism and Redevelopment Act in one or more qualified business activities within this state, that the taxpayer and the plan will qualify for incentives under the act, and that the required levels of employment and investment for the project will be met prior to the end of the fourth year after the year in which the application was submitted, the municipality shall certify the application. Certification shall require approval by a majority vote by the members of the governing body of the municipality. A municipality shall notify the Department of Revenue of any application certified under this section on or before January 1 immediately following such certification. For any application certified under this section prior to July 18, 2014, the certifying municipality shall notify the Department of Revenue of such application on or before January 1, 2015.

(6) After certification, the taxpayer and the municipality shall enter into a written agreement. The taxpayer shall agree to complete the project, and the municipality shall designate the approved plan of the taxpayer as a project and, in consideration of the taxpayer's agreement, agree to allow the taxpayer to use the incentives contained in the Nebraska Advantage Transformational Tourism and Redevelopment Act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The levels of employment and investment required by the act for the project;

(b) The time period under the act in which the required levels must be met;

(c) The documentation the taxpayer will need to supply when claiming an incentive under the act;

(d) The date the application was filed; and

(e) A requirement that the company update the municipality annually on any changes in plans or circumstances which affect the timetable of local option sales tax refunds as set out in the application. If the company fails to comply with this requirement, the municipality may defer any pending local option sales tax refunds until the company does comply.

(7) A taxpayer and a municipality may enter into agreements for more than one project and may include more than one project in a single agreement. The projects may be either sequential or concurrent. A project may involve the same location as another project. No new employment or new investment shall be included in more than one project for either the meeting of the employment or investment requirements or the creation of incentives. When projects overlap and the plans do not clearly specify, then the taxpayer shall specify in which project the employment or investment belongs.

(8) The taxpayer may request that an agreement be modified if the modification is consistent with the purposes of the act and does not require a change in the description of the project. Once satisfied that the modification to the agreement is consistent with the purposes stated in the act, the municipality and taxpayer may amend the agreement.

(9) The agreement shall include performance-based metrics to insure compliance with the act.

Source:Laws 2010, LB1018, § 30;    Laws 2014, LB851, § 8.    


77-1031. Incentives; tiers; project requirements; refund of taxes.

(1) Applicants may qualify for incentives under the Nebraska Advantage Transformational Tourism and Redevelopment Act as follows:

(a)(i) Tourism development project, investment in qualified property as required by this subdivision and a net employment increase to the state. Net employment from the project shall be determined at stabilization of the project, typically by the third year, and shall include any lost jobs from semi-competitive venues.

(ii) The investment requirement for a tourism development project is as follows:

(A) Tier 1, fifty million dollars exclusive of land for a project located in a municipality within a county in which the net taxable sales in the preceding calendar year were at least nine hundred million dollars or a municipality within a county bordered by two counties in which the total net taxable sales in the preceding calendar year were at least nine hundred million dollars;

(B) Tier 2, thirty million dollars exclusive of land for a project in a municipality within a county in which the net taxable sales in the preceding calendar year were at least two hundred million dollars but less than nine hundred million dollars;

(C) Tier 3, twenty million dollars exclusive of land for a project in a municipality within a county in which the net taxable sales in the preceding calendar year were at least one hundred million dollars but less than two hundred million dollars; and

(D) Tier 4, ten million dollars exclusive of land for a project in a municipality within a county in which the net taxable sales in the preceding calendar year were less than one hundred million dollars.

(iii) All complete project applications shall be considered by the municipality and certified if the project and taxpayer qualify for incentives. Agreements may be executed with regard to completed project applications. A tourism development project shall be unique and not duplicate any other qualified business in this state within (A) the same metropolitan statistical area as determined by the United States Office of Management and Budget and (B) a fifty-mile radius of the project; and

(b) Redevelopment project, investment in qualified property of at least ten million dollars and a net employment increase to the state, except that for a redevelopment project in a municipality within a county in which the net taxable sales in the preceding calendar year were less than one hundred million dollars, the requirements shall be investment in qualified property of at least seven million five hundred thousand dollars and a net employment increase to the state. Net employment from the project shall be determined by comparing the impact of the project to the impact of not having the project. Agreements may be executed with regard to completed project applications.

(2) In addition to the requirements of subsection (1) of this section:

(a) The project shall be open at least one hundred fifty days each calendar year;

(b) The applicant shall demonstrate that the project is not feasible but for the incentives provided under the act; and

(c) The applicant shall demonstrate that the project has conditional financing prior to completion of the application and final approval of financing before final approval of the application by the municipality.

(3) When the taxpayer has met the requirements contained in the agreement for the project, the taxpayer shall be entitled to the following incentives:

(a) A refund of local option sales tax up to a rate of one and one-half percent from the date of the application through the meeting of the requirements contained in the agreement for the project for all purchases, including rentals, of:

(i) Qualified property used as a part of the project;

(ii) Property, excluding motor vehicles, based in this state and used in both this state and another state in connection with the project except when any such property is to be used for fundraising for or for the transportation of an elected official;

(iii) Tangible personal property by the owner of the improvement to real estate that is incorporated into real estate as a part of a project; and

(iv) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the owner of the improvement to real estate;

(b) Except as provided in subdivision (c) of this subsection for redevelopment projects, a refund of local option sales tax up to a rate of one and one-half percent paid on all types of purchases on which the local option sales tax is levied within the boundaries of the project during each year of the entitlement period in which the taxpayer meets the requirements contained in the agreement for the project; and

(c) For a redevelopment project, if the taxpayer has been collecting local option sales tax for more than twenty-four months prior to completion of the project, a refund of the increase in local option sales tax revenue collected by the taxpayer within the boundaries of the project each calendar year after the completion of the project.

Source:Laws 2010, LB1018, § 31.    


77-1032. Department of Revenue; duties; review of projects; recapture of incentives; Nebraska Advantage Transformational Tourism and Redevelopment Act Cash Fund; created; use; investment.

(1) The Department of Revenue shall contract with an independent consultant to review each project under the Nebraska Advantage Transformational Tourism and Redevelopment Act every fifth year following July 15, 2010. The review shall be paid for by each project owner. The review shall examine patronage from outside the metropolitan statistical area as defined by the United States Office of Management and Budget in which the project is located, sales data, and employment records to determine the project owner's continued compliance with the provisions of the act. The project owner shall comply with the provisions of this subsection or be subject to the recapture provisions of this section. If it is determined that the project owner was not in compliance, the municipality may recapture all or a portion of the incentives provided under the act.

(2) If the taxpayer fails to meet the requirements contained in the agreement for the project either by the end of the fourth year after the end of the year the application was submitted or for the entire entitlement period, all or a portion of the incentives provided under the act shall be recaptured on behalf of the municipality.

(3) Notwithstanding any other limitations contained in the laws of this state, collection of any taxes deemed to be underpayments by this section shall be allowed for a period of four years after the end of the entitlement period.

(4) Any amounts due under this section shall be recaptured notwithstanding other allowable incentives and shall not be subsequently refunded under any provision of the act unless the recapture was in error.

(5) The recapture required by this section shall not occur if (a) the failure to maintain the required levels of employment or investment was caused by an act of God or national emergency or (b) the cost of recapture would exceed the amount to be recaptured in the opinion of the municipality.

(6) The Nebraska Advantage Transformational Tourism and Redevelopment Act Cash Fund is created. The fund shall be used by the department to carry out its duties under this section. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 2010, LB1018, § 32.    


Cross References

77-1033. Transfer of incentives; when; liability for recapture.

(1) The incentives allowed under the Nebraska Advantage Transformational Tourism and Redevelopment Act may be transferred when a project covered by an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended.

(2) The acquiring taxpayer, as of the date of notification of the municipality of the completed transfer, shall be entitled to any future incentives allowable under the act.

(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer for the repayment of any incentives received either before or after the transfer.

Source:Laws 2010, LB1018, § 33.    


77-1034. Refunds; interest not allowable.

Interest shall not be allowable on any refunds paid because of incentives earned under the Nebraska Advantage Transformational Tourism and Redevelopment Act.

Source:Laws 2010, LB1018, § 34.    


77-1035. Act; restrictions on use.

The Nebraska Advantage Transformational Tourism and Redevelopment Act may not be used for the construction or financing of a stadium or for support facilities for a stadium.

Source:Laws 2010, LB1018, § 35.    


77-1101. Act, how cited.

Sections 77-1101 to 77-1120 shall be known and may be cited as the New Markets Job Growth Investment Act.

Source:Laws 2012, LB1128, § 1;    Laws 2021, LB682, § 1.    


77-1101.01. Act; purposes.

The purposes of the New Markets Job Growth Investment Act are to:

(1) Provide access to capital to small businesses that are not otherwise able to receive affordable financing;

(2) Attract investment dollars from the New Markets Tax Credit Program of the United States Department of the Treasury; and

(3) Ensure Nebraska small businesses have access to capital to retain and add jobs.

Source:Laws 2021, LB682, § 2.    


77-1102. Definitions, where found.

For purposes of the New Markets Job Growth Investment Act, the definitions in sections 77-1103 to 77-1112.02 apply.

Source:Laws 2012, LB1128, § 2;    Laws 2021, LB682, § 3.    


77-1103. Applicable percentage, defined.

Applicable percentage means zero percent for the first two credit allowance dates, seven percent for the third credit allowance date, and eight percent for the next four credit allowance dates.

Source:Laws 2012, LB1128, § 3.    


77-1104. Credit allowance date, defined.

Credit allowance date means, with respect to any qualified equity investment:

(1) The date on which such investment is initially made; and

(2) Each of the six anniversary dates of such date thereafter.

Source:Laws 2012, LB1128, § 4.    


77-1105. Letter ruling, defined.

Letter ruling means a written interpretation of law to a specific set of facts provided by the applicant requesting a letter ruling.

Source:Laws 2012, LB1128, § 5.    


77-1106. Long-term debt security, defined.

Long-term debt security means any debt instrument issued by a qualified community development entity, at par value or a premium, with an original maturity date of at least seven years after the date of its issuance, with no acceleration of repayment, amortization, or prepayment features prior to its original maturity date. The qualified community development entity that issues the debt instrument may not make cash interest payments on the debt instrument during the period beginning on the date of issuance and ending on the final credit allowance date that exceed the cumulative operating income as defined by regulations adopted under section 45D of the Internal Revenue Code of 1986, as amended, of the qualified community development entity for that period prior to giving effect to the expense of such cash interest payments. This in no way limits the holder's ability to accelerate payments on the debt instrument if the issuer has defaulted on covenants designed to ensure compliance with this section or section 45D of the code.

Source:Laws 2012, LB1128, § 6.    


77-1107. Purchase price, defined.

Purchase price means the amount paid to the issuer of a qualified equity investment for the qualified equity investment.

Source:Laws 2012, LB1128, § 7.    


77-1108. Qualified active low-income community business, defined.

Qualified active low-income community business has the meaning given such term in section 45D of the Internal Revenue Code of 1986, as amended, and 26 C.F.R. 1.45D-1. A business shall be considered a qualified active low-income community business for the duration of the qualified community development entity's investment in, or loan to, the business if the entity reasonably expects, at the time it makes the investment or loan, that the business will continue to satisfy the requirements for being a qualified active low-income community business throughout the entire period of the investment or loan. The term excludes any business that derives or projects to derive fifteen percent or more of its annual revenue from the rental or sale of real estate. This exclusion does not apply to a business that is controlled by, or under common control with, another business if the second business (1) does not derive or project to derive fifteen percent or more of its annual revenue from the rental or sale of real estate and (2) is the primary tenant of the real estate leased from the first business.

Source:Laws 2012, LB1128, § 8.    


77-1109. Qualified community development entity, defined.

Qualified community development entity has the meaning given such term in section 45D of the Internal Revenue Code of 1986, as amended, if such entity has entered into an allocation agreement with the Community Development Financial Institutions Fund of the United States Department of the Treasury with respect to credits authorized by section 45D of the code which includes the State of Nebraska within the service area set forth in such allocation agreement. The term includes affiliated entities and subordinate community development entities of any such qualified community development entity.

Source:Laws 2012, LB1128, § 9.    


77-1110. Qualified equity investment, defined.

(1) Qualified equity investment means any equity investment in, or long-term debt security issued by, a qualified community development entity that:

(a) Is acquired after January 1, 2012, at its original issuance solely in exchange for cash;

(b) Has at least eighty-five percent, or one hundred percent with respect to the 2021 allocation, of its cash purchase price used by the issuer to make qualified low-income community investments in qualified active low-income community businesses located in this state by the first anniversary of the initial credit allowance date;

(c) Is designated by the issuer as a qualified equity investment and, with respect to awards of the 2021 allocation pursuant to subsection (6) of section 77-1116, is designated by the issuer as a qualified equity investment under section 45D of the Internal Revenue Code of 1986, as amended; and

(d) Is certified by the Tax Commissioner as not exceeding the limitation contained in section 77-1115.

(2) The term includes any qualified equity investment that does not meet the requirements of subdivision (1)(a) of this section if such investment was a qualified equity investment in the hands of a prior holder.

Source:Laws 2012, LB1128, § 10;    Laws 2021, LB682, § 4.    


77-1111. Qualified low-income community investment, defined.

Qualified low-income community investment means any capital or equity investment in, or loan to, any qualified active low-income community business. With respect to any one qualified active low-income community business, the maximum amount of qualified low-income community investments made in such business, on a collective basis with all of its affiliates, shall be ten million dollars whether issued to one or several qualified community development entities.

Source:Laws 2012, LB1128, § 11.    


77-1112. Tax credit, defined.

Tax credit means a credit against the tax otherwise due under the Nebraska Revenue Act of 1967 or sections 44-101 to 44-165, 77-907 to 77-918, or 77-3801 to 77-3807.

Source:Laws 2012, LB1128, § 12.    


Cross References

77-1112.01. 2021 allocation, defined.

2021 allocation means a monetary amount of qualified equity investments to be awarded by the Tax Commissioner after the 2021 federal notice under the New Markets Job Growth Investment Act that results in a maximum tax credit utilization in any fiscal year of no more than fifteen million dollars of new tax credits.

Source:Laws 2021, LB682, § 5.    


77-1112.02. 2021 federal notice, defined.

2021 federal notice means the announcement by the Community Development Financial Institutions Fund of the United States Department of the Treasury of allocation awards under a notice of funding availability that was published in the Federal Register in September 2020.

Source:Laws 2021, LB682, § 6.    


77-1113. Vested tax credit; utilization.

A person or entity that acquires a qualified equity investment earns a vested tax credit against the tax imposed by the Nebraska Revenue Act of 1967 or sections 44-101 to 44-165, 77-907 to 77-918, or 77-3801 to 77-3807 that may be utilized as follows:

(1) On each credit allowance date of such qualified equity investment such acquirer, or subsequent holder of the qualified equity investment, shall be entitled to utilize a portion of such tax credit during the taxable year that includes such credit allowance date;

(2) The tax credit amount shall be equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid to the issuer of such qualified equity investment; and

(3) The amount of the tax credit claimed shall not exceed the amount of the taxpayer's tax liability for the tax year for which the tax credit is claimed.

Any taxpayer that claims a tax credit shall not be required to pay any additional retaliatory tax under section 44-150 as a result of claiming such tax credit. Any tax credit claimed under this section shall be considered a payment of tax for purposes of subsection (1) of section 77-2734.03.

Source:Laws 2012, LB1128, § 13;    Laws 2015, LB559, § 1.    


Cross References

77-1114. Tax credit; not refundable or transferable; allocation; carry forward.

No tax credit claimed under the New Markets Job Growth Investment Act shall be refundable or transferable. Tax credits earned by a partnership, limited liability company, subchapter S corporation, or other pass-through entity may be allocated to the partners, members, or shareholders of such entity for their direct use in accordance with any agreement among such partners, members, or shareholders. Any amount of tax credit that the taxpayer is prohibited from claiming in a taxable year may be carried forward to any of the taxpayer's five subsequent taxable years.

Source:Laws 2012, LB1128, § 14.    


77-1115. Tax Commissioner; limit tax credit utilization.

The Tax Commissioner shall limit the monetary amount of qualified equity investments permitted under the New Markets Job Growth Investment Act to a level necessary to limit tax credit utilization in any fiscal year at no more than fifteen million dollars of new tax credits, exclusive of tax credits acquired with respect to qualified equity investments issued under the 2021 allocation. Such limitation on qualified equity investments shall be based on the anticipated utilization of credits without regard to the potential for taxpayers to carry forward tax credits to later tax years.

Source:Laws 2012, LB1128, § 15;    Laws 2021, LB682, § 7.    


77-1116. Qualified community development entity; application; deadline; form; contents; Tax Commissioner; grant or deny; notice of certification; lapse of certification; when.

(1) A qualified community development entity that seeks to have an equity investment or long-term debt security designated as a qualified equity investment and eligible for tax credits under the New Markets Job Growth Investment Act shall apply to the Tax Commissioner. There shall be no new applications for such designation filed under this section after December 31, 2029. The Tax Commissioner shall begin accepting applications with respect to the 2021 allocation not less than thirty days or more than forty-five days after the 2021 federal notice.

(2) The qualified community development entity shall submit an application on a form that the Tax Commissioner provides that includes:

(a) Evidence of the entity's certification as a qualified community development entity, including evidence of the service area of the entity that includes this state;

(b) A copy of the allocation agreement executed by the entity, or its controlling entity, and the Community Development Financial Institutions Fund referred to in section 77-1109;

(c) A certificate executed by an executive officer of the entity attesting that the allocation agreement remains in effect and has not been revoked or canceled by the Community Development Financial Institutions Fund referred to in section 77-1109;

(d) A description of the proposed amount, structure, and purchaser of the equity investment or long-term debt security;

(e) Identifying information for any taxpayer eligible to utilize tax credits earned as a result of the issuance of the qualified equity investment;

(f) Information regarding the proposed use of proceeds from the issuance of the qualified equity investment;

(g) A nonrefundable application fee of five thousand dollars; and

(h) With respect to applications for the 2021 allocation, the amount of qualified equity investment authority the applicant agrees to designate as a federal qualified equity investment under section 45D of the Internal Revenue Code of 1986, as amended, including a copy of the screen shot from the Community Development Financial Institutions Fund's Allocation Tracking System of the applicant's remaining federal qualified equity investment authority.

(3) Within thirty days after receipt of a completed application containing the information necessary for the Tax Commissioner to certify a potential qualified equity investment, including the payment of the application fee, the Tax Commissioner shall grant or deny the application in full or in part. If the Tax Commissioner denies any part of the application, the Tax Commissioner shall inform the qualified community development entity of the grounds for the denial. If the qualified community development entity provides any additional information required by the Tax Commissioner or otherwise completes its application within fifteen days after the notice of denial, the application shall be considered completed as of the original date of submission. If the qualified community development entity fails to provide the information or complete its application within the fifteen-day period, the application remains denied and must be resubmitted in full with a new submission date.

(4) If the application is deemed complete, the Tax Commissioner shall certify the proposed equity investment or long-term debt security as a qualified equity investment that is eligible for tax credits, subject to the limitations contained in section 77-1115. The Tax Commissioner shall provide written notice of the certification to the qualified community development entity. The notice shall include the names of those taxpayers who are eligible to utilize the credits and their respective credit amounts. If the names of the taxpayers who are eligible to utilize the credits change due to a transfer of a qualified equity investment or a change in an allocation pursuant to section 77-1114, the qualified community development entity shall notify the Tax Commissioner of such change.

(5) Except as provided in subsection (6) of this section, the Tax Commissioner shall certify qualified equity investments in the order applications are received. Applications received on the same day shall be deemed to have been received simultaneously. For applications received on the same day and deemed complete, the Tax Commissioner shall certify, consistent with remaining tax credit capacity, qualified equity investments in proportionate percentages based upon the ratio of the amount of qualified equity investment requested in an application to the total amount of qualified equity investments requested in all applications received on the same day.

(6) With respect to applications for the 2021 allocation, the Tax Commissioner shall certify applications by applicants that agree to designate qualified equity investments as federal qualified equity investments in accordance with subdivision (2)(h) of this section in proportionate percentages based upon the ratio of the amount of qualified equity investments requested in an application to be designated as federal qualified equity investments to the total amount of qualified equity investments to be designated as federal qualified equity investments requested in all applications received on the same day.

(7) Once the Tax Commissioner has certified qualified equity investments that, on a cumulative basis, are eligible for the maximum limitation contained in section 77-1115 or the maximum amount of qualified equity investments authorized pursuant to the 2021 allocation, the Tax Commissioner may not certify any more qualified equity investments for that fiscal year. If a pending request cannot be fully certified, the Tax Commissioner shall certify the portion that may be certified unless the qualified community development entity elects to withdraw its request rather than receive partial credit.

(8) Within thirty days after receiving notice of certification, the qualified community development entity shall issue the qualified equity investment and receive cash in the amount of the certified amount and, with respect to the 2021 allocation, designate the required amount of qualified equity investment authority as a federal qualified equity investment. The qualified community development entity shall provide the Tax Commissioner with evidence of the receipt of the cash investment within ten business days after receipt and, with respect to the 2021 allocation, provide evidence that the required amount of qualified equity investment authority was designated as a federal qualified equity investment. If the qualified community development entity does not receive the cash investment and issue the qualified equity investment within thirty days after receipt of the certification notice and, with respect to the 2021 allocation, make the required federal qualified equity investment designation, the certification shall lapse and the entity may not issue the qualified equity investment without reapplying to the Tax Commissioner for certification. A certification that lapses reverts back to the Tax Commissioner and may be reissued only in accordance with the application process outlined in this section.

Source:Laws 2012, LB1128, § 16;    Laws 2015, LB538, § 9;    Laws 2016, LB1022, § 3;    Laws 2021, LB682, § 8.    


77-1117. Recapture of tax credit.

The Tax Commissioner shall recapture, from the taxpayer that claimed the credit on a return, the tax credit allowed under the New Markets Job Growth Investment Act if:

(1) Any amount of the federal tax credit available with respect to a qualified equity investment that is eligible for a tax credit under this section is recaptured under section 45D of the Internal Revenue Code of 1986, as amended. In such case the state's recapture shall be proportionate to the federal recapture with respect to such qualified equity investment;

(2) The issuer redeems or makes principal repayment with respect to a qualified equity investment prior to the seventh credit allowance date. In such case recapture shall be proportionate to the amount of the redemption or repayment with respect to such qualified equity investment; or

(3) The issuer fails to invest and satisfy the requirements of subdivision (1)(b) of section 77-1110 and maintain such level of investment in qualified low-income community investments in Nebraska until the last credit allowance date for the qualified equity investment. For purposes of this section, an investment shall be considered held by an issuer even if the investment has been sold or repaid if the issuer reinvests an amount equal to the capital returned to or recovered by the issuer from the original investment, exclusive of any profits realized, in another qualified low-income community investment within twelve months of the receipt of such capital. With respect to the 2021 allocation, amounts received periodically by a qualified community development entity shall be treated as maintained in qualified low-income community investments if the amounts are reinvested in one or more qualified low-income community investments by the end of the following calendar year. An issuer shall not be required to reinvest capital returned from qualified low-income community investments after the sixth credit allowance date, the proceeds of which were used to make the qualified low-income community investment, and the qualified low-income community investment shall be considered held by the issuer through the seventh credit allowance date.

Source:Laws 2012, LB1128, § 17;    Laws 2021, LB682, § 9.    


77-1118. Recapture of tax credit; notice of noncompliance; cure period.

The enforcement of section 77-1117 shall be subject to a six-month cure period. No recapture under section 77-1117 shall occur until the qualified community development entity has been given notice of noncompliance and afforded six months from the date of such notice to cure the noncompliance.

Source:Laws 2012, LB1128, § 18.    


77-1119. Tax Commissioner; issue letter rulings; request; refusal to issue for good cause; letter ruling; effect.

(1) The Tax Commissioner shall issue letter rulings regarding the tax credit program authorized under the New Markets Job Growth Investment Act subject to the terms and conditions set forth in rules and regulations.

(2) The Tax Commissioner shall respond to a request for a letter ruling within sixty days after receipt of such request. The applicant may provide a draft letter ruling for the Tax Commissioner's consideration. The applicant may withdraw the request for a letter ruling, in writing, prior to the issuance of the letter ruling. The Tax Commissioner may refuse to issue a letter ruling for good cause, but shall list the specific reasons for refusing to issue the letter ruling. Good cause includes, but is not limited to:

(a) The applicant requests the Tax Commissioner to determine whether a statute is constitutional or a rule or regulation is lawful;

(b) The request involves a hypothetical situation or alternative plans;

(c) The facts or issues presented in the request are unclear, overbroad, insufficient, or otherwise inappropriate as a basis upon which to issue a letter ruling; or

(d) The issue is currently being considered in a rulemaking procedure, contested case, or other agency or judicial proceeding that may definitely resolve the issue.

(3) A letter ruling shall bind the Tax Commissioner until such time as the taxpayer or its shareholders, members, or partners, as applicable, claim all of such tax credits on a tax return which is the topic of the letter ruling, subject to the terms and conditions set forth in rules and regulations. The letter ruling shall apply only to the applicant.

(4) In rendering letter rulings and making other determinations under this section, to the extent applicable, the Tax Commissioner shall look for guidance to section 45D of the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder. The Tax Commissioner may adopt and promulgate rules and regulations to carry out this section.

Source:Laws 2012, LB1128, § 19.    


77-1120. Qualified community development entity; report to Tax Commissioner; Tax Commissioner; report to Legislature.

(1) A qualified community development entity that has received an allocation of qualified equity investment authority pursuant to the 2021 allocation shall submit an annual report to the Tax Commissioner on or before the last day of February following the second through seventh credit allowance dates. The annual report shall provide documentation as to the qualified community development entity's qualified low-income community investments and include all of the following:

(a) A bank statement evidencing each qualified low-income community investment;

(b) The name, location, and industry of each qualified active low-income community business receiving a qualified low-income community investment; and

(c) The number of jobs created or retained as a result of each qualified low-income community investment.

(2) The Tax Commissioner shall electronically submit a report to the Legislature on or before April 1, 2022, and on or before each April 1 thereafter through April 1, 2028, with respect to the 2021 allocation. The report shall include all of the following:

(a) The name and number of all of the qualified community development entities approved to participate in the 2021 allocation;

(b) The amount of qualified low-income community investments made by the qualified community development entities;

(c) The location of each qualified active low-income community business; and

(d) The number of jobs created or retained as a result of each qualified low-income community investment.

Source:Laws 2021, LB682, § 10.    


77-1201. Tangible personal property; assessment date; listing.

All tangible personal property in this state subject to taxation shall be assessed as of January 1 at 12:01 a.m., which assessment shall be used as a basis of taxation until the next assessment. A complete list of all taxable tangible personal property held or owned on the assessment date shall be made as follows:

(1) Every person shall list all his or her taxable tangible personal property as defined in section 77-105 having tax situs in the State of Nebraska;

(2) The taxable tangible personal property of a minor child shall be listed by the following: (a) His or her guardian; (b) if he or she has no guardian, by his or her parent, if living; and (c) if neither parent is living, by the person having such property in charge;

(3) The taxable tangible personal property of any other person under guardianship, by his or her guardian or, if he or she has no guardian, by the person having charge of such property;

(4) The taxable tangible personal property of a person for whose benefit it is held in trust, by the trustee, and of the estate of a deceased person, by the personal representative or administrator;

(5) The taxable tangible personal property of corporations the assets of which are in the hands of a receiver, by such a receiver;

(6) The taxable tangible personal property of corporations, by the president or the proper agent or officer thereof;

(7) The taxable tangible personal property of a firm or company, by a partner, limited liability company member, or agent thereof;

(8) The taxable tangible personal property of manufacturers and others in the hands of an agent, by and in the name of such agent; and

(9) All leased taxable tangible personal property shall be reported, by itemizing each article, by lessor as owner or lessee as agent.

Source:Laws 1903, c. 73, § 28, p. 394; R.S.1913, § 6313; C.S.1922, § 5914; C.S.1929, § 77-1401; Laws 1935, c. 133, § 1, p. 479; Laws 1935, Spec. Sess., c. 14, § 1, p. 89; C.S.Supp.,1941, § 77-1401; R.S.1943, § 77-1201; Laws 1945, c. 186, § 1, p. 577; Laws 1947, c. 251, § 18, p. 815; Laws 1955, c. 288, § 10, p. 906; Laws 1957, c. 327, § 12, p. 1155; Laws 1959, c. 355, § 9, p. 1255; Laws 1959, c. 365, § 1, p. 1284; Laws 1961, c. 377, § 4, p. 1157; Laws 1961, c. 379, § 1, p. 1163; Laws 1965, c. 483, § 1, p. 1559; Laws 1967, c. 501, § 1, p. 1695; Laws 1969, c. 663, § 1, p. 2583; Laws 1979, LB 80, § 110;    Laws 1987, LB 508, § 28;    Laws 1992, LB 1063, § 92; Laws 1992, Second Spec. Sess., LB 1, § 65;    Laws 1993, LB 121, § 494;    Laws 1994, LB 884, § 89;    Laws 1997, LB 270, § 45;    Laws 1997, LB 271, § 48;    Laws 2008, LB965, § 3.    


Annotations

77-1201.01. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 180.

77-1201.02. Repealed. Laws 1967, c. 501, § 2.

77-1202. Tangible personal property; where listed and assessed.

Taxable tangible personal property shall be listed and assessed where it has acquired tax situs as defined in section 77-125.

Source:Laws 1903, c. 73, § 29, p. 395; R.S.1913, § 6314; Laws 1917, c. 117, § 1, p. 291; C.S.1922, § 5915; C.S.1929, § 77-1402; R.S.1943, § 77-1202; Laws 1961, c. 380, § 1, p. 1168; Laws 1965, c. 483, § 2, p. 1561; Laws 1969, c. 664, § 1, p. 2585; Laws 1972, LB 1100, § 2;    Laws 1987, LB 508, § 29;    Laws 1992, LB 1063, § 93; Laws 1992, Second Spec. Sess., LB 1, § 66;    Laws 1997, LB 270, § 46;    Laws 1997, LB 271, § 49.    


Annotations

77-1202.01. Tax lists; how prepared.

In preparing the tax list, each county assessor shall enter in a separate column, opposite the name of each person, the person's post office address and the number of the school and road districts in which the taxable tangible personal property of such person is assessable.

Source:Laws 1903, c. 73, § 26, p. 393; R.S.1913, § 6311; Laws 1921, c. 133, art. IV, § 5, p. 552; C.S.1922, § 5837; C.S.1929, § 77-405; R.S.1943, § 77-406; R.S.1943, (1986), § 77-406; Laws 1990, LB 821, § 44;    Laws 2008, LB965, § 4.    


77-1202.02. Repealed. Laws 1959, c. 365, § 17.

77-1203. Repealed. Laws 1986, LB 817, § 15.

77-1204. Repealed. Laws 1986, LB 817, § 15.

77-1205. Repealed. Laws 1986, LB 817, § 15.

77-1206. Repealed. Laws 1986, LB 817, § 15.

77-1207. Repealed. Laws 1987, LB 508, § 50.

77-1208. Repealed. Laws 1997, LB 270, § 110.

77-1209. Transferred to section 77-1374.

77-1209.01. Repealed. Laws 1959, c. 365, § 17.

77-1209.02. Transferred to section 77-1375.

77-1209.03. Transferred to section 77-1376.

77-1209.04. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-1209.05. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-1210. Taxable tangible personal property in transit; where listed and assessed.

Taxable tangible personal property in transit shall be listed and assessed in the tax district where the owner resides, but if such property is intended for a business, it shall be listed and assessed in the tax district where the property of such business is required to be listed.

Source:Laws 1903, c. 73, § 36, p. 396; R.S.1913, § 6321; C.S.1922, § 5922; C.S.1929, § 77-1409; R.S.1943, § 77-1210; Laws 2000, LB 968, § 42;    Laws 2008, LB965, § 5.    


Annotations

77-1211. Tangible personal property brought into state after December 31 and prior to July 1; where listed and assessed.

When any person brings taxable tangible personal property into this state or into one county thereof from another county after 12:01 a.m. on January 1 and prior to July 1 in any year, it shall be the duty of the owner, within thirty days after July 1, to list and return such property for taxation for the current tax year unless he or she shows to the county assessor under oath and by producing a copy of the listing or assessment duly certified to by the proper officer of the state or county that the property was listed for taxation for the current tax year in some other county in this state or in some other state or territory of the United States or that such property has been received by him or her in exchange for money or property already listed for taxation for the current tax year. The county assessor shall at once assess such property and shall enter the same on the tax roll.

Source:Laws 1903, c. 73, § 37, p. 397; R.S.1913, § 6322; C.S.1922, § 5923; C.S.1929, § 77-1410; R.S.1943, § 77-1211; Laws 1947, c. 250, § 14, p. 792; Laws 1947, c. 251, § 20, p. 817; Laws 1955, c. 288, § 13, p. 908; Laws 1959, c. 355, § 12, p. 1257; Laws 1961, c. 381, § 5, p. 1172; Laws 1986, LB 817, § 7;    Laws 1992, LB 1063, § 96; Laws 1992, Second Spec. Sess., LB 1, § 69;    Laws 1997, LB 270, § 47.    


Annotations

77-1212. Repealed. Laws 1992, LB 1063, § 213; Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1213. Repealed. Laws 2000, LB 968, § 91.

77-1214. Taxable tangible personal property; attempted sale, levy, or removal; notice to treasurer; collection of taxes due; acceleration of due date; issuance of distress warrants.

It shall be the duty of any county assessor, sheriff, constable, city council member, and village trustee to at once inform the county treasurer of the making or attempted making of any sale, levy of attachment, or removal of taxable tangible personal property known to him or her. It shall be the duty of the county treasurer to forthwith proceed with the collection of the tax when such acts become known to him or her in any manner. Any personal property tax shall be due and collectible, including all taxable tangible personal property then assessed upon which the tax shall be computed on the basis of the last preceding levy, and a distress warrant shall be issued when (1) any person attempts to sell all or a substantial part of his or her taxable tangible personal property, (2) a levy of attachment is made upon taxable tangible personal property, or (3) a person attempts to remove or removes taxable tangible personal property from the county.

Source:Laws 1903, c. 73, § 39, p. 397; R.S.1913, § 6324; C.S.1922, § 5925; C.S.1929, § 77-1412; R.S.1943, § 77-1214; Laws 1957, c. 321, § 2, p. 1141; Laws 1959, c. 365, § 5, p. 1286; Laws 1997, LB 270, § 48;    Laws 2008, LB965, § 6.    


77-1215. Repealed. Laws 1997, LB 270, § 110.

77-1216. Repealed. Laws 2007, LB 166, § 13.

77-1217. Repealed. Laws 1987, LB 508, § 50.

77-1218. Repealed. Laws 1987, LB 508, § 50.

77-1219. Taxable tangible personal property; assessment certificate; county assessor; duties.

It shall be the duty of the county assessor, when required by any person, to give a certificate of assessment of taxable tangible personal property showing the amount, kind, location, and net book value of the property assessed, and such certificate shall be evidence of the legal assessment of such property for the year.

Source:Laws 1903, c. 73, § 45, p. 399; R.S.1913, § 6330; C.S.1922, § 5931; C.S.1929, § 77-1418; R.S.1943, § 77-1219; Laws 1947, c. 250, § 15, p. 793; Laws 1947, c. 251, § 22, p. 818; Laws 1977, LB 39, § 215;    Laws 1987, LB 508, § 34;    Laws 1992, LB 1063, § 97; Laws 1992, Second Spec. Sess., LB 1, § 70;    Laws 1997, LB 270, § 49;    Laws 2008, LB965, § 7.    


77-1220. Repealed. Laws 1987, LB 87, § 1.

77-1221. Repealed. Laws 1980, LB 741, § 1.

77-1222. Repealed. Laws 1959, c. 365, § 17.

77-1223. Repealed. Laws 1959, c. 365, § 17.

77-1224. Repealed. Laws 1959, c. 365, § 17.

77-1225. Repealed. Laws 1982, LB 728, § 2.

77-1226. Repealed. Laws 1959, c. 366, § 2.

77-1226.01. Repealed. Laws 1982, LB 728, § 2.

77-1226.02. Repealed. Laws 1982, LB 728, § 2.

77-1226.03. Repealed. Laws 1982, LB 728, § 2.

77-1226.04. Repealed. Laws 1982, LB 728, § 2.

77-1227. Repealed. Laws 1982, LB 728, § 2.

77-1228. Repealed. Laws 1987, LB 508, § 50.

77-1229. Tangible personal property; form of return; time of filing; exemption; procedure.

(1) Every person required by section 77-1201 to list and value taxable tangible personal property shall list such property upon the forms prescribed by the Tax Commissioner. The forms shall be available from the county assessor and when completed shall be signed by each person or his or her agent and be filed with the county assessor. The forms shall be filed on or before May 1 of each year.

(2) Any person seeking a personal property exemption pursuant to subsection (2) of section 77-4105, the Nebraska Advantage Act, or the ImagiNE Nebraska Act shall annually file a copy of the forms required pursuant to section 77-4105 or the act with the county assessor in each county in which the person is requesting exemption. The copy shall be filed on or before May 1. Failure to timely file the required forms shall cause the forfeiture of the exemption for the tax year. If a taxpayer pursuant to this subsection also has taxable tangible personal property, such property shall be listed and valued as required under subsection (1) of this section.

Source:Laws 1903, c. 73, § 49, p. 399; Laws 1909, c. 111, § 1, p. 437; R.S.1913, § 6336; C.S.1922, § 5938; C.S.1929, § 77-1425; R.S.1943, § 77-1229; Laws 1947, c. 250, § 16, p. 793; Laws 1947, c. 251, § 26, p. 819; Laws 1959, c. 355, § 16, p. 1260; Laws 1959, c. 365, § 8, p. 1289; Laws 1959, c. 367, § 1, p. 1296; Laws 1969, c. 665, § 1, p. 2587; Laws 1987, LB 508, § 35;    Laws 1992, LB 1063, § 98; Laws 1992, Second Spec. Sess., LB 1, § 71;    Laws 1995, LB 490, § 92;    Laws 1997, LB 270, § 50;    Laws 2000, LB 968, § 43;    Laws 2005, LB 312, § 5;    Laws 2007, LB334, § 52;    Laws 2020, LB1107, § 124.    


Cross References

Annotations

77-1229.01. Personal property; return; filing improperly signed; procedure.

If any listing of personal property required to be filed under section 77-1229 is filed by or on behalf of any person and is not signed as required by law, the county assessor shall notify the person in writing of the fact of such filing and that he or she is required, on or before the last date for filing the statement or within ten days from the date of such notice, whichever is later, to appear and sign such statement or to file a properly signed corrected statement and that, upon failure to do so, the unsigned statement shall be presumed to be correct.

Source:Laws 1963, c. 437, § 1, p. 1454; Laws 1992, LB 1063, § 99; Laws 1992, Second Spec. Sess., LB 1, § 72.    


77-1230. Taxable tangible personal property; amended listing; when required; county assessor; duties; refund; additional tax due.

(1) Whenever a person files an amended federal income tax return or whenever a person's return is changed or corrected by the Internal Revenue Service or other competent authority and the amendment, change, or correction affects the Nebraska adjusted basis of the person's taxable tangible personal property, such person shall file an amended list of taxable tangible personal property subject to taxation with the county assessor. The person shall file the amended list within ninety days after the filing of the amended federal return or within ninety days after the date the change or correction becomes final.

(2) Within the same tax year or the three previous tax years, a person may file an amended list of taxable tangible personal property subject to taxation upon discovery of errors or omissions on his or her filed list.

(3) If an amended list of taxable tangible personal property subject to taxation is filed, the county assessor shall accept or reject the proposed amendment within fifteen days after filing. The county assessor shall notify the person, on a form prescribed by the Property Tax Administrator, of the action taken, the penalty, if any, and the rate of interest. The notice shall also state the person's appeal rights and appeal procedures, which shall be the same as provided in section 77-1233.06. Such notice shall be given by first-class mail addressed to such person's last-known address.

(4) Whenever changes are made to a taxable tangible personal property return pursuant to this section, the county assessor shall correct the assessment roll and tax list, if necessary, to reflect such changes.

(5) If the amendment, change, or correction results in taxable tangible personal property becoming exempt or reduces the net book value of the property for an income tax year, a refund shall be paid pursuant to section 77-1734.01.

(6) If the amendment, change, or correction results in an increase in the net book value of the taxable tangible personal property or makes other tangible personal property taxable, the county assessor shall compute the additional tax due, along with interest, based on the amended listing. Interest shall be computed from the dates the tax would have been delinquent if the property had been listed on or before May 1 of the appropriate year. If the amended listing is filed within the ninety-day period, no additional penalties shall be added. If the listing is not filed within the ninety-day period, the property shall be subject to a penalty pursuant to subsection (4) of section 77-1233.04.

Source:Laws 1992, LB 1063, § 95; Laws 1992, Second Spec. Sess., LB 1, § 68;    Laws 1997, LB 270, § 51;    Laws 2008, LB965, § 8.    


77-1231. Repealed. Laws 1959, c. 365, § 17.

77-1231.01. Repealed. Laws 1977, LB 518, § 15.

77-1232. Personal property; failure to list; false listing; evasion of tax; penalty.

Any person who makes a false or fraudulent list, schedule, or statement required by law or willfully fails or refuses to deliver to the assessor a list of the taxable tangible personal property which by law is required to be listed, or temporarily converts any part of such property into property not taxable, for the fraudulent purpose of preventing such property from being listed and of evading the payment of taxes thereon, or transfers or transmits any property to any person with such intent, shall be guilty of a Class IV misdemeanor for any such offense committed for any tax year prior to tax year 1993 and a Class II misdemeanor for any such offense committed for tax year 1993 or thereafter.

Source:Laws 1903, c. 73, § 53, p. 402; R.S.1913, § 6340; C.S.1922, § 5942; C.S.1929, § 77-1429; R.S.1943, § 77-1232; Laws 1947, c. 250, § 17, p. 793; Laws 1959, c. 365, § 9, p. 1289; Laws 1977, LB 39, § 219;    Laws 1992, LB 1063, § 100; Laws 1992, Second Spec. Sess., LB 1, § 73.    


Annotations

77-1233. Personal property; statement required on return; signature by taxpayer.

Each schedule or statement required by law to be filed with respect to taxation of personal property shall have the following printed thereon and signed by the taxpayer or his agent:

Taxpayer or Agent—I declare that this (schedule or return) and any accompanying schedule and statements have been examined by me and to the best of my knowledge and belief are a true, correct, and complete return.

Source:Laws 1903, c. 73, § 53, p. 402; R.S.1913, § 6340; C.S.1922, § 5942; C.S.1929, § 77-1429; R.S.1943, § 77-1233; Laws 1959, c. 365, § 10, p. 1289; Laws 1961, c. 377, § 5, p. 1158.


77-1233.01. Repealed. Laws 1984, LB 835, § 18.

77-1233.02. Taxable tangible personal property tax returns; county assessor; duties.

The county assessor with the aid of his or her deputy and assistants shall carefully examine, check, and verify all taxable tangible personal property tax returns. The assessor may make such investigation, examination, and inspection of the property set out in a return and examine under oath the person making the return as to his or her books, records, and papers in order to enable the assessor to determine that all taxable tangible personal property of the taxpayer is listed for taxation at its net book value.

Source:Laws 1947, c. 250, § 39, p. 804; Laws 1987, LB 508, § 9;    R.S.Supp.,1988, § 77-409; Laws 1990, LB 821, § 45;    Laws 1992, LB 1063, § 101; Laws 1992, Second Spec. Sess., LB 1, § 74;    Laws 1997, LB 270, § 52;    Laws 2008, LB965, § 9.    


77-1233.03. Assessment of taxable tangible personal property; county assessor; duties.

The county assessor shall have general supervision over and direction of the assessment of all personal property in his or her county. He or she shall advise and instruct all deputies and assistants as to their duties and shall require of them that the assessment of property be uniform throughout the county and that property be assessed as directed by law.

The county assessor may, in extending a value on any item of taxable tangible personal property, reject all values that fall below two dollars and fifty cents and extend all values of two dollars and fifty cents or more to the next higher five dollars or multiples thereof, making all valuations end in zero or five.

Source:Laws 1947, c. 250, § 40, p. 804; Laws 1987, LB 508, § 10;    R.S.Supp.,1988, § 77-410; Laws 1990, LB 821, § 46;    Laws 2008, LB965, § 10.    


77-1233.04. Taxable tangible personal property tax returns; change in value; omitted property; procedure; penalty; county assessor; duties.

(1) The county assessor shall list and value at net book value any item of taxable tangible personal property omitted from a personal property return of any taxpayer. The county assessor shall change the reported valuation of any item of taxable tangible personal property listed on the return to conform the valuation to net book value. If a taxpayer fails or refuses to file a personal property return, the assessor shall, on behalf of the taxpayer, file a personal property return which shall list and value all of the taxpayer's taxable tangible personal property at net book value. The county assessor shall list or change the valuation of any item of taxable tangible personal property for the current taxing period and the three previous taxing periods or any taxing period included therein.

(2) The taxable tangible personal property so listed and valued shall be taxed at the same rate as would have been imposed upon the property in the tax district in which the property should have been returned for taxation.

(3) Any valuation added to a personal property return or added through the filing of a personal property return, after May 1 and on or before June 30 of the year the property is required to be reported, shall be subject to a penalty of ten percent of the tax due on the value added.

(4) Any valuation added to a personal property return or added through the filing of a personal property return, on or after July 1 of the year the property is required to be reported, shall be subject to a penalty of twenty-five percent of the tax due on the value added.

(5) Interest shall be assessed upon both the tax and the penalty at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date the tax would have been delinquent until paid.

(6) Whenever valuation changes are made to a personal property return or a personal property return is filed pursuant to this section, the county assessor shall correct the assessment roll and tax list, if necessary, to reflect such changes. Such corrections shall be made for the current taxing period and the three previous taxing periods or any taxing period included therein. If the change results in a decreased taxable valuation on the personal property return and the personal property tax has been paid prior to a correction pursuant to this section, the taxpayer may request a refund of the tax in the same manner prescribed in section 77-1734.01, except that such request shall be made within three years after the date the tax was due.

Source:Laws 1947, c. 250, § 42, p. 805; Laws 1965, c. 474, § 1, p. 1526; Laws 1965, c. 475, § 2, p. 1530; Laws 1967, c. 499, § 1, p. 1692; Laws 1980, LB 834, § 59; Laws 1981, LB 167, § 39;    Laws 1984, LB 835, § 4;    Laws 1987, LB 508, § 11;    R.S.Supp.,1988, § 77-412; Laws 1990, LB 821, § 47;    Laws 1992, LB 1063, § 102; Laws 1992, Second Spec. Sess., LB 1, § 75;    Laws 1995, LB 490, § 93;    Laws 1997, LB 270, § 53;    Laws 1999, LB 194, § 12;    Laws 2000, LB 968, § 44;    Laws 2007, LB166, § 5;    Laws 2008, LB965, § 11;    Laws 2013, LB28, § 1.    


Annotations

77-1233.05. Repealed. Laws 1999, LB 194, § 39.

77-1233.06. Taxable tangible personal property tax valuation or penalty; appeal; procedure; collection procedures.

For purposes of section 77-1233.04:

(1) The county assessor shall notify the taxpayer, on a form prescribed by the Tax Commissioner, of the action taken, the penalty, and the rate of interest. The notice shall also state the taxpayer's appeal rights and the appeal procedures. Such notice shall be given by first-class mail addressed to such taxpayer's last-known address. The entire penalty and interest shall be waived if the omission or failure to report any item of taxable tangible personal property was for the reason that the property was timely reported in the wrong tax district;

(2) The taxpayer may appeal the action of the county assessor, either as to the valuation or the penalties imposed, to the county board of equalization within thirty days after the date of notice. The taxpayer shall preserve his or her appeal by filing a written appeal with the county clerk in the same manner as prescribed for protests in section 77-1502. The action of the county assessor shall become final unless a written appeal is filed within the time prescribed;

(3) The action of the county board of equalization, in an appeal of the penalties imposed, shall be limited to correcting penalties which were wrongly imposed or incorrectly calculated. The county board of equalization shall have no authority to waive or reduce any penalty which was correctly imposed and calculated. The entire penalty and interest on the penalty shall be waived if the omission or failure to report any item of taxable tangible personal property was for the reason that the property was timely reported in the wrong tax district;

(4) Upon ten days' notice to the taxpayer, the county board of equalization shall set a date for hearing the appeal of the taxpayer. The county board of equalization shall make its determination on the appeal within thirty days after the date of hearing. The county clerk shall, within seven days after the determination of the county board, send notice to the taxpayer and the county assessor, on forms prescribed by the Tax Commissioner, of the action of the county board. Appeal may be taken within thirty days after the decision of the county board of equalization to the Tax Equalization and Review Commission; and

(5) Taxes and penalties assessed for the current year, if not delinquent, shall be certified to the county treasurer and collected as if the property had been properly reported for taxation, except that separate tax statements may be mailed. Taxes and penalties assessed for the current year, if delinquent, and taxes and penalties assessed for prior years shall be certified to the county treasurer, and the taxes, penalties, and interest thereon shall be due and collectible immediately upon certification. Collection procedures shall be started immediately regardless of the provisions of any other statute to the contrary.

Source:Laws 1997, LB 270, § 55;    Laws 1999, LB 194, § 13;    Laws 2007, LB334, § 53;    Laws 2008, LB965, § 12.    


Annotations

77-1234. Violations; duty of officers upon discovery.

It shall be the duty of the county boards and county assessors to notify the county attorney of the proper county of all willful violations of the provisions with respect to listing of taxable tangible personal property for taxation known to them or any of them.

Source:Laws 1903, c. 73, § 54, p. 403; Laws 1909, c. 111, § 1, p. 439; R.S.1913, § 6341; C.S.1922, § 5943; C.S.1929, § 77-1430; R.S.1943, § 77-1234; Laws 1947, c. 250, § 18, p. 794; Laws 1997, LB 397, § 11;    Laws 2004, LB 973, § 16;    Laws 2008, LB965, § 13.    


77-1235. Repealed. Laws 1965, c. 475, § 7.

77-1235.01. Repealed. Laws 1961, c. 284, § 1.

77-1236. Personal property; taxpayer; inspection by county assessor; authorized; subpoena; disobedience; contempt proceedings; confidentiality.

For the purpose of determining the net book value of any property, the county assessor shall have the right to demand of the owner or his or her agent or employee an inspection of the following for the year preceding assessment: Inventories; all books of accounts; depreciation schedules filed with the Internal Revenue Service; and workpapers, worksheets, or any other item prepared by or for a taxpayer and not filed with the Internal Revenue Service. If the owner, agent, or employee refuses such demand, the county assessor shall have authority to issue subpoenas to compel the appearance of such owner or agent and employee, together with such papers, books, accounts, and documents as the county assessor may deem necessary, and at such time the county assessor may administer oaths and take testimony. In case of disobedience on the part of any person to comply with any subpoena issued by or on behalf of the county assessor or of the refusal of any witness to testify on any matters regarding which he or she may be lawfully interrogated, it shall be the duty of the district court for any county or of the judge thereof, on application by the county assessor, to compel obedience by proceedings for contempt as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

All documentation provided by the owner or owner's agent or employee pursuant to this section shall be confidential and available to taxing officials only.

Source:Laws 1903, c. 73, § 57, p. 404; R.S.1913, § 6344; C.S.1922, § 5945; C.S.1929, § 77-1432; R.S.1943, § 77-1236; Laws 1959, c. 365, § 12, p. 1290; Laws 1992, LB 1063, § 104; Laws 1992, Second Spec. Sess., LB 1, § 77;    Laws 1997, LB 270, § 56.    


Annotations

77-1237. Personal Property Tax Relief Act; act, how cited.

Sections 77-1237 to 77-1239 shall be known and may be cited as the Personal Property Tax Relief Act.

Source:Laws 2015, LB259, § 1.    


77-1238. Exemption from taxation; Property Tax Administrator; duties.

(1) For tax years prior to tax year 2020, every person who is required to list his or her taxable tangible personal property as defined in section 77-105, as required under section 77-1229, shall receive an exemption from taxation for the first ten thousand dollars of valuation of his or her tangible personal property in each tax district as defined in section 77-127 in which a personal property return is required to be filed. Failure to report tangible personal property on the personal property return required by section 77-1229 shall result in a forfeiture of the exemption for any tangible personal property not timely reported for that year.

(2) For tax years prior to tax year 2020, the Property Tax Administrator shall reduce the value of the tangible personal property owned by each railroad, car line company, public service entity, and air carrier by a compensating exemption factor to reflect the exemption allowed in subsection (1) of this section for all other personal property taxpayers. The compensating exemption factor is calculated by multiplying the value of the tangible personal property of the railroad, car line company, public service entity, or air carrier by a fraction, the numerator of which is the total amount of locally assessed tangible personal property that is actually subjected to property tax after the exemption allowed in subsection (1) of this section, and the denominator of which is the net book value of locally assessed tangible personal property prior to the exemptions allowed in subsection (1) of this section.

Source:Laws 2015, LB259, § 2;    Laws 2020, LB1107, § 125.    


77-1239. Reimbursement for tax revenue lost because of exemption; calculation.

(1) For tax years prior to tax year 2020, reimbursement to taxing subdivisions for tax revenue that will be lost because of the personal property tax exemptions allowed in subsection (1) of section 77-1238 shall be as provided in this subsection. The county assessor and county treasurer shall, on or before November 30 of each year, certify to the Tax Commissioner, on forms prescribed by the Tax Commissioner, the total tax revenue that will be lost to all taxing subdivisions within his or her county from taxes levied and assessed in that year because of the personal property tax exemptions allowed in subsection (1) of section 77-1238. The county assessor and county treasurer may amend the certification to show any change or correction in the total tax revenue that will be lost until May 30 of the next succeeding year. The Tax Commissioner shall, on or before January 1 next following the certification, notify the Director of Administrative Services of the amount so certified to be reimbursed by the state. Reimbursement of the tax revenue lost shall be made to each county according to the certification and shall be distributed in two approximately equal installments on the last business day of February and the last business day of June. The State Treasurer shall, on the business day preceding the last business day of February and the last business day of June, notify the Director of Administrative Services of the amount of funds available in the General Fund to pay the reimbursement. The Director of Administrative Services shall, on the last business day of February and the last business day of June, draw warrants against funds appropriated. Out of the amount received, the county treasurer shall distribute to each of the taxing subdivisions within his or her county the full tax revenue lost by each subdivision, except that one percent of such amount shall be deposited in the county general fund.

(2) For tax years prior to tax year 2020, reimbursement to taxing subdivisions for tax revenue that will be lost because of the compensating exemption factor in subsection (2) of section 77-1238 shall be as provided in this subsection. The Property Tax Administrator shall establish the average tax rate that will be used for purposes of reimbursing taxing subdivisions pursuant to this subsection. The average tax rate shall be equal to the total property taxes levied in the state divided by the total taxable value of all taxable property in the state as certified pursuant to section 77-1613.01. The total valuation that will be lost to all taxing subdivisions within each county because of the compensating exemption factor in subsection (2) of section 77-1238, multiplied by the average tax rate calculated pursuant to this subsection, shall be the tax revenue to be reimbursed to the taxing subdivisions by the state. Reimbursement of the tax revenue lost for public service entities shall be made to each county according to the certification and shall be distributed among the taxing subdivisions within each county in the same proportion as all public service entity taxes levied by the taxing subdivisions. Reimbursement of the tax revenue lost for railroads shall be made to each county according to the certification and shall be distributed among the taxing subdivisions within each county in the same proportion as all railroad taxes levied by taxing subdivisions. Reimbursement of the tax revenue lost for car line companies shall be distributed in the same manner as the taxes collected pursuant to section 77-684. Reimbursement of the tax revenue lost for air carriers shall be distributed in the same manner as the taxes collected pursuant to section 77-1250.

(3) Each taxing subdivision shall, in preparing its annual or biennial budget, take into account the amounts to be received under this section.

Source:Laws 2015, LB259, § 3;    Laws 2019, LB512, § 13;    Laws 2020, LB1107, § 126.    


77-1239.01. Repealed. Laws 1997, LB 271, § 57.

77-1239.02. Repealed. Laws 1997, LB 271, § 57.

77-1239.03. Repealed. Laws 1981, LB 168, § 18.

77-1239.04. Repealed. Laws 1981, LB 168, § 18.

77-1239.05. Repealed. Laws 1997, LB 271, § 57.

77-1239.06. Repealed. Laws 1997, LB 271, § 57.

77-1240. Repealed. Laws 1993, LB 346, § 23.

77-1240.01. Repealed. Laws 1997, LB 271, § 57.

77-1240.02. Repealed. Laws 1981, LB 168, § 18.

77-1240.03. Repealed. Laws 1997, LB 271, § 57.

77-1240.04. Repealed. Laws 1997, LB 271, § 57.

77-1240.05. Repealed. Laws 1981, LB 168, § 18.

77-1240.06. Repealed. Laws 1981, LB 168, § 18.

77-1241. Repealed. Laws 1988, LB 305, § 11.

77-1241.01. Repealed. Laws 1997, LB 271, § 57.

77-1241.02. Repealed. Laws 1988, LB 305, § 11.

77-1241.03. Repealed. Laws 1988, LB 305, § 11.

77-1241.04. Repealed. Laws 1988, LB 305, § 11.

77-1241.05. Repealed. Laws 1969, c. 495, § 10.

77-1241.06. Repealed. Laws 1988, LB 305, § 11.

77-1241.07. Repealed. Laws 1988, LB 305, § 11.

77-1241.08. Repealed. Laws 1988, LB 305, § 11.

77-1241.09. Transferred to section 60-305.15.

77-1242. Repealed. Laws 1977, LB 518, § 15.

77-1242.01. Repealed. Laws 1997, LB 271, § 57.

77-1242.02. Repealed. Laws 1997, LB 271, § 57.

77-1243. Repealed. Laws 1953, c. 268, § 20.

77-1244. Taxation of air carriers; definitions.

As used in sections 77-1244 to 77-1246:

(1) The term air carrier means any person, firm, partnership, limited liability company, corporation, association, trustee, receiver, or assignee and all other persons, whether or not in a representative capacity, undertaking to engage in the carriage of persons or cargo for hire by aircraft. Any air carrier as herein defined engaged solely in intrastate transportation, whose flight equipment is based at only one airport within the state, shall be excepted from taxation under this section, but shall be subject to taxation in the same manner as other locally assessed property;

(2) The term aircraft arrivals and departures means (a) the number of scheduled landings and takeoffs of the aircraft of an air carrier, (b) the number of scheduled air pickups and deliveries by the aircraft of such carrier, and (c) in the case of nonscheduled operations, shall include all landings and takeoffs, pickups, and deliveries;

(3) The term flight equipment means aircraft fully equipped for flight and used within the continental limits of the United States;

(4) The term originating revenue means revenue to an air carrier from the transportation of revenue passengers and revenue cargo exclusive of the revenue derived from the transportation of express or mail; and

(5) The term revenue tons handled by an air carrier means the weight in tons of revenue passengers and revenue cargo received and discharged as originating or terminating traffic.

Source:Laws 1947, c. 266, § 1, p. 858; Laws 1949, c. 231, § 5, p. 641; Laws 1993, LB 121, § 495.    


Annotations

77-1245. Taxation of air carriers; assessment; collection; disbursement; allocation to this state; petition to Property Tax Administrator, when.

Any tax upon or measured by the value of flight equipment of air carriers incorporated or doing business in this state shall be assessed, collected by the Property Tax Administrator, and disbursed as provided in section 77-1250. The proportion of flight equipment allocated to this state for purposes of taxation shall be the arithmetical average of the following three ratios: (1) The ratio which the aircraft arrivals and departures within this state scheduled by such air carrier during the preceding calendar year bears to the total aircraft arrivals and departures within and without this state scheduled by such carrier during the same period, except that in the case of nonscheduled operations all arrivals and departures shall be substituted for scheduled arrivals and departures; (2) the ratio which the revenue tons handled by such air carrier at airports within this state during the preceding calendar year bears to the total revenue tons handled by such carrier at airports within and without this state during the same period; and (3) the ratio which such air carrier's originating revenue within this state for the preceding calendar year bears to the total originating revenue of such carrier within and without this state for the same period.

If allocation in accordance with the provisions of this section does not fairly represent the proportion of flight equipment properly allocable to this state, the taxpayer may petition for, or the Property Tax Administrator may require, the inclusion of one or more additional ratios or the employment of any other method to effectuate an equitable allocation of the taxpayer's flight equipment for purposes of taxation.

Source:Laws 1947, c. 266, § 2, p. 859; Laws 1965, c. 478, § 9, p. 1543; Laws 1972, LB 625, § 1;    Laws 1995, LB 490, § 99.    


Annotations

77-1246. Taxation of air carriers; real and personal property other than flight equipment.

Real property and personal property, except flight equipment, of an air carrier shall be taxed in the political subdivisions of the state in accordance with the applicable laws of this state.

Source:Laws 1947, c. 266, § 3, p. 860; Laws 1965, c. 478, § 10, p. 1544.


77-1247. Taxation of air carriers; annual report; contents; failure to furnish report or information; penalty; waiver.

(1) Each air carrier, as defined in section 77-1244, shall on or before June 1 in each year make to the Property Tax Administrator a report, in such form as may be prescribed by the Tax Commissioner, containing the information necessary to determine the value of its flight equipment and the proportion allocated to this state for purposes of taxation as provided in section 77-1246. For good cause shown, the Property Tax Administrator may allow an extension of time in which to file such report. Such extension shall not exceed thirty days after June 1.

(2) For each day's failure to furnish the report required by subsection (1) of this section or for each day's failure to furnish the information as required on the report, the air carrier may be assessed a penalty in the amount of one hundred dollars, except that the penalty shall not exceed ten thousand dollars. Such penalty shall be collected by the Tax Commissioner and credited to the Department of Revenue Property Assessment Division Cash Fund. The Tax Commissioner, in his or her discretion, may waive all or part of the penalty provided in this section.

Source:Laws 1949, c. 231, § 1, p. 641; Laws 1965, c. 478, § 11, p. 1544; Laws 1986, LB 817, § 8;    Laws 1995, LB 490, § 100;    Laws 1997, LB 270, § 59;    Laws 1999, LB 36, § 19;    Laws 2007, LB334, § 54.    


Annotations

77-1248. Taxation of air carriers; taxable value; allocation; Property Tax Administrator; duties.

(1) The Property Tax Administrator shall ascertain from the reports made and from any other information obtained by him or her the taxable value of the flight equipment of air carriers and the proportion allocated to this state for the purposes of taxation as provided in section 77-1245.

(2)(a) In determining the taxable value of the flight equipment of air carriers pursuant to subsection (1) of this section, the Property Tax Administrator shall determine the following ratios:

(i) The ratio of the taxable value of all commercial and industrial depreciable tangible personal property in the state actually subjected to property tax to the market value of all commercial and industrial depreciable tangible personal property in the state; and

(ii) The ratio of the taxable value of flight equipment of air carriers to the market value of flight equipment of air carriers.

(b) If the ratio of the taxable value of flight equipment of air carriers exceeds the ratio of the taxable value of commercial and industrial depreciable tangible personal property by more than five percent, the Property Tax Administrator may adjust the value of such flight equipment of air carriers to the percentage of the taxable commercial and industrial depreciable tangible personal property pursuant to federal law applicable to air carrier transportation property or Nebraska federal court decisions applicable thereto.

(c) For purposes of this subsection, commercial and industrial depreciable tangible personal property means all personal property which is devoted to commercial or industrial use other than flight equipment of air carriers.

(3) For tax years prior to tax year 2020, the Property Tax Administrator shall multiply the valuation of each air carrier by the compensating exemption factor calculated in section 77-1238.

Source:Laws 1949, c. 231, § 2, p. 641; Laws 1969, c. 669, § 1, p. 2591; Laws 1992, LB 1063, § 109; Laws 1992, Second Spec. Sess., LB 1, § 82;    Laws 1995, LB 490, § 101;    Laws 2015, LB259, § 8;    Laws 2015, LB261, § 7;    Laws 2020, LB1107, § 127.    


77-1249. Taxation of air carriers; tax rate; appeal.

The Property Tax Administrator shall, on or before January 15 each year, establish a tax rate for purposes of taxation against the taxable value as provided in section 77-1248 at a rate which shall be equal to the total property taxes levied in the state divided by the total taxable value of all taxable property in the state as certified pursuant to section 77-1613.01. The date when such tax rate is determined shall be deemed to be the levy date for the property. The Property Tax Administrator shall send to each air carrier a statement showing the taxable value, the tax rate, and the amount of the tax and a statement that the tax is due and payable to the Property Tax Administrator on January 31 next following the levy thereof. If an air carrier feels aggrieved, such carrier may, on or before February 15, file an appeal with the Tax Commissioner. The Tax Commissioner shall act upon the appeal and shall issue a written order mailed to the carrier within seven days after the date of the order. The order may be appealed within thirty days after the date of the order to the Tax Equalization and Review Commission in accordance with section 77-5013.

Source:Laws 1949, c. 231, § 3, p. 641; Laws 1965, c. 478, § 12, p. 1544; Laws 1969, c. 669, § 2, p. 2591; Laws 1983, LB 193, § 9;    Laws 1992, LB 1063, § 110; Laws 1992, Second Spec. Sess., LB 1, § 83;    Laws 1995, LB 490, § 102;    Laws 1997, LB 270, § 60;    Laws 2000, LB 968, § 45;    Laws 2004, LB 973, § 17;    Laws 2007, LB334, § 55.    


77-1249.01. Taxation of air carriers; delinquency; interest; collection.

One-half of the taxes levied and due under sections 77-1249 and 77-1250 shall become delinquent March 1, and the second half on July 1, next following the date the tax has become due.

All delinquent taxes shall draw interest from the date they become delinquent at a rate equal to the maximum rate of interest allowed per annum under section 45-104.01, as such rate may from time to time be adjusted by the Legislature, and the interest shall be collected and distributed the same as the tax on which the interest accrues. If such taxes and interest due thereon shall not have been paid on July 1 following the levy thereof, the Tax Commissioner shall collect the same by distress and sale of any property belonging to such delinquent person in like manner as required of county treasurers and county sheriffs in like cases.

Source:Laws 1983, LB 193, § 11;    Laws 1989, Spec. Sess., LB 7, § 4; Laws 1995, LB 490, § 103;    Laws 1997, LB 270, § 61;    Laws 2007, LB334, § 56.    


77-1250. Taxation of air carriers; when due; lien; distribution to counties; collection fee.

The tax levied pursuant to section 77-1249 shall, on January 31 next following the date of levy, be a first lien from that date on the personal property, both tangible and intangible, of the person assessed until the liability is satisfied or otherwise released or discharged. Such lien shall be filed and enforced pursuant to the Uniform State Tax Lien Registration and Enforcement Act. The Property Tax Administrator shall remit the tax paid to the State Treasurer, and the tax collected, less a three percent collection fee, shall be distributed to the counties to the credit of the county general fund proportionate to the amount the total property taxes levied in the county bears to the total property taxes levied in the state as a whole, as certified pursuant to section 77-1613.01. The collection fee shall be credited by the State Treasurer to the Department of Revenue Property Assessment Division Cash Fund.

Source:Laws 1949, c. 231, § 4, p. 641; Laws 1965, c. 478, § 13, p. 1544; Laws 1973, LB 132, § 3;    Laws 1979, LB 159, § 4;    Laws 1979, LB 187, § 203;    Laws 1980, LB 599, § 13; Laws 1983, LB 193, § 10;    Laws 1986, LB 1027, § 202;    Laws 1995, LB 490, § 104;    Laws 1997, LB 270, § 62;    Laws 1999, LB 36, § 20;    Laws 2007, LB334, § 57.    


Cross References

77-1250.01. Repealed. Laws 1971, LB 26, § 3.

77-1250.02. Aircraft; owner, lessee, manager of hangar or land, report required; violation; penalty.

The owner, lessee, or manager of any aircraft hangar or land upon which is parked or located any aircraft as defined by section 3-101 shall report by February 1 of each year to the county assessor in the county in which such aircraft hangar or land is located all aircraft as defined by section 3-101 located thereon in such hangar or on such land as of January 1 of each year on a form prescribed by the Tax Commissioner. Any person violating the provisions of this section shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine of not more than fifty dollars.

Source:Laws 1971, LB 26, § 2;    Laws 1995, LB 490, § 105;    Laws 2007, LB334, § 58.    


77-1250.03. Taxation of air carriers; taxes; delinquent; lien; collection.

If any taxes levied on air carriers as defined in section 77-1244 and interest and penalties due thereon shall not have been paid on July 1, following the levy thereof, the total amount shall be a lien in favor of the State of Nebraska upon all money and credits belonging to such air carriers until the liability therefor is satisfied or otherwise released or discharged, and it shall be lawful for the Tax Commissioner or his or her designated agent to collect such total amount by issuing a distress warrant and making levy upon all money and credits belonging to such air carriers. Such lien shall be filed and enforced pursuant to the Uniform State Tax Lien Registration and Enforcement Act.

Source:Laws 1959, c. 360, § 2, p. 1277; Laws 1983, LB 193, § 8;    Laws 1986, LB 1027, § 201;    R.S.1943, (1986), § 77-631.02; Laws 1989, Spec. Sess., LB 7, § 5; Laws 1995, LB 490, § 106;    Laws 2007, LB334, § 59.    


Cross References

77-1250.04. Taxation of air carriers; money and credits; surrender to Tax Commissioner.

Any person or corporation in possession of any such money and credits belonging to air carriers as defined in section 77-1244 upon which levy has been made shall, upon demand of the Tax Commissioner or his or her agent, surrender the same to the Tax Commissioner or his or her agent. If any person or corporation fails or refuses to surrender the same in accordance with the requirements of this section, such person shall be liable to the State of Nebraska in a sum equal to the value of the property or rights not so surrendered but not exceeding the amount of the taxes, interest, and penalties for the collection of which such levy has been made.

Source:Laws 1959, c. 360, § 3, p. 1277; R.S.1943, (1986), § 77-631.03; Laws 1989, Spec. Sess., LB 7, § 6; Laws 1995, LB 490, § 107;    Laws 2007, LB334, § 60.    


77-1250.05. Taxation of air carriers; disposition of funds collected.

The money realized from any levy under sections 77-1250.03 and 77-1250.04 shall be first applied by the Tax Commissioner toward payment of any costs incurred by virtue of such levy and next to the payment of such taxes, interest, and penalties, and any balance remaining shall then be paid over to the person entitled thereto.

Source:Laws 1959, c. 360, § 4, p. 1277; R.S.1943, (1986), § 77-631.04; Laws 1989, Spec. Sess., LB 7, § 7; Laws 1995, LB 490, § 108;    Laws 2007, LB334, § 61.    


77-1251. Repealed. Laws 1977, LB 518, § 14.

77-1252. Repealed. Laws 1977, LB 518, § 14.

77-1253. Repealed. Laws 1977, LB 518, § 14.

77-1254. Repealed. Laws 1977, LB 518, § 14.

77-1255. Repealed. Laws 1977, LB 518, § 14.

77-1256. Repealed. Laws 1977, LB 518, § 14.

77-1257. Repealed. Laws 1977, LB 518, § 14.

77-1258. Repealed. Laws 1977, LB 518, § 14.

77-1259. Repealed. Laws 1977, LB 518, § 14.

77-1260. Repealed. Laws 1977, LB 518, § 14.

77-1261. Repealed. Laws 1977, LB 518, § 14.

77-1262. Repealed. Laws 1977, LB 518, § 16.

77-1263. Repealed. Laws 1977, LB 518, § 16.

77-1264. Repealed. Laws 1977, LB 518, § 16.

77-1265. Repealed. Laws 1977, LB 518, § 16.

77-1266. Repealed. Laws 1977, LB 518, § 16.

77-1267. Repealed. Laws 1977, LB 518, § 16.

77-1268. Repealed. Laws 1977, LB 518, § 16.

77-1269. Repealed. Laws 1971, LB 30, § 1.

77-1270. Repealed. Laws 1971, LB 30, § 1.

77-1271. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1272. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1273. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1274. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1275. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1276. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1277. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1278. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1279. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1280. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1281. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1282. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1283. Repealed. Laws 1992, Second Spec. Sess., LB 1, § 181.

77-1301. Real property; assessment date; notice of preliminary valuation; destroyed real property; adjustment.

(1) All real property in this state subject to taxation shall be assessed as of January 1 at 12:01 a.m., and such assessment shall be used as a basis of taxation until the next assessment unless the property is destroyed real property as defined in section 77-1307, in which case the assessed value for the destroyed real property shall be adjusted as provided in sections 77-1307 to 77-1309.

(2) Beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the county assessor shall provide notice of preliminary valuations to real property owners on or before January 15 of each year. Such notice shall be (a) mailed to the taxpayer or (b) published on a website maintained by the county assessor or by the county.

(3) The county assessor shall complete the assessment of real property on or before March 19 of each year, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the county assessor shall complete the assessment of real property on or before March 25 of each year.

Source:Laws 1903, c. 73, § 105, p. 422; R.S.1913, § 6420; Laws 1921, c. 125, § 1, p. 535; C.S.1922, § 5955; Laws 1925, c. 167, § 1, p. 439; C.S.1929, § 77-1601; Laws 1933, c. 130, § 1, p. 507; C.S.Supp.,1941, § 77-1601; R.S.1943, § 77-1301; Laws 1945, c. 188, § 1, p. 581; Laws 1947, c. 251, § 31, p. 823; Laws 1947, c. 255, § 1, p. 835; Laws 1953, c. 270, § 1, p. 891; Laws 1953, c. 269, § 1, p. 889; Laws 1955, c. 288, § 19, p. 913; Laws 1959, c. 355, § 20, p. 1263; Laws 1959, c. 370, § 1, p. 1301; Laws 1963, c. 450, § 1, p. 1474; Laws 1980, LB 742, § 1; Laws 1984, LB 833, § 1;    Laws 1987, LB 508, § 36;    Laws 1992, LB 1063, § 114; Laws 1992, Second Spec. Sess., LB 1, § 87;    Laws 1997, LB 270, § 63;    Laws 1999, LB 194, § 15;    Laws 2004, LB 973, § 18;    Laws 2011, LB384, § 6;    Laws 2019, LB512, § 14.    


Annotations

77-1301.01. Appraisal; standards; establishment by Tax Commissioner; contracts; approval.

The Tax Commissioner shall adopt and promulgate rules and regulations to establish standards for the appraisal of classes or subclasses of real property in a county. The standards established shall require that the appraisal shall be based upon the use of manuals developed pursuant to section 77-1330 and shall arrive at a determination of taxable value on a consistent basis in accordance with the methods prescribed in sections 77-112 and 77-201. The Tax Commissioner shall also establish standards for appraisal contracts which shall, among other provisions, require that all such contracts shall require the use of manuals developed pursuant to section 77-1330. No appraisal contract shall be valid until approved in writing by the Tax Commissioner.

Source:Laws 1963, c. 450, § 2, p. 1474; Laws 1969, c. 672, § 1, p. 2594; Laws 1979, LB 159, § 5;    Laws 1985, LB 30, § 3;    Laws 1986, LB 817, § 9;    Laws 1989, LB 361, § 7;    Laws 1991, LB 320, § 3;    Laws 1992, LB 1063, § 115; Laws 1992, Second Spec. Sess., LB 1, § 88;    Laws 1995, LB 490, § 109;    Laws 1997, LB 270, § 64;    Laws 2007, LB334, § 62.    


Annotations

77-1301.02. Repealed. Laws 1997, LB 270, § 110.

77-1301.03. Repealed. Laws 1997, LB 270, § 110.

77-1301.04. Repealed. Laws 1997, LB 270, § 110.

77-1301.05. Repealed. Laws 1969, c. 672, § 5.

77-1301.06. Repealed. Laws 1997, LB 270, § 110.

77-1301.07. Repealed. Laws 1997, LB 270, § 110.

77-1301.08. Repealed. Laws 1997, LB 270, § 110.

77-1301.09. Repealed. Laws 1987, LB 508, § 50.

77-1301.10. Repealed. Laws 1987, LB 508, § 50.

77-1301.11. Repealed. Laws 1987, LB 508, § 50.

77-1301.12. Repealed. Laws 1997, LB 270, § 110.

77-1301.13. Repealed. Laws 1997, LB 270, § 110.

77-1301.14. Repealed. Laws 1997, LB 270, § 110.

77-1301.15. Repealed. Laws 1997, LB 270, § 110.

77-1301.16. Repealed. Laws 1997, LB 270, § 110.

77-1302. Repealed. Laws 1959, c. 370, § 6.

77-1303. Assessment roll.

(1) On or before March 19 of each year, the county assessor or county clerk shall make up an assessment roll of the taxable real property in the county, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the county assessor or county clerk shall make up an assessment roll of the taxable real property in the county on or before March 25.

(2) The county assessor or county clerk shall enter in the proper column, opposite each respective parcel, the name of the owner thereof so far as he or she is able to ascertain the same. The assessment roll shall contain columns in which may be shown the number of acres or lots and the value thereof, the improvements and the value thereof, the total value of the acres or lots and improvements, and the improvements on leased lands and the value and owner thereof and such other columns as may be required.

Source:Laws 1903, c. 73, § 106, p. 422; Laws 1905, c. 111, § 1, p. 510; R.S.1913, § 6421; Laws 1919, c. 137, § 1, p. 314; C.S.1922, § 5956; C.S.1929, § 77-1602; Laws 1943, c. 175, § 1, p. 609; R.S.1943, § 77-1303; Laws 1945, c. 189, § 1, p. 583; Laws 1947, c. 250, § 22, p. 795; Laws 1947, c. 251, § 32, p. 824; Laws 1951, c. 264, § 1, p. 892; Laws 1953, c. 270, § 2, p. 893; Laws 1955, c. 288, § 20, p. 915; Laws 1959, c. 355, § 21, p. 1265; Laws 1979, LB 187, § 204;    Laws 1981, LB 179, § 10;    Laws 1987, LB 508, § 42;    Laws 1988, LB 842, § 1;    Laws 1992, LB 1063, § 118; Laws 1992, Second Spec. Sess., LB 1, § 91;    Laws 1997, LB 270, § 65;    Laws 1999, LB 194, § 16;    Laws 2004, LB 973, § 19;    Laws 2005, LB 263, § 7;    Laws 2011, LB384, § 7.    


Annotations

77-1304. Repealed. Laws 1997, LB 270, § 110.

77-1305. Certificate of assessment; contents; effect.

The county assessor, when requested by any person, shall give a certificate of assessment of real property showing the amount, kind, location, and taxable value of property assessed, and such certificate shall be evidence of the legal assessment of such property for the year.

Source:Laws 1997, LB 270, § 66.    


77-1306. Repealed. Laws 1959, c. 370, § 6.

77-1306.01. Lands adjacent to rivers and streams; survey; report.

In all counties where land ownership may from time to time be altered to add new lands to the tax rolls due to the activity of any river, stream, or other body of water along or bordering state lines, whether by accretion or avulsion, it shall be the duty of the county surveyor prior to June 1, 1960, and at least once within each five-year period thereafter either to cause to be surveyed any lands believed to have been altered in such manner or to certify in writing that it is his or her opinion that no alteration of ownership of any land in the county from that shown by the then current tax rolls has occurred due to the action of any river, stream, or other body of water along or bordering state lines. A report of such survey or surveys, showing the extent of any probable alteration of ownership due to the action of a river, stream, or other body of water along or bordering state lines, or a certificate of no change as provided shall be filed with the county assessor within the periods hereinbefore stated. In any county where there is no regularly elected or appointed county surveyor the county board shall appoint a qualified surveyor to carry out the provisions of this section. In the event of a failure of county officials to act as directed by this section, within the periods stated, the Property Tax Administrator may appoint a qualified surveyor to act as provided by this section, and all costs incurred shall be paid by the county. In all counties where land ownership may from time to time be altered due to the activity of any river, stream, or other body of water not along or bordering state lines, whether by accretion or avulsion, it shall be the duty of the county surveyor to cause to be surveyed any lands believed to have been altered when directed by the county board of equalization or when requested by the Property Tax Administrator. If such a survey is ordered by the county board of equalization or requested by the Property Tax Administrator, the county surveyor shall perform the same duties as when a river, stream, or other body of water is along or borders state lines.

Source:Laws 1959, c. 370, § 5, p. 1305; Laws 1995, LB 490, § 120.    


77-1307. Destroyed real property; legislative findings and declarations; terms, defined.

(1) The Legislature finds and declares that fires, earthquakes, floods, and tornadoes occur with enough frequency in this state that provision should be made to grant property tax relief to owners of real property adversely affected by such events.

(2) For purposes of sections 77-1307 to 77-1309:

(a) Calamity means a disastrous event, including, but not limited to, a fire, an earthquake, a flood, a tornado, or other natural event which significantly affects the assessed value of real property;

(b) Destroyed real property means real property that suffers significant property damage as a result of a calamity occurring on or after January 1, 2019, and before July 1 of the current assessment year. Destroyed real property does not include property suffering significant property damage that is caused by the owner of the property; and

(c) Significant property damage means:

(i) Damage to an improvement exceeding twenty percent of the improvement's assessed value in the current tax year as determined by the county assessor;

(ii) Damage to land exceeding twenty percent of a parcel's assessed land value in the current tax year as determined by the county assessor; or

(iii) Damage exceeding twenty percent of the property's assessed value in the current tax year as determined by the county assessor if (A) such property is located in an area that has been declared a disaster area by the Governor and (B) a housing inspector or health inspector has determined that the property is uninhabitable or unlivable.

Source:Laws 2019, LB512, § 15.    


77-1308. Destroyed real property; property owner; file report; form; county board of equalization; duties.

(1) If real property becomes destroyed real property during the current assessment year, the property owner shall file a report of the destroyed real property with the county assessor and county clerk of the county in which the property is located on or before July 15 of the current assessment year. The report of destroyed real property shall be made on a form prescribed by the Tax Commissioner.

(2) If the destroyed real property was a mobile home that was moved pursuant to section 77-3708 and required to pay an accelerated tax pursuant to section 77-1725.01, the property owner shall report the destroyed real property on or before July 15 in the same manner as other real property. The property owner may make a request for refund of the accelerated tax paid pursuant to section 77-1734.01 for any portion of value reduced by the county board of equalization pursuant to section 77-1309.

(3) The county board of equalization shall consider any report of destroyed real property received pursuant to this section, and the assessment of such property shall be made by the county board of equalization in accordance with section 77-1309. After county board of equalization action pursuant to section 77-1309, the county assessor shall correct the current year's assessment roll as provided in section 77-1613.02.

Source:Laws 2019, LB512, § 16.    


77-1309. Destroyed real property; county board of equalization; adjust assessed valuation; notice; protests; filing; decision; appeal.

(1) If the county board of equalization receives a report of destroyed real property pursuant to section 77-1308, the county board of equalization shall adjust the assessed value of the destroyed real property to its assessed value on the date it suffers significant property damage.

(2) The county board of equalization may meet on or after June 1 and on or before July 25, or on or before August 10 if the board has adopted a resolution to extend the deadline for hearing protests under section 77-1502, for the purpose of considering the assessed value of destroyed real property pursuant to this section. Any action of the county board of equalization which changes the assessed value of destroyed real property pursuant to this section shall be for the current assessment year only.

(3) The county board of equalization shall give notice of the assessed value of the destroyed real property to the record owner or agent at his or her last-known address. Protests of the assessed value proposed for destroyed real property pursuant to this section shall be filed with the county board of equalization within thirty days after the mailing of the notice. All provisions of section 77-1502 except dates for filing a protest, the period for hearing protests, and the date for mailing notice of the county board of equalization's decision are applicable to any protest filed pursuant to this section. The county board of equalization shall issue its decision on the protest within thirty days after the filing of the protest. Within seven days after the county board of equalization's final decision, the county clerk shall mail to the protester written notice of the decision. The notice shall contain a statement advising the protester that a report of the decision is available at the county clerk's or county assessor's office, whichever is appropriate.

(4) The action of the county board of equalization upon a protest filed pursuant to this section may be appealed to the Tax Equalization and Review Commission within thirty days after the board's final decision.

Source:Laws 2019, LB512, § 17.    


77-1310. Repealed. Laws 1947, c. 251, § 42.

77-1311. County assessor; duties.

The county assessor shall have general supervision over and direction of the assessment of all property in his or her county. In addition to the other duties provided by law, the county assessor shall:

(1) Annually revise the real property assessment for the correction of errors;

(2) When a parcel has been assessed and thereafter part or parts are transferred to a different ownership, set off and apportion to each its just and equitable portion of the assessment;

(3) Obey all rules and regulations made under Chapter 77 and the instructions and orders sent out by the Tax Commissioner and the Tax Equalization and Review Commission;

(4) Examine the records in the office of the register of deeds and county clerk for the purpose of ascertaining whether the property described in producing mineral leases, contracts, and bills of sale, have been fully and correctly listed and add to the assessment roll any property which has been omitted;

(5) Prepare the assessment roll as defined in section 77-129 and described in section 77-1303; and

(6) Beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, provide, between January 15 and March 1 of each year, the opportunity to real property owners to meet in person with the county assessor or the county assessor's designated representative. If the real property owner does not notify the county assessor or the county assessor's designated representative by February 1 of the real property owner's intent to meet in person, the real property owner waives the opportunity to meet in person with the county assessor or the county assessor's designated representative. During such meetings, the county assessor or the county assessor's designated representative shall provide a basis for the property valuation contained in the notice of preliminary valuation sent pursuant to section 77-1301 and accept any information the property owner provides relevant to the property value.

Source:Laws 1903, c. 73, § 113, p. 425; Laws 1905, c. 111, § 3, p. 512; Laws 1909, c. 111, § 1, p. 442; Laws 1911, c. 104, § 12, p. 377; R.S.1913, § 6428; Laws 1921, c. 137, § 1, p. 602; C.S.1922, § 5963; C.S.1929, § 77-1609; Laws 1935, c. 133, § 4, p. 481; Laws 1935, Spec. Sess., c. 14, § 5, p. 91; Laws 1939, c. 28, § 17, p. 155; C.S.Supp.,1941, § 77-1609; R.S.1943, § 77-1311; Laws 1947, c. 250, § 24, p. 796; Laws 1951, c. 257, § 2, p. 882; Laws 1959, c. 370, § 2, p. 1303; Laws 1972, LB 1069, § 3;    Laws 1979, LB 187, § 205;    Laws 1986, LB 1177, § 33;    Laws 1990, LB 821, § 49;    Laws 1992, LB 719A, § 165;    Laws 1994, LB 1275, § 10;    Laws 1995, LB 490, § 121;    Laws 1997, LB 270, § 67;    Laws 1997, LB 397, § 13;    Laws 2001, LB 170, § 5;    Laws 2003, LB 292, § 11;    Laws 2005, LB 263, § 8;    Laws 2007, LB334, § 63;    Laws 2011, LB384, § 8.    


Annotations

77-1311.01. Valuation of property; rounding numbers.

The county assessor may, in extending a value on any item of real property, reject all values that fall below two dollars and fifty cents and extend all values of two dollars and fifty cents or more to the next higher five dollars or multiples thereof, making all valuations end in zero or five.

Source:Laws 1987, LB 508, § 14;    R.S.Supp.,1988, § 77-430; Laws 1990, LB 821, § 50;    Laws 1992, LB 1063, § 119; Laws 1992, Second Spec. Sess., LB 1, § 92.    


77-1311.02. Plan of assessment; preparation.

The county assessor shall, on or before June 15 each year, prepare a plan of assessment which shall describe the assessment actions the county assessor plans to make for the next assessment year and two years thereafter. The plan shall indicate the classes or subclasses of real property that the county assessor plans to examine during the years contained in the plan of assessment. The plan shall describe all the assessment actions necessary to achieve the levels of value and quality of assessment practices required by law and the resources necessary to complete those actions. The plan shall be presented to the county board of equalization on or before July 31 each year. The county assessor may amend the plan, if necessary, after the budget is approved by the county board. A copy of the plan and any amendments thereto shall be mailed to the Department of Revenue on or before October 31 each year.

Source:Laws 2005, LB 263, § 9;    Laws 2007, LB334, § 64.    


77-1311.03. County assessor; systematic inspection and review; adjustment required.

On or before March 19 of each year, each county assessor shall conduct a systematic inspection and review by class or subclass of a portion of the taxable real property parcels in the county for the purpose of achieving uniform and proportionate valuations and assuring that the real property record data accurately reflects the property, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the inspection and review shall be conducted on or before March 25. The county assessor shall adjust the value of all other taxable real property parcels by class or subclass in the county so that the value of all real property is uniform and proportionate. The county assessor shall determine the portion to be inspected and reviewed each year to assure that all parcels of real property in the county have been inspected and reviewed no less frequently than every six years.

Source:Laws 2007, LB334, § 100;    Laws 2011, LB384, § 9.    


77-1312. County assessor; duty to file annual inventory of county personal property.

The county assessor shall prepare and file the annual inventory statement with the county board of his county with respect to all the county personal property in his custody or possession as provided in sections 23-346 to 23-350.

Source:Laws 1939, c. 28, § 17, p. 155; C.S.Supp.,1941, § 77-1609; R.S.1943, § 77-1312.


77-1313. Property; assessment; duty of county officer to assist; penalty.

It shall be the duty of the register of deeds, county clerk, county judge, clerk of the district court and all other county officers to assist the county assessor, in the examination of the records of their respective offices, and they shall give to the county assessor any information in their possession that will assist him in the assessment of property. Any county officer, who shall fail, neglect or refuse to perform any of the duties imposed upon him by this section, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in the sum of not less than fifty dollars nor more than five hundred dollars for each offense.

Source:Laws 1903, c. 73, § 144, p. 427; R.S.1913, § 6429; C.S.1922, § 5964; C.S.1929, § 77-1610; R.S.1943, § 77-1313.


77-1314. County assessor; use of income approach; when; duties; petition Tax Equalization and Review Commission; hearing; order.

(1) When determining the actual value of two or more vacant or unimproved lots in the same subdivision and the same tax district that are owned by the same person and are held for sale or resale and that were elected to be treated as one parcel pursuant to subsection (3) of section 77-132, the county assessor shall utilize the income approach, including the use of a discounted cash-flow analysis.

(2) If a county assessor, based on the facts and circumstances, believes that the income approach, including the use of a discounted cash-flow analysis, does not result in a valuation at actual value, then the county assessor shall present such facts and circumstances to the county board of equalization. If the county board of equalization, based on such facts and circumstances, concurs with the county assessor, then the county board of equalization shall petition the Tax Equalization and Review Commission to consider the county assessor's utilization of another professionally accepted mass appraisal technique that, based on the facts and circumstances presented by a county board of equalization, would result in a substantially different determination of actual value. Petitions must be filed within thirty days after the property is assessed. Hearings held pursuant to this section may be held by means of videoconference or telephone conference. The burden of proof is on the petitioning county board of equalization to show that failure to make an adjustment to the professionally accepted mass appraisal technique utilized would result in a value that is not equitable and in accordance with the law. At the hearing, the commission may receive testimony from any interested person. After a hearing, the commission shall, within the powers granted in section 77-5023, enter its order based on evidence presented to it at such hearing.

Source:Laws 2014, LB191, § 16.    


77-1315. Adjustment to real property assessment roll; county assessor; duties; publication.

(1) The county assessor shall, after March 19 and on or before June 1, implement adjustments to the real property assessment roll for actions of the Tax Equalization and Review Commission, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the adjustments shall be implemented after March 25 and on or before June 1.

(2) On or before June 1, in addition to the notice of preliminary valuation sent pursuant to section 77-1301, the county assessor shall notify the owner of record as of May 20 of every item of real property which has been assessed at a value different than in the previous year. Such notice shall be given by first-class mail addressed to such owner's last-known address. It shall identify the item of real property and state the old and new valuation, the date of convening of the county board of equalization, and the dates for filing a protest.

(3) Immediately upon completion of the assessment roll, the county assessor shall cause to be published in a newspaper of general circulation in the county a certification that the assessment roll is complete and notices of valuation changes have been mailed and provide the final date for filing valuation protests with the county board of equalization.

(4) The county assessor shall annually, on or before June 6, post in his or her office and, as designated by the county board, mail to a newspaper of general circulation and to licensed broadcast media in the county the assessment ratios as found in his or her county as determined by the Tax Equalization and Review Commission and any other statistical measures, including, but not limited to, the assessment-to-sales ratio, the coefficient of dispersion, and the price-related differential.

Source:Laws 1903, c. 73, § 116, p. 427; Laws 1909, c. 111, § 1, p. 444; R.S.1913, § 6431; C.S.1922, § 5966; Laws 1927, c. 179, § 1, p. 519; C.S.1929, § 77-1612; R.S.1943, § 77-1315; Laws 1947, c. 250, § 26, p. 798; Laws 1947, c. 251, § 34, p. 825; Laws 1953, c. 271, § 1, p. 896; Laws 1953, c. 270, § 4, p. 894; Laws 1953, c. 272, § 1, p. 897; Laws 1959, c. 355, § 22, p. 1266; Laws 1959, c. 370, § 4, p. 1305; Laws 1971, LB 209, § 1;    Laws 1979, LB 187, § 206;    Laws 1984, LB 660, § 1;    Laws 1992, LB 1063, § 120; Laws 1992, Second Spec. Sess., LB 1, § 93;    Laws 1994, LB 902, § 16;    Laws 1995, LB 452, § 18;    Laws 1997, LB 270, § 68;    Laws 1999, LB 194, § 17;    Laws 2001, LB 156, § 1;    Laws 2001, LB 170, § 6;    Laws 2002, LB 994, § 12;    Laws 2004, LB 973, § 20;    Laws 2005, LB 261, § 2;    Laws 2011, LB384, § 10;    Laws 2012, LB822, § 1.    


Cross References

Annotations

77-1315.01. Overvaluation or undervaluation; county assessor; report.

After March 19 and on or before July 25 or on or before August 10 in counties that have adopted a resolution to extend the deadline for hearing protests under section 77-1502, the county assessor shall report to the county board of equalization any overvaluation or undervaluation of any real property, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the report shall be made after March 25 and on or before July 25 or on or before August 10 in counties that have adopted a resolution to extend the deadline for hearing protests under section 77-1502. The county board of equalization shall consider the report in accordance with section 77-1504.

The current year's assessed valuation of any real property shall not be changed by the county assessor after March 19 except by action of the Tax Equalization and Review Commission or the county board of equalization, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the current year's assessed valuation of any real property shall not be changed after March 25 except by action of the commission or the county board of equalization.

Source:Laws 1997, LB 270, § 69;    Laws 1999, LB 194, § 18;    Laws 2004, LB 973, § 21;    Laws 2005, LB 261, § 3;    Laws 2005, LB 283, § 1;    Laws 2011, LB384, § 11.    


77-1316. Repealed. Laws 1997, LB 270, § 110.

77-1316.01. Correction of tax rolls.

The county assessor of any county shall, at any time, correct the tax rolls as provided in section 77-1613.02 for any real property listed on the assessment roll but omitted from the tax roll.

Source:Laws 1921, c. 133, art. XI, § 6, p. 592; C.S.1922, § 5903; C.S.1929, § 77-1006; Laws 1939, c. 100, § 1, p. 457; C.S.Supp.,1941, § 77-1006; R.S.1943, § 77-518; Laws 1947, c. 250, § 11, p. 791; Laws 1949, c. 226, § 1, p. 631; R.S.1943, (1986), § 77-518; Laws 1997, LB 270, § 70.    


Annotations

77-1317. Real property; assessment; omitted lands; correction; exceptions.

It shall be the duty of the county assessor to report to the county board of equalization all real property in his or her county that, for any reason, was omitted from the assessment roll for the current year, after the date specified in section 77-123, or any former year. The assessment shall be made by the county board of equalization in accordance with sections 77-1504 and 77-1507. After county board of equalization action pursuant to section 77-1504 or 77-1507, the county assessor shall correct the assessment and tax rolls as provided in section 77-1613.02. No real property shall be assessed for any prior year under this section when such real property has changed ownership otherwise than by will, inheritance, or gift.

Source:Laws 1903, c. 73, § 118, p. 428; R.S.1913, § 6433; C.S.1922, § 5968; C.S.1929, § 77-1614; R.S.1943, § 77-1317; Laws 1947, c. 250, § 28, p. 798; Laws 1949, c. 232, § 1, p. 643; Laws 1992, LB 1063, § 121; Laws 1992, Second Spec. Sess., LB 1, § 94;    Laws 1997, LB 270, § 71;    Laws 1999, LB 194, § 19;    Laws 2004, LB 973, § 22;    Laws 2011, LB384, § 12.    


Annotations

77-1318. Real property taxes; back interest and penalties; when; appeal.

All taxes charged under section 77-1317 shall be exempt from any back interest or penalty and shall be collected in the same manner as other taxes levied upon real estate, except for taxes charged on improvements to real property made after September 1, 1980. Interest at the rate provided in section 77-207 and the following penalties and interest on penalties for late reporting or failure to report such improvements pursuant to section 77-1318.01 shall be collected in the same manner as other taxes levied upon real property. The penalty for late reporting or failure to report improvements made to real property after September 1, 1980, shall be as follows: (1) A penalty of twelve percent of the tax due on the improvements for each taxing period for improvements voluntarily filed or reported after March 19 has passed, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, after March 25 has passed; and (2) a penalty of twenty percent of the tax due on improvements for each taxing period for improvements not voluntarily reported for taxation purposes after March 19 has passed, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, after March 25 has passed. Interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, shall be assessed upon such penalty from the date of delinquency of the tax until paid. No penalty excluding interest shall be charged in excess of one thousand dollars per year. For purposes of this section, improvement shall mean any new construction of or change to an item of real property as defined in section 77-103.

Any additional taxes, penalties, or interest on penalties imposed pursuant to this section may be appealed in the same manner as appeals are made under section 77-1233.06.

Source:Laws 1903, c. 73, § 119, p. 428; R.S.1913, § 6434; C.S.1922, § 5969; C.S.1929, § 77-1615; R.S.1943, § 77-1318; Laws 1980, LB 689, § 2; Laws 1984, LB 835, § 7;    Laws 1987, LB 508, § 43;    Laws 1990, LB 821, § 51;    Laws 1997, LB 270, § 72;    Laws 1999, LB 194, § 20;    Laws 2004, LB 973, § 23;    Laws 2011, LB384, § 13.    


77-1318.01. Improvements to real property; information statement filed with county assessor; forms; contents.

(1) In order that improvements to real property are properly assessed for property tax purposes, no building amounting to a value of two thousand five hundred dollars or more shall hereafter be erected, or structurally altered or repaired, and no electrical, heating, plumbing, or other installation or connection, or other improvement to real property, amounting to a value of two thousand five hundred dollars or more, shall hereafter be made until an information statement has been filed with the county assessor in the county in which the improvement is to be made. Common carriers and public utilities regulated either by the State of Nebraska or the federal government, or owned, operated, or leased by a political subdivision thereof, shall not be required to file an information statement for the structural alteration, or repair of a building, or for the electrical, heating, plumbing, or other installation or connection, or other improvement to real property owned by it or pursuant to a contract or a service agreement. Any building permit required and issued by a county or municipal officer shall fulfill the requirements of this section if it contains the information required by this section and if a copy is provided to the county assessor by the officer.

(2) If the county or municipality does not require a permit under its zoning laws, the information statement shall be filed with the county assessor. The form for the information statement shall be provided by the county assessor and shall be filed on or before December 31 of the year of construction, repair, alteration, or improvement.

(3) The information statement shall show the following: (a) Name and address of the owner of the property; (b) name and address of the applicant, if different than owner; (c) name of prime contractor for the project, if there is one; (d) location of the property, size, nature, intended use, and approximate material cost of the improvement; and (e) the estimated period of construction.

Source:Laws 1969, c. 624, § 1, p. 2522; Laws 1997, LB 270, § 73;    Laws 2002, LB 994, § 13.    


77-1318.02. Repealed. Laws 1984, LB 835, § 18.

77-1319. Repealed. Laws 1959, c. 370, § 6.

77-1320. Repealed. Laws 1965, c. 489, § 1.

77-1320.01. Repealed. Laws 1965, c. 475, § 7.

77-1320.02. Repealed. Laws 1987, LB 508, § 50.

77-1320.03. Repealed. Laws 1987, LB 508, § 50.

77-1320.04. Transferred to section 77-412.01.

77-1320.05. Repealed. Laws 1987, LB 508, § 50.

77-1320.06. Repealed. Laws 1987, LB 508, § 50.

77-1321. Repealed. Laws 1965, c. 489, § 1.

77-1322. Assessment of property; Board of Equalization; special assessments; invalid assessments for want of adequate notice; reassessment and relevy authorized.

The governing body of all cities, including cities which have adopted or which hereafter adopt a home rule charter under and pursuant to sections 2 to 5, inclusive, of Article XI of the Constitution of this state, villages, public corporations, and political subdivisions of the State of Nebraska, sitting as a board of equalization and assessment shall have power in all cases where special assessments heretofore made or which may hereafter be made for any purpose have been or may be declared void or invalid, for want of adequate notice, to reassess and relevy a new assessment equal to the special benefits and not exceeding the cost of the improvement for which the assessment was made upon the property originally assessed, and such reassessment and relevy shall be made substantially in the manner provided for making original assessments of like nature, and when so made shall constitute a lien upon the property prior and superior to all other liens except liens for taxes or other special assessments, and taxes so reassessed shall be enforced and collected as other special taxes; and in making such reassessment the governing body sitting as a board of equalization and assessment shall take into consideration payments, if any, made on behalf of the property reassessed, under such prior void assessment; and if such prior payments exceed the special assessment on the given property as finally determined, the excess, with lawful interest thereon, shall be refunded to the party paying the same.

Source:Laws 1957, c. 332, § 1, p. 1165.


77-1323. Public improvement; furnishing labor or material; certificate that equipment has been assessed.

Every person, partnership, limited liability company, association, or corporation furnishing labor or material in the repair, alteration, improvement, erection, or construction of any public improvement shall furnish a certified statement to be attached to the contract that all equipment to be used on the project, except that acquired since the assessment date, has been assessed for taxation for the current year, giving the county where assessed.

Source:Laws 1963, c. 436, § 1, p. 1453; Laws 1993, LB 121, § 496.    


77-1324. Public improvement; furnishing labor or material; falsifying certificate that equipment has been assessed; violation; penalty.

Any person, partnership, limited liability company, association, or corporation falsifying any statement required by section 77-1323 shall be guilty of a Class IV misdemeanor.

Source:Laws 1963, c. 436, § 2, p. 1453; Laws 1977, LB 39, § 223;    Laws 1993, LB 121, § 497.    


77-1325. Repealed. Laws 1999, LB 36, § 41.

77-1326. Repealed. Laws 1986, LB 817, § 15.

77-1327. Legislative intent; Property Tax Administrator; sales file; studies; powers and duties.

(1) It is the intent of the Legislature that accurate and comprehensive information be developed by the Property Tax Administrator and made accessible to the taxing officials and property owners in order to ensure the uniformity and proportionality of the assessments of real property valuations in the state in accordance with law and to provide the statistical and narrative reports pursuant to section 77-5027.

(2) All transactions of real property for which the statement required in section 76-214 is filed shall be available for development of a sales file by the Property Tax Administrator. All transactions with stated consideration of more than one hundred dollars or upon which more than two dollars and twenty-five cents in documentary stamp taxes are paid shall be considered sales. All sales shall be deemed to be arm's length transactions unless determined to be otherwise under professionally accepted mass appraisal techniques. The Department of Revenue shall not overturn a determination made by a county assessor regarding the qualification of a sale unless the department reviews the sale and determines through the review that the determination made by the county assessor is incorrect.

(3) The Property Tax Administrator annually shall make and issue comprehensive assessment ratio studies of the average level of assessment, the degree of assessment uniformity, and the overall compliance with assessment requirements for each major class of real property subject to the property tax in each county. The comprehensive assessment ratio studies shall be developed in compliance with professionally accepted mass appraisal techniques and shall employ such statistical analysis as deemed appropriate by the Property Tax Administrator, including measures of central tendency and dispersion. The comprehensive assessment ratio studies shall be based upon the sales file as developed in subsection (2) of this section and shall be used by the Property Tax Administrator for the analysis of the level of value and quality of assessment for purposes of section 77-5027 and by the Property Tax Administrator in establishing the adjusted valuations required by section 79-1016. Such studies may also be used by assessing officials in establishing assessed valuations.

(4) For purposes of determining the level of value of agricultural and horticultural land subject to special valuation under sections 77-1343 to 77-1347.01, the Property Tax Administrator shall annually make and issue a comprehensive study developed in compliance with professionally accepted mass appraisal techniques to establish the level of value if in his or her opinion the level of value cannot be developed through the use of the comprehensive assessment ratio studies developed in subsection (3) of this section.

(5) County assessors and other taxing officials shall electronically report data on the assessed valuation and other features of the property assessment process for such periods and in such form and content as the Property Tax Administrator shall deem appropriate. The Property Tax Administrator shall so construct and maintain the system used to collect and analyze the data to enable him or her to make intracounty comparisons of assessed valuation, including school districts and other political subdivisions, as well as intercounty comparisons of assessed valuation, including school districts and other political subdivisions. The Property Tax Administrator shall include analysis of real property sales pursuant to land contracts and similar transfers at the time of execution of the contract or similar transfer.

Source:Laws 1969, c. 622, § 3, p. 2513; Laws 1979, LB 187, § 207;    Laws 1980, LB 834, § 61; Laws 1992, LB 719A, § 166;    Laws 1994, LB 1275, § 11;    Laws 1995, LB 452, § 19;    Laws 1995, LB 490, § 124;    Laws 1999, LB 36, § 29;    Laws 1999, LB 194, § 21;    Laws 2001, LB 170, § 7;    Laws 2002, LB 994, § 14;    Laws 2005, LB 40, § 8;    Laws 2007, LB334, § 65;    Laws 2009, LB166, § 8;    Laws 2011, LB210, § 5.    


Annotations

77-1328. Repealed. Laws 1987, LB 508, § 50.

77-1329. Tax maps; county assessor; maintain.

The Property Tax Administrator shall require each county assessor to maintain tax maps in accordance with standards specified by the Property Tax Administrator. Whenever necessary to correct mapping deficiencies, the Property Tax Administrator shall install standard maps or approve mapping plans and supervise map production. The Property Tax Administrator may require the county to reimburse the state for tax maps installed.

Source:Laws 1969, c. 622, § 5, p. 2514; Laws 1995, LB 490, § 125.    


77-1330. Property Tax Administrator and Tax Commissioner; guides for assessors; prepare; issue; failure to implement guide; corrective measures; procedures; cost; payment; State Treasurer; duties; removal of county assessor or deputy from office; appeal.

(1) The Property Tax Administrator and Tax Commissioner shall prepare, issue, and annually revise guides for county assessors in the form of property tax laws, rules, regulations, manuals, and directives. The Property Tax Administrator and Tax Commissioner may issue such directives without the necessity of compliance with the terms of the Administrative Procedure Act relating to the promulgation of rules and regulations. The assessment and appraisal function performed by counties shall comply with the standards, and county assessors shall continually use the materials in the performance of their duties. The standards shall not require the implementation of a specific computer software or hardware system if the existing software or system produces data and reports in compliance with the standards.

(2) The Property Tax Administrator, or his or her agent or representative, may examine or cause to have examined any books, papers, records, or memoranda of any county relating to the assessment of property to determine compliance with the laws, rules, regulations, manuals, and directives described in subsection (1) of this section. Such production of records shall not include the photocopying of records between January 1 and April 1. Failure to provide such records to the Property Tax Administrator may constitute grounds for the suspension of the assessor's certificate of any county assessor who willfully fails to make requested records available to the Property Tax Administrator.

(3) After an examination the Property Tax Administrator shall provide a written report of the results to the county assessor and county board. If the examination indicates a failure to meet the standards contained in the laws, rules, regulations, manuals, and directives, the Property Tax Administrator shall, in the report, set forth the facts and cause of such failures as well as corrective measures the county or county assessor may implement to correct those failures.

(4) After the issuance of the report of the results of the examination, the Property Tax Administrator may seek to order a county or county assessor to take corrective measures to remedy any failure to comply with the materials described in subsection (1) of this section. Such corrective orders may only be issued after written notice and a hearing before the Tax Commissioner conducted at least ten days after the issuance of the written notice of hearing. The performance of such corrective measures shall be implemented by the county to which the order is issued. If the county fails to implement such corrective measures, the Property Tax Administrator may seek to suspend the assessment function of the county under the terms of subsection (5) of this section and shall implement the corrective measures pursuant to subsection (6) of this section. The performance of such corrective measures shall be a charge on the county, and upon completion, the Property Tax Administrator shall notify the county board of the cost and make demand for such cost. If payment is not received within one hundred twenty days after the start of the next fiscal year, the Tax Commissioner shall report such fact to the State Treasurer. The State Treasurer shall immediately make payment to the Department of Revenue for the costs incurred by the department for such corrective measures. The payment shall be made out of any money to which such county may be entitled under the Compressed Fuel Tax Act, Chapter 77, articles 27 and 35, and sections 66-482 to 66-4,149.

(5) If, within one year from the service of the order, the measures in the corrective order have not been taken, the Tax Commissioner (a) may, at any time during the continuance of such failure, issue an order requiring the county assessor and county board to show cause why the authority of the county with respect to assessments or any matter related thereto should not be suspended, (b) shall set a time and place at which the Tax Commissioner or his or her representative shall hear the county assessor and county board on the question of compliance by the county assessor or county with the laws, rules, regulations, manuals, directives, or corrective orders described in this section, and (c) after such hearing shall determine whether and to what extent the assessment function of the county shall be so suspended. Such hearing shall be held at least ten days after the issuance of such notice in the county.

(6) During the continuance of a suspension pursuant to subsection (5) of this section, the Property Tax Administrator shall succeed to the authority and duties from which the county has been suspended and shall exercise and perform the same. Such exercise and performance shall be a charge on the suspended county. The suspension shall continue until the Tax Commissioner finds that the conditions responsible for the failure to meet the minimum standards contained in the laws, rules, regulations, manuals, and directives have been corrected.

(7) The Property Tax Administrator, subject to rules and regulations to be published and furnished to every county assessor and county board, shall have the power to petition the Tax Commissioner to invalidate the certificate of any assessor or deputy assessor who willfully fails or refuses to diligently perform his or her duties in accordance with the laws, rules, regulations, manuals, and orders issued by the Tax Commissioner governing the assessment of property and the duties of each assessor and deputy assessor. No certificate shall be revoked or suspended except after notice and a hearing before the Tax Commissioner or his or her designee. Such hearing shall be held at least ten days after the issuance of such notice in the county. Prior to revocation, a one-year probationary period, subject to oversight by the Tax Commissioner, shall be imposed. At the end of the one-year probationary period, a second hearing shall be held. If assessment practices have improved, the probationary period shall end and no revocation shall be made. If assessment practices have not improved, the assessor certificate shall be revoked. If during the probationary period, the assessor continues to willfully fail or refuse to diligently perform his or her duties, the Tax Commissioner may immediately hold the second hearing. If the county assessor certificate of a person serving as assessor or deputy assessor is revoked, such person shall be removed from office by the Tax Commissioner, the office shall be declared vacant, and such person shall not be eligible to hold that office for a period of five years after the date of removal. The Tax Commissioner shall mail a copy of his or her written order to the affected party within seven days after the date of the order.

(8) All hearings described in this section shall be governed by the Administrative Procedure Act. Any county aggrieved by a determination of the Tax Commissioner after a hearing pursuant to subsections (4) and (5) of this section or alleging that its suspension is no longer justified or any assessor or deputy assessor whose county assessor certificate has been revoked may appeal within thirty days after the date of the written order of the Tax Commissioner to the Tax Equalization and Review Commission in accordance with section 77-5013.

Source:Laws 1969, c. 622, § 6, p. 2514; Laws 1979, LB 159, § 7;    Laws 1981, LB 479, § 1; Laws 1984, LB 833, § 3;    Laws 1985, LB 271, § 14;    Laws 1995, LB 490, § 126;    Laws 1999, LB 36, § 30;    Laws 1999, LB 194, § 22;    Laws 2004, LB 973, § 24;    Laws 2007, LB334, § 66;    Laws 2011, LB289, § 38.    


Cross References

Annotations

77-1331. Property Tax Administrator; tax records; duties.

Pursuant to rules and regulations, the Property Tax Administrator shall, on or before July 1, 2007, develop, maintain, and enforce a uniform statewide structure for record identification codes, property record cards, property record files, and other administrative reports required for the administration of the property assessment process. The Property Tax Administrator shall not require the use of specific computer software or hardware if an existing system produces data and reports in compliance with the rules and regulations of the Tax Commissioner.

Source:Laws 1969, c. 622, § 7, p. 2514; Laws 1971, LB 155, § 1;    Laws 1995, LB 490, § 127;    Laws 2000, LB 968, § 46;    Laws 2005, LB 263, § 10;    Laws 2007, LB334, § 67.    


77-1332. Appraisal of commercial or industrial property; Property Tax Administrator; powers.

Whenever a county by or pursuant to action of its county board requests the Property Tax Administrator to provide engineering, professional, or technical services for the appraisal of major commercial or industrial properties, the Property Tax Administrator may, within his or her available resources, provide such services. The county shall pay to the Property Tax Administrator the actual cost of such services.

Source:Laws 1969, c. 622, § 8, p. 2514; Laws 1995, LB 490, § 128;    Laws 2000, LB 968, § 47.    


77-1333. Rent-restricted housing projects; county assessor; perform income-approach calculation; owner; duties; Rent-Restricted Housing Projects Valuation Committee; created; members; meetings; report; county board of equalization; filing; hearing; Tax Commissioner; powers; petition; hearing.

(1) For purposes of this section, rent-restricted housing project means a project consisting of five or more houses or residential units that has received an allocation of federal low-income housing tax credits under section 42 of the Internal Revenue Code from the Nebraska Investment Finance Authority or its successor agency and, for the year of assessment, is a project as defined in section 58-219 involving rental housing as defined in section 58-220.

(2) The Legislature finds that:

(a) The provision of safe, decent, and affordable housing to all residents of the State of Nebraska is a matter of public concern and represents a legitimate and compelling state need, affecting the general welfare of all residents;

(b) Rent-restricted housing projects effectively provide safe, decent, and affordable housing for residents of Nebraska;

(c) Such projects are restricted by federal law as to the rents paid by the tenants thereof;

(d) Of all the professionally accepted mass appraisal methodologies, which include the sales comparison approach, the income approach, and the cost approach, the utilization of the income-approach methodology results in the most accurate determination of the actual value of such projects; and

(e) This section is intended to (i) further the provision of safe, decent, and affordable housing to all residents of Nebraska and (ii) comply with Article VIII, section 1, of the Constitution of Nebraska, which empowers the Legislature to prescribe standards and methods for the determination of value of real property at uniform and proportionate values.

(3) Except as otherwise provided in this section, the county assessor shall utilize an income-approach calculation to determine the actual value of a rent-restricted housing project when determining the assessed valuation to place on the property for each assessment year. The income-approach calculation shall be consistent with this section and any rules and regulations adopted and promulgated by the Tax Commissioner and shall comply with professionally accepted mass appraisal techniques.

(4) The Rent-Restricted Housing Projects Valuation Committee is created. For administrative purposes only, the committee shall be within the Department of Revenue. The committee's purpose shall be to develop a market-derived capitalization rate to be used by county assessors in determining the assessed valuation for rent-restricted housing projects. The committee shall consist of the following four persons:

(a) A representative of county assessors appointed by the Tax Commissioner. Such representative shall be skilled in the valuation of property and shall hold a certificate issued under section 77-422;

(b) A representative of the low-income housing industry appointed by the Tax Commissioner. The appointment shall be based on a recommendation made by the Nebraska Commission on Housing and Homelessness;

(c) The Property Tax Administrator or a designee of the Property Tax Administrator who holds a certificate issued under section 77-422. Such person shall serve as the chairperson of the committee; and

(d) An appraiser from the private sector appointed by the Tax Commissioner. Such appraiser must hold either a valid credential as a certified general real property appraiser under the Real Property Appraiser Act or an MAI designation from the Appraisal Institute.

(5) The owner of a rent-restricted housing project shall file a statement electronically on a form prescribed by the Tax Commissioner with the Rent-Restricted Housing Projects Valuation Committee on or before July 1 of each year that details actual income and actual expense data for the prior year, a description of any land-use restrictions, a description of the terms of any mortgage loans, including loan amount, interest rate, and amortization period, and such other information as the committee or the county assessor may require for purposes of this section. The Department of Revenue, on behalf of the committee, shall forward such statements on or before August 15 of each year to the county assessor of each county in which a rent-restricted housing project is located.

(6) The Rent-Restricted Housing Projects Valuation Committee shall meet annually in November to examine the information on rent-restricted housing projects that was provided pursuant to subsection (5) of this section. The Department of Revenue shall electronically publish notice of such meeting no less than thirty days in advance. The committee shall also solicit information on the sale of any such rent-restricted housing projects and information on the yields generated to investors in rent-restricted housing projects. The committee shall, after reviewing all such information, calculate a market-derived capitalization rate on an annual basis using the band-of-investment technique or other generally accepted technique used to derive capitalization rates depending upon the data available. The capitalization rate shall be a composite rate weighted by the proportions of total property investment represented by equity and debt, with equity weighted at eighty percent and debt weighted at twenty percent unless a substantially different market capital structure can be verified to the county assessor. The yield for equity shall be calculated using the data on investor returns gathered by the committee. The yield for debt shall be calculated using the data provided to the committee pursuant to subsection (5) of this section. If the committee determines that a particular county or group of counties requires a different capitalization rate than that calculated for the rest of the state pursuant to this subsection, then the committee may calculate an additional capitalization rate that will apply only to such county or group of counties.

(7) After the Rent-Restricted Housing Projects Valuation Committee has calculated the capitalization rate or rates under subsection (6) of this section, the committee shall provide such rate or rates and the information reviewed by the committee in calculating such rate or rates in an annual report. Such report shall be forwarded by the Property Tax Administrator to each county assessor in Nebraska no later than December 1 of each year for his or her use in determining the valuation of rent-restricted housing projects. The Department of Revenue shall publish the annual report electronically but may charge a fee for paper copies. The Tax Commissioner shall set the fee based on the reasonable cost of producing the report.

(8) Except as provided in subsections (9) through (11) of this section, each county assessor shall use the capitalization rate or rates contained in the report received under subsection (7) of this section and the actual income and actual expense data filed by owners of rent-restricted housing projects under subsection (5) of this section in the county assessor's income-approach calculation. Any low-income housing tax credits authorized under section 42 of the Internal Revenue Code that were granted to owners of the project shall not be considered income for purposes of the calculation.

(9) If the actual income and actual expense data required to be filed for a rent-restricted housing project under subsection (5) of this section is not filed in a timely manner, the county assessor may use any method for determining actual value for such rent-restricted housing project that is consistent with professionally accepted mass appraisal methods described in section 77-112.

(10) If a county assessor, based on the facts and circumstances, believes that the income-approach calculation does not result in a valuation of a rent-restricted housing project at actual value, then the county assessor shall present such facts and circumstances to the county board of equalization. If the county board of equalization, based on such facts and circumstances, concurs with the county assessor, then the county board of equalization shall petition the Tax Equalization and Review Commission to consider the county assessor's utilization of another professionally accepted mass appraisal technique that, based on the facts and circumstances presented by a county board of equalization, would result in a substantially different determination of actual value of the rent-restricted housing project. Petitions must be filed no later than January 31. The burden of proof is on the petitioning county board of equalization to show that failure to make a determination that a different methodology should be used would result in a value that is not equitable and in accordance with the law. At the hearing, the commission may receive testimony from any interested person. After a hearing, the commission shall, within the powers granted in section 77-5007, enter its order based on evidence presented to it at such hearing.

(11) If the Tax Commissioner, based on the facts and circumstances, believes that the applicable capitalization rate set by the Rent-Restricted Housing Projects Valuation Committee to value a rent-restricted housing project does not result in a valuation at actual value for such rent-restricted housing project, then the Tax Commissioner shall petition the Tax Equalization and Review Commission to consider an adjustment to the capitalization rate of such rent-restricted housing project. Petitions must be filed no later than January 31. The burden of proof is on the Tax Commissioner to show that failure to make an adjustment to the capitalization rate employed would result in a value that is not equal to the rent-restricted housing project's actual value. At the hearing, the commission may receive testimony from any interested person. After a hearing, the commission shall, within the powers granted in section 77-5007, enter its order based on evidence presented to it at such hearing.

Source:Laws 2005, LB 263, § 6;    Laws 2007, LB334, § 68;    Laws 2015, LB356, § 1;    Laws 2017, LB217, § 5.    


Cross References

77-1334. Property Tax Administrator; inspections, investigations, and studies; administration of tax laws.

The Property Tax Administrator may make such inspections, investigations, and studies as may be necessary for the adequate administration of his or her responsibilities pursuant to the provisions of sections 77-701 to 77-706 and 77-1327 to 77-1342. Such inspections, investigations, and studies may be made in cooperation with other state agencies, and, in connection therewith, the Property Tax Administrator may utilize reports and data of other state agencies.

Source:Laws 1969, c. 622, § 10, p. 2515; Laws 1995, LB 490, § 130;    Laws 1999, LB 36, § 31;    Laws 2007, LB334, § 69.    


77-1335. Property valued by Property Tax Administrator; error; Property Tax Administrator; powers.

Upon the discovery of any error affecting the value of property valued by the Property Tax Administrator, within three years after the date value was certified to any county or three years after the date tax was distributed to any county, the Property Tax Administrator may recertify such value or redistribute such tax to the affected county.

Source:Laws 2015, LB260, § 1.    


77-1336. Repealed. Laws 1999, LB 194, § 40.

77-1337. Transferred to section 77-429.

77-1338. Values established; effect.

The county and all political subdivisions within the county shall be bound by the values established by the county assessor and equalized by the county board of equalization and the Tax Equalization and Review Commission for all property subject to its taxing power.

Source:Laws 1969, c. 622, § 14, p. 2517; Laws 1979, LB 187, § 208;    Laws 1992, LB 1063, § 122; Laws 1992, Second Spec. Sess., LB 1, § 95;    Laws 1994, LB 902, § 17;    Laws 1997, LB 397, § 15;    Laws 2005, LB 261, § 4.    


77-1339. Joint or cooperative performance of assessment function; two or more counties; agreement; contents; approval by Tax Commissioner.

(1) Any two or more counties may enter into an agreement for joint or cooperative performance of the assessment function.

(2) Such agreement shall provide for:

(a) The division, merger, or consolidation of administrative functions between or among the parties, or the performance thereof by one county on behalf of all the parties;

(b) The financing of the joint or cooperative undertaking;

(c) The rights and responsibilities of the parties with respect to the direction and supervision of work to be performed under the agreement;

(d) The duration of the agreement and procedures for amendment or termination thereof; and

(e) Any other necessary or appropriate matters.

(3) The agreement may provide for the suspension of the powers and duties of the office of county assessor in any one or more of the parties.

(4) Unless the agreement provides for the performance of the assessment function by the assessor of one county for and on behalf of all other counties party thereto, the agreement shall prescribe the manner of electing the assessor, and the employees of the office, who shall serve pursuant to the agreement. Each county party to the agreement shall be represented in the procedure for choosing such assessor. No person shall be appointed assessor pursuant to an agreement who could not be so appointed for a single county. Except to the extent made necessary by the multicounty character of the assessment agency, qualifications for employment as assessor or in the assessment agency and terms and conditions of work shall be similar to those for the personnel of a single county assessment agency. Any county may include in any one or more of its employee benefit programs an assessor serving pursuant to an agreement made under this section and the employees of the assessment agency. As nearly as practicable, such inclusion shall be on the same basis as for similar employees of a single county only. An agreement providing for the joint or cooperative performance of the assessment function may provide for such assessor and employee coverage in county employee benefit programs.

(5) No agreement made pursuant to the provisions of this section shall take effect until it has been approved in writing by the Tax Commissioner.

(6) Copies of any agreement made pursuant to the provisions of this section, and of any amendment thereto, shall be filed in the office of the Tax Commissioner and county board of the counties involved.

Source:Laws 1969, c. 622, § 15, p. 2517; Laws 1995, LB 490, § 132;    Laws 2007, LB334, § 70;    Laws 2009, LB121, § 5.    


77-1340. Repealed. Laws 2012, LB1101, § 4.

77-1340.01. Repealed. Laws 2009, LB121, § 15.

77-1340.02. Repealed. Laws 2009, LB121, § 15.

77-1340.03. Repealed. Laws 2009, LB121, § 15.

77-1340.04. Repealed. Laws 2015, LB 261, § 18.

77-1340.05. Repealed. Laws 2015, LB 261, § 18.

77-1340.06. Repealed. Laws 2015, LB 261, § 18.

77-1341. Repealed. Laws 1990, LB 821, § 56.

77-1342. Department of Revenue Property Assessment Division Cash Fund; created; use; investment.

There is hereby created a fund to be known as the Department of Revenue Property Assessment Division Cash Fund to which shall be credited all money received by the Department of Revenue for services performed for county and multicounty assessment districts, for charges for publications, manuals, and lists, as an assessor's examination fee authorized by section 77-421, and under the provisions of sections 60-3,202, 77-684, and 77-1250. The fund shall be used to carry out any duties and responsibilities of the department, except that transfers may be made from the fund to the General Fund at the direction of the Legislature. The county or multicounty assessment district shall be billed by the department for services rendered. Reimbursements to the department shall be credited to the Department of Revenue Property Assessment Division Cash Fund, and expenditures therefrom shall be made only when such funds are available. The department shall only bill for the actual amount expended in performing the service.

The fund shall not, at the close of each year, be lapsed to the General Fund. Any money in the Department of Revenue Property Assessment Division Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1969, c. 622, § 18, p. 2519; Laws 1971, LB 53, § 8;    Laws 1971, LB 158, § 1;    Laws 1973, LB 132, § 4;    Laws 1985, LB 273, § 38;    Laws 1989, Spec. Sess., LB 7, § 8; Laws 1992, LB 1063, § 123; Laws 1992, Second Spec. Sess., LB 1, § 96;    Laws 1994, LB 1066, § 82;    Laws 1995, LB 490, § 134;    Laws 1997, LB 270, § 75;    Laws 1997, LB 271, § 50;    Laws 1999, LB 36, § 32;    Laws 2001, LB 170, § 8;    Laws 2002, LB 1310, § 9;    Laws 2003, LB 563, § 42;    Laws 2005, LB 274, § 272;    Laws 2007, LB334, § 72;    Laws 2009, LB121, § 7;    Laws 2009, First Spec. Sess., LB3, § 55;    Laws 2015, LB261, § 8.    


Cross References

77-1343. Agricultural or horticultural land; terms, defined.

The purpose of sections 77-1343 to 77-1347.01 is to provide a special valuation for qualified agricultural or horticultural land so that the current assessed valuation of the land for property tax purposes is the value that the land would have without regard to the value the land would have for other purposes or uses. For purposes of sections 77-1343 to 77-1347.01:

(1) Agricultural or horticultural land means that land as defined in section 77-1359;

(2) Applicant means an owner or lessee;

(3) Lessee means a person leasing agricultural or horticultural land from a state or governmental subdivision which is an owner that is subject to taxation under section 77-202.11;

(4) Owner means an owner of record of agricultural or horticultural land or the purchaser of agricultural or horticultural land under a contract for sale; and

(5) Special valuation means the value that the land would have for agricultural or horticultural purposes or uses without regard to the actual value the land would have for other purposes or uses.

Source:Laws 1974, LB 359, § 1;    Laws 1983, LB 26, § 1;    Laws 1985, LB 271, § 15;    Laws 1989, LB 361, § 9;    Laws 2000, LB 968, § 48;    Laws 2001, LB 170, § 9;    Laws 2002, LB 994, § 16;    Laws 2004, LB 973, § 25;    Laws 2006, LB 808, § 27;    Laws 2009, LB166, § 9.    


Annotations

77-1344. Agricultural or horticultural land; special valuation; when applicable.

(1) Agricultural or horticultural land which has an actual value as defined in section 77-112 reflecting purposes or uses other than agricultural or horticultural purposes or uses shall be assessed as provided in subsection (3) of section 77-201 if the land meets the qualifications of this subsection and an application for such special valuation is filed and approved pursuant to section 77-1345. In order for the land to qualify for special valuation, the land must be agricultural or horticultural land and must consist of five acres or more.

(2) The eligibility of land for the special valuation provisions of this section shall be determined each year as of January 1. If the land so qualified becomes disqualified on or before December 31 of that year, it shall continue to receive the special valuation until January 1 of the year following.

(3) The special valuation placed on such land by the county assessor under this section shall be subject to equalization by the county board of equalization and the Tax Equalization and Review Commission.

Source:Laws 1974, LB 359, § 2;    Laws 1983, LB 26, § 2;    Laws 1985, LB 271, § 16;    Laws 1989, LB 361, § 10;    Laws 1991, LB 320, § 5;    Laws 1996, LB 934, § 2;    Laws 1996, LB 1039, § 1;    Laws 1997, LB 270, § 76;    Laws 1998, LB 611, § 3;    Laws 2000, LB 968, § 49;    Laws 2001, LB 170, § 10;    Laws 2004, LB 973, § 26;    Laws 2005, LB 261, § 5;    Laws 2006, LB 808, § 28;    Laws 2007, LB166, § 6;    Laws 2009, LB166, § 10;    Laws 2019, LB185, § 1;    Laws 2021, LB9, § 2;    Laws 2023, LB727, § 46.    
Operative Date: June 7, 2023


Annotations

77-1345. Agricultural or horticultural lands; special valuation; application.

(1) An applicant seeking special valuation under section 77-1344 shall make application to the county assessor on or before June 30 of the first year in which such valuation is requested.

(2)(a) The application shall be made upon forms prescribed by the Tax Commissioner and available from the county assessor and shall include such information as may reasonably be required to determine the eligibility of the applicant and the land.

(b) The application shall be signed by any one of the following:

(i) The applicant;

(ii) Any person of legal age duly authorized in writing to sign an application on behalf of the applicant; or

(iii) The guardian or conservator of the applicant or the executor or administrator of the applicant's estate.

(c) The assessor shall not approve an application signed by a person whose authority to sign is not a matter of public record in the county unless there is filed with the assessor a true copy of the deed, contract of sale, power of attorney, lease, or other appropriate instrument evidencing the signer's qualification pursuant to subdivision (2)(b) of this section.

(3) If the county board of equalization takes action pursuant to section 77-1504 or 77-1507, the applicant may file an application for special valuation within thirty days after the mailing of the valuation notice issued by the county board of equalization pursuant to section 77-1504 or 77-1507.

Source:Laws 1974, LB 359, § 3;    Laws 1983, LB 26, § 3;    Laws 1985, LB 271, § 17;    Laws 1997, LB 397, § 16;    Laws 2000, LB 968, § 50;    Laws 2002, LB 994, § 17;    Laws 2004, LB 973, § 27;    Laws 2006, LB 808, § 29;    Laws 2007, LB334, § 73.    


77-1345.01. Agricultural or horticultural lands; special valuation; approval or denial; protest; appeal; failure to give notice; effect.

(1) On or before July 15 in the year of application, the county assessor shall approve or deny the application for special valuation filed pursuant to section 77-1345. On or before July 22, the county assessor shall issue notice of approval or denial.

(2) If the application is approved by the county assessor, the land shall be valued as provided in section 77-1344 and, on or before July 22, the county board of equalization shall send a property valuation notice for special value to the owner and, if not the same, the applicant. Within thirty days after the mailing of the notice, a written protest of the special value may be filed.

(3)(a) If the application is denied by the assessor, a written protest of the denial of the application may be filed within thirty days after the mailing of the denial.

(b) If the denial of an application for special valuation is reversed on appeal and the application is approved, the land shall be valued as provided in section 77-1344 and the county board of equalization shall send the property valuation notice for special value to the owner and, if not the same, the applicant or his or her successor in interest, within fourteen days after the date of the final order. Within thirty days after the mailing of the notice, a written protest of the special value may be filed.

(4) If the county board of equalization takes action pursuant to section 77-1504 or 77-1507 and the applicant filed an application for special valuation pursuant to subsection (3) of section 77-1345, the county assessor shall approve or deny the application within fifteen days after the filing of the application and issue notice of the approval or denial as prescribed in subsection (1) of this section. If the application is denied by the county assessor, a written protest of the denial may be filed within thirty days of the mailing of the denial.

(5) The assessor shall mail notice of any action taken by him or her on an application to the owner and the applicant if different than the owner.

(6) All provisions of section 77-1502 except dates for filing of a protest, the period for hearing protests, and the date for mailing notice of the county board of equalization's decision are applicable to any protest filed pursuant to this section.

(7) The county board of equalization shall decide any protest filed pursuant to this section within thirty days after the filing of the protest.

(8) The clerk shall mail a copy of any decision made by the county board of equalization on a protest filed pursuant to this section to the owner and the applicant if different than the owner within seven days after the board's decision.

(9) Any decision of the county board of equalization may be appealed to the Tax Equalization and Review Commission, in accordance with section 77-5013, within thirty days after the date of the decision.

(10) If a failure to give notice as prescribed by this section prevented timely filing of a protest or appeal provided for in this section, any applicant may petition the Tax Equalization and Review Commission in accordance with section 77-5013, on or before December 31 of each year, to determine whether the land will receive special valuation for that year or to determine special value for that year.

Source:Laws 2000, LB 968, § 51;    Laws 2004, LB 973, § 28;    Laws 2005, LB 15, § 4;    Laws 2005, LB 263, § 11;    Laws 2006, LB 808, § 30;    Laws 2008, LB965, § 14;    Laws 2009, LB166, § 11.    


77-1346. Agricultural or horticultural lands; eligibility for special valuation; rules and regulations.

The Tax Commissioner shall adopt and promulgate rules and regulations to be used by county assessors in determining eligibility for special valuation under section 77-1344 and in determining the special valuation of such land for agricultural or horticultural purposes under section 77-1344.

Source:Laws 1974, LB 359, § 4;    Laws 1985, LB 271, § 18;    Laws 1989, LB 361, § 11;    Laws 1995, LB 490, § 135;    Laws 2000, LB 968, § 52;    Laws 2007, LB334, § 74.    


77-1347. Agricultural or horticultural lands; special valuation; disqualification.

Upon approval of an application, the county assessor shall value the land as provided in section 77-1344 until the land becomes disqualified for such valuation by:

(1) Written notification by the applicant or his or her successor in interest to the county assessor to remove such special valuation;

(2) Inclusion of the land within the corporate boundaries of any sanitary and improvement district, city, or village, except that this subdivision shall not apply on or after January 1, 2023; or

(3) The land no longer qualifying as agricultural or horticultural land.

Source:Laws 1974, LB 359, § 5;    Laws 1983, LB 26, § 4;    Laws 1985, LB 271, § 19;    Laws 1989, LB 361, § 12;    Laws 2000, LB 968, § 53;    Laws 2001, LB 170, § 11;    Laws 2002, LB 994, § 18;    Laws 2005, LB 263, § 12;    Laws 2006, LB 808, § 31;    Laws 2010, LB806, § 1;    Laws 2019, LB185, § 2;    Laws 2023, LB727, § 47.    
Operative Date: June 7, 2023


77-1347.01. Agricultural or horticultural lands; special valuation; disqualification; procedure; protest; decision; appeal.

At any time, the county assessor may determine that land no longer qualifies for special valuation pursuant to sections 77-1344 and 77-1347. If land is deemed disqualified, the county assessor shall send a written notice of the determination to the applicant or owner within fifteen days after his or her determination, including the reason for the disqualification. A protest of the county assessor's determination may be filed with the county board of equalization within thirty days after the mailing of the notice. The county board of equalization shall decide the protest within thirty days after the filing of the protest. The county clerk shall, within seven days after the county board of equalization's final decision, mail to the protester written notification of the board's decision. The decision of the county board of equalization may be appealed to the Tax Equalization and Review Commission in accordance with section 77-5013 within thirty days after the date of the decision. The valuation notice relating to the land subject to the county assessor's disqualification notice shall be sent in accordance with subsection (2) of section 77-1315 and the valuation may be protested pursuant to section 77-1502.

Source:Laws 2006, LB 808, § 32;    Laws 2007, LB166, § 7.    


77-1348. Repealed. Laws 2009, LB 166, § 23.

77-1349. Unconstitutional.


Note: Pursuant to section 49-705(2)(d) the Revisor of Statutes has omitted sections 77-1349 to 77-1354. These sections passed in 1977 as LB 131. The Supreme Court in State ex rel. Douglas v. Herrington, 206 Neb. 516, 294 N.W.2d 330 (1980) held section 77-1350(1) to be unconstitutional and also held such section was not severable and therefor the whole act was unconstitutional.


77-1350. Unconstitutional.


Note: Pursuant to section 49-705(2)(d) the Revisor of Statutes has omitted sections 77-1349 to 77-1354. These sections passed in 1977 as LB 131. The Supreme Court in State ex rel. Douglas v. Herrington, 206 Neb. 516, 294 N.W.2d 330 (1980) held section 77-1350(1) to be unconstitutional and also held such section was not severable and therefor the whole act was unconstitutional.


77-1351. Unconstitutional.


Note: Pursuant to section 49-705(2)(d) the Revisor of Statutes has omitted sections 77-1349 to 77-1354. These sections passed in 1977 as LB 131. The Supreme Court in State ex rel. Douglas v. Herrington, 206 Neb. 516, 294 N.W.2d 330 (1980) held section 77-1350(1) to be unconstitutional and also held such section was not severable and therefor the whole act was unconstitutional.


77-1352. Unconstitutional.


Note: Pursuant to section 49-705(2)(d) the Revisor of Statutes has omitted sections 77-1349 to 77-1354. These sections passed in 1977 as LB 131. The Supreme Court in State ex rel. Douglas v. Herrington, 206 Neb. 516, 294 N.W.2d 330 (1980) held section 77-1350(1) to be unconstitutional and also held such section was not severable and therefor the whole act was unconstitutional.


77-1353. Unconstitutional.


Note: Pursuant to section 49-705(2)(d) the Revisor of Statutes has omitted sections 77-1349 to 77-1354. These sections passed in 1977 as LB 131. The Supreme Court in State ex rel. Douglas v. Herrington, 206 Neb. 516, 294 N.W.2d 330 (1980) held section 77-1350(1) to be unconstitutional and also held such section was not severable and therefor the whole act was unconstitutional.


77-1354. Unconstitutional.


Note: Pursuant to section 49-705(2)(d) the Revisor of Statutes has omitted sections 77-1349 to 77-1354. These sections passed in 1977 as LB 131. The Supreme Court in State ex rel. Douglas v. Herrington, 206 Neb. 516, 294 N.W.2d 330 (1980) held section 77-1350(1) to be unconstitutional and also held such section was not severable and therefor the whole act was unconstitutional.


77-1355. Repealed. Laws 2011, LB 210, § 17.

77-1356. Transferred to section 77-3431.

77-1357. Repealed. Laws 1985, LB 22, § 1.

77-1358. Repealed. Laws 1989, LB 361, § 25.

77-1359. Agricultural and horticultural land; legislative findings; terms, defined.

The Legislature finds and declares that agricultural land and horticultural land shall be a separate and distinct class of real property for purposes of assessment. The assessed value of agricultural land and horticultural land shall not be uniform and proportionate with all other real property, but the assessed value shall be uniform and proportionate within the class of agricultural land and horticultural land.

For purposes of this section and section 77-1363:

(1) Agricultural land and horticultural land means a parcel of land, excluding land associated with a building or enclosed structure located on the parcel, which is primarily used for agricultural or horticultural purposes, including wasteland lying in or adjacent to and in common ownership or management with other agricultural land and horticultural land;

(2)(a) Agricultural or horticultural purposes means used for the commercial production of any plant or animal product in a raw or unprocessed state that is derived from the science and art of agriculture, aquaculture, or horticulture;

(b) Agricultural or horticultural purposes includes the following uses of land:

(i) Land retained or protected for future agricultural or horticultural purposes under a conservation easement as provided in the Conservation and Preservation Easements Act except when the parcel or a portion thereof is being used for purposes other than agricultural or horticultural purposes; and

(ii) Land enrolled in a federal or state program in which payments are received for removing such land from agricultural or horticultural production; and

(c) Whether a parcel of land is primarily used for agricultural or horticultural purposes shall be determined without regard to whether some or all of the parcel is platted and subdivided into separate lots or developed with improvements consisting of streets, sidewalks, curbs, gutters, sewer lines, water lines, or utility lines;

(3) Farm home site means land contiguous to a farm site which includes an inhabitable residence and improvements used for residential purposes and which is located outside of urban areas or outside a platted and zoned subdivision; and

(4) Farm site means the portion of land contiguous to land actively devoted to agriculture which includes improvements that are agricultural or horticultural in nature, including any uninhabitable or unimproved farm home site.

Source:Laws 1985, LB 271, § 4;    Laws 1986, LB 817, § 11;    Laws 1988, LB 1207, § 3;    Laws 1989, LB 361, § 14;    Laws 1991, LB 320, § 7;    Laws 1996, LB 934, § 3;    Laws 1997, LB 270, § 77;    Laws 2000, LB 419, § 1;    Laws 2006, LB 808, § 35;    Laws 2008, LB777, § 1;    Laws 2012, LB750, § 1;    Laws 2017, LB217, § 6.    


Cross References

Annotations

77-1360. Repealed. Laws 1997, LB 270, § 110.

77-1360.01. Repealed. Laws 2006, LB 808, § 52.

77-1361. Repealed. Laws 2006, LB 808, § 52.

77-1362. Repealed. Laws 2006, LB 808, § 52.

77-1363. Agricultural and horticultural land; classes and subclasses.

Agricultural land and horticultural land shall be divided into classes and subclasses of real property under section 77-103.01, including, but not limited to, irrigated cropland, dryland cropland, grassland, wasteland, nurseries, feedlots, and orchards, so that the categories reflect uses appropriate for the valuation of such land according to law. Classes shall be inventoried by subclasses of real property based on soil classification standards developed by the Natural Resources Conservation Service of the United States Department of Agriculture as converted into land capability groups by the Property Tax Administrator. Land capability groups shall be Natural Resources Conservation Service specific to the applied use and not all based on a dryland farming criterion. County assessors shall utilize soil surveys from the Natural Resources Conservation Service of the United States Department of Agriculture as directed by the Property Tax Administrator. Nothing in this section shall be construed to limit the classes and subclasses of real property that may be used by county assessors or the Tax Equalization and Review Commission to achieve more uniform and proportionate valuations.

Source:Laws 1985, LB 271, § 8;    Laws 1988, LB 1207, § 5;    Laws 1989, LB 361, § 17;    Laws 1991, LB 320, § 9;    Laws 1994, LB 902, § 19;    Laws 1995, LB 490, § 139;    Laws 1997, LB 270, § 81;    Laws 1999, LB 403, § 7;    Laws 2001, LB 170, § 15;    Laws 2004, LB 973, § 30;    Laws 2006, LB 808, § 36;    Laws 2006, LB 1115, § 31;    Laws 2010, LB877, § 3;    Laws 2019, LB372, § 1.    


Annotations

77-1364. Repealed. Laws 1997, LB 270, § 110.

77-1365. Repealed. Laws 1997, LB 270, § 110.

77-1366. Repealed. Laws 1996, LB 934, § 7.

77-1367. Repealed. Laws 1996, LB 934, § 7.

77-1368. Repealed. Laws 1989, LB 361, § 25.

77-1369. Repealed. Laws 1991, LB 320, § 13.

77-1370. Repealed. Laws 1991, LB 320, § 13.

77-1371. Comparable sales; use; guidelines.

Comparable sales are recent sales of properties that are similar to the property being assessed in significant physical, functional, and location characteristics and in their contribution to value. When using comparable sales in determining actual value of an individual property under the sales comparison approach provided in section 77-112, the following guidelines shall be considered in determining what constitutes a comparable sale:

(1) Whether the sale was financed by the seller and included any special financing considerations or the value of improvements;

(2) Whether zoning affected the sale price of the property;

(3) For sales of agricultural land or horticultural land as defined in section 77-1359, whether a premium was paid to acquire property. A premium may be paid when proximity or tax consequences cause the buyer to pay more than actual value for agricultural land or horticultural land;

(4) Whether sales or transfers made in connection with foreclosure, bankruptcy, or condemnations, in lieu of foreclosure, or in consideration of other legal actions should be excluded from comparable sales analysis as not reflecting current market value;

(5) Whether sales between family members within the third degree of consanguinity include considerations that fail to reflect current market value;

(6) Whether sales to or from federal or state agencies or local political subdivisions reflect current market value;

(7) Whether sales of undivided interests in real property or parcels less than forty acres or sales conveying only a portion of the unit assessed reflect current market value;

(8) Whether sales or transfers of property in exchange for other real estate, stocks, bonds, or other personal property reflect current market value;

(9) Whether deeds recorded for transfers of convenience, transfers of title to cemetery lots, mineral rights, and rights of easement reflect current market value;

(10) Whether sales or transfers of property involving railroads or other public utility corporations reflect current market value;

(11) Whether sales of property substantially improved subsequent to assessment and prior to sale should be adjusted to reflect current market value or eliminated from such analysis;

(12) For agricultural land or horticultural land as defined in section 77-1359 which is or has been receiving the special valuation pursuant to sections 77-1343 to 77-1347.01, whether the sale price reflects a value which the land has for purposes or uses other than as agricultural land or horticultural land and therefor does not reflect current market value of other agricultural land or horticultural land;

(13) Whether sales or transfers of property are in a similar market area and have similar characteristics to the property being assessed; and

(14) For agricultural land and horticultural land as defined in section 77-1359 which is within a class or subclass of irrigated cropland pursuant to section 77-1363, whether the difference in well capacity or in water availability due to federal, state, or local regulatory actions or limited source affected the sale price of the property. If data on current well capacity or current water availability is not available from a federal, state, or local government entity, this subdivision shall not be used to determine what constitutes a comparable sale.

The Property Tax Administrator may issue guidelines for assessing officials for use in determining what constitutes a comparable sale. Guidelines shall take into account the factors listed in this section and other relevant factors as prescribed by the Property Tax Administrator.

Source:Laws 1989, LB 361, § 4;    Laws 1995, LB 490, § 142;    Laws 2000, LB 968, § 56;    Laws 2001, LB 170, § 16;    Laws 2003, LB 295, § 3;    Laws 2009, LB166, § 13;    Laws 2012, LB750, § 2;    Laws 2014, LB1098, § 17.    


Annotations

77-1372. Repealed. Laws 2001, LB 170, § 30.

77-1373. Repealed. Laws 1995, LB 490, § 195.

77-1374. Improvements on leased public lands; assessment; change of ownership; filing required; collection of tax.

Improvements on leased public lands shall be assessed, together with the value of the lease, to the owner of the improvements as real property. On or before March 1, following any construction thereof or any change in the improvements made on or before January 1, the owner of the improvements shall file with the county assessor an assessment application on a form prescribed by the Tax Commissioner. An assessment application shall also be filed with the county assessor at the time a change of ownership occurs, and such assessment application shall be signed by the owner of the improvements. The taxes imposed on the improvements shall be collected in the same manner as in all other cases of collection of taxes on real property.

Source:Laws 1903, c. 73, § 35, p. 396; R.S.1913, § 6320; C.S.1922, § 5921; C.S.1929, § 77-1408; R.S.1943, § 77-1209; Laws 1963, c. 447, § 1, p. 1471; Laws 1974, LB 969, § 1;    Laws 1987, LB 508, § 30;    R.S.1943, (1990), § 77-1209; Laws 1992, LB 1063, § 111; Laws 1992, Second Spec. Sess., LB 1, § 84;    Laws 1997, LB 270, § 82;    Laws 2007, LB334, § 76;    Laws 2012, LB1106, § 1.    


Annotations

77-1375. Improvements on leased lands; how assessed; apportionment.

(1) If improvements on leased land are to be assessed separately to the owner of the improvements, the actual value of the real property shall be determined without regard to the fact that the owner of the improvements is not the owner of the land upon which such improvements have been placed.

(2) If the owner of the improvements claims that the value of his or her interest in the real property is reduced by reason of uncertainty in the term of his or her tenancy or because of the prospective termination or expiration of the term, he or she shall serve notice of such claim in writing by mail on the owner of the land before January 1 and shall at the same time serve similar notice on the county assessor, together with his or her affidavit that he or she has served notice on the owner of the land.

(3) If the county assessor finds, on the basis of the evidence submitted, that the claim is valid, he or she shall proceed to apportion the total value of the real property between the owner of the improvements and the owner of the land as their respective interests appear.

(4) The county assessor shall give notice to the parties of his or her findings by mail on or before June 1.

(5) The proportions so established shall continue from year to year unless changed by the county assessor after notice on or before June 1 or a claim is filed by either the owner of the improvements or the owner of the land in accordance with the procedure provided in this section.

Source:Laws 1959, c. 365, § 4, p. 1286; Laws 1979, LB 187, § 199;    Laws 1987, LB 508, § 31;    R.S.1943, (1990), § 77-1209.02; Laws 1992, LB 1063, § 112; Laws 1992, Second Spec. Sess., LB 1, § 85;    Laws 1997, LB 270, § 83;    Laws 2012, LB727, § 32.    


77-1376. Improvements on leased lands; how assessed; notice.

Improvements on leased lands, other than leased public lands, shall be assessed to the owner of the leased lands unless before March 1, following any construction thereof or change in the improvements made on or before January 1, the owner of the leased lands or the lessee thereof files with the county assessor, on a form prescribed by the Tax Commissioner, a request stating that specifically designated improvements on such leased lands are the property of the lessee. The improvements shall be assessed as real property, and the taxes imposed on the improvements shall be collected by levy and sale of the interest of the owner in the same manner as in all other cases of the collection of taxes on real property. When the request is filed by the owner of the leased lands, notice shall be given by the county assessor to the lessee at the address on the request.

Source:Laws 1963, c. 434, § 1, p. 1451; Laws 1985, LB 268, § 27;    Laws 1987, LB 508, § 32;    R.S.1943, (1990), § 77-1209.03; Laws 1992, LB 1063, § 113; Laws 1992, Second Spec. Sess., LB 1, § 86;    Laws 1995, LB 490, § 143;    Laws 1997, LB 270, § 84;    Laws 2007, LB334, § 77.    


77-1377. Statewide file of real property sales; creation; use.

The Property Tax Administrator shall create a statewide file of real property sales to provide information regarding hard-to-assess property, including situations in which a local property may have few available comparable sales. The Property Tax Administrator shall make the file available to county assessors.

Source:Laws 1992, LB 734, § 1;    Laws 1995, LB 490, § 144;    Laws 2001, LB 170, § 17.    


77-1378. Repealed. Laws 2005, LB 261, § 13.

77-1379. Repealed. Laws 2005, LB 261, § 13.

77-1380. Repealed. Laws 2005, LB 261, § 13.

77-1381. Repealed. Laws 2005, LB 261, § 13.

77-1381.01. Repealed. Laws 2005, LB 261, § 13.

77-1382. Repealed. Laws 2005, LB 261, § 13.

77-1383. Repealed. Laws 2005, LB 261, § 13.

77-1384. Repealed. Laws 2005, LB 261, § 13.

77-1385. Historically significant real property; qualification.

The following real property shall qualify as historically significant real property for purposes of the historic rehabilitation valuation authorized by section 77-1391 pursuant to the authority granted to the Legislature under subdivision (12) of Article VIII, section 2, of the Constitution of Nebraska:

(1) Real property individually listed in the National Register of Historic Places;

(2) Real property within a district listed in the National Register of Historic Places that is historically significant as determined by the State Historic Preservation Officer and approved under section 77-1387;

(3) Real property individually designated pursuant to a landmark ordinance or resolution that has been approved by the State Historic Preservation Officer pursuant to section 77-1386; and

(4) Real property within a district designated pursuant to a landmark ordinance or resolution that has been approved by the State Historic Preservation Officer pursuant to section 77-1386 that is historically significant as determined by the State Historic Preservation Officer and approved under section 77-1387.

Source:Laws 2005, LB 66, § 1.    


77-1386. Historically significant real property; landmark ordinance or resolution; approval.

(1) A city, village, or county shall request the State Historic Preservation Officer's approval of any landmark ordinance or resolution which designates individual properties or districts before any such individual properties or historically significant properties within such districts receive historic rehabilitation valuation authorized by section 77-1391. The following documentation shall accompany the request:

(a) A copy of the ordinance or resolution for which approval is requested;

(b) A list, including the common addresses and common written boundary descriptions of all individual properties and historic districts designated or proposed to be designated under the ordinance or resolution;

(c) A description and statement of historical significance for all designated individual properties and historic districts, which includes representative photographic views; and

(d) A map indicating the location of individual landmarks and historic districts.

(2) Within forty-five days after receipt of the request and documentation, the State Historic Preservation Officer shall approve the ordinance or resolution if the documentation indicates compliance with the criteria for designation of landmarks and historic districts established by the United States Department of the Interior for the inclusion of properties in the National Register of Historic Places, 36 C.F.R. 60, as such regulation existed on January 1, 2005, and if the ordinance or resolution contains provisions for the following:

(a) Authorization for historic preservation under section 19-903;

(b) A statement of purpose;

(c) Establishment of a historic review commission which:

(i) Has no fewer than five members;

(ii) Has demonstrated expertise in the disciplines of history, architectural history, historic architecture, architecture, community planning, real estate, neighborhood conservation, historic preservation, or related fields;

(iii) Has staggered terms of office for members; and

(iv) Holds meetings at regular intervals at least four times a year;

(d) A process and criteria for designation of landmarks and historic districts that are consistent with those established by the United States Department of the Interior for the inclusion of properties in the National Register of Historic Places, 36 C.F.R. 60, as such regulation existed on January 1, 2005;

(e) A definition of actions that merit review by the historic review commission, which shall include demolitions and major alterations;

(f) Standards and criteria for review of actions within the jurisdiction of the historic review commission; and

(g) Procedural due process, such as notification, a hearing, and an appeal procedure.

Source:Laws 2005, LB 66, § 2.    


77-1387. Historically significant real property; application by property owner; approval.

(1) A property owner or the legally designated representative of the property owner may submit an application to the State Historic Preservation Officer for a determination of whether the property owner's real property is qualified to receive historic rehabilitation valuation authorized by section 77-1391 on a form prescribed by the State Historic Preservation Officer. The application shall contain at least the following information:

(a) The address and location of the property;

(b) A map showing the location of the property;

(c) Clear, current black and white or color photographs showing principal views of the property;

(d) Designation authority, whether under the National Register of Historic Places or a landmark ordinance or resolution; and

(e) If it is historically significant and located within a district listed in the National Register of Historic Places or designated under an ordinance or resolution that has been approved by the State Historic Preservation Officer under section 77-1386, the name of the district and a statement describing the contribution of the property to the significance of the district.

(2) Within thirty days after the receipt of an application, the State Historic Preservation Officer shall determine whether an individual property is eligible to be listed in the National Register of Historic Places and is therefor eligible for historic rehabilitation valuation. The State Historic Preservation Officer may extend the deadline up to an additional forty-five days if he or she determines that a site inspection is necessary.

(3) Within thirty days after the receipt of an application, the State Historic Preservation Officer shall determine whether a property located within a district on the National Register of Historic Places or designated under an ordinance or resolution that has been approved by the State Historic Preservation Officer under section 77-1386 is of historic significance to the district pursuant to the criteria in 36 C.F.R. 67.5, as such regulation existed on January 1, 2005, and inform the applicant of the decision in writing. The State Historic Preservation Officer may extend the deadline up to an additional forty-five days if he or she determines that a site inspection is necessary.

(4) Property shall not be eligible for historic rehabilitation valuation if the property has received a final certificate of rehabilitation within the twelve years prior to application.

Source:Laws 2005, LB 66, § 3.    


77-1388. Historically significant real property; preliminary certificate of rehabilitation; filing with State Historic Preservation Officer.

(1) The owner of historically significant real property described in section 77-1385 may apply for a preliminary certificate of rehabilitation on a form prescribed by the State Historic Preservation Officer. The application shall be filed with the State Historic Preservation Officer prior to beginning rehabilitation. The application shall contain at least the following information:

(a) The address or location of the historically significant real property;

(b) Documentation of the cost of the rehabilitation, including estimated cost of architectural fees if applicable;

(c) A certification from the county assessor stating the assessed valuation of the historically significant real property that was last certified by the county assessor pursuant to section 13-509 or as finally determined if appealed;

(d) A description of the historic condition of the historically significant real property, when possible, and condition of the historically significant real property immediately prior to the rehabilitation; and

(e) A detailed description of the proposed rehabilitation work, including plans and specifications, if applicable.

(2) Within thirty days after receipt of an application for a preliminary certificate of rehabilitation, the State Historic Preservation Officer shall issue a preliminary certificate of rehabilitation to the applicant and transmit a copy to the county assessor if he or she determines that:

(a) The proposed work meets the Standards for Rehabilitation as described in 36 C.F.R. 67.7, as such regulation existed on January 1, 2005; and

(b) The work is a substantial rehabilitation.

(3) The State Historic Preservation Officer may extend the deadline up to an additional forty-five days if he or she determines that a site inspection is necessary. The State Historic Preservation Officer shall determine the length of the rehabilitation period, which shall not exceed two years unless the State Historic Preservation Officer finds (a) it is economically infeasible to complete the rehabilitation in two years or (b) the magnitude of the project is such that a good faith attempt to complete the rehabilitation in two years would not succeed. The certificate shall identify the rehabilitation period.

(4) The State Historic Preservation Officer shall issue a preliminary certificate of rehabilitation to the owner if (a) the property was determined to be qualified for historic preservation valuation pursuant to subsection (2) of section 77-1387, (b) the proposed rehabilitation meets the Standards for Rehabilitation as described in 36 C.F.R. 67.7, as such regulation existed on January 1, 2005, and (c) the proposed rehabilitation is a substantial rehabilitation. The State Historic Preservation Officer shall transmit a copy of the preliminary certificate of rehabilitation to the county assessor within seven days after issuance of the certificate to the owner.

(5) For purposes of this section, substantial rehabilitation means interior or exterior rehabilitation work that preserves the historically significant real property in a manner that significantly improves its condition and that costs an amount equal to or greater than twenty-five percent of the assessed valuation certified by the county assessor and contained in the application.

Source:Laws 2005, LB 66, § 4.    


77-1389. Historically significant real property; preliminary certificate of rehabilitation; filing with city, village, or county.

(1) A city, village, or county may receive and recommend approval of applications for preliminary certificates of rehabilitation within its corporate boundaries pursuant to subsection (4) of this section.

(2) Prior to exercising authority under subsection (1) of this section, a city, village, or county shall request the approval of the State Historic Preservation Officer. The request shall be accompanied by assurances that the city, village, or county:

(a) Enforces laws for the designation of historically significant real property;

(b) Has a landmark ordinance or resolution that has been approved under section 77-1386;

(c) Maintains a historic review commission which has been approved by the State Historic Preservation Officer;

(d) Maintains a system for the survey and inventory of historically significant real property; and

(e) Maintains a system for reviewing applications for certifications of rehabilitations substantially the same as that provided in section 77-1388.

(3) Within forty-five days after the receipt of the request and the assurances, the State Historic Preservation Officer shall approve the city, village, or county to exercise authority under subsection (1) of this section.

(4)(a) The owner of historically significant real property described in section 77-1385 may apply for a preliminary certificate of rehabilitation on a form prescribed by the State Historic Preservation Officer. The application shall be filed with the city, village, or county prior to beginning rehabilitation, and the city, village, or county shall forward the application to the State Historic Preservation Officer with the following information:

(i) Certification that the real property is designated pursuant to a landmark ordinance or resolution or is in a district so designated; and

(ii) Any comments or recommendations on the application.

(b) The State Historic Preservation Officer shall process the application in accordance with subsection (4) of section 77-1388.

Source:Laws 2005, LB 66, § 5.    


77-1390. Historically significant real property; final certificate of rehabilitation; issuance.

Upon completion of the rehabilitation the owner shall provide the following information to the State Historic Preservation Officer to obtain a final certificate of rehabilitation:

(1) Documentation of the dates on which construction commenced and was completed;

(2) Clear, current black and white or color photographs showing the completed rehabilitation work, the appearance of the structure immediately prior to the rehabilitation, and, if possible, the historic appearance of the historically significant real property;

(3) A written description of the original condition of the historically significant real property;

(4) A written description of the present condition of the historically significant real property; and

(5) A written description and, if applicable, final plans and specifications of the rehabilitation.

The State Historic Preservation Officer shall issue a final certificate of rehabilitation to the owner if the rehabilitation meets the Standards for Rehabilitation as described in 36 C.F.R. 67.7, as such regulation existed on January 1, 2005, and transmit a copy to the county assessor within seven days after issuance of the certificate to the owner.

Source:Laws 2005, LB 66, § 6.    


77-1391. Historically significant real property; valuation.

(1) Commencing January 1, 2006, for all real property for which a final certificate of rehabilitation has been issued, the valuation for purposes of assessment shall be no more than the base-year valuation for eight years following issuance of the final certificate of rehabilitation.

(2) For the four years following the expiration of the eight-year period specified in subsection (1) of this section, the valuation for purposes of the assessment shall be as follows:

(a) For the first year, the base-year valuation plus twenty-five percent of the difference in the base-year valuation and the current year actual value;

(b) For the second year, the base-year valuation plus fifty percent of the difference in the base-year valuation and the current year actual value;

(c) For the third year, the base-year valuation plus seventy-five percent of the difference in the base-year valuation and the current year actual value; and

(d) For the fourth year, the current year actual value.

(3) For purposes of sections 77-1385 to 77-1394, base-year valuation means the assessed valuation of the historically significant real property in the assessment year the preliminary certificate of rehabilitation was issued as certified in subdivision (1)(c) of section 77-1388 or as finally determined if appealed.

(4) If, during the eight-year period and the four-year period specified in subsections (1) and (2) of this section, the State Historic Preservation Officer determines that historically significant real property for which a final certificate of rehabilitation has been issued (a) has been the subject of repair, renovation, remodeling, or improvement but not in accordance with the Standards for Rehabilitation as described in 36 C.F.R. 67.7, as such regulation existed on January 1, 2005, (b) is no longer of historical significance to a qualified historic district, or (c) no longer possesses the qualifications for listing in the National Register of Historic Places, he or she shall revoke the final certificate of rehabilitation by written notice to the owner and transmit a copy of the revocation to the county assessor.

(5) Upon disqualification of any real property receiving base-year valuation under sections 77-1385 to 77-1394, the county assessor shall change the value of such property to its actual value in the assessment year following the revocation of the final certificate of rehabilitation.

Source:Laws 2005, LB 66, § 7.    


77-1392. Historically significant real property; Tax Commissioner; rules and regulations.

The Tax Commissioner may adopt and promulgate rules and regulations regarding the base-year valuation of historically significant real property.

Source:Laws 2005, LB 66, § 8;    Laws 2007, LB334, § 78.    


77-1393. Historically significant real property; State Historic Preservation Officer; rules and regulations.

The State Historic Preservation Officer may adopt and promulgate rules and regulations to carry out sections 77-1385 to 77-1394, including, but not limited to, provisions that:

(1) Preclude the issuance of a conditional, preliminary, or final certificate of rehabilitation for any owner-occupied single family residence if thirty percent or more of the dwelling space is new construction outside the existing structure;

(2) Specify what costs are eligible to meet the twenty-five percent minimum specified costs and make ineligible those costs attributable to new construction outside the existing structure; and

(3) Allow the issuance of a certificate of rehabilitation for a condominium.

Source:Laws 2005, LB 66, § 9.    


77-1394. Historically significant real property; protests; procedure; appeal.

(1) Any decision of the State Historic Preservation Officer under sections 77-1385 to 77-1394 may be protested to the State Historic Preservation Officer within thirty days after the mailing of the written notice. If a protest is not filed, the action of the State Historic Preservation Officer shall be final. If a protest is filed, the State Historic Preservation Officer shall hear the protest within fourteen days after receipt of the protest.

(2) The State Historic Preservation Officer, within seven days after his or her final decision, shall mail written notice of his or her final decision to the owner and the county assessor of the county in which the real property is located.

(3) Any owner aggrieved by a final decision of the State Historic Preservation Officer may appeal the final decision to the district court within thirty days after mailing of the final decision by the State Historic Preservation Officer. The county assessor may appeal a final decision of the State Historic Preservation Officer to the district court within thirty days after mailing of the final decision by the State Historic Preservation Officer. The thirty-day period for filing such an appeal commences to run from the date of the mailing of the final decision. Upon receiving a copy of the final order on an appeal filed with the district court, the State Historic Preservation Officer shall mail a copy of the final order to the county assessor of the county in which the real property is located.

Source:Laws 2005, LB 66, § 10.    


77-1401. Terms, defined.

For purposes of sections 77-1401 to 77-1409:

(1) Account means an achieving a better life experience account established under the program for the purposes of funding future qualified disability expenses of a designated beneficiary;

(2) Contracting state means a state without a qualified program which has entered into a contract with a state with a qualified program to provide residents of the contracting state access to a qualified program;

(3) Designated administrator means any corporation or other entity whose powers and privileges are provided for in any general or special law, whether for profit or not, designated or retained by the State Treasurer for the purpose of administering, subject to the ongoing supervision of the State Treasurer, all or any portion of the investment, marketing, record-keeping, administrative, or other functions of the program;

(4) Designated beneficiary means the individual with a disability named as the beneficiary of an account;

(5) Individual with a disability means an individual who is an eligible individual as defined under section 529A;

(6) Program means the qualified program established by the State Treasurer as provided in section 77-1402 and administered by the State Treasurer and, to the extent so delegated or contracted by the State Treasurer, one or more designated administrators;

(7) Qualified disability expenses means any expenses related to the blindness or disability of the individual with a disability which are made for the benefit of an individual who is the designated beneficiary, including education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention, and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, and funeral and burial expenses; and other expenses which are approved under regulations promulgated under section 529A;

(8) Qualified program means a qualified ABLE program as defined under section 529A; and

(9) Section 529A means section 529A of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

Source:Laws 2015, LB591, § 1.    


77-1402. State Treasurer; establish achieving a better life program or contract with another state.

(1) For purposes of administering accounts established to encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities, the State Treasurer shall either establish the achieving a better life experience program as provided in sections 77-1403 to 77-1409 or contract with another state with a qualified program. The State Treasurer may enter into a contract with any contracting state to allow any resident of the contracting state to participate in the program established by the State Treasurer. Money from the Treasury Management Cash Fund may be appropriated for a program pursuant to section 77-1407 and to contract with another state with a qualified program under this section.

(2) Under a qualified program, one or more persons may make contributions to an account to meet the qualified disability expenses of the designated beneficiary of the account.

(3) If the State Treasurer establishes the program as authorized in this section, sections 77-1403 to 77-1409 apply.

Source:Laws 2015, LB591, § 2.    


77-1403. Account owner; designated beneficiary; death of designated beneficiary; transfer or distribution of account balances; notice regarding potential tax consequences; state claim or recovery; when prohibited.

(1) Unless otherwise permitted under section 529A, the owner of an account shall be the designated beneficiary of the account, except that if the designated beneficiary of the account is a minor or has a custodian or other fiduciary appointed for the purposes of managing such beneficiary's financial affairs, a custodian or fiduciary for such designated beneficiary may serve as the account owner if such form of ownership is permitted or not prohibited under section 529A.

(2) Unless otherwise permitted under section 529A, the designated beneficiary of an account shall be a resident of the state or of a contracting state. The State Treasurer shall determine residency of Nebraska residents for such purpose in such manner as may be required or permissible under section 529A or, in the absence of any guidance under section 529A, by such other means as the State Treasurer shall consider advisable for purposes of satisfying the requirements of section 529A.

(3) To the extent permitted by federal law, upon the death of a designated beneficiary of an account, the owner of the account or the personal representative of the designated beneficiary may have the balance of the account transferred to another account under the program specified by the owner of the account, the designated beneficiary, or the estate of the designated beneficiary. If the balance of the account on the date of death is less than or equal to five thousand dollars, the owner of the account or the personal representative of the designated beneficiary may also have the balance of the account distributed to an individual or individuals specified by the designated beneficiary, the owner of the account, or the personal representative of the designated beneficiary.

(4) At the time an account is established under the program and prior to any transfer or distribution pursuant to subsection (3) of this section, the State Treasurer shall notify the owner of the account, the designated beneficiary, and the estate of the designated beneficiary, if applicable, of the potential tax consequences of transferring or distributing funds pursuant to subsection (3) of this section.

(5) Upon the death of a designated beneficiary and after the Department of Health and Human Services has received approval from the Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services:

(a) The state shall not seek recovery of any amount remaining in the account of the designated beneficiary for any amount of medical assistance received by the designated beneficiary or his or her spouse or dependent under the medical assistance program pursuant to the Medical Assistance Act after the establishment of the account; and

(b) The state shall not file a claim for the payment under subdivision (f) of section 529A of the Internal Revenue Code, as amended.

Source:Laws 2015, LB591, § 3;    Laws 2020, LB705, § 1;    Laws 2023, LB727, § 48.    
Operative Date: September 2, 2023


Cross References

77-1404. Contributions.

Any person may make contributions to an account to meet the qualified disability expenses of the designated beneficiary of the account if the account and contributions meet the other requirements of sections 77-1403 to 77-1409 and the rules and regulations adopted and promulgated by the State Treasurer.

Source:Laws 2015, LB591, § 4.    


77-1405. Qualified program.

The State Treasurer and, to the extent required by the terms of such designation, any designated administrator shall operate the program so that it constitutes a qualified program in compliance with the requirements of section 529A.

Source:Laws 2015, LB591, § 5.    


77-1406. Investment options; state investment officer; fiduciary responsibility.

The State Treasurer and any designated administrator shall provide investment options for the investment of amounts contributed to an account, except that the state investment officer shall have fiduciary responsibility to make all decisions regarding the investment of the money in the expense fund and program fund created in section 77-1407 and any money credited to the Treasury Management Cash Fund for administrative expenses of the program, including the selection of all investment options and the approval of all fees and other costs charged to trust assets except costs for administration, operation, and maintenance of the trust as appropriated by the Legislature, pursuant to the directions, guidelines, and policies established by the Nebraska Investment Council. The State Treasurer shall not adopt and promulgate rules and regulations that in any way interfere with the fiduciary responsibility of the state investment officer to make all decisions regarding the investment of money in the expense fund and program fund or money of the program credited to the Treasury Management Cash Fund. The Nebraska Investment Council may adopt and promulgate rules and regulations to provide for the prudent investment of the assets of the program. The council or its designee also has the authority to select and enter into agreements with individuals and entities to provide investment advice and management of the assets held by the program, establish investment guidelines, objectives, and performance standards with respect to the assets held by the program, and approve any fees, commissions, and expenses, which directly or indirectly affect the return on assets.

Source:Laws 2015, LB591, § 6.    


77-1407. Funds held in trust; ABLE Program Fund; ABLE Expense Fund; created; use; investment.

(1) Funds contributed to the program shall be held in trust by the State Treasurer. The State Treasurer shall credit money received by the program into three funds: The ABLE Program Fund, the ABLE Expense Fund, and the Treasury Management Cash Fund. The State Treasurer shall credit money received into the appropriate fund. The State Treasurer and Accounting Administrator of the Department of Administrative Services shall determine the state fund types necessary to comply with section 529A and state policy. The money in the funds shall be invested by the state investment officer pursuant to policies established by the Nebraska Investment Council. The program fund, the expense fund, and the Treasury Management Cash Fund shall be separately administered.

(2) The ABLE Program Fund is created. All money paid by participants in connection with accounts and all investment income earned on such money shall be deposited as received into separate accounts within the program fund. Contributions to the program may only be made in the form of cash. All funds generated in connection with accounts shall be deposited into the appropriate accounts within the program fund. A beneficiary shall not provide investment direction regarding contributions or earnings held by the program. Money accrued by designated beneficiaries in the program fund may be used for qualified disability expenses. Any money in the program fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(3)(a) The ABLE Expense Fund is created. The expense fund shall be used to pay costs associated with the program and shall be funded with fees assessed to the program fund.

(b) The State Treasurer shall transfer from the expense fund to the State Investment Officer's Cash Fund an amount equal to the pro rata share of the budget appropriated to the Nebraska Investment Council as permitted in section 72-1249.02, to cover reasonable expenses incurred for investment management of the program. Annually and prior to such transfer to the State Investment Officer's Cash Fund, the State Treasurer shall report to the budget division of the Department of Administrative Services and to the Legislative Fiscal Analyst the amounts transferred during the previous fiscal year. The report submitted to the Legislative Fiscal Analyst shall be submitted electronically.

(c) When the State Treasurer determines that the ABLE Program Fund is generating enough fees to make the program self-sustaining, it is the intent of the Legislature to reimburse the Treasury Management Cash Fund for startup costs of the program from the expense fund.

(d) Any money in the expense fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(4) Until the State Treasurer determines that the ABLE Program Fund is generating enough fees to make the program self-sustaining, the costs of establishing, administering, operating, and maintaining the program shall be paid from the Treasury Management Cash Fund and, to the extent permitted by section 529A, from money transferred from the expense fund to the Treasury Management Cash Fund, in an amount authorized by an appropriation from the Legislature. The Treasury Management Cash Fund shall not be credited with any money from the program other than money transferred from the expense fund in an amount authorized by an appropriation by the Legislature or any interest income earned on the money from the program held in the Treasury Management Cash Fund.

(5) The assets of the program, including the program fund and excluding the expense fund and the Treasury Management Cash Fund, shall at all times be preserved, invested, and expended solely and only for the purposes of the program and shall be held in trust for the designated beneficiaries. No property rights in the program shall exist in favor of the state. Such assets of the program shall not be transferred or used by the state for any purposes other than the purposes of the program.

Source:Laws 2015, LB591, § 7.    


Cross References

77-1408. Annual audited financial report; supplemental information.

(1) The State Treasurer shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the program by November 1 to the Governor and the Legislature. The report submitted to the Legislature shall be submitted electronically. The State Treasurer shall cause the audit to be made either by the Auditor of Public Accounts or by an independent certified public accountant designated by the State Treasurer, and the audit shall include direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.

(2) The annual audit shall be supplemented by all of the following information prepared by the State Treasurer:

(a) Any related studies or evaluations prepared in the preceding year;

(b) A summary of the benefits provided by the program, including the number of designated beneficiaries in the program; and

(c) Any other information which is relevant in order to make a full, fair, and effective disclosure of the operations of the program, including the investment performance of the funds.

Source:Laws 2015, LB591, § 8.    


77-1409. State Treasurer; rules and regulations; powers.

The State Treasurer may adopt and promulgate rules and regulations, enter into contracts and agreements, charge fees and expenses to the funds held under the program or to persons establishing or owning accounts, make reports, retain designated administrators, employees, experts, and consultants, and do all other things necessary or convenient to implement sections 77-1401 to 77-1409.

Source:Laws 2015, LB591, § 9.    


77-1501. County board of equalization; who constitutes; meetings; county officials; duties.

The county board shall constitute the county board of equalization. The county board of equalization shall fairly and impartially equalize the values of all items of real property in the county so that all real property is assessed uniformly and proportionately.

The county assessor or his or her designee shall attend all meetings of the county board of equalization when such meetings pertain to the assessment or exemption of real and personal property. The county treasurer shall attend all meetings of the county board of equalization involving the exemption of motor vehicles from the motor vehicle tax. All records of the county assessor's office shall be available for the inspection and consideration of the county board of equalization. The county clerk, deputy, or designee pursuant to section 23-1302 shall attend all meetings of the county board of equalization and shall make a record of the proceedings of the county board of equalization.

Source:Laws 1903, c. 73, § 120, p. 428; R.S.1913, § 6436; C.S.1922, § 5971; C.S.1929, § 77-1701; R.S.1943, § 77-1501; Laws 1953, c. 273, § 1, p. 898; Laws 1997, LB 270, § 85;    Laws 1999, LB 194, § 23;    Laws 2005, LB 762, § 2;    Laws 2009, LB166, § 14;    Laws 2012, LB801, § 97.    


Annotations

77-1502. Board; protests; form; report; notification.

(1) The county board of equalization shall meet for the purpose of reviewing and deciding written protests filed pursuant to this section beginning on or after June 1 and ending on or before July 25 of each year. Protests regarding real property shall be signed and filed after the county assessor's completion of the real property assessment roll required by section 77-1315 and on or before June 30. For protests of real property, a protest shall be filed for each parcel. Protests regarding taxable tangible personal property returns filed pursuant to section 77-1229 from January 1 through May 1 shall be signed and filed on or before June 30. The county board in a county with a population of more than one hundred thousand inhabitants based upon the most recent federal decennial census may adopt a resolution to extend the deadline for hearing protests from July 25 to August 10. The resolution must be adopted before July 25 and it will affect the time for hearing protests for that year only. By adopting such resolution, such county waives any right to petition the Tax Equalization and Review Commission for adjustment of a class or subclass of real property under section 77-1504.01 for that year.

(2) Each protest shall be made on a form prescribed by the Tax Commissioner, signed, and filed with the county clerk of the county where the property is assessed. It shall be acceptable for a county to create its own form, including an electronic form, as long as the form captures the information required by this subsection. The protest shall contain or have attached a statement of the reason or reasons why the requested change should be made, including the requested valuation, and a description of the property to which the protest applies. If the property is real property, a description adequate to identify each parcel shall be provided. If the property is tangible personal property, a physical description of the property under protest shall be provided. If the protest does not contain or have attached the statement of the reason or reasons for the protest, including the requested valuation, or the applicable description of the property, the protest shall be dismissed by the county board of equalization. Counties may make reasonable efforts to contact protesters who have timely filed a protest but have either filed incomplete information or not used the required form. The protest shall also indicate whether the person signing the protest is an owner of the property or a person authorized to protest on behalf of the owner. If the person signing the protest is a person authorized to protest on behalf of the owner, such person shall provide the authorization with the protest. If the person signing the protest is not an owner of the property or a person authorized to protest on behalf of the owner, the county clerk shall mail a copy of the protest to the owner of the property at the address to which the property tax statements are mailed.

(3) Beginning January 1, 2014, in counties with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, for a protest regarding real property, each protester shall be afforded the opportunity to meet in person with the county board of equalization or a referee appointed under section 77-1502.01 to provide information relevant to the protested property value.

(4) No hearing of the county board of equalization on a protest filed under this section shall be held before a single commissioner or supervisor.

(5) The county clerk or county assessor shall prepare a separate report on each protest. The report shall include (a) a description adequate to identify the real property or a physical description of the tangible personal property to which the protest applies, (b) any recommendation of the county assessor for action on the protest, (c) if a referee is used, the recommendation of the referee, (d) the date the county board of equalization heard the protest, (e) the decision made by the county board of equalization, (f) the date of the decision, and (g) the date notice of the decision was mailed to the protester. The report shall contain, or have attached to it, a statement, signed by the chairperson of the county board of equalization, describing the basis upon which the board's decision was made. The report shall have attached to it a copy of that portion of the property record file which substantiates calculation of the protested value unless the county assessor certifies to the county board of equalization that a copy is maintained in either electronic or paper form in his or her office. One copy of the report, if prepared by the county clerk, shall be given to the county assessor on or before August 2. The county assessor shall have no authority to make a change in the assessment rolls until there is in his or her possession a report which has been completed in the manner specified in this section. If the county assessor deems a report submitted by the county clerk incomplete, the county assessor shall return the same to the county clerk for proper preparation.

(6) On or before August 2, or on or before August 18 in a county that has adopted a resolution to extend the deadline for hearing protests, the county clerk shall mail to the protester written notice of the board's decision. The notice shall contain a statement advising the protester that a report of the board's decision is available at the county clerk's or county assessor's office, whichever is appropriate. If the protester is not an owner of the property involved in the protest or a person authorized to protest on behalf of the owner, the county clerk shall also mail written notice of the board's decision to the owner of such property at the address to which the property tax statements are mailed.

Source:Laws 1903, c. 73, § 121, p. 428; Laws 1905, c. 112, § 1, p. 515; Laws 1909, c. 112, § 1, p. 444; Laws 1911, c. 104, § 14, p. 379; R.S.1913, § 6437; C.S.1922, § 5972; C.S.1929, § 77-1702; R.S.1943, § 77-1502; Laws 1947, c. 251, § 36, p. 826; Laws 1949, c. 233, § 1, p. 644; Laws 1953, c. 274, § 1, p. 899; Laws 1959, c. 355, § 25, p. 1267; Laws 1959, c. 371, § 1, p. 1307; Laws 1961, c. 377, § 6, p. 1158; Laws 1961, c. 384, § 1, p. 1177; Laws 1972, LB 1342, § 1;    Laws 1975, LB 312, § 1;    Laws 1984, LB 660, § 2;    Laws 1986, LB 174, § 1;    Laws 1986, LB 817, § 13;    Laws 1987, LB 508, § 44;    Laws 1992, LB 1063, § 124; Laws 1992, Second Spec. Sess., LB 1, § 97;    Laws 1994, LB 902, § 21;    Laws 1995, LB 452, § 23;    Laws 1995, LB 490, § 147;    Laws 1997, LB 270, § 86;    Laws 2003, LB 292, § 12;    Laws 2004, LB 973, § 33;    Laws 2005, LB 283, § 2;    Laws 2005, LB 299, § 1;    Laws 2006, LB 808, § 37;    Laws 2008, LB965, § 15;    Laws 2009, LB166, § 15;    Laws 2010, LB877, § 4;    Laws 2011, LB384, § 14;    Laws 2018, LB885, § 1;    Laws 2021, LB291, § 1.    


Annotations

77-1502.01. Board; referee; appointment; compensation; duties.

In all counties the county board of equalization may appoint one or more suitable persons to act as referees. The compensation of a referee shall be fixed by the county board and shall be payable from the general fund of the county. The county board of equalization may direct that any protest filed in accordance with section 77-1502, shall be heard in the first instance by the referee in the manner provided for the hearing of protests by the county board of equalization. Upon the conclusion of the hearing in each case, the referee shall transmit to the county board of equalization all papers relating to the case, together with his or her findings and recommendations in writing. The county board of equalization, after considering all papers relating to the protest and the findings and recommendations of the referee, may make the order recommended by the referee or any other order in the judgment of the board of equalization required by the findings of the referee, or may hear additional testimony, or may set aside such findings and hear the protest anew.

Source:Laws 1969, c. 626, § 1, p. 2525; Laws 1980, LB 658, § 1.


Annotations

77-1503. Repealed. Laws 1987, LB 508, § 50.

77-1503.01. Property exempt from equalization.

Any property valued by the state shall not be subject to the jurisdiction of the county board of equalization.

Source:Laws 1971, LB 945, § 4;    Laws 1984, LB 835, § 10;    Laws 1987, LB 508, § 45;    Laws 1992, LB 1063, § 125; Laws 1992, Second Spec. Sess., LB 1, § 98;    Laws 1995, LB 452, § 24;    Laws 1995, LB 490, § 148;    Laws 1997, LB 270, § 87;    Laws 1999, LB 194, § 24.    


Annotations

77-1504. Equalization of property; board; powers and duties; protest; procedure; notice of decision.

The county board of equalization may meet on or after June 1 and on or before July 25, or on or before August 10 if the board has adopted a resolution to extend the deadline for hearing protests under section 77-1502, to consider and correct the current year's assessment of any real property which has been undervalued or overvalued. The board shall give notice of the assessed value to the record owner or agent at his or her last-known address.

The county board of equalization in taking action pursuant to this section may only consider the report of the county assessor pursuant to section 77-1315.01.

Action of the county board of equalization pursuant to this section shall be for the current assessment year only.

The action of the county board of equalization may be protested to the board within thirty days after the mailing of the notice required by this section. If no protest is filed, the action of the board shall be final. If a protest is filed, the county board of equalization shall hear the protest in the manner prescribed in section 77-1502, except that all protests shall be heard and decided on or before September 15 or on or before September 30 if the county has adopted a resolution to extend the deadline for hearing protests under section 77-1502. Within seven days after the county board of equalization's final decision, the county clerk shall mail to the protester written notice of the decision. The notice shall contain a statement advising the protester that a report of the decision is available at the county clerk's or county assessor's office, whichever is appropriate.

The action of the county board of equalization upon a protest filed pursuant to this section may be appealed to the Tax Equalization and Review Commission on or before October 15 or on or before October 30 if the county has adopted a resolution to extend the deadline for hearing protests under section 77-1502.

Source:Laws 1903, c. 73, § 121, p. 428; Laws 1905, c. 112, § 1, p. 515; Laws 1909, c. 112, § 1, p. 444; Laws 1911, c. 104, § 14, p. 379; R.S.1913, § 6437; C.S.1922, § 5972; C.S.1929, § 77-1702; R.S.1943, § 77-1504; Laws 1947, c. 251, § 37, p. 826; Laws 1979, LB 187, § 210;    Laws 1984, LB 835, § 11;    Laws 1987, LB 508, § 46;    Laws 1988, LB 1207, § 8;    Laws 1989, LB 361, § 21;    Laws 1991, LB 320, § 11;    Laws 1992, LB 1063, § 126; Laws 1992, Second Spec. Sess., LB 1, § 99;    Laws 1994, LB 902, § 22;    Laws 1995, LB 452, § 25;    Laws 1995, LB 490, § 149;    Laws 1997, LB 270, § 88;    Laws 1998, LB 1104, § 10;    Laws 1999, LB 194, § 25;    Laws 2005, LB 263, § 13;    Laws 2005, LB 283, § 3;    Laws 2006, LB 808, § 38;    Laws 2007, LB167, § 2;    Laws 2011, LB384, § 15.    


Annotations

77-1504.01. Adjustment to class or subclass of real property; procedure.

(1) Unless the county has adopted a resolution to extend the deadline for hearing protests under section 77-1502, after completion of its actions and based upon the hearings conducted pursuant to sections 77-1502 and 77-1504, a county board of equalization may petition the Tax Equalization and Review Commission to consider an adjustment to a class or subclass of real property within the county. Petitions must be filed with the commission on or before July 26.

(2) The commission shall hear and take action on a petition filed by a county board of equalization on or before August 10. Hearings held pursuant to this section may be held by means of videoconference or telephone conference. The burden of proof is on the petitioning county to show that failure to make an adjustment would result in values that are not equitable and in accordance with the law. At the hearing the commission may receive testimony from any interested person.

(3) After a hearing the commission shall, within the powers granted in section 77-5023, enter its order based on evidence presented to it at such hearing and the hearings held pursuant to section 77-5022 for that year. The order shall specify the percentage increase or decrease and the class or subclass of real property affected or any corrections or adjustments to be made to the class or subclass of real property affected. When issuing an order to adjust a class or subclass of real property, the commission may exclude individual properties from that order whose value has already been adjusted by a county board of equalization in the same manner as the commission directs in its order. On or before August 10 of each year, the commission shall send its order by certified mail to the county assessor and by regular mail to the county clerk and chairperson of the county board.

(4) The county assessor shall make the specified changes to each item of property in the county as directed by the order of the commission. In implementing such order, the county assessor shall adjust the values of the class or subclass that is the subject of the order. For properties that have already received an adjustment from the county board of equalization, an additional adjustment may be made so that total adjustments made are equal to the commission's ordered adjustment and no additional adjustment shall be made applying the commission's order, but such an exclusion from the commission's order shall not preclude adjustments to those properties for corrections or omissions. The county assessor of the county adjusted by an order of the commission shall recertify the abstract of assessment to the Property Tax Administrator on or before August 20.

Source:Laws 1995, LB 452, § 26;    Laws 1997, LB 397, § 22;    Laws 1998, LB 306, § 22;    Laws 1999, LB 140, § 1;    Laws 1999, LB 194, § 26;    Laws 2000, LB 968, § 58;    Laws 2003, LB 291, § 2;    Laws 2004, LB 973, § 34;    Laws 2005, LB 283, § 4;    Laws 2008, LB965, § 16;    Laws 2011, LB384, § 16.    


Annotations

77-1505. Repealed. Laws 1959, c. 371, § 5.

77-1506. Repealed. Laws 1987, LB 508, § 50.

77-1506.01. Application for reduction in value; waiver of notice.

Whenever any owner of real or personal property applies to the county board of equalization for a reduction in the taxable value of any such property, the owner shall be deemed to have waived notice of increase in the taxable value of such property which is found undervalued by the county board of equalization notwithstanding the provisions of any other statutes to the contrary.

Source:Laws 1969, c. 673, § 3, p. 2598; Laws 1979, LB 187, § 211;    Laws 1992, LB 719A, § 167.    


77-1506.02. Repealed. Laws 1995, LB 452, § 37; Laws 1995, LB 490, § 195.

77-1506.03. Repealed. Laws 1988, LB 1207, § 12.

77-1506.04. Unconstitutional.


Note: The Revisor of Statutes, as authorized by section 49-705, has omitted sections 77-1506.04 to 77-1506.08 which the Supreme Court has held to be unconstitutional. State ex rel. Meyer v. Peters, 191 Neb. 330, 215 N.W.2d 520 (1974).


77-1506.05. Unconstitutional.


Note: The Revisor of Statutes, as authorized by section 49-705, has omitted sections 77-1506.04 to 77-1506.08 which the Supreme Court has held to be unconstitutional. State ex rel. Meyer v. Peters, 191 Neb. 330, 215 N.W.2d 520 (1974).


77-1506.06. Unconstitutional.


Note: The Revisor of Statutes, as authorized by section 49-705, has omitted sections 77-1506.04 to 77-1506.08 which the Supreme Court has held to be unconstitutional. State ex rel. Meyer v. Peters, 191 Neb. 330, 215 N.W.2d 520 (1974).


77-1506.07. Unconstitutional.


Note: The Revisor of Statutes, as authorized by section 49-705, has omitted sections 77-1506.04 to 77-1506.08 which the Supreme Court has held to be unconstitutional. State ex rel. Meyer v. Peters, 191 Neb. 330, 215 N.W.2d 520 (1974).


77-1506.08. Unconstitutional.


Note: The Revisor of Statutes, as authorized by section 49-705, has omitted sections 77-1506.04 to 77-1506.08 which the Supreme Court has held to be unconstitutional. State ex rel. Meyer v. Peters, 191 Neb. 330, 215 N.W.2d 520 (1974).


77-1506.09. Repealed. Laws 1982, LB 592, § 2.

77-1506.10. Repealed. Laws 1986, LB 737, § 1.

77-1507. Board; duties; addition of omitted property; clerical errors; protest; procedure.

(1) The county board of equalization may meet at any time for the purpose of assessing any omitted real property that was not reported to the county assessor pursuant to section 77-1318.01 and for correction of clerical errors as defined in section 77-128 that result in a change of assessed value. The county board of equalization shall give notice of the assessed value of the real property to the record owner or agent at his or her last-known address. For real property which has been omitted in the current year, the county board of equalization shall not send notice pursuant to this section on or before June 1.

Protests of the assessed value proposed for omitted real property pursuant to this section or a correction for clerical errors shall be filed with the county board of equalization within thirty days after the mailing of the notice. All provisions of section 77-1502 except dates for filing a protest, the period for hearing protests, and the date for mailing notice of the county board of equalization's decision are applicable to any protest filed pursuant to this section. The county board of equalization shall issue its decision on the protest within thirty days after the filing of the protest.

(2) The county clerk shall, within seven days after the board's final decision, send:

(a) For protested action, a notification to the protester of the board's final action advising the protester that a report of the board's final decision is available at the county clerk's or county assessor's office, whichever is appropriate; and

(b) For protested and nonprotested action, a report to the Property Tax Administrator which shall state a description adequate to identify the property, the reason such property was not assessed pursuant to section 77-1301, and a statement of the board's justification for its action. A copy of the report shall be available for public inspection in the office of the county clerk.

(3) The action of the county board of equalization upon a protest filed pursuant to this section may be appealed to the Tax Equalization and Review Commission within thirty days after the board's final decision.

(4) Improvements to real property which were properly reported to the county assessor pursuant to section 77-1318.01 for the current year and were not added to the assessment roll by the county assessor on or before March 19 shall only be added to the assessment roll by the county board of equalization from June 1 through July 25, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, such improvements which were not added to the assessment roll on or before March 25 shall only be added to the assessment roll by the county board of equalization from June 1 through July 25. In counties that have adopted a resolution to extend the deadline for hearing protests under section 77-1502, the deadline of July 25 shall be extended to August 10.

Source:Laws 1903, c. 73, § 121, p. 428; Laws 1905, c. 112, § 1, p. 515; Laws 1909, c. 112, § 1, p. 444; Laws 1911, c. 104, § 14, p. 379; R.S.1913, § 6437; C.S.1922, § 5972; C.S.1929, § 77-1702; R.S.1943, § 77-1507; Laws 1987, LB 508, § 48;    Laws 1995, LB 490, § 150;    Laws 1997, LB 270, § 89;    Laws 1999, LB 194, § 27;    Laws 2005, LB 263, § 14;    Laws 2005, LB 283, § 5;    Laws 2006, LB 808, § 39;    Laws 2010, LB877, § 5;    Laws 2011, LB384, § 17.    


Annotations

77-1507.01. Failure to give notice; effect.

Any person otherwise having a right to appeal may petition the Tax Equalization and Review Commission in accordance with section 77-5013, on or before December 31 of each year, to determine the actual value or special value of real property for that year if a failure to give notice prevented timely filing of a protest or appeal provided for in sections 77-1501 to 77-1510.

Source:Laws 2005, LB 15, § 5;    Laws 2007, LB167, § 3;    Laws 2009, LB166, § 16.    


Annotations

77-1508. Board; examination of persons; production and inspection of records.

Whenever any county board of equalization shall have reason to believe that any person, company or corporation has not listed all of his or its property for taxation, or that any property has not been fairly valued and assessed, it shall be lawful for such board to call before it any such person, or any agent or officer of any such corporation, and require the production of any books, records or papers. The person so called shall be sworn, and shall answer under oath, and give all information which he may possess, touching the existence, location and value of any property sought to be listed, valued and assessed, and no person so called shall be excused from answering any question put to him on the ground that his answer might tend to criminate him, but no answer he shall make or testimony he may give shall be used against him in any criminal prosecution.

Source:Laws 1903, c. 73, § 122, p. 430; R.S.1913, § 6438; C.S.1922, § 5973; C.S.1929, § 77-1703; R.S.1943, § 77-1508.


Annotations

77-1509. Board; compelling attendance of witnesses; penalties; fees.

The county board of equalization may issue process to compel the attendance before it of any person with books, records and papers, if necessary, which process shall be served by the sheriff the same as a summons from the district court, and he shall receive the same fees therefor. Any person who shall fail to respond to such process, or who shall refuse to answer any proper question put to him by the board, shall forfeit the sum of five hundred dollars, to be recovered in a civil action in the name of the county. Witnesses shall receive the same fees as witnesses in the district court to be paid by the person, the valuation of whose property is being investigated, in case the board finds that such person has willfully concealed or undervalued his property; otherwise, by the county.

Source:Laws 1903, c. 73, § 123, p. 430; R.S.1913, § 6439; C.S.1922, § 5974; C.S.1929, § 77-1704; R.S.1943, § 77-1509.


Annotations

77-1510. Board; appeals, how taken.

Any action of the county board of equalization pursuant to section 77-1502 may be appealed to the Tax Equalization and Review Commission in accordance with section 77-5013 on or before August 24 or on or before September 10 if the county has adopted a resolution to extend the deadline for hearing protests under section 77-1502.

Source:Laws 1903, c. 73, § 124, p. 430; R.S.1913, § 6440; C.S.1922, § 5975; C.S.1929, § 77-1705; R.S.1943, § 77-1510; Laws 1947, c. 251, § 38, p. 827; Laws 1959, c. 371, § 2, p. 1308; Laws 1969, c. 673, § 1, p. 2597; Laws 1979, LB 187, § 213;    Laws 1986, LB 174, § 2;    Laws 1988, LB 1207, § 10;    Laws 1989, LB 653, § 3;    Laws 1989, LB 762, § 1;    Laws 1991, LB 732, § 141; Laws 1991, LB 829, § 9; Laws 1992, LB 360, § 35;    Laws 1992, LB 1063, § 128; Laws 1992, Second Spec. Sess., LB 1, § 101;    Laws 1992, Fourth Spec. Sess., LB 1, § 15;    Laws 1995, LB 452, § 27;    Laws 1995, LB 490, § 151;    Laws 1996, LB 1040, § 4;    Laws 1997, LB 270, § 90;    Laws 1997, LB 397, § 23;    Laws 2001, LB 170, § 18;    Laws 2001, LB 465, § 2;    Laws 2003, LB 291, § 3;    Laws 2004, LB 973, § 35;    Laws 2005, LB 283, § 6.    


Annotations

77-1510.01. Board; powers; costs and fees.

After the Tax Equalization and Review Commission obtains exclusive jurisdiction of an appeal from a decision, order, determination, or action of a county board of equalization pursuant to section 77-5013, the board shall have no power or authority to compromise, settle, or otherwise change the decision, order, determination, or action it has taken. The board may, with approval of the Tax Equalization and Review Commission, offer to confess judgment for part of the value claimed or part of the causes involved in the action. If (1) the appellant is present and refuses to accept such confession of judgment in full of the appellant's demands against the board in such action or the appellant fails to attend having had reasonable notice that the offer would be made, its terms, and the time of making it and (2) at hearing the appellant does not obtain more relief than was offered to be confessed, the appellant shall pay all the costs and fees the board incurred after making the offer. The offer shall not be deemed to be an admission of the cause of action or relief to which the appellant is entitled, and the offer shall not be given in evidence at the hearing.

Source:Laws 1989, LB 653, § 4;    Laws 1995, LB 490, § 152;    Laws 2004, LB 973, § 36.    


77-1511. Repealed. Laws 2001, LB 465, § 12.

77-1512. Repealed. Laws 1959, c. 371, § 5.

77-1513. Repealed. Laws 2002, LB 994, § 33.

77-1514. Abstract of property assessment rolls; prepared by county assessor; file with Property Tax Administrator.

(1) The county assessor shall prepare an abstract of the property assessment rolls of locally assessed real property of his or her county on forms prescribed and furnished by the Tax Commissioner. The county assessor shall file the abstract with the Property Tax Administrator on or before March 19, except beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the real property abstract shall be filed on or before March 25. The abstract shall show the taxable value of real property in the county as determined by the county assessor and any other information as required by the Property Tax Administrator. The Property Tax Administrator, upon written request from the county assessor, may for good cause shown extend the final filing due date for the abstract and the statutory deadlines provided in section 77-5027. The Property Tax Administrator may extend the statutory deadline in section 77-5028 for a county if the deadline is extended for that county. Beginning January 1, 2014, in any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the county assessor shall request an extension of the final filing due date by March 22.

(2) For tax years prior to tax year 2020, the county assessor shall prepare an abstract of the property assessment rolls of locally assessed personal property of his or her county on forms prescribed and furnished by the Tax Commissioner. The county assessor shall electronically file the abstract with the Property Tax Administrator on or before July 20.

Source:Laws 1903, c. 73, § 125, p. 431; R.S.1913, § 6442; C.S.1922, § 5977; C.S.1929, § 77-1707; R.S.1943, § 77-1514; Laws 1945, c. 190, § 1, p. 590; Laws 1947, c. 251, § 39, p. 827; Laws 1959, c. 371, § 4, p. 1309; Laws 1987, LB 508, § 49;    Laws 1992, LB 1063, § 129; Laws 1992, Second Spec. Sess., LB 1, § 102;    Laws 1994, LB 902, § 24;    Laws 1995, LB 452, § 28;    Laws 1995, LB 490, § 155;    Laws 1997, LB 270, § 91;    Laws 1999, LB 194, § 28;    Laws 2000, LB 968, § 59;    Laws 2004, LB 973, § 37;    Laws 2005, LB 15, § 6;    Laws 2005, LB 261, § 7;    Laws 2007, LB334, § 79;    Laws 2011, LB162, § 1;    Laws 2011, LB384, § 18;    Laws 2015, LB259, § 9;    Laws 2020, LB1107, § 128.    


Annotations

77-1515. Repealed. Laws 2006, LB 808, § 51.

77-1601. County tax levy; by whom made; when; what included; correction of clerical error; procedure.

(1) The county board of equalization shall each year, on or before October 20, levy the necessary taxes for the current year if within the limit of the law. The levy shall include an amount for operation of all functions of county government and shall also include all levies necessary to fund tax requests that are authorized as provided in sections 77-3442 to 77-3444, including requests certified under the Property Tax Request Act.

(2) On or before November 5, the county board of equalization upon its own motion may act to correct a clerical error which has resulted in the calculation of an incorrect levy by any entity with a tax request as provided in sections 77-3442 to 77-3444, including requests certified under the Property Tax Request Act. The county board of equalization shall hold a public hearing to determine what adjustment to the levy is proper, legal, or necessary. Notice shall be provided to the governing body of each political subdivision affected by the error. Notice of the hearing as required by section 84-1411 shall include the following: (a) The time and place of the hearing, (b) the dollar amount at issue, and (c) a statement setting forth the nature of the error.

(3) Upon the conclusion of the hearing, the county board of equalization shall issue a corrected levy if it determines that an error was made in the original levy which warrants correction. The county board of equalization shall then order (a) the county assessor, county clerk, and county treasurer to revise assessment books, unit valuation ledgers, tax statements, and any other tax records to reflect the correction made and (b) the recertification of the information provided to the Property Tax Administrator pursuant to section 77-1613.01.

Source:Laws 1903, c. 73, § 136, p. 436; Laws 1905, c. 111, § 4, p. 513; Laws 1907, c. 101, § 1, p. 352; R.S.1913, § 6456; Laws 1915, c. 109, § 1, p. 257; Laws 1921, c. 136, § 1, p. 599; C.S.1922, § 5979; Laws 1927, c. 176, § 1, p. 514; Laws 1929, c. 181, § 1, p. 639; C.S.1929, § 77-1801; Laws 1931, c. 137, § 1, p. 381; Laws 1933, c. 133, § 1, p. 510; Laws 1935, c. 52, § 1, p. 179; Laws 1937, c. 172, § 1, p. 679; C.S.Supp.,1941, § 77-1801; R.S.1943, § 77-1601; Laws 1947, c. 250, § 30, p. 799; Laws 1947, c. 251, § 40, p. 828; Laws 1949, c. 234, § 1, p. 645; Laws 1953, c. 275, § 1, p. 900; Laws 1965, c. 470, § 1, p. 1517; Laws 1965, c. 477, § 2, p. 1538; Laws 1969, c. 656, § 2, p. 2574; Laws 1980, LB 766, § 1; Laws 1992, LB 1063, § 130; Laws 1992, Second Spec. Sess., LB 1, § 103;    Laws 1993, LB 734, § 49;    Laws 1995, LB 167, § 1;    Laws 1995, LB 452, § 29;    Laws 1995, LB 490, § 157;    Laws 1996, LB 693, § 11;    Laws 1996, LB 1085, § 56;    Laws 1997, LB 269, § 41;    Laws 1998, LB 306, § 23;    Laws 2003, LB 191, § 1;    Laws 2021, LB644, § 19.    


Cross References

Annotations

77-1601.01. Repealed. Laws 1998, LB 306, § 51.

77-1601.02. Transferred to section 77-1632.

77-1602. Repealed. Laws 1996, LB 1085, § 60.

77-1603. Repealed. Laws 1996, LB 1085, § 60.

77-1604. Repealed. Laws 1979, LB 80, § 116.

77-1605. Repealed. Laws 1996, LB 1085, § 60.

77-1605.01. Repealed. Laws 1996, LB 1085, § 60.

77-1605.02. Repealed. Laws 1955, c. 295, § 3.

77-1605.03. Repealed. Laws 1996, LB 1085, § 60.

77-1606. County tax levy; appeal by taxpayer; when taken; does not suspend collection.

Any taxpayer may appeal from the action of the county board of equalization in making the levy, if in the judgment of such taxpayer the levy is for an unlawful or unnecessary purpose or in excess of the requirements of a political subdivision, to the Tax Equalization and Review Commission in accordance with section 77-5013 within thirty days after the county board of equalization's action. The appeal shall set forth the levy appealed from and the amount or extent to which the appellant claims the levy is for an unlawful or unnecessary purpose or in excess of the requirements of a political subdivision, and to that extent and no further shall such levy be affected by such appeal. It shall not be necessary for such taxpayer to appear before the county board of equalization at the time of the making of the levy or prior thereto in order to entitle him or her to such appeal.

No appeal shall in any manner suspend the collection of any tax, nor the duties of the officers relating thereto during the pendency of the appeal, however, all taxes received based on the appealed levy or portion thereof appealed shall be kept by the treasurer in a special fund without distribution. The commission shall give notice of the appeal to the county board of equalization, county clerk, county assessor, and county treasurer of each county in which the tax is levied. The county board of equalization, county clerk, county assessor, or county treasurer shall not be charged with notice of the appeal until notice is served by the commission.

Source:Laws 1907, c. 101, § 1, p. 352; R.S.1913, § 6456; Laws 1915, c. 109, § 1, p. 256; Laws 1921, c. 136, § 1, p. 599; C.S.1922, § 5979; Laws 1927, c. 176, § 1, p. 514; Laws 1929, c. 181, § 1, p. 639; C.S.1929, § 77-1801; Laws 1931, c. 137, § 1, p. 381; Laws 1933, c. 133, § 1, p. 510; Laws 1935, c. 52, § 1, p. 179; Laws 1937, c. 172, § 1, p. 679; C.S.Supp.,1941, § 77-1801; R.S.1943, § 77-1606; Laws 1947, c. 250, § 34, p. 801; Laws 1995, LB 490, § 158;    Laws 1997, LB 269, § 44;    Laws 2004, LB 973, § 38.    


Annotations

77-1607. Repealed. Laws 2004, LB 973, § 72.

77-1608. County tax levy; appeal by taxpayer; proceedings.

The Tax Equalization and Review Commission shall hear the appeal and determine whether or not the levy appealed from or any part thereof is for an unlawful or unnecessary purpose or in excess of the requirements of the political subdivision. The decision of the commission shall be certified to the county assessor, county clerk, and county treasurer of each county in which the tax was levied to revise all tax records to reflect the corrected levy.

Source:Laws 1907, c. 101, § 1, p. 352; R.S.1913, § 6456; Laws 1915, c. 109, § 1, p. 256; Laws 1921, c. 136, § 1, p. 599; C.S.1922, § 5979; Laws 1927, c. 176, § 1, p. 514; Laws 1929, c. 181, § 1, p. 639; C.S.1929, § 77-1801; Laws 1931, c. 137, § 1, p. 381; Laws 1933, c. 133, § 1, p. 510; Laws 1935, c. 52, § 1, p. 179; Laws 1937, c. 172, § 1, p. 679; C.S.Supp.,1941, § 77-1801; R.S.1943, § 77-1608; Laws 1947, c. 250, § 35, p. 802; Laws 1997, LB 269, § 46;    Laws 2004, LB 973, § 39.    


Annotations

77-1609. Repealed. Laws 2004, LB 973, § 72.

77-1610. Return of taxes paid; correction of tax rolls.

If the tax books have been delivered to the county treasurer for collection of the taxes before the determination of the appeal by the Tax Equalization and Review Commission, then the county treasurer shall, upon receipt of the certified final decision of the commission, distribute or return to the taxpayers in accordance with such decision the appropriate amount of taxes paid and held pursuant to section 77-1606 and, if necessary, correct the tax rolls in his or her office to conform to such decision unless a further appeal is taken, in which case the county treasurer shall hold the taxes until the final determination of the appeal and thereupon distribute or return the same in conformity to such decision and, if necessary, correct the tax rolls.

Source:Laws 1907, c. 101, § 1, p. 352; R.S.1913, § 6456; Laws 1915, c. 109, § 1, p. 256; Laws 1921, c. 136, § 1, p. 599; C.S.1922, § 5979; Laws 1927, c. 176, § 1, p. 514; Laws 1929, c. 181, § 1, p. 639; C.S.1929, § 77-1801; Laws 1931, c. 137, § 1, p. 381; Laws 1933, c. 133, § 1, p. 510; Laws 1935, c. 52, § 1, p. 179; Laws 1937, c. 172, § 1, p. 679; C.S.Supp.,1941, § 77-1801; R.S.1943, § 77-1610; Laws 1991, LB 732, § 143; Laws 1992, LB 360, § 37;    Laws 1997, LB 269, § 48;    Laws 1998, LB 306, § 26;    Laws 2004, LB 973, § 40.    


77-1611. Repealed. Laws 1967, c. 504, § 1.

77-1611.01. Repealed. Laws 1967, c. 504, § 1.

77-1612. Repealed. Laws 1996, LB 1085, § 60.

77-1613. Tax list; preparation; when and by whom; form and contents.

After the levy of taxes has been made and before November 20, the county assessor shall transcribe the assessments into a suitable book to be provided at the expense of the county, properly ruled and headed with the distinct columns in which shall be entered the description of the lands, number of acres and value, number of city and village lots and their value, taxable value of taxable personal property, delinquent taxes of previous years, the amount of taxes due on the day the first installment becomes due, and the amount of delinquent taxes due on the day the second installment thereof becomes due, as provided by law, in the event the taxpayer elects to pay taxes in two equal semiannual installments.

Source:Laws 1903, c. 73, § 139, p. 437; R.S.1913, § 6459; Laws 1921, c. 158, § 1, p. 649; C.S.1922, § 5982; C.S.1929, § 77-1804; Laws 1931, c. 65, § 10, p. 184; Laws 1933, c. 136, § 1, p. 516; C.S.Supp.,1941, § 77-1804; Laws 1943, c. 175, § 2, p. 610; R.S.1943, § 77-1613; Laws 1945, c. 191, § 1, p. 591; Laws 1945, c. 189, § 2, p. 584; Laws 1947, c. 250, § 36, p. 802; Laws 1992, LB 1063, § 132; Laws 1992, Second Spec. Sess., LB 1, § 105;    Laws 1997, LB 269, § 49;    Laws 1997, LB 270, § 92;    Laws 1998, LB 306, § 27.    


Annotations

77-1613.01. Certification by county official to Property Tax Administrator; contents.

The county assessor or county clerk shall certify to the Property Tax Administrator, on or before December 1 of each year, the total taxable valuation and the Certificate of Taxes Levied. The certificate shall be used for statistical purposes and shall specify the information necessary to determine the total taxable value, tax levies, and total property taxes requested by the political subdivisions for the current year on forms prescribed and furnished by the Tax Commissioner. The certificate shall include for each political subdivision a statement of the amount of property taxes sought and the tax levy made for (1) the payment of principal or interest on bonds issued by the political subdivision and (2) all other purposes.

Source:Laws 1913, c. 173, § 1, p. 525; R.S.1913, § 6389; Laws 1921, c. 133, art. VI, § 15, p. 560; C.S.1922, § 5853; C.S.1929, § 77-515; R.S.1943, § 77-628; Laws 1949, c. 227, § 3, p. 632; Laws 1951, c. 259, § 2, p. 885; Laws 1965, c. 478, § 4, p. 1541; Laws 1983, LB 193, § 3;    Laws 1985, LB 268, § 24;    R.S.1943, (1986), § 77-628; Laws 1989, Spec. Sess., LB 7, § 3; Laws 1991, LB 829, § 10; Laws 1992, LB 719A, § 172;    Laws 1995, LB 490, § 159;    Laws 1996, LB 1362, § 7;    Laws 1997, LB 269, § 50;    Laws 1998, LB 306, § 28;    Laws 2001, LB 275, § 1;    Laws 2007, LB334, § 80.    


77-1613.02. Tax list; corrections; prohibited acts; violation; penalty.

The county assessor or county clerk shall correct the assessment and tax rolls after action of the county board of equalization. Each correction shall be made in triplicate, each set of triplicate forms being consecutively numbered, and there shall be entered upon such form all data pertaining to the assessment which is to be corrected. The correction shall show all additions and reductions, the amount of tax added or reduced, with the reason therefor, and the page or pages of the tax rolls upon which such change is to be made. The original copy shall be delivered to the county treasurer, the duplicate copy to the county clerk, and the triplicate copy shall remain in the office of the county assessor. The county assessor or county clerk shall provide upon demand a listing showing each entry and sorted by tax year. The county treasurer shall thereupon correct the tax roll to conform to the correction copy and all changes shall be made in red ink, drawing a line through the original or erroneous figures, but not erasing the same. No county assessor shall reduce or increase the valuation of any property, real or personal, without the approval of the county board of equalization. Any county assessor who shall willfully reduce or increase the valuation of any property, without the approval of the county board of equalization, as provided in this section, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not less than twenty dollars nor more than one hundred dollars.

Source:Laws 1921, c. 133, art. XI, § 6, p. 592; C.S.1922, § 5903; C.S.1929, § 77-1006; Laws 1939, c. 100, § 1, p. 457; C.S.Supp.,1941, § 77-1006; R.S.1943, § 77-519; Laws 1947, c. 250, § 12, p. 791; Laws 1951, c. 261, § 1, p. 887; R.S.1943, (1986), § 77-519; Laws 1995, LB 490, § 160;    Laws 1997, LB 270, § 93;    Laws 2007, LB166, § 10.    


Annotations

77-1613.03. Repealed. Laws 2006, LB 808, § 51.

77-1613.04. Assessment roll and tax list; corrections.

The county assessor after July 25, or after August 10 in counties that have adopted a resolution to extend the deadline for hearing protests under section 77-1502, and with approval of the county board of equalization shall correct the assessment roll and the tax list, if necessary, in the case of a clerical error as defined in section 77-128 that results in a change in the value of the real property. Clerical errors that do not result in a change of value on the assessment roll may be corrected at any time by the county assessor. All corrections to the tax list shall be made as provided in section 77-1613.02.

Source:Laws 1999, LB 194, § 30;    Laws 2005, LB 283, § 7.    


77-1614. Tax list; consolidated tax; how entered.

All taxes which are uniform, throughout any precinct, township, school district, learning community, village, city, county, or other taxing subdivision of a county, shall be formed into a single tax, be entered upon the tax list in a double column, and be denominated a consolidated tax.

Source:Laws 1903, c. 73, § 140, p. 438; R.S.1913, § 6460; Laws 1921, c. 158, § 1, p. 649; C.S.1922, § 5983; C.S.1929, § 77-1805; Laws 1933, c. 136, § 2, p. 517; C.S.Supp.,1941, § 77-1805; Laws 1943, c. 175, § 3(1), p. 611; R.S.1943, § 77-1614; Laws 1957, c. 334, § 1, p. 1168; Laws 1997, LB 270, § 94;    Laws 2006, LB 1024, § 6.    


Annotations

77-1615. Repealed. Laws 2013, LB 29, § 4.

77-1615.01. Tax list; use of electronic data processing equipment; levy and collection of taxes.

The county board of any county is authorized to direct that for all purposes of assessment of property, and for the levy and collection of taxes and special assessments, there shall be used tax records or random access devices suitable for use in connection with electronic data processing equipment or other mechanical office equipment, in accordance with procedures to be approved by the Property Tax Administrator. Such county board is also authorized to direct that a statement of taxes and special assessments be mailed or otherwise delivered to the person, firm, association, or corporation against whom such taxes are assessed. Failure to receive such statement shall not relieve the taxpayer from any liability to pay such taxes or assessments and penalties accrued thereon.

Source:Laws 1965, c. 464, § 1, p. 1475; Laws 1969, c. 676, § 1, p. 2601; Laws 1995, LB 490, § 161.    


77-1616. Tax list; delivery to county treasurer; when; warrant for collection.

The tax list shall be completed by the county assessor and delivered to the county treasurer on or before November 22. At the same time the county assessor or county clerk shall transmit a warrant, which warrant shall be signed by the county assessor or county clerk and shall in general terms command the treasurer to collect taxes therein mentioned according to law. No informality therein, and no delay in the transmitting of the same after the time above specified, shall affect the validity of any taxes or sales, or other proceedings for the collection of taxes as provided for in this chapter. Whenever it shall be discovered that the warrant provided for in this section was not at the proper time attached to any tax list, or was not transmitted as herein provided for any preceding year or years, in the hands of the county treasurer, the county assessor shall forthwith attach or transmit such warrant, which shall be in the same form and have the same force and effect as if it had been attached to such tax list, or transmitted as herein provided, before the delivery thereof to the county treasurer.

Source:Laws 1903, c. 73, § 141, p. 438; R.S.1913, § 6461; C.S.1922, § 5984; C.S.1929, § 77-1806; Laws 1943, c. 175, § 4, p. 612; R.S.1943, § 77-1616; Laws 1945, c. 189, § 4, p. 586; Laws 1951, c. 265, § 1, p. 893; Laws 1969, c. 677, § 1, p. 2602; Laws 1997, LB 269, § 52;    Laws 1997, LB 270, § 96;    Laws 1998, LB 306, § 29;    Laws 2013, LB29, § 1.    


Annotations

77-1617 Image
77-1617. Tax list; property of county; form.

The tax list shall be the property of the county and shall be substantially in the form set forth in this section, with such additions and amendments thereto as may be necessary to make it conform to law.

Owners' Names
Description of Lands or Town Lots
Part of section or part of town
Section or lot
Town or block
Improvements on leased lands
Range
Acres
Value
No. School District
No. Road District
State and County Consolidated Tax
County and District Taxes
Road Tax
Sch. Dist. Tax
Sch. Dist. Bond Tax
Precinct Tax
Advertising
Total
No. of Receipt
Remarks

Source:Laws 1903, c. 73, § 142, p. 438; R.S.1913, § 6462; C.S.1922, § 5985; C.S.1929, § 77-1807; Laws 1943, c. 175, § 5, p. 612; R.S.1943, § 77-1617; Laws 1945, c. 189, § 5, p. 587; Laws 1949, c. 238, § 1, p. 650; Laws 1957, c. 334, § 2, p. 1169; Laws 1992, LB 1063, § 133; Laws 1992, Second Spec. Sess., LB 1, § 106;    Laws 1997, LB 270, § 97.    


Annotations

77-1618. Tax list; entry of amount.

As soon as the county treasurer receives the tax lists of the county, he or she shall enter in the column opposite the description of the property the amount of unpaid taxes with the year or years in which such taxes were due and the date of unredeemed sales, if any, for previous years on such property.

Source:Laws 1903, c. 73, § 143, p. 439; R.S.1913, § 6463; C.S.1922, § 5986; C.S.1929, § 77-1808; R.S.1943, § 77-1618; Laws 1992, LB 1063, § 134; Laws 1992, Second Spec. Sess., LB 1, § 107.    


Annotations

77-1619. Judgments against public corporations; payment by tax levy.

Whenever any judgment shall be obtained in any court of competent jurisdiction in this state for the payment of a sum of money against any county, township, school district, road district, town or city board of education, or against any municipal corporation, or when any such judgment has been recovered and now remains unpaid, it shall be the duty of the county board, school district board of education, city council or other corporate officers, as the case may require, to make provision for the prompt payment of the same.

Source:Laws 1867 (Ter.), § 1, p. 13; R.S.1913, § 6464; C.S.1922, § 5987; C.S.1929, § 77-1809; R.S.1943, § 77-1619.


Annotations

77-1620. Judgments against public corporations; payment by levy in addition to levy for ordinary purposes.

If the amount of revenue derived from taxes levied and collected for ordinary purposes shall be insufficient to meet and pay the current expenses for the year in which the levy is made, and also to pay the judgments remaining unpaid, it shall be the duty of the proper officers of the corporation, against which any such judgments shall have been obtained and remain unsatisfied, to at once proceed and levy and collect a sufficient amount of money to pay off and discharge such judgments.

Source:Laws 1867 (Ter.), § 2, p. 13; R.S.1913, § 6465; C.S.1922, § 5988; C.S.1929, § 77-1810; R.S.1943, § 77-1620.


Annotations

77-1621. Judgments against public corporations; special tax levy; how collected.

The tax shall be levied upon all the taxable property in the district, county, township, town or city bound by the judgment, and shall be collected in the same manner and at the same time provided by law for the collection of other taxes.

Source:Laws 1867 (Ter.), § 3, p. 13; R.S.1913, § 6466; C.S.1922, § 5989; C.S.1929, § 77-1811; R.S.1943, § 77-1621.


77-1622. Judgments against public corporations; duty of corporate authorities to make levy.

The corporate officers whose duty it is to levy and collect taxes for the payment of the current expenses of any such corporation, against which a judgment may be so obtained, shall also be required to levy and collect the special tax herein provided for, for the payment of judgments.

Source:Laws 1867 (Ter.), § 4, p. 13; R.S.1913, § 6467; C.S.1922, § 5990; C.S.1929, § 77-1812; R.S.1943, § 77-1622.


Annotations

77-1623. Judgments against public corporations; failure or refusal of corporate authorities to levy; action against officers; mandamus.

If any such corporate authorities, whose duty it is, under the provisions of sections 77-1601 to 77-1624, to so levy and collect the tax necessary to pay off any such judgment, fail, refuse, or neglect to make provision for the immediate payment of such judgments, after request made by the owner or any person having an interest therein, such officers shall become personally liable to pay such judgments, and the party or parties interested may have an action against such defaulting officers to recover the money due on the judgment, or he, she, or they having such interest may apply to the district court of the county in which the judgment is obtained, or to the judge thereof in vacation, for a writ of mandamus to compel the proper officers to proceed to collect the necessary amount of money to pay off such indebtedness, as provided in such sections. When a proper showing is made by the applicant for the writ, it shall be the duty of the district court or judge, as the case may be, to grant and issue the writ to the delinquents, and the proceedings to be had in the premises shall conform to the rules and practice of the court, and the laws in such cases made and provided.

Source:Laws 1867 (Ter.), § 5, p. 13; R.S.1913, § 6468; C.S.1922, § 5991; C.S.1929, § 77-1813; R.S.1943, § 77-1623; Laws 1995, LB 490, § 162;    Laws 2004, LB 973, § 41.    


Annotations

77-1624. Taxes delinquent five or more years; collection; receipts; proration; remittance of state taxes to State Treasurer; how credited.

It shall be the duty of the county treasurer for each and every county, when collecting personal and real estate taxes being delinquent five years or more, to receipt for such taxes on a receipt for the fifth delinquent year. Such taxes so collected shall be prorated in proportion to the levies applicable for the year levied. All state taxes when collected shall be remitted to the State Treasurer and by him or her credited to the fund or funds for which the levy or levies were made, and all county funds when collected shall be placed to the credit of the county general fund; all municipal, school district, learning community, township, precinct, and special funds shall be entered in separate columns. All taxes so consolidated shall be paid in order of priority of delinquency.

Source:Laws 1913, c. 235, § 1, p. 738; R.S.1913, § 6469; C.S.1922, § 5992; C.S.1929, § 77-1814; R.S.1943, § 77-1624; Laws 1963, c. 454, § 1, p. 1480; Laws 2006, LB 1024, § 7.    


77-1625. Repealed. Laws 1963, c. 454, § 2.

77-1626. Repealed. Laws 1963, c. 454, § 2.

77-1627. Repealed. Laws 1996, LB 1085, § 60.

77-1628. Repealed. Laws 1972, LB 1044, § 1.

77-1629. Repealed. Laws 1945, c. 192, § 3.

77-1630. Property Tax Request Act, how cited.

Sections 77-1630 to 77-1634 shall be known and may be cited as the Property Tax Request Act.

Source:Laws 2021, LB644, § 1.    


77-1631. Terms, defined.

For purposes of the Property Tax Request Act:

(1) Allowable growth percentage means a percentage equal to the sum of (a) two percent plus (b) the political subdivision's real growth percentage;

(2) Excess value means an amount equal to the assessed value of the real property included in a tax increment financing project minus the redevelopment project valuation for such real property;

(3) Property tax request means the total amount of property taxes requested to be raised for a political subdivision through the levy imposed pursuant to section 77-1601, excluding the amount to be levied for the payment of principal or interest on bonds issued or authorized to be issued by a school district;

(4) Real growth percentage means the percentage obtained by dividing (a) the political subdivision's real growth value by (b) the political subdivision's total real property valuation from the prior year;

(5) Real growth value means and includes:

(a) The increase in a political subdivision's real property valuation from the prior year to the current year due to (i) improvements to real property as a result of new construction and additions to existing buildings, (ii) any other improvements to real property which increase the value of such property, (iii) annexation of real property by the political subdivision, and (iv) a change in the use of real property; and

(b) The annual increase in the excess value for any tax increment financing project located in the political subdivision;

(6) Redevelopment project valuation has the same meaning as in section 18-2103; and

(7) Tax increment financing project means a redevelopment project as defined in section 18-2103 that is financed through the division of taxes as provided in section 18-2147.

Source:Laws 2021, LB644, § 2;    Laws 2023, LB727, § 49.    
Operative Date: June 7, 2023


77-1632. Property tax request; procedure; public hearing; resolution or ordinance; contents.

(1) If the annual assessment of property would result in an increase in the total property taxes levied by a county, city, village, school district, learning community, sanitary and improvement district, natural resources district, educational service unit, or community college, as determined using the previous year's rate of levy, such political subdivision's property tax request for the current year shall be no more than its property tax request in the prior year, and the political subdivision's rate of levy for the current year shall be decreased accordingly when such rate is set by the county board of equalization pursuant to section 77-1601. The governing body of the political subdivision shall pass a resolution or ordinance to set the amount of its property tax request after holding the public hearing required in subsection (3) of this section. If the governing body of a political subdivision seeks to set its property tax request at an amount that exceeds its property tax request in the prior year, it may do so to the extent allowed by law after holding the public hearing required in subsection (3) of this section and by passing a resolution or ordinance that complies with subsection (4) of this section. If any county, city, school district, or community college seeks to increase its property tax request by more than the allowable growth percentage, such political subdivision shall comply with the requirements of section 77-1633 in lieu of the requirements in subsections (3) and (4) of this section.

(2) If the annual assessment of property would result in no change or a decrease in the total property taxes levied by a county, city, village, school district, learning community, sanitary and improvement district, natural resources district, educational service unit, or community college, as determined using the previous year's rate of levy, such political subdivision's property tax request for the current year shall be no more than its property tax request in the prior year, and the political subdivision's rate of levy for the current year shall be adjusted accordingly when such rate is set by the county board of equalization pursuant to section 77-1601. The governing body of the political subdivision shall pass a resolution or ordinance to set the amount of its property tax request after holding the public hearing required in subsection (3) of this section. If the governing body of a political subdivision seeks to set its property tax request at an amount that exceeds its property tax request in the prior year, it may do so to the extent allowed by law after holding the public hearing required in subsection (3) of this section and by passing a resolution or ordinance that complies with subsection (4) of this section. If any county, city, school district, or community college seeks to increase its property tax request by more than the allowable growth percentage, such political subdivision shall comply with the requirements of section 77-1633 in lieu of the requirements in subsections (3) and (4) of this section.

(3) The resolution or ordinance required under this section shall only be passed after a special public hearing called for such purpose is held and after notice is published in a newspaper of general circulation in the area of the political subdivision at least four calendar days prior to the hearing. For purposes of such notice, the four calendar days shall include the day of publication but not the day of hearing. If the political subdivision's total operating budget, not including reserves, does not exceed ten thousand dollars per year or twenty thousand dollars per biennial period, the notice may be posted at the governing body's principal headquarters. The hearing notice shall contain the following information: The certified taxable valuation under section 13-509 for the prior year, the certified taxable valuation under section 13-509 for the current year, and the percentage increase or decrease in such valuations from the prior year to the current year; the dollar amount of the prior year's tax request and the property tax rate that was necessary to fund that tax request; the property tax rate that would be necessary to fund last year's tax request if applied to the current year's valuation; the proposed dollar amount of the tax request for the current year and the property tax rate that will be necessary to fund that tax request; the percentage increase or decrease in the property tax rate from the prior year to the current year; and the percentage increase or decrease in the total operating budget from the prior year to the current year.

(4) Any resolution or ordinance setting a political subdivision's property tax request under this section at an amount that exceeds the political subdivision's property tax request in the prior year shall include, but not be limited to, the following information:

(a) The name of the political subdivision;

(b) The amount of the property tax request;

(c) The following statements:

(i) The total assessed value of property differs from last year's total assessed value by ..... percent;

(ii) The tax rate which would levy the same amount of property taxes as last year, when multiplied by the new total assessed value of property, would be $..... per $100 of assessed value;

(iii) The (name of political subdivision) proposes to adopt a property tax request that will cause its tax rate to be $..... per $100 of assessed value; and

(iv) Based on the proposed property tax request and changes in other revenue, the total operating budget of (name of political subdivision) will (increase or decrease) last year's budget by ..... percent; and

(d) The record vote of the governing body in passing such resolution or ordinance.

(5) Any resolution or ordinance setting a property tax request under this section shall be certified and forwarded to the county clerk on or before October 15 of the year for which the tax request is to apply.

Source:Laws 1996, LB 693, § 10;    Laws 1996, LB 1085, § 55;    Laws 1997, LB 269, § 43;    Laws 1998, LB 306, § 24;    Laws 2001, LB 797, § 3;    Laws 2006, LB 1024, § 5;    Laws 2019, LB103, § 1;    Laws 2019, LB212, § 4;    R.S.Supp.,2020, § 77-1601.02; Laws 2021, LB528, § 18;    Laws 2021, LB644, § 3;    Laws 2023, LB243, § 9.    
Operative Date: June 1, 2023


77-1633. Property tax request; increase by more than allowable growth percentage; notice and hearing; resolution or ordinance; requirements; certification; county clerk; county assessor; duties.

(1) For purposes of this section, political subdivision means any county, city, school district, or community college.

(2) If any political subdivision seeks to increase its property tax request by more than the allowable growth percentage, such political subdivision may do so to the extent allowed by law if:

(a) A public hearing is held and notice of such hearing is provided in compliance with subsection (3) of this section; and

(b) The governing body of such political subdivision passes a resolution or an ordinance that complies with subsection (4) of this section.

(3)(a) Each political subdivision within a county that seeks to increase its property tax request by more than the allowable growth percentage shall participate in a joint public hearing. Each such political subdivision shall designate one representative to attend the joint public hearing on behalf of the political subdivision. If a political subdivision includes area in more than one county, the political subdivision shall be deemed to be within the county in which the political subdivision's principal headquarters are located. At such hearing, there shall be no items on the agenda other than discussion on each political subdivision's intent to increase its property tax request by more than the allowable growth percentage.

(b) At least one elected official from each participating political subdivision shall attend the joint public hearing. An elected official may be the designated representative from a participating political subdivision. The presence of a quorum or the participation of elected officials at the joint public hearing does not constitute a meeting as defined by section 84-1409 of the Open Meetings Act.

(c) The joint public hearing shall be held on or after September 14 and prior to September 24 and before any of the participating political subdivisions file their adopted budget statement pursuant to section 13-508.

(d) The joint public hearing shall be held after 6 p.m. local time on the relevant date.

(e) The joint public hearing shall be organized by the county clerk or his or her designee. At the joint public hearing, the designated representative of each political subdivision shall give a brief presentation on the political subdivision's intent to increase its property tax request by more than the allowable growth percentage and the effect of such request on the political subdivision's budget. The presentation shall include:

(i) The name of the political subdivision;

(ii) The amount of the property tax request; and

(iii) The following statements:

(A) The total assessed value of property differs from last year's total assessed value by ..... percent;

(B) The tax rate which would levy the same amount of property taxes as last year, when multiplied by the new total assessed value of property, would be $..... per $100 of assessed value;

(C) The (name of political subdivision) proposes to adopt a property tax request that will cause its tax rate to be $..... per $100 of assessed value;

(D) Based on the proposed property tax request and changes in other revenue, the total operating budget of (name of political subdivision) will exceed last year's by ..... percent; and

(E) To obtain more information regarding the increase in the property tax request, citizens may contact the (name of political subdivision) at (telephone number and email address of political subdivision).

(f) Any member of the public shall be allowed to speak at the joint public hearing and shall be given a reasonable amount of time to do so.

(g) Notice of the joint public hearing shall be provided:

(i) By sending a postcard to all affected property taxpayers. The postcard shall be sent to the name and address to which the property tax statement is mailed;

(ii) By posting notice of the hearing on the home page of the relevant county's website, except that this requirement shall only apply if the county has a population of more than ten thousand inhabitants; and

(iii) By publishing notice of the hearing in a legal newspaper in or of general circulation in the relevant county.

(h) Each political subdivision that participates in the joint public hearing shall electronically send the information prescribed in subdivision (3)(i) of this section to the county assessor by September 4. The county clerk shall notify the county assessor of the date, time, and location of the joint public hearing no later than September 4. The county clerk shall notify each participating political subdivision of the date, time, and location of the joint public hearing. The county assessor shall send the information required to be included on the postcards pursuant to subdivision (3)(i) of this section to a printing service designated by the county board. The initial cost for printing the postcards shall be paid from the county general fund. Such postcards shall be mailed at least seven calendar days before the joint public hearing. The cost of creating and mailing the postcards, including staff time, materials, and postage, shall be charged proportionately to the political subdivisions participating in the joint public hearing based on the total number of parcels in each participating political subdivision. Each participating political subdivision shall also maintain a prominently displayed and easily accessible link on the home page of the political subdivision's website to the political subdivision's proposed budget, except that this requirement shall not apply if the political subdivision is a county with a population of less than ten thousand inhabitants, a city with a population of less than one thousand inhabitants, or, for joint public hearings prior to January 1, 2024, a school district.

(i) The postcard sent under this subsection and the notice posted on the county's website, if required under subdivision (3)(g)(ii) of this section, and published in the newspaper shall include the date, time, and location for the joint public hearing, a listing of and telephone number for each political subdivision that will be participating in the joint public hearing, and the amount of each participating political subdivision's property tax request. The postcard shall also contain the following information:

(i) The following words in capitalized type at the top of the postcard: NOTICE OF PROPOSED TAX INCREASE;

(ii) The name of the county that will hold the joint public hearing, which shall appear directly underneath the capitalized words described in subdivision (3)(i)(i) of this section;

(iii) The following statement: The following political subdivisions are proposing a revenue increase which would result in an overall increase in property taxes in (insert current tax year). THE ACTUAL TAX ON YOUR PROPERTY MAY INCREASE OR DECREASE. This notice contains estimates of the tax on your property as a result of this revenue increase. These estimates are calculated on the basis of the proposed (insert current tax year) data. The actual tax on your property may vary from these estimates.

(iv) The parcel number for the property;

(v) The name of the property owner and the address of the property;

(vi) The property's assessed value in the previous tax year;

(vii) The amount of property taxes due in the previous tax year for each participating political subdivision;

(viii) The property's assessed value for the current tax year;

(ix) The amount of property taxes due for the current tax year for each participating political subdivision;

(x) The change in the amount of property taxes due for each participating political subdivision from the previous tax year to the current tax year; and

(xi) The following statement: To obtain more information regarding the tax increase, citizens may contact the political subdivision at the telephone number provided in this notice.

(4) After the joint public hearing required in subsection (3) of this section, the governing body of each participating political subdivision shall pass an ordinance or resolution to set such political subdivision's property tax request. If the political subdivision is increasing its property tax request over the amount from the prior year, including any increase in excess of the allowable growth percentage, then such ordinance or resolution shall include, but not be limited to, the following information:

(a) The name of the political subdivision;

(b) The amount of the property tax request;

(c) The following statements:

(i) The total assessed value of property differs from last year's total assessed value by ..... percent;

(ii) The tax rate which would levy the same amount of property taxes as last year, when multiplied by the new total assessed value of property, would be $..... per $100 of assessed value;

(iii) The (name of political subdivision) proposes to adopt a property tax request that will cause its tax rate to be $..... per $100 of assessed value; and

(iv) Based on the proposed property tax request and changes in other revenue, the total operating budget of (name of political subdivision) will exceed last year's by ..... percent; and

(d) The record vote of the governing body in passing such resolution or ordinance.

(5) Any resolution or ordinance setting a property tax request under this section shall be certified and forwarded to the county clerk on or before October 15 of the year for which the tax request is to apply.

(6) The county clerk, or his or her designee, shall prepare a report which shall include:

(a) The names of the designated representatives of the political subdivisions participating in the joint public hearing;

(b) The name and address of each individual who spoke at the joint public hearing, unless the address requirement is waived to protect the security of the individual, and the name of any organization represented by each such individual;

(c) The name of each political subdivision that participated in the joint public hearing;

(d) The real growth value and real growth percentage for each participating political subdivision;

(e) The amount each participating political subdivision seeks to increase its property tax request in excess of the allowable growth percentage; and

(f) The number of individuals who signed in to attend the joint public hearing.

Such report shall be delivered to the political subdivisions participating in the joint public hearing within ten days after such hearing.

Source:Laws 2021, LB644, § 4;    Laws 2022, LB927, § 10;    Laws 2023, LB243, § 10;    Laws 2023, LB727, § 50.    

Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB243, section 10, with LB727, section 50, to reflect all amendments.

Note: Changes made by LB243 became operative June 1, 2023. Changes made by LB727 became operative June 7, 2023.


Cross References

77-1634. Failure to comply with act; effect.

(1) Except as provided in subsection (2) of this section, any levy which is not in compliance with the Property Tax Request Act and section 77-1601 shall be construed as an unauthorized levy under section 77-1606.

(2) An inadvertent failure to comply with the Property Tax Request Act shall not invalidate a political subdivision's property tax request or constitute an unauthorized levy under section 77-1606. A political subdivision that has complied with the Property Tax Request Act shall not have its property tax request invalidated due to any other political subdivision's failure to comply with the Property Tax Request Act. The failure of a taxpayer to receive a postcard as required under the act shall not invalidate a political subdivision's property tax request or constitute an unauthorized levy under section 77-1606.

Source:Laws 2021, LB644, § 5;    Laws 2022, LB927, § 11.    


77-1701. Collection of taxes; county treasurer tax collector; statements; contents; special assessments; de minimis amount; how treated.

(1) The county treasurer shall be ex officio county collector of all taxes levied within the county. The county board shall designate a county official to mail or otherwise deliver a statement of the amount of taxes due and a notice that special assessments are due, to the last-known address of the person, firm, association, or corporation against whom such taxes or special assessments are assessed or to the lending institution or other party responsible for paying such taxes or special assessments. Such statement shall clearly indicate, for each political subdivision, the levy rate and the amount of taxes due as the result of principal or interest payments on bonds issued by the political subdivision and shall show such rate and amount separate from any other levy. When taxes on real property are delinquent for a prior year, the county treasurer shall indicate this information on the current year tax statement in bold letters. The information provided shall inform the taxpayer that delinquent taxes and interest are due for the prior year or years and shall indicate the specific year or years for which such taxes and interest remain unpaid. The language shall read "Back Taxes and Interest Due For", followed by numbers to indicate each year for which back taxes and interest are due and a statement indicating that failure to pay the back taxes and interest may result in the loss of the real property. Failure to receive such statement or notice shall not relieve the taxpayer from any liability to pay such taxes or special assessments and any interest or penalties accrued thereon. In any county in which a city of the metropolitan class is located, all statements of taxes shall also include notice that special assessments for cutting weeds, removing litter, and demolishing buildings are due.

(2) Notice that special assessments are due shall not be required for special assessments levied by sanitary and improvement districts organized under Chapter 31, article 7, except that such notice may be provided by the county at the discretion of the county board or by the sanitary and improvement district with the approval of the county board.

(3) A statement of the amount of taxes due and a notice that special assessments are due shall not be required to be mailed or otherwise delivered pursuant to subsection (1) of this section if the total amount of the taxes and special assessments due is less than two dollars. Failure to receive the statement or notice shall not relieve the taxpayer from any liability to pay the taxes or special assessments but shall relieve the taxpayer from any liability for interest or penalties. Taxes and special assessments of less than two dollars shall be added to the amount of taxes and special assessments due in subsequent years and shall not be considered delinquent until the total amount is two dollars or more.

Source:Laws 1903, c. 73, § 144, p. 439; R.S.1913, § 6473; C.S.1922, § 5996; C.S.1929, § 77-1901; R.S.1943, § 77-1701; Laws 1969, c. 678, § 1, p. 2604; Laws 1979, LB 150, § 1;    Laws 1981, LB 179, § 12;    Laws 1983, LB 391, § 4;    Laws 1995, LB 412, § 1;    Laws 1996, LB 1362, § 8;    Laws 1999, LB 194, § 31;    Laws 1999, LB 881, § 7;    Laws 2000, LB 968, § 60;    Laws 2023, LB727, § 51.    
Operative Date: September 2, 2023


Annotations

77-1702. Collection of taxes; medium of payment.

State warrants are receivable for the amount payable into the state treasury on account of tax levied for general state purposes. County warrants are receivable for the amount payable into the county treasury for general purposes. City warrants shall be received for the city general tax, village warrants for the village general tax, and town warrants for the town general tax. State, city, village, or township taxes, levied for other special purposes, may be paid by warrants drawn and payable out of the particular fund on account of which they are tendered. Lawful money of the United States, checks, drafts, credit cards, charge cards, debit cards, money orders, electronic funds transfers, or other bills of exchange may be accepted in payment of any state, county, village, township, school district, learning community, or other governmental subdivision tax, levy, excise, duty, custom, toll, penalty, fine, license, fee, or assessment of whatever kind or nature, whether general or special.

Source:Laws 1903, c. 73, § 145, p. 440; R.S.1913, § 6474; C.S.1922, § 5997; C.S.1929, § 77-1902; R.S.1943, § 77-1702; Laws 1959, c. 353, § 3, p. 1245; Laws 1965, c. 492, § 1, p. 1578; Laws 1997, LB 70, § 5;    Laws 2002, LB 994, § 21;    Laws 2006, LB 1024, § 8.    


Annotations

77-1703. Collection of taxes; separate payments; special assessments.

The treasurer shall receive taxes on part of any real property charged with taxes when a particular specification of the part is furnished. If the tax on the remainder of such real property remains unpaid, the treasurer shall enter such specification in his or her return so that the part on which the tax remains unpaid may be clearly known.

The tax may be paid on an undivided share of real property. In such case the treasurer shall designate on the record upon whose undivided share the tax has been paid.

The treasurer shall receive from any taxpayer at any time the amount due on account of special assessments of any kind including those levied for the use of any irrigation district whether other taxes on the same real property are paid or not. In such case, the tax receipt shall plainly show exactly what assessments have been paid and that no other tax on the real property has been received by the treasurer.

Source:Laws 1903, c. 73, § 146, p. 440; R.S.1913, § 6475; C.S.1922, § 5998; Laws 1927, c. 181, § 1, p. 522; C.S.1929, § 77-1903; Laws 1937, c. 167, § 31, p. 660; Laws 1939, c. 98, § 31, p. 447; Laws 1941, c. 157, § 31, p. 631; C.S.Supp.,1941, § 77-1903; R.S.1943, § 77-1703; Laws 1992, LB 1063, § 135; Laws 1992, Second Spec. Sess., LB 1, § 108.    


Annotations

77-1704. Collection of taxes; entry of payment; receipt.

Whenever any person pays some or all of the taxes charged on any property, the treasurer shall enter such payment in his or her books and may give a receipt therefor specifying for whom paid, the amount paid, what year paid for, and the property and value thereof on which the tax was paid, according to its description in the treasurer's books, in whole or in part of such description as the case may be.

If requested by the payor, the treasurer shall provide a receipt indicating payment. Such entry and receipts shall bear the county name and the name of the treasurer or his or her deputy receiving the payment. Whenever it appears that any receipt for the payment of taxes is lost or destroyed, the entry so made may be read in evidence in lieu thereof. The treasurer shall enter the name of the owner or of the person paying the tax opposite each tract or lot of land when he or she collects the tax thereon and the post office address of the person paying the tax. A statement shall be entered by the treasurer on such receipt showing the amount of unpaid taxes and the date of unredeemed tax sales, if any, for the previous year or years upon such land or town lot. If the treasurer fails or neglects to note on such receipt the unpaid taxes or the date of unredeemed tax sales as provided in this section, he or she shall be liable on his or her bond to the person injured thereby in the amount of the tax so omitted.

Source:Laws 1903, c. 73, § 147, p. 440; R.S.1913, § 6476; C.S.1922, § 5999; C.S.1929, § 77-1904; Laws 1937, c. 167, § 32, p. 660; Laws 1939, c. 98, § 32, p. 447; Laws 1941, c. 157, § 32, p. 631; C.S.Supp.,1941, § 77-1904; R.S.1943, § 77-1704; Laws 1992, LB 1063, § 136; Laws 1992, Second Spec. Sess., LB 1, § 109;    Laws 1993, LB 346, § 18;    Laws 2000, LB 968, § 61;    Laws 2012, LB851, § 1.    


Annotations

77-1704.01. Collection of taxes; notice; receipt; statement; contents.

(1) The county treasurer shall include with each tax notice to every taxpayer and with each receipt provided to a taxpayer the following information:

(a) The total amount of aid from state sources appropriated to the county and each city, village, and school district in the county;

(b) The net amount of property taxes to be levied by the county and each city, village, school district, and learning community in the county;

(c) For real property, the amount of taxes reflected on the statement that are levied by the county, city, village, school district, learning community, and other subdivisions for the tax year and for the immediately past year on the same parcel;

(d) For real property that has its taxes divided under section 18-2147 as part of a redevelopment project under the Community Development Law, the amount of taxes reflected on the statement that are allocated to the county, city, village, school district, learning community, and other subdivisions, the amount of taxes reflected on the statement that are allocated to the redevelopment project, and a statement explaining that taxes on the real property have been divided as part of a redevelopment project under the Community Development Law; and

(e) For taxes levied for fiscal year 2017-18 on real property within a learning community, statements explaining that the school district levies for learning community member districts are increasing, in part, as a result of the expiration of the learning community common levies, the proceeds of which were distributed directly to school districts, and that the remaining learning community levies fund activities of the learning community.

(2) The necessary form for furnishing the information required by subdivisions (1)(a), (b), and (e) of this section shall be prescribed by the Department of Revenue. The necessary information required by subdivision (1)(a) of this section shall be furnished to the county treasurer by the Department of Revenue prior to October 1 of each year. The form prescribed by the Department of Revenue shall contain the following statement:

THE AMOUNT OF STATE FUNDS SHOWN ABOVE WOULD HAVE BEEN ADDITIONAL PROPERTY TAXES IF NOT ALLOCATED TO THE COUNTY, CITY, VILLAGE, AND SCHOOL DISTRICT BY THE LEGISLATURE.

Source:Laws 1972, LB 674, § 1;    Laws 1995, LB 490, § 163;    Laws 1997, LB 270, § 98;    Laws 1999, LB 881, § 8;    Laws 2006, LB 1024, § 9;    Laws 2012, LB851, § 2;    Laws 2016, LB1067, § 8;    Laws 2018, LB874, § 36;    Laws 2020, LB1021, § 16.    


Cross References

77-1704.02. Collection of taxes; partial payments; when authorized.

(1) Any county board may pass a resolution to allow payments for the discharge of current or delinquent real property taxes, personal property taxes, or both or any charges for interest, publication, penalties, or other charges by reason of the delinquency of such taxes to be held in escrow by the county treasurer or may contract with another party to hold such payments in escrow. Upon passage of such a resolution or such other effective date as the resolution may provide, the county treasurer shall accept payments in accordance with the resolution or any subsequent amendments thereto and hold such amounts until the accumulated payments are sufficient to pay at least one-half the taxes currently due on the property or the full amount of delinquency and any interest, penalties, or other charges due to the delinquency. The resolution of the county board may require a minimum, limited, or periodic payment amount as a condition for acceptance of payments to be held in escrow. The resolution may also require that an escrow agreement be executed between the person making payment and the county treasurer as a condition for accepting payments.

(2) Payments held in escrow under this section may be held in a designated bank account or may be commingled with other county funds. Such amounts are the property of the person making payment and shall be held in trust for the benefit of such person and be accounted for with respect to the property for which the current or delinquent taxes are to be paid. The county may pay interest on amounts held in escrow at a rate to be determined by the county board or may retain any interest received. Upon sale of the property, any amounts held in escrow with respect to that property shall be returned to the person that made the payment or applied as directed by such person.

(3) Payments held in escrow for payment of delinquent taxes shall be applied to the oldest delinquencies first. Payments held in escrow for payment of delinquent taxes shall not affect any collection procedure that is underway or available to the county until the delinquency is fully satisfied.

Source:Laws 2000, LB 968, § 62.    


77-1705. Collection of taxes; tax receipt; form; required information.

The tax receipt shall be substantially in the following form, with such additions and amendments thereto as may be necessary to make it conform to law:

$...... Treasurer's Office ......... County, Nebraska ........ 20....

Received of ...........................................

In full or in part the taxes for the year 20.... on the following described property:

....................................................................

................... Deputy ................. Treasurer.

If the tax is paid upon real property or personal property, the receipt shall describe the same as described in the tax list and give the valuation thereof.

Source:Laws 1903, c. 73, § 148, p. 441; R.S.1913, § 6477; C.S.1922, § 6000; Laws 1929, c. 167, § 1, p. 576; C.S.1929, § 77-1905; R.S.1943, § 77-1705; Laws 1957, c. 334, § 3, p. 1170; Laws 1995, LB 490, § 164;    Laws 2000, LB 968, § 63.    


77-1706. Collection of taxes; receipts; how numbered.

All receipts issued by the county treasurer for taxes paid to him or her shall be numbered consecutively.

Source:Laws 1903, c. 73, § 149, p. 442; R.S.1913, § 6478; C.S.1922, § 6001; C.S.1929, § 77-1906; Laws 1943, c. 174, § 1(1), p. 607; R.S.1943, § 77-1706; Laws 1945, c. 189, § 6, p. 589; Laws 1993, LB 346, § 19;    Laws 1997, LB 269, § 53;    Laws 1997, LB 270, § 99;    Laws 2003, LB 292, § 13;    Laws 2012, LB851, § 3.    


Annotations

77-1707. Collection of taxes; receipts; accountability of county treasurer.

The county treasurer shall be held strictly accountable for all receipts, including receipts found missing at regular settlement, and also for all detached receipts. All irregularities in the issuance of receipts that render them worthless must be shown on the face of the receipt.

Source:Laws 1903, c. 73, § 149, p. 442; R.S.1913, § 6478; C.S.1922, § 6001; C.S.1929, § 77-1906; Laws 1943, c. 174, § 1(2), p. 608; R.S.1943, § 77-1707; Laws 2003, LB 292, § 14;    Laws 2012, LB851, § 4.    


77-1708. Collection of taxes; county treasurer; cash book.

The county treasurer is required to keep a cash book in which he or she shall enter an account of all money received, specifying in proper columns provided for that purpose the date of payment, the number of the receipt issued therefor, and on account of what fund or funds the same was paid, whether state, county, school, learning community, road, sinking fund or otherwise, each in separate columns, and the total amount for which the receipt was given in another column. The treasurer shall keep the account of money received for and on account of taxes separate and distinct from money received on any other account. He or she shall also keep the account of money received for and on account of taxes levied and assessed for any one year separate and distinct from those levied and assessed for any other year. All entries in the cash book of money received for taxes shall be in the numerical order of the receipts issued therefor.

Source:Laws 1903, c. 73, § 151, p. 443; Laws 1913, c. 185, § 1, p. 561; R.S.1913, § 6480; C.S.1922, § 6003; C.S.1929, § 77-1908; Laws 1937, c. 167, § 33, p. 661; Laws 1937, c. 171, § 1, p. 678; Laws 1939, c. 98, § 33, p. 448; Laws 1941, c. 157, § 33, p. 632; C.S.Supp.,1941, § 77-1908; R.S.1943, § 77-1708; Laws 2006, LB 1024, § 10.    


77-1709. Repealed. Laws 1947, c. 258, § 1.

77-1710. Collection of taxes; payments; how indicated on tax lists; county treasurer; duties.

Whenever any taxes are paid, the county treasurer shall enter on the tax lists, opposite the description of real estate or personal property whereon the same was levied, the word "paid", together with the date of such payment, and the name of the person paying the same, which entry shall be prima facie evidence of such payment. The county treasurer shall maintain a record of the total tax assessed and monthly total tax collections.

Source:Laws 1903, c. 73, § 152, p. 443; R.S.1913, § 6481; C.S.1922, § 6004; C.S.1929, § 77-1909; R.S.1943, § 77-1710; Laws 2002, LB 994, § 22;    Laws 2013, LB29, § 2.    


77-1711. Collection of taxes; personal property; chargeable to county treasurer; liability for collection.

Upon delivery to the county treasurer of the tax list, as herein provided, all personal taxes levied in the county shall be charged to him, and he and his bondsmen shall be liable therefor, unless the same are collected or he shall show a compliance with the duties imposed upon him by law for the collection thereof.

Source:Laws 1903, c. 73, § 153, p. 443; R.S.1913, § 6482; C.S.1922, § 6005; C.S.1929, § 77-1910; Laws 1937, c. 167, § 6, p. 640; Laws 1939, c. 98, § 6, p. 425; Laws 1941, c. 157, § 6, p. 611; C.S.Supp.,1941, § 77-1910; R.S.1943, § 77-1711.


Annotations

77-1712. Repealed. Laws 1996, LB 299, § 35.

77-1713. Repealed. Laws 1996, LB 299, § 35.

77-1714. Repealed. Laws 1996, LB 299, § 35.

77-1715. Collection of taxes; personal tax roll; publication fees.

Payment for publication of the personal tax roll shall be made in the same manner as the publication of commissioners' proceedings; Provided, the total charge for publication shall not exceed the rate paid for publishing commissioners' proceedings.

Source:Laws 1915, c. 226, § 4, p. 527; C.S.1922, § 6009; C.S.1929, § 77-1914; R.S.1943, § 77-1715; Laws 1959, c. 353, § 4, p. 1245; Laws 1961, c. 377, § 8, p. 1161.


Cross References

77-1716. Collection of taxes; notice to taxpayer.

The county treasurer shall, at any time prior to January 1 of each year, send a notice to each person on the personal tax roll and each person owing real estate taxes on mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land, advising such taxpayer of the amount of such taxes owed for that year.

Source:Laws 1903, c. 73, § 154, p. 443; R.S.1913, § 6483; C.S.1922, § 6010; C.S.1929, § 77-1915; Laws 1933, c. 136, § 3, p. 518; Laws 1937, c. 167, § 22, p. 654; Laws 1939, c. 98, § 22, p. 441; Laws 1941, c. 157, § 22, p. 625; C.S.Supp.,1941, § 77-1915; Laws 1943, c. 181, § 1, p. 627; R.S.1943, § 77-1716; Laws 1995, LB 452, § 31;    Laws 1995, LB 490, § 165;    Laws 1998, LB 306, § 30;    Laws 2000, LB 968, § 64;    Laws 2010, LB873, § 1.    


77-1716.01. Repealed. Laws 1949, c. 239, § 1.

77-1716.02. Repealed. Laws 1949, c. 239, § 1.

77-1717. Collection of taxes; procedure.

After September 1 of each year next after the personal taxes and real estate taxes on mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land for the last preceding year have become delinquent, the county treasurer shall collect the same, together with interest and costs of collection, by distress and sale of personal property, mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land belonging to the person against whom levied, in the manner provided by law, for the levy and sale of personal property on execution.

Source:Laws 1903, c. 73, § 154, p. 443; R.S.1913, § 6483; C.S.1922, § 6010; C.S.1929, § 77-1915; Laws 1933, c. 136, § 3, p. 518; Laws 1937, c. 167, § 22, p. 654; Laws 1939, c. 98, § 22, p. 441; Laws 1941, c. 157, § 22, p. 625; C.S.Supp.,1941, § 77-1915; Laws 1943, c. 181, § 1, p. 627; R.S.1943, § 77-1717; Laws 1998, LB 306, § 31;    Laws 2000, LB 968, § 65.    


Annotations

77-1718. Collection of taxes; notice; issuance of distress warrant; affidavit of poverty; interest.

On or before November 1 of each year, the county treasurer shall issue and deliver to the sheriff of the county distress warrants against all persons having delinquent personal tax or real estate tax on a mobile home, cabin trailer, manufactured home, or similar property assessed and taxed as improvements to leased land for that year (1) unless such a person shall have paid such delinquent taxes in full, on or before September 1, with interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, or (2) unless such person shall, on or before September 1, file with the treasurer an affidavit that he or she is unable by reason of poverty to pay any such tax, in which case a distress warrant shall not be issued until ordered by the county board. At least twenty days prior to the issuance of a distress warrant, the county treasurer shall mail a notice to the delinquent taxpayer that, unless payment of the delinquent tax is made within twenty days, a distress warrant will be issued. Each such distress warrant shall include all delinquent taxes of the person against whom issued. When distress warrants have been issued and turned over to the sheriff, the county treasurer shall report and certify to the county board the total number of distress warrants issued and the total amount of money involved.

Source:Laws 1933, c. 136, § 3, p. 518; Laws 1937, c. 167, § 22, p. 654; Laws 1939, c. 98, § 22, p. 441; Laws 1941, c. 157, § 22, p. 625; C.S.Supp.,1941, § 77-1915; Laws 1943, c. 181, § 1, p. 627; R.S.1943, § 77-1718; Laws 1947, c. 259, § 1, p. 846; Laws 1969, c. 646, § 2, p. 2564; Laws 1980, LB 689, § 3; Laws 1981, LB 167, § 43;    Laws 1986, LB 817, § 14;    Laws 1998, LB 306, § 32;    Laws 2000, LB 968, § 66.    


77-1719. Collection of taxes, personal; service and return of distress warrants; time allowed.

All distress warrants issued by the treasurer for the collection of taxes shall be served by the sheriff of the county in the same manner as an execution issued by the district court. Within nine months, except in counties having a population over one hundred thousand inhabitants and in those counties two years, after receiving the current distress warrants from the county treasurer, the sheriff shall make return of the distress warrants to the treasurer of the county. Such distress warrants shall bear an endorsement of the sheriff showing that (1) the taxes therein described have been collected, (2) upon diligent search no property could be found on which to levy, or (3) the delinquent taxpayer has filed an affidavit with the sheriff before making of return of such distress warrant that such taxpayer is unable by reason of poverty to pay such tax and the sheriff shall certify that the property, if any, of the delinquent taxpayer is not worth in value the cost of advertising such property for sale.

Source:Laws 1903, c. 73, § 155, p. 444; Laws 1911, c. 106, § 1, p. 385; R.S.1913, § 6484; C.S.1922, § 6011; C.S.1929, § 77-1916; Laws 1943, c. 181, § 2, p. 628; R.S.1943, § 77-1719; Laws 1947, c. 259, § 2(1), p. 847; Laws 1963, c. 455, § 1, p. 1481; Laws 1991, LB 59, § 1.    


Annotations

77-1719.01. Collection of taxes, personal; sheriff; report.

On or before August 1 of each year, the sheriff shall report to the county board showing the total amount collected on current distress warrants and the amount remaining uncollected.

Source:Laws 1943, c. 181, § 2, p. 628; R.S.1943, § 77-1719; Laws 1947, c. 259, § 2(2), p. 847; Laws 1984, LB 835, § 14;    Laws 1998, LB 306, § 33.    


77-1719.02. Collection of taxes, personal; report of sheriff; county treasurer; verify; false return; notice; hearing; finding; penalty.

On or before October 1 of each year, the county treasurer shall verify this report to the county board, and shall make an itemized report covering the amount uncollected. Such itemized report shall include the number of the distress warrant, the name and address of the taxpayer, the amount involved, and the reason for failure to collect same, or the failure of the sheriff to make a legal return on same. If such report of the county treasurer to the county board shows any false return by the sheriff, or failure to make legal return, the county board shall direct the sheriff to appear at a public hearing at a time to be fixed by such board. Notice of the hearing shall be given to the sheriff at least ten days prior thereto. At such hearing, the board shall hear evidence and make its findings as to whether there has been willful neglect of duty on the part of the sheriff. If the board shall find that there has not been willful neglect of duty it shall enter an order finding that the sheriff should be absolved from any liability for failure to collect such distress warrants. If the board shall find there has been willful neglect of duty, it shall cause proceedings to be instituted under sections 23-2001 to 23-2009 to remove such sheriff from office. Failure of the sheriff to comply with the requirements of sections 77-1719 and 77-1719.01 shall be prima facie evidence of willful neglect of duty and willful maladministration in office. The failure or refusal of any member of the county board to carry out the provisions of sections 77-1718 to 77-1719.04 shall be deemed a Class III misdemeanor.

Source:Laws 1943, c. 181, § 2, p. 628; R.S.1943, § 77-1719; Laws 1947, c. 259, § 2(3), p. 847; Laws 1977, LB 39, § 224;    Laws 1998, LB 306, § 34.    


77-1719.03. Collection of taxes, personal; distress warrant; acceptance of partial payment.

In any case where any distress warrant includes taxes for one year or more, the sheriff may, in his or her discretion, accept partial payment and shall pay the same, as received, to the county treasurer, who shall accept the same and receipt the sheriff therefor. Pursuant to section 77-1704.02, the county treasurer may accept the partial payment and hold such amounts until the accumulated payments are sufficient to pay the full amount of the delinquency for one year and any interest, penalties, or other charges due to the delinquency. Notwithstanding any partial payment, the sheriff shall make levy and return thereof, on the distress warrant, as required by law.

Source:Laws 1903, c. 73, § 155, p. 444; Laws 1911, c. 106, § 1, p. 385; R.S.1913, § 6484; C.S.1922, § 6011; C.S.1929, § 77-1916; Laws 1943, c. 181, § 2, p. 628; R.S.1943, § 77-1719; Laws 1947, c. 259, § 2(4), p. 848; Laws 1963, c. 456, § 1, p. 1482; Laws 2005, LB 18, § 1.    


77-1719.04. Collection of taxes, personal; false return; damages.

For knowingly making a false return, the officer shall be liable for double the amount of taxes, with interest and costs, to be recovered in the name of the county.

Source:Laws 1903, c. 73, § 155, p. 444; Laws 1911, c. 106, § 1, p. 385; R.S.1913, § 6484; C.S.1922, § 6011; C.S.1929, § 77-1916; Laws 1943, c. 181, § 2, p. 628; R.S.1943, § 77-1719; Laws 1947, c. 259, § 2(5), p. 848.


77-1719.05. Collection of taxes, personal; distress warrant; forwarding to another county.

When the sheriff of the county in which a distress warrant has been issued is unable to serve the same because the taxpayer has moved from the county he shall, if the taxpayer is known to him to be actually residing in some other county in this state, forward such distress warrant to the sheriff of such county. Such sheriff shall serve and return it in the same manner in all respects as though it had originated in his county, except that the return thereof shall be made to the sheriff of the originating county on or before June 1 next following its issuance. The sheriff actually serving such warrant shall be allowed the fees and mileage allowed by section 77-1720.

Source:Laws 1957, c. 335, § 1, p. 1172.


77-1720. Collection of taxes, personal; levy and return of distress warrants; fees and commissions; mileage.

All fees allowed for issuing distress warrants, levy, and return of the warrants, in the cases above provided, shall be two dollars for issuing each warrant, one dollar for levy, and mileage at the rate provided in section 33-117 for county sheriffs for each mile actually and necessarily traveled by such officer on each warrant. When the officer has more than one warrant in his or her hands for service, he or she shall charge only for the mileage actually and necessarily traveled in serving all of the warrants, in which case the mileage so charged shall be prorated among such warrants. Commission shall be allowed in addition on all taxes collected by distress and sale as follows: On all sums not exceeding one hundred dollars, ten cents on each dollar; and on all sums exceeding one hundred dollars, eight cents on each dollar. All fees, mileage, and commissions shall be taxed to the parties against whom the distress warrants run and shall be collected as the original tax. When the taxes are not collected by distress and sale, the mileage shall be paid as provided in section 33-117. When mileage has been paid as provided in section 33-117 and the tax, together with all fees, mileage, and commission are collected, then the amount collected as mileage shall be paid to the county treasurer with the fees and commission and credited by the county treasurer to the general fund of the county.

Source:Laws 1903, c. 73, § 156, p. 444; R.S.1913, § 6485; C.S.1922, § 6012; C.S.1929, § 77-1917; R.S.1943, § 77-1720; Laws 1947, c. 123, § 2, p. 361; Laws 1951, c. 266, § 2, p. 897; Laws 1957, c. 70, § 7, p. 300; Laws 1959, c. 84, § 4, p. 387; Laws 1965, c. 493, § 1, p. 1579; Laws 1981, LB 204, § 151;    Laws 1989, LB 324, § 1.    


Annotations

77-1721. Collection of taxes; distress warrants; record of county treasurer; exoneration from liability on bond.

The county treasurer shall, in a book containing the personal tax list and the list of all delinquent taxes levied on mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land in columns provided therefor, keep a record of the date of issue of each distress warrant, and of the return thereon, showing in detail the amount collected, or the fact that no personal property, mobile home, cabin trailer, manufactured home, or similar property assessed and taxed as improvements to leased land belonging to the tax delinquent was found. All distress warrants shall upon their return be filed and kept by the treasurer as a part of the records of his or her office. The collection of any item of taxes, the showing by affidavit of poverty, duly approved, or the return of a distress warrant showing no property found shall relieve him or her and his or her bondsperson from responsibility of that item of taxes.

Source:Laws 1903, c. 73, § 157, p. 445; R.S.1913, § 6486; C.S.1922, § 6013; C.S.1929, § 77-1918; R.S.1943, § 77-1721; Laws 2000, LB 968, § 67.    


77-1722. Collection of taxes, personal; distress warrant uncollected; suit by county treasurer.

Upon the return of any distress warrant uncollected it shall be the duty of the treasurer, when directed so to do by the county board, to commence suit and prosecute the same to judgment, and no property whatever shall be exempt from levy and sale upon process issued on such judgment.

Source:Laws 1903, c. 73, § 157, p. 445; R.S.1913, § 6486; C.S.1922, § 6013; C.S.1929, § 77-1918; R.S.1943, § 77-1722.


77-1723. Collection of taxes, personal; distress warrant; removal from county of taxpayer; alias distress warrants.

It shall be the duty of the sheriff or his deputy in making return of the distress warrant to note in such return the county to which any such delinquent taxpayer may have removed, with the date of his removal, if he shall be able to ascertain such fact, and it is made his duty to make diligent inquiry therefor. It shall be the duty of the several county treasurers in the state, immediately after the return of such distress warrant, to issue an alias distress warrant to the sheriff of any county in this state into which such taxpayer may have removed, or may reside, or in which his personal property may be found, who shall proceed to collect such taxes the same as upon execution, together with his costs, and after so collecting to forward the same with such warrant, and his return thereon, to the treasurer of the county wherein such distress warrant was issued.

Source:Laws 1903, c. 73, § 158, p. 445; Laws 1913, c. 225, § 1, p. 655; R.S.1913, § 6487; C.S.1922, § 6014; C.S.1929, § 77-1919; R.S.1943, § 77-1723.


77-1724. Collection of taxes, personal; return of property to owner upon payment; sale; notice.

When any goods and chattels have been taken on any distress warrants, they shall be returned to the owner by the officer having distrained them immediately upon payment of the taxes due with interest and costs, but upon such owner's refusal or neglect to make such payment or to give a good and sufficient bond for the delivery of the goods and chattels, the officer distraining shall keep them at the expense of the owner and shall give notice of the time and place of their sale not less than twice prior to the date of the sale in the same manner as provided in section 25-1525 with the first notice given within nine days after the date of the taking. The time of sale shall not be more than twenty days from the date of taking, but the officer may adjourn the sale from time to time not exceeding five days in all. In case of adjournment he or she shall put up a notice thereof at the place of sale. Any surplus remaining above the taxes, charges of keeping the property, and fees for sale shall be returned to the owner, and the county treasurer shall on demand render an account in writing of the sale and charges.

Source:Laws 1903, c. 73, § 159, p. 446; R.S.1913, § 6488; C.S.1922, § 6015; C.S.1929, § 77-1920; R.S.1943, § 77-1724; Laws 1990, LB 844, § 1.    


Annotations

77-1725. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-1725.01. Collection of taxes; real property; removal or demolition; public officials; duties; lien on personal property.

Except in any city or village that has adopted a building code with provisions for demolition of unsafe buildings or structures, it shall be the duty of any assessor, sheriff, constable, city council member, and village trustee to at once inform the county treasurer of the removal or demolition of or a levy of attachment upon any item of real property known to him or her. Except for property considered to be destroyed real property as defined in section 77-1307, it shall be the duty of the county treasurer to immediately proceed with the collection of any delinquent or current taxes when such acts become known to him or her in any manner. Except for property considered to be destroyed real property as defined in section 77-1307, the taxes shall be due and collectible, which taxes shall include taxes on all real property then assessed upon which the tax shall be computed on the basis of the last preceding levy, and a distress warrant shall be issued when (1) any person attempts to remove or demolish all or a substantial portion of his or her real property or (2) a levy of attachment is made upon the real property. From the date the taxes are due and collectible, the taxes shall be a first lien upon the personal property of the person to whom assessed until paid.

Source:Laws 1992, LB 1063, § 137; Laws 1992, Second Spec. Sess., LB 1, § 110;    Laws 2019, LB512, § 18.    


77-1726. Repealed. Laws 2015, LB 408, § 3.

77-1727. Collection of taxes; injunction and replevin prohibited; exceptions.

No injunction shall be granted by any court or judge in this state (1) to restrain the collection of any tax, or any part thereof, or (2) to restrain the sale of any property for the nonpayment of any such tax.

No person shall be permitted to recover by replevin, or other process, any property taken or restrained by the county treasurer for the nonpayment of any tax, except such tax or the part thereof enjoined in case of injunction, levied or assessed for illegal or unauthorized purpose.

No injunction shall be granted or recovery by replevin shall be permitted unless the person has first successfully argued before a court of competent jurisdiction that the tax levied or collected was levied or assessed for illegal or unauthorized purpose.

Source:Laws 1903, c. 73, § 162, p. 447; R.S.1913, § 6491; C.S.1922, § 6018; C.S.1929, § 77-1923; R.S.1943, § 77-1727; Laws 1991, LB 829, § 11.


Annotations

77-1728. Repealed. Laws 1955, c. 297, § 5.

77-1729. Repealed. Laws 1955, c. 297, § 5.

77-1730. Repealed. Laws 1955, c. 297, § 5.

77-1731. Repealed. Laws 1955, c. 297, § 5.

77-1732. Repealed. Laws 1955, c. 297, § 5.

77-1733. Repealed. Laws 1955, c. 297, § 5.

77-1734. Collection of taxes; entry on tax list of refunds.

When the county treasurer refunds taxes pursuant to authority provided by law, he or she shall enter opposite such taxes in the tax list the words Erroneously taxed — refunded.

Source:Laws 1903, c. 73, § 162, p. 447; R.S.1913, § 6491; C.S.1922, § 6018; C.S.1929, § 77-1923; R.S.1943, § 77-1734; Laws 1955, c. 297, § 1, p. 931; Laws 2002, LB 994, § 23.    


77-1734.01. Refund of tax paid; claim; verification required; county board approval.

(1) In the case of an amended federal income tax return or whenever a person's return is changed or corrected by the Internal Revenue Service or other competent authority that decreases the Nebraska adjusted basis of the person's taxable tangible personal property, the county treasurer shall refund that portion of the tax paid that is in excess of the amount due after the amendment or correction.

(2) In case of payment made of any property taxes or any payments in lieu of taxes with respect to property as a result of a clerical error or honest mistake or misunderstanding, on the part of a county or other political subdivision of the state or any taxpayer, or accelerated tax paid for real property that was later adjusted by the county board of equalization under sections 77-1307 to 77-1309, the county treasurer to whom the tax was paid shall refund that portion of the tax paid as a result of the clerical error or honest mistake or misunderstanding or that portion of the tax paid that is in excess of the amount due after the adjustment under sections 77-1307 to 77-1309. A claim for a refund pursuant to this section shall be made in writing to the county treasurer to whom the tax was paid within three years after the date the tax was due or within ninety days after filing the amended return or the correction becomes final.

(3) Before the refund is made, the county treasurer shall receive verification from the county assessor or other taxing official that such error or mistake was made, such adjustment was made, or the amended return was filed or the correction made, and the claim for refund shall be submitted to the county board. Upon verification, the county board shall approve the claim. The refund shall be made in the manner prescribed in section 77-1736.06. Such refund shall not have a dispositional effect on any similar refund for another taxpayer. This section may not be used to challenge the valuation of property, the equalization of property, or the constitutionality of a tax.

Source:Laws 1957, c. 336, § 1, p. 1173; Laws 1959, c. 373, § 1, p. 1312; Laws 1961, c. 385, § 1, p. 1179; Laws 1977, LB 245, § 1;    Laws 1988, LB 819, § 1;    Laws 1989, LB 762, § 2;    Laws 1991, LB 829, § 12; Laws 1992, LB 719A, § 174;    Laws 1999, LB 194, § 32;    Laws 2008, LB965, § 17;    Laws 2019, LB512, § 19.    


Annotations

77-1735. Illegal or unconstitutional tax paid; claim for refund; procedure.

(1) Except as provided in subsection (2) of this section, if a person makes a payment to any county or other political subdivision of any property tax or any payment in lieu of tax with respect to property and claims the tax or any part thereof is illegal or unconstitutional for any reason other than the valuation or equalization of the property, he or she may, at any time within thirty days after such payment, make a written claim for refund of the payment from the county treasurer to whom paid. The county treasurer shall immediately forward the claim to the county board. If the payment is not refunded within ninety days thereafter, the claimant may sue the county board for the amount so claimed. Upon the trial, if it is determined that such tax or any part thereof was illegal or unconstitutional, judgment shall be rendered therefor and such judgment shall be collected in the manner prescribed in section 77-1736.06. If the tax so claimed to be illegal or unconstitutional was not collected for all political subdivisions in a consolidated tax district and if a suit is brought to recover the tax paid or a part thereof, the plaintiff in such action shall join as defendants in a single suit as many of the political subdivisions as he or she seeks recovery from by stating in the petition a claim against each such political subdivision as a separate cause of action. For purposes of this section, illegal shall mean a tax levied for an unauthorized purpose or as a result of fraudulent conduct on the part of the taxing officials. A person shall not be entitled to a refund pursuant to this section of any property tax paid or any payment in lieu of tax unless the person has filed a claim with the county treasurer or prevailed in an action against the county. If a county refuses to make a refund, a person shall not be entitled to a refund unless he or she prevails in an action against the county on such claim even if another person has successfully challenged a similar tax or payment.

(2) For property valued by the state, for purposes of a claim for refund pursuant to this section, the Tax Commissioner shall perform the functions of the county treasurer and county board. Upon approval of the claim by the Tax Commissioner or a court of competent jurisdiction, the Tax Commissioner shall certify the amount of the refund to the county treasurer to whom this tax was paid or distributed. The refund shall be made in the manner prescribed in section 77-1736.06.

Source:Laws 1903, c. 73, § 162, p. 447; R.S.1913, § 6491; C.S.1922, § 6018; C.S.1929, § 77-1923; R.S.1943, § 77-1735; Laws 1955, c. 297, § 2, p. 931; Laws 1967, c. 505, § 1, p. 1702; Laws 1977, LB 245, § 2;    Laws 1984, LB 835, § 15;    Laws 1989, LB 762, § 3;    Laws 1991, LB 829, § 13; Laws 1992, Fourth Spec. Sess., LB 1, § 16;    Laws 1995, LB 490, § 166;    Laws 2007, LB334, § 81;    Laws 2014, LB558, § 2.    


Annotations

77-1736. Repealed. Laws 1989, LB 762, § 11.

77-1736.01. Repealed. Laws 1959, c. 264, § 1.

77-1736.02. Repealed. Laws 1959, c. 264, § 1.

77-1736.03. Repealed. Laws 1959, c. 264, § 1.

77-1736.04. Repealed. Laws 1992, Fourth Spec. Sess., LB 1, § 44.

77-1736.05. Repealed. Laws 1989, LB 762, § 11.

77-1736.06. Property tax refund; procedure.

The following procedure shall apply when making a property tax refund:

(1) Within thirty days of the entry of a final nonappealable order, an unprotested determination of a county assessor, an unappealed decision of a county board of equalization, or other final action requiring a refund of real or personal property taxes paid or, for property valued by the state, within thirty days of a recertification of value by the Property Tax Administrator pursuant to section 77-1775 or 77-1775.01, the county assessor shall determine the amount of refund due the person entitled to the refund, certify that amount to the county treasurer, and send a copy of such certification to the person entitled to the refund. Within thirty days from the date the county assessor certifies the amount of the refund, the county treasurer shall notify each political subdivision, including any school district receiving a distribution pursuant to section 79-1073 and any land bank receiving real property taxes pursuant to subdivision (3)(a) of section 18-3411, of its respective share of the refund, except that for any political subdivision whose share of the refund is two hundred dollars or less, the county board may waive this notice requirement. Notification shall be by first-class mail, postage prepaid, to the last-known address of record of the political subdivision. The county treasurer shall pay the refund from funds in his or her possession belonging to any political subdivision, including any school district receiving a distribution pursuant to section 79-1073 and any land bank receiving real property taxes pursuant to subdivision (3)(a) of section 18-3411, which received any part of the tax or penalty being refunded. If sufficient funds are not available, the county treasurer shall register the refund or portion thereof which remains unpaid as a claim against such political subdivision and shall issue the person entitled to the refund a receipt for the registration of the claim;

(2) The refund of a tax or penalty or the receipt for the registration of a claim made or issued pursuant to this section shall be satisfied in full as soon as practicable. If a receipt for the registration of a claim is given:

(a) The governing body of the political subdivision shall make provisions in its next budget for the amount of such claim; or

(b) If mutually agreed to by the governing body of the political subdivision and the person holding the receipt, such receipt shall be applied to satisfy any tax levied or assessed by that political subdivision which becomes due from the person holding the receipt until the claim is satisfied in full;

(3) The county treasurer shall mail the refund or the receipt by first-class mail, postage prepaid, to the last-known address of the person entitled thereto. Multiple refunds to the same person may be combined into one refund. If a refund is not claimed by June 1 of the year following the year of mailing, the refund shall be canceled and the resultant amount credited to the various funds originally charged;

(4) When the refund involves property valued by the state, the Tax Commissioner shall be authorized to negotiate a settlement of the amount of the refund or claim due pursuant to this section on behalf of the political subdivision from which such refund or claim is due. Any political subdivision which does not agree with the settlement terms as negotiated may reject such terms, and the refund or claim due from the political subdivision then shall be satisfied as set forth in this section as if no such negotiation had occurred;

(5) In the event that the Legislature appropriates state funds to be disbursed for the purposes of satisfying all or any portion of any refund or claim, the Tax Commissioner shall order the county treasurer to disburse such refund amounts directly to the persons entitled to the refund in partial or total satisfaction of such persons' claims. The county treasurer shall disburse such amounts within forty-five days after receipt thereof;

(6) If all or any portion of the refund is reduced by way of settlement or forgiveness by the person entitled to the refund, the proportionate amount of the refund that was paid by an appropriation of state funds shall be reimbursed by the county treasurer to the State Treasurer within forty-five days after receipt of the settlement agreement or receipt of the forgiven refund. The amount so reimbursed shall be credited to the General Fund; and

(7) For any refund or claim due under this section, interest shall accrue on the unpaid balance at the rate of fourteen percent beginning thirty days after the date the county assessor certifies the amount of refund based upon the final nonappealable order or other action approving the refund.

Source:Laws 1991, LB 829, § 15; Laws 1992, LB 1063, § 138; Laws 1992, Second Spec. Sess., LB 1, § 111;    Laws 1993, LB 555, § 1;    Laws 1995, LB 490, § 167;    Laws 2007, LB334, § 82;    Laws 2008, LB965, § 18;    Laws 2010, LB1070, § 3;    Laws 2013, LB97, § 19;    Laws 2016, LB1067, § 9;    Laws 2020, LB424, § 19;    Laws 2021, LB644, § 20;    Laws 2023, LB243, § 11.    
Operative Date: September 2, 2023


77-1736.07. Property tax refund; procedure; applicability.

Section 77-1736.06 is expressly intended to apply to all claims for refund of any property taxes pending on June 11, 1991.

Source:Laws 1991, LB 829, § 16; Laws 1992, Fourth Spec. Sess., LB 1, § 17.    


77-1736.08. Repealed. Laws 1998, LB 1104, § 36.

77-1736.09. Repealed. Laws 1989, LB 762, § 11.

77-1736.10. Repealed. Laws 1991, LB 829, § 39.

77-1736.11. Repealed. Laws 1989, LB 762, § 11.

77-1737. Collection of taxes; no power to release or commute; recovery from public officials.

No county or township board, city council, or village trustees shall have the power to release, discharge, remit, or commute any portion of the taxes assessed or levied against any person or property within their respective jurisdictions for any reason whatever. Any taxes, so discharged, released, remitted, or commuted, may be recovered by civil action from the members of any such board, council, or trustees, and the sureties on their official bonds at the suit of any citizen of the county, township, city, or village, as the case may be, and when collected shall be paid into the proper treasury. The provisions of this section shall not be construed to prevent the proper authority from refunding taxes paid, as provided in section 77-1735, nor to interfere with the powers of any officers or board sitting as a board for the equalization of taxes.

Source:Laws 1903, c. 73, § 164, p. 449; R.S.1913, § 6493; C.S.1922, § 6020; C.S.1929, § 77-1925; R.S.1943, § 77-1737; Laws 1955, c. 297, § 4, p. 932.


Annotations

77-1738. Collection of taxes; when stricken from tax list.

The county board shall cause delinquent taxes on personalty, mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land to be stricken from the tax list. Such delinquent taxes shall only be stricken if (1) at least two years have expired, (2) the treasurer has used due diligence to collect such taxes, and (3)(a) it appears from the return of the treasurer that any person charged with the taxes has removed out of the county or has died and left no property out of which the taxes can be paid or (b) it appears impossible to collect such taxes.

Source:Laws 1903, c. 73, § 165, p. 450; R.S.1913, § 6494; Laws 1915, c. 110, § 1, p. 259; C.S.1922, § 6021; C.S.1929, § 77-1926; R.S.1943, § 77-1738; Laws 1947, c. 260, § 1, p. 849; Laws 1995, LB 490, § 168;    Laws 2000, LB 968, § 68.    


77-1739. Collection of taxes; taxes delinquent for ten years; cancellation of interest on payment of principal.

All personal property taxes or real estate taxes levied on a mobile home, cabin trailer, manufactured home, or similar property assessed and taxed as improvements to leased land of any taxpayer, delinquent for more than ten years, shall be canceled upon the payment of the principal of such taxes, without interest, if all other taxes of such taxpayer in that county, due subsequent thereto, have been paid in full.

Source:Laws 1921, c. 218, § 1, p. 793; C.S.1922, § 6022; C.S.1929, § 77-1927; Laws 1943, c. 177, § 1, p. 621; R.S.1943, § 77-1739; Laws 2000, LB 968, § 69.    


77-1740. Collection of taxes; county treasurer's warrant book; entries.

Each county treasurer is required to keep a book, called the Warrant Book, in which he shall enter every state, county or other warrant or order by him paid, or received in payment of taxes from any person, specifying the date on which the same was received and canceled, from whom received, the payee or person in whose favor it was drawn, its number and date, the amount for which it was drawn, the sum for which it was received, and the interest due thereon, and the treasurer shall keep the account of warrants and orders, by him received for and on account of taxes, separate and distinct from such as are by him paid in cash.

Source:Laws 1903, c. 73, § 167, p. 450; R.S.1913, § 6495; C.S.1922, § 6023; C.S.1929, § 77-1928; R.S.1943, § 77-1740.


77-1741. Collection of taxes; contract for or purchase of warrants or orders at discount by treasurer, forbidden; penalty.

No county, city, township or village treasurer shall either directly or indirectly contract for or purchase any warrant or order or orders issued by the county of which he is treasurer at any discount whatever upon the sum due on such warrant or order or orders. If any county, city, township or village treasurer shall so contract for or purchase any such order or warrant, he shall not be allowed in settlement the amount of the order or warrant, or any part thereof, and shall also forfeit the whole amount due on such order or warrant, to be recovered by civil action, at the suit of the State of Nebraska, for the use of the school fund of the county.

Source:Laws 1903, c. 73, § 168, p. 451; R.S.1913, § 6496; C.S.1922, § 6024; C.S.1929, § 77-1929; R.S.1943, § 77-1741.


77-1742. Collection of taxes, personal; statement of uncollected taxes filed by county treasurer; list of assessment errors.

On or before November 1 annually, and at such other times as the county board may direct, the county treasurer shall make out and file with the county clerk a statement in writing, setting forth in detail the name of each person charged with personal property tax which the county treasurer and his or her deputies have been unable to collect by reason of the removal or insolvency of the person charged with such tax, the value of the property and the amount of tax, the cause of inability to collect such tax in each separate case, in a column provided in the list for that purpose. The treasurer shall, at the same time, make out and file with the county clerk a similar detailed list of errors in assessment of real estate, and errors in footing of tax books, giving in each case a description of the property, the valuation and amount of the several taxes and special assessments, and cause of error. The truth of the statement contained in such lists shall be verified by affidavit of the county treasurer.

Source:Laws 1903, c. 73, § 169, p. 451; R.S.1913, § 6497; C.S.1922, § 6025; C.S.1929, § 77-1930; R.S.1943, § 77-1742; Laws 1998, LB 306, § 35.    


77-1743. Collection of taxes; county treasurer; credit on settlement for delinquent real property taxes and special assessments.

If any lands or lots shall be delinquent for taxes or special assessments, the treasurer shall be entitled to a credit in his final settlement for the amount of the several assessments thereon, the county to allow the amount of printer's fees thereon, and be entitled to the fees when collected.

Source:Laws 1903, c. 73, § 170, p. 452; R.S.1913, § 6498; C.S.1922, § 6026; C.S.1929, § 77-1931; Laws 1937, c. 167, § 9, p. 642; Laws 1939, c. 98, § 9, p. 427; Laws 1941, c. 157, § 9, p. 613; C.S.Supp.,1941, § 77-1931; R.S.1943, § 77-1743.


77-1744. Collection of taxes; county treasurer; credit on settlement for delinquent personal property taxes.

The county treasurer shall not be entitled to credit on the final settlement for delinquent personal property tax until he or she has filed with the clerk an affidavit that he or she has fully complied with the provisions of sections 77-1715 to 77-1725.01 relating to the giving of notice and issuing of distress warrants and been unable to collect the tax due thereon by reason of a want of personal property of the owner thereof and that to the best of his or her knowledge and belief no personal property of any such owner is in the county.

Source:Laws 1903, c. 73, § 170, p. 452; R.S.1913, § 6498; C.S.1922, § 6026; C.S.1929, § 77-1931; Laws 1937, c. 167, § 9, p. 642; Laws 1939, c. 98, § 9, p. 427; Laws 1941, c. 157, § 9, p. 613; C.S.Supp.,1941, § 77-1931; R.S.1943, § 77-1744; Laws 2015, LB408, § 1.    


77-1745. Collection of taxes; settlement of county treasurer; made with county board; when made.

The county treasurer shall settle with the county board within thirty days after the first Tuesday in January, and on the first Monday in July in each year, and at such other times as the county board may direct, at which times the county treasurer shall file with the county clerk a statement showing the amount of money collected since last settlement, from what source derived, amount of money paid out, and for what purpose, together with the vouchers for the same, the amount of taxes due and unpaid and the amount of money on hand belonging to the several funds.

Source:Laws 1903, c. 73, § 170, p. 452; R.S.1913, § 6498; C.S.1922, § 6026; C.S.1929, § 77-1931; Laws 1937, c. 167, § 9, p. 642; Laws 1939, c. 98, § 9, p. 427; Laws 1941, c. 157, § 9, p. 613; C.S.Supp.,1941, § 77-1931; R.S.1943, § 77-1745; Laws 1969, c. 681, § 1, p. 2608.


Annotations

77-1746. Collection of taxes; settlement of county treasurer; with county clerk when board not in session.

If there be no session of the county board held at the proper time for settling and adjusting the accounts of the county treasurer, it shall be the duty of the treasurer to file the lists with the county clerk, who shall examine said lists and correct the same, if necessary, in like manner as the board is required to do. The county clerk shall make an accurate computation of the value of the property and the amount of the delinquent tax and special assessment returned, for which the treasurer is entitled to credit.

Source:Laws 1903, c. 73, § 171, p. 452; R.S.1913, § 6499; C.S.1922, § 6027; C.S.1929, § 77-1932; R.S.1943, § 77-1746.


77-1747. Repealed. Laws 1995, LB 490, § 195.

77-1748. Collection of taxes; settlement of county treasurer; certificate to local authorities.

The county clerk shall also at the same time certify to the several authorities or persons with whom the county treasurer is to make settlement, showing the valuation of property and the amount of taxes and special assessments due thereon allowable to the treasurer in the settlement of his several accounts.

Source:Laws 1903, c. 73, § 173, p. 453; R.S.1913, § 6501; C.S.1922, § 6029; C.S.1929, § 77-1934; R.S.1943, § 77-1748.


77-1749. Collection of taxes; settlement of county treasurer; credit for delinquent taxes; audit of treasurer's books.

The Tax Commissioner and other proper authority or person shall in his or her final settlement with the treasurer allow him or her credit for the amount so certified, but if the Tax Commissioner or other proper authority or person shall have reason to believe that the amount stated in the certificate is not correct, or that the allowance was illegally made, he or she shall return the same for correction. When it appears to be necessary in the opinion of the Tax Commissioner or other proper authority or person, he or she shall designate and appoint some competent person to examine the treasurer's books and statement of settlement, and the person so designated and appointed shall have access to the treasurer's books and papers appertaining to such treasurer's office or settlement for the purpose of making such examination.

Source:Laws 1903, c. 73, § 174, p. 453; R.S.1913, § 6502; C.S.1922, § 6030; C.S.1929, § 77-1935; R.S.1943, § 77-1749; Laws 1995, LB 490, § 169;    Laws 2007, LB334, § 83.    


Annotations

77-1750. Collection of taxes; settlement of county treasurer; adjustment with county clerk; order by county board.

In all cases when the adjustment is made with the county clerk, the county board shall, at the first session thereafter, examine such settlement and if found correct shall enter an order to that effect. If any omission or error is found, the board shall cause the same to be corrected and a correct statement of the facts in the case forwarded to the Tax Commissioner and other proper authority or person who shall correct and adjust the treasurer's accounts accordingly.

Source:Laws 1903, c. 73, § 175, p. 453; R.S.1913, § 6503; C.S.1922, § 6031; C.S.1929, § 77-1936; R.S.1943, § 77-1750; Laws 1995, LB 490, § 170;    Laws 2007, LB334, § 84.    


77-1751. Repealed. Laws 1995, LB 490, § 195.

77-1752. Repealed. Laws 1995, LB 490, § 195.

77-1753. Repealed. Laws 1995, LB 490, § 195.

77-1754. Repealed. Laws 1995, LB 490, § 195.

77-1755. Repealed. Laws 1995, LB 490, § 195.

77-1755.01. Repealed. Laws 1995, LB 490, § 195.

77-1756. Repealed. Laws 1995, LB 490, § 195.

77-1757. Repealed. Laws 1995, LB 490, § 195.

77-1758. Repealed. Laws 1995, LB 490, § 195.

77-1759. Collection of taxes; report to and payment of taxes and special assessments; when required.

The county treasurer shall report and pay over the amount of tax and special assessments due to towns, districts, cities, villages, all other taxing units, corporations, persons, and land banks, collected by him or her, when demanded by the proper authorities or persons. Upon a demand, one payment shall be for the funds collected or received during the previous calendar month and shall be paid not later than the fifteenth of the following month. A second demand may be made prior to the fifteenth of the month on taxes and special assessments collected or received, during the first fifteen days of the month. The second demand shall be paid not later than the last day of the month.

Source:Laws 1903, c. 73, § 183, p. 456; R.S.1913, § 6511; C.S.1922, § 6039; C.S.1929, § 77-1944; R.S.1943, § 77-1759; Laws 1998, LB 1104, § 11;    Laws 1999, LB 287, § 2;    Laws 2013, LB97, § 20.    


Annotations

77-1760. Collection of taxes; failure to report and pay taxes collected by county treasurer; suit on bond.

If any county treasurer fails to make reports and payments required by section 77-1759 for five days after demand made the proper authority or person may bring suit upon his or her bond.

Source:Laws 1903, c. 73, § 184, p. 456; R.S.1913, § 6512; C.S.1922, § 6040; C.S.1929, § 77-1945; R.S.1943, § 77-1760; Laws 1995, LB 490, § 171.    


Annotations

77-1761. Collection of taxes; failure to report and pay taxes collected by county treasurer; removal from office.

If any county treasurer fails to account for and settle as required in section 77-1760, his office may be declared vacant by the county board, and the vacancy filled as hereinbefore provided.

Source:Laws 1903, c. 73, § 185, p. 456; R.S.1913, § 6513; C.S.1922, § 6041; C.S.1929, § 77-1946; R.S.1943, § 77-1761.


77-1762. Collection of taxes; failure to pay taxes collected by county treasurer; liability on bond.

The bond of every county treasurer shall be held to be security for the payment by such treasurer to the State Treasurer and the several cities, towns, villages, and the proper authorities and persons, respectively, of all taxes and special assessments which may be collected or received by him on their behalf, by virtue of any law in force at the time of giving such bond, or that may be passed or take effect thereafter.

Source:Laws 1903, c. 73, § 186, p. 456; R.S.1913, § 6514; C.S.1922, § 6042; C.S.1929, § 77-1947; R.S.1943, § 77-1762.


Annotations

77-1763. Collection of taxes; failure to make settlement with state; suit by Tax Commissioner.

Upon the failure of any county treasurer to make settlement with the Tax Commissioner, the Tax Commissioner shall sue the treasurer and his or her surety upon the bond of such treasurer, or sue the treasurer in such form as may be necessary, and take all such proceedings, either upon such bond or otherwise, as may be necessary to protect the interest of the state.

Source:Laws 1903, c. 73, § 187, p. 457; R.S.1913, § 6515; C.S.1922, § 6043; C.S.1929, § 77-1948; R.S.1943, § 77-1763; Laws 1995, LB 490, § 172;    Laws 2007, LB334, § 85.    


77-1764. Collection of taxes; suit on behalf of state; where brought.

Suit shall be brought in behalf of the state in the district court of the county in which the treasurer holds office or resides, and process may be directed to any county in the state.

Source:Laws 1903, c. 73, § 188, p. 457; R.S.1913, § 6516; C.S.1922, § 6044; C.S.1929, § 77-1949; R.S.1943, § 77-1764.


77-1765. Collection of taxes; suit on behalf of state; power of court to require disclosure; entry of judgment.

If any proceedings against any officer or person, whose duty it is to collect, receive, settle for or pay over any of the revenue of the state, whether the proceeding be by suit on the bond of such officer or person or otherwise, the court in which the proceeding is pending shall have power, in a summary way, to compel such officer or person to exhibit on oath a full and fair statement of all money by him collected or received, or which ought to be settled for or paid over, and to disclose all such matters and things as may be necessary to a full understanding of the case, and the court may, upon hearing, give judgment for such sum or sums of money as such officer or person is liable in law to pay. If in any suit upon the bonds of any such officer or person, he or his sureties, or any of them, shall not for any reason be liable upon the bond, the court may, nevertheless, give judgment against such officer and such of his sureties as are liable, for the amount he or they may be liable to pay, without regard to the form of the action or pleadings.

Source:Laws 1903, c. 73, § 188, p. 457; R.S.1913, § 6516; C.S.1922, § 6044; C.S.1929, § 77-1949; R.S.1943, § 77-1765.


Annotations

77-1766. Collection of taxes; suit by aggrieved municipal corporations.

Cities, towns, villages, or corporate authorities or persons aggrieved may prosecute suit against any treasurer, or other officer collecting or receiving funds for their use, upon his or her bond, in the name of the State of Nebraska, for their use in any court of competent jurisdiction, whether the bond has been put in suit at the instance of the Tax Commissioner or not. Cities, towns, villages, and other corporate authorities or persons shall have the same right in any suits or proceedings in their behalf as is provided in case of suits by or on behalf of the state.

Source:Laws 1903, c. 73, § 189, p. 457; R.S.1913, § 6517; C.S.1922, § 6045; C.S.1929, § 77-1950; R.S.1943, § 77-1766; Laws 1995, LB 490, § 173;    Laws 2007, LB334, § 86.    


77-1767. Collection of taxes; loss or destruction of tax records; new assessment or new records authorized.

When assessment rolls or treasurers' books, in whole or in part, of any county, town, city, village or district shall be lost or destroyed by any means whatever, a new assessment, or new books as the case may require, shall be made under direction of the county board. The board shall, in such cases, fix reasonable times and dates for performing the work of assessment, equalization, levy, extension and collection of taxes, and paying over the same, or making new books, as the circumstances of the case may require. The dates fixed by the county board shall conform to the dates required by law for similar purposes. The county board is fully empowered to select and appoint persons where it may find the same necessary to carry into effect the provisions of this section.

Source:Laws 1903, c. 73, § 190, p. 458; R.S.1913, § 6518; C.S.1922, § 6046; C.S.1929, § 77-1951; R.S.1943, § 77-1767.


77-1768. Repealed. Laws 1995, LB 490, § 195.

77-1769. Repealed. Laws 1995, LB 490, § 195.

77-1770. Repealed. Laws 1995, LB 490, § 195.

77-1771. Collection of taxes; claim against governmental subdivision; deduction of personal taxes.

The governing body of any municipal corporation or governmental subdivision of the state, whenever the account or claim of any person is presented to it for allowance, and whenever there has been filed with it a statement from the county treasurer of the amount of delinquent personal taxes assessed against the person in whose favor the account or claim is presented, shall deduct from any amount found due upon such account or claim the amount of such tax, and shall forthwith issue a warrant for the balance remaining, if any. For any such delinquent personal taxes so setoff and deducted from any such account or claim, the governing body shall issue an order to the treasurer thereof directing him to draw from the same fund out of which said account or claim should have been paid, the amount of said delinquent taxes so setoff or deducted, and apply the same upon the said delinquent personal taxes in satisfaction thereof. The county treasurer shall, upon application of such claimant, issue receipt therefor to the person whose taxes are so satisfied.

Source:Laws 1933, c. 126, § 2, p. 501; C.S.Supp.,1941, § 77-1954; R.S.1943, § 77-1771.


Annotations

77-1772. Collection of taxes; interest on delinquent taxes; distribution.

Interest collected upon delinquent county, city, village, school district, or learning community taxes shall be credited on the books and distributed among the various governmental subdivisions and municipal corporations in the same proportion as the principal of the taxes is credited and distributed.

Source:Laws 1933, c. 132, § 1, p. 509; C.S.Supp.,1941, § 77-1957; R.S.1943, § 77-1772; Laws 1947, c. 261, § 1, p. 850; Laws 2006, LB 1024, § 11.    


77-1773. Repealed. Laws 1973, LB 224, § 18.

77-1774. Collection of taxes; reciprocity with other states; taxes, defined.

(1) Any state of the United States of America or any political subdivision thereof has the right to sue in the courts of the State of Nebraska to recover any lawfully imposed taxes which may be owing it, whether or not the taxes have been reduced to judgment, when the like right is accorded to the State of Nebraska and its political subdivisions by that state through statutory authority or granted as a matter of comity. The appropriate officials of such other state are authorized to bring action in the courts of this state for the collection of such taxes. The certificate of the Secretary of State of such other state that such officials have the authority to collect the taxes to be collected by such action shall be conclusive proof of authority.

(2) The Attorney General or an appropriate official of any political subdivision of the State of Nebraska may bring suit in the courts of other states to collect taxes legally due this state or any political subdivision thereof.

(3) Taxes as used in this section shall include: (a) Any and all tax assessments lawfully made, whether they be based upon a return or other disclosure of the taxpayer, or upon the information and belief of the taxing authority, or otherwise; (b) any and all penalties lawfully imposed pursuant to a taxing statute; and (c) interest charges lawfully added to the tax liability which constitutes the subject of the action.

Source:Laws 1967, c. 491, § 1, p. 1672.


77-1775. Tax paid as result of clerical error, misunderstanding, or mistake; refund or credit; procedure.

(1) In case of payment of any taxes upon property valued by the state made as a result of a clerical error or honest mistake or misunderstanding, except as to valuation or equalization, on the part of the taxing officials of the state or the taxpayer, the taxpayer shall make a written claim for a credit or refund of the tax paid within two years from the date the tax was due. The claim shall set forth the amount of the overpayment and the reasons therefor.

(2) The Tax Commissioner may approve or disapprove the claim in whole or part without a hearing. The Tax Commissioner shall grant a hearing prior to taking any action on a claim for refund or credit if requested in writing by the taxpayer when the claim is filed or prior to any action being taken on the claim by the Tax Commissioner. The written order of the Tax Commissioner shall be mailed to the claimant within seven days after the date of the order. If the claim is denied in whole or part, the taxpayer may appeal within thirty days after the date of the written order of the Tax Commissioner to the Tax Equalization and Review Commission in accordance with section 77-5013.

(3) Upon approval of the claim by the Tax Commissioner, the Property Tax Administrator shall certify the amount of the refund or credit to the county treasurer to whom the tax was paid or distributed. If only valuation was previously certified to a county or counties, then the Property Tax Administrator shall certify the value resulting from the written order to the official who received the original valuation which was changed by the written order. The refund shall be made in the manner prescribed in section 77-1736.06. The ordering of a refund or credit pursuant to this section shall not have a dispositional effect on any similar claim for refund or credit made by another taxpayer.

Source:Laws 1983, LB 193, § 12;    Laws 1988, LB 352, § 157;    Laws 1989, LB 762, § 5;    Laws 1991, LB 829, § 17; Laws 1995, LB 490, § 174;    Laws 2004, LB 973, § 42;    Laws 2007, LB334, § 87;    Laws 2009, LB166, § 17.    


Annotations

77-1775.01. Appeal resulting in lower value; refund; procedure.

(1) When property is valued or equalized by the Tax Commissioner, the Property Tax Administrator, or the Tax Equalization and Review Commission and an appeal is taken from such valuation or equalization and the final result of such appeal establishes a lower value than that upon which taxes have been paid, the amount of taxes paid on the value in excess of that finally determined value shall be refunded to the prevailing party who has paid such tax. If an appeal results in a lower value, only the taxpayer who is a party to the appeal shall be entitled to a refund.

(2) Upon receipt of a final nonappealable order, the commission shall meet or the Property Tax Administrator shall act within thirty days thereof to order the recertification of valuation of the prevailing party.

(3) The Property Tax Administrator upon receiving a certified copy of such recertification order shall recertify the amount of the valuation or tax to the county assessor of the county or counties to which the tax was paid or distributed. If only valuation was previously certified to a county or counties, then the Property Tax Administrator shall recertify the value resulting from the final nonappealable order to the county assessor who received the original valuation which was changed by the final order. The refund shall be made in the manner prescribed in section 77-1736.06. Nothing in this section shall be construed to mean that any taxpayer shall have had to pay any tax under protest or claim a refund of the tax paid.

Source:Laws 1989, LB 762, § 6;    Laws 1989, Spec. Sess., LB 2, § 1; Laws 1991, LB 829, § 18; Laws 1992, Fourth Spec. Sess., LB 1, § 18;    Laws 1995, LB 490, § 175;    Laws 1997, LB 397, § 24.    


77-1775.02. Changes to section 77-1775.01; applicability.

The changes made to section 77-1775.01 by Laws 1989, LB 2, Ninety-first Legislature, First Special Session, are expressly intended to apply to all litigation pending as of November 22, 1989.

Source:Laws 1989, Spec. Sess., LB 2, § 2.


77-1776. Overpayment due to clerical error or mistake; return by political subdivision; how treated.

Any political subdivision which has received proceeds from a levy imposed on all taxable property within an entire county which is in excess of that requested by the political subdivision under the Property Tax Request Act as a result of a clerical error or mistake shall, in the fiscal year following receipt, return the excess tax collections, net of the collection fee, to the county. By July 31 of the fiscal year following the receipt of any excess tax collections, the county treasurer shall certify to the political subdivision the amount to be returned. Such excess tax collections shall be restricted funds in the budget of the county that receives the funds under section 13-518.

Source:Laws 1999, LB 36, § 1;    Laws 2021, LB644, § 21.    


Cross References

77-1777. Tax refund; sections applicable.

Sections 77-1778 to 77-1782 shall apply to any tax, except property taxes, collected by the Tax Commissioner to the extent that specific refund provisions have not been enacted. If there is any conflict between any specific refund statutes and the provisions of sections 77-1778 to 77-1782, the specific refund statutes shall control.

Source:Laws 1987, LB 523, § 36;    Laws 1989, LB 762, § 7;    Laws 1996, LB 1041, § 3.    


77-1778. Tax refund; file claim; when.

When any person believes that he or she has made payment of a tax or any penalty or interest that is in excess of his or her tax liability for any reason, he or she may file a claim with the Tax Commissioner for a refund of such overpayment.

Source:Laws 1987, LB 523, § 37.    


77-1779. Tax refund; claim; contents; form.

(1) A claim for a refund shall be in writing and filed with the Tax Commissioner within three years of the date (a) on which the overpayment was made or (b) on which the tax was required to be paid, whichever is later.

(2) The claim shall state the reason for the overpayment and the amount of refund or credit requested.

(3) The Tax Commissioner may prescribe the necessary forms for the filing of a claim for refund.

(4) An amended return reducing the amount of the liability and containing an explanation of the reduction shall constitute a refund claim.

Source:Laws 1987, LB 523, § 38.    


77-1780. Tax refund; Tax Commissioner; powers; duties; interest.

(1) Pursuant to this section, the Tax Commissioner may approve the claim for refund, in whole or in part.

(2) The Tax Commissioner shall grant a hearing prior to taking any action on a claim for a refund if requested in writing by the taxpayer when the claim is filed or prior to any action being taken on the claim.

(3) The Tax Commissioner shall notify the taxpayer in writing of the denial of his or her claim for a refund. The notification shall be made by mail.

(4) Upon approval, the Tax Commissioner shall cause:

(a) A refund to be paid from the fund to which the tax was originally deposited;

(b) A credit to be established against the subsequent tax liability of the taxpayer if the amount of the credit does not exceed twelve times the average monthly tax liability of the taxpayer; or

(c) A credit to be applied to any other existing liability for any other tax collected by the Tax Commissioner.

(5) The payment of the claim for a refund, the allowance of a credit, or the application of the refund to an existing balance, in whole or in part, shall be considered a final decision of the Tax Commissioner for the purposes of the Administrative Procedure Act.

(6) Interest shall be paid from the date of overpayment or the date the tax was required to be paid, whichever is later, until the date the overpayment is refunded, credited, or applied.

(7) Interest shall be paid at the rate specified in section 45-104.02, as such rate may from time to time be adjusted.

Source:Laws 1987, LB 523, § 39;    Laws 1996, LB 1041, § 4;    Laws 2012, LB727, § 33.    


Cross References

77-1781. Tax refund; denial; appeal.

The denial, in whole or in part, of a claim for refund shall be considered a final action of the Tax Commissioner. The denial may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1987, LB 523, § 40;    Laws 1988, LB 352, § 158.    


Cross References

77-1782. Tax refund; erroneous payment; how treated.

(1) Any refund that is erroneously paid shall be considered an underpayment of the tax liability and may be assessed and collected in the same manner as any other underpayment of the tax required to be paid.

(2) It shall be an underpayment as of the date of the payment of the refund, the date the refund was applied to another liability, or the date the credit was used by the taxpayer to satisfy a subsequent tax liability.

Source:Laws 1987, LB 523, § 41.    


77-1783. Repealed. Laws 1996, LB 1041, § 11.

77-1783.01. Corporate taxes; corporate officer or employee; personal liability; collection procedure; limitation.

(1) Any officer or employee with the duty to collect, account for, or pay over any taxes imposed upon a corporation or with the authority to decide whether the corporation will pay taxes imposed upon a corporation shall be personally liable for the payment of such taxes in the event of willful failure on his or her part to have a corporation perform such act. Such taxes shall be collected in the same manner as provided under the Uniform State Tax Lien Registration and Enforcement Act.

(2) Within sixty days after the day on which the notice and demand are made for the payment of such taxes, any officer or employee seeking to challenge the Tax Commissioner's determination as to his or her personal liability for the corporation's unpaid taxes may petition for a redetermination. The petition may include a request for the redetermination of the personal liability of the corporate officer or employee, the redetermination of the amount of the corporation's unpaid taxes, or both. If a petition for redetermination is not filed within the sixty-day period, the determination becomes final at the expiration of the period.

(3) If the requirements prescribed in subsection (2) of this section are satisfied, the Tax Commissioner shall abate collection proceedings and shall grant the officer or employee an oral hearing and give him or her ten days' notice of the time and place of such hearing. The Tax Commissioner may continue the hearing from time to time as necessary.

(4) Any notice required under this section shall be served personally or by mail in the manner provided in section 77-27,135.

(5) If the Tax Commissioner determines that further delay in the collection of such taxes from the officer or employee will jeopardize future collection proceedings, nothing in this section shall prevent the immediate collection of such taxes.

(6) No notice or demand for payment may be issued against any officer or employee with the duty to collect, account for, or pay over any taxes imposed upon a corporation or with the authority to decide whether the corporation will pay taxes imposed upon a corporation more than three years after the final determination of the corporation's liability or more than one year after the closure or dismissal of a bankruptcy case in which the corporation appeared as the debtor or debtor in possession if the three-year period to issue a notice or demand for payment had not expired prior to the filing of the petition in bankruptcy, whichever date is later.

(7) For purposes of this section:

(a) Corporation shall mean any corporation and any other entity that is taxed as a corporation under the Internal Revenue Code;

(b) Taxes shall mean all taxes and additions to taxes including interest and penalties imposed under the revenue laws of this state which are administered by the Tax Commissioner; and

(c) Willful failure shall mean that failure which was the result of an intentional, conscious, and voluntary action.

Source:Laws 1996, LB 1041, § 5;    Laws 2008, LB914, § 6;    Laws 2009, LB165, § 2;    Laws 2011, LB210, § 6.    


Cross References

77-1784. Electronic filings; electronic fund transfers; required; when; penalty; disclosure to taxpayer.

(1) The Tax Commissioner may accept electronic filing of applications, returns, and any other document required to be filed with the Tax Commissioner.

(2) The Tax Commissioner may use electronic fund transfers to collect any taxes, fees, or other amounts required to be paid to or collected by the Tax Commissioner or to pay any refunds of such amounts.

(3) The Tax Commissioner may adopt rules and regulations to establish the criteria for acceptability of filing documents and making payments electronically. The criteria may include requirements for electronic signatures, the type of tax for which electronic filings or payments will be accepted, the method of transfer, or minimum amounts which may be transferred. The Tax Commissioner may refuse to accept any electronic filings or payments that do not meet the criteria established.

(4) The Tax Commissioner may require the use of electronic fund transfers for any taxes, fees, or amounts required to be paid to or collected by the Tax Commissioner for any taxpayer who made payments exceeding five thousand dollars for a tax program in any prior year for that tax program. The requirement to make electronic fund transfers may be phased in as deemed necessary by the Tax Commissioner. Notice of the requirement to make electronic fund transfers shall be provided at least three months prior to the date the first electronic payment is required to be made.

(5) Except for individual income tax payments required under section 77-2715 and estimated payments for individuals under section 77-2769, any person who fails to make a required payment by electronic fund transfer shall be subject to a penalty of one hundred dollars for each required payment that was not made by electronic fund transfer. The penalty provided by this section shall be in addition to all other penalties and applies even if payment by some other method is timely made. The Tax Commissioner may waive the penalty provided in this section upon a showing of good cause.

(6) The use of electronic filing of documents and electronic fund transfers shall not change the rights of any party from the rights such party would have if a different method of filing or payment were used. Until criteria for electronic signatures are adopted under subsection (3) of this section, the document produced during the electronic filing of a taxpayer's information with the state shall be prima facie evidence for all purposes that the taxpayer's signature accompanied the taxpayer's information in the electronic transmission.

(7) For tax returns due on or after January 1, 2010, the Tax Commissioner may require any person that aids, procures, advises, or assists in the preparation of and files any tax return on behalf of any taxpayer for profit to file an electronic return if the person filed twenty-five or more tax returns in the prior calendar year. The requirement to require electronic filing may be phased in as deemed necessary by the Tax Commissioner.

Any person that files a tax return on behalf of a taxpayer must disclose in writing to the taxpayer that the return will be filed in an electronic format and in accordance with rules and regulations prescribed by the Tax Commissioner.

(8) Any person who fails to file an electronic return as required under subsection (7) of this section shall be subject to a penalty of one hundred dollars for each return that was not properly filed in addition to other penalties provided by law. The Tax Commissioner may waive the penalty provided in this section upon a showing of good cause.

(9) The Legislature hereby finds and determines that the development of a comprehensive electronic filing and payment system for all state tax programs and fees administered by the Department of Revenue is of critical importance to the State of Nebraska. It is the intent of the Legislature that the department implement a mandatory electronic filing system for all state tax programs and fees administered by the department as deemed practicable and necessary for the proper administration of the Nebraska Revenue Act of 1967. It is the intent of the Legislature that the department require the use of electronic fund transfers for any taxes, fees, or amounts required to be paid to or collected by the department as deemed practicable and necessary for the proper administration of the Nebraska Revenue Act of 1967.

Source:Laws 1987, LB 523, § 42;    Laws 1995, LB 134, § 1;    Laws 2000, LB 1251, § 1;    Laws 2005, LB 216, § 2;    Laws 2009, LB165, § 3;    Laws 2010, LB879, § 7.    


Cross References

77-1785. Residential real property; sale; proration of taxes due.

Whenever residential real property is sold, the property taxes due on such real property for the year in which the sale occurred shall be prorated based on the number of days the buyer and seller owned the property during such year, unless the buyer and seller have agreed to a different proration of such property taxes.

Source:Laws 2021, LB466, § 1.    


77-1801. Real property taxes; collection by sale; when.

Except for delinquent taxes on mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land, all real estate on which the taxes shall not have been paid in full, as provided by law, on or before the first Monday of March, after they become delinquent, shall be subject to sale on or after such date.

Source:Laws 1903, c. 73, § 193, p. 459; R.S.1913, § 6521; C.S.1922, § 6049; C.S.1929, § 77-2001; Laws 1933, c. 136, § 4, p. 518; Laws 1937, c. 167, § 23, p. 655; Laws 1939, c. 98, § 23, p. 442; Laws 1941, c. 157, § 23, p. 626; C.S.Supp.,1941, § 77-2001; R.S.1943, § 77-1801; Laws 1986, LB 531, § 1;    Laws 2000, LB 968, § 70.    


Annotations

77-1802. Real property taxes; delinquent tax list; notice of sale.

The county treasurer shall, not less than four nor more than six weeks prior to the first Monday of March in each year, make out a list of all real property subject to sale and the amount of all delinquent taxes against each item with an accompanying notice stating that so much of such property described in the list as may be necessary for that purpose will, on the first Monday of March next thereafter, be sold by such county treasurer at public auction at his or her office for the taxes, interest, and costs thereon. In making such list, the county treasurer shall describe the property as it is described on the tax list and shall include the name of the owner of record of the property, the property's parcel number, if any, and the property's street address, if any.

Source:Laws 1903, c. 73, § 194, p. 459; R.S.1913, § 6522; C.S.1922, § 6050; Laws 1929, c. 169, § 1, p. 583; C.S.1929, § 77-2002; Laws 1933, c. 136, § 5, p. 519; Laws 1937, c. 167, § 24, p. 655; Laws 1939, c. 98, § 24, p. 442; Laws 1941, c. 157, § 24, p. 626; C.S.Supp.,1941, § 77-2002; R.S.1943, § 77-1802; Laws 1986, LB 531, § 2;    Laws 1992, LB 1063, § 139; Laws 1992, Second Spec. Sess., LB 1, § 112;    Laws 2019, LB463, § 1;    Laws 2023, LB727, § 52.    
Operative Date: September 2, 2023


Annotations

77-1803. Real property taxes; notice of sale; sufficiency of description.

In describing real property in the notice required by section 77-1802 and in all proceedings relative to assessing, advertising, or selling the property for taxes, it shall be sufficient to designate the township, range, sections, or part of section and also the number of lots and blocks, by initial letters, abbreviations, and figures.

In describing improvements on leased land for such notice and proceedings, the words "Improvements Only Located Upon" shall precede the designation of such property as set out in this section.

Source:Laws 1903, c. 73, § 195, p. 460; R.S.1913, § 6523; C.S.1922, § 6051; C.S.1929, § 77-2003; R.S.1943, § 77-1803; Laws 1992, LB 1063, § 140; Laws 1992, Second Spec. Sess., LB 1, § 113.    


Annotations

77-1804. Real property taxes; delinquent tax list; publication and posting of notice; publication charges; publication on Department of Revenue website.

(1) The county treasurer shall cause the list of real property subject to sale and accompanying notice to be published once a week for three consecutive weeks prior to the date of sale, commencing the first week in February, in a legal newspaper and, in counties having more than two hundred fifty thousand inhabitants, in a daily legal newspaper of general circulation, published in the English language in the county, and designated by the county board. The county treasurer shall also cause to be posted in some conspicuous place in his or her office a copy of such notice. The treasurer shall assess against each description the sum of five dollars to defray the expenses of advertising, which sum shall be added to the total amount due on such real property and be collected in the same manner as taxes are collected.

(2) The county treasurer shall also forward an electronic copy of the list of real property subject to sale to the Property Tax Administrator who shall compile a list for all counties and publish the compiled list on the website of the Department of Revenue.

Source:Laws 1903, c. 73, § 196, p. 460; R.S.1913, § 6524; Laws 1915, c. 111, § 1, p. 260; Laws 1919, c. 133, § 2, p. 310; C.S.1922, § 6052; Laws 1929, c. 170, § 1, p. 584; C.S.1929, § 77-2004; Laws 1933, c. 136, § 6, p. 519; Laws 1937, c. 167, § 25, p. 656; Laws 1939, c. 98, § 25, p. 443; Laws 1941, c. 157, § 25, p. 627; C.S.Supp.,1941, § 77-2004; R.S.1943, § 77-1804; Laws 1953, c. 279, § 1, p. 910; Laws 1965, c. 495, § 1, p. 1583; Laws 1974, LB 937, § 2;    Laws 1976, LB 675, § 1; Laws 1986, LB 531, § 3;    Laws 1992, LB 1063, § 141; Laws 1992, Second Spec. Sess., LB 1, § 114;    Laws 1995, LB 202, § 2;    Laws 2014, LB697, § 1.    


Cross References

Annotations

77-1805. Real property taxes; affidavits of publication; by whom made.

Every printer who shall publish such list and notice shall, immediately after the last publication thereof, furnish to the treasurer of the proper county an affidavit of publication made by the publisher, manager or foreman of such newspaper to whom the facts of publication are known. No printer shall be paid for such publication who shall fail to furnish such affidavit within ten days after the last publication. The county treasurer shall also make, or cause to be made, an affidavit or affidavits of the publication of such list and notice as above required, all of which shall be carefully preserved by him in his office.

Source:Laws 1903, c. 73, § 197, p. 460; R.S.1913, § 6525; C.S.1922, § 6053; C.S.1929, § 77-2005; R.S.1943, § 77-1805.


Annotations

77-1806. Real property taxes; delinquent tax sale; when commenced and concluded.

On the day designated in the notice of sale, the county treasurer shall commence the sale of the real property on which the taxes and charges have not been paid and shall continue the sale from day to day, Sundays and holidays excepted, until each item of real property or so much thereof as is sufficient to pay the taxes and charges thereon, including the cost of advertising, has been sold or offered for sale.

Source:Laws 1903, c. 73, § 198, p. 461; R.S.1913, § 6526; C.S.1922, § 6054; C.S.1929, § 77-2006; Laws 1937, c. 167, § 10, p. 642; Laws 1939, c. 98, § 10, p. 428; Laws 1941, c. 157, § 10, p. 613; C.S.Supp.,1941, § 77-2006; R.S.1943, § 77-1806; Laws 1992, LB 1063, § 142; Laws 1992, Second Spec. Sess., LB 1, § 115.    


Annotations

77-1807. Real property taxes; delinquent tax sale; how conducted; sale of part; bid by land bank; effect.

(1)(a) This subsection applies until January 1, 2015.

(b) Except as otherwise provided in subdivision (c) of this subsection, the person who offers to pay the amount of taxes due on any real property for the smallest portion of the same shall be the purchaser, and when such person designates the smallest portion of the real property for which he or she will pay the amount of taxes assessed against any such property, the portion thus designated shall be considered an undivided portion.

(c) If a land bank gives an automatically accepted bid for the real property pursuant to section 18-3417, the land bank shall be the purchaser, regardless of the bid of any other person.

(d) If no person bids for a less quantity than the whole and no land bank has given an automatically accepted bid pursuant to section 18-3417, the treasurer may sell any real property to any one who will take the whole and pay the taxes and charges thereon.

(e) If the homestead is listed separately as a homestead, it shall be sold only for the taxes delinquent thereon.

(2)(a) This subsection applies beginning January 1, 2015.

(b) If a land bank gives an automatically accepted bid for real property pursuant to section 18-3417, the land bank shall be the purchaser and no public or private auction shall be held under sections 77-1801 to 77-1863.

(c) If no land bank has given an automatically accepted bid pursuant to section 18-3417, the person who offers to pay the amount of taxes, delinquent interest, and costs due on any real property shall be the purchaser.

(d) The county treasurer shall announce bidding rules at the beginning of the public auction, and such rules shall apply to all bidders throughout the public auction.

(e) The sale, if conducted in a round-robin format, shall be conducted in the following manner:

(i) At the commencement of the sale, a count shall be taken of the number of registered bidders present who want to be eligible to purchase property. Each registered bidder shall only be counted once. If additional registered bidders appear at the sale after the commencement of a round, such registered bidders shall have the opportunity to participate at the end of the next following round, if any, as provided in subdivision (v) of this subdivision;

(ii) Sequentially enumerated tickets shall be placed in a receptacle. The number of tickets in the receptacle for the first round shall equal the count taken in subdivision (i) of this subdivision, and the number of tickets in the receptacle for each subsequent round shall equal the number of the count taken in subdivision (i) of this subdivision plus additional registered bidders as provided in subdivision (v) of this subdivision;

(iii) In a manner determined by the county treasurer, tickets shall be selected from the receptacle by hand for each registered bidder whereby each ticket has an equal chance of being selected. Tickets shall be selected until there are no tickets remaining in the receptacle;

(iv) The number on the ticket selected for a registered bidder shall represent the order in which a registered bidder may purchase property consisting of one parcel subject to sale from the list per round; and

(v) If property listed remains unsold at the end of a round, a new round shall commence until all property listed is either sold or, if any property listed remains unsold, each registered bidder has consecutively passed on the opportunity to make a purchase. Registered bidders who are not present when it is their turn to purchase property shall be considered to have passed on the opportunity to make a purchase. At the beginning of the second and any subsequent rounds, the county treasurer shall inquire whether there are additional registered bidders. If additional registered bidders are present, tickets for each such bidder shall be placed in a receptacle and selected as provided in subdivisions (ii) through (iv) of this subdivision. The second and any subsequent rounds shall proceed in the same manner and purchase order as the last preceding round, except that any additional registered bidders shall be given the opportunity to purchase at the end of the round in the order designated on their ticket.

(f) Any property remaining unsold upon completion of the public auction shall be sold at a private sale pursuant to section 77-1814.

(g) A bidder shall (i) register with the county treasurer prior to participating in the sale, (ii) provide proof that it maintains a registered agent for service of process with the Secretary of State if the bidder is a foreign corporation, and (iii) pay a twenty-five-dollar registration fee. The fee is not refundable upon redemption.

Source:Laws 1903, c. 73, § 199, p. 461; R.S.1913, § 6527; C.S.1922, § 6055; C.S.1929, § 77-2007; Laws 1937, c. 167, § 11, p. 643; Laws 1939, c. 98, § 11, p. 428; Laws 1941, c. 157, § 11, p. 614; C.S.Supp.,1941, § 77-2007; R.S.1943, § 77-1807; Laws 1992, LB 1063, § 143; Laws 1992, Second Spec. Sess., LB 1, § 116;    Laws 2013, LB97, § 21;    Laws 2013, LB341, § 1;    Laws 2014, LB851, § 9;    Laws 2020, LB424, § 20.    


Annotations

77-1808. Real property taxes; delinquent tax sale; payment by purchaser; resale.

The person purchasing any real property shall pay to the county treasurer the amount of taxes, interest, and cost thereon, which payment may be made in the same funds receivable by law in the payment of taxes. If any purchaser fails to so pay, then the real property shall at once again be offered as if no such sale had been made.

Source:Laws 1903, c. 73, § 200, p. 461; R.S.1913, § 6528; C.S.1922, § 6056; C.S.1929, § 77-2008; Laws 1937, c. 167, § 12, p. 643; Laws 1939, c. 98, § 12, p. 429; Laws 1941, c. 157, § 12, p. 614; C.S.Supp.,1941, § 77-2008; R.S.1943, § 77-1808; Laws 1992, LB 1063, § 144; Laws 1992, Second Spec. Sess., LB 1, § 117;    Laws 2013, LB341, § 2.    


Annotations

77-1809. Real property taxes; delinquent tax sales; purchase by county; assignment of certificate of purchase; interest; notice to land bank.

(1) At all sales provided by law, the county board may purchase for the use and benefit, and in the name of the county, any real estate advertised and offered for sale when the same remains unsold for want of bidders. The county treasurer shall issue certificates of purchase of the real estate so sold in the name of the county. Such certificates shall remain in the custody of the county treasurer, who shall at any time assign the same to any person wishing to buy for the amount expressed on the face of the certificate and interest thereon at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date thereof. Such assignment shall be attested by the endorsement of the county clerk of his or her name on the back of such certificate, and such endorsement shall be made when requested by the county treasurer.

(2) If real estate is purchased by a county under this section and such real estate lies within a municipality that has created a land bank pursuant to the Nebraska Municipal Land Bank Act, the county treasurer of such county shall notify the land bank of such purchase as soon as practical and shall give the land bank the first opportunity to acquire the certificate of purchase for such real estate from the county.

Source:Laws 1903, c. 73, § 201, p. 462; R.S.1913, § 6529; C.S.1922, § 6057; C.S.1929, § 77-2009; Laws 1937, c. 167, § 34, p. 662; Laws 1939, c. 98, § 34, p. 449; Laws 1941, c. 157, § 34, p. 633; C.S.Supp.,1941, § 77-2009; R.S.1943, § 77-1809; Laws 1971, LB 26, § 1;    Laws 1979, LB 84, § 2;    Laws 1981, LB 167, § 44;    Laws 2013, LB97, § 22.    


Cross References

Annotations

77-1810. Real property taxes; delinquent tax sales; purchase by political subdivisions authorized.

(1) Except as otherwise provided in subsection (2) of this section, whenever any real property subject to sale for taxes is within the corporate limits of any city, village, school district, drainage district, or irrigation district, it shall have the right and power through its governing board or body to purchase such real property for the use and benefit and in the name of the city, village, school district, drainage district, or irrigation district as the case may be. The treasurer of the city, village, school district, drainage district, or irrigation district may assign the certificate of purchase by endorsement of his or her name on the back thereof when directed so to do by written order of the governing board.

(2) No such sale shall be made to any city, village, school district, drainage district, or irrigation district by the county treasurer (a) when the real property has been previously sold to the county, but in any such case, the city, village, school district, drainage district, or irrigation district may purchase the tax certificate held by the county or (b) if a land bank has given an automatically accepted bid on such real property pursuant to section 18-3417.

Source:Laws 1903, c. 73, § 202, p. 462; R.S.1913, § 6530; Laws 1917, c. 118, § 1, p. 292; C.S.1922, § 6058; C.S.1929, § 77-2010; Laws 1937, c. 167, § 35, p. 662; Laws 1939, c. 98, § 35, p. 450; Laws 1941, c. 159, § 1, p. 641; Laws 1941, c. 157, § 35, p. 633; C.S.Supp.,1941, § 77-2010; R.S.1943, § 77-1810; Laws 1992, LB 1063, § 145; Laws 1992, Second Spec. Sess., LB 1, § 118;    Laws 2013, LB97, § 23;    Laws 2020, LB424, § 21.    


Annotations

77-1811. Real property taxes; delinquent tax sales; purchase by political subdivisions; accounting by county treasurer.

Whenever real estate is purchased under section 77-1809 or 77-1810, the county treasurer shall not be required to account to the State Treasurer or to any person for the amount of taxes due, until the county board, city, village, school district, drainage district or irrigation district authorities have sold the certificate or certificates of purchase of such real estate, or until, by redemption or foreclosure proceedings, he shall have received the money thereon.

Source:Laws 1903, c. 73, § 203, p. 462; R.S.1913, § 6531; C.S.1922, § 6059; C.S.1929, § 77-2011; Laws 1937, c. 167, § 36, p. 663; Laws 1939, c. 98, § 36, p. 451; Laws 1941, c. 157, § 36, p. 634; C.S.Supp.,1941, § 77-2011; R.S.1943, § 77-1811.


Annotations

77-1812. Real property taxes; county treasurer; record.

The county treasurer shall keep a record showing in separate columns the number and date of each certificate of sale, the name of the owners or owner if known, the description of the real property, the name of the purchaser, the total amount of taxes and costs for which sold, the amount of subsequent taxes paid by the purchaser and date of payment, to whom assigned, and the amount paid therefor, name of person redeeming, date of redemption, total amount paid for redemption, name of person to whom conveyed, and date of deed.

Source:Laws 1903, c. 73, § 204, p. 463; R.S.1913, § 6532; C.S.1922, § 6060; C.S.1929, § 77-2012; R.S.1943, § 77-1812; Laws 1992, LB 1063, § 146; Laws 1992, Second Spec. Sess., LB 1, § 119;    Laws 2013, LB341, § 3.    


77-1813. Real property taxes; annual tax sale; return of county treasurer; when made; certified copy as evidence.

On or before the first Monday of April following the sale of the real property, the county treasurer shall file in the office of the county clerk a return thereon as the same shall appear upon the county treasurer's record, and such return, duly certified, shall be evidence of the regularity of the proceedings.

Source:Laws 1903, c. 73, § 205, p. 463; R.S.1913, § 6533; C.S.1922, § 6061; Laws 1933, c. 136, § 7, p. 520; R.S.1943, § 77-1813; Laws 1987, LB 215, § 1;    Laws 2013, LB341, § 4.    


Annotations

77-1814. Real property taxes; private tax sale; issuance of certificates.

After the sale is closed and the treasurer has made his or her return thereof to the county clerk as provided in section 77-1813, if any real property remains unsold for want of bidders therefor, the county treasurer is authorized and required to sell the same at private sale at his or her office to any person who will pay the amount of taxes, penalty, and costs thereof and to make out duplicate certificates of sale and deliver one to the purchaser and the other to the county clerk. Such certificate shall contain the additional statement that such real property has been offered at public sale but not sold for want of bidders and shall also contain the words "sold for taxes at private sale". The treasurer is further authorized and required to sell all real property in the county on which taxes remain unpaid and delinquent for any previous year or years.

Source:Laws 1903, c. 73, § 206, p. 463; R.S.1913, § 6534; C.S.1922, § 6062; C.S.1929, § 77-2014; Laws 1937, c. 167, § 13, p. 643; Laws 1939, c. 98, § 13, p. 429; Laws 1941, c. 157, § 13, p. 614; C.S.Supp.,1941, § 77-2014; R.S.1943, § 77-1814; Laws 1992, LB 1063, § 147; Laws 1992, Second Spec. Sess., LB 1, § 120.    


Annotations

77-1815. Real property taxes; county treasurer; attendance at tax sale; penalty.

If any treasurer fails to attend any sale of real property as required by sections 77-1801 to 77-1814, either in person or by deputy, he or she shall be liable to a fine of not less than fifty nor more than three hundred dollars to be recovered by an action in the district court in the name of the county against the treasurer and the person issuing the treasurer's bond.

Source:Laws 1903, c. 73, § 207, p. 464; R.S.1913, § 6535; C.S.1922, § 6063; C.S.1929, § 77-2015; R.S.1943, § 77-1815; Laws 1992, LB 1063, § 148; Laws 1992, Second Spec. Sess., LB 1, § 121.    


77-1816. Real property taxes; fraudulent sales; penalty.

If any treasurer or deputy shall sell or assist in selling any real property, knowing the same to be not subject to taxation, or that the taxes for which the same is sold have been paid, or shall knowingly and willfully sell, or assist in selling, any real property for the payment of taxes to defraud the owner of such real property, or shall knowingly execute a deed for property so sold, he shall be deemed guilty of a Class I misdemeanor and shall be liable to pay the injured party all damages sustained by such wrongful act, and all such sales shall be void.

Source:Laws 1903, c. 73, § 207, p. 464; R.S.1913, § 6535; C.S.1922, § 6063; C.S.1929, § 77-2015; R.S.1943, § 77-1816; Laws 1977, LB 39, § 227.    


77-1817. Real property tax sales; prohibition against purchase by county treasurer; penalty.

If any county treasurer shall, either directly or indirectly, be concerned in the purchase of any real property sold for the payment of taxes, he shall be liable to a penalty of not more than one thousand dollars to be recovered in an action in the district court brought in the name of the county against such treasurer and his bondsmen, and all such sales shall be void.

Source:Laws 1903, c. 73, § 208, p. 464; R.S.1913, § 6536; C.S.1922, § 6064; C.S.1929, § 77-2016; R.S.1943, § 77-1817.


77-1818. Real property taxes; certificate of purchase; lien of purchaser; subsequent taxes; purchaser provide notice; contents; prove service of notice; administrative fee.

(1) The purchaser of any real property sold by the county treasurer for taxes shall be entitled to a certificate in writing, describing the real property so purchased, the sum paid, and the time when the purchaser will be entitled to a deed, which certificate shall be signed by the county treasurer in his or her official capacity and shall be presumptive evidence of the regularity of all prior proceedings. Each tax lien shall be shown on a single certificate. The purchaser acquires a perpetual lien of the tax on the real property, and if after the taxes become delinquent he or she subsequently pays any taxes levied on the property, whether levied for any year or years previous or subsequent to such sale, he or she shall have the same lien for them and may add them to the amount paid by him or her in the purchase.

(2) Upon issuance of the certificate, the purchaser shall notify, by personal service, the property owner of the real property that was sold for taxes at the address listed for such owner in the records of the county assessor. The notice shall (a) state that a certificate has been issued, (b) include a brief description of the property owner's legal rights to redeem the real property, (c) identify the real property by the street address listed in the records of the county assessor, (d) include the total amount of taxes, interest, and costs for which the property was sold and a recitation that interest and fees may accrue, and (e) include a prominent warning that failure to act may result in forfeiture of the property after three years. The purchaser shall prove such service of notice by affidavit, and such affidavit shall be filed with the application for the tax deed pursuant to section 77-1837. An administrative fee shall be allowed for any service of notice under this subsection. The administrative fee shall be equal to the greater of one hundred dollars or the actual cost incurred by the purchaser for such service of notice. The amount of such fee shall be noted by the county treasurer in the record opposite the real property described in the notice and shall be collected by the county treasurer in case of redemption for the benefit of the holder of the certificate. The purchaser shall notify the county treasurer of the amount of such fee within thirty days after completion of the service of notice.

Source:Laws 1903, c. 73, § 209, p. 464; R.S.1913, § 6537; C.S.1922, § 6065; C.S.1929, § 77-2017; R.S.1943, § 77-1818; Laws 1992, LB 1063, § 149; Laws 1992, Second Spec. Sess., LB 1, § 122;    Laws 2013, LB341, § 5;    Laws 2023, LB727, § 53.    
Operative Date: September 2, 2023


Annotations

77-1819. Real property taxes; certificate of purchase; form.

The certificate shall be substantially in the following form: COUNTY TREASURER'S CERTIFICATE OF TAX SALE. State of Nebraska .............. County, ss: I, .............. treasurer of the county of .............., in the State of Nebraska, do hereby certify that the following described real estate in such county and state: (describe the same) was, on the .......... day of .......... 20...., duly sold by me in the manner provided by law for the delinquent taxes for the years .....(list years)..... thereon, amounting to .......... dollars, including interest thereon, and costs allowed by law, to ........... for the sum of .......... dollars. I further certify that unless redemption is made of such real estate in the manner provided by law, the .........., heirs or assigns will be entitled to a deed therefor on and after the .......... day of .......... A.D. 20...., on surrender of this certificate, and compliance with the provisions required by law.

In witness whereof, I have hereunto set my hand this .......... day of .......... A.D. 20.... .

(L.S.) ....................., Treasurer.

Source:Laws 1903, c. 73, § 209, p. 464; R.S.1913, § 6537; C.S.1922, § 6065; C.S.1929, § 77-2017; R.S.1943, § 77-1819; Laws 2004, LB 813, § 32.    


Annotations

77-1820. Repealed. Laws 2013, LB341, § 22.

77-1821. Real property taxes; tax receipt; entries.

The treasurer shall make out a tax receipt for the taxes on the real estate mentioned in the certificate, the same as in other cases, and shall write thereon sold for taxes at public sale or sold for taxes at private sale, as the case may be.

Source:Laws 1903, c. 73, § 209, p. 464; R.S.1913, § 6537; C.S.1922, § 6065; C.S.1929, § 77-2017; R.S.1943, § 77-1821; Laws 2012, LB851, § 5.    


77-1822. Real property taxes; certificate of purchase; assignable; fee.

The certificate of purchase shall be assignable by endorsement, and an assignment thereof shall vest in the assignee, or his or her legal representatives, all the right and title of the original purchaser. The statement in the treasurer's deed of the fact of the assignment shall be presumptive evidence thereof. An assignment shall be recorded by the county treasurer who shall collect a reassignment fee of twenty dollars and issue a new certificate to the assignee. The fee is not refundable upon redemption.

Source:Laws 1903, c. 73, § 210, p. 465; R.S.1913, § 6538; C.S.1922, § 6066; C.S.1929, § 77-2018; Laws 1937, c. 167, § 37, p. 663; Laws 1939, c. 98, § 37, p. 451; Laws 1941, c. 157, § 37, p. 634; C.S.Supp.,1941, § 77-2018; R.S.1943, § 77-1822; Laws 2002, LB 994, § 24;    Laws 2013, LB341, § 6.    


Annotations

77-1823. Real property taxes; tax certificates and deeds; fees of county treasurer; entry on record of issuance of deed.

The county treasurer shall charge a twenty-dollar issuance fee for each deed or certificate made by him or her for a sale of real property for taxes together with the fee of the notary public or other officer acknowledging the deed. The issuance fee shall not be required if the tax sale certificate is issued in the name of the county, but the issuance fee is due from the purchaser when the county assigns the certificate to another person. The fee is not refundable upon redemption. Whenever the county treasurer makes a deed to any real property sold for taxes, he or she shall enter an account thereof in the record opposite the description of the real property conveyed.

Source:Laws 1903, c. 73, § 211, p. 466; R.S.1913, § 6539; C.S.1922, § 6067; C.S.1929, § 77-2019; R.S.1943, § 77-1823; Laws 1989, LB 324, § 2;    Laws 1992, LB 1063, § 151; Laws 1992, Second Spec. Sess., LB 1, § 124;    Laws 1995, LB 202, § 3;    Laws 2013, LB341, § 7.    


77-1824. Real property taxes; redemption from sale; when and how made.

The owner or occupant of any real property sold for taxes or any person having a lien thereupon or interest therein may redeem the same. The right of redemption expires when the purchaser files an application for tax deed with the county treasurer. A redemption shall not be accepted by the county treasurer, or considered valid, unless received prior to the close of business on the day the application for the tax deed is received by the county treasurer. Redemption shall be accomplished by paying the county treasurer for the use of such purchaser or his or her heirs or assigns the sum mentioned in his or her certificate, with interest thereon at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date of purchase to date of redemption, together with all other taxes subsequently paid, whether for any year or years previous or subsequent to the sale, and interest thereon at the same rate from date of such payment to date of redemption. The amount due for redemption shall include the issuance fee charged pursuant to section 77-1823 and the administrative fee charged pursuant to subsection (2) of section 77-1818.

Source:Laws 1903, c. 73, § 212, p. 466; Laws 1905, c. 114, § 1, p. 518; R.S.1913, § 6540; C.S.1922, § 6068; Laws 1923, c. 105, § 1, p. 261; Laws 1925, c. 168, § 1, p. 441; C.S.1929, § 77-2020; Laws 1933, c. 136, § 8, p. 520; Laws 1937, c. 167, § 28, p. 658; Laws 1939, c. 98, § 28, p. 445; Laws 1941, c. 157, § 28, p. 629; C.S.Supp.,1941, § 77-2020; R.S.1943, § 77-1824; Laws 1969, c. 646, § 3, p. 2564; Laws 1979, LB 84, § 3;    Laws 1981, LB 167, § 45;    Laws 1992, LB 1063, § 152; Laws 1992, Second Spec. Sess., LB 1, § 125;    Laws 2012, LB370, § 1;    Laws 2013, LB341, § 8;    Laws 2023, LB727, § 54.    
Operative Date: September 2, 2023


Annotations

77-1824.01. Repealed. Laws 2019, LB463, § 10.

77-1825. Real property taxes; redemption from sale; entry on record; fee; notice to and payment of redemption money to certificate holder.

The county treasurer shall enter a memorandum of redemption of real property in the record and shall give a receipt therefor to the person redeeming the same, for which the county treasurer may charge a fee of two dollars. The county treasurer shall send written notice of redemption to the holder of the county treasurer's certificate of tax sale by first-class mail if the post office address of the holder of the certificate is filed in the office of the county treasurer or by electronic means if previously agreed to by the parties. The redemption money shall be paid to or upon the order of the holder on return of the certificate.

Source:Laws 1903, c. 73, § 212, p. 466; Laws 1905, c. 114, § 1, p. 518; R.S.1913, § 6540; C.S.1922, § 6068; Laws 1923, c. 105, § 1, p. 261; Laws 1925, c. 168, § 1, p. 441; C.S.1929, § 77-2020; Laws 1933, c. 136, § 8, p. 520; Laws 1937, c. 167, § 28, p. 658; Laws 1939, c. 98, § 28, p. 445; Laws 1941, c. 157, § 28, p. 629; C.S.Supp.,1941, § 77-2020; R.S.1943, § 77-1825; Laws 1967, c. 503, § 2, p. 1700; Laws 1989, LB 324, § 3;    Laws 2012, LB370, § 3;    Laws 2013, LB341, § 10.    


77-1826. Real property taxes; redemption from sale; minors; time permitted.

The real property of minors, or any interest they may have in any real property sold for taxes, may be redeemed at any time during the time of redemption above described or at any time before such minor becomes of age and during two years thereafter.

Source:Laws 1903, c. 73, § 212, p. 466; Laws 1905, c. 114, § 1, p. 518; R.S.1913, § 6540; C.S.1922, § 6068; Laws 1923, c. 105, § 1, p. 261; Laws 1925, c. 168, § 1, p. 441; C.S.1929, § 77-2020; Laws 1933, c. 136, § 8, p. 520; Laws 1937, c. 167, § 28, p. 658; Laws 1939, c. 98, § 28, p. 445; Laws 1941, c. 157, § 28, p. 629; C.S.Supp.,1941, § 77-2020; R.S.1943, § 77-1826; Laws 1992, LB 1063, § 153; Laws 1992, Second Spec. Sess., LB 1, § 126.    


77-1827. Real property taxes; redemption; persons with intellectual disability or mental disorder; time permitted.

The real property of persons with an intellectual disability or a mental disorder so sold, or any interest they may have in real property sold for taxes, may be redeemed at any time within five years after such sale.

Source:Laws 1903, c. 73, § 212, p. 466; Laws 1905, c. 114, § 1, p. 518; R.S.1913, § 6540; C.S.1922, § 6068; Laws 1923, c. 105, § 1, p. 261; Laws 1925, c. 168, § 1, p. 441; C.S.1929, § 77-2020; Laws 1933, c. 136, § 8, p. 520; Laws 1937, c. 167, § 28, p. 658; Laws 1939, c. 98, § 28, p. 445; Laws 1941, c. 157, § 28, p. 629; C.S.Supp.,1941, § 77-2020; R.S.1943, § 77-1827; Laws 1986, LB 1177, § 34;    Laws 1992, LB 1063, § 154; Laws 1992, Second Spec. Sess., LB 1, § 127;    Laws 2013, LB23, § 42.    


Annotations

77-1828. Real property taxes; redemption from sale; for whom made; reimbursement.

Any redemption made shall inure to the benefit of the person having the legal or equitable title to the property redeemed, subject to the right of the person making the same to be reimbursed by the person benefited.

Source:Laws 1903, c. 73, § 212, p. 466; Laws 1905, c. 114, § 1, p. 518; R.S.1913, § 6540; C.S.1922, § 6068; Laws 1923, c. 105, § 1, p. 261; Laws 1925, c. 168, § 1, p. 441; C.S.1929, § 77-2020; Laws 1933, c. 136, § 8, p. 520; Laws 1937, c. 167, § 28, p. 658; Laws 1939, c. 98, § 28, p. 445; Laws 1941, c. 157, § 28, p. 629; C.S.Supp.,1941, § 77-2020; R.S.1943, § 77-1828.


Annotations

77-1829. Real property taxes; redemption from sale; extension of time by second sale.

If any purchaser of real property sold for taxes under sections 77-1801 to 77-1860 suffers the same to be again sold for taxes before the expiration of the last day of the second annual sale thereafter, such purchaser shall not be entitled to a deed for such real property until the expiration of a like term from the date of the second sale, during which time the real property shall be subject to redemption upon the terms and conditions prescribed by law.

Source:Laws 1903, c. 73, § 213, p. 466; R.S.1913, § 6541; C.S.1922, § 6069; Laws 1925, c. 168, § 2, p. 442; C.S.1929, § 77-2021; Laws 1937, c. 167, § 29, p. 659; Laws 1939, c. 98, § 29, p. 446; Laws 1941, c. 157, § 29, p. 629; C.S.Supp.,1941, § 77-2021; R.S.1943, § 77-1829; Laws 1992, LB 1063, § 155; Laws 1992, Second Spec. Sess., LB 1, § 128.    


77-1830. Real property taxes; redemption from sale; part interest in land; how made.

Any person claiming an undivided part of any real property sold for taxes may redeem the property on paying such proportion of the purchase money, interest, costs, and subsequent taxes as he or she claims of the real property sold. The owner or occupant of a divided part of any real property sold for taxes or any person having a lien thereon or interest therein may redeem the property by paying the taxes separately assessed against such divided part, together with interest, costs, and subsequent taxes. If no taxes have been separately assessed against such divided part, then it shall be the duty of the county assessor, upon demand of the owner or lienholder or upon the demand of the county treasurer, to assess the divided part and to certify the assessment to the county treasurer. The owner or lienholder of the divided part may thereupon redeem the divided part upon the payment to the county treasurer of such sum so assessed, together with interest thereon, costs, and subsequent taxes. The county treasurer shall make a proper entry of such partial redemption in his or her record, and no deed thereafter given shall convey a greater interest than that remaining unredeemed.

Source:Laws 1903, c. 73, § 213, p. 466; R.S.1913, § 6541; C.S.1922, § 6069; Laws 1925, c. 168, § 2, p. 442; C.S.1929, § 77-2021; Laws 1937, c. 167, § 29, p. 659; Laws 1939, c. 98, § 29, p. 446; Laws 1941, c. 157, § 29, p. 629; C.S.Supp.,1941, § 77-2021; R.S.1943, § 77-1830; Laws 1992, LB 1063, § 156; Laws 1992, Second Spec. Sess., LB 1, § 129;    Laws 2013, LB341, § 11.    


Annotations

77-1831. Real property taxes; issuance of treasurer's tax deed; notice given by purchaser; contents.

No purchaser at any sale for taxes or his or her assignees shall be entitled to a tax deed from the county treasurer for the real property so purchased unless such purchaser or assignee, at least three months before applying for the tax deed, serves or causes to be served a notice that states, after the expiration of at least three months from the date of service of such notice, the tax deed will be applied for.

The notice shall include:

(1) The following statement in sixteen-point type: UNLESS YOU ACT YOU WILL LOSE THIS PROPERTY;

(2) The date when the purchaser purchased the real property sold by the county for taxes;

(3) The description of the real property;

(4) In whose name the real property was assessed;

(5) The amount of taxes represented by the tax sale certificate, the year the taxes were levied or assessed, and a statement that subsequent taxes may have been paid and interest may have accrued as of the date the notice is signed by the purchaser; and

(6) The following statements:

(a) That the issuance of a tax deed is subject to the right of redemption under sections 77-1824 to 77-1830;

(b) The right of redemption requires payment to the county treasurer, for the use of such purchaser, or his or her heirs or assigns, the amount of taxes represented by the tax sale certificate for the year the taxes were levied or assessed and any subsequent taxes paid and interest accrued as of the date payment is made to the county treasurer; and

(c) The right of redemption expires at the close of business on the date of application for the tax deed, and a deed may be applied for after the expiration of three months from the date of service of this notice.

Source:Laws 1903, c. 73, § 214, p. 467; Laws 1905, c. 115, § 1, p. 520; R.S.1913, § 6542; Laws 1921, c. 143, § 1, p. 610; C.S.1922, § 6070; C.S.1929, § 77-2022; R.S.1943, § 77-1831; Laws 1992, LB 1063, § 157; Laws 1992, Second Spec. Sess., LB 1, § 130;    Laws 2012, LB370, § 4;    Laws 2013, LB341, § 12;    Laws 2019, LB463, § 2.    


Annotations

77-1832. Real property taxes; issuance of treasurer's tax deed; service of notice; upon whom made.

(1) Service of the notice provided by section 77-1831 shall be made by:

(a) Personal or residence service as described in section 25-505.01 upon a person in actual possession or occupancy of the real property and upon the person in whose name the title to the real property appears of record who can be found in this state. If a person in actual possession or occupancy of the real property cannot be served by personal or residence service, service of the notice shall be made upon such person by certified mail service or designated delivery service as described in section 25-505.01, and the notice shall be sent to the address of the property. If the person in whose name the title to the real property appears of record cannot be found in this state or if such person cannot be served by personal or residence service, service of the notice shall be made upon such person by certified mail service or designated delivery service as described in section 25-505.01, and the notice shall be sent to the name and address to which the property tax statement was mailed; and

(b) Certified mail or designated delivery service as described in section 25-505.01 upon every encumbrancer of record found by the title search required in section 77-1833. The notice shall be sent to the encumbrancer's name and address appearing of record as shown in the encumbrance filed with the register of deeds.

(2) Personal or residence service shall be made by the county sheriff of the county where service is made or by a person authorized by section 25-507. The sheriff or other person serving the notice shall be entitled to the statutory fee prescribed in section 33-117.

Source:Laws 1903, c. 73, § 214, p. 467; Laws 1905, c. 115, § 1, p. 520; R.S.1913, § 6542; Laws 1921, c. 143, § 1, p. 610; C.S.1922, § 6070; C.S.1929, § 77-2022; R.S.1943, § 77-1832; Laws 1987, LB 93, § 20;    Laws 1992, LB 1063, § 158; Laws 1992, Second Spec. Sess., LB 1, § 131;    Laws 2003, LB 319, § 1;    Laws 2012, LB370, § 5;    Laws 2013, LB341, § 13;    Laws 2017, LB217, § 7;    Laws 2019, LB463, § 3.    


Annotations

77-1833. Real property taxes; issuance of treasurer's tax deed; proof of service; fees.

The service of notice provided by section 77-1832 shall be proved by affidavit. The purchaser or assignee shall also affirm in the affidavit that a title search was conducted by a registered abstracter to determine those persons entitled to notice pursuant to such section. If personal or residence service is used, the receipt or returns provided by the person authorized in subsection (2) of section 77-1832 to carry out such service shall be filed with and accompany the affidavit. If certified mail or designated delivery service is used, the certified mail return receipt or a copy of the signed delivery receipt shall be filed with and accompany the affidavit. The affidavit, a copy of the notice, and a copy of such title search shall be filed with the application for the tax deed pursuant to section 77-1837. For each service of such notice, a fee of one dollar shall be allowed. The amount of such fees shall be noted by the county treasurer in the record opposite the real property described in the notice and shall be collected by the county treasurer in case of redemption for the benefit of the holder of the certificate.

Source:Laws 1903, c. 73, § 214, p. 467; Laws 1905, c. 115, § 1, p. 520; R.S.1913, § 6542; Laws 1921, c. 143, § 1, p. 610; C.S.1922, § 6070; C.S.1929, § 77-2022; R.S.1943, § 77-1833; Laws 1969, c. 645, § 9, p. 2561; Laws 1992, LB 1063, § 159; Laws 1992, Second Spec. Sess., LB 1, § 132;    Laws 2003, LB 319, § 2;    Laws 2012, LB370, § 6;    Laws 2013, LB341, § 14;    Laws 2017, LB217, § 8;    Laws 2019, LB463, § 4.    


Annotations

77-1834. Real property taxes; issuance of treasurer's tax deed; notice to owner or encumbrancer by publication.

If any person or encumbrancer who is entitled to notice under subsection (1) of section 77-1832 cannot, upon diligent inquiry, be found, the purchaser or his or her assignee shall publish the notice in a newspaper of general circulation in the county which has been designated by the county board in the year publication is required under this section.

Source:Laws 1903, c. 73, § 215, p. 467; R.S.1913, § 6543; C.S.1922, § 6071; C.S.1929, § 77-2023; R.S.1943, § 77-1834; Laws 1992, LB 1063, § 160; Laws 1992, Second Spec. Sess., LB 1, § 133;    Laws 2003, LB 319, § 3;    Laws 2008, LB893, § 1;    Laws 2012, LB370, § 7;    Laws 2019, LB463, § 5.    


Annotations

77-1835. Real property taxes; issuance of treasurer's tax deed; manner and proof of publication; false affidavit; penalty.

The notice provided by section 77-1834 shall be published three consecutive weeks, the last time not less than three months before applying for the tax deed. Proof of publication shall be made by filing in the county treasurer's office the affidavit of the publisher, manager, or other employee of such newspaper, affirming that to his or her personal knowledge, the notice was published for the time and in the manner provided in this section, setting out a copy of the notice and the date upon which the same was published. The purchaser or assignee shall also file in the county treasurer's office an affidavit affirming that a title search was conducted by a registered abstracter to determine those persons entitled to notice pursuant to section 77-1832 and a copy of such title search. The affidavits, the copy of the notice, and the copy of the title search shall be filed with the application for the tax deed pursuant to section 77-1837. Such documents shall be preserved as a part of the files of the office. Any publisher, manager, or employee of a newspaper knowingly or negligently making a false affidavit regarding any such matters shall be guilty of perjury and shall be punished accordingly. Section 25-520.01 does not apply to publication of notice pursuant to section 77-1834.

Source:Laws 1903, c. 73, § 215, p. 467; R.S.1913, § 6543; C.S.1922, § 6071; C.S.1929, § 77-2023; R.S.1943, § 77-1835; Laws 2012, LB370, § 8;    Laws 2019, LB463, § 6.    


Cross References

Annotations

77-1836. Real property taxes; issuance of treasurer's tax deed; fee.

If any person is compelled to publish notice in a newspaper as provided in sections 77-1834 and 77-1835, then before any person who may have a right to redeem such real property from such sale is permitted to redeem, he or she shall pay the officer or person who by law is authorized to receive such redemption money the amount paid for publishing such notice, for the use of the person compelled to publish the notice. The fee for such publication shall not exceed five dollars for each item of real property contained in such notice. The cost of making such publication shall be noted by the county treasurer in the record opposite the real property described in the notice.

Source:Laws 1903, c. 73, § 216, p. 468; R.S.1913, § 6544; C.S.1922, § 6072; C.S.1929, § 77-2024; R.S.1943, § 77-1836; Laws 1992, LB 1063, § 161; Laws 1992, Second Spec. Sess., LB 1, § 134;    Laws 2002, LB 994, § 25;    Laws 2013, LB341, § 15.    


Annotations

77-1837. Real property taxes; issuance of treasurer's tax deed; when; proceed by foreclosure; when.

(1) At any time within nine months after the expiration of three years after the date of sale of any real estate for taxes or special assessments, if such real estate has not been redeemed and the requirements of subsection (2) of this section have been met, the purchaser or his or her assignee may apply to the county treasurer for a tax deed for the real estate described in such purchaser's or assignee's tax sale certificate. The county treasurer shall execute and deliver a deed of conveyance for the real estate described in such tax sale certificate if he or she has received the following:

(a) The tax sale certificate;

(b) The issuance fee for the tax deed and the fee of the notary public or other officer acknowledging the tax deed, as required under section 77-1823;

(c) The affidavit proving personal service of the notice required in subsection (2) of section 77-1818;

(d) For any notice provided pursuant to section 77-1832, the affidavit proving service of notice, the copy of the notice, and the copy of the title search required under section 77-1833; and

(e) For any notice provided by publication pursuant to section 77-1834, the affidavit of the publisher, manager, or other employee of the newspaper, the copy of the notice, the affidavit of the purchaser or assignee, and the copy of the title search required under section 77-1835.

(2) The purchaser or his or her assignee may apply for a tax deed under this section if one hundred ten percent of the assessed value of the real estate described in the tax sale certificate, less the amount that would be needed to redeem such real estate, is twenty-five thousand dollars or less. If such requirement is not met, the purchaser or his or her assignee shall foreclose the lien represented by the tax sale certificate pursuant to section 77-1902.

(3) The failure of the county treasurer to issue the deed of conveyance if requested within the timeframe provided in subsection (1) of this section shall not impair the validity of such deed if there has otherwise been compliance with sections 77-1801 to 77-1863.

Source:Laws 1903, c. 73, § 217, p. 468; R.S.1913, § 6545; C.S.1922, § 6073; C.S.1929, § 77-2025; R.S.1943, § 77-1837; Laws 1975, LB 78, § 1;    Laws 1987, LB 215, § 2;    Laws 2001, LB 118, § 1;    Laws 2012, LB370, § 9;    Laws 2013, LB341, § 16;    Laws 2019, LB463, § 7;    Laws 2023, LB727, § 55.    
Operative Date: September 2, 2023


Annotations

77-1837.01. Real property taxes; tax deed proceedings; changes in law not retroactive; exceptions.

(1) Except as otherwise provided in subsections (2) and (3) of this section, the laws in effect on the date of the issuance of a tax sale certificate govern all matters related to tax deed proceedings, including noticing and application, and foreclosure proceedings. Changes in law shall not apply retroactively with regard to the tax sale certificates previously issued.

(2) Tax sale certificates sold and issued between January 1, 2010, and December 31, 2016, shall be governed by the laws and statutes that were in effect on December 31, 2009, with regard to all matters relating to tax deed proceedings, including noticing and application, and foreclosure proceedings.

(3) Tax sale certificates sold and issued between January 1, 2017, and September 7, 2019, shall be governed by the laws and statutes that are in effect on September 7, 2019, with regard to all matters relating to tax deed proceedings, including noticing and application, and foreclosure proceedings.

Source:Laws 2012, LB370, § 10;    Laws 2014, LB851, § 10;    Laws 2017, LB217, § 9;    Laws 2019, LB463, § 8.    


77-1838. Real property taxes; issuance of treasurer's tax deed; execution, acknowledgment, and recording; effect; lien for special assessments; pay surplus to previous owner.

(1) The deed made by the county treasurer shall be under the official seal of office and acknowledged by the county treasurer before some officer authorized to take the acknowledgment of deeds. When so executed and acknowledged, it shall be recorded in the same manner as other conveyances of real estate. When recorded it shall vest in the grantee and his or her heirs and assigns the title of the property described in the deed, subject to any lien on real estate for special assessments levied by a sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer.

(2) Within thirty days after recording of the deed, the grantee shall pay the surplus to the previous owner of the property described in the deed. For purposes of this subsection, the surplus shall be calculated as follows:

(a) If the property has been sold since recording of the deed, the surplus shall be equal to the amount received from such sale, minus (i) the amount that would have been needed to redeem such property, (ii) the amount needed to pay all encumbrances on such property, and (iii) an administrative fee of five hundred dollars or reasonable attorney's fees in the event of judicial foreclosure, which may be retained by the grantee to offset the costs incurred in obtaining the deed; or

(b) If the property has not been sold since recording of the deed, the surplus shall be equal to the assessed value of such property, minus (i) the amount that would have been needed to redeem such property, (ii) the amount needed to pay all encumbrances on such property, and (iii) an administrative fee of five hundred dollars or reasonable attorney's fees in the event of judicial foreclosure, which may be retained by the grantee to offset the costs incurred in obtaining the deed.

Source:Laws 1903, c. 73, § 218, p. 469; R.S.1913, § 6546; C.S.1922, § 6074; C.S.1929, § 77-2026; R.S.1943, § 77-1838; Laws 2015, LB277, § 1;    Laws 2023, LB727, § 56.    
Operative Date: September 2, 2023


Annotations

77-1839. Real property taxes; issuance of tax deed by county treasurer; form.

The conveyance provided by section 77-1838 shall be substantially in the following form:

Whereas, at a .............. sale of real estate for the nonpayment of taxes, made in the county of ............. on the ......... day of .............. A.D. 20...., the following described real estate situated in such county: (here describe real estate conveyed) was sold to .............. for the delinquent taxes of the year ........ and, Whereas, the same not having been redeemed from such sale, and it appearing that the holder of the certificate of purchase of such real estate has complied with the laws of the State of Nebraska, necessary to entitle .............. to a deed of such real estate, Now, Therefor, I, county treasurer of the county of ............., in consideration of the premises, and by virtue of the statutes of the State of Nebraska in such cases made and provided, do hereby grant and convey unto .............., his or her heirs and assigns, forever, the real estate hereinbefore described, subject, however, to any redemption provided by law.

Given under my hand and official seal this ............ day of .............. A.D. 20.... .

....................... County Treasurer.

State of Nebraska .............. County, ss.

On this .......... day of ............... A.D. 20...., before me a .............. in and for such county, personally appeared the above named .............. treasurer of such county, personally known to me to be the treasurer of such county, at the date of the execution of the foregoing conveyance, and to be the identical person whose name is affixed to, and who executed the conveyance as treasurer of such county, and acknowledged the execution of the same to be his or her voluntary act and deed as treasurer of such county, for the purposes therein expressed.

Witness my hand and official seal the day and year last above written.

..................................................

..................................................

Source:Laws 1903, c. 73, § 218, p. 469; R.S.1913, § 6546; C.S.1922, § 6074; C.S.1929, § 77-2026; R.S.1943, § 77-1839; Laws 2004, LB 813, § 33.    


Annotations

77-1840. Real property taxes; issuance of treasurer's tax deed; recording of proceedings.

The register of deeds shall record the evidence upon which the tax deeds are issued, and be entitled to the same fee therefor that may be allowed by law for recording deeds, and the county treasurer shall deliver the same to the register of deeds for that purpose.

Source:Laws 1903, c. 73, § 219, p. 470; R.S.1913, § 6547; C.S.1922, § 6075; C.S.1929, § 77-2027; R.S.1943, § 77-1840.


Cross References

Annotations

77-1841. Real property taxes; issuance of treasurer's tax deed; loss of tax sale certificate; procedure.

In case of the loss of any certificate, on being fully satisfied thereof by due proof, and upon bond being given to the State of Nebraska in a sum equal to the value of the property conveyed, as in cases of lost notes or other commercial paper, the county treasurer may execute and deliver the proper conveyance, and file such proof and bond with the register of deeds to be recorded as aforesaid.

Source:Laws 1903, c. 73, § 219, p. 470; R.S.1913, § 6547; C.S.1922, § 6075; C.S.1929, § 77-2027; R.S.1943, § 77-1841.


77-1842. Real property taxes; treasurer's tax deed; presumptive evidence of certain facts; lien for special assessments.

Deeds made by the county treasurer shall be presumptive evidence in all courts of this state, in all controversies and suits in relation to the rights of the purchaser and his or her heirs or assigns to the real property thereby conveyed, of the following facts: (1) That the real property conveyed was subject to taxation for the year or years stated in the deed; (2) that the taxes were not paid at any time before the sale; (3) that the real property conveyed had not been redeemed from the sale at the date of the deed; (4) that the property had been listed and assessed; (5) that the taxes were levied according to law; (6) that the property was sold for taxes as stated in the deed; (7) that the notice had been served or due publication made as required in sections 77-1831 to 77-1835 before the time of redemption had expired; (8) that the manner in which the listing, assessment, levy, and sale were conducted was in all respects as the law directed; (9) that the grantee named in the deed was the purchaser or his or her assignee; and (10) that all the prerequisites of the law were complied with by all the officers who had or whose duty it was to have had any part or action in any transaction relating to or affecting the title conveyed or purporting to be conveyed by the deed, from the listing and valuation of the property up to the execution of the deed, both inclusive, and that all things whatsoever required by law to make a good and valid sale and to vest the title in the purchaser, subject to any lien on real estate for special assessments levied by a sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, were done.

Source:Laws 1903, c. 73, § 220, p. 470; R.S.1913, § 6548; C.S.1922, § 6076; C.S.1929, § 77-2028; R.S.1943, § 77-1842; Laws 1992, LB 1063, § 162; Laws 1992, Second Spec. Sess., LB 1, § 135;    Laws 2015, LB277, § 2.    


Annotations

77-1843. Real property taxes; treasurer's tax deed; proof required to defeat tax title.

In all controversies and suits involving the title to real property claimed and held under and by virtue of a deed made substantially by the treasurer in the manner provided by sections 77-1831 to 77-1842, the person claiming the title adverse to the title conveyed by such deed shall be required to prove, in order to defeat the title, either (1) that the real property was not subject to taxation for the years or year named in the deed; (2) that the taxes had been paid before the sale; (3) that the property has been redeemed from the sale according to the provisions of sections 77-1201 to 77-1219, 77-1229 to 77-1236, 77-1301 to 77-1318.01, 77-1501 to 77-1514, 77-1601 to 77-1618, 77-1701 to 77-1710, 77-1716 to 77-1738, 77-1740 to 77-1767, and 77-1801 to 77-1855, and that such redemption was had or made for the use and benefit of persons having the right of redemption under the laws of this state; or (4) that there had been an entire omission to list or assess the property, or to levy the taxes, or to sell the property.

Source:Laws 1903, c. 73, § 221, p. 471; R.S.1913, § 6549; C.S.1922, § 6077; C.S.1929, § 77-2029; R.S.1943, § 77-1843; Laws 2006, LB 808, § 40.    


Annotations

77-1844. Real property taxes; treasurer's tax deed; condition required to question title.

No person shall be permitted to question the title acquired by a treasurer's deed without first showing that he, or the person under whom he claims title, had title to the property at the time of the sale, or that the title was obtained from the United States or this state after the sale, and that all taxes due upon the property had been paid by such person or the persons under whom he claims title as aforesaid.

Source:Laws 1903, c. 73, § 221, p. 471; R.S.1913, § 6549; C.S.1922, § 6077; C.S.1929, § 77-2029; R.S.1943, § 77-1844.


Annotations

77-1845. Real property taxes; treasurer's tax deed; taxes paid; mistake in entry; effect.

In all cases when a person has paid his or her taxes and through mistake in the entry made in the treasurer's books or in the receipt the real property upon which the taxes were paid was afterwards sold, the treasurer's deed shall not convey the title.

Source:Laws 1903, c. 73, § 221, p. 471; R.S.1913, § 6549; C.S.1922, § 6077; C.S.1929, § 77-2029; R.S.1943, § 77-1845; Laws 1992, LB 1063, § 163; Laws 1992, Second Spec. Sess., LB 1, § 136.    


Annotations

77-1846. Real property taxes; treasurer's tax deed; effect of fraud.

In all cases when the owner of real property sold for taxes resists the validity of a tax title, the owner may prove fraud committed by the officer selling the same or in the purchaser to defeat the same, and if fraud is so established, the sale and title shall be void.

Source:Laws 1903, c. 73, § 221, p. 471; R.S.1913, § 6549; C.S.1922, § 6077; C.S.1929, § 77-2029; R.S.1943, § 77-1846; Laws 1992, LB 1063, § 164; Laws 1992, Second Spec. Sess., LB 1, § 137.    


77-1847. Real property taxes; wrongful sale by officers; purchaser held harmless by county; liability of officers.

When by mistake or wrongful act of the treasurer or other officer real property has been sold on which no tax was due at the time or whenever real property is sold in consequence of error in describing such real property in the tax receipt, the county shall hold the purchaser harmless by paying him or her the amount of principal, interest, and costs to which he or she would have been entitled had the real property been rightfully sold. The treasurer or other officer shall be liable to the county therefor upon his or her official bond, or the purchaser or his or her assignee may recover directly of the treasurer or other officer in an action on his or her official bond.

Source:Laws 1903, c. 73, § 222, p. 472; R.S.1913, § 6550; C.S.1922, § 6078; C.S.1929, § 77-2030; R.S.1943, § 77-1847; Laws 1992, LB 1063, § 165; Laws 1992, Second Spec. Sess., LB 1, § 138.    


Annotations

77-1848. Sale of school real property for taxes; interest acquired by purchaser.

Whenever any school or university real property bought on credit is sold for taxes, the purchaser at such tax sale shall acquire only the interest of the original purchaser in such real property, and no sale of such real property for taxes shall prejudice the rights of the state therein or preclude the recovery of the purchase money or interest due thereon. In all cases when the real property is mortgaged or otherwise encumbered to the school or university fund, the interest of the person who holds the fee shall alone be sold for taxes and in no case shall the lien or interest of the state be affected by any sale of such encumbered real property made for taxes.

Source:Laws 1903, c. 73, § 223, p. 472; R.S.1913, § 6551; C.S.1922, § 6079; C.S.1929, § 77-2031; R.S.1943, § 77-1848; Laws 1992, LB 1063, § 166; Laws 1992, Second Spec. Sess., LB 1, § 139.    


Annotations

77-1849. Real property taxes; erroneous sale; refund of purchase money.

Whenever it shall be made to appear to the satisfaction of the county treasurer, either before the execution of a deed for real property sold for taxes, or, if a deed is returned by the purchaser, that any tract or lot has been sold which was not subject to taxation, or upon which the taxes had been paid previous to the sale, he or she shall make an entry opposite such tract or lot on the record that the same was erroneously sold, and such entry shall be evidence of the fact therein stated. In such cases the purchase money shall be refunded to the purchaser.

Source:Laws 1903, c. 73, § 224, p. 473; R.S.1913, § 6552; C.S.1922, § 6080; C.S.1929, § 77-2032; R.S.1943, § 77-1849; Laws 2013, LB341, § 17.    


77-1850. Real property taxes; treasurer's tax deed; effect of acts of de facto officers.

In all suits and controversies involving the question of title to real property held under and by virtue of a treasurer's deed, all acts of assessors, treasurers, clerks, supervisors, commissioners, and other officers de facto shall be deemed and construed to be of the same validity as acts of officers de jure.

Source:Laws 1903, c. 73, § 225, p. 473; R.S.1913, § 6553; C.S.1922, § 6081; C.S.1929, § 77-2033; R.S.1943, § 77-1850.


Annotations

77-1851. Real property taxes; assessed in wrong name; effect.

No sale of real property for taxes shall be void or voidable on account of the same having been assessed in any other name than that of the rightful owner, if the property be in other respects sufficiently described.

Source:Laws 1903, c. 73, § 226, p. 473; R.S.1913, § 6554; C.S.1922, § 6082; C.S.1929, § 77-2034; R.S.1943, § 77-1851.


Annotations

77-1852. Real property taxes; books and records; certified copies; presumptive evidence.

The books and records belonging to the offices of the county clerk and county treasurer, or copies thereof properly certified, shall be presumptive evidence of the sale of any real property for taxes, the redemption thereof, or the payment of taxes thereon.

Source:Laws 1903, c. 73, § 227, p. 473; R.S.1913, § 6555; C.S.1922, § 6083; C.S.1929, § 77-2035; R.S.1943, § 77-1852.


77-1853. Real property taxes; irregularities; effect.

Irregularities in making or equalizing assessments, or in making the returns thereof, shall not invalidate the sale of any real estate when sold by the county treasurer for delinquent taxes due thereon, nor in any manner invalidate the tax levied on any property or charged against any person.

Source:Laws 1903, c. 73, § 228, p. 473; R.S.1913, § 6556; C.S.1922, § 6084; C.S.1929, § 77-2036; R.S.1943, § 77-1853.


Annotations

77-1854. Real property taxes; irregularities enumerated.

The following defects, omissions and circumstances occurring in the assessment of any property for taxation, or in the levy of taxes, or elsewhere in the course of the proceedings from and including the assessment and to and including the execution and delivery of the deed of the property sold for taxes, shall be taken and deemed to be mere irregularities within the meaning of section 77-1853: (1) The failure of the assessor to take or subscribe an oath or attach one to any assessment roll; (2) the omission of a dollar mark or other designation descriptive of the value of figures used to denote an amount assessed, levied or charged against property, or the valuation of any property upon any record; (3) the failure or neglect of the county treasurer to offer any real estate for sale for delinquent taxes thereon at the time provided by law, unless the same be sold sooner than is provided by law; (4) the failure of the treasurer to adjourn such sale from time to time as required by law, or any irregularity or informality in such adjournment; (5) the failure of the county treasurer to offer any real estate at public sale which may afterwards be sold at private sale, and any irregularity or informality in the manner or order in which real estate may be offered at public sale; (6) the failure to assess any property for taxation or to levy any tax within the time provided by law; and (7) any irregularity, informality or omission in any assessment book, tax collector's book, or other record of any real or personal property assessed for taxation, or upon which any tax is levied, or which may be sold for taxes. Where the defect is in the description of property, such description must be sufficiently definite to enable the county treasurer or other officer, or any person interested, to determine what property is meant or intended by the description, and in such case a defective or indefinite description on the assessment or treasurer's book, or in any notice or advertisement may be made definite by the treasurer in the deed by which he may convey such property, if sold for taxes, by conveying by proper and definite description the property so defectively or indefinitely described.

Source:Laws 1903, c. 73, § 229, p. 474; R.S.1913, § 6557; C.S.1922, § 6085; C.S.1929, § 77-2037; R.S.1943, § 77-1854.


Annotations

77-1855. Real property taxes; recovery of real estate sold; limitation of action.

No action for the recovery of real estate sold for the nonpayment of taxes shall be brought after five years from the execution and recording of the treasurer's deed, unless the owner is at the time of the sale a minor, a mentally incompetent person, or a convict in a Department of Correctional Services adult correctional facility in which case such action must be brought within five years after such disability is removed.

Source:Laws 1903, c. 73, § 230, p. 475; R.S.1913, § 6558; C.S.1922, § 6086; C.S.1929, § 77-2038; R.S.1943, § 77-1855; Laws 1986, LB 1177, § 35;    Laws 1993, LB 31, § 22.    


Annotations

77-1856. Real property taxes; effect of failure to demand deed or to foreclose; cancellation of tax sales.

If the owner of any tax sale certificate fails or neglects to demand a deed thereon or to commence an action for the foreclosure of the same within the time specified in section 77-1837 or 77-1902, such tax sale certificate shall cease to be valid or of any force or effect whatever and the real property covered thereby shall be forever released and discharged from the lien of all taxes for which the real property was sold. It is made the duty of each and every county treasurer of the State of Nebraska to enter on the tax sale records of his or her office a cancellation of all tax sales on which the time specified in section 77-1837 or 77-1902 has elapsed since date of sale, with date of entry affixed, in language substantially as follows: Canceled by section 77-1856. No county treasurer or bonded abstracter shall be held responsible on his or her bond or otherwise on account of such entry being made in accordance with this section. All real property covered by tax sales that comes within the provisions of sections 77-1801 to 77-1860 shall from the time of this entry be considered to stand of record as though no tax sale had ever been made.

Source:Laws 1903, c. 73, § 241, p. 478; R.S.1913, § 6569; Laws 1915, c. 112, § 1, p. 261; C.S.1922, § 6097; C.S.1929, § 77-2049; R.S.1943, § 77-1856; Laws 1977, LB 6, § 1;    Laws 1992, LB 1063, § 167; Laws 1992, Second Spec. Sess., LB 1, § 140.    


Annotations

77-1857. County treasurer; seal; when used.

County treasurers shall have and keep an official seal, which may be either an engraved or an ink stamp seal, and which shall have included thereon the name of the county followed by the word County, the name of the state, and the words County Treasurer. Each county treasurer shall affix an impression or representation of such seal to every certificate of tax sale and tax deed made by him.

Source:Laws 1903, c. 31, § 1, p. 280; R.S.1913, § 6571; C.S.1922, § 6099; C.S.1929, § 77-2051; R.S.1943, § 77-1857; Laws 1953, c. 280, § 1, p. 911; Laws 1971, LB 653, § 9.    


Annotations

77-1858. Real property taxes; powers of sale; special assessments included; exception.

Wherever power is now given by the revenue laws of this state to the county treasurer of any county in this state to sell real estate, on which the taxes have not been paid as provided by law, it shall include the power to sell the real estate for (1) all the taxes and special assessments, except special assessments levied by a sanitary and improvement district organized under sections 31-727 to 31-762, levied or hereafter levied by any county, municipality, drainage district, or other political subdivision of the state and (2) all special assessments levied or hereafter levied by any sanitary and improvement district if such sale is requested by such sanitary and improvement district which levied the special assessment. All provisions of the revenue law now in force with reference to the collection of taxes shall apply with equal force to all taxes and special assessments levied by such county, municipality, drainage district, or other political subdivision of the state.

Source:Laws 1915, c. 228, § 1, p. 531; C.S.1922, § 6101; C.S.1929, § 77-2053; R.S.1943, § 77-1858; Laws 1996, LB 1321, § 2.    


Annotations

77-1859. Real property taxes; void tax sale; reimbursement of purchaser.

Whenever, for any reason, real estate has been sold or shall hereafter be sold for the payment of any tax or special assessment levied by any county, municipality, drainage district, or other political subdivision of the state, and it shall thereafter be determined by a court of competent jurisdiction that said sale was void, it shall be the duty of said county, municipality, drainage district, or other political subdivision of the state, which levied the tax or special assessment, to hold said purchaser harmless by paying him or her the amount of principal paid by him or her at the sale, with interest thereon at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date of sale.

Source:Laws 1915, c. 228, § 2, p. 531; C.S.1922, § 6102; C.S.1929, § 77-2054; R.S.1943, § 77-1859; Laws 1981, LB 167, § 46.    


Annotations

77-1860. Foreclosure by counties prior to 1903; decrees validated.

All judgments, orders, decrees and findings made prior to July 28, 1903, by any district court in the State of Nebraska, in any action wherein any county in the state prosecuted actions to foreclose tax liens and sell lots or lands in Nebraska for the taxes levied thereon and delinquent, without having first purchased a tax certificate from the county treasurer, but on the contrary were based solely on the taxes assessed and delinquent, and purported to have been bought for the county in its own behalf, and as trustee for the State of Nebraska and the several municipalities interested in such taxes, and all sheriff's deeds made in said proceedings, are legalized and made valid, to the same extent and purpose as though the statute had specifically authorized such foreclosures without the purchase of a treasurer's tax certificate.

Source:Laws 1903, c. 77, § 1, p. 521; R.S.1913, § 6572; C.S.1922, § 6100; C.S.1929, § 77-2052; R.S.1943, § 77-1860.


77-1861. Real property taxes and special assessments; extinguishment after fifteen years; vitalization of constitutional amendment.

It is declared to be the intent and purpose of sections 77-203, and 77-1861 to 77-1863 to vitalize Article VIII, section 4, of the Constitution of Nebraska, and to invoke and exercise the powers conferred upon the Legislature of Nebraska, thereby.

Source:Laws 1959, c. 354, § 1, p. 1249.


77-1862. Real property taxes and special assessments; extinguishment after fifteen years; year 1943 and prior thereto; subsequent years.

(1) Any and all taxes and special assessments, together with interest, penalty, and costs, levied upon any real property, and any lien created thereby in this state and due to this state or to any county or other political subdivision thereof, becoming delinquent in the calendar year 1943 or any prior year, are hereby released and extinguished forever.

(2) Any and all taxes and special assessments, together with interest, penalty, and costs, levied upon any real property, except mobile homes, cabin trailers, manufactured homes, or similar property assessed and taxed as improvements to leased land, and any lien created thereby in this state and due to this state or to any county or other political subdivision thereof, becoming delinquent in the calendar year 1944, or any subsequent year, are hereby released and extinguished forever upon the expiration of fifteen years after the date upon which the tax or special assessment became or shall become delinquent.

Source:Laws 1959, c. 354, § 2, p. 1249; Laws 2000, LB 968, § 71.    


77-1863. Real property taxes and special assessments; extinguished after fifteen years; not required to be certified.

Any county officer or other person who is required to certify to public records shall not be required to certify to any taxes or special assessments, penalty and costs, which have been released and extinguished in accordance with the provisions of section 77-1861 and 77-1862.

Source:Laws 1959, c. 354, § 3, p. 1249.


77-1901. Tax liens; delinquency; order of county board directing foreclosure.

Counties shall have a lien upon real estate within their boundaries for all taxes due thereon to the state, any governmental subdivision of the state, any municipal corporation, and any drainage or irrigation district. After any parcel of real estate has been offered for sale and not sold for want of bidders, the county board shall make and enter an order directing the county attorney to foreclose the lien for all taxes then delinquent, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of real estate mortgages, except as otherwise specifically provided by sections 77-1903 to 77-1917.

Source:Laws 1943, c. 176, § 1, p. 614; R.S.1943, § 77-1901; Laws 1965, c. 496, § 1, p. 1584; Laws 1979, LB 84, § 4;    Laws 1996, LB 1321, § 3;    Laws 2011, LB423, § 1.    


Annotations

77-1902. Tax sale certificate; tax deed; right of holder to foreclosure; action in district court; limitation period.

When land has been sold for delinquent taxes and a tax sale certificate or tax deed has been issued, the holder of such tax sale certificate or tax deed may, instead of demanding a deed or, if a deed has been issued, by surrendering the same in court, proceed in the district court of the county in which the land is situated to foreclose the lien for taxes represented by the tax sale certificate or tax deed and all subsequent tax liens thereon, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917. Such action shall only be brought within nine months after the expiration of three years from the date of sale of any real estate for taxes or special assessments.

Source:Laws 1943, c. 176, § 2, p. 615; R.S.1943, § 77-1902; Laws 1975, LB 78, § 2;    Laws 1987, LB 215, § 3;    Laws 1996, LB 1321, § 4;    Laws 2011, LB423, § 2;    Laws 2013, LB341, § 18.    


Annotations

77-1903. Foreclosure proceedings; confirmation of sale.

The foreclosure proceedings, provided by sections 77-1901 and 77-1902, shall be conducted as nearly as possible in the same manner, except in the following particulars: (1) In the foreclosure of a tax lien, as provided by section 77-1901, final confirmation of sale cannot be had until two years have expired from the date of the sale held by the sheriff in the foreclosure proceedings; or (2) in the foreclosure of a tax sale certificate or tax deed, as provided in section 77-1902, final confirmation of sale may be had immediately after the sheriff's sale.

Source:Laws 1943, c. 176, § 3, p. 615; R.S.1943, § 77-1903.


Annotations

77-1904. Foreclosure proceedings; designation of property.

In all foreclosure proceedings, including in the complaint, it is sufficient to designate the township, range, section, or part of section and the number and description of any lot or block by initial letters, abbreviations, and figures.

In describing improvements on leased land for such notice and proceedings, the words "Improvements Only Located Upon" shall precede the designation of such property as set out in this section.

Source:Laws 1943, c. 176, § 4, p. 615; R.S.1943, § 77-1904; Laws 1992, LB 1063, § 168; Laws 1992, Second Spec. Sess., LB 1, § 141;    Laws 2002, LB 876, § 83.    


Annotations

77-1905. Repealed. Laws 2002, LB 876, § 92.

77-1906. Foreclosure proceedings; unknown owners; real property as defendant.

The plaintiff may also, if desired, include as or make the real property described in the complaint a defendant and, if the owners of any such real property are unknown and cannot be found, may proceed against the real property itself, but in such case the service shall be as in the case of an unknown defendant.

Source:Laws 1943, c. 176, § 6, p. 616; R.S.1943, § 77-1906; Laws 1992, LB 1063, § 169; Laws 1992, Second Spec. Sess., LB 1, § 142;    Laws 2002, LB 876, § 84.    


Cross References

77-1907. Repealed. Laws 2002, LB 876, § 92.

77-1908. Foreclosure proceedings; presumptive evidence.

The tax sale certificate or tax deed, in foreclosure proceedings under section 77-1902, or a certificate of the county treasurer, as to the amount of unpaid delinquent taxes in foreclosure proceedings under section 77-1901, shall be presumptive evidence of all facts necessary to entitle the plaintiff to a decree for the amount appearing to be due thereon with interest at the rate required to be paid for redemption from tax sale.

Source:Laws 1943, c. 176, § 8, p. 616; R.S.1943, § 77-1908.


77-1909. Foreclosure proceedings; decree; contents; attorney's fee.

In its decree, the court shall ascertain and determine the amount of taxes, special assessments, and other liens, interest, and costs chargeable to each particular item of real property, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer, and award to the plaintiff an attorney's fee, unless waived by the plaintiff, in an amount equal to ten percent of the amount due which shall be taxed as part of the costs in the action and apportioned equitably as other costs.

Source:Laws 1943, c. 176, § 9, p. 616; R.S.1943, § 77-1909; Laws 1992, LB 1063, § 171; Laws 1992, Second Spec. Sess., LB 1, § 144;    Laws 2011, LB423, § 3.    


Annotations

77-1910. Foreclosure proceedings; surplus proceeds; application; limit of real property to be sold.

The court may in its decree order that any surplus proceeds of the sale of one item of real property shall be applied to the payment of taxes and costs against any other item of real property owned by the same defendant when no rights of a third person are affected thereby and may order that only so much of the real property, so owned by one defendant, shall be sold as may be necessary to satisfy all taxes and costs charged against all the real property owned by the same defendant.

Source:Laws 1943, c. 176, § 10, p. 616; R.S.1943, § 77-1910; Laws 1992, LB 1063, § 172; Laws 1992, Second Spec. Sess., LB 1, § 145.    


77-1911. Foreclosure proceedings; decree; order of sale, when issued; limitation.

Upon the expiration of twenty days from and after such decree, the plaintiff shall be entitled to an order of sale of the real property remaining unredeemed. This order of sale shall be issued only at the request of the plaintiff or the holder of an unredeemed lien and shall be issued within ten years from the date of the decree. After ten years from the date of the decree, (1) no order of sale shall issue, (2) the decree shall be deemed satisfied, and (3) no further action shall lie to enforce the lien of any taxes or special assessments included in the decree.

Source:Laws 1943, c. 176, § 11, p. 617; R.S.1943, § 77-1911; Laws 1953, c. 281, § 1, p. 912; Laws 1992, LB 1063, § 173; Laws 1992, Second Spec. Sess., LB 1, § 146.    


Annotations

77-1912. Foreclosure proceedings; sheriff's sale; political subdivision as purchaser; postponement of sale; notice.

(1) The sheriff shall sell the real property in the same manner provided by law for a sale on execution and shall at once pay the proceeds thereof to the clerk of the district court. Any governmental subdivision of the state, municipal corporation, or drainage or irrigation district to which any part of the taxes included in the decree of foreclosure is due may purchase any real property sold at sheriff's sale. The provisions of the law for the protection of the purchasers at tax sales shall apply to purchasers at foreclosure sales provided for in this section. The sheriff or officer conducting the sale shall not be entitled to any commission on the money received and paid out on foreclosure sales provided for herein.

(2) The sheriff or officer conducting the sale may, for any cause he or she deems expedient, postpone the sale of all or any portion of the real property from time to time until it is completed, and in every such case, notice of postponement shall be given by public declaration thereof by the sheriff or officer at the time and place last appointed for the sale. The public declaration of the notice of postponement shall include the new date, time, and place of sale. No other notice of the postponed sale need be given unless the sale is postponed for longer than forty-five days beyond the day designated in the notice of sale, in which event notice shall be given in the same manner as the original notice of sale is required to be given.

Source:Laws 1943, c. 176, § 12, p. 617; R.S.1943, § 77-1912; Laws 1992, LB 1063, § 174; Laws 1992, Second Spec. Sess., LB 1, § 147;    Laws 2010, LB732, § 5.    


Annotations

77-1913. Foreclosure proceedings; examination by court; order for sheriff's deed; certificate of tax sale for subsequent taxes.

The court shall, after the expiration of the time provided in section 77-1903 and on the motion of the plaintiff, examine the proceedings and, if they are found to be correct and if the subsequent taxes have been paid to date, in case the purchaser is not a land reutilization authority or a governmental subdivision of the state, a municipal corporation or an irrigation or drainage district interested in the distribution of the proceeds of the foreclosure sale, make and enter an order of confirmation of the sale, shall direct the disposition of the proceeds of the sale and order the sheriff to make and deliver to the purchasers, without further cost to them, a sheriff's deed for any real estate not redeemed; Provided, if a private purchaser at any sale held by the sheriff in tax foreclosure proceedings shall fail to pay the subsequent taxes levied and assessed against the property under foreclosure, any governmental subdivision of the state, municipal corporation or drainage or irrigation district, interested in the distribution of the proceeds of the foreclosure sale, may apply for and have issued to it a certificate of tax sale covering such subsequent taxes in the manner provided by sections 77-1809 and 77-1810, and, upon production of such certificate in the court conducting said foreclosure proceedings, such court may thereupon order confirmation of such foreclosure sale, notwithstanding the private purchaser has failed to pay the subsequent taxes levied and assessed against the property.

Source:Laws 1943, c. 176, § 13, p. 617; R.S.1943, § 77-1913; Laws 1982, LB 630, § 1.    


Annotations

77-1914. Foreclosure proceedings; confirmation of sale; release of real property.

Upon confirmation of the sale, the clerk of the district court shall certify to the county treasurer the year or years of the taxes for which the real property was sold. The county treasurer shall thereupon cancel the taxes for such years, and the proceedings shall operate as a release of such real property from all liens for the taxes included on the real property. The delivery of the sheriff's deed shall pass title to the purchaser free and clear of all liens and interests of all persons who were parties to the proceedings, who received service of process, and over whom the court had jurisdiction, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer.

Source:Laws 1943, c. 176, § 14, p. 618; R.S.1943, § 77-1914; Laws 1992, LB 1063, § 175; Laws 1992, Second Spec. Sess., LB 1, § 148;    Laws 2008, LB893, § 2;    Laws 2011, LB423, § 4.    


77-1915. Foreclosure proceedings; proceeds of sale; disposition.

From the proceeds of the sale of any real property, the costs charged thereto shall first be paid. When the plaintiff is a private person, firm, or corporation, the balance thereof, or so much thereof as is necessary, shall be paid to the plaintiff. When the plaintiff is a governmental subdivision other than a land bank, or is a municipal corporation or drainage or irrigation district, the balance thereof, or so much thereof as is necessary, shall be paid to the county treasurer for distribution to the various governmental subdivisions, municipal corporations, or drainage or irrigation districts entitled thereto in discharge of all claims, excluding any lien on real estate for special assessments levied by any sanitary and improvement district which special assessments have not been previously offered for sale by the county treasurer. When the plaintiff is a land bank, the balance thereof, or so much thereof as is necessary, shall be paid to the land bank.

Source:Laws 1943, c. 176, § 15, p. 618; R.S.1943, § 77-1915; Laws 1992, LB 1063, § 176; Laws 1992, Second Spec. Sess., LB 1, § 149;    Laws 2011, LB423, § 5;    Laws 2013, LB97, § 24.    


Annotations

77-1916. Foreclosure proceedings; surplus proceeds; disposition; prorating.

If a surplus remains after satisfying all costs and taxes against any particular item of real property, the excess shall be applied in the manner provided by law for the disposition of the surplus in the foreclosure of mortgages on real property. If the proceeds are insufficient to pay the costs and all the taxes, when the plaintiff is a governmental subdivision other than a land bank or is a municipal corporation or a drainage or irrigation district, the amount remaining shall be prorated among the governmental subdivisions, municipal corporations, and drainage or irrigation districts in the proportion of their interest in the decree of foreclosure. The proceeds of the sale of one item of real property shall not be applied to the discharge of a lien for taxes against another item of real property except when so directed by the decree for foreclosure under the circumstances set forth in section 77-1910. The lien on real estate for special assessments levied by any sanitary and improvement district shall not be entitled to any surplus unless such special assessments have been previously offered for sale by the county treasurer.

Source:Laws 1943, c. 176, § 16, p. 618; R.S.1943, § 77-1916; Laws 1992, LB 1063, § 177; Laws 1992, Second Spec. Sess., LB 1, § 150;    Laws 2011, LB423, § 6;    Laws 2013, LB97, § 25.    


77-1917. Foreclosure proceedings; redemption; subsequent taxes paid; conditions.

(1) Any person entitled to redeem real property may do so at any time prior to the institution of foreclosure proceedings by paying the county treasurer for the use of such holder of a tax sale certificate or his or her heirs or assigns the sum mentioned in his or her certificate, with interest thereon at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date of purchase to the date of redemption, together with all other taxes subsequently paid, whether for any year or years previous or subsequent to the sale, and interest thereon at the same rate from the date of such payment to the date of redemption.

(2) Any person entitled to redeem real property may do so at any time after the decree of foreclosure and before the final confirmation of the sale by paying to the clerk of the district court the amount found due against the property, with interest and costs to the date of redemption and, in addition thereto, when the real property has been sold at sheriff's sale to a purchaser other than the plaintiff, any subsequent taxes paid by such purchaser, as shown by tax receipts filed by such purchaser with the clerk of the district court, with interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, from the date or dates of payment of such taxes, and also interest on the purchase price at the same rate, for the use of the purchaser, from the date of sale to the date of redemption. During the pendency of a foreclosure action any person entitled to redeem any lot or parcel may do so by paying to the court the amount due with interest and costs, including attorney's fees, provided for in section 77-1909, if requested in the foreclosure complaint. Within thirty days after receipt of payment of all amounts due, the holder of the tax sale certificate shall dismiss its claim in the foreclosure proceeding with respect to any redeemed tax sale certificate. The holder of the tax sale certificate shall be required to provide the county treasurer with written notice that a foreclosure suit has been instituted and provide the county treasurer with an affidavit setting forth the costs incurred in the foreclosure action and indicating whether attorney's fees were requested in the foreclosure complaint.

(3) The person redeeming any lot or parcel shall be required to provide the county treasurer with an appropriate receipt evidencing the payment to the court of the amount due with interest and costs and the holder of the tax sale certificate shall file with the county treasurer notice of its dismissal of the claim in the foreclosure proceeding.

Source:Laws 1943, c. 176, § 17, p. 619; R.S.1943, § 77-1917; Laws 1945, c. 194, § 1, p. 597; Laws 1971, LB 743, § 1;    Laws 1979, LB 84, § 5;    Laws 1981, LB 167, § 47;    Laws 1992, LB 1063, § 178; Laws 1992, Second Spec. Sess., LB 1, § 151;    Laws 1997, LB 486, § 1;    Laws 2002, LB 876, § 85;    Laws 2008, LB893, § 3.    


Cross References

Annotations

77-1917.01. Delinquent special assessments; effect; foreclosure proceedings.

All cities, villages and sanitary and improvement districts in Nebraska shall have a lien upon real estate within their boundaries for all special assessments due thereon to the municipal corporation or district, which lien shall be inferior only to general taxes levied by the state and its political subdivisions. When such special assessments have become delinquent, without the real property against which they are assessed being first offered at tax sale by the tax sale certificate method or otherwise, the municipal corporation or district involved may itself as party plaintiff proceed in the district court of the county in which the real estate is situated to foreclose, in its own name, the lien for such delinquent special assessments in the same manner and with like effect as in the foreclosure of a real estate mortgage, except as otherwise specifically provided by sections 77-1903 to 77-1917, which shall govern when applicable. Final confirmation of sale in such foreclosure proceeding and issuance of deed to the plaintiff, or its assignee, cannot be had until two years have expired from the date of the sale held by the sheriff, and, after expiration of such two-year period, personal notice has been served on occupants of the real property. The remedy granted in this section to cities, villages and sanitary and improvement districts for the collection of delinquent special assessments shall be cumulative and in addition to other existing methods.

Source:Laws 1961, c. 387, § 1, p. 1182; Laws 1976, LB 313, § 13.


Annotations

77-1918. Delinquent taxes; annual report by county treasurer; duty of county board; duty of county attorney; fees; failure to perform duty; penalty; removal, when.

On or before October 1 of each year, the county treasurer shall make a report in writing to the county board setting out a complete list of all real property in the county on which any taxes are delinquent and which was not sold for want of bidders at the last annual tax sale held in such county. It shall be the duty of the county board, at its first meeting held after the making of such report, to carefully examine the same, and while it may direct the issuance of tax sale certificates to the county upon any real property upon which there are any delinquent taxes, it shall, as to all real property upon which taxes are delinquent for three or more years, either enter an order directing the foreclosure of the lien of such taxes as provided in section 77-1901 or enter an order for the county treasurer to issue tax sale certificates to the county covering the delinquent taxes upon such real property, to be foreclosed upon in the manner and at the time provided in sections 77-1901 to 77-1918.

The county board shall have authority to direct the county attorney to commence foreclosure of such liens or certificates or it may designate another attorney to commence such actions, and the county board is authorized to pay any reasonable fee for such foreclosures to be assessed as costs. In the event the county attorney is designated to bring the action, the fee shall be fifty dollars for each cause of action in addition to his or her salary to be retained by him or her, but it shall not be paid to the county attorney until the decree is entered and the property sold pursuant to such decree. No fee shall be allowed the county attorney for such foreclosures in counties having a population of more than one hundred thousand inhabitants.

Any county treasurer, county attorney, or member of the county board who willfully fails, neglects, or refuses to perform the duties imposed by such sections shall be guilty of official misdemeanor and subject to removal from office as provided in sections 23-2001 to 23-2009. If the county board fails to dismiss the county attorney for failure to foreclose liens, the county board shall be removed. Any member of a county board who, upon a motion duly made by one member of such board to remove a county attorney from office who has failed to foreclose liens, does not vote for such motion or any member who votes to retain a county attorney in office after it has been brought to the board's attention that he or she has failed to foreclose liens shall be subject to removal from office as provided in sections 23-2001 to 23-2009.

Source:Laws 1943, c. 176, § 18, p. 619; R.S.1943, § 77-1918; Laws 1961, c. 388, § 1, p. 1183; Laws 1971, LB 743, § 2;    Laws 1986, LB 531, § 4;    Laws 1992, LB 1063, § 179; Laws 1992, Second Spec. Sess., LB 1, § 152;    Laws 1995, LB 488, § 1.    


Annotations

77-1918.01. Foreclosure proceedings; county attorney fee; when effective.

Section 77-1918 shall be so interpreted as to effectuate its general purpose, to provide, in the public interest, adequate compensation as therein provided for county attorneys, and to give effect to such salary as soon as same may become operative under the Constitution of the State of Nebraska.

Source:Laws 1971, LB 743, § 3;    Laws 1972, LB 1069, § 6.    


77-1919. Repealed. Laws 1949, c. 240, § 5.

77-1920. Repealed. Laws 1949, c. 240, § 5.

77-1921. Repealed. Laws 1949, c. 240, § 5.

77-1922. Repealed. Laws 1949, c. 240, § 5.

77-1923. Foreclosure of tax lien by county under old law; sale prior to May 26, 1943; action to attack; limitation period.

Where any county shall have commenced proceedings in this state under the provisions of section 77-2039, C.S.Supp.,1941, and shall have purchased real estate sold under said proceedings, as trustee for the benefit of the governmental bodies interested in the taxes, and the sale has been confirmed and the deed or deeds therefor have been issued and delivered to the county and the county has sold the real estate prior to May 26, 1943, any person, persons, firm or corporation or governmental body of the state, which shall have or has had any interest whatsoever in said real estate, lien thereon or interest in said taxes, shall have one year and no more, under any circumstances whatever, from May 26, 1943, within which to bring any action whatsoever to attack said proceeding, any of the steps taken thereunder, the method of purchasing, the power of the county either to bring said proceeding or to purchase the property in its name as trustee or said deeds. In the event no such action shall be brought within said period so fixed by this period of limitation, then the title of the purchaser from the county shall be valid and absolute against any such person, persons, firm or corporation or governmental body.

Source:Laws 1943, c. 184, § 1, p. 631; R.S.1943, § 77-1923.


77-1924. Foreclosure of tax lien by county under old law; sale after May 26, 1943; action to attack; limitation period.

Where any county shall have commenced proceedings in this state under the provisions of section 77-2039, C.S.Supp.,1941, and shall have purchased real estate sold under said proceedings, as trustee for the benefit of the governmental bodies interested in the taxes, and the sale has been confirmed and the deed or deeds therefor have been issued and delivered to the county, any person, persons, firm or corporation or governmental body of the state, which shall have or have had any interest whatsoever in said real estate, lien thereon or interest in said taxes, shall have one year and no more, under any circumstances whatever, from May 26, 1943, within which to bring any action whatsoever to attack said proceeding, any of the steps taken thereunder, the method of purchasing, the power of the county either to bring said proceeding or to purchase the property in its name as trustee or said deeds. In the event no such action shall be brought within said period so fixed by this period of limitations, then the title of the county as trustee shall be valid and absolute against any such person, persons, firm or corporation or governmental body.

Source:Laws 1943, c. 184, § 2, p. 632; R.S.1943, § 77-1924.


77-1925. Foreclosure of tax lien by county under old law; sale not confirmed prior to May 26, 1943; action to attack; limitation period.

Where any county shall have commenced proceedings in this state under the provisions of section 77-2039, C.S.Supp.,1941, and shall have purchased real estate sold under said proceedings, as trustee for the benefit of the governmental bodies interested in the taxes, and the sale or sales have not been confirmed as of May 26, 1943, but more than two years shall have elapsed since the date of the sale, then the county shall be entitled upon motion to have the sale or sales confirmed and a deed or deeds issued to it and any person, persons, firm or corporation or governmental body, which shall have or have had any interest whatsoever in said real estate, lien thereon or interest in said taxes, shall have one year and no more, under any circumstances whatever, from the date of the issuance of said deeds within which to bring any action whatsoever to attack such proceedings, any of the steps taken thereunder, the method of purchasing, the power of the county either to bring said proceeding or to purchase the property in its name as trustee or said deeds. In the event no such action shall be brought within said period so fixed by this period of limitation, then the title of the county to said premises, as trustee, shall be good and valid as against each and all such person, persons, firms, corporations or governmental bodies, and the county shall not be required to pay the subsequent taxes, levied or assessed against said premises, or the court costs charged against said real estate in the foreclosure proceeding.

Source:Laws 1943, c. 184, § 3, p. 632; R.S.1943, § 77-1925.


77-1926. Repealed. Laws 2013, LB341, § 22.

77-1927. Foreclosure of tax lien by county under old law; resale by county board.

Where any county shall have acquired real estate, under the conditions set forth in any one or more of sections 77-1923 to 77-1925, the county board shall have power to convey any of such real estate, by a deed signed by the chairman of the county board at any time after May 26, 1943, subject to the right, if any, of any person, persons, firm or corporation or governmental body to attack the same by action or proceeding within the one-year limitation herein provided for, for such price as the county board, in the exercise of good faith, shall determine to be a fair and reasonable price for the property.

Source:Laws 1943, c. 184, § 5, p. 633; R.S.1943, § 77-1927.


77-1928. Foreclosure of tax lien by county under old law; sale of property; proceeds; disposition.

From the proceeds of the sales of said pieces of property, or any sales which may have heretofore been had, there shall first be paid the costs of sale, the court costs, including any attorney's fees paid or to be paid on account of said foreclosure, any reasonable expense in taking care of the property and all costs for advertising for delinquent taxes. The balance, if any, shall be distributed to the governmental bodies in the following manner: By paying the taxes which shall have been unpaid by the previous owners, with interest and penalties, in the inverse order assessed, to the extent of the proceeds, and any unpaid taxes thereafter remaining shall be canceled on the books of the county.

Source:Laws 1943, c. 184, § 6, p. 634; R.S.1943, § 77-1928.


77-1929. Repealed. Laws 1949, c. 240, § 5.

77-1930. Repealed. Laws 1949, c. 240, § 5.

77-1931. Repealed. Laws 1949, c. 240, § 5.

77-1932. Repealed. Laws 1949, c. 240, § 5.

77-1933. Repealed. Laws 2006, LB 1024, § 115.

77-1934. Tax certificate foreclosure proceedings under old law; defective procedure; confirmation of sale not yet obtained; action to cure defects.

Where any county, city, village, school district, drainage district, or irrigation district shall have commenced proceedings under the provisions of either section 77-2040 or 77-2041, C.S.Supp.,1941, to foreclose tax sale certificates, and the sale or sales held by the sheriff in such proceedings has not been confirmed as of March 24, 1947, but more than two years shall have elapsed, either between the time of issuance of tax sale certificate and the time of instituting the tax foreclosure proceedings, or from and after the time of holding sheriff's sale, then such purchaser of the tax sale certificate or certificates shall be entitled upon motion to have the sale or sales confirmed and a deed or deeds issued to such purchaser, and any person, persons, firm, corporation, or governmental body, which shall have or has had any interest whatsoever in the real estate, lien thereon, or interest in the taxes foreclosed, shall have one year and no more, under any circumstances whatever, from the date of the issuance of the deed or deeds, within which to bring any action whatsoever to attack such proceedings, any of the steps taken thereunder, the method of purchasing or the power of the county, municipality or other governmental subdivision mentioned above to bring said proceedings, to purchase the property in its name as trustee, or to receive deed. In the event no such action shall be brought within the period of limitation fixed by this section, the title of the purchaser shall be valid and absolute against any such person, persons, firm, corporation, or governmental body.

Source:Laws 1947, c. 264, § 2, p. 855.


Annotations

77-1935. Tax certificate foreclosure proceedings under old law; action to cure defects; conditions precedent.

In the event any person, persons, firm, corporation, or governmental body shall bring any action whatever to contest the validity of any of the tax foreclosure proceedings, under either section 77-1933 or 77-1934, then such person, persons, firm, corporation, or governmental body shall first pay to the clerk of the district court in which the action shall be brought all taxes levied or assessed against real estate for the years foreclosed on, with interest and penalties provided by law, and all court costs in the tax foreclosure proceedings taxed in the cause of action affecting the real estate involved in the subsequent action, and shall also pay to the county treasurer of the county all taxes levied or assessed against said real estate subsequent to the taxes foreclosed upon, with interest and penalties provided by law, which are liens upon the property at the time such subsequent action shall be commenced. The money paid to the county treasurer as subsequent taxes shall be held by the county treasurer in escrow until there has been a final adjudication as to the validity of the tax foreclosure proceedings under attack, and not unless and until such proceedings have been adjudicated to be invalid shall the county treasurer distribute the subsequent taxes thus paid to the state and governmental subdivisions entitled to participate therein. The payment of such taxes and court costs shall be a prerequisite to the filing of any such action. In the event the party bringing action to contest the validity of such tax foreclosure proceedings is unsuccessful, the clerk of the district court shall refund to such party, after deducting all unpaid costs assessed against him by the court in such action, the balance remaining after such deduction of the amount of any costs and taxes paid to such clerk as a condition precedent to institution of such action. The county treasurer shall also refund all subsequent taxes paid by such party in the event he is unsuccessful.

Source:Laws 1947, c. 264, § 3, p. 855.


77-1936. Tax certificate foreclosure proceedings; authority of governmental subdivisions to convey real property obtained thereunder.

When any county, city, village, school district, drainage district, or irrigation district shall have acquired real estate under such tax foreclosure proceedings, the governing body of such governmental subdivision or municipal corporation shall have power to convey any such real estate by a deed signed by the chairperson or other presiding officer of such body, subject to the right, if any, of any person, persons, firm, corporation, or governmental body to attack the same by action or proceeding within the one-year limitation provided in sections 77-1934 to 77-1936, for such price as the governing body of any such governmental subdivision or municipal corporation, in the exercise of good faith, shall determine to be a fair and reasonable price for the property.

Source:Laws 1947, c. 264, § 4, p. 856; Laws 2013, LB341, § 19.    


77-1937. Repealed. Laws 2013, LB341, § 22.

77-1938. Tax foreclosure proceedings; defects subsequent to decree of foreclosure; proper completion of proceedings authorized.

In all proceedings heretofore had for the foreclosure of tax liens or tax sale certificates wherein a valid decree of foreclosure was procured, but proceedings subsequent to the entry of such decree were defective, invalid, or void for any reason, any person who has, subsequent to the entry of such decree, acquired any interest in such property by purchase from a former owner, assignment from a lienholder, payment of subsequent taxes, or erection of improvements on the property, may file an application to have the tax foreclosure proceeding properly completed, and the rights of the parties subsequent to the entry of such decree adjusted by the court.

Source:Laws 1949, c. 240, § 1, p. 652.


Annotations

77-1939. Tax foreclosure proceedings; defects subsequent to decree of foreclosure; application to complete proceedings.

The application provided for in section 77-1938 shall be filed in the original tax foreclosure proceeding wherein the decree of foreclosure was rendered. The application shall set forth: (1) The nature of the interest of the applicant in the property and how it was acquired; (2) the defect or defects which rendered proceedings subsequent to the decree of foreclosure defective, invalid, or void; (3) the taxes and special assessments which have become a lien since the entry of the decree of foreclosure, and the amount thereof, if any, paid by the applicant; (4) the improvements, if any, placed upon the property since the decree of foreclosure by the applicant or any person under whom he claims an interest in the property; and (5) any other facts proper for a court of equity to take into consideration in determining the rights, equities, and liens of the parties in and to the premises described in the tax foreclosure proceedings. The application shall conclude with a request that the court order the foreclosure proceedings to be properly completed and the rights of all parties arising subsequent to the decree of foreclosure be adjusted and determined.

Source:Laws 1949, c. 240, § 2, p. 652.


77-1940. Tax foreclosure proceedings; defects subsequent to decree of foreclosure; notice of hearing; service.

Notice of hearing upon the application shall be given to the plaintiff in the foreclosure proceedings, the state and all governmental subdivisions having any interest in the taxes found due by the decree, and all other persons who have since the entry of the decree apparently acquired any interest of record in the property. Such notice shall be served upon the parties in the same manner as a summons is served at the beginning of a civil action. Service of process may be made upon the State of Nebraska by service upon the Attorney General. Such parties shall have twenty days from the date of service of such notice in which to answer said application.

Source:Laws 1949, c. 240, § 3, p. 653.


77-1941. Tax foreclosure proceedings; defects subsequent to decree of foreclosure; hearing; determination.

Upon hearing the application, the court shall enter a supplemental decree directing that the tax foreclosure proceeding be properly completed, and determining the rights of all parties that have arisen subsequent to the entry of the decree of foreclosure. The rights adjudicated in the original tax foreclosure proceeding shall be respected and observed, but such adjudication shall not prevent any party from establishing superior rights that may have arisen since the entry of the decree through payment of subsequent taxes and special assessments and the placing of improvements on the premises in good faith. In the event any municipal corporation or governmental subdivision shall have received any consideration as the result of the proceedings which were defective, invalid, or void, it shall be required to account for the same, and judgment may be entered against it for the amount thereof and applied as a credit on any amount due it under the original decree of foreclosure.

Source:Laws 1949, c. 240, § 4, p. 653.


Annotations

77-2001. Inheritance tax; property taxable; transfer by will or inheritance; exception.

All property, including proceeds of life insurance receivable by the executor or administrator to the extent of the amount receivable by the executor or administrator as insurance under policies upon the life of the decedent, which shall pass by will or by the intestate laws of this state from any person who, at the time of death was a resident of this state, or, if the decedent was not a resident, any part of the property within this state, except property exempted by the provisions of Chapter 77, article 20, shall be subject to tax at the rates prescribed by sections 77-2004 to 77-2006.

Source:Laws 1901, c. 54, § 1, p. 414; Laws 1905, c. 117, § 1, p. 523; Laws 1907, c. 103, § 1, p. 356; R.S.1913, § 6622; C.S.1922, § 6153; Laws 1923, c. 187, § 1, p. 430; C.S.1929, § 77-2201; Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2001; Laws 1945, c. 198, § 3, p. 604; Laws 1951, c. 267, § 1, p. 898; Laws 1982, LB 480, § 1.    


Annotations

77-2002. Inheritance tax; property taxable; transfer in contemplation of death.

(1) Any interest in property whether created or acquired prior or subsequent to August 27, 1951, shall be subject to tax at the rates prescribed by sections 77-2004 to 77-2006, except property exempted by the provisions of Chapter 77, article 20, if it shall be transferred by deed, grant, sale, or gift, in trust or otherwise, and: (a) Made in contemplation of the death of the grantor; (b) intended to take effect in possession or enjoyment, after his or her death; (c) by reason of death, any person shall become beneficially entitled in possession or expectation to any property or income thereof; or (d) held as joint owners or joint tenants by the decedent and any other person in their joint names, except such part thereof as may be shown to have originally belonged to such other person and never to have been received or acquired by the latter from the decedent for less than an adequate and full consideration in money or property, except that when such property or any part thereof, or part of the consideration with which such property was acquired, is shown to have been at any time acquired by such other person from the decedent for less than an adequate and full consideration in money or property, there shall be excepted only such part of the value of such property as is proportionate to the consideration furnished by such other person or, when any property has been acquired by gift, bequest, devise, or inheritance by the decedent and any other person as joint owners or joint tenants and their interests are not otherwise specified or fixed by law, then to the extent of the value of a fractional part to be determined by dividing the value of the property by the number of joint owners or joint tenants.

(2) For the purpose of subsection (1) of this section, if the decedent, within a period of three years ending with the date of his or her death, except in the case of a bona fide sale for an adequate and full consideration for money or money's worth, transferred an interest in property for which a federal gift tax return is required to be filed under the provisions of the Internal Revenue Code, such transfer shall be deemed to have been made in contemplation of death within the meaning of subsection (1) of this section; no such transfer made before such three-year period shall be treated as having been made in contemplation of death in any event.

(3) Proceeds of life insurance receivable by a trustee, of either an inter vivos trust or a testamentary trust, as insurance under policies upon the life of the decedent shall not be subject to inheritance tax. This subsection shall not apply if the decedent's estate is the beneficiary of the trust.

Source:Laws 1901, c. 54, § 1, p. 414; Laws 1905, c. 117, § 1, p. 523; Laws 1907, c. 103, § 1, p. 356; R.S.1913, § 6622; C.S.1922, § 6153; Laws 1923, c. 187, § 1, p. 430; C.S.1929, § 77-2201; Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2002; Laws 1945, c. 198, § 4, p. 604; Laws 1947, c. 263, § 1, p. 853; Laws 1951, c. 267, § 2, p. 899; Laws 1953, c. 282, § 1, p. 913; Laws 1955, c. 299, § 1, p. 935; Laws 1976, LB 585, § 2; Laws 1982, LB 480, § 2;    Laws 1995, LB 574, § 66;    Laws 2019, LB315, § 1.    


Annotations

77-2003. Inheritance tax; to whom paid; who liable; lien; exception.

The tax imposed upon transfers under sections 77-2001 and 77-2002 shall be paid to the treasurer of the proper county and all heirs, legatees and devisees, personal representatives, other recipients of property subject to tax, and trustees shall be liable for any and all such taxes until the same shall have been paid as hereinafter directed. This tax shall be a lien on the real property subject thereto until paid or otherwise terminated pursuant to section 77-2037, except that no interest in any property passing from the decedent to the decedent's surviving spouse shall be subject to the lien.

Source:Laws 1901, c. 54, § 1, p. 414; Laws 1905, c. 117, § 1, p. 523; Laws 1907, c. 103, § 1, p. 356; R.S.1913, § 6622; C.S.1922, § 6153; Laws 1923, c. 187, § 1, p. 430; C.S.1929, § 77-2201; Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2003; Laws 1976, LB 585, § 3; Laws 1978, LB 650, § 28;    Laws 1982, LB 480, § 3.    


Annotations

77-2004. Inheritance tax; rate; transfer to immediate relatives; exemption.

(1) In the case of a father, mother, grandfather, grandmother, brother, sister, son, daughter, child or children legally adopted as such in conformity with the laws of the state where adopted, any lineal descendant, any lineal descendant legally adopted as such in conformity with the laws of the state where adopted, any person to whom the deceased for not less than ten years prior to death stood in the acknowledged relation of a parent, or the spouse or surviving spouse of any such persons, the rate of tax shall be:

(a) For decedents dying prior to January 1, 2023, one percent of the clear market value of the property received by each person in excess of forty thousand dollars; and

(b) For decedents dying on or after January 1, 2023, one percent of the clear market value of the property received by each person in excess of one hundred thousand dollars.

(2) Any interest in property, including any interest acquired in the manner set forth in section 77-2002, which may be valued at a sum less than or equal to the applicable exempt amount under subsection (1) of this section shall not be subject to tax. In addition the homestead allowance, exempt property, and family maintenance allowance shall not be subject to tax. Interests passing to the surviving spouse by will, in the manner set forth in section 77-2002, or in any other manner shall not be subject to tax. Any interest passing to a person described in subsection (1) of this section who is under twenty-two years of age shall not be subject to tax.

Source:Laws 1901, c. 54, § 1, p. 414; Laws 1905, c. 117, § 1, p. 523; Laws 1907, c. 103, § 1, p. 356; R.S.1913, § 6622; C.S.1922, § 6153; Laws 1923, c. 187, § 1, p. 430; C.S.1929, § 77-2201; Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2004; Laws 1951, c. 267, § 3, p. 900; Laws 1953, c. 282, § 2, p. 914; Laws 1957, c. 337, § 1, p. 1174; Laws 1965, c. 497, § 1, p. 1585; Laws 1975, LB 481, § 31;    Laws 1976, LB 585, § 4; Laws 1977, LB 456, § 1;    Laws 1982, LB 480, § 4;    Laws 1988, LB 845, § 1;    Laws 1997, LB 16, § 1;    Laws 2007, LB502, § 1;    Laws 2022, LB310, § 1.    


Annotations

77-2005. Inheritance tax; rate; transfer to remote relatives; exemption.

(1) In the case of an uncle, aunt, niece, or nephew related to the deceased by blood or legal adoption, or other lineal descendant of the same, or the spouse or surviving spouse of any of such persons, the rate of tax shall be:

(a) For decedents dying prior to January 1, 2023, thirteen percent of the clear market value of the property received by each person in excess of fifteen thousand dollars; and

(b) For decedents dying on or after January 1, 2023, eleven percent of the clear market value of the property received by each person in excess of forty thousand dollars.

(2) If the clear market value of the beneficial interest is less than or equal to the applicable exempt amount under subsection (1) of this section, it shall not be subject to tax. In addition, any interest passing to a person described in subsection (1) of this section who is under twenty-two years of age shall not be subject to tax.

Source:Laws 1901, c. 54, § 1, p. 414; Laws 1905, c. 117, § 1, p. 523; Laws 1907, c. 103, § 1, p. 356; R.S.1913, § 6622; C.S.1922, § 6153; Laws 1923, c. 187, § 1, p. 430; C.S.1929, § 77-2201; Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2005; Laws 1947, c. 262, § 1, p. 851; Laws 1951, c. 267, § 4, p. 900; Laws 1959, c. 353, § 5, p. 1245; Laws 1965, c. 497, § 2, p. 1586; Laws 1976, LB 585, § 5; Laws 2007, LB502, § 2;    Laws 2022, LB310, § 2.    


Annotations

77-2005.01. Relatives of decedent; computation of inheritance tax.

(1) For the purposes of sections 77-2004 and 77-2005, relatives of the decedent shall include:

(a) Relatives of a former spouse to whom the decedent was married at the time of the death of the former spouse and relatives of a spouse to whom the decedent was married at the time of his or her death; and

(b) Relatives of a spouse or former spouse of the decedent's parent, grandparent, child, sibling, uncle, aunt, niece, or nephew, if the decedent's parent, grandparent, child, sibling, uncle, aunt, niece, or nephew was married to the spouse at the date of death of the decedent or at the date of death of such spouse.

(2) The computation of any tax due pursuant to sections 77-2004, 77-2005, and 77-2006 shall be made without regard to Nebraska inheritance tax apportionment.

Source:Laws 1976, LB 585, § 6; Laws 1977, LB 456, § 2;    Laws 2022, LB310, § 3.    


Annotations

77-2006. Inheritance tax; rate; other transfers; exemption.

(1) In all other cases the rate of tax shall be:

(a) For decedents dying prior to January 1, 2023, eighteen percent of the clear market value of the beneficial interests received by each person in excess of ten thousand dollars; and

(b) For decedents dying on or after January 1, 2023, fifteen percent of the clear market value of the beneficial interests received by each person in excess of twenty-five thousand dollars.

(2) If the clear market value of the beneficial interest is less than or equal to the applicable exempt amount under subsection (1) of this section, it shall not be subject to any tax. In addition, any interest passing to a person who is under twenty-two years of age shall not be subject to tax.

Source:Laws 1901, c. 54, § 1, p. 414; Laws 1905, c. 117, § 1, p. 523; Laws 1907, c. 103, § 1, p. 356; R.S.1913, § 6622; C.S.1922, § 6153; Laws 1923, c. 187, § 1, p. 430; C.S.1929, § 77-2201; Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2006; Laws 1947, c. 262, § 2, p. 851; Laws 1965, c. 497, § 3, p. 1586; Laws 1988, LB 845, § 2;    Laws 2007, LB502, § 3;    Laws 2022, LB310, § 4.    


Annotations

77-2007. Inheritance tax; property exempt.

If any estate includes payments under an employee benefit plan, such payments shall not be subject to Nebraska inheritance taxation to the extent that (1) the benefit is life insurance otherwise excluded from taxation pursuant to section 77-2001, or (2) the benefit is not subject to federal estate taxation pursuant to section 2039 of the Internal Revenue Code.

Source:Laws 1931, c. 132, § 1, p. 371; C.S.Supp.,1941, § 77-2201; R.S.1943, § 77-2007; Laws 1947, c. 262, § 3, p. 852; Laws 1949, c. 241, § 1, p. 654; Laws 1951, c. 268, § 1, p. 902; Laws 1971, LB 981, § 1;    Laws 1976, LB 585, § 7.


Annotations

77-2007.01. Uniform Reciprocal Transfer Tax Act; inheritance tax; when payable.

The tax imposed by Chapter 77, article 20, in respect of personal property (except tangible personal property having an actual situs in this state) shall not be payable (1) if the decedent is a resident of a state or territory of the United States which at the time of the transfer did not impose a transfer tax or death tax of any character in respect of personal property of residents of this state (except tangible personal property having an actual situs in such state or territory), or (2) if the laws of the state or territory of residence of the decedent at the time of the transfer contained a reciprocal provision under which nonresidents were exempted from transfer taxes or death taxes of every character in respect of personal property (except tangible personal property having an actual situs therein) provided the state or territory of residence of such nonresidents allowed a similar exemption to residents of the state or territory of residence of such decedent. For the purposes of this section the District of Columbia, Puerto Rico, and the Philippine Islands shall be considered territories of the United States.

Source:Laws 1951, c. 254, § 1, p. 875.


Annotations

77-2007.02. Uniform Reciprocal Transfer Tax Act; construction; citation.

Sections 77-2007.01 and 77-2007.02 shall be so interpreted and construed as to effectuate their general purpose to make uniform the law of those states which enact them. Sections 77-2007.01 and 77-2007.02 shall be known as the Uniform Reciprocal Transfer Tax Act.

Source:Laws 1951, c. 254, § 2, p. 876.


77-2007.03. Inheritance tax; property transferred to United States, state, or governmental subdivision; exempt.

Property transferred to either (1) the United States, or any of its departments, instrumentalities, or agencies, or (2) this state, or any governmental subdivision, department, agency, or instrumentality thereof, any municipal corporation or body politic created by or under the laws of Nebraska, or any agency, institution, foundation, or fund administered or operated by any of the same shall be exempt from any inheritance tax imposed by sections 77-2001 to 77-2006, and any amendments thereto.

Source:Laws 1949, c. 241, § 2, p. 655.


77-2007.04. Inheritance tax; property; religious, charitable, or educational purposes; exempt.

All bequests, legacies, devises, or gifts to or for the use of any corporation, organization, association, society, institution, or foundation, organized and operating exclusively for religious, charitable, public, scientific, or educational purposes, no part of which is owned or used for financial gain or profit, either by the owner or user, or inures to the benefit of any private stockholder or individual, or to a trustee or trustees exclusively for such religious, charitable, or educational purposes shall not be subject to any tax under the provisions of sections 77-2001 to 77-2006, and any amendments thereto, if any of the following conditions are present:

(1) Such corporation, organization, association, society, institution, or foundation is organized under the laws of this state or of the United States, or

(2) The property transferred is limited for use within this state, or

(3) In the event that the corporation, organization, association, society, institution, or foundation is organized or existing under the laws of a territory or another state of the United States or of a foreign state or country, at the date of the decedent's death either of the following occurred:

(a) The territory, other state, foreign state, or foreign country did not impose a legacy, succession, or death tax of any character in respect to property transferred to a similar corporation, organization, association, society, institution, or foundation, organized or existing under the laws of this state, or

(b) The laws of the territory, other state, foreign state, or foreign country contained a reciprocal provision under which property transferred to a similar corporation, organization, association, society, institution, or foundation, organized or existing under the laws of another territory or state of the United States or foreign state or country was exempt from legacy, succession, or death taxes of every character, if the other territory or state of the United States or foreign state or country allowed a similar exemption in respect to property transferred to a similar corporation, organization, association, society, institution, or foundation, organized or existing under the laws of another territory or state of the United States or foreign state or country.

Source:Laws 1949, c. 241, § 3, p. 655.


Annotations

77-2008. Inheritance tax; estates for life and remainder appraised and apportioned; rules and regulations; furnish to county judge.

Bequests, devises, or transfers of property or any interest therein in trust or otherwise for the life of the legatee, devisee, or transferee, or for a term, and bequests, devises, and transfers of vested or contingent remainder interests in property shall be subject to the provisions of sections 77-2001 to 77-2007.04. Such property or interests therein shall be appraised at times and in the manner provided in sections 77-2018.01 to 77-2025 at what was the fair market value thereof at the time of the death of the decedent. The portion thereof allocable to the temporary estate and the portion thereof allocable to the vested remainder estate shall be computed in accordance with such regulations with respect thereto as the state Tax Commissioner, from time to time, shall promulgate and adopt, and the Tax Commissioner is hereby directed to promulgate and adopt, from time to time, and to furnish to each county judge regulations and tables with respect thereto, based upon sound actuarial principles and prevailing interest rates.

Source:Laws 1901, c. 54, § 2, p. 415; R.S.1913, § 6623; C.S.1922, § 6154; C.S.1929, § 77-2202; R.S.1943, § 77-2008; Laws 1953, c. 282, § 3, p. 915.


Annotations

77-2008.01. Inheritance tax; estates dependent upon contingencies or conditions; rate of tax; payment; investment of proceeds; redetermination of tax.

When property is devised, bequeathed, or otherwise transferred or limited in trust or otherwise in such a manner as to be subject to the tax prescribed in sections 77-2001 to 77-2008, and the rights, interests, or estates of the transferees, legatees, devisees, or beneficiaries are dependent upon contingencies or conditions whereby they may be wholly or in part created, defeated, extended, or abridged, an inheritance tax shall be imposed upon such transfer at the highest rate which, on the happening of any of the contingencies or conditions, would be possible under the provisions of Chapter 77, article 20, or to any person, corporation, or institution payable at the time prescribed in section 77-2010; Provided, that on the happening of any contingency or condition whereby the said property, or any part thereof, is transferred to any person, corporation, or institution, exempt from taxation under the provisions of Chapter 77, article 20, or to any person, corporation, or institution as to whom or which the rate of tax is less than the rate imposed and paid, such person, corporation, or institution shall be entitled to a redetermination of the tax and to a return by the county treasurer or county treasurers of so much of the tax imposed and paid as equals the difference between the amount imposed and paid and the amount which such person, corporation, or institution should pay under Chapter 77, article 20; and provided further, that where such tax imposed and paid is held by the county treasurer or county treasurers, as provided in this section, the county court having jurisdiction is authorized and empowered to enter an order in the estate and forward a copy thereof to the county treasurer or county treasurers, directing said county treasurer or county treasurers to invest and reinvest said funds so held in United States Government bonds, United States treasury certificates, United States treasury notes, or other direct obligations of the United States Government, and interest at the rate drawn by said bonds, certificates, notes or other government obligations, as herein provided, shall be credited to the particular inheritance tax account so held. Upon redetermination of the inheritance tax, the tax refunded, if any, together with the interest received on the sum refunded, shall be paid by the county treasurer or county treasurers in a lump sum to the estate of the deceased person paying said tax, or to the person or persons found entitled thereto by the county court, and the balance of said tax, together with the interest received thereon, shall be credited by the county treasurer or county treasurers to the general inheritance tax fund of the county or counties. Where an estate for life or for a term can be divested by the act or omission of the legatee, devisee, transferee, or beneficiary it shall be taxed as if there were no possibility of such divesting.

Source:Laws 1953, c. 282, § 4, p. 915; Laws 1961, c. 389, § 1, p. 1185.


77-2008.02. Inheritance tax; estates for life and remainder; tax payable from corpus of estate without apportionment.

In cases where a trust is created or other provisions made whereby any person is given an interest in income or an estate for years, or for life, or other temporary or contingent interest in any property or fund, the tax on both such temporary or contingent interest and on the remainder thereafter shall be charged against and be paid out of the corpus of such property or fund without apportionment between remainders and temporary or contingent estates, and any refund of taxes paid out of corpus shall again become a part of the corpus of such property or fund.

Source:Laws 1953, c. 282, § 5, p. 916.


Annotations

77-2008.03. Inheritance tax; power of appointment; method and manner of taxing.

Whenever any person or corporation shall be given a power of appointment over any property by a transfer which is subject to the provisions of sections 77-2001 to 77-2008.02, whether such power is created before or after June 13, 1955, such power of appointment shall be deemed a transfer of the interest in the property which is subject to such power from the donor to the donee of such power at the date of the donor's death; Provided, if at the date of the donor's death, the power of appointment is limited, in whole or in part, to be exercised in favor of one or more specific beneficiaries or classes of beneficiaries, then, to the extent it is so limited, such power of appointment shall not be deemed a transfer from the donor to the donee of the power, but shall be deemed a transfer of the interest in the property which is subject to the power from the donor of the power to the specific beneficiary or class of beneficiaries, as of the date of the donor's death.

Source:Laws 1955, c. 301, § 1, p. 939.


Annotations

77-2008.04. Inheritance tax; power of appointment; exercise or nonexercise; not subject to tax.

The exercise or failure to exercise any power of appointment by the donee thereof, shall not be deemed a transfer which is subject to the provisions of sections 77-2001 to 77-2008.02.

Source:Laws 1955, c. 301, § 2, p. 940.


Annotations

77-2009. Inheritance tax; delay in coming into possession of property; bond for tax; exception.

(1) When property is devised, bequeathed, or otherwise transferred or limited, in trust or otherwise, in such a manner as to be subject to the tax prescribed in sections 77-2001 to 77-2008.02, and the rights, interest, or estates of the transferees, legatees, devisees, or beneficiaries are dependent upon contingencies or conditions whereby they may be wholly or in part created, defeated, extended, or abridged or when the rights of the transferees, legatees, devisees, or beneficiaries to possession or enjoyment of said property are subject to an intervening life estate or temporary estate, then and in that event any person or persons interested in such property, by giving a bond as provided for in subsection (2) of this section, with surety or sureties approved by the county judge, may elect not to pay the tax resulting from the inheritance or transfer of the uncertain, contingent, or postponed interest until the contingency has occurred, the uncertainty has been resolved, or the person against whom the tax is assessed shall have come into actual possession or enjoyment of the property.

(2) The bond referred to in subsection (1) of this section shall be filed in the county court where the estate proceedings are pending and shall bind the surety or sureties on said bond to the county where the estate proceedings are pending and to such other counties as the county judge may direct in an amount to be determined by the county judge, but not to exceed in any event two times the amount of the estimated tax. Such bond shall be conditioned upon the payment of the tax with interest by the person or persons primarily liable therefor when the contingency has occurred, the uncertainty has been resolved, or the person or persons against whom the tax has been assessed shall have come into the possession or enjoyment of said property.

(3) It is expressly provided that no bond, referred to in subsections (1) and (2) of this section, shall be required on account of the tax resulting from the inheritance or transfer of real property, which is subject to a lien for the tax involved, unless it is the desire of the owner or other person interested in said property to release any such lien against said real estate and in that event, by furnishing a bond as described in subsection (2) of this section, the lien against the real estate shall cease and said property may be transferred free from any lien arising from the inheritance tax. Interest on any such uncertain, contingent, or postponed interest in property shall be charged only at the rate used in valuing such uncertain, contingent, or postponed interest in property pursuant to regulations issued under section 77-2008.

Source:Laws 1901, c. 54, § 2, p. 415; R.S.1913, § 6623; C.S.1922, § 6154; C.S.1929, § 77-2202; R.S.1943, § 77-2009; Laws 1955, c. 300, § 1, p. 937.


77-2010. Inheritance tax; when due; interest; bond; failure to file; penalty.

All taxes imposed by sections 77-2001 to 77-2037, unless otherwise herein provided for, shall be due and payable twelve months after the date of the death of the decedent, and interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, shall be charged and collected on any unpaid taxes due from the date the same became payable, and in all cases in which the personal representatives or trustees do not pay such tax within twelve months from the death of the decedent, they shall be required to give bond in the form and to the effect prescribed in section 77-2009 for the payment of the tax together with interest. In addition, for failure to file an appropriate proceeding for the determination of the tax within twelve months after the date of the death of the decedent there shall be added to the amount due a penalty of five percent per month or fraction thereof, up to a maximum penalty of twenty-five percent of the unpaid taxes due. The filing of a petition or an application for probate proceedings or the filing of an application under section 77-2018.07 and payment of the tentative tax payment within twelve months of the decedent's death shall be considered an appropriate proceeding for the determination to avoid a penalty and to stop the accrual of a penalty. In addition, the county court may abate this penalty if good cause is shown for failure to file.

Source:Laws 1901, c. 54, § 3, p. 416; Laws 1911, c. 107, § 1, p. 386; R.S.1913, § 6624; C.S.1922, § 6155; C.S.1929, § 77-2203; R.S.1943, § 77-2010; Laws 1951, c. 267, § 5, p. 901; Laws 1976, LB 585, § 10; Laws 1978, LB 650, § 29;    Laws 1981, LB 167, § 48;    Laws 2007, LB502, § 4;    Laws 2009, LB120, § 1.    


Annotations

77-2011. Inheritance tax; distribution of property; duty of personal representative or trustee to deduct or collect tax.

Any administrator, executor or trustee having any charge or trust in legacies or property for distribution subject to said tax, shall deduct the tax therefrom, or if the legacy or property be not money, he shall collect the tax thereon upon the appraised value thereof from the legatee or person entitled to such property. He shall not deliver or be compelled to deliver any specific legacy or property subject to tax to any person until he shall have collected the tax thereon.

Source:Laws 1901, c. 54, § 4, p. 416; R.S.1913, § 6625; C.S.1922, § 6156; C.S.1929, § 77-2204; R.S.1943, § 77-2011.


Annotations

77-2012. Inheritance tax; legacy charge upon real property; duty of heir or devisee to deduct tax.

Whenever any legacy shall be charged upon or payable out of real estate, the heir or devisee before paying the same shall deduct the tax therefrom and pay the same to the executor, administrator or trustee. The tax shall remain a charge upon the real estate until paid, and the payment thereof shall be enforced by the executor, administrator or trustee in the same manner that the payment of the legacies might be enforced. If, however, the legacy be given in money to any person for a limited period, he shall retain the tax upon the whole amount, but, if it be not in money, he shall make application to the court having jurisdiction of his account to make apportionment, if the case requires it, of the sum to be paid into his hands by such legatees, and for such further order relative thereto as the case may require.

Source:Laws 1901, c. 54, § 4, p. 416; R.S.1913, § 6625; C.S.1922, § 6156; C.S.1929, § 77-2204; R.S.1943, § 77-2012.


77-2013. Inheritance tax; power of sale to raise funds to pay tax.

All executors, administrators and trustees shall have full power to sell so much of the property of the decedent as will enable them to pay the tax, in the same manner as they may be enabled to do by law for the payment of debts of their testators and intestates, and the amount of the tax shall be paid as directed by section 77-2014.

Source:Laws 1901, c. 54, § 5, p. 417; R.S.1913, § 6626; C.S.1922, § 6157; C.S.1929, § 77-2205; R.S.1943, § 77-2013.


Annotations

77-2014. Inheritance tax; payment by personal representative or trustee; where paid; receipt for tax; proper county, defined; tax apportioned among counties.

(1) Every sum of money retained by an executor, administrator, or trustee, or paid into his or her hands for any tax on any property, shall be paid by him or her within thirty days thereafter to the county treasurer of the proper county, and the county treasurer shall give, and every executor, administrator, or trustee shall take a receipt from him or her of such payments.

(2)(a) For purposes of this section, proper county shall mean the county of the decedent's residence, except (i) when the decedent had an interest in real property located in a county other than his or her residence at the time of the death of the decedent, the words proper county shall mean the county in which the real property is situated, or (ii) when the decedent had an interest in personal property subject to being listed and assessed for personal property taxation at the time of the death of the decedent, the words proper county shall mean the county where the property is listed and assessed.

(b) When the decedent is a nonresident, proper county shall mean the county provided in subdivisions (2)(a)(i) and (2)(a)(ii) of this section and, as to any other property which may be subject to Nebraska inheritance taxation, the county where such property is located.

(3) The total inheritance tax assessed against the estate shall be apportioned among the counties in the ratio that the value of the gross property subject to tax and not subject to tax under sections 77-2004, 77-2006, and 77-2007.04 located in each county bears to the gross value of all property subject to tax and not subject to tax under sections 77-2004, 77-2006, and 77-2007.04.

(4) Questions that may arise as to the proper place to list and assess such personal property for the purposes of sections 77-2001 to 77-2037 shall be determined pursuant to procedure set forth in sections 77-2018.01 to 77-2027.

Source:Laws 1901, c. 54, § 6, p. 417; Laws 1905, c. 117, § 1, p. 525; R.S.1913, § 6627; C.S.1922, § 6158; C.S.1929, § 77-2206; R.S.1943, § 77-2014; Laws 1953, c. 282, § 6, p. 916; Laws 1976, LB 585, § 13; Laws 2007, LB364, § 1.    


Annotations

77-2015. Inheritance tax; distribution of proceeds from estate; reports required; contents; department; duties.

(1) Each petitioner in a proceeding to determine inheritance tax shall, upon the entry of an order determining inheritance tax, if any, submit a report regarding inheritance taxes to the county treasurer of the county in which the inheritance tax determination was conducted. The report shall be submitted on a form prescribed by the Department of Revenue and shall include the following information:

(a) The amount of inheritance tax revenue generated under section 77-2004 and the number of persons receiving property that was subject to tax under section 77-2004 and on which inheritance tax was assessed;

(b) The amount of inheritance tax revenue generated under section 77-2005 and the number of persons receiving property that was subject to tax under section 77-2005 and on which inheritance tax was assessed;

(c) The amount of inheritance tax revenue generated under section 77-2006 and the number of persons receiving property that was subject to tax under section 77-2006 and on which inheritance tax was assessed; and

(d) The number of persons who do not reside in this state and who received any property that was subject to tax under section 77-2004, 77-2005, or 77-2006 and on which inheritance tax was assessed.

(2) The county treasurer of each county shall compile and submit a report regarding inheritance taxes generated from January 1, 2023, through June 30, 2023, to the Department of Revenue on or before August 1, 2023. Beginning July 1, 2023, the county treasurer of each county shall compile and submit a report regarding annual inheritance taxes generated from July 1 of each year through June 30 of the next year, to the Department of Revenue on or before August 1, 2024, and on or before August 1 of each year thereafter. The reports shall be submitted on a form prescribed by the Department of Revenue and shall include the following information:

(a) The amount of inheritance tax revenue generated under section 77-2004 and the number of persons receiving property that was subject to tax under section 77-2004 and on which inheritance tax was assessed;

(b) The amount of inheritance tax revenue generated under section 77-2005 and the number of persons receiving property that was subject to tax under section 77-2005 and on which inheritance tax was assessed;

(c) The amount of inheritance tax revenue generated under section 77-2006 and the number of persons receiving property that was subject to tax under section 77-2006 and on which inheritance tax was assessed; and

(d) The number of persons who do not reside in this state and who received any property that was subject to tax under section 77-2004, 77-2005, or 77-2006 and on which inheritance tax was assessed.

(3) On or before September 1, 2023, and on or before September 1 of each year thereafter, the Department of Revenue shall compile and aggregate such treasurer reports received from each county and make each county report and a statewide aggregate of such county reports available to the public on the Department of Revenue's website.

Source:Laws 2022, LB310, § 5;    Laws 2023, LB727, § 57.    
Operative Date: June 7, 2023


77-2016. Repealed. Laws 1976, LB 585, § 29.

77-2017. Inheritance tax; transfer of stocks or loans by foreign executor or administrator; tax; how paid.

Whenever any foreign executors or administrators shall assign or transfer any stocks or loans in this state standing in the name of the decedent or in trust for a decedent which shall be liable to inheritance tax, the tax shall be paid to the treasury or treasurer of the proper county on the transfer thereof. If not paid by the foreign executor or administrator, the corporation making such transfer shall become liable to pay the tax where the corporation has knowledge before the transfer that the stocks or loans are liable for such tax.

Source:Laws 1901, c. 54, § 9, p. 418; R.S.1913, § 6630; C.S.1922, § 6161; C.S.1929, § 77-2209; Laws 1931, c. 136, § 1, p. 380; C.S.Supp.,1941, § 77-2209; R.S.1943, § 77-2017; Laws 1945, c. 198, § 5, p. 605.


77-2018. Inheritance tax; erroneous payment refunded; limitation; procedure.

When any amount of inheritance tax shall have been paid erroneously to the county treasurer, he shall, upon a finding by the court and an order rendered to him of the erroneous payment, refund and pay to the executor, administrator or trustee, person or persons who have paid any such tax in error the amount of such tax so paid. All applications for the repayment of the tax shall be made to the county court within two years of the date of payment. The county court shall hear all evidence relevant to its finding whether or not any amount of inheritance tax has been erroneously paid and if any refund of such payment is due. The court shall notify the county treasurer of its final determination.

Source:Laws 1901, c. 54, § 10, p. 418; Laws 1905, c. 117, § 1, p. 525; R.S.1913, § 6631; C.S.1922, § 6162; C.S.1929, § 77-2210; R.S.1943, § 77-2018; Laws 1976, LB 585, § 14.


Annotations

77-2018.01. Inheritance tax; proceedings for determination.

(1) The inheritance tax, if any, imposed under sections 77-2001 to 77-2037 may be determined either (a) in any proceedings brought under the provisions of Chapter 30, article 24 or 25, or (b) in a proceeding instituted for the sole purpose of determining such tax.

(2) Proceedings for determination of the tax may be initiated either (a) by order of the county court before which any proceeding is pending, (b) by application of the personal representative, (c) by application of the county attorney, or (d) by application of any person having a legal interest in the property involved in the determination of the tax.

Source:Laws 1949, c. 242, § 1, p. 657; Laws 1953, c. 282, § 7, p. 917; Laws 1965, c. 498, § 1, p. 1587; Laws 1975, LB 481, § 32.    


Annotations

77-2018.02. Inheritance tax; independent proceeding for determination in absence of probate of estate; petition; notice; waiver of notice; notice to Department of Health and Human Services.

(1) In the absence of any proceeding brought under Chapter 30, article 24 or 25, in this state, an independent proceeding for the sole purpose of determining the tax may be instituted in the county court of the county where the property or any part thereof which might be subject to tax is situated.

(2) Upon the filing of a petition to initiate such an independent proceeding, the county court shall order the petition set for hearing, not less than two nor more than four weeks after the date of filing the petition, and shall cause notice thereof to be given to all persons interested in the estate of the deceased and the property described in the petition, except as provided in subsections (4) and (5) of this section, in the manner provided for in subsection (3) of this section.

(3) The notice, provided for by subsection (2) of this section, shall be given by one publication in a legal newspaper of the county or, in the absence of such legal newspaper, then in a legal newspaper of some adjoining county of general circulation in the county. In addition to such publication of notice, personal service of notice of the hearing shall be had upon the county attorney of each county in which the property described in the petition is located, at least one week prior to the hearing.

(4) If it appears to the county court, upon the filing of the petition, by any person other than the county attorney, that no assessment of inheritance tax could result, it shall forthwith enter thereon an order directing the county attorney to show cause, within one week from the service thereof, why determination should not be made that no inheritance tax is due on account of the property described in the petition and the potential lien thereof on such property extinguished. Upon service of such order to show cause and failure of such showing by the county attorney, notice of such hearing by publication shall be dispensed with, and the petitioner shall be entitled without delay to a determination of no tax due on account of the property described in the petition, and any potential lien shall be extinguished.

(5) If it appears to the county court that (a) the county attorney of each county in which the property described in the petition is located has executed a waiver of notice upon him or her to show cause, or of the time and place of hearing, and has entered a voluntary appearance in such proceeding in behalf of the county and the State of Nebraska, and (b) either (i) all persons against whom an inheritance tax may be assessed are either a petitioner or have executed a waiver of notice upon them to show cause, or of the time and place of hearing, and have entered a voluntary appearance, or (ii) a party to the proceeding has agreed to pay to the proper counties the full inheritance tax so determined, the court may dispense with the notice provided for in subsections (2) and (3) of this section and proceed without delay to make a determination of inheritance tax, if any, due on account of the property described in the petition.

(6) If a petition is filed to initiate an independent proceeding under this section and the decedent was fifty-five years of age or older or resided in a medical institution as defined in subsection (1) of section 68-919, notice of the filing of such petition shall be provided to the Department of Health and Human Services with the decedent's social security number and, if the decedent was predeceased by a spouse, the name and social security number of such spouse. A certificate of the providing of the notice to the department shall be filed in the independent proceeding by an attorney for the petitioner or, if there is no attorney, by the petitioner, prior to the entry of an order pursuant to this section. The notice shall be provided to the department in a delivery manner and at an address designated by the department, which manner may include email. The department shall post the acceptable manner of delivering notice on its website. Any notice that fails to conform with such manner is void.

Source:Laws 1953, c. 282, § 8, p. 917; Laws 1959, c. 375, § 1, p. 1314; Laws 1969, c. 682, § 1, p. 2609; Laws 1975, LB 481, § 33;    Laws 1976, LB 585, § 15; Laws 1977, LB 456, § 3;    Laws 2015, LB72, § 5;    Laws 2017, LB268, § 16;    Laws 2019, LB315, § 2;    Laws 2019, LB593, § 10.    


Annotations

77-2018.03. Inheritance tax; determination; notice served upon county attorney; duty of county attorney.

In all matters involving the determination of inheritance tax, notice served upon the county attorney shall constitute notice to the county and the State of Nebraska. It shall be the duty of the county attorney to represent the county and the State of Nebraska in such matters as its attorney. In so representing the county and the State of Nebraska, the county attorney is authorized, in addition to such other powers as he normally may exercise as attorney for the county, to enter into and bind the county and the State of Nebraska by stipulation as to any facts which could be presented by evidence to either the inheritance tax appraiser or the county court, and to waive service of notices upon him to show cause or of the time and place of hearing, and to enter a voluntary appearance in such proceeding, in behalf of the county and the State of Nebraska.

Source:Laws 1953, c. 282, § 9, p. 918.


Annotations

77-2018.04. Inheritance tax; proceedings for determination of; deductions allowed; enumerated.

In all proceedings for the determination of inheritance tax, the following deductions from the value of the property subject to Nebraska inheritance taxation shall be allowed to the extent paid from, chargeable to, paid, payable, or expected to become payable with respect to property subject to Nebraska inheritance taxation:

(1) The cost of the funeral of the decedent, including costs for interment and gravesite marker;

(2) All expenses of administration which accrue as a result of the death of the decedent, including, but not limited to, attorney's fees, court costs, and expenses concerning property not subject to probate, and expenses related to taking possession or control of estate assets and the management, protection, and preservation of estate assets, including, but not limited to, expenses related to the sale of estate assets, but not expenses related to the day-to-day operation and continuation of business interests which have not accrued as a result of the death of the decedent;

(3) All expenses of the last illness of the decedent which were incurred within six months of the death of the decedent;

(4) All other debts upon which the decedent was liable for payment at the date of his or her death and which have been paid; and

(5) Any federal estate tax paid, payable, or expected to become payable, after deduction of all applicable credits, which is attributable to property subject to Nebraska inheritance taxation.

Source:Laws 1976, LB 585, § 8; Laws 1977, LB 456, § 4;    Laws 1987, LB 125, § 1;    Laws 2009, LB120, § 2.    


77-2018.05. Inheritance tax; court may make final determination of; how determined.

Notwithstanding sections 77-2001 to 77-2039, the court shall have the authority, upon the written application of any of the parties subject to the tax imposed under such sections, to determine a final inheritance tax on any property devised, bequeathed, or otherwise transferred, based upon the probabilities at the time of the decedent's death rather than taxing the property at the rates specified in such sections.

Source:Laws 1976, LB 585, § 9; Laws 1987, LB 125, § 2.    


77-2018.06. Inheritance tax; property received by decedent from prior decedent; credit against tax; how computed.

If the decedent had received property from another person who died within five years prior to the death of the decedent upon which Nebraska inheritance tax was paid because of the death of the prior decedent, such tax so paid shall be a credit against the amount of inheritance tax, if any, assessed against the recipients of property from the estate of the decedent. Each recipient shall receive a prorated credit based upon such recipient's proportionate share of the total property of the decedent subject to Nebraska inheritance tax.

Source:Laws 1976, LB 585, § 11.


77-2018.07. Inheritance tax; tentative payment of tax; when; application; consent of county attorney required; procedure for payment of tentative tax.

(1) Any person subject to the tax imposed by sections 77-2001 to 77-2037 may, prior to the final determination of the inheritance tax, make a tentative payment of the tax in order to avoid the accrual of interest or penalty on such tax. Any person who desires to pay such tentative inheritance tax shall make a written application to the county court for an order allowing the payment of a sum specified in such application, prior to the final determination of the inheritance tax due.

(2) If the county attorney shall not consent to the amount requested in the application by entering his or her voluntary appearance and waiver of notice, he or she shall within seven days of the filing of the application show in writing what sum he or she requests for the purpose of the prepayment. The county court shall issue an order allowing a tentative payment of the tax in such amount as the court shall specify.

(3) The county treasurer shall receive all taxes paid pursuant to this section but shall not be required to invest any tentative tax payment made for the benefit of the estate nor shall the county treasurer be required to pay interest on any refund claim for the period he or she holds the tentative tax payment.

(4) The tentative tax payment allowed in this section shall apply to both probate and nonprobate estates. The tentative tax payment shall not be a final order and may be amended, altered, or modified by subsequent order of the court.

Source:Laws 1976, LB 585, § 12; Laws 2009, LB120, § 3.    


77-2019. Inheritance tax; appraisal; appointment of appraisers.

In order to fix the value of property subject to the payment of the inheritance tax, the county judge may appoint a clerk magistrate or some other competent person, or the clerk magistrate may appoint a competent person, as appraiser as often as or whenever occasion may require, except that when real estate is to be appraised by a competent person other than a county judge or a clerk magistrate, the county judge or clerk magistrate shall appoint a credentialed real property appraiser, but if the county judge or clerk magistrate finds that no credentialed real property appraiser is a disinterested freeholder of the county, some other competent person may be appointed.

Source:Laws 1901, c. 54, § 11, p. 418; Laws 1907, c. 104, § 1, p. 359; R.S.1913, § 6632; Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2019; Laws 1949, c. 242, § 2, p. 657; Laws 1976, LB 585, § 16; Laws 1987, LB 601, § 9;    Laws 1990, LB 1153, § 63;    Laws 1991, LB 203, § 57;    Laws 1994, LB 1107, § 50;    Laws 2006, LB 778, § 72.    


Annotations

77-2020. Inheritance tax; appraisement; duty of appraiser; objections; hearing on report.

It shall be the duty of an appraiser appointed under section 77-2019 forthwith to give such notice by mail or personally to all interested persons as the court may by order direct, of the time and place he will appraise such property. At such time and place he shall appraise the property at the fair market value of the same, and for that purpose the appraiser is authorized by leave of the court to issue subpoenas and to compel the attendance of witnesses before him, and to take the evidence of such witnesses under oath concerning such property, and the value thereof. He shall make a report thereof and of such value in writing to the court with the depositions of the witnesses and such other facts relating thereto as the court may by order require, to be filed with the records of the county court. Any person interested may file objections to such report within five days after the report is filed with the court. The judge of the county court shall examine the appraiser's report and any objections thereto, and may, at his discretion, take further evidence and shall enter an order fixing the proper appraisal of the property.

Source:Laws 1901, c. 54, § 11, p. 418; Laws 1907, c. 104, § 1, p. 359; R.S.1913, § 6632; Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2020; Laws 1951, c. 269, § 1, p. 903; Laws 1976, LB 585, § 17.


Annotations

77-2021. Inheritance tax; appraisement; county judge as appraiser.

Instead of appointing an appraiser, the county judge may by order fix a day and give notice to all interested parties and at such time appraise the property at the fair market value of the same.

Source:Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2021.


Annotations

77-2022. Inheritance tax; appraisement; determination and assessment of tax.

When the value of the property has been fixed, as provided in section 77-2020 or 77-2021, the county judge shall determine and assess the tax to which the same is liable.

Source:Laws 1901, c. 54, § 11, p. 418; Laws 1907, c. 104, § 1, p. 359; R.S.1913, § 6632; Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2022; Laws 1951, c. 269, § 2, p. 903.


Annotations

77-2023. Inheritance tax; appeal; procedure.

An appeal may be taken from the determination of the tax due made by the county court to the Court of Appeals in the same manner as an appeal from district court to the Court of Appeals.

An appeal may be taken by any party and may also be taken by any person against whom the final judgment or final order may be made or who may be affected thereby.

Source:Laws 1901, c. 54, § 11, p. 418; Laws 1907, c. 104, § 1, p. 359; R.S.1913, § 6632; Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2023; Laws 1951, c. 269, § 3, p. 903; Laws 1981, LB 42, § 26;    Laws 1995, LB 538, § 9.    


Annotations

77-2024. Inheritance tax; appraisement; costs; fees; charged to estate of decedent.

The appraisers shall be paid a reasonable fee to be fixed by the county judge, together with mileage at the rate provided in section 81-1176 for state employees. Witnesses shall be allowed the sum of ten dollars per day for every day's attendance at an appraisal hearing, together with mileage at the rate provided in section 81-1176 for state employees. The officer serving process under sections 77-2001 to 77-2037 shall receive the same fees as are now provided by law for similar services with mileage to be computed at the rate provided in section 33-117 for county sheriffs. When it is determined that an inheritance tax is due, all costs made or incurred in the determination and assessment of inheritance tax, including appraiser's fees, shall be charged to the estate of the decedent.

Source:Laws 1901, c. 54, § 11, p. 418; Laws 1907, c. 104, § 1, p. 359; R.S.1913, § 6632; Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2024; Laws 1953, c. 282, § 10, p. 919; Laws 1959, c. 376, § 2, p. 1316; Laws 1976, LB 585, § 18; Laws 1981, LB 204, § 152.    


77-2025. Inheritance tax; estate not subject to tax; determination.

If it shall be made to appear to the county judge in either probate proceedings or an independent proceeding for the determination of such tax that an estate is not subject to such inheritance tax, the county judge may so determine, and such finding and order shall be made a part of the final decree in said estate or proceeding.

Source:Laws 1915, c. 113, § 1, p. 262; C.S.1922, § 6163; C.S.1929, § 77-2211; R.S.1943, § 77-2025; Laws 1949, c. 242, § 3, p. 657.


77-2026. Inheritance tax; appraiser; extra fee or reward; penalty.

Any appraiser appointed under the authority and by virtue of section 77-2019 who shall take any fee or reward from any executor, administrator, trustee, legatee, next of kin or heir of any decedent, or from any person or corporation liable to pay such tax or any portion thereof, shall be guilty of a Class IV misdemeanor, and in addition thereto the county judge shall dismiss him from such service.

Source:Laws 1901, c. 54, § 12, p. 419; R.S.1913, § 6633; C.S.1922, § 6164; C.S.1929, § 77-2212; R.S.1943, § 77-2026; Laws 1977, LB 39, § 228.    


77-2027. Inheritance tax; what court has jurisdiction; transfer of proceedings.

The county court in the county in which the real property is situated of a decedent who was not a resident of the state, or in the county of which the deceased was a resident at the time of his death, shall have jurisdiction to hear and determine all questions in relation to all taxes arising under sections 77-2001 to 77-2037. If a court finds that in the interest of justice a proceeding or a file should be located in another county court of this state, the court making the finding may transfer the proceeding or file to the other court.

Source:Laws 1901, c. 54, § 13, p. 420; R.S.1913, § 6634; C.S.1922, § 6165; C.S.1929, § 77-2213; R.S.1943, § 77-2027; Laws 1976, LB 585, § 19.


Annotations

77-2028. Inheritance tax; nonpayment; hearing; judgment; levy and execution.

If it shall appear to the county court that any tax accruing under sections 77-2001 to 77-2037 has not been paid according to law, after a determination thereof has been made in either probate proceedings or an independent proceeding for determination of such tax, it shall issue a summons commanding the persons or corporations liable to pay such tax or interested in such property to appear before the court on a certain day, not more than three months after the date of such summons, to show cause why such tax should not be paid. After a hearing, pursuant to this section, the court may proceed to a judgment against any person liable for the inheritance tax and such judgment shall be a lien against any person adjudged liable to pay such tax. The county attorney shall proceed to levy an execution of such lien before the county court and such court may issue an order for the levy and execution against the person adjudged liable.

Source:Laws 1901, c. 54, § 14, p. 420; R.S.1913, § 6635; C.S.1922, § 6166; C.S.1929, § 77-2214; R.S.1943, § 77-2028; Laws 1949, c. 242, § 4, p. 658; Laws 1951, c. 270, § 1, p. 904; Laws 1976, LB 585, § 20.


77-2029. Inheritance tax; nonpayment; notification of county attorney; institution of proceeding to collect.

Whenever the treasurer of any county shall have reason to believe that any tax under sections 77-2001 to 77-2037 is due and unpaid after such taxes have been determined and assessed or after the refusal or neglect of the person interested in the property liable to pay said tax to pay the same, he shall notify the county attorney of the proper county in writing every three months of such refusal to pay the tax. The county attorney so notified, if he has cause to believe a tax is due and unpaid, shall prosecute the proceeding in the county court in the proper county, as provided in section 77-2028 for the enforcement and collection of this tax.

Source:Laws 1901, c. 54, § 15, p. 420; R.S.1913, § 6636; C.S.1922, § 6167; C.S.1929, § 77-2215; R.S.1943, § 77-2029; Laws 1976, LB 585, § 21.


77-2030. Inheritance tax; annual statements.

The county judge and county clerk of each county shall annually make a statement in writing to the county attorney of the county, of the party from which or the party from whom they have reason to believe a tax under sections 77-2001 to 77-2037 is due and unpaid.

Source:Laws 1901, c. 54, § 16, p. 421; R.S.1913, § 6637; C.S.1922, § 6168; C.S.1929, § 77-2216; R.S.1943, § 77-2030; Laws 1976, LB 585, § 22.


77-2031. Repealed. Laws 1953, c. 283, § 1.

77-2032. Inheritance tax; how credited.

All inheritance tax money received or collected by each county shall be credited by resolution of the county board in whole or in part either to the county general fund or to any other fund of the county selected by the county board.

Source:Laws 1905, c. 117, § 1, p. 525; Laws 1913, c. 14, § 1, p. 76; R.S.1913, § 6639; C.S.1922, § 6170; C.S.1929, § 77-2218; Laws 1933, c. 83, § 1, p. 332; Laws 1937, c. 177, § 1, p. 704; Laws 1941, c. 156, § 1, p. 604; C.S.Supp.,1941, § 77-2218; R.S.1943, § 77-2032; Laws 1959, c. 377, § 1, p. 1317; Laws 1961, c. 390, § 1, p. 1187; Laws 1965, c. 499, § 1, p. 1588; Laws 1982, LB 480, § 5.    


Annotations

77-2033. Repealed. Laws 1982, LB 480, § 9.

77-2034. Repealed. Laws 1982, LB 480, § 9.

77-2035. Repealed. Laws 1982, LB 480, § 9.

77-2036. Repealed. Laws 1982, LB 480, § 9.

77-2037. Inheritance tax; lien; expiration.

Regardless of any defect in the proceedings in which such inheritance tax was determined, or the jurisdiction of the court to make such determination, the lien of the inheritance tax shall cease upon the first to occur of: (1) Ten years from the date of death of a decedent and no action shall be maintained for the determination, assessment or collection of such tax, unless a determination of the amount of such tax by the court having jurisdiction thereof shall have been made within such ten-year period, in which case such lien and the right to maintain any action for the assessment or collection of any tax shall cease five years after such determination or upon payment of such tax, whichever first occurs; (2) the payment of the amount of inheritance tax finally determined by the county court to be due with respect to property described in such proceedings; or (3) the release or discharge of any lien pursuant to section 77-2039.

Source:Laws 1901, c. 54, § 21, p. 422; R.S.1913, § 6641; Laws 1921, c. 163, § 1, p. 656; C.S.1922, § 6172; C.S.1929, § 77-2220; Laws 1943, c. 191, § 1, p. 645; R.S.1943, § 77-2037; Laws 1953, c. 282, § 11, p. 919; Laws 1973, LB 210, § 2;    Laws 1974, LB 664, § 1;    Laws 1976, LB 585, § 23; Laws 1977, LB 456, § 5;    Laws 1978, LB 650, § 30.    


Annotations

77-2038. Inheritance tax; decedent's will may direct apportionment of taxes; inter vivos instrument.

Notwithstanding the provisions of Chapter 77, article 20, the decedent's will may provide direction for the apportionment of the taxes assessed upon any of the decedent's property subject to Nebraska inheritance tax or any written instrument executed inter vivos by the decedent may provide direction for the apportionment of the taxes assessed upon any property subject to Nebraska inheritance tax for the property dealt with in such inter vivos instrument.

Source:Laws 1976, LB 585, § 26.


77-2039. Inheritance, estate, or generation-skipping transfer tax lien; court may discharge property subject to tax; terms and conditions; application for release or discharge; show cause.

(1) Any county court may issue an order discharging any or all of the property subject to any inheritance tax, Nebraska estate tax, or generation-skipping transfer tax lien.

(2) The county court may prescribe the terms and conditions upon which any inheritance tax, estate tax, or generation-skipping transfer tax lien shall be released or discharged.

(3) Any person who desires a release or discharge of any inheritance tax, estate tax, or generation-skipping transfer tax lien shall make a written application to the county court. If the county attorney shall not consent to the release or discharge of the lien as requested in the application by entering his or her voluntary appearance and waiver of notice, he or she shall within seven days of the filing of such application show in writing why such release or discharge should not be granted or shall specify the terms and conditions upon which such release or discharge should be allowed.

Source:Laws 1976, LB 585, § 27; Laws 1980, LB 694, § 12; Laws 1992, LB 1004, § 2.


Annotations

77-2040. Inheritance tax; estate tax; decedent dying after December 31, 1982; provisions applicable; changes applicable January 1, 2008.

Sections 77-2002 to 77-2004 and 77-2102 shall become operative on December 31, 1982, and shall apply to all property which passes from a decedent dying after such date. Sections 77-2001, 77-2032, and 77-2106 shall become operative on July 17, 1982. The changes made in sections 77-2004 to 77-2006 by Laws 2007, LB 502, apply to all property which passes from a decedent dying on or after January 1, 2008. The changes made to section 77-2010 by Laws 2007, LB 502, apply to decedents dying on or after January 1, 2008.

Source:Laws 1982, LB 480, § 8;    Laws 2007, LB502, § 5.    


77-2101. Terms, defined.

For purposes of sections 77-2101 to 77-2116:

(1) Estate tax means the tax due to the state under section 77-2101.01;

(2) Generation-skipping transfer tax means the tax due to the state under section 77-2101.02;

(3) Nebraska taxable estate means the federal taxable estate, as determined under Chapter 11 of the Internal Revenue Code, minus one million dollars;

(4) Nebraska taxable transfer means the federal taxable transfer, as determined under Chapter 13 of the Internal Revenue Code, minus one million dollars; and

(5) Transfer tax means the estate tax and generation-skipping transfer tax.

Source:Laws 1992, LB 1004, § 5; Laws 1995, LB 574, § 67;    Laws 2002, LB 905, § 1.    


77-2101.01. Estate tax; amount.

(1) In addition to the inheritance taxes imposed by the laws of the State of Nebraska, there is levied and imposed an estate or excise tax for all decedents dying before January 1, 2007, upon the transfer of the estate of every resident decedent and upon the value of any interest in Nebraska real estate and tangible personal property situated in Nebraska of a nonresident decedent.

(2) For decedents dying before January 1, 2003, the amount of such tax shall be the maximum state tax credit allowance upon the tax imposed by Chapter 11 of the Internal Revenue Code reduced by the lesser of (a) the aggregate amount of all estate, inheritance, legacy, or succession taxes paid to any state or territory, the District of Columbia, or any possession of the United States in respect of any property subject to such tax or (b) the sum of (i) the amount determined by multiplying the maximum state tax credit allowance with respect to the taxable transfer by the percentage which the gross value of the transferred property not situated in Nebraska bears to the gross value of the transferred property and (ii) the amount of Nebraska inheritance taxes paid.

(3) For all decedents dying on or after January 1, 2003, and before January 1, 2007, (a) for the estate of every resident decedent, the amount of such tax shall be the amount calculated in section 77-2101.03 reduced by the percentage which the gross value of the transferred property not situated in Nebraska bears to the gross value of the transferred property minus the amount of Nebraska inheritance taxes paid, and (b) for the estate of every nonresident decedent, the amount of such tax shall be the amount calculated in section 77-2101.03 multiplied by the percentage which the gross value of the transferred property situated in Nebraska bears to the gross value of the transferred property minus the amount of Nebraska inheritance taxes paid.

Source:Laws 1955, c. 302, § 2, p. 941; Laws 1976, LB 585, § 24; Laws 1978, LB 650, § 31;    Laws 1992, LB 1004, § 3; Laws 1995, LB 574, § 68;    Laws 2002, LB 905, § 2;    Laws 2005, LB 499, § 1;    Laws 2007, LB367, § 6.    


Annotations

77-2101.02. Generation-skipping transfer tax; amount.

For all generation-skipping transfers occurring before January 1, 2007, there is hereby imposed a generation-skipping transfer tax upon the generation-skipping transfer or distribution of property of every resident of this state and upon the generation-skipping transfer of Nebraska real estate and tangible personal property situated in Nebraska by a nonresident. The amount of the generation-skipping transfer tax shall be the amount calculated in section 77-2101.03 reduced by the lesser of (1) the aggregate amount of all transfer taxes paid to any state or territory, the District of Columbia, or any possession of the United States in respect of any property subject to the generation-skipping transfer tax or (2) the amount determined by multiplying the amount calculated in section 77-2101.03 with respect to the taxable transfer by the percentage which the gross value of the transferred property not situated in Nebraska bears to the gross value of the transferred property.

Source:Laws 1992, LB 1004, § 4; Laws 1993, LB 345, § 12;    Laws 1995, LB 574, § 69;    Laws 2002, LB 905, § 3;    Laws 2007, LB367, § 7.    


77-2101.03. Tax; calculation.

(1) For decedents dying on or after January 1, 2003, and before July 1, 2003, the tax on the Nebraska taxable estate shall be the greater of the maximum state tax credit allowance upon the tax imposed under Chapter 11 of the Internal Revenue Code or the amount provided in the following table:

Nebraska taxable estate Of Excess
At least But less than Tax = + % Over
$0 $40,000 $0 0 $0
40,000 90,000 0 .8 40,000
90,000 140,000 400 1.6 90,000
140,000 240,000 1,200 2.4 140,000
240,000 440,000 3,600 3.2 240,000
440,000 640,000 10,000 4 440,000
640,000 840,000 18,000 4.8 640,000
840,000 1,040,000 27,600 5.6 840,000
1,040,000 1,540,000 38,800 6.4 1,040,000
1,540,000 2,040,000 70,800 7.2 1,540,000
2,040,000 2,540,000 106,800 8 2,040,000
2,540,000 3,040,000 146,800 8.8 2,540,000
3,040,000 3,540,000 190,800 9.6 3,040,000
3,540,000 4,040,000 238,800 10.4 3,540,000
4,040,000 5,040,000 290,800 11.2 4,040,000
5,040,000 6,040,000 402,800 12 5,040,000
6,040,000 7,040,000 522,800 12.8 6,040,000
7,040,000 8,040,000 650,800 13.6 7,040,000
8,040,000 9,040,000 786,800 14.4 8,040,000
9,040,000 10,040,000 930,800 15.2 9,040,000
10,040,000 1,082,800 16 10,040,000

(2) For decedents dying on or after July 1, 2003, and before January 1, 2007, the tax on the Nebraska taxable estate shall be the greater of the maximum state tax credit allowance upon the tax imposed under Chapter 11 of the Internal Revenue Code or the amount provided in the following table:

Nebraska taxable estate Of Excess
At least But less than Tax = + % Over
$0 $100,000 $0 5.6 $0
100,000 500,000 5,600 6.4 100,000
500,000 1,000,000 31,200 7.2 500,000
1,000,000 1,500,000 67,200 8 1,000,000
1,500,000 2,000,000 107,200 8.8 1,500,000
2,000,000 2,500,000 151,200 9.6 2,000,000
2,500,000 3,000,000 199,200 10.4 2,500,000
3,000,000 3,500,000 251,200 11.2 3,000,000
3,500,000 4,000,000 307,200 12 3,500,000
4,000,000 5,000,000 367,200 12.8 4,000,000
5,000,000 6,000,000 495,200 13.6 5,000,000
6,000,000 7,000,000 631,200 14.4 6,000,000
7,000,000 8,000,000 775,200 15.2 7,000,000
8,000,000 9,000,000 927,200 16 8,000,000
9,000,000 1,087,200 16.8 9,000,000

(3) Taxable generation-skipping transfers shall be taxed at a rate of sixteen percent of the Nebraska taxable transfer.

Source:Laws 2002, LB 905, § 4;    Laws 2003, LB 283, § 2;    Laws 2003, LB 759, § 2;    Laws 2004, LB 1034, § 1;    Laws 2007, LB367, § 8.    


77-2102. Tax; when due; who liable; interest; lien; exception.

The transfer tax imposed under sections 77-2101 to 77-2116 shall become due and payable to the State Treasurer within twelve months from the date of the death of the decedent in the case of the estate tax and the date of the transfer in the case of the generation-skipping transfer tax. The limitation of time during which a tax return, for the purpose of the transfer tax, shall be open to inspection and examination shall be three years from the date of filing the return. Personal representatives, trustees, grantees, donees, beneficiaries, transferees, surviving joint owners, and other recipients of property subject to tax shall be and remain liable for the tax until it is paid. If the tax indicated by the return of the taxpayer is not paid when due, interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, shall be charged and collected from the date the same became payable. The transfer tax shall be a lien on the real property subject thereto until the first to occur of: (1) Payment; (2) ten years from the date of death of the decedent; or (3) the release or discharge of any lien pursuant to section 77-2039, except that no interest in any property passing from the decedent to the decedent's surviving spouse shall be subject to the lien.

Source:Laws 1929, c. 73, § 2, p. 254; C.S.1929, § 77-2302; Laws 1931, c. 129, § 1, p. 363; Laws 1937, c. 175, § 2, p. 690; C.S.Supp.,1941, § 77-2302; R.S.1943, § 77-2102; Laws 1955, c. 302, § 3, p. 942; Laws 1976, LB 585, § 25; Laws 1978, LB 650, § 32;    Laws 1981, LB 167, § 49;    Laws 1982, LB 480, § 6;    Laws 1984, LB 962, § 4;    Laws 1992, LB 1004, § 6; Laws 1992, Fourth Spec. Sess., LB 1, § 19;    Laws 2002, LB 905, § 5.    


77-2103. Repealed. Laws 2005, LB 499, § 3.

77-2104. Tax; net transfer; follow federal rules and regulations.

The rules and regulations for determining the amount of net transfer upon which the transfer or excise tax imposed under sections 77-2101 to 77-2116 shall be based, shall, insofar as applicable, be the same rules and regulations adopted by the Commissioner of Internal Revenue for determining the net transfer under Chapters 11 and 13 of the Internal Revenue Code.

Source:Laws 1929, c. 73, § 4, p. 254; C.S.1929, § 77-2304; R.S.1943, § 77-2104; Laws 1984, LB 962, § 6;    Laws 1992, LB 1004, § 8; Laws 1995, LB 574, § 71;    Laws 2002, LB 905, § 7.    


77-2105. Tax; administration; information and returns; penalty.

The Tax Commissioner shall have charge of the administration of sections 77-2101 to 77-2116 and shall make such rules and regulations as may be necessary to carry out such sections. He or she shall have authority to require all persons or corporations liable for the payment of the transfer or excise tax to file returns on such forms and at such times as he or she may require. The county attorneys of the state shall furnish the commissioner with such information as he or she may require from time to time with reference to estates pending in the county courts of Nebraska. Any person or corporation who fails to furnish the commissioner with such information or reports as he or she requires under such sections shall be guilty of a Class V misdemeanor.

Source:Laws 1929, c. 73, § 5, p. 255; C.S.1929, § 77-2305; R.S.1943, § 77-2105; Laws 1977, LB 39, § 229;    Laws 1984, LB 962, § 7;    Laws 1992, LB 1004, § 9; Laws 2002, LB 905, § 8.    


77-2106. Tax; proceeds; credited to General Fund.

All the proceeds from the levy and imposition of the transfer or excise tax shall be paid to the Tax Commissioner who shall remit the proceeds to the State Treasurer for credit to the General Fund.

Source:Laws 1929, c. 73, § 6, p. 255; C.S.1929, § 77-2306; Laws 1937, c. 175, § 1, p. 689; C.S.Supp.,1941, § 77-2306; R.S.1943, § 77-2106; Laws 1949, c. 229, § 5, p. 637; Laws 1949, c. 243, § 3, p. 660; Laws 1975, LB 233, § 1;    Laws 1982, LB 480, § 7;    Laws 1992, LB 1004, § 10.


77-2106.01. Tax; refunds; interest; claim.

When any amount of transfer tax in excess of that legally due has been paid to the State Treasurer, the party making such overpayment or his or her successors or assigns shall be entitled to refund of such overpayment plus interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted. All claims for refund on account of the overpayment of transfer taxes shall be filed with the Tax Commissioner within four years after the date of such overpayment or within one year of a change in the amount of federal tax due, whichever is later. If any overpayment of transfer tax is refunded within ninety days after the last day prescribed for filing the original return of such tax or ninety days after the date on which the original return was filed, if later, no interest shall be allowed under this section on the overpayment. If the Tax Commissioner rejects or disallows any such claim in whole or in part, action in the district courts shall be permitted in accordance with sections 25-21,201 to 25-21,218.

Source:Laws 1949, c. 243, § 1, p. 659; Laws 1985, LB 273, § 39;    Laws 1991, LB 9, § 1;    Laws 1992, LB 1004, § 11; Laws 1992, Fourth Spec. Sess., LB 1, § 20;    Laws 1993, LB 345, § 13.    


Annotations

77-2106.02. Tax; refund; Tax Commissioner; issue certificate; effect.

The Tax Commissioner, upon satisfactory proof rendered to him or her of the overpayment of transfer tax in any case, shall issue a certificate of the amount of such overpayment and the party entitled to a refund on account of such overpayment. Such certificate shall constitute prima facie evidence of such overpayment and the person or persons entitled to a refund on account of such payment.

Source:Laws 1949, c. 243, § 3, p. 659; Laws 1992, LB 1004, § 12.


77-2106.03. Repealed. Laws 1991, LB 9, § 8.

77-2107. Repealed. Laws 1980, LB 834, § 66.

77-2108. Apportionment and proration of tax; basis.

Whenever it appears upon any accounting or in any appropriate action or proceeding that a personal representative, executor, administrator, trustee, or other person acting in a fiduciary capacity has paid or may be required to pay any transfer tax levied or assessed under sections 77-2101 to 77-2116 or under the provisions of any federal estate or generation-skipping transfer tax law heretofore or hereafter enacted upon or with respect to any property required to be included in the gross estate of a decedent or total amount of generation-skipping transfer under the provisions of any such law, the amount of the tax so paid or payable, except as otherwise directed in the decedent's will or except in a case when by written instrument executed inter vivos direction is given for apportionment within the fund of the taxes assessed upon the specific fund dealt with in such inter vivos instrument, shall be equitably apportioned and prorated among the persons interested in the estate or transfer. Such apportionment and proration shall be made in the proportion as near as may be that the value of the property, interest, or benefit of each such person bears to the total value of the property, interests, or benefits received by all such persons interested in the estate or transfer, except that in making such proration, allowances shall be made for any exemptions granted by the law imposing the tax and for any deductions, including any marital deduction, allowed by such law for the purpose of arriving at the value of the net estate or transfer. In cases when a trust is created or other provision made by which any person is given an interest in income or an estate for years or for life or any other temporary interest in any property or fund, the tax on both such temporary interest and on the remainder thereafter shall be charged against and be paid out of the corpus of such property or fund without apportionment between remainders and temporary estates.

Source:Laws 1949, c. 222, § 1, p. 624; Laws 1953, c. 95, § 3, p. 270; Laws 1992, LB 1004, § 13; Laws 2002, LB 905, § 9.    


Annotations

77-2109. Tax; persons interested in the estate or transfer, defined.

For purposes of sections 77-2108 to 77-2112, persons interested in the estate or transfer shall, with respect to both state and federal taxes, include all persons who may be entitled to receive or who have received any property or interest which is so required to be included in the gross estate of a decedent or total amount of the generation-skipping transfer or any benefit whatsoever with respect to any such property or interest, whether under a will or intestacy or by reason of any transfer, trust, estate, interest, right, power, relinquishment of power, or otherwise, taxable under either state or federal estate or generation-skipping transfer tax laws.

Source:Laws 1949, c. 222, § 2, p. 625; Laws 1992, LB 1004, § 14.


77-2110. Tax; fiduciary; property not in gross estate or transfer; recover.

In all cases in which any property required to be included in the gross estate or total amount of the generation-skipping transfer referred to in section 77-2108 does not come into possession of the personal representative, executor, or administrator as such, he or she shall, in the case of a trust involving temporary interests described in such section, be entitled to recover from the fiduciary in possession of the corpus of such trust, and in all other cases from the persons interested in the estate or transfer, the proportionate amount of such tax payable by such fiduciary or persons with which they are chargeable under such section.

Source:Laws 1949, c. 222, § 3, p. 625; Laws 1992, LB 1004, § 15.


77-2111. Tax; fiduciary; contributions; recovery.

Any personal representative, executor, administrator, trustee, or other person acting in a fiduciary capacity who has paid or may be required to pay any transfer tax and any person who has paid more than the proportionate amount of the tax apportionable to him or her under sections 77-2108 to 77-2112 on any property passing to him or her or in his or her possession shall be entitled to a just and equitable contribution from those who have not paid the full amount of the tax apportionable to them respectively.

Source:Laws 1949, c. 222, § 4, p. 626; Laws 1992, LB 1004, § 16.


77-2112. Tax; county court; jurisdiction; determination; district court; jurisdiction.

The county court of the county wherein the estate of the decedent is being probated shall have jurisdiction in the probate proceedings to hear and determine the apportionment and proration of such tax as set out in section 77-2108. The district court of the county of which the decedent was a resident at the time of his death, or if a nonresident of the state, of the county in which all or any part of his property was situated, shall have jurisdiction of an action in equity for an accounting and contribution after the apportionment and proration have been determined by the county court.

Source:Laws 1949, c. 222, § 5, p. 626.


Annotations

77-2113. Tax; filings required.

(1) The personal representative of every estate subject to the tax imposed by sections 77-2101 to 77-2116 shall file with the Tax Commissioner within twelve months from the date of death of the decedent:

(a) An estate tax return on forms prescribed by the Tax Commissioner for taxes due under such sections;

(b) A true copy of any federal estate tax return, pages 1, 2, and 3;

(c) A true copy of the federal determination of estate tax whether issued by the Internal Revenue Service or a federal court, if any. If such determination has not been received from the Internal Revenue Service or the federal court at the time of filing the return required in subdivision (a) of this subsection, a statement that the determination is unavailable shall be attached to the return and a true copy of the federal determination shall be filed with the Tax Commissioner within ten days of receipt of such determination by the personal representative; and

(d) A true copy of the inheritance tax return or worksheet as filed with the county court in each county where the decedent had property.

(2) For the generation-skipping transfer tax, a return in the form required by the Tax Commissioner shall be filed with the Tax Commissioner within twelve months of the date of the transfer by the transferee. The return shall include a true copy of the federal generation-skipping transfer tax return and the federal determination of the federal generation-skipping transfer tax due whether issued by the Internal Revenue Service or a federal court, if any.

Source:Laws 1984, LB 962, § 1;    Laws 1992, LB 1004, § 17; Laws 2002, LB 905, § 10.    


77-2114. Tax filing; Tax Commissioner; powers and duties; failure to file; penalty.

(1) Within thirty days after a transfer tax return or the federal determination is filed pursuant to section 77-2113, whichever is later, the Tax Commissioner shall examine it to determine the correct amount of tax.

(a) If the Tax Commissioner finds that the amount of tax on the return is less than the correct amount, he or she shall notify the person required to file a transfer tax return of the amount of the deficiency proposed to be assessed. The pertinent provisions of section 77-2709 shall be applicable in the assessment of such proposed deficiencies.

(b) If the Tax Commissioner finds that the tax paid is more than the correct amount, he or she shall notify the person required to file a transfer tax return of the amount and refund the difference to the person who paid the tax.

(c) If the Tax Commissioner finds that the correct amount of tax has been paid or that no tax is due, he or she shall certify the same to the person required to file a transfer tax return.

(2) If a person required to file a transfer tax return fails to file the tax return as required under section 77-2113, the Tax Commissioner or his or her legal representative may apply to the judge of the county court which has jurisdiction over the decedent's or transferor's property for an order directing such person to file the required return. If the person fails to file or refuses to obey such order, he or she shall be guilty of contempt of court.

Source:Laws 1984, LB 962, § 2;    Laws 1992, LB 1004, § 18.


77-2115. Tax; records confidential; exception; penalty.

(1) If the Tax Commissioner or any official or employee of the Tax Commissioner, the State Treasurer, or the Department of Administrative Services makes known in any manner the value of any estate or any particular set forth or disclosed in any report, state tax return, federal tax return, or other tax information required to be filed with the Tax Commissioner under the provisions of Nebraska's transfer tax laws, except so far as may be necessary for the enforcement and collection of the transfer tax provided for by the laws of this state, such person shall be guilty of a Class I misdemeanor.

(2) Federal tax returns, copies of such returns, and return information as defined under section 6103(d) of the Internal Revenue Code and state transfer tax returns and inheritance tax returns which are required to be filed with the Tax Commissioner for the enforcement of the inheritance and transfer tax laws of this state shall be deemed to be confidential by the Tax Commissioner.

(3) Nothing in this section shall be construed to prohibit:

(a) The delivery or inspection of such returns or tax information by:

(i) The personal representative or legal representative of the decedent's estate or representative of the transferor;

(ii) The county attorney of the county in which the decedent's or transferor's property is located;

(iii) The judge of the county court in which the decedent's or transferor's property is located; or

(iv) The Attorney General's office or other legal representative of the Tax Commissioner when such returns or tax information are relevant to any action or proceeding instituted by or against the transferor or the personal or legal representative of the decedent's estate or transferor;

(b) The furnishing of such information to the United States Government or to other states allowing similar privileges to the Tax Commissioner; or

(c) The publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof.

Source:Laws 1984, LB 962, § 3;    Laws 1992, LB 1004, § 19; Laws 1995, LB 574, § 72;    Laws 2005, LB 216, § 3.    


77-2116. Changes by Laws 2002, LB 905; applicability.

The changes made by Laws 2002, LB 905, apply to decedents dying and to generation-skipping transfers made on and after January 1, 2003.

Source:Laws 2002, LB 905, § 11.    


77-2201. Warrants; payment; order of presentation.

All warrants upon the State Treasurer or the treasurer of any county, city, school district, learning community, or other municipal corporation shall be paid in the order of their presentation therefor.

Source:Laws 1871, § 1, p. 113; Laws 1895, c. 67, § 1, p. 240; R.S.1913, § 6642; C.S.1922, § 6173; C.S.1929, § 77-2401; R.S.1943, § 77-2201; Laws 2006, LB 1024, § 12.    


Annotations

77-2202. Warrants; registration; form of record.

The State Treasurer and the treasurer of every county, city, school district, learning community, or other municipal corporation shall keep a warrant register, which register shall show in columns arranged for that purpose the number, the date, and the amount of each warrant presented and registered, the particular fund upon which the same is drawn, the date of presentation, the name and address of the person in whose name the warrant is registered, the date of payment, the amount of interest, and the total amount paid thereon, with the date when notice to the person in whose name such warrant is registered is mailed.

Source:Laws 1871, § 2, p. 114; Laws 1895, c. 67, § 2, p. 240; R.S.1913, § 6643; C.S.1922, § 6174; C.S.1929, § 77-2402; R.S.1943, § 77-2202; Laws 2006, LB 1024, § 13.    


77-2203. Warrants; registration; manner of making.

Whenever a warrant is presented for payment to any such treasurer and there is not sufficient money on hand to the credit of the proper fund to pay the same, it shall be the duty of every such treasurer to enter such warrant in his warrant register for payment in the order of its presentation, and upon every warrant so presented and registered, he shall endorse registered for payment, with the date of registration, and shall sign such endorsement.

Source:Laws 1871, § 3, p. 114; Laws 1891, c. 56, § 1, p. 394; Laws 1907, c. 158, § 1, p. 492; R.S.1913, § 6644; C.S.1922, § 6175; C.S.1929, § 77-2403; R.S.1943, § 77-2203.


Annotations

77-2204. Warrants; investment of educational trust funds; when authorized.

Whenever the State Treasurer is authorized by the Board of Educational Lands and Funds to invest the educational trust funds of the state in state warrants, he shall pay the owner or holder of any state warrant legally drawn, upon its presentation, and surrender the amount thereof from the money under his control belonging to such trust funds, unless there be sufficient money on hand belonging to the fund upon which such warrant is drawn out of which to pay the same. When any such warrant or warrants are taken up by the State Treasurer as aforesaid, he shall register the same and they shall be taken and considered in all respects as warrants purchased by the treasurer with and for the use and benefit of the trust fund, and the same shall draw interest at the rate now provided by law for registered state warrants until such time as there shall be sufficient money in the treasury to the credit of the fund against which the warrant or warrants are drawn to pay the same.

Source:Laws 1907, c. 158, § 1, p. 492; R.S.1913, § 6644; C.S.1922, § 6175; C.S.1929, § 77-2403; R.S.1943, § 77-2204.


77-2205. Warrants; payment; time limitation; file claim with State Claims Board.

The State Treasurer shall not pay any warrant which is presented to him or her for payment more than two years after the date of its issuance if issued prior to October 1, 1992, or one year after the date of its issuance if issued on or after October 1, 1992, and any such warrant shall cease to be an obligation of the State of Nebraska and shall be charged off upon the books of the State Treasurer. Except as otherwise provided by law, the amount stated on such warrant shall be credited to the General Fund. Such warrant may, however, thereafter be presented to the State Claims Board which may approve a claim pursuant to the State Miscellaneous Claims Act for the amount of the warrant.

Source:Laws 1907, c. 158, § 1, p. 492; R.S.1913, § 6644; C.S.1922, § 6175; C.S.1929, § 77-2403; R.S.1943, § 77-2205; Laws 1945, c. 195, § 1, p. 598; Laws 1988, LB 864, § 12;    Laws 1992, LB 982, § 1; Laws 2021, LB509, § 10.    


Cross References

77-2206. Warrants; registration; order of payment; notice to holder; exception.

It shall be the duty of every treasurer to pay each registered warrant in the order of its registration to its proper fund when there is sufficient money in the treasury to the credit of the proper fund against which the registered warrant is drawn. In such a case, the treasurer shall give notice by mail to the holder at his or her address if known to such treasurer, or if unknown, the treasurer shall give notice to the holders of registered warrants to be paid by causing one publication to be made in a legal newspaper published in the county or, if none is published in the county, in a legal newspaper of general circulation in the county where the treasurer's office is located, that certain registered warrants against a certain fund, designated from a beginning number to a concluding number inclusive, will be paid at the office of such treasurer. After the date for payment named in the call, interest upon such warrant shall cease. The State Treasurer may pay any warrant of a less amount than twenty-five dollars when presented for payment regardless of the order of presentation for payment or registration.

Source:Laws 1871, § 4, p. 114; R.S.1913, § 6645; C.S.1922, § 6176; Laws 1927, c. 177, § 1, p. 517; C.S.1929, § 77-2404; R.S.1943, § 77-2206; Laws 1986, LB 960, § 39;    Laws 2015, LB123, § 1.    


Annotations

77-2207. Repealed. Laws 1984, LB 933, § 20.

77-2208. Payments to county; county treasurer; receipt.

Except in counties with populations of four hundred thousand or more, every county treasurer may make duplicate receipts for all sums paid into his or her office, which receipts shall show the source from which such funds are derived and shall, by distinct lines and columns, show the amount received to the credit of each separate fund and whether such sums were paid in cash or warrants, county or road orders, or supervisors' receipts. In counties with populations of four hundred thousand or more, the county treasurer shall make out such receipts in triplicate. The treasurer shall deliver one of the receipts to the person making such payment and shall retain the second copy in his or her office. A list of such payments may be submitted to the county clerk within thirty days after the closing of the previous month in lieu of a receipt, except that in counties with populations of four hundred thousand or more, the third copy shall be filed with the county clerk within six days after making the receipt.

Source:Laws 1871, § 6, p. 115; R.S.1913, § 6647; C.S.1922, § 6178; C.S.1929, § 77-2406; R.S.1943, § 77-2208; Laws 1993, LB 346, § 20.    


77-2209. Payments to municipality; municipal treasurer; receipt.

The treasurer of every city or village shall make duplicate receipts for all sums which shall be paid into his office, which receipts shall show the source from which such funds are derived, and shall, by distinct lines and columns, show the amount received to the credit of each separate fund, and whether the same was paid in cash, in warrants, or otherwise; one of which duplicates the treasurer shall deliver to the person making such payment, and the other he shall retain in his office.

Source:Laws 1871, § 7, p. 115; R.S.1913, § 6648; C.S.1922, § 6179; C.S.1929, § 77-2407; R.S.1943, § 77-2209.


77-2210. Treasurer's books; how kept.

Every such treasurer shall daily, as money is received, foot the several columns of his cash book and of his register, and carry the amounts forward, and at the close of each year, in case the amount of money received by such treasurer is insufficient to pay the warrants registered, he shall close the account for that year in such register and shall carry forward the excess.

Source:Laws 1871, § 8, p. 115; R.S.1913, § 6649; C.S.1922, § 6180; C.S.1929, § 77-2408; R.S.1943, § 77-2210.


77-2211. Treasurer's books; penalty for neglect to keep.

Any such treasurer who shall fail regularly to enter upon his cash book the amounts so received and receipted for, or who shall fail to keep his cash book footed from day to day as required by section 77-2210, for the space of three days, shall forfeit for each offense the sum of one hundred dollars, to be recovered in a civil action on his official bond by any person holding a warrant drawn on such treasurer, one-half to the person bringing such action, and one-half to the school fund of the county in which such action is brought.

Source:Laws 1871, § 9, p. 115; R.S.1913, § 6650; C.S.1922, § 6181; C.S.1929, § 77-2409; R.S.1943, § 77-2211.


Annotations

77-2212. Treasurer's books; inspection.

The cash book, register and retained receipts of every such treasurer shall at all times be open to the inspection of any person in whose name any warrants are registered and unpaid.

Source:Laws 1871, § 10, p. 115; R.S.1913, § 6651; C.S.1922, § 6182; C.S.1929, § 77-2410; R.S.1943, § 77-2212.


77-2213. Treasurer; failure to notify holders of registered warrants; penalty.

Any treasurer who shall, for a period of five days after money in amount sufficient to pay any registered warrant in its order has been received, fail to mail notice thereof to the person registering such warrant, shall forfeit to such person ten percent on the amount of such warrant, and ten percent additional for every thirty days thereafter during which such failure shall continue.

Source:Laws 1871, § 11, p. 116; R.S.1913, § 6652; C.S.1922, § 6183; C.S.1929, § 77-2411; R.S.1943, § 77-2213.


77-2214. Treasurer; failure to register or pay warrants in order; penalty.

Any treasurer who shall fail to register any warrant in the order of its presentation therefor, or shall fail to pay the same in the order of its registration as required under section 77-2206, shall be liable on his or her official bond to each and every person, the payment of whose warrant or warrants is thereby postponed, in the sum of five hundred dollars to be recovered in a civil action, one-half of which shall go to the person bringing such action, and one-half to the school fund of the county in which such action is brought.

Source:Laws 1871, § 12, p. 116; R.S.1913, § 6653; C.S.1922, § 6184; C.S.1929, § 77-2412; R.S.1943, § 77-2214; Laws 2015, LB123, § 2.    


Annotations

77-2215. Lost warrants; replacement issued; conditions; stop-payment order.

(1) Whenever it shall be made to appear to the satisfaction of any officer, except the Director of Administrative Services, authorized by law to issue warrants, that any warrant issued by him or her has been lost or destroyed, such officer shall have authority to issue a replacement thereof. No replacement warrant shall be issued until the party applying for the same shall make an affidavit that such party was the owner of the original warrant and shall also file with such officer an indemnity bond with good and sufficient security, conditioned to refund any money received by the party or his or her assigns on such replacement in case of presentation and payment of the original by the treasurer upon whom the same is drawn, whether upon a genuine endorsement thereon or otherwise. The payee of any lost or destroyed warrant shall not be required to file an indemnity bond when the affidavit shows that such payee has not received such lost or destroyed warrant and cannot reasonably expect to receive it.

(2) Whenever it shall have come to the attention of the Director of Administrative Services that an outstanding warrant has not been presented for payment, the Director of Administrative Services shall immediately issue a stop-payment order and notify the State Treasurer of the issuance of such order. After the expiration of seven working days from the issuance of such order, if in the meantime such outstanding warrant has not been presented for payment, the Director of Administrative Services shall have authority to issue a replacement thereof. In an emergency, the Director of Administrative Services may immediately issue such replacement warrant.

Source:Laws 1875, § 1, p. 176; R.S.1913, § 6654; C.S.1922, § 6185; C.S.1929, § 77-2413; R.S.1943, § 77-2215; Laws 1951, c. 208, § 1, p. 769; Laws 1957, c. 338, § 1, p. 1175; Laws 1977, LB 137, § 1;    Laws 1986, LB 930, § 1;    Laws 2014, LB974, § 2.    


77-2301. State funds; deposit of funds; conditions.

(1) The State Treasurer shall deposit, and at all times keep on deposit for safekeeping, in the state or national banks, or some of them doing business in this state and of approved standing and responsibility, the amount of money in his or her hands belonging to the several current funds in the state treasury. Any bank may apply for the privilege of keeping on deposit such funds or some part thereof.

(2)(a) Every bank shall, as a condition of keeping on deposit state funds, agree to cash free of charge state warrants which are presented by payees of the state without regard to whether or not such payee has an account with such bank, and such bank shall not require such payee to place his or her fingerprint or thumbprint on the state warrant as a condition to cashing such warrant.

(b) The condition of keeping on deposit state funds in subdivision (2)(a) of this section shall not preclude any bank from refusing to cash a state warrant presented to the bank if (i) a stop-payment order has been placed on the state warrant, (ii) the state warrant has been reported as unregistered, voided, lost, stolen, destroyed, or that a duplicate state warrant has been issued in its place, (iii) the state warrant is incomplete or is forged or altered in any manner, (iv) the state warrant lacks any necessary indorsement or an indorsement is illegible, unauthorized, or forged, (v) the state warrant is stale-dated, or (vi) the bank has a reasonable belief that the individual presenting the state warrant is not the payee named on the state warrant.

(3) All deposits shall be subject to payment when demanded by the State Treasurer on his or her check and shall be subject also to such regulations as are imposed by law and rules adopted by the State Treasurer in receiving and holding such deposits.

Source:Laws 1891, c. 50, § 1, p. 347; Laws 1903, c. 110, § 3, p. 586; R.S.1913, § 6655; Laws 1915, c. 114, § 1, p. 264; C.S.1922, § 6186; Laws 1923, c. 120, § 1, p. 285; C.S.1929, § 77-2501; Laws 1935, c. 152, § 1, p. 559; Laws 1941, c. 171, § 3, p. 675; C.S.Supp.,1941, § 77-2501; R.S.1943, § 77-2301; Laws 1999, LB 217, § 2.    


Annotations

77-2302. Federal Deposit Insurance Corporation references; how construed.

For purposes of any law requiring a bank, capital stock financial institution as defined under section 77-2366, or qualifying mutual financial institution as defined under section 77-2365.01 to secure the deposit of public money or public funds in excess of the amount insured by the Federal Deposit Insurance Corporation, references to amounts insured by the Federal Deposit Insurance Corporation shall include amounts guaranteed by the Federal Deposit Insurance Corporation.

Source:Laws 2009, LB259, § 26.    


77-2303. State funds; depositories; bond required; approval; conditions.

For the security of funds deposited under the provisions of sections 77-2301 to 77-2309, the State Treasurer shall require all such depositories to give bond for the safekeeping of payments of such deposits. The officers of the bank seeking to qualify as a depository shall be ineligible to sign the bond provided for under this section. The bond shall run to the people of the State of Nebraska, and shall be approved by the Governor, Secretary of State and Attorney General. No bond shall be valid unless approved by all three of the above-named officers. The bond shall be conditioned that the depository shall at the end of each and every month render to the State Treasurer a statement in duplicate showing the daily balance and the amount of money of the state held by it during the month, and for the payment of the deposit when demanded by the treasurer on his check at any time, and generally to do and perform whatever may be required by the provisions of this article and a faithful discharge of the trust reposed in such depository.

Source:Laws 1891, c. 50, § 3, p. 348; Laws 1897, c. 23, § 2, p. 188; Laws 1899, c. 74, § 1, p. 321; Laws 1905, c. 151, § 1, p. 595; Laws 1907, c. 142, § 1, p. 450; Laws 1909, c. 139, § 1, p. 493; R.S.1913, § 6657; C.S.1922, § 6188; Laws 1927, c. 34, § 1, p. 153; C.S.1929, § 77-2503; Laws 1931, c. 135, § 1, p. 376; Laws 1933, c. 147, § 1, p. 564; Laws 1935, c. 152, § 2, p. 560; C.S.Supp.,1941, § 77-2503; R.S.1943, § 77-2303.


Annotations

77-2304. State funds; depositories; form of bond.

Such bond shall be in substance as follows:

Know all Men by these Presents, That we .......... as principals, and .......... as sureties, are held and firmly bound unto the State of Nebraska, in the just and full sum of .......... Dollars, for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors and our administrators, jointly and severally, by these presents. Dated the .......... day of .................... A.D. .............. .

Whereas, the said bank, in consideration of the deposit of certain of the money of the State of Nebraska for safekeeping with and in the .......... bank of .......... the amount whereof shall be subject to withdrawal or diminution by the State Treasurer as the requirements of the state shall demand, and which amount may be increased or decreased as the treasurer may determine;

Now, Therefor, if said ..................... bank of ........................... shall at the end of every month render to the State Treasurer a statement in duplicate showing the daily balance of the state money held by it during the month next preceding, and how the same has been credited, and shall well and truly keep all said sums of money so deposited or to be deposited as aforesaid subject to the check and order of the State Treasurer as aforesaid, and shall pay over the same, and each and every part thereof, upon the written demand of the State Treasurer, and to his successor in office as shall be by him demanded, and shall in all respect save and keep the people of the State of Nebraska, and the State Treasurer harmless and indemnified for and by reason of the making of such deposit or deposits, then this obligation shall be void and of no effect, otherwise to be and remain in full force and virtue.

Source:Laws 1891, c. 50, § 3, p. 348; Laws 1897, c. 23, § 2, p. 188; Laws 1899, c. 74, § 1, p. 321; Laws 1905, c. 151, § 1, p. 595; Laws 1907, c. 142, § 1, p. 450; Laws 1909, c. 139, § 1, p. 493; R.S.1913, § 6657; C.S.1922, § 6188; Laws 1927, c. 34, § 1, p. 153; C.S.1929, § 77-2503; Laws 1931, c. 135, § 1, p. 376; Laws 1933, c. 147, § 1, p. 564; Laws 1935, c. 152, § 2, p. 560; C.S.Supp.,1941, § 77-2503; R.S.1943, § 77-2304.


77-2305. State funds; depositories; limitations on amount deposited in any one bank.

The State Treasurer shall not have on deposit in any bank giving a guaranty bond more than the amount insured or guaranteed by the Federal Deposit Insurance Corporation plus the maximum amount of the bond given by the bank, nor any bank giving a personal bond more than the amount insured or guaranteed by the Federal Deposit Insurance Corporation, plus one-half of the amount of the bond of the bank. The amount deposited in any bank shall not exceed the amount insured or guaranteed by the Federal Deposit Insurance Corporation plus twice its capital stock and surplus, but no bonds or giving of security shall be required for funds over which the state investment officer has investment jurisdiction except those funds which are eligible for long-term investment. All bonds of such depositories shall be deposited with and held by the State Treasurer.

Source:Laws 1891, c. 50, § 3, p. 348; Laws 1897, c. 23, § 2, p. 188; Laws 1899, c. 74, § 1, p. 321; Laws 1905, c. 151, § 1, p. 595; Laws 1907, c. 142, § 1, p. 450; Laws 1909, c. 139, § 1, p. 493; R.S.1913, § 6657; C.S.1922, § 6188; Laws 1927, c. 34, § 1, p. 153; C.S.1929, § 77-2503; Laws 1931, c. 135, § 1, p. 376; Laws 1933, c. 147, § 1, p. 564; Laws 1935, c. 152, § 2, p. 560; C.S.Supp.,1941, § 77-2503; R.S.1943, § 77-2305; Laws 1957, c. 340, § 1, p. 1178; Laws 1978, LB 599, § 1;    Laws 1996, LB 1274, § 26;    Laws 2009, LB259, § 14.    


Annotations

77-2306. State funds; depositories; security in lieu of bonds.

In lieu of a bond as provided in section 77-2305, any bank making application to become a depository under the provisions of sections 77-2301 to 77-2309 may give security as provided in the Public Funds Deposit Security Act to the State Treasurer.

Source:Laws 1891, c. 50, § 3, p. 348; Laws 1897, c. 23, § 2, p. 188; Laws 1899, c. 74, § 1, p. 321; Laws 1905, c. 151, § 1, p. 595; Laws 1907, c. 142, § 1, p. 450; Laws 1909, c. 139, § 1, p. 493; R.S.1913, § 6657; C.S.1922, § 6188; Laws 1927, c. 34, § 1, p. 153; C.S.1929, § 77-2503; Laws 1931, c. 135, § 1, p. 276; Laws 1933, c. 147, § 1, p. 564; Laws 1935, c. 152, § 2, p. 560; C.S.Supp.,1941, § 77-2503; R.S.1943, § 77-2306; Laws 1959, c. 263, § 13, p. 944; Laws 1967, c. 507, § 1, p. 1707; Laws 1989, LB 377, § 12;    Laws 1995, LB 384, § 29;    Laws 1996, LB 1274, § 27.    


Cross References

77-2307. Repealed. Laws 1996, LB 1274, § 57.

77-2308. Repealed. Laws 1996, LB 1274, § 57.

77-2309. State funds; State Treasurer; duty to secure best terms possible.

It is made the duty of the State Treasurer to use all reasonable and proper means to secure to the state the best terms for the depositing of the money belonging to the state, consistent with the safekeeping and prompt payment of the funds of the state when demanded.

Source:Laws 1891, c. 50, § 4, p. 350; R.S.1913, § 6658; C.S.1922, § 6189; C.S.1929, § 77-2504; R.S.1943, § 77-2309.


77-2310. State funds; State Treasurer; making of profit prohibited; illegal removal of funds; penalty; liability on bond.

The making of profit, directly or indirectly, by the State Treasurer out of any money in the state treasury belonging to the state, the custody of which the treasurer is charged with, by loaning, depositing or otherwise using it or depositing the same in any manner, or the removal by the treasurer or by his consent of such money or a part thereof out of the vault of the treasurer's department or any legal depository of the same, except for the payment of warrants, legally drawn or for the purpose of depositing the same in the banks selected as depositories under the provisions of sections 77-2301 to 77-2309, shall be deemed guilty of a Class IV felony, and shall also be liable under and upon his official bond for all profits realized from such unlawful using of such funds.

Source:Laws 1891, c. 50, § 4, p. 350; R.S.1913, § 6658; C.S.1922, § 6189; C.S.1929, § 77-2504; R.S.1943, § 77-2310; Laws 1977, LB 39, § 230.    


77-2311. State funds; State Treasurer; failure to act; penalty.

If the State Treasurer shall willfully fail or refuse at any time to do or perform any act required of him by sections 77-2301 to 77-2309, he shall be guilty of a Class II misdemeanor. It shall be the duty of the Attorney General to enter and prosecute to final determination all suits for the recovery of any penalty arising under the conditions of any bond required to be given by the provisions of sections 77-2303 to 77-2305.

Source:Laws 1891, c. 50, § 5, p. 351; R.S.1913, § 6659; C.S.1922, § 6190; C.S.1929, § 77-2505; R.S.1943, § 77-2311; Laws 1977, LB 39, § 231.    


77-2312. County funds; deposit required; conditions.

The county treasurer of each and every county in the State of Nebraska shall deposit, and at all times keep on deposit for safekeeping in the state or national banks, capital stock financial institutions, or qualifying mutual financial institutions doing business in the county of approved and responsible standing, the amount of money in his or her hands collected and held by him or her as county treasurer. Any check, draft, order, or other negotiable instrument deposited by the county treasurer, except when drawn upon the bank, capital stock financial institution, or qualifying mutual financial institution in which the deposit is made, shall be received by the bank, capital stock financial institution, or qualifying mutual financial institution for collection only and shall be subject to final payment thereof to the bank, capital stock financial institution, or qualifying mutual financial institution. Collection of such items shall be in the usual course of business and except for its own negligence, the bank, capital stock financial institution, or qualifying mutual financial institution shall not be liable thereon until and unless payment is actually received. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1891, c. 50, § 6, p. 351; Laws 1897, c. 23, § 3, p. 190; Laws 1903, c. 110, § 1, p. 584; R.S.1913, § 6660; C.S.1922, § 6191; C.S.1929, § 77-2506; Laws 1930, Spec. Sess., c. 7, § 1, p. 35; Laws 1935, c. 153, § 3, p. 562; Laws 1937, c. 174, § 1, p. 687; C.S.Supp.,1941, § 77-2506; R.S.1943, § 77-2312; Laws 1989, LB 33, § 32;    Laws 2001, LB 362, § 34.    


Annotations

77-2313. County funds; application by depositories; approval by county board.

Any bank, capital stock financial institution, or qualifying mutual financial institution located in the county may apply for the privilege of keeping money upon the following conditions: All deposits shall be subject to payment when demanded by the county treasurer on his or her check or order and subject also to such regulations as are imposed by law and the rules adopted by the county treasurer for holding and receiving such deposits. It shall be the duty of the county board to act on the application or applications of any and all banks, capital stock financial institutions, or qualifying mutual financial institutions, state or national, as may ask for the privilege of becoming the depository of such money, as well as to approve the bonds of those selected incident to such relation, and the county treasurer shall not deposit such money or any part thereof in any bank, capital stock financial institution, or qualifying mutual financial institution other than such as may have been so selected by the county board for such purposes, if any such bank, capital stock financial institution, or qualifying mutual financial institution has been so selected by the county board.

Source:Laws 1891, c. 50, § 6, p. 351; Laws 1897, c. 23, § 3, p. 190; Laws 1903, c. 110, § 1, p. 584; R.S.1913, § 6660; C.S.1922, § 6191; C.S.1929, § 77-2506; Laws 1930, Spec. Sess., c. 7, § 1, p. 35; Laws 1935, c. 153, § 3, p. 562; Laws 1937, c. 174, § 1, p. 687; C.S.Supp.,1941, § 77-2506; R.S.1943, § 77-2313; Laws 1989, LB 33, § 33;    Laws 2001, LB 362, § 35.    


Annotations

77-2314. County funds; depositories; funds deposited pro rata.

When more than one bank, capital stock financial institution, or qualifying mutual financial institution may have been selected by the county board as depositories, the county treasurer shall not give a preference to any one or more of them in the money he or she may so deposit, but shall keep deposited with each of such banks, capital stock financial institutions, or qualifying mutual financial institutions such a part of the money as the capital of such bank, capital stock financial institution, or qualifying mutual financial institution as of December 31 of the preceding year is a part of the amount of all the capital of all the banks, capital stock financial institutions, or qualifying mutual financial institutions so selected as of December 31 of the preceding year, so that such money may at all times be deposited with such banks, capital stock financial institutions, or qualifying mutual financial institutions pro rata as to their capital, except that the county treasurer may select one or more banks, capital stock financial institutions, or qualifying mutual financial institutions to be used for active accounts in which he or she may keep deposited in excess of these requirements only such funds as may be necessary for the transaction of ordinary day-to-day requirements. For purposes of this section, capital shall mean capital stock, if any, surplus, undivided profits, capital notes or debentures, and other unimpaired reserves. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1903, c. 110, § 1, p. 584; R.S.1913, § 6660; C.S.1922, § 6191; C.S.1929, § 77-2506; Laws 1930, Spec. Sess., c. 7, § 1, p. 35; Laws 1935, c. 153, § 3, p. 562; Laws 1937, c. 174, § 1, p. 687; C.S.Supp.,1941, § 77-2506; R.S.1943, § 77-2314; Laws 1974, LB 954, § 1;    Laws 1989, LB 33, § 34;    Laws 1996, LB 1274, § 28;    Laws 2001, LB 362, § 36.    


Annotations

77-2315. County funds; investment; securities authorized; interest; disposition; delivery of securities to successor.

A county treasurer may by and with the consent of the county board invest in United States Government bonds, bonds and debentures issued either singly or collectively by any of the twelve federal land banks, the twelve intermediate credit banks, or the thirteen banks for cooperatives under the supervision of the Farm Credit Administration, United States Treasury notes, bills, or certificates of indebtedness maturing within two years from the date of purchase, or in certificates of deposit. Every treasurer having invested in securities as aforesaid must deliver the same to his successor, who shall receive and accept the same as funds of the office. The interest received on any investments authorized by this section and section 77-2340 shall be credited to the general fund of the county, or to a fund to be used exclusively for the purposes contemplated by the provisions of section 23-120, in the discretion of the county board; Provided, that if such interest is received on a fund which shall not have been commingled with any other fund for investment purposes, then any interest received shall be credited to the fund from which the investment shall have been made. It shall be in the discretion of the county board whether any fund shall be commingled or invested from an identifiable account.

Source:Laws 1935, c. 153, § 3, p. 562; Laws 1937, c. 174, § 1, p. 687; C.S.Supp.,1941, § 77-2506; R.S.1943, § 77-2315; Laws 1955, c. 303, § 1, p. 943; Laws 1959, c. 263, § 14, p. 945; Laws 1961, c. 392, § 1, p. 1190; Laws 1974, LB 771, § 1.    


77-2316. County funds; depositories; bond required; approval; conditions.

For the security of the funds so deposited under the provisions of sections 77-2312 to 77-2324, the county treasurer shall require all such depositories to give bonds for the safekeeping and payment of such deposits and the accretions thereof, except as otherwise provided in sections 77-2312 to 77-2364 for time deposits. The bond shall run to the people of the county, and be approved by the county board and conditioned that the depository shall, at the end of each and every month, render to the treasurer and county board a statement in duplicate, showing the several daily balances and the amounts of money of the county held by it during the month, and how credited; and for the payment of the deposits, when demanded by the county treasurer on his check at any time, as hereinbefore provided, and generally do and perform whatever may be required by the provisions of this article, and a faithful discharge of the trust reposed in such depository.

Source:Laws 1891, c. 50, § 8, p. 352; Laws 1897, c. 23, § 5, p. 191; Laws 1903, c. 110, § 2, p. 585; Laws 1909, c. 35, § 1, p. 216; R.S.1913, § 6662; C.S.1922, § 6193; Laws 1925, c. 96, § 1, p. 279; Laws 1927, c. 34, § 2, p. 156; Laws 1929, c. 36, § 1, p. 151; C.S.1929, § 77-2508; Laws 1935, c. 152, § 4, p. 563; Laws 1939, c. 103, § 3, p. 464; C.S.Supp.,1941, § 77-2508; R.S.1943, § 77-2316; Laws 1961, c. 392, § 2, p. 1190.


Annotations

77-2317. County funds; depositories; form of bond; ineligible sureties.

The bond in substance shall be similar to the bond required and set forth in section 77-2304. No person in any way connected with any depository bank, capital stock financial institution, or qualifying mutual financial institution as an officer or stockholder shall be accepted as a surety on any bond given by the bank, capital stock financial institution, or qualifying mutual financial institution of which he or she is an officer or stockholder.

Source:Laws 1891, c. 50, § 8, p. 352; Laws 1897, c. 23, § 5, p. 191; Laws 1903, c. 110, § 2, p. 585; Laws 1909, c. 35, § 1, p. 216; R.S.1913, § 6662; C.S.1922, § 6193; Laws 1925, c. 96, § 1, p. 279; Laws 1927, c. 34, § 2, p. 156; Laws 1929, c. 36, § 1, p. 151; C.S.1929, § 77-2508; Laws 1935, c. 152, § 4, p. 563; Laws 1939, c. 103, § 3, p. 464; C.S.Supp.,1941, § 77-2508; R.S.1943, § 77-2317; Laws 1989, LB 33, § 35;    Laws 1996, LB 1274, § 29;    Laws 2001, LB 362, § 37.    


77-2318. County funds; depositories; limitation on deposits; exception.

The county treasurer shall not have on deposit in any bank, capital stock financial institution, or qualifying mutual financial institution at any time more money than the amount insured or guaranteed by the Federal Deposit Insurance Corporation, plus the maximum amount of the bond given by such bank, capital stock financial institution, or qualifying mutual financial institution in cases when the bank, capital stock financial institution, or qualifying mutual financial institution gives a guaranty bond except as provided in section 77-2318.01. The amount on deposit at any time with any bank, capital stock financial institution, or qualifying mutual financial institution shall not exceed fifty percent of the capital and surplus of such bank, capital stock financial institution, or qualifying mutual financial institution except as provided in section 77-2318.01. When the amount of money which the county treasurer desires to deposit in the banks, capital stock financial institutions, and qualifying mutual financial institutions within the county exceeds fifty percent of the capital and surplus of all of the banks, capital stock financial institutions, and qualifying mutual financial institutions in such county, then the county treasurer may, with the consent of the county board, deposit an amount in excess thereof, but not exceeding the capital stock and surplus in any one bank, capital stock financial institution, or qualifying mutual financial institution unless the depository gives security as provided in section 77-2318.01. Bond shall be required of all banks, capital stock financial institutions, and qualifying mutual financial institutions for such excess deposit unless security is given in accordance with section 77-2318.01. The bonds shall be deposited with the county treasurer and approved by the county board. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1891, c. 50, § 8, p. 352; Laws 1897, c. 23, § 5, p. 191; Laws 1903, c. 110, § 2, p. 585; Laws 1909, c. 35, § 1, p. 216; R.S.1913, § 6662; C.S.1922, § 6193; Laws 1925, c. 96, § 1, p. 279; Laws 1927, c. 34, § 2, p. 156; Laws 1929, c. 36, § 1, p. 151; C.S.1929, § 77-2508; Laws 1935, c. 152, § 4, p. 563; Laws 1939, c. 103, § 3, p. 464; C.S.Supp.,1941, § 77-2508; R.S.1943, § 77-2318; Laws 1953, c. 284, § 1, p. 921; Laws 1989, LB 33, § 36;    Laws 1992, LB 757, § 26;    Laws 1996, LB 1274, § 30;    Laws 2001, LB 362, § 38;    Laws 2009, LB259, § 15;    Laws 2011, LB396, § 1.    


Annotations

77-2318.01. County funds; deposit of excess, when.

The county treasurer may deposit in any bank, capital stock financial institution, or qualifying mutual financial institution of the county in which he or she is treasurer in excess of the amounts authorized in section 77-2318 when (1) the depository secures the deposits by giving security as provided in the Public Funds Deposit Security Act and (2) the same is approved by a formal resolution of the county board. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1953, c. 284, § 2, p. 922; Laws 1988, LB 703, § 2;    Laws 1989, LB 33, § 37;    Laws 1996, LB 1274, § 31;    Laws 2001, LB 362, § 39.    


Cross References

77-2319. County funds; depositories; deposits outside of county; when.

When banks, capital stock financial institutions, or qualifying mutual financial institutions located in the county refuse or neglect to bid on money of the county, when there are no banks, capital stock financial institutions, or qualifying mutual financial institutions in the county, or when the banks, capital stock financial institutions, or qualifying mutual financial institutions located in the county do not have sufficient capital and surplus to receive such money under sections 77-2312 to 77-2324, then any surplus over the amount specified that banks, capital stock financial institutions, or qualifying mutual financial institutions in the county may receive shall be deposited in banks, capital stock financial institutions, or qualifying mutual financial institutions outside of the county having sufficient capital and surplus under the same conditions and terms as if in the county. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1903, c. 110, § 2, p. 585; Laws 1909, c. 35, § 1, p. 216; R.S.1913, § 6662; C.S.1922, § 6193; Laws 1925, c. 96, § 1, p. 279; Laws 1927, c. 34, § 2, p. 156; Laws 1929, c. 36, § 1, p. 151; C.S.1929, § 77-2508; Laws 1935, c. 152, § 4, p. 563; Laws 1939, c. 103, § 3, p. 464; C.S.Supp.,1941, § 77-2508; R.S.1943, § 77-2319; Laws 1989, LB 33, § 38;    Laws 2001, LB 362, § 40.    


77-2320. County funds; depositories; security in lieu of bond.

In lieu of a bond as provided in sections 77-2316 to 77-2319, any bank, capital stock financial institution, or qualifying mutual financial institution making application to become a depository under sections 77-2312 to 77-2324 may give security as provided in the Public Funds Deposit Security Act to the county treasurer. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1909, c. 35, § 1, p. 216; R.S.1913, § 6662; C.S.1922, § 6193; Laws 1925, c. 96, § 1, p. 279; Laws 1927, c. 34, § 2, p. 156; Laws 1929, c. 36, § 1, p. 151; C.S.1929, § 77-2508; Laws 1935, c. 152, § 4, p. 563; Laws 1939, c. 103, § 3, p. 464; C.S.Supp.,1941, § 77-2508; R.S.1943, § 77-2320; Laws 1959, c. 263, § 15, p. 945; Laws 1977, LB 266, § 2;    Laws 1988, LB 703, § 3;    Laws 1989, LB 33, § 39;    Laws 1989, LB 377, § 13;    Laws 1996, LB 1274, § 32;    Laws 2001, LB 362, § 41;    Laws 2012, LB879, § 1.    


Cross References

Annotations

77-2321. Repealed. Laws 1996, LB 1274, § 57.

77-2322. Repealed. Laws 1996, LB 1274, § 57.

77-2323. County funds; deposit; violation; penalty.

Any treasurer or any officer of a bank, capital stock financial institution, or qualifying mutual financial institution who shall directly or indirectly violate or knowingly permit to be violated sections 77-2316 to 77-2323 so far as such sections relate to the deposit of public money in a bank, capital stock financial institution, or qualifying mutual financial institution shall be guilty of a Class IV felony. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1925, c. 96, § 1, p. 279; Laws 1927, c. 34, § 2, p. 156; Laws 1929, c. 36, § 1, p. 151; C.S.1929, § 77-2508; Laws 1935, c. 152, § 4, p. 563; Laws 1939, c. 103, § 3, p. 464; C.S.Supp.,1941, § 77-2508; R.S.1943, § 77-2323; Laws 1977, LB 39, § 232;    Laws 1989, LB 33, § 42;    Laws 2001, LB 362, § 42.    


77-2324. County funds; county treasurer; duty to secure best terms possible.

It is hereby made the duty of the county treasurer to use all reasonable and proper means to secure to the county the best terms for the depositing of the money belonging to the county consistent with the safekeeping and prompt payment of the funds of the county when demanded.

Source:Laws 1891, c. 50, § 9, p. 353; R.S.1913, § 6663; C.S.1922, § 6194; C.S.1929, § 77-2511; R.S.1943, § 77-2324.


Annotations

77-2325. County funds; county treasurer; prohibited acts; penalty; liability on bond.

The making of profit, directly or indirectly, by the county treasurer out of any money in the county treasury belonging to the county, the custody of which the treasurer is charged with, by loaning or depositing or otherwise using or depositing the same in any manner, or the removal by the county treasurer or by his or her consent of such money or a part thereof out of the vault of the treasurer's department or any legal depository of the same, except for the payment of warrants legally drawn or for the purpose of depositing the same in the banks, capital stock financial institutions, or qualifying mutual financial institutions selected as depositories under sections 77-2312 to 77-2324, shall be deemed a Class IV felony, and the county treasurer shall also be liable under and upon his or her official bond for all profits realized from such unlawful using of such funds.

Source:Laws 1891, c. 50, § 9, p. 353; R.S.1913, § 6663; C.S.1922, § 6194; C.S.1929, § 77-2511; R.S.1943, § 77-2325; Laws 1977, LB 39, § 233;    Laws 1989, LB 33, § 43;    Laws 2001, LB 362, § 43.    


77-2326. County fund; county treasurer; failure to act; penalty.

If the county treasurer shall willfully fail or refuse at any time to do or perform any act required of him by sections 77-2312 to 77-2324, he shall be guilty of a Class I misdemeanor. It shall be the duty of the county attorney to enter and prosecute to final determination all suits for the recovery of any penalty arising under the conditions of any bond required to be given by the provisions of said sections.

Source:Laws 1891, c. 50, § 10, p. 354; R.S.1913, § 6664; C.S.1922, § 6195; C.S.1929, § 77-2512; R.S.1943, § 77-2326; Laws 1977, LB 39, § 234.    


77-2326.01. Public money in hands of county and court officials; terms, defined.

For purposes of sections 77-2313 to 77-2326.09, (1) county board shall include county commissioners or county supervisors, as the case may be, and (2) public money shall include all funds which come into the hands of county judges, clerks of the county court, or clerks of the district court pursuant to any provision of law authorizing such officers to collect or receive the same.

Source:Laws 1947, c. 269, § 1, p. 868; Laws 1988, LB 370, § 12;    Laws 1990, LB 1146, § 6.    


Annotations

77-2326.02. Clerk of the district court; deposit of funds.

All public funds paid to or coming into the hands of any clerk of the district court shall be deposited in such bank, capital stock financial institution, or qualifying mutual financial institution as shall have been designated as official depositories for such funds. Such deposits shall be subject to the provisions and conditions provided in sections 77-2326.03 to 77-2326.09. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1947, c. 269, § 2, p. 869; Laws 1988, LB 370, § 13;    Laws 1989, LB 33, § 44;    Laws 2001, LB 362, § 44.    


77-2326.03. Clerk of the district court; depositories; designation.

Depositories shall be such banks, capital stock financial institutions, and qualifying mutual financial institutions as shall be from time to time designated by the county board by formal resolution duly recorded in the minutes of the proceedings of such board. Such designation may be withdrawn at any time by such board in like manner, whereupon all deposits in such bank, capital stock financial institution, or qualifying mutual financial institution under the control of the clerk of the district court shall be immediately withdrawn. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1947, c. 269, § 3, p. 869; Laws 1988, LB 370, § 14;    Laws 1989, LB 33, § 45;    Laws 2001, LB 362, § 45.    


77-2326.04. Public money in hands of court officials; deposits; security for repayment.

No deposits in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation shall be made to accumulate in any bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository unless and until the county judge, clerk of the county court, or clerk of the district court, as the case may be, has received from such depository as security for the prompt repayment by the depository of his or her respective deposits in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation either a surety bond in form and with corporate sureties approved by the county judge or judges or by formal resolution of the county board, as the case may be, or in lieu thereof, the giving of security as provided in the Public Funds Deposit Security Act. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1947, c. 269, § 4, p. 869; Laws 1959, c. 263, § 16, p. 946; Laws 1988, LB 703, § 4;    Laws 1989, LB 33, § 46;    Laws 1989, LB 377, § 14;    Laws 1990, LB 1146, § 7;    Laws 1993, LB 356, § 1;    Laws 1996, LB 1274, § 33;    Laws 2001, LB 362, § 46;    Laws 2009, LB259, § 16.    


Cross References

77-2326.05. Clerk of the district court; deposits; limitation.

The deposits secured by a surety bond shall at no time exceed the amount of the penal sum of such surety bond.

Source:Laws 1947, c. 269, § 5, p. 870; Laws 1988, LB 703, § 5;    Laws 1996, LB 1274, § 34.    


77-2326.06. Clerk of the district court; deposits; security; contracts.

Every depository may secure deposits by giving a surety bond or giving security as provided in section 77-2326.04 and otherwise enter into and become a party to any contract or arrangement not inconsistent with this section, as may be reasonably necessary or proper to render fully effective section 77-2326.04. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1947, c. 269, § 6, p. 870; Laws 1988, LB 703, § 6;    Laws 1989, LB 33, § 47;    Laws 1996, LB 1274, § 35;    Laws 2001, LB 362, § 47.    


77-2326.07. Clerk of the district court; depositories; securities; list.

The clerk of the district court shall at all times keep and certify to the county board a complete and correct list and description of the securities furnished by any depository to secure the deposits. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1947, c. 269, § 7, p. 870; Laws 1988, LB 370, § 15;    Laws 1988, LB 703, § 7;    Laws 1989, LB 33, § 48;    Laws 1996, LB 1274, § 36;    Laws 2001, LB 362, § 48.    


77-2326.08. Clerk of the county or district court; depositories; statement of funds.

Each depository shall furnish directly to the county board a sworn monthly statement of the funds of the county judge, clerk of the county court, and clerk of the district court on deposit in such depository. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1947, c. 269, § 8, p. 870; Laws 1988, LB 370, § 16;    Laws 1988, LB 703, § 8;    Laws 1989, LB 33, § 49;    Laws 1990, LB 1146, § 8;    Laws 1996, LB 1274, § 37;    Laws 2001, LB 362, § 49.    


77-2326.09. Clerk of the county or district court; deputies; employees; liability.

The clerk of the county court, the clerk of the district court, their deputies or other employees, and their sureties shall not be liable for any loss resulting from the failure of any bank, capital stock financial institution, or qualifying mutual financial institution as to any such deposits made and maintained as provided in sections 77-2326.01 to 77-2326.09.

Source:Laws 1947, c. 269, § 9, p. 870; Laws 1988, LB 370, § 17;    Laws 1989, LB 33, § 50;    Laws 1990, LB 1146, § 9;    Laws 2001, LB 362, § 50.    


77-2327. Public funds; depository bonds; expiration.

All bonds given to secure deposits of public money by the state or by any county, except for deposit guaranty bonds defined under section 77-2387, shall expire on January 1 of each year.

Source:Laws 1927, c. 34, § 4, p. 158; C.S.1929, § 77-2509; Laws 1933, c. 128, § 1, p. 504; C.S.Supp.,1941, § 77-2509; R.S.1943, § 77-2327; Laws 2000, LB 932, § 37.    


Annotations

77-2328. Repealed. Laws 1996, LB 1274, § 57.

77-2329. Public funds; treasurers or secretary-treasurers; when not liable under bond.

No treasurer or secretary-treasurer shall be liable on his or her bond for money on deposit in a bank, capital stock financial institution, or qualifying mutual financial institution under and by direction of the proper legal authority if the bank, capital stock financial institution, or qualifying mutual financial institution has given bond in accordance with section 14-556, 15-846, 16-714, 17-720, 77-2318, 77-2344, 77-2352, 77-2355, or 77-2375 or given security as provided in the Public Funds Deposit Security Act.

Source:Laws 1891, c. 50, § 11, p. 354; R.S.1913, § 6665; C.S.1922, § 6196; C.S.1929, § 77-2513; R.S.1943, § 77-2329; Laws 1953, c. 284, § 3, p. 922; Laws 1987, LB 440, § 10;    Laws 1989, LB 33, § 52;    Laws 1994, LB 1118, § 19;    Laws 1996, LB 1274, § 38;    Laws 2001, LB 362, § 51.    


Cross References

Annotations

77-2330. Repealed. Laws 1969, c. 584, § 134.

77-2331. Repealed. Laws 1969, c. 584, § 134.

77-2332. Repealed. Laws 1969, c. 584, § 134.

77-2333. Repealed. Laws 1972, LB 1044, § 1.

77-2334. Sinking funds of county, township and school districts; investment; conditions.

The county treasurer of any county in which there is a sinking fund on hand in the treasury for the redemption of outstanding county, township or school district bonds, when such sinking fund is not otherwise invested, shall invest such funds in legally issued and duly registered warrants and legally issued and duly registered county bonds of the county at face value of such warrants or county bonds in any amount he may deem advisable, not to exceed seventy-five percent of such fund, not otherwise invested and lying idle in the treasury; Provided, the time for payment of all such warrants or bonds so purchased shall be prior to the time when the sinking fund so invested should be in the hands of the treasurer for the purpose for which it was levied. All warrants or bonds so purchased shall be kept in the treasurer's office until paid by the respective funds on which they were drawn or issued in their regular order of registration.

Source:Laws 1897, c. 83, § 1, p. 357; Laws 1901, c. 75, § 1, p. 464; R.S.1913, § 6669; C.S.1922, § 6200; C.S.1929, § 77-2517; R.S.1943, § 77-2334.


Annotations

77-2335. Sinking funds of county and other governmental subdivisions; investment in registered warrants; purchase and holding for benefit of fund.

When any warrant issued by the proper authorities of any county, township, city, town or school district shall have been presented for payment and the same is not paid for want of funds, the treasurer shall, upon and under the direction of the county board of such county, purchase and take up such registered warrant with sinking funds in his hands and hold such warrant for the benefit of the fund so invested until the same is paid in its order, as provided by law.

Source:Laws 1895, c. 68, § 1, p. 241; R.S.1913, § 6670; C.S.1922, § 6201; C.S.1929, § 77-2518; R.S.1943, § 77-2335.


77-2336. Sinking funds of county; investment in registered warrants; authorization by county board; record.

The county board of any county in this state is authorized to provide for the purchase and taking up of registered warrants, as provided for in section 77-2335, out of the sinking funds in the hands of the county treasurer whenever in the judgment of such county board the same shall be safe and expedient. Before so investing any sinking funds, the county board shall fix and prescribe and enter of record general directions and authority to such county treasurer as to the funds to be invested, specifying the funds to be so invested, the kind and amount of warrants to be so invested in, and in so doing shall, as far as the same may be practicable, continue to invest the sinking fund which shall last become due and payable. Not more than fifty percent of the money so collected on any given sinking fund shall be so invested in warrants at any given time. When practicable, the warrants drawn by any given authority shall be provided for from the sinking funds belonging to the organization issuing such warrant, and of such provisions the county board shall give the treasurer notice.

Source:Laws 1895, c. 68, § 2, p. 241; R.S.1913, § 6671; C.S.1922, § 6202; C.S.1929, § 77-2519; R.S.1943, § 77-2336.


77-2337. Sinking funds of city; investment in warrants; limitation; direction to treasurer.

The city council of any incorporated city of this state may make similar provision for the taking up of warrants out of the sinking funds in the hands of the city treasurer of such city. The warrants to be so purchased shall be limited to those of its own issue or to those of any school district situated mainly or wholly within the boundaries of such city. Upon a notice given of such direction it shall be the duty of such treasurer to so take up such warrants.

Source:Laws 1895, c. 68, § 3, p. 242; R.S.1913, § 6672; C.S.1922, § 6203; C.S.1929, § 77-2520; R.S.1943, § 77-2337.


77-2338. Sinking funds of school district; investment in warrants; limitation; direction to treasurer.

The school board of any school district in this state is authorized to direct the legal custodian of any of its sinking funds to invest such sinking funds in the warrants of such school district in like manner as hereinbefore provided for. The investment of such school district sinking fund under this section shall be limited to the warrants of its own issue. Upon such direction of the school board, the custodian of such sinking funds shall proceed to take up the warrants of such school district as herein provided for.

Source:Laws 1895, c. 68, § 4, p. 243; R.S.1913, § 6673; C.S.1922, § 6204; C.S.1929, § 77-2521; R.S.1943, § 77-2338.


Annotations

77-2339. Sinking funds of township; investment in warrants; limitation; direction to county treasurer.

The township board in counties under township organization is authorized and instructed to direct the county treasurer to invest the sinking fund of the township in the custody of the county treasurer in the warrants of the township. The investment of the sinking fund shall be limited to warrants of its own issue. Upon an order of the township board properly signed by the supervisor and countersigned by the township clerk, the county treasurer shall invest the sinking fund for the benefit of the township as provided in this section.

Source:Laws 1895, c. 68, § 5, p. 243; R.S.1913, § 6674; C.S.1922, § 6205; C.S.1929, § 77-2522; R.S.1943, § 77-2339.


77-2340. County funds; investment of funds; time deposits; security required; exception.

The county treasurers of the various counties of the state may, upon resolution of their respective county boards authorizing the same, make time deposits in banks, capital stock financial institutions, or qualifying mutual financial institutions selected as depositories of county funds under the provisions of sections 77-2312 to 77-2315. The time deposits shall bear interest and shall be secured as set forth in section 77-2304 or 77-2320, except that the amount insured or guaranteed by the Federal Deposit Insurance Corporation shall be exempt from the requirement of being secured as provided by section 77-2320 or by bonds similar to the bond required and set forth in section 77-2304. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1931, c. 18, § 2, p. 90; C.S.Supp.,1941, § 77-2524; R.S.1943, § 77-2340; Laws 1961, c. 392, § 3, p. 1191; Laws 1972, LB 1069, § 7;    Laws 1975, LB 164, § 1;    Laws 1989, LB 33, § 53;    Laws 1992, LB 757, § 27;    Laws 2001, LB 362, § 52;    Laws 2009, LB259, § 17.    


77-2341. Funds of governmental subdivision; investment of surplus; securities authorized.

(1) Whenever any county, city, village, or other governmental subdivision, other than a school district, of the State of Nebraska has accumulated a surplus of any fund in excess of its current needs or has accumulated a sinking fund for the payment of its bonds and the money in such sinking fund exceeds the amount necessary to pay the principal and interest of any such bonds which become due during the current year, the governing body of such county, city, village, or other governmental subdivision may invest any such surplus in excess of current needs or such excess in its sinking fund in certificates of deposit, in time deposits, and in any securities in which the state investment officer is authorized to invest pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act and as provided in the authorized investment guidelines of the Nebraska Investment Council in effect on the date the investment is made. The state investment officer shall upon request furnish a copy of current authorized investment guidelines of the Nebraska Investment Council.

(2) Whenever any school district of the State of Nebraska has accumulated a surplus of any fund in excess of its current needs or has accumulated a fund for the payment of bonds and the money in such fund exceeds the amount necessary to pay the principal and interest of any such bonds which become due during the current year, the board of education of such school district may invest any such surplus in excess of current needs or such excess in the bond fund in securities in which such board of education is authorized to invest pursuant to section 79-1043.

(3) Nothing in subsection (1) of this section shall be construed to restrict investments authorized pursuant to section 14-563.

(4) Nothing in subsections (1), (2), and (3) of this section shall be construed to authorize investments in venture capital.

Source:Laws 1931, c. 152, § 1, p. 411; C.S.Supp.,1941, § 77-2528; Laws 1943, c. 179, § 1, p. 624; R.S.1943, § 77-2341; Laws 1959, c. 263, § 18, p. 947; Laws 1961, c. 392, § 4, p. 1191; Laws 1989, LB 221, § 6;    Laws 1994, LB 1066, § 83;    Laws 1996, LB 900, § 1062.    


Cross References

Annotations

77-2342. Metropolitan utilities district funds; deposit required.

A metropolitan utilities district shall deposit the funds received or held by the district in such bank, capital stock financial institution, or qualifying mutual financial institution, situated within the boundaries of such district, as shall have been and shall be from time to time approved by the governing body of such district as official depositories for the funds belonging to such district. Such deposit shall be made subject to the conditions in sections 77-2342 to 77-2349. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1933, c. 95, § 1, p. 378; C.S.Supp.,1941, § 77-2530; R.S.1943, § 77-2342; Laws 1989, LB 33, § 54;    Laws 1992, LB 746, § 75;    Laws 2001, LB 177, § 5;    Laws 2001, LB 362, § 53.    


77-2343. Metropolitan utilities district funds; depositories; designation; conditions.

Depositories shall be such banks, capital stock financial institutions, or qualifying mutual financial institutions as shall be from time to time designated by the governing body of a metropolitan utilities district by formal resolution duly recorded. Such designation may be withdrawn at any time by such governing body by formal resolution duly entered upon its records. No deposit shall be made except in a duly designated depository, and deposits shall be withdrawn by the district immediately upon the withdrawal of the designation of any bank, capital stock financial institution, or qualifying mutual financial institution as a depository. All deposits shall be subject to payment on demand upon the check or order of the district. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1933, c. 95, § 2, p. 378; Laws 1935, c. 6, § 1, p. 69; C.S.Supp.,1941, § 77-2531; R.S.1943, § 77-2343; Laws 1989, LB 33, 55;    Laws 2001, LB 177, § 6;    Laws 2001, LB 362, § 54.    


77-2344. Metropolitan utilities district funds; depositories; bond or securities authorized.

No deposit in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation shall be made in any bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository unless and until the metropolitan utilities district has received from such depository as security for the prompt repayment by the depository either a corporate surety bond in form and with sureties approved by formal resolution by the governing body of such district or the giving of security as provided in the Public Funds Deposit Security Act. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1933, c. 95, § 2, p. 378; Laws 1935, c. 6, § 1, p. 69; C.S.Supp.,1941, § 77-2531; R.S.1943, § 77-2344; Laws 1959, c. 263, § 19, p. 948; Laws 1989, LB 33, § 56;    Laws 1989, LB 377, § 15;    Laws 1992, LB 746, § 76;    Laws 1992, LB 757, § 28;    Laws 1996, LB 1274, § 39;    Laws 2001, LB 177, § 7;    Laws 2001, LB 362, § 55;    Laws 2009, LB259, § 18.    


Cross References

77-2345. Metropolitan utilities district funds; depositories; limitation on amount.

No deposit shall be made in any designated bank, capital stock financial institution, or qualifying mutual financial institution (1) in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation or (2) in excess of the obligation of the depository bond at the time any deposit of funds is made or during the period in which the deposit of funds remains in the depository. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1933, c. 95, § 2, p. 378; Laws 1935, c. 6, § 1, p. 69; C.S.Supp.,1941, § 77-2531; R.S.1943, § 77-2345; Laws 1989, LB 33, § 57;    Laws 1992, LB 757, § 29;    Laws 1996, LB 1274, § 40;    Laws 2001, LB 362, § 56;    Laws 2009, LB259, § 19.    


77-2346. Metropolitan utilities district funds; depositories; duty to keep list of securities.

A metropolitan utilities district shall at all times maintain a certified list of the securities furnished by any depository. Each depository shall supply directly to the governing body of the district a sworn monthly statement of the funds of the district on deposit in such depository. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1933, c. 95, § 2, p. 378; Laws 1935, c. 6, § 1, p. 69; C.S.Supp.,1941, § 77-2531; R.S.1943, § 77-2346; Laws 1989, LB 33, § 58;    Laws 1996, LB 1274, § 41;    Laws 2001, LB 177, § 8;    Laws 2001, LB 362, § 57.    


77-2347. Repealed. Laws 2001, LB 177, § 11.

77-2348. Repealed. Laws 2001, LB 177, § 11.

77-2349. Metropolitan utilities district funds; custodian of securities; withdrawal of funds.

A metropolitan utilities district shall be the custodian of securities in which funds of such district are invested, including the securities of such district itself. Except for funds deposited in a depository in strict accordance with all the requirements of sections 77-2342 to 77-2349, the district shall be liable for the accounting, safekeeping, and repayment of all funds received by the district. Any such district may at any time withdraw any funds on deposit in a depository or any funds in the district's possession and custody and invest such funds in such securities as may be designated by formal resolution of the governing body of such district.

Source:Laws 1933, c. 95, § 4, p. 379; C.S.Supp.,1941, § 77-2533; R.S.1943, § 77-2349; Laws 1989, LB 33, § 61;    Laws 1992, LB 746, § 77;    Laws 2001, LB 177, § 9.    


77-2350. School district or township funds; deposit; conditions.

The treasurer or ex officio treasurer of any school district or township shall deposit the funds received or held by him or her by virtue of his or her office in such bank, capital stock financial institution, or qualifying mutual financial institution, situated within the boundaries of such district or township, as shall have been and shall be from time to time designated by the governing body of such school district or township as official depositories for such funds. Depositories shall be such banks, capital stock financial institutions, or qualifying mutual financial institutions as shall be designated by the respective governing bodies by formal resolution duly recorded. Such designation may be withdrawn at any time by such governing body by formal resolution duly entered upon its records. If there is no bank, capital stock financial institution, or qualifying mutual financial institution within the boundaries of such school district or township or if the bank, capital stock financial institution, or qualifying mutual financial institution within the district refuses or neglects to make application as a depository, then the governing body may designate any bank, capital stock financial institution, or qualifying mutual financial institution within the state.

Source:Laws 1935, c. 5, § 1, p. 67; Laws 1939, c. 103, § 1, p. 462; C.S.Supp.,1941, § 77-2534; R.S.1943, § 77-2350; Laws 1967, c. 508, § 1, p. 1708; Laws 1988, LB 802, § 11;    Laws 1989, LB 33, § 62;    Laws 2001, LB 362, § 58.    


77-2350.01. School district or township funds; prorate deposits; when.

When more than one bank, capital stock financial institution, or qualifying mutual financial institution has been designated by the governing body of the school district or township as a depository, the treasurer or ex officio treasurer shall not give a preference but shall prorate deposits in the manner required of county treasurers as provided in section 77-2314. This section shall have no application to certificates of deposit. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1967, c. 508, § 4, p. 1710; Laws 1973, LB 247, § 1;    Laws 1988, LB 802, § 12;    Laws 1989, LB 33, § 63;    Laws 2001, LB 362, § 59.    


77-2350.02. School district or township treasurer; violation; penalty.

If the treasurer or ex officio treasurer of any school district or township willfully fails or refuses at any time to do or perform any act required of him or her by sections 77-2350 to 77-2352, he or she shall be guilty of a Class IV misdemeanor.

Source:Laws 1967, c. 508, § 5, p. 1710; Laws 1977, LB 39, § 235;    Laws 1988, LB 802, § 13.    


77-2351. Treasurers; when not liable on bond.

No treasurer or ex officio treasurer shall be liable on his or her bond for money on deposit in a bank, capital stock financial institution, or qualifying mutual financial institution and by direction of the proper legal authority, if the bank, capital stock financial institution, or qualifying mutual financial institution has given bond or gives security in accordance with section 77-2352. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1935, c. 5, § 2, p. 68; Laws 1937, c. 22, § 2, p. 135; Laws 1939, c. 103, § 2, p. 463; C.S.Supp.,1941, § 77-2535; R.S.1943, § 77-2351; Laws 1967, c. 508, § 2, p. 1708; Laws 1987, LB 109, § 1;    Laws 1989, LB 33, § 64;    Laws 1996, LB 1274, § 42;    Laws 2001, LB 362, § 60.    


77-2352. School district or township funds; security requirements.

No deposit in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation shall be made in any bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository unless and until the treasurer or ex officio treasurer has received from the depository as security for the prompt repayment by the depository either a corporate surety bond in form and with sureties approved by formal resolution by the governing body of such district or the giving of security as provided in the Public Funds Deposit Security Act. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1937, c. 22, § 2, p. 135; Laws 1939, c. 103, § 2, p. 463; C.S.Supp.,1941, § 77-2535; R.S.1943, § 77-2352; Laws 1959, c. 263, § 20, p. 948; Laws 1967, c. 508, § 3, p. 1709; Laws 1988, LB 802, § 14;    Laws 1989, LB 33, § 65;    Laws 1989, LB 377, § 16;    Laws 1992, LB 757, § 30;    Laws 1996, LB 1274, § 43;    Laws 2001, LB 362, § 61;    Laws 2009, LB259, § 20.    


Cross References

77-2353. Public power and irrigation district funds; deposit required.

All funds of any public power district, public irrigation district, or public power and irrigation district organized and existing under the laws of this state shall be deposited by the treasurer or other competent officer of such district in such bank, capital stock financial institution, or qualifying mutual financial institution as shall have been designated as official depositories for the funds belonging to such district. Such deposits shall either be made in accordance with and subject to agreements of such district with its bondholders or noteholders or, in the absence of any such agreement, shall be subject to the provisions and conditions provided in sections 77-2353 to 77-2361. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1941, c. 160, § 1, p. 642; C.S.Supp.,1941, § 77-2537; R.S.1943, § 77-2353; Laws 1969, c. 544, § 2, p. 2198; Laws 1989, LB 33, § 66;    Laws 2001, LB 362, § 62.    


77-2353.01. Public power districts; authorized investments.

In addition to other authorized investments, public power districts are authorized to invest and reinvest in: (1) Direct obligations of or obligations guaranteed by the United States of America; (2) bonds, debentures, or notes issued by any of the following federal agencies: Bank for Cooperatives; Federal Intermediate Banks; Federal Home Loan Bank System; Export-Import Bank of Washington; Federal Land Banks; or the Federal National Mortgage Association including participation certificates issued by such association; (3) public housing bonds purchased on the open market, issued by public housing authorities, and fully secured as to the payment of both principal and interest by a pledge of annual contributions under an annual contributions contract or contracts with the United States of America or temporary notes issued by public housing authorities or preliminary loan notes issued by local public agencies, in each case, fully secured as to the payment of both principal and interest by a requisition or a payment agreement with the United States of America; (4) direct and general obligations of any state within the territorial United States to the payment of the principal of and interest on which the full credit of such state is pledged; (5) bonds, debentures, notes, or other instruments of indebtedness issued by a bank or other financial lending institution, whether public or privately owned, established by rural electric cooperatives and public power districts to provide supplemental financing in addition to financing available from the Rural Electrification Administration; (6) bonds, debentures, notes, or other instruments of indebtedness of a nonprofit rural electric supply cooperative organization providing electric line materials and other related equipment without profit to its members, including public power districts; (7) stocks, bonds, debentures, notes, or other instruments of indebtedness issued by an insurance carrier providing insurance coverage to such public power district; (8) stocks, bonds, debentures, notes, or other instruments of indebtedness issued by corporations having authority to sell, lease, and service satellite television signal descrambling or decoding devices and satellite television programming; and (9) time certificates of deposit issued by any bank, capital stock financial institution, or qualifying mutual financial institution meeting the requirements of sections 77-2354 to 77-2357. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Public power districts when authorized by their respective boards of directors are authorized to take such action as may be necessary in order to carry out the foregoing investment authorization.

Source:Laws 1969, c. 544, § 1, p. 2197; Laws 1973, LB 47, § 1;    Laws 1982, LB 644, § 1;    Laws 1987, LB 246, § 1;    Laws 1989, LB 33, § 67;    Laws 1989, LB 113, § 1;    Laws 2001, LB 362, § 63.    


77-2354. Public power and irrigation district funds; designation of depositories.

Depositories shall be such banks, capital stock financial institutions, and qualifying mutual financial institutions as shall be from time to time designated by the board of directors of such district by formal resolution duly recorded in the minutes of the proceedings of such board. Such designation may be withdrawn at any time by the board of directors of such district by formal resolution duly entered upon its records, whereupon all such deposits, except those represented by time certificates of deposit, in such bank, capital stock financial institution, or qualifying mutual financial institution shall be immediately withdrawn. All deposits, except those invested in time certificates of deposit, shall be subject to payment on demand upon the check or order of the duly authorized officer or officers of the district. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2354; Laws 1973, LB 47, § 2;    Laws 1989, LB 33, § 68;    Laws 2001, LB 362, § 64.    


77-2355. Public power and irrigation district funds; depositories; bond or security required.

No deposits in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation shall be made or be allowed to accumulate in any bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository unless and until the treasurer or other competent officer of the district has received from such depository as security for the prompt repayment of such deposits by the depository either a surety bond in form and with corporate sureties approved by formal resolution of the board of directors of such district or, in lieu thereof, the giving of security as provided in the Public Funds Deposit Security Act. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2355; Laws 1959, c. 263, § 21, p. 949; Laws 1989, LB 33, § 69;    Laws 1989, LB 377, § 17;    Laws 1992, LB 757, § 31;    Laws 1996, LB 1274, § 44;    Laws 2001, LB 362, § 65;    Laws 2009, LB259, § 21.    


Cross References

77-2356. Public power and irrigation district funds; deposits; limitation.

The deposits secured by a surety bond shall at no time exceed the amount of the penal sum of such surety bond.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2356; Laws 1996, LB 1274, § 45.    


77-2357. Public power and irrigation district funds; depositories; power to enter into agreement.

Every depository is authorized to secure deposits by giving bond or giving security, as provided in sections 77-2353 to 77-2361, and otherwise to enter into and become a party to any contract or arrangement, not inconsistent with the provisions hereof, as may be reasonably necessary or proper to render fully effective the provisions of such sections. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2357; Laws 1989, LB 33, § 70;    Laws 1996, LB 1274, § 46;    Laws 2001, LB 362, § 66.    


77-2358. Public power and irrigation district funds; depositories; duty of treasurer to keep list of securities.

The treasurer or other competent officer of the district shall at all times keep and certify to the district a complete and correct list and description of the securities furnished by any depository. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2358; Laws 1989, LB 33, § 71;    Laws 1996, LB 1274, § 47;    Laws 2001, LB 362, § 67.    


77-2359. Public power and irrigation district funds; depositories; statement of funds on deposit.

Each depository shall furnish directly to the board of directors of the district, or to an officer of the district designated by the board, a sworn monthly statement of the funds of the district on deposit in such depository.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2359; Laws 1989, LB 33, § 72;    Laws 1996, LB 1274, § 48.    


77-2360. Public power and irrigation district funds; deposit of funds; rules and regulations.

The board of directors of any such district may from time to time adopt and promulgate such rules and regulations governing the handling of its funds by the treasurer or other designated officers of the district and otherwise governing the relationship between such district and its depository as shall not conflict with the express provisions of sections 77-2353 to 77-2361 or other provisions of law. It shall be the duty of the treasurer and all other officers thus designated or otherwise charged by law with the handling of funds of the district to comply with such rules and regulations.

Source:Laws 1941, c. 160, § 2, p. 642; C.S.Supp.,1941, § 77-2538; R.S.1943, § 77-2360; Laws 1989, LB 33, § 73.    


77-2361. Public power and irrigation district funds; treasurer or other officer; not liable on bond.

Neither the treasurer, nor other officer of the district charged with the handling of its funds, nor their sureties shall be liable for any loss resulting from the failure of any bank, capital stock financial institution, or qualifying mutual financial institutions as to any such deposits made and maintained as provided in sections 77-2353 to 77-2361. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1941, c. 160, § 3, p. 644; C.S.Supp.,1941, § 77-2539; R.S.1943, § 77-2361; Laws 1989, LB 33, § 74;    Laws 2001, LB 362, § 68.    


77-2362. Public funds; depositories; security.

Whenever, by the laws of this state, any municipal corporation or other governmental subdivision of the state is authorized or required to obtain or accept from banks, capital stock financial institutions, or qualifying mutual financial institutions surety bonds or other bonds as security for deposits of public funds belonging to such municipal corporation or other governmental subdivision, the insurance or guarantee afforded to depositors in banks, capital stock financial institutions, or qualifying mutual financial institutions through the Federal Deposit Insurance Corporation, organized under the laws of the United States, shall be deemed and construed to be, for the purposes of such laws, a surety bond or bonds to the extent that such deposits are insured or guaranteed by such corporation, and for deposits so insured or guaranteed, no other surety bond or bonds or other security shall be required. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1935, c. 140, § 1, p. 515; C.S.Supp.,1941, § 77-2536; R.S.1943, § 77-2362; Laws 1989, LB 33, § 75;    Laws 1992, LB 757, § 32;    Laws 2001, LB 362, § 69;    Laws 2009, LB259, § 22.    


77-2363. Public funds; actions to recover; validity of contracts.

In all cases in which public money or funds belonging to the United States, an agency of the United States, the State of Nebraska, or any political subdivision in this state have been deposited or loaned to any person or persons, corporation, bank, capital stock financial institution, qualifying mutual financial institution, partnership, limited liability company, or other firm or association of persons, it shall be lawful for the officer or officers making such deposit or loan or his, her, or their successors in office to maintain an action or actions for the recovery of such money so deposited or loaned. All contracts made for the security or payment of any such money or public funds shall be held to be good and lawful contracts binding on all parties thereto.

Source:Laws 1879, § 1, p. 156; R.S.1913, § 6675; C.S.1922, § 6212; C.S.1929, § 77-2601; Laws 1933, c. 120, § 1, p. 488; Laws 1935, c. 4, § 1, p. 66; Laws 1937, c. 169, § 1, p. 674; C.S.Supp.,1941, § 77-2601; Laws 1943, c. 19, § 5, p. 105; R.S.1943, § 77-2363; Laws 1987, LB 440, § 11;    Laws 1988, LB 802, § 15;    Laws 1989, LB 33, § 76;    Laws 1990, LB 1165, § 1;    Laws 1993, LB 121, § 498;    Laws 1994, LB 1118, § 20;    Laws 1996, LB 1274, § 49;    Laws 2001, LB 362, § 70.    


Annotations

77-2364. Public funds; depositories; authority to give bond or security.

All depositories of public money or other funds belonging to the United States, the State of Nebraska, or the political subdivisions in this state shall have full authority to give bond for the safekeeping and payment of such deposits and the accretions thereof. In lieu of such bond, such depositories shall have full authority to give security as provided in the Public Funds Deposit Security Act. The State of Nebraska and any political subdivision in this state are hereby given the right and authority to accept such bonds or, in lieu thereof, such giving of security as provided in the act. Nothing in this section shall be construed to in any manner affect the liability of any surety or signers of any official bond hereafter given or made in this state.

Source:Laws 1879, § 1, p. 156; R.S.1913, § 6675; C.S.1922, § 6212; C.S.1929, § 77-2601; Laws 1933, c. 120, § 1, p. 488; Laws 1935, c. 4, § 1, p. 66; Laws 1937, c. 169, § 1, p. 674; C.S.Supp.,1941, § 77-2601; Laws 1943, c. 19, § 5, p. 105; R.S.1943, § 77-2364; Laws 1989, LB 33, § 77;    Laws 1996, LB 1274, § 50.    


Cross References

Annotations

77-2365. Revenue-Sharing Trust Fund; created; investment; expenditure.

There is hereby established in the state treasury a special fund to be known as the Revenue-Sharing Trust Fund to which shall be credited all funds received by the state under the federal State and Local Fiscal Assistance Act of 1972, Public Law 92-512, or act successor thereto and to which shall be credited all earnings from the investment thereof. No expenditure shall be made from such fund except upon specific appropriation by the Legislature. Any such appropriation shall in all respects comply with the terms of the law and rules and regulations pursuant to which the federal government disburses such funds to the state. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1973, LB 122, § 1;    Laws 1995, LB 7, § 87.    


Cross References

77-2365.01. Funds of state or political subdivisions; deposit with qualifying mutual financial institutions; conditions.

(1)(a) Notwithstanding any other provision of law, any local ordinance, regulation, or resolution, or any rule or regulation to the contrary, the funds of this state or any political subdivision of the state may be deposited, by the appropriate custodians of such funds, with qualifying mutual financial institutions to the same extent and subject to the same terms, conditions, and limitations, including collateralization required, if any, as may be otherwise provided for the deposit of such funds in banks and capital stock financial institutions. In making such a deposit of public funds, it shall not be necessary for the state or any political subdivision to become an owner of any interest in the qualifying mutual financial institution or to acquire voting rights therein, and a qualifying mutual financial institution is authorized and empowered to receive public funds under these conditions. Qualifying mutual financial institution means a state or federal mutual building and loan association, a state or federal mutual savings and loan association, a state or federal mutual savings bank, or a state or federal mutual organized bank, which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a qualifying mutual financial institution which maintained a main chartered office in this state prior to becoming a branch of such qualifying mutual financial institution, which, by its charter and bylaws, restricts the rights of the state or a political subdivision as an account holder as follows:

(i) Interest in the qualifying mutual financial institution is limited to the withdrawal value of the state's or the political subdivision's account;

(ii) The state or the political subdivision has no voting rights in the qualifying mutual financial institution; and

(iii) The state or the political subdivision has no entitlement to any distribution of assets upon voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the qualifying mutual financial institution.

(b) To the extent any deposit in any bank is:

(i) Required to be subject to check or draft, then such deposit may be subject to order; and

(ii) Required to be made, maintained, or otherwise dealt with by reference to the capital of any bank, then it may be so made, maintained, or dealt with by reference to the capital or net worth of such qualifying mutual financial institution, and if by reference to the undivided profits, capital notes, debentures, or other capital items of any bank, then to any unimpaired reserves, capital notes, and debentures or comparable capital items of such qualifying mutual financial institution.

(2) To the extent the state or a political subdivision is or may ever be required by law to deposit funds in a bank, the state or political subdivision shall, to the same extent and subject to the same terms, conditions, and limitations, including collateralization required, be required to make deposits in a qualifying mutual financial institution on the same basis.

(3) The restriction in subdivision (1)(a)(iii) of this section shall not apply to the interest of the state or political subdivision in any security required by law to be furnished by the qualifying mutual financial institution.

(4) A qualifying mutual financial institution that amends its charter or bylaws in such a manner that it no longer meets the restrictions set forth in subdivisions (1)(a)(i) through (iii) of this section shall immediately give notice that it is no longer a qualifying mutual financial institution to the custodial official, as that term is defined in section 77-2387, of every state and political subdivision depositor, and that the state or political subdivision must immediately withdraw its deposits.

(5) This section shall be applied in a manner consistent with the intention of the Legislature which is to provide for the deposit of funds of the state or any political subdivision in qualifying mutual financial institutions.

Source:Laws 2001, LB 362, § 1;    Laws 2003, LB 175, § 13;    Laws 2004, LB 999, § 48.    


77-2365.02. Funds of state or political subdivisions; investment or deposit in interest-bearing deposits; conditions.

Notwithstanding any other provision of law, to the extent that the funds of this state or any political subdivision of this state may be invested or deposited, by the appropriate custodian of such funds, in interest-bearing deposits with banks, capital stock financial institutions, or qualifying mutual financial institutions, such authorization may include the investment or deposit of funds in interest-bearing deposits in accordance with the following conditions as an alternative to the furnishing of securities or the providing of a deposit guaranty bond pursuant to the Public Funds Deposit Security Act:

(1) The bank, capital stock financial institution, or qualifying mutual financial institution in this state through which the investment or deposit of funds is initially made arranges for the deposit of a portion or all of such funds in interest-bearing deposits with other banks, capital stock financial institutions, or qualifying mutual financial institutions located in the United States;

(2) Each such interest-bearing deposit is fully insured or guaranteed by the Federal Deposit Insurance Corporation;

(3) The bank, capital stock financial institution, or qualifying mutual financial institution through which the investment or deposit of funds was initially made acts as a custodian for the state or political subdivision with respect to any such interest-bearing deposit issued for the account of the state or political subdivision; and

(4) At the same time that the funds are deposited into other banks, capital stock financial institutions, or qualifying mutual financial institutions, the bank, capital stock financial institution, or qualifying mutual financial institution through which the investment or deposit of funds in interest-bearing deposits was initially made receives an amount of deposits from customers of other banks, capital stock financial institutions, or qualifying mutual financial institutions located in the United States which is equal to or greater than the amount of the investment or deposit of funds in interest-bearing deposits initially made by the state or political subdivision.

Source:Laws 2004, LB 999, § 51;    Laws 2009, LB259, § 23;    Laws 2012, LB836, § 1.    


Cross References

77-2366. Funds of state or political subdivisions; deposit with capital stock financial institutions; conditions.

(1) Notwithstanding any other provision of law, any local ordinance or regulation, or any rule or regulation to the contrary, the funds of this state or any political subdivision of the state may be deposited, by the appropriate custodians of such funds, with capital stock financial institutions to the same extent and subject to the same terms, conditions, and limitations, including collateralization required, if any, as may be otherwise provided for the deposit of such funds in banks. Capital stock financial institutions shall include state and national banks, capital stock state building and loan associations, capital stock federal savings and loan associations, capital stock federal savings banks, and capital stock state savings banks, which have a main chartered office in this state, any branch thereof in this state, or any branch in this state of a capital stock financial institution which maintained a main chartered office in this state prior to becoming a branch of such capital stock financial institution. To the extent any deposit in any bank is:

(a) Required to be subject to check or draft, then such deposit may be subject to order; and

(b) Required to be made, maintained, or otherwise dealt with by reference to the capital of any bank, then it may be so made, maintained, or dealt with by reference to the capital or net worth of such financial institution, and if by reference to the undivided profits, capital notes, debentures, or other capital items of any bank, then to any unimpaired reserves, capital notes, and debentures or comparable capital items of such other financial institution.

(2) To the extent the state or any political subdivision is or may ever be required by any law to deposit funds in any bank, the state or any such political subdivision shall, to the same extent and subject to the same terms, conditions, and limitations, including collateralization required, be required to make deposits in any capital stock financial institution on the same basis.

(3) This section shall be applied in a manner consistent with the intention of the Legislature which is to provide for the deposit of funds of the state and any political subdivision in capital stock financial institutions.

Source:Laws 1988, LB 488, § 1;    Laws 1992, LB 757, § 33;    Laws 2003, LB 131, § 36;    Laws 2004, LB 999, § 49.    


77-2367. Revisor of Statutes; duty.

In any section of the law dealing with the deposit of funds of any political subdivision, the Revisor of Statutes shall substitute or add the term capital stock financial institution, as defined in section 77-2366, for the term bank so long as the result is not inconsistent with the intention of sections 77-2366 and 77-2367.

Source:Laws 1988, LB 488, § 2;    Laws 1989, LB 33, § 78.    


77-2368. Sale of recyclable and reusable products, materials, and supplies; proceeds; disposition.

Revenue from the sale by the state of recyclable and reusable products, materials, and supplies shall be remitted to the State Treasurer for credit to the Resource Recovery Fund.

Source:Laws 1990, LB 163, § 8.    


77-2369. Local hospital district; funds; deposit required; secretary-treasurer; duties.

The secretary-treasurer of each local hospital district in the State of Nebraska shall deposit, and at all times keep on deposit for safekeeping in the state or national banks, capital stock financial institutions, or qualifying mutual financial institutions doing business in the district of approved and responsible standing, the amount of money in his or her hands collected and held by him or her as secretary-treasurer. Any check, draft, order, or other negotiable instrument deposited by the secretary-treasurer, except when drawn upon the bank, capital stock financial institution, or qualifying mutual financial institution in which the deposit is made, shall be received by the bank, capital stock financial institution, or qualifying mutual financial institution for collection only and shall be subject to final payment thereof to the bank, capital stock financial institution, or qualifying mutual financial institution. Collection of such items shall be in the usual course of business and except for its own negligence, the bank, capital stock financial institution, or qualifying mutual financial institution shall not be liable thereon until and unless payment is actually received. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 1;    Laws 2001, LB 362, § 71.    


77-2370. Local hospital district; selection of depository; procedure.

Any bank, capital stock financial institution, or qualifying mutual financial institution located in the district may apply for the privilege of keeping money upon the following conditions: All deposits shall be subject to payment when demanded by the secretary-treasurer on his or her check or order and subject also to such regulations as are imposed by law and the rules adopted by the secretary-treasurer for holding and receiving such deposits. It shall be the duty of the board of directors to act on the application or applications of any and all banks, capital stock financial institutions, or qualifying mutual financial institutions, state or national, as may ask for the privilege of becoming the depository of such money, as well as to approve the bonds of those selected incident to such relation, and the secretary-treasurer shall not deposit such money or any part thereof in any bank, capital stock financial institution, or qualifying mutual financial institution other than such as may have been so selected by the board of directors for such purposes, if any such bank, capital stock financial institution, or qualifying mutual financial institution has been so selected by the board of directors.

Source:Laws 1994, LB 1118, § 2;    Laws 2001, LB 362, § 72.    


77-2371. Local hospital district; deposits; requirements.

When more than one bank, capital stock financial institution, or qualifying mutual financial institution may have been selected by the board of directors as depositories, the secretary-treasurer shall not give a preference to any one or more of them in the money he or she may so deposit, but shall keep deposited with each of such banks, capital stock financial institutions, or qualifying mutual financial institutions such a part of the money as the capital of such bank, capital stock financial institution, or qualifying mutual financial institution as of December 31 of the preceding year is a part of the amount of all the capital of all the banks, capital stock financial institutions, or qualifying mutual financial institutions so selected as of December 31 of the preceding year, so that such money may at all times be deposited with such banks, capital stock financial institutions, or qualifying mutual financial institutions pro rata as to their capital, except that the secretary-treasurer may select one or more banks, capital stock financial institutions, or qualifying mutual financial institutions to be used for active accounts in which he or she may keep deposited in excess of these requirements only such funds as may be necessary for the transaction of ordinary day-to-day requirements. For purposes of this section, capital shall mean capital stock, surplus, undivided profits, capital notes or debentures, and other unimpaired reserves. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 3;    Laws 1996, LB 1274, § 51;    Laws 2001, LB 362, § 73.    


77-2372. Local hospital district; investments authorized; interest; how credited.

A secretary-treasurer may by and with the consent of the board of directors invest in United States Government bonds, bonds and debentures issued either singly or collectively by any of the twelve federal land banks, the twelve intermediate credit banks, or the thirteen banks for cooperatives under the supervision of the Farm Credit Administration, United States Treasury notes, bills, or certificates of indebtedness maturing within two years from the date of purchase, or in certificates of deposit. Every secretary-treasurer having invested in such securities shall deliver the same to his or her successor, who shall receive and accept the same as funds of the office. The interest received on any investments authorized by this section and section 77-2385 shall be credited to the general fund of the local hospital district, or to a fund to be used exclusively for the purposes contemplated by the provisions of section 23-3548, in the discretion of the board of directors. If such interest is received on a fund which shall not have been commingled with any other fund for investment purposes, then any interest received shall be credited to the fund from which the investment shall have been made. It shall be in the discretion of the board of directors whether any fund shall be commingled or invested from an identifiable account.

Source:Laws 1994, LB 1118, § 4.    


77-2373. Local hospital district; depositories; bond requirements; payment of deposits.

For the security of the funds deposited under the provisions of sections 77-2369 to 77-2385, the secretary-treasurer shall require all such depositories to give bonds for the safekeeping and payment of such deposits and the accretions thereof, except as otherwise provided in section 77-2385 for time deposits. The bond shall run to the people of the local hospital district, be approved by the board of directors, and be conditioned that the depository shall, at the end of each and every month, render to the secretary-treasurer and the board of directors a statement in duplicate showing the several daily balances and the amounts of money of the local hospital district held by it during the month and how credited. For the payment of the deposits, the depository shall render such deposits when demanded by the secretary-treasurer on his or her check at any time, perform whatever else is required by sections 77-2369 to 77-2385, and faithfully discharge the trust reposed in such depository.

Source:Laws 1994, LB 1118, § 5.    


77-2374. Local hospital district; bond; surety; limitation.

The bond in substance shall be similar to the bond required and set forth in section 77-2304. No person in any way connected with any depository bank, capital stock financial institution, or qualifying mutual financial institution as an officer or stockholder shall be accepted as a surety on any bond given by the bank, capital stock financial institution, or qualifying mutual financial institution of which he or she is an officer or stockholder.

Source:Laws 1994, LB 1118, § 6;    Laws 1996, LB 1274, § 52;    Laws 2001, LB 362, § 74.    


77-2375. Local hospital district; deposit; limitation on amount; excess deposit; security required.

The secretary-treasurer shall not have on deposit in any bank, capital stock financial institution, or qualifying mutual financial institution at any time more money than the amount insured or guaranteed by the Federal Deposit Insurance Corporation, plus the maximum amount of the bond given by such bank, capital stock financial institution, or qualifying mutual financial institution in cases when the bank, capital stock financial institution, or qualifying mutual financial institution gives a guaranty bond, except as provided in section 77-2376. The amount on deposit at any time with any bank, capital stock financial institution, or qualifying mutual financial institution shall not exceed fifty percent of the capital and surplus of such bank, capital stock financial institution, or qualifying mutual financial institution, except as provided in section 77-2376. When the amount of money which the secretary-treasurer desires to deposit in the banks, capital stock financial institutions, or qualifying mutual financial institutions within the district exceeds fifty percent of the capital and surplus of all of the banks, capital stock financial institutions, or qualifying mutual financial institutions in such local hospital district, the secretary-treasurer may, with the consent of the board of directors, deposit an amount in excess thereof, but not exceeding the capital and surplus in any one bank, capital stock financial institution, or qualifying mutual financial institution, unless the depository gives security as provided in section 77-2376. Bond shall be required of all banks, capital stock financial institutions, or qualifying mutual financial institutions for such excess deposit, unless security is given in accordance with section 77-2376. The bonds shall be deposited with the secretary-treasurer and approved by the board of directors. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 7;    Laws 1996, LB 1274, § 53;    Laws 2001, LB 362, § 75;    Laws 2009, LB259, § 24.    


77-2376. Local hospital district; excess deposit; security requirements.

The secretary-treasurer may deposit in any bank, capital stock financial institution, or qualifying mutual financial institution of the local hospital district in which he or she is secretary-treasurer amounts in excess of amounts authorized in section 77-2375 when (1) the depository secures the deposits by giving security as provided in the Public Funds Deposit Security Act and (2) the same is approved by a formal resolution of the board of directors. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 8;    Laws 1996, LB 1274, § 54;    Laws 2001, LB 362, § 76.    


Cross References

77-2377. Local hospital district; deposit in institutions outside district; when.

When banks, capital stock financial institutions, or qualifying mutual financial institutions located in the local hospital district refuse or neglect to bid on money of the local hospital district, when there are no banks, capital stock financial institutions, or qualifying mutual financial institutions in the local hospital district, or when the banks, capital stock financial institutions, or qualifying mutual financial institutions located in the local hospital district do not have sufficient capital and surplus to receive such money under sections 77-2369 to 77-2385, then any surplus over the amount specified that banks, capital stock financial institutions, or qualifying mutual financial institutions in the local hospital district may receive shall be deposited in banks, capital stock financial institutions, or qualifying mutual financial institutions outside of the local hospital district having sufficient capital and surplus under the same conditions and terms as if in the local hospital district. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 9;    Laws 2001, LB 362, § 77.    


77-2378. Local hospital district; security in lieu of bond authorized.

In lieu of a bond as provided in sections 77-2373 to 77-2377, any bank, capital stock financial institution, or qualifying mutual financial institution making application to become a depository under sections 77-2369 to 77-2385 may give security as provided in the Public Funds Deposit Security Act to the secretary-treasurer. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 10;    Laws 1996, LB 1274, § 55;    Laws 2001, LB 362, § 78.    


Cross References

77-2379. Repealed. Laws 1996, LB 1274, § 57.

77-2380. Repealed. Laws 1996, LB 1274, § 57.

77-2381. Local hospital district; violations; penalty.

Any treasurer or any officer of a bank, capital stock financial institution, or qualifying mutual financial institution who shall directly or indirectly violate or knowingly permit to be violated the provisions of sections 77-2373 to 77-2381, so far as such sections relate to the deposit of public money in a bank, capital stock financial institution, or qualifying mutual financial institution, shall be guilty of a Class IV felony. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 13;    Laws 2001, LB 362, § 79.    


77-2382. Local hospital district; secretary-treasurer; duty.

It shall be the duty of the secretary-treasurer to use all reasonable and proper means to secure to the local hospital district the best terms for the depositing of the money belonging to the local hospital district consistent with the safekeeping and prompt payment of the funds of the local hospital district when demanded.

Source:Laws 1994, LB 1118, § 14.    


77-2383. Local hospital district; secretary-treasurer; prohibited acts; violation; penalty; liability on bond.

The making of profit, directly or indirectly, by the secretary-treasurer out of any money in the local hospital district treasury belonging to the local hospital district, the custody of which the secretary-treasurer is charged with, by loaning or depositing or otherwise using or depositing the same in any manner, or the removal by the secretary-treasurer or by his or her consent of such money or a part thereof out of the vault of the secretary-treasurer's department or any legal depository of such money, except for the payment of warrants legally drawn or for the purpose of depositing the same in the banks, capital stock financial institutions, or qualifying mutual financial institutions selected as depositories under the provisions of sections 77-2369 to 77-2385, shall be deemed a Class IV felony, and the secretary-treasurer shall also be liable under and upon his or her official bond for all profits realized from such unlawful using of such funds.

Source:Laws 1994, LB 1118, § 15;    Laws 2001, LB 362, § 80.    


77-2384. Local hospital district; secretary-treasurer; violation; penalty; recovery under bond; procedure.

If the secretary-treasurer shall willfully fail or refuse at any time to do or perform any act required of him or her by sections 77-2369 to 77-2385, he or she shall be guilty of a Class I misdemeanor. It shall be the duty of the appropriate county attorney or the Attorney General to enter and prosecute to final determination all suits for the recovery of any penalty arising under the conditions of any bond required to be given by the provisions of such sections.

Source:Laws 1994, LB 1118, § 16.    


77-2385. Local hospital district; time deposits authorized; requirements.

The secretary-treasurers of the various local hospital districts of the state may, upon resolution of their respective boards of directors authorizing such action, make time deposits in banks, capital stock financial institutions, or qualifying mutual financial institutions selected as depositories of the local hospital district funds under sections 77-2369 to 77-2372. The time deposits shall bear interest and shall be secured as set forth in section 77-2304 or 77-2378, except that the amount insured or guaranteed by the Federal Deposit Insurance Corporation shall be exempt from the requirement of being secured as provided by section 77-2378 or by bonds similar to the bond required and set forth in section 77-2304. Section 77-2366 shall apply to deposits in capital stock financial institutions. Section 77-2365.01 shall apply to deposits in qualifying mutual financial institutions.

Source:Laws 1994, LB 1118, § 17;    Laws 2001, LB 362, § 81;    Laws 2009, LB259, § 25.    


77-2386. Act, how cited.

Sections 77-2386 to 77-23,108 shall be known and may be cited as the Public Funds Deposit Security Act.

Source:Laws 1996, LB 1274, § 1;    Laws 2000, LB 932, § 38;    Laws 2019, LB622, § 1.    


77-2387. Terms, defined.

For purposes of the Public Funds Deposit Security Act, unless the context otherwise requires:

(1) Affiliate means any entity that controls, is controlled by, or is under common control with another entity;

(2) Bank means any state-chartered or federally chartered bank which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a state-chartered or federally chartered bank which maintained a main chartered office in this state prior to becoming a branch of such state-chartered or federally chartered bank;

(3) Capital stock financial institution means a capital stock state building and loan association, a capital stock federal savings and loan association, a capital stock federal savings bank, and a capital stock state savings bank, which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a capital stock financial institution which maintained a main chartered office in this state prior to becoming a branch of such capital stock financial institution;

(4) Control means to own directly or indirectly or to control in any manner twenty-five percent of the voting shares of any bank, capital stock financial institution, or holding company or to control in any manner the election of the majority of directors of any bank, capital stock financial institution, or holding company;

(5) Custodial official means an officer or an employee of the State of Nebraska or any political subdivision who, by law, is made custodian of or has control over public money or public funds subject to the act or the security for the deposit of public money or public funds subject to the act;

(6) Deposit guaranty bond means a bond underwritten by an insurance company authorized to do business in this state which provides coverage for deposits of a governing authority which are in excess of the amounts insured or guaranteed by the Federal Deposit Insurance Corporation;

(7) Director means the Director of Banking and Finance;

(8) Event of default means the issuance of an order by a supervisory authority or a receiver which restrains a bank, capital stock financial institution, or qualifying mutual financial institution from paying its deposit liabilities;

(9) Governing authority means the official, or the governing board, council, or other body or group of officials, authorized to designate a bank, capital stock financial institution, or qualifying mutual financial institution as a depository of public money or public funds subject to the act;

(10) Governmental unit means the State of Nebraska or any political subdivision thereof;

(11) Political subdivision means any county, city, village, township, district, authority, or other public corporation or entity, whether organized and existing under direct provisions of the Constitution of Nebraska or laws of the State of Nebraska or by virtue of a charter, corporate articles, or other legal instruments executed under authority of the constitution or laws, including any entity created pursuant to the Interlocal Cooperation Act or the Joint Public Agency Act;

(12) Qualifying mutual financial institution shall have the same meaning as in section 77-2365.01;

(13) Repurchase agreement means an agreement to purchase securities by the governing authority by which the counterparty bank, capital stock financial institution, or qualifying mutual financial institution will repurchase the securities on or before a specified date and for a specified amount and the counterparty bank, capital stock financial institution, or qualifying mutual financial institution will deliver the underlying securities to the governing authority by book entry, physical delivery, or third-party custodial agreement. The transfer of underlying securities to the counterparty bank's, capital stock financial institution's, or qualifying mutual financial institution's customer book entry account may be used for book entry delivery if the governing authority so chooses; and

(14) Securities means:

(a) Bonds or obligations fully and unconditionally guaranteed both as to principal and interest by the United States Government;

(b) United States Government notes, certificates of indebtedness, or treasury bills of any issue;

(c) United States Government bonds;

(d) United States Government guaranteed bonds or notes;

(e) Bonds or notes of United States Government agencies;

(f) Bonds of any state or political subdivision which are fully defeased as to principal and interest by any combination of bonds or notes authorized in subdivision (c), (d), or (e) of this subdivision;

(g) Bonds or obligations, including mortgage-backed securities and collateralized mortgage obligations, issued by or backed by collateral one hundred percent guaranteed by the Federal Home Loan Mortgage Corporation, the Federal Farm Credit System, a Federal Home Loan Bank, or the Federal National Mortgage Association;

(h) Student loans backed or partially guaranteed by the United States Department of Education;

(i) Repurchase agreements the subject securities of which are any of the securities described in subdivisions (a) through (g) of this subdivision;

(j) Securities issued under the authority of the Federal Farm Loan Act;

(k) Loan participations which carry the guarantee of the Commodity Credit Corporation, an instrumentality of the United States Department of Agriculture;

(l) Guaranty agreements of the Small Business Administration of the United States Government;

(m) Bonds or obligations of any county, city, village, metropolitan utilities district, public power and irrigation district, sewer district, fire protection district, rural water district, or school district in this state which have been issued as required by law;

(n) Bonds of the State of Nebraska or of any other state which are purchased by the Board of Educational Lands and Funds of this state for investment in the permanent school fund or which are purchased by the state investment officer of this state for investment in the permanent school fund;

(o) Bonds or obligations of another state, or a political subdivision of another state, which are rated within the two highest classifications by at least one of the standard rating services, with such classifications to include the underlying credit rating or enhanced credit rating, whichever is higher, with respect to bonds or obligations of a political subdivision of another state;

(p) Warrants of the State of Nebraska;

(q) Warrants of any county, city, village, local hospital district, or school district in this state;

(r) Irrevocable, nontransferable, unconditional standby letters of credit issued by a Federal Home Loan Bank; and

(s) Certificates of deposit fully insured or guaranteed by the Federal Deposit Insurance Corporation that are issued to a bank, capital stock financial institution, or qualifying mutual financial institution furnishing securities pursuant to the Public Funds Deposit Security Act.

Source:Laws 1996, LB 1274, § 2;    Laws 1997, LB 275, § 2;    Laws 2000, LB 932, § 39;    Laws 2001, LB 362, § 82;    Laws 2001, LB 420, § 35;    Laws 2003, LB 131, § 37;    Laws 2003, LB 175, § 14;    Laws 2004, LB 999, § 50;    Laws 2009, LB259, § 27;    Laws 2011, LB78, § 1;    Laws 2013, LB155, § 1;    Laws 2019, LB622, § 2;    Laws 2020, LB808, § 93;    Laws 2022, LB707, § 59.    


Cross References

77-2388. Authorized depositories; security; requirements.

Any bank, capital stock financial institution, or qualifying mutual financial institution subject to a requirement by law to secure the deposit of public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation may give security by furnishing securities or providing a deposit guaranty bond, or any combination thereof, pursuant to the Public Funds Deposit Security Act in satisfaction of the requirement.

Source:Laws 1996, LB 1274, § 3;    Laws 2001, LB 362, § 83;    Laws 2009, LB259, § 28;    Laws 2019, LB622, § 3.    


77-2389. Security; how furnished.

A bank, capital stock financial institution, or qualifying mutual financial institution furnishes securities pursuant to the Public Funds Deposit Security Act if it (1) deposits securities held by the bank, capital stock financial institution, or qualifying mutual financial institution, (2) pledges or grants a security interest in securities held by the bank, capital stock financial institution, or qualifying mutual financial institution as provided in the act, or (3) effects the assignment to the custodial official of a certificate of deposit fully insured or guaranteed by the Federal Deposit Insurance Corporation that is issued to the bank, capital stock financial institution, or qualifying mutual financial institution.

Source:Laws 1996, LB 1274, § 4;    Laws 2001, LB 362, § 84;    Laws 2003, LB 175, § 15;    Laws 2009, LB259, § 29.    


77-2390. Deposit of trust receipt authorized.

Any bank, capital stock financial institution, or qualifying mutual financial institution pledging securities to secure deposits of public money or public funds pursuant to section 77-2389 may deposit, with the approval of the governing authority, the securities in a federal reserve bank or a bank, federal home loan bank, capital stock financial institution, qualifying mutual financial institution, or trust company approved by the governing authority, and take for the same a trust receipt in the form of and executed in the manner approved by the governing authority. When the transaction has been approved, the bank, capital stock financial institution, or qualifying mutual financial institution may deposit the trust receipt in lieu of the securities evidenced by the trust receipt.

Source:Laws 1996, LB 1274, § 5;    Laws 2000, LB 932, § 40;    Laws 2001, LB 362, § 85.    


77-2391. Security; delivery requirements; perfection.

(1) Securities pledged or securities in which a security interest has been granted pursuant to section 77-2389 shall be delivered to and held by a federal reserve bank or by a branch of a federal reserve bank, a federal home loan bank, or another responsible bank, capital stock financial institution, or qualifying mutual financial institution, including a bank, capital stock financial institution, or qualifying mutual financial institution chartered by a foreign state agency as defined in subdivision (14) of section 8-101.03, or trust company, other than the pledgor or the bank, capital stock financial institution, or qualifying mutual financial institution granting the security interest, as designated by the governing authority, with appropriate joint custody and the pledge agreement or security interest as described in subsection (2) of this section, in a form approved by the governing authority.

(2) The delivery by the bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository to the custodial official of a written receipt or acknowledgment from a federal reserve bank or branch of a federal reserve bank, a federal home loan bank, or another bank, capital stock financial institution, or qualifying mutual financial institution, including a bank, capital stock financial institution, or qualifying mutual financial institution chartered by a foreign state agency as defined in subdivision (14) of section 8-101.03, or trust company, other than the bank, capital stock financial institution, or qualifying mutual financial institution granting the security interest, that includes the title of such custodial official, describes the securities identified on the books or records of the depository, and provides that the securities or the proceeds of the securities will be delivered only upon the surrender of the written receipt or the acknowledgment duly executed by the custodial official designated on the written receipt or the acknowledgment and by the authorized representative of the depository shall, together with the custodial official's actual and continued possession of the written receipt or acknowledgment, constitute a valid and perfected security interest in favor of the custodial official in and to the identified securities.

(3) Articles 8 and 9, Uniform Commercial Code, shall not apply to any security interest arising under this section.

Source:Laws 1996, LB 1274, § 6;    Laws 1997, LB 275, § 3;    Laws 1999, LB 550, § 44;    Laws 2000, LB 932, § 41;    Laws 2001, LB 362, § 86;    Laws 2021, LB66, § 1.    


77-2392. Substitution or exchange of securities authorized.

A bank, capital stock financial institution, or qualifying mutual financial institution which has furnished securities pursuant to the Public Funds Deposit Security Act shall have the right at any time and without prior approval to substitute or exchange other securities of equal value in lieu of securities furnished except that such securities substituted or exchanged shall be those provided for under the act and such substitution or exchange shall not reduce the market value of the securities to an amount that is less than one hundred two percent of the total amount of public money or public funds less the portion of such public money or public funds insured or guaranteed by the Federal Deposit Insurance Corporation. Following any substitution or exchange of securities pursuant to this section by a bank, capital stock financial institution, or qualifying mutual financial institution utilizing the dedicated method as provided in subdivision (2)(a) of section 77-2398, the custodial official shall report such substitution or exchange to the governing authority.

Source:Laws 1996, LB 1274, § 7;    Laws 2001, LB 362, § 87;    Laws 2019, LB622, § 4.    


77-2393. Withdrawal of securities; when; effect.

A bank, capital stock financial institution, or qualifying mutual financial institution which has furnished securities pursuant to the Public Funds Deposit Security Act may withdraw all or any part of such securities upon repayment to the custodial official, director, or administrator, as applicable, of the amount of the securities thus withdrawn, and thereupon the custodial official, director, or administrator, as applicable, shall be empowered to assign such securities to the owner thereof. All interest coupons attached to securities furnished under the act shall be detached by the holder or qualified trustee thirty days before maturity and returned to such bank, capital stock financial institution, or qualifying mutual financial institution.

Source:Laws 1996, LB 1274, § 8;    Laws 2001, LB 362, § 88;    Laws 2021, LB66, § 2.    


77-2394. Deposit guaranty bond; statement required.

A bank, capital stock financial institution, or qualifying mutual financial institution provides a deposit guaranty bond pursuant to the Public Funds Deposit Security Act if it issues a deposit guaranty bond which runs to the director or custodial official, as applicable, and which is conditioned that the bank, capital stock financial institution, or qualifying mutual financial institution shall, upon written request by the director or custodial official, as applicable, at the end of each and every month, render to the director or custodial official, as applicable, a statement showing the daily balances and the amounts of public money or public funds of the governing authority held by it during the month and how credited. The public money or public funds shall be paid promptly on the order of the custodial official depositing the public money or public funds.

Source:Laws 1996, LB 1274, § 9;    Laws 2001, LB 362, § 89;    Laws 2019, LB622, § 5;    Laws 2021, LB66, § 3.    


77-2395. Custodial official; duties.

(1) If a bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository provides a deposit guaranty bond or furnishes securities or any combination thereof, pursuant to section 77-2389, the custodial official shall not have on deposit in such depository any public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation, unless and until the depository has provided a deposit guaranty bond or furnished securities, or any combination thereof, to the custodial official, and the total value of such deposit guaranty bond and the market value of such securities are in an amount not less than one hundred two percent of the amount on deposit which is in excess of the amount so insured or guaranteed.

(2) If a bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository provides a deposit guaranty bond or furnishes securities or any combination thereof, pursuant to subsection (1) of section 77-2398, the governmental unit shall not have on deposit in such depository any public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation, unless and until the depository has provided a deposit guaranty bond or furnished securities, or any combination thereof, pursuant to the Public Funds Deposit Security Act, and the total value of such deposit guaranty bond and the aggregate market value of the pool of such securities so provided are in an amount not less than one hundred two percent of the amount on deposit which is in excess of the amount so insured or guaranteed.

Source:Laws 1996, LB 1274, § 10;    Laws 2000, LB 932, § 42;    Laws 2001, LB 362, § 90;    Laws 2009, LB259, § 30;    Laws 2019, LB622, § 6;    Laws 2021, LB66, § 4.    


77-2396. Custodial official; liability.

No custodial official shall be liable on his or her official bond as such custodial official for public money or public funds on deposit in a bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository if the depository has furnished securities or provided a deposit guaranty bond, or any combination thereof, pursuant to the Public Funds Deposit Security Act.

Source:Laws 1996, LB 1274, § 11;    Laws 2001, LB 362, § 91;    Laws 2019, LB622, § 7.    


77-2397. Depositories of public money or public funds; powers.

All depositories of public money or public funds belonging to the State of Nebraska or the political subdivisions in this state shall have full authority to deposit, pledge, or grant a security interest in their assets or to provide a deposit guaranty bond, or any combination thereof, for the security and payment for all such deposits and accretions. The State of Nebraska and any political subdivision in this state and the director, administrator, or custodial official, as applicable, are given the right and authority to accept such deposit, pledge, or grant of a security interest in assets or the provision of a deposit guaranty bond, or any combination thereof.

Source:Laws 1996, LB 1274, § 12;    Laws 2019, LB622, § 8;    Laws 2021, LB66, § 5.    


77-2398. Deposits in excess of insured or guaranteed amount; requirements.

(1) As an alternative to the requirements to secure the deposit of public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation pursuant to sections 77-2389 and 77-2394, a bank, capital stock financial institution, or qualifying mutual financial institution designated as a public depositary may secure the deposits of one or more governmental units by providing a deposit guaranty bond or by depositing, pledging, or granting a security interest in a single pool of securities or by a combination thereof to secure the repayment of all public money or public funds deposited in the bank, capital stock financial institution, or qualifying mutual financial institution by such governmental units and not otherwise secured pursuant to law, if at all times the total value of the deposit guaranty bond and the aggregate market value of the pool of securities so deposited, pledged, or in which a security interest is granted is at least equal to one hundred two percent of the amount on deposit which is in excess of the amount so insured or guaranteed. Each such bank, capital stock financial institution, or qualifying mutual financial institution shall carry on its accounting records at all times a general ledger or other appropriate account of the total amount of all public money or public funds to be secured by a deposit guaranty bond or by the pool of securities, or any combination thereof, as determined at the opening of business each day, and the total value of the deposit guaranty bond or the aggregate market value of the pool of securities deposited, pledged, or in which a security interest is granted to secure such public money or public funds. For purposes of this section, a pool of securities shall include shares of investment companies registered under the federal Investment Company Act of 1940 when the investment companies' assets are limited to obligations that are eligible for investment by the bank, capital stock financial institution, or qualifying mutual financial institution and limited by their prospectuses to owning securities enumerated in section 77-2387.

(2) A bank, capital stock financial institution, or qualifying mutual financial institution may secure the deposit of public money or public funds using the dedicated method, the single bank pooled method, or both methods as set forth in subsection (1) of this section.

(a) Under the dedicated method, a bank, capital stock financial institution, or qualifying mutual financial institution may secure the deposit of public money or public funds by each governmental unit separately by furnishing securities or providing a deposit guaranty bond, or any combination thereof, pursuant to the Public Funds Deposit Security Act.

(b)(i) Under the single bank pooled method, a bank, capital stock financial institution, or qualifying mutual financial institution may secure the deposit of public money or public funds of one or more governmental units by providing a deposit guaranty bond or through a pool of eligible securities established by such bank, capital stock financial institution, or qualifying mutual financial institution with a qualified trustee, or any combination thereof, to be held subject to the order of the director or the administrator for the benefit of the governmental units having public money or public funds with such bank, capital stock financial institution, or qualifying mutual financial institution as set forth in subsection (1) of this section. A bank, capital stock financial institution, or qualifying mutual financial institution may not retain any deposit of public money or public funds which is required to be secured unless, within ten days thereafter or such shorter period as has been agreed upon by the bank, capital stock financial institution, or qualifying mutual financial institution and the director or administrator, it has secured the deposits for the benefit of the governmental units having public money or public funds with such bank, capital stock financial institution, or qualifying mutual financial institution pursuant to this section.

(ii) The director shall designate a bank, savings association, trust company, or other qualified firm, corporation, or association which is authorized to transact business in this state to serve as the administrator with respect to a single bank pooled method. Fees and expenses of such administrator shall be paid by the banks, capital stock financial institutions, or qualifying mutual financial institutions utilizing the single bank pooled method.

(iii) If a bank, capital stock financial institution, or qualifying mutual financial institution elects to secure the deposit of public money or public funds through the use of the single bank pooled method, such bank, capital stock financial institution, or qualifying mutual financial institution shall notify the administrator in writing that it has elected to utilize the single bank pooled method and the proposed effective date thereof.

(iv) The single bank pooled method shall not be utilized by any bank, capital stock financial institution, or qualifying mutual financial institution unless an administrator has been designated by the director pursuant to subdivision (2)(b)(ii) of this section and is acting as the administrator.

(3) Only a deposit guaranty bond and the securities listed in subdivision (14) of section 77-2387 may be provided and accepted as security for the deposit of public money or public funds and shall be eligible as collateral. The qualified trustee shall not accept any securities which are not listed in subdivision (14) of section 77-2387.

Source:Laws 2000, LB 932, § 43;    Laws 2001, LB 362, § 92;    Laws 2009, LB259, § 31;    Laws 2011, LB78, § 2;    Laws 2013, LB155, § 2;    Laws 2019, LB622, § 9;    Laws 2020, LB909, § 52.    


77-2399. Governmental unit; deposits in excess of insured amount; security interest; rights.

(1) Each governmental unit depositing public money or public funds in a bank, capital stock financial institution, or qualifying mutual financial institution shall have an undivided beneficial interest under the deposit guaranty bond provided and an undivided security interest in the pool of securities deposited, pledged, or in which a security interest is granted by such bank, capital stock financial institution, or qualifying mutual financial institution pursuant to subsection (1) of section 77-2398 in the proportion that the total amount of the governmental unit's public money or public funds held deposited in such bank, capital stock financial institution, or qualifying mutual financial institution secured by the deposit guaranty bond or by the pool of securities, or any combination thereof, bears to the total amount of public money or public funds so secured.

(2) The delivery by the bank, capital stock financial institution, or qualifying mutual financial institution designated as a depository to the director or administrator of a written receipt or acknowledgment from a federal reserve bank or branch of a federal reserve bank, a federal home loan bank, or another responsible bank which is authorized to exercise trust powers, capital stock financial institution which is authorized to exercise trust powers, or qualifying mutual financial institution which is authorized to exercise trust powers, including a bank which is authorized to exercise trust powers, capital stock financial institution which is authorized to exercise trust powers, or qualifying mutual financial institution which is authorized to exercise trust powers chartered by a foreign state agency as defined in subdivision (14) of section 8-101.03, or trust company other than the bank, capital stock financial institution, or qualifying mutual financial institution granting the security interest, that includes the name of the director or administrator, describes the securities identified on the books or records of the depository, and provides that the securities or the proceeds of the securities will be delivered only upon the surrender of the written receipt or acknowledgment duly executed by the director or administrator designated on the written receipt or acknowledgment and by the authorized representative of the depository shall, together with the director's or administrator's actual and continued possession of the written receipt or acknowledgment, constitute a valid and perfected security interest in favor of the director or administrator in and to the identified securities.

(3) Articles 8 and 9, Uniform Commercial Code, shall not apply to any security interest arising under this section.

Source:Laws 2000, LB 932, § 44;    Laws 2001, LB 362, § 93;    Laws 2019, LB622, § 10;    Laws 2021, LB66, § 6.    


77-23,100. Deposits in excess of insured or guaranteed amount; qualified trustee; duties.

(1) Any bank, capital stock financial institution, or qualifying mutual financial institution in which public money or public funds have been deposited which satisfies its requirement to secure the deposit of public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation, in whole or in part, by the deposit, pledge, or granting of a security interest in a single pool of securities shall designate a qualified trustee and place with the trustee for holding the securities so deposited, pledged, or in which a security interest has been granted pursuant to subsection (1) of section 77-2398, subject to the order of the director or the administrator. The bank, capital stock financial institution, or qualifying mutual financial institution shall give written notice of the designation of the qualified trustee to any governmental unit depositing public money or public funds for which such securities are deposited, pledged, or in which a security interest has been granted, and if an affiliate of the bank, capital stock financial institution, or qualifying mutual financial institution is to serve as the qualified trustee, the notice shall disclose the affiliate relationship and shall be given prior to designation of the qualified trustee. The director or administrator shall accept the written receipt of the qualified trustee describing the pool of securities so deposited, pledged, or in which a security interest has been granted by the bank, capital stock financial institution, or qualifying mutual financial institution, a copy of which shall also be delivered to the bank, capital stock financial institution, or qualifying mutual financial institution.

(2) Any bank, capital stock financial institution, or qualifying mutual financial institution which satisfies its requirement to secure the deposit of public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation under the Public Funds Deposit Security Act, in whole or in part, by providing a deposit guaranty bond pursuant to the provisions of subsection (1) of section 77-2398, shall designate the director and cause to be issued a deposit guaranty bond which runs to the director acting for the benefit of the governmental units having public money or public funds on deposit with such bank, capital stock financial institution, or qualifying mutual financial institution and which is conditioned that the bank, capital stock financial institution, or qualifying mutual financial institution shall render to the administrator the statement required under subsection (3) of this section.

(3) Each bank, capital stock financial institution, or qualifying mutual financial institution which satisfies its requirement to secure the deposit of public money or public funds in excess of the amount insured or guaranteed by the Federal Deposit Insurance Corporation by providing a deposit guaranty bond or by depositing, pledging, or granting a security interest in a single pool of securities, or any combination thereof, shall, on or before the tenth day of each month, render to the administrator a statement showing as of the last business day of the previous month (a) the amount of public money or public funds deposited in such bank, capital stock financial institution, or qualifying mutual financial institution that is not insured or guaranteed by the Federal Deposit Insurance Corporation (i) by each governmental unit separately and (ii) by all governmental units in the aggregate and (b) the total value of the deposit guaranty bond and the aggregate market value of the pool of securities deposited, pledged, or in which a security interest has been granted pursuant to subsection (1) of section 77-2398. The director shall be authorized, acting for the benefit of the governmental units having public money or public funds on deposit with such bank, capital stock financial institution, or qualifying mutual financial institution, to take any and all actions necessary to take title to or to effect a first perfected security interest in the securities deposited, pledged, or in which a security interest is granted.

(4) Within twenty days after the deadline for receiving the statement required under subsection (3) of this section from a bank, capital stock financial institution, or qualifying mutual financial institution, the administrator shall provide a report to each governmental unit listed in such statement reflecting (a) the amount of public money or public funds deposited in such bank, capital stock financial institution, or qualifying mutual financial institution by each governmental unit as of the last business day of the previous month that is not insured or guaranteed by the Federal Deposit Insurance Corporation and that is secured pursuant to subsection (1) of section 77-2398 and (b) the total value of the deposit guaranty bond and the aggregate market value of the pool of securities deposited, pledged, or in which a security interest is granted pursuant to subsection (1) of section 77-2398 as of the last business day of the previous month. The report shall clearly notify the governmental unit if the value of the deposit guaranty bond provided or the securities deposited, pledged, or in which a security interest has been granted, or any combination thereof, do not meet the statutory requirement. The report required by this subsection shall be deemed to have been provided to a governmental unit upon posting of the report by the administrator on its website for access by governmental units participating under the single bank pooled method if the governmental unit has agreed in advance to receive such report by accessing the administrator's website.

Source:Laws 2000, LB 932, § 45;    Laws 2001, LB 362, § 94;    Laws 2009, LB259, § 32;    Laws 2019, LB622, § 11;    Laws 2020, LB909, § 53;    Laws 2021, LB66, § 7.    


77-23,101. Qualified trustee; requirements.

Any Federal Reserve Bank, branch of a Federal Reserve Bank, a federal home loan bank, or another responsible bank which is authorized to exercise trust powers, capital stock financial institution which is authorized to exercise trust powers, or qualifying mutual financial institution which is authorized to exercise trust powers, including a bank which is authorized to exercise trust powers, capital stock financial institution which is authorized to exercise trust powers, or qualifying mutual financial institution which is authorized to exercise trust powers chartered by a foreign state agency as defined in subdivision (14) of section 8-101.03, or trust company, other than the pledgor or the bank, capital stock financial institution, or qualifying mutual financial institution providing the deposit guaranty bond or granting the security interest, is qualified to act as a qualified trustee for the receipt of a deposit guaranty bond or the holding of securities under section 77-23,100. The bank, capital stock financial institution, or qualifying mutual financial institution in which public money or public funds are deposited may at any time substitute, exchange, or release securities deposited with a qualified trustee if such substitution, exchange, or release does not reduce the aggregate market value of the pool of securities to an amount that is less than one hundred two percent of the total amount of public money or public funds less the portion of such public money or public funds insured or guaranteed by the Federal Deposit Insurance Corporation. The bank, capital stock financial institution, or qualifying mutual financial institution in which public money or public funds are deposited may at any time reduce the amount of the deposit guaranty bond if the reduction does not reduce the total combined value of the deposit guaranty bond and the aggregate market value of the pool of securities to an amount less than one hundred two percent of the total amount of public money or public funds less the portion of such public money or public funds insured or guaranteed by the Federal Deposit Insurance Corporation.

Source:Laws 2000, LB 932, § 46;    Laws 2001, LB 362, § 95;    Laws 2009, LB259, § 33;    Laws 2019, LB622, § 12;    Laws 2021, LB66, § 8.    


77-23,102. Default; procedure.

(1) When the director determines that a bank, capital stock financial institution, or qualifying mutual financial institution which secures the deposit of public money or public funds using the single bank pooled method has experienced an event of default the director shall proceed in the following manner: (a) The director shall ascertain the aggregate amounts of public money or public funds secured pursuant to subsection (1) of section 77-2398 and deposited in the bank, capital stock financial institution, or qualifying mutual financial institution which has defaulted, as disclosed by the records of such bank, capital stock financial institution, or qualifying mutual financial institution. The director shall determine for each governmental unit for whom public money or public funds are deposited in the defaulting bank, capital stock financial institution, or qualifying mutual financial institution the accounts and amount of federal deposit insurance or guarantee that is available for each account. The director shall then determine for each such governmental unit the amount of public money or public funds not insured or guaranteed by the Federal Deposit Insurance Corporation and the amount of the deposit guaranty bond or pool of securities pledged, deposited, or in which a security interest has been granted, or any combination thereof, to secure such public money or public funds. Upon completion of this analysis, the director shall provide each such governmental unit with a statement that reports the amount of public money or public funds deposited by the governmental unit in the defaulting bank, capital stock financial institution, or qualifying mutual financial institution, the amount of public money or public funds that may be insured or guaranteed by the Federal Deposit Insurance Corporation, and the amount of public money or public funds secured by a deposit guaranty bond or secured by a pool of securities, or any combination thereof, pursuant to subsection (1) of section 77-2398. Each such governmental unit shall verify this information from his or her records within ten business days after receiving the report and information from the director; and (b) upon receipt of a verified report from such governmental unit and if the defaulting bank, capital stock financial institution, or qualifying mutual financial institution is to be liquidated or if for any other reason the director determines that public money or public funds are not likely to be promptly paid upon demand, the director shall proceed to enforce the deposit guaranty bond and liquidate the pool of securities held to secure the deposit of public money or public funds and shall repay each governmental unit for the public money or public funds not insured or guaranteed by the Federal Deposit Insurance Corporation deposited in the bank, capital stock financial institution, or qualifying mutual financial institution by the governmental unit. In the event that the amount of the deposit guaranty bond or the proceeds of the securities held by the director after liquidation is insufficient to cover all public money or public funds not insured or guaranteed by the Federal Deposit Insurance Corporation for all governmental units for whom the director serves, the director shall pay out to each governmental unit available amounts pro rata in accordance with the respective public money or public funds not insured or guaranteed by the Federal Deposit Insurance Corporation for each such governmental unit.

(2) In the event that a federal deposit insurance agency is appointed and acts as a liquidator or receiver of any bank, capital stock financial institution, or qualifying mutual financial institution under state or federal law, those duties under this section that are specified to be performed by the director in the event of default may be delegated to and performed by such federal deposit insurance agency.

Source:Laws 2000, LB 932, § 47;    Laws 2001, LB 362, § 96;    Laws 2009, LB259, § 34;    Laws 2019, LB622, § 13;    Laws 2021, LB66, § 9.    


77-23,103. Charges or compensation of qualified trustee.

Any charges or compensation of a qualified trustee for acting as such under the Public Funds Deposit Security Act shall be paid by the bank, capital stock financial institution, or qualifying mutual financial institution and in no event shall be chargeable to any governmental unit, to the custodial official, or to any officer of the governmental unit. Such charges or compensation shall not be a lien or charge upon the deposit guaranty bond or the securities held by the qualified trustee prior, superior, or equal to the rights to and interests under such deposit guaranty bond or in such securities of the governmental unit or of the custodial official. The custodial official shall be relieved from any liability to the governmental unit or to the bank, capital stock financial institution, or qualifying mutual financial institution for the loss or destruction of any deposit guaranty bond or securities pledged, deposited, or in which a security interest has been granted.

Source:Laws 2000, LB 932, § 48;    Laws 2001, LB 362, § 97.    


77-23,104. Assignment of securities; when.

In lieu of placing its unqualified endorsement on each security, a bank, capital stock financial institution, or qualifying mutual financial institution depositing, pledging, or granting a security interest in securities pursuant to subsection (1) of section 77-2398 that are not negotiable without its endorsement or assignment may furnish to the qualified trustee holding the securities an appropriate resolution and irrevocable power of attorney authorizing the trustee to assign the securities. The resolution and power of attorney shall conform to such terms and conditions as the trustee prescribes.

Source:Laws 2000, LB 932, § 49;    Laws 2001, LB 362, § 98.    


77-23,105. Reports required.

Upon request of a governmental unit, a bank, capital stock financial institution, or qualifying mutual financial institution shall report as of the date of such request the amount of public money or public funds deposited in such bank, capital stock financial institution, or qualifying mutual financial institution that is not insured or guaranteed by the Federal Deposit Insurance Corporation (1) by the governmental unit making the request and (2) by all other governmental units and secured pursuant to subsection (1) of section 77-2398, and the total value of the deposit guaranty bond or the aggregate market value of the pool of securities deposited, pledged, or in which a security interest has been granted to secure public money or public funds held by the bank, capital stock financial institution, or qualifying mutual financial institution, including those deposited by the governmental unit. Upon request of a governmental unit, a qualified trustee shall report as of the date of such request the total value of the deposit guaranty bond or the aggregate market value of the pool of securities deposited, pledged, or in which a security interest has been granted by the bank, capital stock financial institution, or qualifying mutual financial institution and shall provide an itemized list of the securities in the pool. Such reports shall be made on or before the date the governmental unit specifies.

Source:Laws 2000, LB 932, § 50;    Laws 2001, LB 362, § 99;    Laws 2009, LB259, § 35;    Laws 2021, LB66, § 10.    


77-23,106. Public money or public funds; prompt payment.

The public money or public funds in the bank, capital stock financial institution, or qualifying mutual financial institution shall be paid promptly on the order of the custodial official or governmental unit depositing the public money or public funds in such bank, capital stock financial institution, or qualifying mutual financial institution.

Source:Laws 2000, LB 932, § 51;    Laws 2001, LB 362, § 100;    Laws 2021, LB66, § 11.    


77-23,107. Liability.

The director and the administrator under the Public Funds Deposit Security Act shall, except for actions or inactions that constitute gross negligence or intentional wrongful acts, be immune from liability for any act required of or authorized for the director and the administrator under the act.

Source:Laws 2019, LB622, § 14.    


77-23,108. Rules and regulations.

The director may adopt and promulgate rules and regulations, establish policies and procedures, prescribe forms, or issue orders as may be necessary to accomplish the purposes of the Public Funds Deposit Security Act.

Source:Laws 2019, LB622, § 15.    


77-2401. Transferred to section 33-140.

77-2402. Transferred to section 33-140.01.

77-2403. Transferred to section 33-140.02.

77-2404. Transferred to section 33-140.03.

77-2405. Transferred to section 84-616.

77-2406. Transferred to section 81-1170.01.

77-2407. Repealed. Laws 1988, LB 864, § 72.

77-2408. Repealed. Laws 1985, LB 368, § 2.

77-2409. Transferred to section 81-1170.02.

77-2410. Transferred to section 81-1170.03.

77-2411. Vacated town sites; payment of original amount of taxes; penalties remitted.

Whenever town sites have been located, surveyed, and laid out in this state, under any law of the State of Nebraska, or under any law of the United States, and such town site or any part thereof has been vacated or abandoned as such, all taxes levied on the lots or subdivision therein vacated may be liquidated by payment of the original amount of such taxes without interest or penalties.

Source:Laws 1889, c. 77, § 1, p. 538; R.S.1913, § 6685; C.S.1922, § 6222; C.S.1929, § 77-2611.


77-2412. Transferred to section 81-1170.04.

77-2413. Repealed. Laws 1965, c. 538, § 40.

77-2414. Repealed. Laws 1965, c. 538, § 40.

77-2415. Repealed. Laws 1953, c. 285, § 3.

77-2416. Transferred to section 81-1170.05.

77-2417. Transferred to section 49-805.01.

77-2418. Transferred to section 72-1601.

77-2419. Transferred to section 13-402.

77-2420. Electronic funds transfer system; authorized.

In order to provide greater efficiency in the administration of the taxes collected by the state and convenience for the taxpayers of this state, the Director of Administrative Services and the State Treasurer may establish and operate an electronic funds transfer system for the collection of taxes and the payment of refunds. The Department of Administrative Services and the Department of Revenue shall jointly establish the procedures necessary to implement the system.

The use of electronic funds transfer or any other payment means by the state shall not create any rights that would not have been created had an individual state warrant been used as the payment medium. The use of electronic funds transfer or any other individual payment to the state shall not create any rights that would not have been created had an individual check been used as the payment medium to the state.

Source:Laws 1985, LB 273, § 12.    


77-2501. Act, how cited.

Sections 77-2501 to 77-2508 shall be known and may be cited as the Affordable Housing Tax Credit Act.

Source:Laws 2016, LB884, § 11;    Laws 2022, LB800, § 338.    


77-2502. Terms, defined.

For purposes of the Affordable Housing Tax Credit Act:

(1) Allocation year means the year for which the authority awards Nebraska affordable housing tax credits pursuant to the act;

(2) Authority means the Nebraska Investment Finance Authority;

(3) Eligibility statement means a statement authorized and issued by the authority certifying that a given project is a qualified project that qualifies for Nebraska affordable housing tax credits;

(4) Federal low-income housing tax credit means the federal tax credit provided in section 42 of the Internal Revenue Code of 1986, as amended;

(5) Nebraska affordable housing tax credit means the nonrefundable tax credit authorized in section 77-2503;

(6) Qualified project means a qualified low-income building or buildings, as that term is defined in section 42 of the Internal Revenue Code of 1986, as amended;

(7) Qualified taxpayer means a taxpayer owning an interest, direct or indirect, in a qualified project; and

(8) Taxpayer means a person, firm, corporation, or other business entity subject to the income tax imposed by section 77-2715 or 77-2734.02, an insurance company subject to premium and related retaliatory tax liability imposed by section 44-150, 77-908, or 81-523, or a financial institution subject to the franchise tax imposed by sections 77-3801 to 77-3807.

Source:Laws 2016, LB884, § 12;    Laws 2022, LB800, § 339.    


77-2503. Application; form; qualified project; allocation of credit; transfer, sale, or assignment; use of credit.

(1) An owner of an affordable housing project seeking a Nebraska affordable housing tax credit shall file an application with the authority on a form prescribed by the authority. A qualified taxpayer shall be allowed a nonrefundable tax credit if the authority determines that the project for which tax credits are sought is a qualified project.

(2) If the requirements of subsection (1) of this section are met, the authority shall issue an eligibility statement to the owner of such qualified project stating the amount of Nebraska affordable housing tax credits allocated to the qualified project. The amount of such tax credits shall be the amount of federal low-income housing tax credits available to such project, except as otherwise provided in subsection (4) of this section. Tax credits for each building in a qualified project shall be issued for the first six years of the credit period as defined in 26 U.S.C. 42(f)(1), except that any reduction in the credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. 42(f)(2) shall be allowable in the seventh year of the credit period. The authority shall only allocate tax credits to qualified projects that are placed in service after January 1, 2018.

(3) If the owner of the qualified project is (a) a partnership, (b) a limited liability company, or (c) a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, the Nebraska affordable housing tax credit shall be allocated among some or all of the partners, members, or shareholders of the owner of the qualified project in any manner agreed to by such persons, but only if such persons have been admitted as partners or members, or have acquired their shares, on or prior to February 15 of the year in which the tax return, or amended return, claiming the tax credit is filed. A qualified taxpayer may transfer, sell, or assign all or part of his or her ownership interest, including his or her interest in the tax credits authorized in this section. For any tax year in which such an interest is transferred, sold, or assigned pursuant to this subsection, the transferor shall notify the Department of Revenue of the transfer, sale, or assignment and provide the tax identification number of the new owner at least thirty days prior to the new owner claiming the tax credits. The notification shall be in the manner prescribed by the department.

(4) The maximum amount of Nebraska affordable housing tax credits awarded to all qualified projects in any given allocation year shall be no more than one hundred percent of the total amount of federal low-income housing tax credits awarded by the authority in the same allocation year. Notwithstanding any other provision of the Affordable Housing Tax Credit Act, the authority is prohibited from awarding to a qualified project any combined amount of federal low-income housing tax credits and Nebraska affordable housing tax credits that is more than necessary to make the qualified project financially feasible.

(5) Any Nebraska affordable housing tax credits granted under this section may be used to offset any income taxes due under section 77-2715 or 77-2734.02, any premium and related retaliatory taxes due under section 44-150, 77-908, or 81-523, or any franchise taxes due under sections 77-3801 to 77-3807.

(6) The tax credit shall not be used to reduce the tax liability of the qualified taxpayer to less than zero. Any tax credit claimed but not used in a taxable year may be carried forward.

Source:Laws 2016, LB884, § 13;    Laws 2017, LB217, § 10;    Laws 2022, LB800, § 340.    


77-2504. Owner of project; submit eligibility statement; additional filings.

(1) The owner of a qualified project shall submit the eligibility statement at the time of filing its tax return. If the authority has not yet issued the eligibility statement at the time the owner files its tax return, the owner may later amend the return to include the eligibility statement.

(2) Nebraska affordable housing tax credits may only be claimed for taxable years beginning on or after January 1, 2019.

(3) The authority or the Department of Revenue may require the filing of additional documentation necessary to determine the accuracy of a Nebraska affordable housing tax credit claimed.

Source:Laws 2016, LB884, § 14.    


77-2505. Insurance company; no additional retaliatory tax.

An insurance company claiming a Nebraska affordable housing tax credit against any premium and related retaliatory taxes due under section 44-150, 77-908, or 81-523 shall not be required to pay any additional retaliatory tax as a result of claiming the tax credit. The tax credit may fully offset any retaliatory tax imposed under Nebraska law. Any tax credit claimed shall be considered a payment of tax for purposes of subsection (1) of section 77-2734.03.

Source:Laws 2016, LB884, § 15;    Laws 2022, LB800, § 341.    


77-2506. Recapture or disallowance of federal credit; Nebraska credit recaptured.

If a portion of any federal low-income housing tax credits taken on a qualified project is required to be recaptured or is otherwise disallowed under 26 U.S.C. 42 during the 6-year period described in subsection (2) of section 77-2503, a portion of the Nebraska affordable housing tax credits with respect to such project shall also be recaptured from the qualified taxpayer who claimed such credits. The percentage of Nebraska affordable housing tax credits subject to recapture under this section shall be equal to the percentage of federal low-income housing tax credits subject to recapture or otherwise disallowed during such period. Any Nebraska affordable housing tax credits recaptured or disallowed under this section shall increase the tax liability of the qualified taxpayer who claimed the credits in the year the Department of Revenue declares the tax credits to be disallowed or recaptured.

Source:Laws 2016, LB884, § 16;    Laws 2017, LB217, § 11.    


77-2507. Rules and regulations.

The authority and the Department of Revenue may adopt and promulgate rules and regulations to carry out the Affordable Housing Tax Credit Act.

Source:Laws 2016, LB884, § 17.    


77-2508. Changes made by Laws 2022, LB800; applicability.

The changes made in sections 77-2502, 77-2503, and 77-2505 by Laws 2022, LB800, shall apply to taxable years beginning or deemed to begin on or after January 1, 2023.

Source:Laws 2022, LB800, § 342.    


77-2601. Terms, defined.

For purposes of sections 77-2601 to 77-2615:

(1) Person means and includes every individual, firm, association, joint-stock company, partnership, limited liability company, syndicate, corporation, trustee, or other legal entity, including any Indian tribe or instrumentality thereof;

(2) Wholesale dealer means a person who sells cigarettes to licensed retail dealers other than branch stores operated by or connected with such wholesale dealer for purposes of resale and is licensed under section 28-1423;

(3) Retail dealer includes every person other than a wholesale dealer engaged in the business of selling cigarettes in this state irrespective of quantity, amount, or number of sales thereof;

(4) Tax Commissioner means the Tax Commissioner of the State of Nebraska;

(5) Cigarette means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; (b) tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or (c) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in subdivision (5)(a) of this section;

(6) Consumer means any person, firm, association, partnership, limited liability company, joint-stock company, syndicate, or corporation not having a license to sell cigarettes;

(7) Sales entity affiliate means an entity that (a) sells cigarettes that it acquires directly from a manufacturer or importer and (b) is affiliated with that manufacturer or importer. Entities are affiliated with each other if one directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the other. Unless provided otherwise, manufacturer or importer includes any sales entity affiliate of that manufacturer or importer;

(8) Stamping agent has the same meaning as in section 69-2705; and

(9) Indian country means (a) all land in this state within the limits of any Indian reservation under the jurisdiction of the United States, notwithstanding the issuance of any patent, including rights-of-way running through the reservation, (b) all dependent Indian communities within the borders of this state, and (c) all Indian allotments in this state, the Indian titles to which have not been extinguished, including rights-of-way running through such allotments.

Source:Laws 1947, c. 267, § 1, p. 861; Laws 1978, LB 748, § 41;    Laws 1993, LB 121, § 499;    Laws 2002, LB 989, § 9;    Laws 2003, LB 572, § 9;    Laws 2011, LB590, § 19;    Laws 2019, LB397, § 21.    


77-2602. Cigarette tax; rate; disposition of proceeds; priority.

(1) Every stamping agent engaged in distributing or selling cigarettes at wholesale in this state shall pay to the Tax Commissioner of this state a special privilege tax. This shall be in addition to all other taxes. It shall be paid prior to or at the time of the sale, gift, or delivery to the retail dealer in the several amounts as follows: On each package of cigarettes containing not more than twenty cigarettes, sixty-four cents per package; and on packages containing more than twenty cigarettes, the same tax as provided on packages containing not more than twenty cigarettes for the first twenty cigarettes in each package and a tax of one-twentieth of the tax on the first twenty cigarettes on each cigarette in excess of twenty cigarettes in each package.

(2) Beginning October 1, 2004, the State Treasurer shall place the equivalent of forty-nine cents of such tax in the General Fund. For purposes of this section, the equivalent of a specified number of cents of the tax shall mean that portion of the proceeds of the tax equal to the specified number divided by the tax rate per package of cigarettes containing not more than twenty cigarettes.

(3) The State Treasurer shall distribute the remaining proceeds of such tax as follows:

(a) Beginning July 1, 1980, the State Treasurer shall place the equivalent of one cent of such tax in the Nebraska Outdoor Recreation Development Cash Fund. For fiscal year distributions occurring after FY1998-99, the distribution under this subdivision shall not be less than the amount distributed under this subdivision for FY1997-98. Any money needed to increase the amount distributed under this subdivision to the FY1997-98 amount shall reduce the distribution to the General Fund;

(b) Beginning July 1, 1993, the State Treasurer shall place the equivalent of three cents of such tax in the Health and Human Services Cash Fund to carry out sections 81-637 to 81-640. For fiscal year distributions occurring after FY1998-99, the distribution under this subdivision shall not be less than the amount distributed under this subdivision for FY1997-98. Any money needed to increase the amount distributed under this subdivision to the FY1997-98 amount shall reduce the distribution to the General Fund;

(c) Beginning October 1, 2002, and continuing until all the purposes of the Deferred Building Renewal Act have been fulfilled, the State Treasurer shall place the equivalent of seven cents of such tax in the Building Renewal Allocation Fund. The distribution under this subdivision shall not be less than the amount distributed under this subdivision for FY1997-98. Any money needed to increase the amount distributed under this subdivision to the FY1997-98 amount shall reduce the distribution to the General Fund;

(d) Beginning July 1, 2016, and every fiscal year thereafter, the State Treasurer shall place the equivalent of three million eight hundred twenty thousand dollars of such tax in the Nebraska Public Safety Communication System Cash Fund. If necessary, the State Treasurer shall reduce the distribution of tax proceeds to the General Fund pursuant to subsection (2) of this section by such amount required to fulfill the distribution pursuant to this subdivision; and

(e) Beginning July 1, 2016, and every fiscal year thereafter, the State Treasurer shall place the equivalent of one million two hundred fifty thousand dollars of such tax in the Nebraska Health Care Cash Fund. If necessary, the State Treasurer shall reduce the distribution of tax proceeds to the General Fund pursuant to subsection (2) of this section by such amount required to fulfill the distribution pursuant to this subdivision.

(4) If, after distributing the proceeds of such tax pursuant to subsections (2) and (3) of this section, any proceeds of such tax remain, the State Treasurer shall place such remainder in the Nebraska Capital Construction Fund.

(5) The Legislature hereby finds and determines that the projects funded from the Building Renewal Allocation Fund are of critical importance to the State of Nebraska. It is the intent of the Legislature that the allocations and appropriations made by the Legislature to such fund not be reduced until all contracts and securities relating to the construction and financing of the projects or portions of the projects funded from such fund are completed or paid, and that until such time any reductions in the cigarette tax rate made by the Legislature shall be simultaneously accompanied by equivalent reductions in the amount dedicated to the General Fund from cigarette tax revenue. Any provision made by the Legislature for distribution of the proceeds of the cigarette tax for projects or programs other than those to (a) the General Fund, (b) the Nebraska Outdoor Recreation Development Cash Fund, (c) the Health and Human Services Cash Fund, (d) the Building Renewal Allocation Fund, (e) the Nebraska Public Safety Communication System Cash Fund, and (f) the Nebraska Health Care Cash Fund shall not be made a higher priority than or an equal priority to any of the programs or projects specified in subdivisions (a) through (f) of this subsection.

Source:Laws 1947, c. 267, § 2, p. 861; Laws 1957, c. 341, § 1, p. 1179; Laws 1963, c. 457, § 1, p. 1483; Laws 1965, c. 501, § 2, p. 1595; Laws 1965, c. 500, § 1, p. 1590; Laws 1969, c. 645, § 10, p. 2562; Laws 1971, LB 87, § 1;    Laws 1972, LB 1433, § 1;    Laws 1973, LB 447, § 5;    Laws 1974, LB 945, § 9;    Laws 1975, Spec. Sess., LB 6, § 67; Laws 1976, LB 1004, § 24; Laws 1976, LB 1006, § 6; Laws 1978, LB 109, § 3;    Laws 1981, LB 506, § 5; Laws 1982, LB 753, § 1; Laws 1983, LB 192, § 1;    Laws 1983, LB 410, § 1;    Laws 1983, LB 469, § 4;    Laws 1984, LB 862, § 1;    Laws 1985, LB 728, § 1;    Laws 1985, LB 653A, § 1;    Laws 1985, Second Spec. Sess., LB 3, § 1;    Laws 1986, LB 258, § 16;    Laws 1986, LB 842, § 1;    Laws 1987, LB 730, § 27;    Laws 1987, LB 218, § 1;    Laws 1989, LB 683, § 1;    Laws 1990, LB 1220, § 1;    Laws 1991, LB 703, § 65; Laws 1992, Third Spec. Sess., LB 9, § 1;    Laws 1992, Third Spec. Sess., LB 11, § 1;    Laws 1993, LB 22, § 1;    Laws 1993, LB 595, § 2;    Laws 1994, LB 961, § 8;    Laws 1996, LB 1044, § 795;    Laws 1996, LB 1190, § 15; Laws 1998, LB 1107, § 2;    Laws 1999, LB 683, § 1;    Laws 2000, LB 1349, § 1;    Laws 2001, LB 657, § 5;    Laws 2002, LB 1085, § 1;    Laws 2003, LB 440, § 2;    Laws 2003, LB 759, § 3;    Laws 2005, LB 426, § 15;    Laws 2007, LB296, § 703;    Laws 2007, LB322, § 20;    Laws 2011, LB590, § 20;    Laws 2015, LB661, § 33;    Laws 2019, LB193, § 242;    Laws 2021, LB509, § 11.    


Cross References

Annotations

77-2602.01. Tax; liability of consumer or user; collection.

The impact of the tax levied by Chapter 77, article 26, is hereby declared to be on the vendee, user, consumer, or possessor of cigarettes in this state, and when such tax is paid by any other person, such payment shall be construed as an advance payment, and shall thereafter be added to the price of the cigarettes and recovered from the ultimate consumer or user. In making sales of cigarettes in this state, a wholesaler or jobber may separately state and show upon the invoice covering such sale the amount of the tax on cigarettes sold. The tax shall be evidenced by appropriate stamps attached to each package of cigarettes sold, and the tax shall be collected by the retailer from the user or consumer. The provisions of this section shall in no way affect the method of collection of such tax on cigarettes as now provided by existing law.

Source:Laws 1955, c. 305, § 1, p. 945; Laws 1957, c. 341, § 2, p. 1179.


77-2602.02. Repealed. Laws 1986, LB 738, § 1.

77-2602.03. Increase in tax; applicability; stamping agents; duties; credit to wholesaler.

The increase in the tax shall apply to all unused stamps, meter impressions, and packages of stamped cigarettes owned by stamping agents at 12:01 a.m. on the day the increase becomes operative. On the date any change in the tax takes effect, each stamping agent shall take an inventory of all unused stamps, meter impressions, and packages of stamped cigarettes owned by the cigarette wholesaler at 12:01 a.m. The additional tax shall be remitted with the return for the last month preceding the date any change in the tax takes effect. The Tax Commissioner shall credit to each stamping agent an amount equal to the additional tax on two weeks of such stamping agent's average purchases of stamps.

Source:Laws 1982, LB 753, § 3; Laws 1985, LB 653A, § 2;    Laws 1985, Second Spec. Sess., LB 3, § 2;    Laws 1987, LB 730, § 28;    Laws 2002, LB 989, § 10;    Laws 2011, LB590, § 21.    


77-2602.04. Bonds; limitation on pledge of revenue.

Notwithstanding any other provision of law, for bonds issued on or after July 1, 2008, funds received by the issuer pursuant to section 77-2602 shall not be pledged for repayment of bonds, except that such funds may be pledged for repayment of refunding bonds issued to refund bonds issued prior to May 20, 2009.

Source:Laws 2008, LB961, § 9;    Laws 2009, LB316, § 21.    


77-2602.05. Cigarette tax; exempt transaction; refund; application; documentation; interest; tax refund formula authorized.

(1) A person that paid taxes applicable under section 77-2602 on cigarettes sold in an exempt transaction shall be eligible for a refund of the taxes paid on those cigarettes.

(2) Exempt transactions, for purposes of this section and section 69-2703, are defined as:

(a) Cigarette sales on a federal installation in a transaction that is exempt from state taxation under federal law; and

(b) Cigarette sales on an Indian tribe's Indian country to its tribal members where state taxation is precluded by federal law.

(3) Except as provided in subsection (5) of this section, the person seeking a refund of taxes shall submit an application to the Tax Commissioner providing documentation sufficient to demonstrate (a) that the cigarettes were sold in a package bearing the correct stamp required under section 77-2603 or 77-2603.01 and that the stamp was one that required payment of tax, (b) that the person paid the applicable taxes in question, (c) that the cigarettes were sold in an exempt transaction, and (d) that the person has not previously obtained the refund on the cigarettes. The documentation shall include, in addition to information necessary to meet the requirements of subdivisions (3)(a) through (d) of this section and any other information that the Tax Commissioner may reasonably require, documents showing the identity of the seller and purchaser and the places of shipment and delivery of the cigarettes. The Tax Commissioner shall verify the accuracy and completeness of the required documentation and information before granting the requested refund.

(4) If a meritorious refund claim under subsection (3) of this section is not paid within sixty days after submission of the required documentation, the refund shall include interest on the amount of such refund at the rate specified in section 45-104.02 as such rate existed at the date of submission of the required documentation.

(5) The Tax Commissioner and an Indian tribe may agree upon a tax refund formula to operate in lieu of application for refunds under subsection (3) of this section. The aggregate refund provided to an Indian tribe under a formula for a year shall not exceed the aggregate tax paid by entities owned and operated by that tribe or member of that tribe on cigarettes sold in exempt transactions on that tribe's Indian country during that year. Refunds of taxes under subsection (3) of this section shall not be available for cigarettes sold in exempt transactions on an Indian tribe's Indian country by an Indian tribe that agrees upon a refund formula under this subsection. Nothing in this subsection shall limit the state's authority to enter into an agreement pursuant to section 77-2602.06 pertaining to the collection and dissemination of any cigarette taxes which may otherwise be inconsistent with this subsection.

Source:Laws 2011, LB590, § 22.    


77-2602.06. Governor; agreement with federally recognized Indian tribe authorized; contents; tribal taxes; additional agreement, compact, or treaty authorized.

(1) The Governor or his or her designated representative may negotiate and execute an agreement with the governing body of any federally recognized Indian tribe within the State of Nebraska concerning the collection and dissemination of any cigarette tax or other tobacco product tax under this section and sections 77-2602.05 and 77-2603.01 or escrow collected pursuant to section 69-2703, on sales of cigarettes, roll-your-own, or smokeless tobacco made or sold on a federally recognized Indian tribe's Indian country. The agreement shall specify:

(a) Its duration;

(b) Its purpose;

(c) Provisions for administering, collecting, and enforcing the agreement and for the mutual waiver of sovereign immunity objections with respect to such provisions;

(d) Remittance of taxes and escrow collected;

(e) The division of the proceeds of the tax and escrow between the parties;

(f) The method to be employed in accomplishing the partial or complete termination of the agreement;

(g) A dispute resolution procedure;

(h) Adequate reporting and auditing provisions; and

(i) Any other necessary and proper matters.

(2) The agreement shall require tribal taxes to be imposed equally on all cigarettes and other tobacco products regardless of manufacturer or brand.

(3) The agreement shall require that all packages of cigarettes bear either a stamp under section 77-2603 or a tribal stamp under section 77-2603.01.

(4) The agreement may provide for the sale of cigarettes not included in the directory under section 69-2706, but only if the agreement requires that such cigarettes bear the tribal stamp under section 77-2603.01 and only if the agreement includes provisions to account for escrow deposits on such cigarettes in amounts equal to and in a manner consistent with the deposits required of manufacturers under section 69-2703 or otherwise requires payment of escrow by the manufacturers in accordance with section 69-2703 and pursuant to section 69-2708.01.

(5) An Indian tribe entering into an agreement under this section shall agree not to license or otherwise authorize an individual tribal member or other person or entity to sell cigarettes, roll-your-own, or smokeless tobacco in violation of the terms of the agreement.

(6) The state may, in the best interests of the state, enter into any future agreement, compact, or treaty with any Indian tribe that is consistent with sections 77-2602.05, 77-2602.06, and 77-2603.01.

Source:Laws 2011, LB590, § 23.    


77-2603. Tax; stamps; tax meter impressions; requirements; stamping agent; license; application; form; service of process; corporate surety bond; Tax Commissioner; duties; directory license; application; term.

(1) The tax, as levied in section 77-2602, shall be paid and stamps or cigarette tax meter impressions shall be affixed or printed with a cigarette tax meter by the person having possession and ownership of such cigarettes after the same shall have come to rest in this state and intended to be sold or given away in this state. Nothing in sections 77-2601 to 77-2615 shall be construed to require a stamping agent to fix the retail price or to require any retail dealer to sell at any particular price. Subject to such rules and regulations as the Tax Commissioner shall prescribe, tax meter machines may be used when approved by the Tax Commissioner to affix a suitable stamp or impression on each package of cigarettes and cigarettes with a tax meter impression shall be treated as stamped cigarettes for purposes of sections 69-2701 to 69-2711 and 77-2601 to 77-2615. Before any person is issued a license to affix stamps or cigarette tax meter impressions, the person shall make application to become licensed as a stamping agent to the Tax Commissioner on a form provided by the Tax Commissioner to engage in such activity.

(2) Any manufacturer, importer, sales entity affiliate, wholesale dealer, or retail dealer that engages in the business of selling cigarettes may apply to be licensed as a stamping agent in accordance with this section. A license shall be issued by the Tax Commissioner to an applicant upon the applicant's:

(a) Meeting all requirements of sections 69-2701 to 69-2711 and 77-2601 to 77-2615 and rules and regulations pursuant to such sections;

(b) Certifying on a form prescribed by the Tax Commissioner that it will comply with the requirements of section 69-2708; and

(c) In the case of an applicant located outside of the state, designating an agent for service of process in Nebraska, and providing notice thereof as required by section 69-2707, in connection with enforcement of sections 69-2701 to 69-2711 and 77-2601 to 77-2615, and, if approval is given by the Tax Commissioner, the manufacturer, importer, sales entity affiliate, wholesale dealer, or retail dealer shall furnish a corporate surety bond, conditioned to faithfully comply with all the requirements of sections 77-2601 to 77-2615, in a sum not less than ten thousand dollars. Such bond shall be subject to forfeiture if the stamping agent fails to pay the shortfall amount under subsection (1) of section 69-2708.01 unless the stamping agent is excused from liability under subsection (3) of section 69-2708.01.

(3) Nothing in sections 77-2601 to 77-2615 shall prevent the Tax Commissioner from affixing the stamps or meter impressions in lieu of the provisions for affixing stamps and meter impressions by stamping agents as determined by such rules and regulations adopted by the Tax Commissioner.

(4) The Tax Commissioner shall list on its website the names of all persons licensed as stamping agents under this section. Manufacturers, importers, and sales entity affiliates shall be entitled to rely upon the list in selling cigarettes as provided in section 69-2706.

(5) A manufacturer, importer, sales entity affiliate, wholesale dealer, or retail dealer that engages in the business of selling cigarettes and that holds a valid stamping agent license under subsection (1) of this section may apply for a directory license allowing it to purchase or possess in the state cigarettes of a manufacturer or brand family not at the time of purchase listed in the directory for sale into another state if permitted under section 69-2706. A directory license shall be issued by the Tax Commissioner to an applicant upon the applicant's (a) demonstrating that it holds a valid license under subsection (1) of this section and (b) providing a certification by an officer thereof on a form prescribed by the Tax Commissioner that any cigarettes of a manufacturer or brand family not listed in the directory will be purchased or possessed solely for sale or transfer into another state as permitted by section 69-2706. The directory license shall remain in effect for a period of one year.

(6) No directory license may be issued to a person that acted inconsistently with a certification it previously made under subsection (2) of this section.

(7) The Tax Commissioner shall list on its website the names of all persons holding a directory license. Manufacturers, importers, sales entity affiliates, and stamping agents shall be entitled to rely upon the list in selling cigarettes as provided in section 69-2706.

Source:Laws 1947, c. 267, § 3, p. 862; Laws 1949, c. 245, § 1, p. 665; Laws 1951, c. 271, § 1, p. 905; Laws 1963, c. 458, § 1, p. 1484; Laws 2002, LB 989, § 11;    Laws 2003, LB 572, § 10;    Laws 2011, LB590, § 24;    Laws 2019, LB397, § 22.    


77-2603.01. Tribal stamp; authorized.

The state may enter into an agreement with an Indian tribe pursuant to section 77-2602.06 which contemplates the use of a tribal stamp for sales of cigarettes on an Indian tribe's Indian country in lieu of the cigarette stamp required under section 77-2603.

Source:Laws 2011, LB590, § 25.    


77-2604. Tax Commissioner; reports; contents; when due.

(1) Every stamping agent, wholesale dealer, and retail dealer who is subject to sections 77-2601 to 77-2622 shall make and file with the Tax Commissioner, on or before the fifteenth day of each calendar month in the manner prescribed by the Tax Commissioner, true, correct, and sworn reports covering, for the last preceding calendar month, the number of cigarettes purchased, from whom purchased, the specific kinds and brands thereof, the manufacturer, if known, and such other matters and in such detail as the Tax Commissioner may require.

(2)(a) Each manufacturer and importer that sells cigarettes in or into the state shall, within fifteen days following the end of each month, file a report in the manner prescribed by the Tax Commissioner and certify to the state that the report is complete and accurate.

(b) The report shall contain the following information: The total number of cigarettes sold by that manufacturer or importer in or into the state during that month and identifying by name and number of cigarettes, (i) the manufacturers of those cigarettes, (ii) the brand families of those cigarettes, and (iii) the purchasers of those cigarettes. A manufacturer's or importer's report shall include cigarettes sold in or into the state through its sales entity affiliate.

(c) The requirements of this subsection shall be satisfied and no further report shall be required under this section with respect to cigarettes if the manufacturer or importer timely submits to the Tax Commissioner the report or reports required to be submitted by it with respect to those cigarettes under 15 U.S.C. 376 to the Tax Commissioner and certifies to the state that the reports are complete and accurate.

(d) Upon request by the Tax Commissioner, a manufacturer or importer shall provide copies of all sales reports referenced in subdivisions (2)(a) and (b) of this section that it filed in other states.

(e) Each manufacturer and importer that sells cigarettes in or into the state shall either (i) submit its federal excise tax returns and all monthly operational reports on Alcohol and Tobacco Tax and Trade Bureau Form 5210.5 and all adjustments, changes, and amendments to such reports to the Tax Commissioner no later than sixty days after the close of the quarter in which the returns were filed or (ii) submit to the United States Treasury a request or consent under section 6103(c) of the Internal Revenue Code of 1986 as defined in section 49-801.01 authorizing the federal Alcohol and Tobacco Tax and Trade Bureau and, in the case of a foreign manufacturer or importer, the United States Customs Service to disclose the manufacturer's or importer's federal returns to the Tax Commissioner as of sixty days after the close of the quarter in which the returns were filed.

Source:Laws 1947, c. 267, § 4, p. 862; Laws 2002, LB 989, § 12;    Laws 2011, LB590, § 26;    Laws 2015, LB261, § 9;    Laws 2017, LB217, § 12.    


77-2604.01. Cigarette sales; reports required; contents.

(1) Any person that sells cigarettes from this state into another state shall, within fifteen days following the end of each month, file a report in the manner prescribed by the Tax Commissioner and certify to the state that the report is complete and accurate.

(2) The report shall contain the following information:

(a) The total number of cigarettes sold from this state into another state by the person during that month, identifying by name and number of cigarettes (i) the manufacturers of those cigarettes, (ii) the brand families of those cigarettes, and (iii) the name and address of each recipient of those cigarettes;

(b) The number of stamps of each other state the person affixed to the packages containing those cigarettes during that month, the total number of cigarettes contained in the packages to which it affixed each respective other state's stamp and by name and number of cigarettes, and the manufacturers and brand families of the packages to which it affixed each respective other state's stamp; and

(c) If the person sold cigarettes during that month from this state into another state in packages not bearing a stamp of the other state, (i) the total number of cigarettes contained in such packages, identifying by name and number of cigarettes, the manufacturers of those cigarettes, the brand families of those cigarettes, and the name and address of each recipient of those cigarettes, and (ii) the person's basis for belief that such state permits the sale of the cigarettes to consumers in a package not bearing a stamp, and the amount of excise, use, or similar tax imposed on the cigarettes paid by the person to such state on the cigarettes. Manufacturers and importers need include the information described in subdivision (2)(c)(i) of this section only as to cigarettes not sold to a person authorized by the law of the other state to affix the stamp required by the other state.

(3) In the case of a manufacturer or importer, the report shall include cigarettes sold from this state into another state through its sales entity affiliate. A sales entity affiliate shall file a separate report under this section only to the extent that it sold cigarettes from this state into another state not separately reported under this section by its affiliated manufacturer or importer.

Source:Laws 2011, LB590, § 27;    Laws 2015, LB261, § 10;    Laws 2017, LB217, § 13.    


77-2605. Cigarette purchase or sale records; inspection.

The books, records, papers, receipts, invoices, and supply of cigarettes of any person, including wholesale and retail dealers, stamping agents, and persons transporting cigarettes, subject to the provisions of sections 77-2601 to 77-2615 which pertain to the purchase or sale of cigarettes shall be subject to inspection at any time during ordinary business hours by the Tax Commissioner or his or her representatives.

Source:Laws 1947, c. 267, § 5, p. 862; Laws 2011, LB590, § 28.    


77-2606. Stamps; affix; cancellation.

Before being delivered to the consumer, each package of cigarettes shall have securely affixed thereto a suitable stamp or cigarette tax meter impression denoting the tax thereon. Any stamp so affixed shall be properly canceled prior to removal or consumption under such regulations as the Tax Commissioner shall prescribe.

Source:Laws 1947, c. 267, § 6, p. 863.


77-2607. Stamping agent; stock; exempt from tax; conditions.

Each stamping agent may set aside such portion of the stamping agent's stock of cigarettes as is not intended to be sold or given away in this state and it will not be necessary to affix the stamps or tax meter impressions thereon required under section 77-2606, except that if such stock is not disposed of and out of the possession of the stamping agent within thirty days of the date of receipt thereof, the cigarettes, packages, or pieces shall immediately be stamped as required by sections 77-2601 to 77-2615. Each stamping agent shall immediately mark in ink on each unopened box, carton, or other container of such cigarettes, received and the date of receipt and shall affix the stamping agent's signature thereto. Within forty-eight hours after such box, carton, or other container is opened, the stamping agent shall immediately affix such stamps or tax impressions to each package and cancel the stamps affixed thereto.

Source:Laws 1947, c. 267, § 7, p. 863; Laws 2011, LB590, § 29.    


77-2608. Tax Commissioner; duties; audit; discount; funds; disposition.

The Tax Commissioner shall prepare and have suitable stamps for use on each kind of piece or package of cigarettes, except when cigarette tax meter impressions are affixed. Requisition for the preparation of such stamps shall be made through the materiel division of the Department of Administrative Services as other state supplies are requisitioned, and the Tax Commissioner and his or her bondsperson shall be liable for the value of all such stamps delivered to him or her. The Auditor of Public Accounts shall audit as often as the auditor deems advisable the records of the Tax Commissioner with respect to the money received from the sale of stamps and as revenue from tax meter impressions for the purpose of determining the accuracy and correctness of the same. The Tax Commissioner shall sell or distribute the stamps only to licensed stamping agents, as provided in section 77-2603 or 77-2603.01, and the stamping agent shall keep an accurate record of all stamps coming into and leaving the stamping agent's possession. Such stamps shall be sold and accounted for at the face value thereof, except that the Tax Commissioner may, by rule and regulation certified to the State Treasurer, authorize the sale thereof to stamping agents in this state or outside of this state at a discount of one and eighty-five hundredths percent of such face value of the tax as a commission for affixing and canceling such stamps. Any stamping agent using a tax meter machine shall be entitled to the same discount as allowed a stamping agent for affixing and canceling the stamps. The money received by the Tax Commissioner from the sale of the stamps and as revenue from such tax meter impressions shall be deposited by him or her daily with the State Treasurer who shall credit such money as provided in section 77-2602. Upon proof by the Tax Commissioner that he or she can affix such stamps or meter impressions, warehouse and distribute such cigarettes, and collect such revenue at a cost less than any discount allowed to stamping agents pursuant to this section, he or she may then proceed to affix the stamps himself or herself after giving the stamping agents sixty days' notice and purchasing all equipment used by them for the purpose of affixing such stamps or meter impressions at a fair market value.

Source:Laws 1947, c. 267, § 8, p. 863; Laws 1949, c. 245, § 2, p. 666; Laws 1949, c. 246, § 1, p. 668; Laws 1963, c. 458, § 2, p. 1485; Laws 1965, c. 501, § 3, p. 1596; Laws 1965, c. 500, § 2, p. 1591; Laws 1971, LB 87, § 2;    Laws 1985, LB 653A, § 3;    Laws 1985, Second Spec. Sess., LB 3, § 3;    Laws 1987, LB 730, § 29;    Laws 2000, LB 654, § 4;    Laws 2002, Second Spec. Sess., LB 46, § 1;    Laws 2003, LB 572, § 11;    Laws 2011, LB337, § 6;    Laws 2011, LB590, § 30.    


Annotations

77-2609. Stamps; spoiled and unused; destruction; conditions.

Any spoiled or unused stamps in the hands of the Tax Commissioner shall be destroyed upon the joint certificate of the Tax Commissioner, the State Treasurer, and the Secretary of State, setting forth the number, denomination, and face value of the same. Such certificate shall relieve the Tax Commissioner from accountability in the amount thereof.

Source:Laws 1947, c. 267, § 9, p. 864; Laws 2002, LB 989, § 13.    


77-2610. Stamps; redemption by Tax Commissioner; errors; adjust.

Upon the written request of the original purchaser thereof and upon the return of any unused stamps, the Tax Commissioner shall redeem such stamps. The Tax Commissioner shall prepare a voucher showing the amount of such returned unused stamps and shall cause to be drawn a warrant upon the State Treasurer for such amount in favor of the person returning such unused stamps. The refunds shall be paid from the various funds named in section 77-2602 in the same proportions as the proceeds of the tax are allocated. By the terms of sections 77-2601 to 77-2615, the Tax Commissioner and the State Treasurer are specifically authorized to adjust all errors in payments for unused stamps.

Source:Laws 1947, c. 267, § 10, p. 864; Laws 1959, c. 353, § 7, p. 1246; Laws 1965, c. 501, § 4, p. 1597; Laws 1965, c. 459, § 20, p. 1462; Laws 1969, c. 645, § 11, p. 2562; Laws 1971, LB 87, § 3;    Laws 2011, LB590, § 31.    


Annotations

77-2611. Stamps; unlawful sale.

It shall be unlawful for any person to sell unused stamps except as otherwise herein provided.

Source:Laws 1947, c. 267, § 11, p. 864.


77-2612. Tax Commissioner; personnel; rules and regulations; stamping agent; license; fee.

The Tax Commissioner may employ, with the advice and consent of the Governor, a sufficient number of inspectors, clerks, assistants, and agents to enforce sections 77-2601 to 77-2622, including the collection of all stamp taxes and all revenue from cigarette tax meters. In such enforcement, the Tax Commissioner may call to his or her aid the Attorney General, any county attorney, any sheriff, any deputy sheriff, or any other peace officer. The compensation of all persons employed shall be fixed by the Governor and shall be paid from the revenue derived under such sections. The expenses of administering such sections, including necessary assistants, clerical help, cost of enforcement, cost of stamps, and incidental expenses, when approved by the Tax Commissioner, shall be paid by warrants, issued against the General Fund, but such warrants shall not exceed four percent of the funds collected under such sections, such expenses in each instance to be approved by the Tax Commissioner.

The Tax Commissioner may adopt and promulgate rules and regulations which are consistent with sections 77-2601 to 77-2622 and their proper enforcement.

Each stamping agent shall annually apply to the Tax Commissioner, upon forms to be furnished by the Tax Commissioner, for a license to use the tax meter machines, as set forth in section 77-2603, or to purchase such stamps as provided in section 77-2608, or both. The license shall expire on December 31 each year. Each wholesale dealer applying for a stamping agent license shall furnish with such application evidence satisfactory to the Tax Commissioner showing that the wholesale dealer has obtained a license as a wholesale dealer in accordance with section 28-1423. The applicant shall accompany the application with a fee of five hundred dollars to be placed in the General Fund if the license is granted and otherwise to be returned to the applicant. If the applicant is an individual, the application shall include the applicant's social security number. If the application is approved and the bond referred to in section 77-2603 is given and approved, if such bond is required under section 77-2603, the Tax Commissioner shall issue such license which shall be conspicuously posted in the place of business of such stamping agent.

Source:Laws 1947, c. 267, § 12, p. 864; Laws 1959, c. 353, § 8, p. 1246; Laws 1965, c. 501, § 5, p. 1597; Laws 1965, c. 500, § 3, p. 1591; Laws 1965, c. 364, § 19, p. 1193; Laws 1978, LB 748, § 43;    Laws 1982, LB 928, § 63; Laws 1997, LB 752, § 211;    Laws 2002, LB 989, § 14;    Laws 2011, LB590, § 32.    


77-2613. State Treasurer; disbursements for administration.

The State Treasurer shall place all sums of money received under sections 77-2601 to 77-2615 as provided in section 77-2602, and from time to time, upon voucher approved by the Tax Commissioner, disburse such sum or sums as may be necessary to administer and carry out the provisions of sections 77-2601 to 77-2615 relating to the collection of the tax, subject to the limitations provided in such sections.

Source:Laws 1947, c. 267, § 13, p. 865; Laws 1949, c. 245, § 3, p. 666; Laws 1959, c. 353, § 9, p. 1247; Laws 1965, c. 501, § 6, p. 1599; Laws 1965, c. 500, § 4, p. 1593; Laws 2011, LB590, § 33.    


77-2614. License; permit; stamp; alter; forge; counterfeit; violations; penalty.

Any person who, with intent to defraud the state, shall make, alter, forge, or counterfeit any license, permit, stamp, or cigarette tax meter impression provided for in sections 77-2601 to 77-2615, or who shall have in his or her possession any forged, counterfeited, spurious, or altered license, permit, stamp, or cigarette tax meter impression, with intent to use the same, knowing or having reasonable grounds to believe the same to be such, or shall have in his or her possession one or more cigarette stamps or cigarette tax meter impressions which he or she knows have been removed from the pieces or packages of cigarettes to which they were affixed, or who affixes to any piece or package of cigarettes a stamp or cigarette tax meter impression which he or she knows has been removed from any other piece or package of cigarettes shall be deemed guilty of a Class IV felony.

Source:Laws 1947, c. 267, § 14, p. 865; Laws 1977, LB 39, § 236;    Laws 2011, LB590, § 34.    


77-2615. Prohibited acts; violations; penalty; prima facie evidence.

Any person who violates sections 77-2601 to 77-2615, or any rule or regulation adopted and promulgated in accordance therewith, for which a specific penalty is not otherwise provided or who shall, except as permitted by sections 77-2601 to 77-2615, sell, deliver, or accept, with intent to evade the provisions of such sections, any cigarettes upon which the tax provided by section 77-2602 has not been paid or who affixes a stamp permitted under section 77-2603 or 77-2603.01 to a package of cigarettes of a tobacco product manufacturer or brand family not included in the directory pursuant to section 69-2706 or who sells, offers, or possesses for sale in this state cigarettes of a tobacco product manufacturer or brand family not included in the directory shall be deemed guilty of a Class IV felony. If any person is found to have in his or her possession more than ten unstamped packages of cigarettes, except as permitted under section 77-2607, it shall be prima facie evidence of attempt to evade sections 77-2601 to 77-2615.

Source:Laws 1947, c. 267, § 15, p. 866; Laws 1949, c. 245, § 4, p. 667; Laws 1977, LB 39, § 237;    Laws 2011, LB590, § 35.    


77-2615.01. Licensees; disciplinary action; procedure; appeal; joint and several liability; when.

(1) In addition to sections 77-2615 and 77-2622, for any violation of sections 77-2601 to 77-2622 or the rules and regulations adopted and promulgated under such sections, the Tax Commissioner may:

(a) After notice and hearing, suspend or revoke the licenses of any person licensed under sections 28-1420 to 28-1429 or 77-2601 to 77-2622. Notice of hearing shall be given as provided in the Administrative Procedure Act; and

(b) Impose an administrative penalty not to exceed one thousand dollars for any violation.

(2) No person whose license has been suspended or revoked shall sell cigarettes or permit cigarettes to be sold during the period of suspension or revocation on the premises occupied by him or her. No disciplinary proceeding or action shall be barred or abated by the expiration, transfer, surrender, continuance, renewal, or extension of any license issued under sections 28-1420 to 28-1429 or 77-2601 to 77-2622.

(3) Any person aggrieved by any decision, order, or finding of the Tax Commissioner may appeal the decision, order, or finding, and the appeal shall be in accordance with the Administrative Procedure Act.

(4) If a person's license has been suspended or revoked and the person's name has been removed for at least ten days from the list of licensed entities published by the Tax Commissioner under subsection (4) of section 77-2603, any person that sells cigarettes to or purchases cigarettes from such person shall be jointly and severally liable for any taxes applicable to such cigarettes under section 77-2602 and for any escrow due on such cigarettes under section 69-2703.

Source:Laws 2002, LB 989, § 15;    Laws 2011, LB590, § 36.    


Cross References

77-2616. Use tax; rate.

There is hereby levied and imposed a tax upon the use of all cigarettes, as defined by section 77-2601, used in this state, except such cigarettes upon which the tax imposed by section 77-2602 has been paid. The amount of such use tax shall be at the rate provided in section 77-2602 as now existing or as hereafter amended. The tax collected shall be disbursed as provided in section 77-2602.

Source:Laws 1949, c. 224, § 1, p. 628; Laws 1959, c. 353, § 10, p. 1248; Laws 1963, c. 457, § 2, p. 1483; Laws 1965, c. 501, § 7, p. 1559; Laws 1971, LB 87, § 4;    Laws 1981, LB 506, § 6; Laws 1982, LB 753, § 2.


Annotations

77-2617. Use tax; payment; report.

Every person, firm, corporation, or association, using cigarettes subject to taxation on the use thereof under the provisions of sections 77-2616 to 77-2619, shall pay such tax and make report thereof to the Tax Commissioner under such rules and regulations as may be prescribed by the Tax Commissioner.

Source:Laws 1949, c. 224, § 2, p. 629; Laws 2002, LB 989, § 16.    


77-2618. Use tax; delinquent; penalty.

If the tax provided for in section 77-2616 is not paid within such time as may be prescribed for payment thereof by rules and regulations prescribed by the Tax Commissioner, the same shall become delinquent and a penalty of twenty-five percent shall be added thereto, together with interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, until paid. If attorneys are employed to collect such delinquent tax, ten percent of the tax, penalty, and interest shall be added thereto as a part of the costs of collection.

Source:Laws 1949, c. 224, § 3, p. 629; Laws 1981, LB 167, § 50;    Laws 1992, Fourth Spec. Sess., LB 1, § 21.    


77-2619. Use tax; violation; penalty.

Any person, firm, corporation, or association, that shall willfully fail, neglect, or refuse to make any report required by sections 77-2616 to 77-2619, or by rules and regulations lawfully promulgated thereunder, or that shall knowingly make any false statement in any such report, shall be deemed guilty of a Class III misdemeanor.

Source:Laws 1949, c. 224, § 4, p. 629; Laws 1977, LB 39, § 238.    


77-2620. Contraband cigarettes; confiscation; destruction.

All cigarettes subject to the tax as imposed by section 77-2602, to which stamps have not been affixed or tax impressions made, as required by sections 77-2601 to 77-2615, except as permitted by the provisions of section 77-2607, when found in any place in this state are declared to be contraband goods and may be seized by the Tax Commissioner, by the Tax Commissioner's agents or employees, or by any peace officer of this state, when directed by the Tax Commissioner to do so, without a warrant. The Tax Commissioner may, upon satisfactory proof, direct the return of any confiscated cigarettes when he or she has reason to believe that the owner thereof has not willfully or intentionally evaded any tax imposed under section 77-2602. The Tax Commissioner may, in the absence of proof of good faith, confiscate any unstamped cigarettes or cigarettes without tax impressions found in the possession of any person, except as permitted by section 77-2607. Any cigarettes forfeited to the state under this section shall be destroyed or used for law enforcement purposes and then destroyed. The Tax Commissioner, his or her agents and employees, and any peace officer of this state, when directed so to do, shall not in any way be responsible in any court for the seizure or the confiscation of any unstamped packages of cigarettes or cigarettes without tax impressions.

Source:Laws 1951, c. 272, § 1, p. 906; Laws 1965, c. 501, § 8, p. 1599; Laws 1965, c. 500, § 5, p. 1593; Laws 2002, LB 989, § 17;    Laws 2003, LB 572, § 12;    Laws 2011, LB590, § 37.    


77-2621. Common carrier; unstamped cigarettes; bond; conditions; permit; fee.

Any common carrier of merchandise owning or operating any railroad, express company, bus, truck, or other transportation line or routes for the transportation of merchandise in the State of Nebraska, upon application and filing of a bond in form and penalty and with such sureties as may be approved by the Tax Commissioner, may be designated as a carrier of unstamped cigarettes from any bonded warehouse to a licensed wholesale tobacco dealer in the State of Nebraska, and a carrier's permit shall be issued by the Tax Commissioner upon receipt of a fee of ten dollars. One of the conditions of such bond shall be that the bonded carrier shall be liable to the State of Nebraska in an amount equal to the tax due on the quantity of cigarettes consigned to the licensed tobacco dealer.

Source:Laws 1951, c. 255, § 1, p. 876; Laws 1982, LB 928, § 64.


77-2622. Common carrier; unstamped cigarettes; bond; permit; violation; penalty.

Failure to comply with section 77-2621 shall be cause for revocation of the permit issued under section 77-2621 and forfeiture of the bond posted pursuant to section 77-2621.

Source:Laws 1951, c. 255, § 2, p. 877; Laws 2011, LB590, § 38.    


77-2701. Act, how cited.

Sections 77-2701 to 77-27,135.01, 77-27,222, 77-27,235, 77-27,236, and 77-27,238 to 77-27,241 shall be known and may be cited as the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 1, p. 1533; Laws 1984, LB 1124, § 2;    Laws 1985, LB 715, § 1;    Laws 1985, LB 273, § 40;    Laws 1987, LB 773, § 1;    Laws 1987, LB 772, § 1;    Laws 1987, LB 775, § 14;    Laws 1987, LB 523, § 12;    Laws 1989, LB 714, § 1;    Laws 1989, LB 762, § 9;    Laws 1991, LB 444, § 1;    Laws 1991, LB 773, § 6; Laws 1991, LB 829, § 19; Laws 1992, LB 871, § 3;    Laws 1992, LB 1063, § 180; Laws 1992, Second Spec. Sess., LB 1, § 153;    Laws 1992, Fourth Spec. Sess., LB 1, § 22;    Laws 1993, LB 138, § 69;    Laws 1993, LB 240, § 1;    Laws 1993, LB 345, § 14;    Laws 1993, LB 587, § 20;    Laws 1993, LB 815, § 22;    Laws 1994, LB 901, § 1;    Laws 1994, LB 938, § 1;    Laws 1995, LB 430, § 2;    Laws 1996, LB 106, § 2;    Laws 1997, LB 182A, § 1;    Laws 1998, LB 924, § 27;    Laws 2001, LB 172, § 10;    Laws 2001, LB 433, § 2;    Laws 2002, LB 57, § 2;    Laws 2002, LB 947, § 3;    Laws 2003, LB 72, § 1;    Laws 2003, LB 168, § 1;    Laws 2003, LB 282, § 6;    Laws 2003, LB 759, § 4;    Laws 2004, LB 1017, § 2;    Laws 2005, LB 28, § 1;    Laws 2005, LB 312, § 6;    Laws 2006, LB 872, § 1;    Laws 2006, LB 968, § 3;    Laws 2006, LB 1189, § 1;    Laws 2007, LB223, § 3;    Laws 2007, LB343, § 1;    Laws 2007, LB367, § 9;    Laws 2008, LB916, § 5;    Laws 2009, LB9, § 2;    Laws 2012, LB727, § 34;    Laws 2012, LB830, § 1;    Laws 2012, LB970, § 1;    Laws 2012, LB1080, § 2;    Laws 2014, LB96, § 1;    Laws 2014, LB867, § 8;    Laws 2015, LB3, § 1;    Laws 2015, LB419, § 1;    Laws 2016, LB774, § 2;    Laws 2017, LB217, § 14;    Laws 2019, LB57, § 2;    Laws 2021, LB26, § 1;    Laws 2021, LB595, § 2;    Laws 2022, LB917, § 1;    Laws 2022, LB984, § 1;    Laws 2023, LB727, § 58.    
Operative Date: June 7, 2023


Annotations

77-2701.01. Income tax; rate.

Pursuant to section 77-2715.01, for all taxable years beginning or deemed to begin on or after January 1, 1990, and before January 1, 1991, under the Internal Revenue Code of 1986, as amended, the rate of the income tax levied pursuant to section 77-2715 shall be three and forty-three-hundredths percent. Pursuant to section 77-2715.01, for all taxable years beginning or deemed to begin on or after January 1, 1991, and before January 1, 2013, under the Internal Revenue Code of 1986, as amended, the rate of the income tax levied pursuant to section 77-2715 shall be three and seventy-hundredths percent. Pursuant to section 77-2715.01, for all taxable years beginning or deemed to begin on or after January 1, 2013, under the Internal Revenue Code of 1986, as amended, the rates of the income tax levied pursuant to section 77-2715 shall be as provided in section 77-2715.03.

Source:Laws 1984, LB 892, § 1;    Laws 1985, Second Spec. Sess., LB 35, § 1;    Laws 1986, LB 539, § 1;    Laws 1987, LB 773, § 2;    Laws 1990, LB 1059, § 32;    Laws 2012, LB970, § 2.    


77-2701.02. Sales tax; rate.

Pursuant to section 77-2715.01:

(1) Until July 1, 1998, the rate of the sales tax levied pursuant to section 77-2703 shall be five percent;

(2) Commencing July 1, 1998, and until July 1, 1999, the rate of the sales tax levied pursuant to section 77-2703 shall be four and one-half percent;

(3) Commencing July 1, 1999, and until the start of the first calendar quarter after July 20, 2002, the rate of the sales tax levied pursuant to section 77-2703 shall be five percent;

(4) Commencing on the start of the first calendar quarter after July 20, 2002, the rate of the sales tax levied pursuant to section 77-2703 shall be five and one-half percent; and

(5) Commencing July 1, 2023, the rate of the sales tax levied pursuant to section 77-2703 shall be five and one-half percent, except that such rate shall be two and three-quarters percent on transactions occurring within a good life district as defined in section 77-4403.

Source:Laws 1984, LB 892, § 2;    Laws 1986, LB 539, § 2;    Laws 1990, LB 1059, § 33;    Laws 1998, LB 1104, § 12;    Laws 2002, LB 1085, § 2;    Laws 2003, LB 759, § 5;    Laws 2023, LB727, § 59.    
Operative Date: June 7, 2023


77-2701.03. Changes; when effective; relief from liability; conditions.

(1) The sales tax rate may only be changed effective at the beginning of a calendar quarter.

(2) Any sales tax exemption or repeal of any sales tax exemption shall only be effective at the beginning of a calendar quarter.

(3) Any change in sales tax rate or base dealing with a service covering a period of time starting before and ending after the effective date of the change shall be effective as follows: (a) For a rate increase or base expansion, the change shall apply to the first billing period commencing on or after the effective date; and (b) for a rate decrease or base contraction, the change shall apply to bills rendered on or after the effective date.

(4) A seller shall be relieved of liability for failing to collect tax at the new effective rate if the state fails to provide a period of at least thirty days between enactment of the statute providing for a rate change and the effective date of such rate change, the seller collected tax at the immediately preceding effective rate, and the seller's failure to collect at the newly effective rate does not extend beyond thirty days after the date of enactment of the new rate.

(5) Subsection (4) of this section shall not apply if the seller fraudulently failed to collect at the new rate or solicits purchasers based on the immediately preceding effective rate.

Source:Laws 2003, LB 282, § 7;    Laws 2009, LB165, § 4.    


77-2701.04. Definitions, where found.

For purposes of sections 77-2701.04 to 77-2713 and 77-27,239, unless the context otherwise requires, the definitions found in sections 77-2701.05 to 77-2701.56 shall be used.

Source:Laws 1992, LB 871, § 4;    Laws 1992, Fourth Spec. Sess., LB 1, § 23;    Laws 1993, LB 345, § 15;    Laws 1998, LB 924, § 28;    R.S.Supp.,2002, § 77-2702.03; Laws 2003, LB 282, § 8;    Laws 2003, LB 759, § 6;    Laws 2004, LB 1017, § 3;    Laws 2005, LB 312, § 7;    Laws 2006, LB 968, § 4;    Laws 2006, LB 1189, § 2;    Laws 2007, LB223, § 4;    Laws 2007, LB367, § 10;    Laws 2008, LB916, § 6;    Laws 2009, LB9, § 3;    Laws 2012, LB727, § 35;    Laws 2012, LB830, § 2;    Laws 2012, LB1080, § 3;    Laws 2014, LB96, § 2;    Laws 2014, LB867, § 9;    Laws 2015, LB419, § 2;    Laws 2019, LB57, § 3;    Laws 2021, LB26, § 2;    Laws 2021, LB595, § 3;    Laws 2022, LB984, § 2;    Laws 2023, LB727, § 60.    
Operative Date: June 7, 2023


77-2701.05. Agent, defined.

Agent means a person appointed by a seller to represent the seller before the member states.

Source:Laws 2003, LB 282, § 9.    


77-2701.06. Annexed to real estate, defined.

Annexed to real estate means attaching property to real estate so that (1) the property becomes real estate or (2) the installation or removal of the property requires specialized skills or tools and is performed or supervised by a recognized trade professional as determined by the Department of Revenue by rule and regulation.

Source:Laws 1993, LB 345, § 29;    R.S.1943, (1996), § 77-2702.24; Laws 2003, LB 282, § 10.    


77-2701.07. Business, defined.

Business means any activity engaged in by any person or caused to be engaged in by him or her with the object of gain, benefit, or advantage, either direct or indirect.

Source:Laws 1992, LB 871, § 5;    R.S.1943, (1996), § 77-2702.04; Laws 2003, LB 282, § 11.    


77-2701.08. Certified automated system, defined.

Certified automated system means software certified under the streamlined sales and use tax agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate member state, and maintain a record of the transaction.

Source:Laws 2003, LB 282, § 12.    


77-2701.09. Certified service provider, defined.

Certified service provider means an agent certified under the streamlined sales and use tax agreement to perform all of the seller's sales tax collection functions, other than to remit tax on its own retail purchases.

Source:Laws 2003, LB 282, § 13.    


77-2701.10. Contractor or repairperson, defined.

Contractor or repairperson means any person who performs any repair services upon property annexed to, or who annexes building materials to, real estate, including leased property, and who, as a necessary and incidental part of performing such services, annexes building materials to the real estate being so repaired or annexed or arranges for such annexation. Contractor or repairperson does not include any person who incorporates live plants into real estate except when such incorporation is incidental to the transfer of an improvement upon real estate or the real estate. The contractor or repairperson not electing to be taxed as a retailer is considered to be the consumer of such building materials furnished by him or her and annexed to the real estate being so repaired or annexed for all the purposes of the Nebraska Revenue Act of 1967. The contractor or repairperson:

(1) Shall be permitted to make an election that he or she will be taxed as a retailer in which case he or she shall not be considered the final consumer of building materials annexed to real estate;

(2) Shall be permitted to make an election that he or she will be taxed as the consumer of building materials annexed to real estate, will pay the sales tax or remit the use tax at the time of purchase, and will maintain a tax-paid inventory; or

(3) Shall be permitted to make an election that he or she will be taxed as the consumer of building materials annexed to real estate and may issue a resale certificate when purchasing building materials that will be annexed to real estate. Such person shall then remit the appropriate use tax on any building materials when withdrawn from inventory for the purpose of being annexed to real estate at the rate in effect at the time and place of the withdrawal from inventory.

The provisions of this section shall not excuse any person from the obligation to collect sales tax on retail sales of property not annexed to real estate or from the obligation to pay the sales tax or remit the use tax on tools, services, and other materials consumed that are not annexed to real estate.

The Department of Revenue shall not prescribe any requirements of Nebraska sales revenue, percentage or otherwise, restricting any person's election. Any change in an election shall require prior approval by the Tax Commissioner.

Any change in the election shall, if filed on or prior to the fifteenth of the month, become effective at the beginning of the following month or, if filed after the fifteenth of the month, become effective on the first day of the next succeeding month. Any person who changes his or her election and becomes a contractor or repairperson shall pay the tax on all building materials in inventory which may be annexed to real estate at the time of making the change in election except when such contractor or repairperson elects to purchase inventory with a resale certificate. Any person who changes his or her election and becomes a retailer shall not be entitled to a refund but shall receive a credit for the tax paid on building materials in inventory at the time the building materials are sold. The credit shall be applied against the tax collected on sales of such building materials.

Any contractor or repairperson who has not completed and filed an election as required in this section within three months after beginning to operate as a contractor or repairperson shall be considered a retailer for all periods until an election has been made.

Source:Laws 1992, LB 871, § 6;    Laws 1993, LB 345, § 16;    R.S.1943, (1996), § 77-2702.05; Laws 2003, LB 282, § 14;    Laws 2003, LB 759, § 7;    Laws 2004, LB 1017, § 6;    Laws 2007, LB367, § 12.    


Annotations

77-2701.11. Delivery charges, defined.

Delivery charges means charges by the seller of personal property or services for preparation and delivery to a location designated by the purchaser of personal property or services, including, but not limited to, transportation, shipping, postage, handling, crating, and packing. Delivery charges does not include United States postage charges on direct mail that are separately stated on the invoice, bill of sale, or similar document given to the purchaser.

Source:Laws 2003, LB 282, § 15;    Laws 2014, LB867, § 10.    


77-2701.12. Direct mail, defined.

Direct mail means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items are not billed directly to the recipients. Direct mail includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. Direct mail does not include multiple items of printed material delivered to a single address.

Source:Laws 2003, LB 282, § 16.    


77-2701.13. Engaged in business in this state, defined.

(1) Engaged in business in this state means conducting operations in this state that exceed the limitations of the commerce clause and due process clause of the United States Constitution and includes, but is not limited to, any of the following:

(a) Maintaining, occupying, or using, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse, storage place, or other place of business in this state;

(b) Having any representative, agent, salesperson, canvasser, facilitator, or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, or taking orders for any property;

(c) Deriving rentals from a lease of property in this state by any retailer;

(d) Soliciting retail sales of property from residents of this state on a continuous, regular, or systematic basis by means of advertising which is broadcast into this state or installed onto an electronic device located in this state;

(e) Soliciting or facilitating orders from or sales to residents of this state if the activities are continuous, regular, seasonal, or systematic or if the retailer benefits from any activities occurring in this state or benefits from the location in this state of authorized installation, servicing, or repair facilities;

(f) Being owned or controlled by the same interests which own or control any retailer engaged in business in this state; or

(g) Maintaining or having a franchisee or licensee operating under the retailer's trade name in this state if the franchisee or licensee is required to collect the tax under the Nebraska Revenue Act of 1967.

(2) A retailer who lacks a physical presence in this state and who operates a website or other digital medium or media to execute sales to purchasers of property subject to sales or use taxes in this state, or who uses a multivendor marketplace platform that acts as an intermediary by facilitating sales between a seller and the purchaser of property subject to sales or use taxes in this state, shall be deemed to be engaged in business in this state if:

(a) Such retailer made total retail sales of property in this state that exceeded one hundred thousand dollars in the previous or current calendar year; or

(b) Such retailer made retail sales in this state in two hundred or more separate transactions in the previous or current calendar year.

(3) A multivendor marketplace platform that acts as an intermediary by facilitating sales between a seller and the purchaser of property subject to sales or use taxes in this state shall be deemed to be engaged in business in this state if:

(a) The multivendor marketplace platform made or facilitated total retail sales of property in this state that exceeded one hundred thousand dollars in the previous or current calendar year; or

(b) The multivendor marketplace platform made or facilitated retail sales in this state in two hundred or more separate transactions in the previous or current calendar year.

Source:Laws 1992, LB 871, § 7;    Laws 1993, LB 345, § 17;    R.S.1943, (1996), § 77-2702.06; Laws 2003, LB 282, § 17;    Laws 2019, LB284, § 1.    


77-2701.14. Entity-based exemption, defined.

Entity-based exemption means an exemption based on who purchases the product or who sells the product. An exemption that is available to all individuals shall not be considered an entity-based exemption.

Source:Laws 2003, LB 282, § 18;    Laws 2006, LB 887, § 2.    


77-2701.15. Governing board, defined.

Governing board means the body containing representatives from each state that is a member of the streamlined sales and use tax agreement that is responsible for approving membership or withdrawal of states to the agreement, registering retailers to collect sales and use tax from purchasers in the member states, certifying service providers and automated systems for collecting sales and use taxes, approving monetary allowances for certified service providers and certified automated systems, resolving disputes among member states or with retailers or certified service providers, and otherwise executing the provisions of the agreement for the benefit of the member states under the terms of the agreement.

Source:Laws 2003, LB 282, § 19.    


77-2701.16. Gross receipts, defined.

(1) Gross receipts means the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers.

(2) Gross receipts of every person engaged as a public utility specified in this subsection, as a community antenna television service operator, or as a satellite service operator or any person involved in connecting and installing services defined in subdivision (2)(a), (b), or (d) of this section means:

(a)(i) In the furnishing of telephone communication service, other than mobile telecommunications service as described in section 77-2703.04, the gross income received from furnishing ancillary services, except for conference bridging services, and intrastate telecommunications services, except for value-added, nonvoice data service.

(ii) In the furnishing of mobile telecommunications service as described in section 77-2703.04, the gross income received from furnishing mobile telecommunications service that originates and terminates in the same state to a customer with a place of primary use in Nebraska;

(b) In the furnishing of telegraph service, the gross income received from the furnishing of intrastate telegraph services;

(c)(i) In the furnishing of gas, sewer, water, and electricity service, other than electricity service to a customer-generator as defined in section 70-2002, the gross income received from the furnishing of such services upon billings or statements rendered to consumers for such utility services.

(ii) In the furnishing of electricity service to a customer-generator as defined in section 70-2002, the net energy use upon billings or statements rendered to customer-generators for such electricity service;

(d) In the furnishing of community antenna television service or satellite service, the gross income received from the furnishing of such community antenna television service as regulated under sections 18-2201 to 18-2205 or 23-383 to 23-388 or satellite service; and

(e) The gross income received from the provision, installation, construction, servicing, or removal of property used in conjunction with the furnishing, installing, or connecting of any public utility services specified in subdivision (2)(a) or (b) of this section or community antenna television service or satellite service specified in subdivision (2)(d) of this section, except when acting as a subcontractor for a public utility, this subdivision does not apply to the gross income received by a contractor electing to be treated as a consumer of building materials under subdivision (2) or (3) of section 77-2701.10 for any such services performed on the customer's side of the utility demarcation point. This subdivision also does not apply to:

(i) The gross income received by a political subdivision of the state, an electric cooperative, or an electric membership association for the lease or use of, or by a contractor for the construction of or services provided on, electric generation, transmission, distribution, or street lighting structures or facilities owned by a political subdivision of the state, an electric cooperative, or an electric membership association; or

(ii) The gross income received for the lease or use of towers or other structures primarily used in conjunction with the furnishing of (A) Internet access services, (B) agricultural global positioning system locating services, or (C) over-the-air radio and television broadcasting licensed by the Federal Communications Commission, including antennas and studio transmitter link systems. For purposes of this subdivision, studio transmitter link system means a system which serves as a conduit to deliver audio from its origin in a studio to a broadcast transmitter.

(3) Gross receipts of every person engaged in selling, leasing, or otherwise providing intellectual or entertainment property means:

(a) In the furnishing of computer software, the gross income received, including the charges for coding, punching, or otherwise producing any computer software and the charges for the tapes, disks, punched cards, or other properties furnished by the seller; and

(b) In the furnishing of videotapes, movie film, satellite programming, satellite programming service, and satellite television signal descrambling or decoding devices, the gross income received from the license, franchise, or other method establishing the charge.

(4) Gross receipts for providing a service means:

(a) The gross income received for building cleaning and maintenance, pest control, and security;

(b) The gross income received for motor vehicle washing, waxing, towing, and painting;

(c) The gross income received for computer software training;

(d) The gross income received for installing and applying tangible personal property if the sale of the property is subject to tax. If any or all of the charge for installation is free to the customer and is paid by a third-party service provider to the installer, any tax due on that part of the activation commission, finder's fee, installation charge, or similar payment made by the third-party service provider shall be paid and remitted by the third-party service provider;

(e) The gross income received for services of recreational vehicle parks;

(f) The gross income received for labor for repair or maintenance services performed with regard to tangible personal property the sale of which would be subject to sales and use taxes, excluding motor vehicles, except as otherwise provided in section 77-2704.26 or 77-2704.50;

(g) The gross income received for animal specialty services except (i) veterinary services, (ii) specialty services performed on livestock as defined in section 54-183, and (iii) animal grooming performed by a licensed veterinarian or a licensed veterinary technician in conjunction with medical treatment; and

(h) The gross income received for detective services.

(5) Gross receipts includes the sale of admissions. When an admission to an activity or a membership constituting an admission is combined with the solicitation of a contribution, the portion or the amount charged representing the fair market price of the admission shall be considered a retail sale subject to the tax imposed by section 77-2703. The organization conducting the activity shall determine the amount properly attributable to the purchase of the privilege, benefit, or other consideration in advance, and such amount shall be clearly indicated on any ticket, receipt, or other evidence issued in connection with the payment.

(6) Gross receipts includes the sale of live plants incorporated into real estate except when such incorporation is incidental to the transfer of an improvement upon real estate or the real estate.

(7) Gross receipts includes the sale of any building materials annexed to real estate by a person electing to be taxed as a retailer pursuant to subdivision (1) of section 77-2701.10.

(8) Gross receipts includes the sale of and recharge of prepaid calling service and prepaid wireless calling service.

(9) Gross receipts includes the retail sale of digital audio works, digital audiovisual works, digital codes, and digital books delivered electronically if the products are taxable when delivered on tangible storage media. A sale includes the transfer of a permanent right of use, the transfer of a right of use that terminates on some condition, and the transfer of a right of use conditioned upon the receipt of continued payments.

(10) Gross receipts includes any receipts from sales of tangible personal property made over a multivendor marketplace platform that acts as the intermediary by facilitating sales between a seller and the purchaser and that, either directly or indirectly through agreements or arrangements with third parties, collects payment from the purchaser and transmits payment to the seller.

(11) Gross receipts does not include:

(a) The amount of any rebate granted by a motor vehicle or motorboat manufacturer or dealer at the time of sale of the motor vehicle or motorboat, which rebate functions as a discount from the sales price of the motor vehicle or motorboat; or

(b) The price of property or services returned or rejected by customers when the full sales price is refunded either in cash or credit.

Source:Laws 1992, LB 871, § 8;    Laws 1993, LB 345, § 18;    Laws 1994, LB 123, § 21;    Laws 1994, LB 901, § 2;    Laws 1994, LB 977, § 1;    Laws 1994, LB 1087, § 1;    Laws 1996, LB 106, § 3;    Laws 1999, LB 214, § 1;    Laws 2002, LB 947, § 4;    Laws 2002, LB 1085, § 3;    R.S.Supp.,2002, § 77-2702.07; Laws 2003, LB 282, § 20;    Laws 2003, LB 759, § 8;    Laws 2004, LB 1017, § 7;    Laws 2005, LB 216, § 4;    Laws 2005, LB 753, § 1;    Laws 2007, LB367, § 13;    Laws 2008, LB916, § 7;    Laws 2009, LB165, § 5;    Laws 2009, LB 587, § 1;    Laws 2012, LB727, § 38;    Laws 2013, LB90, § 1;    Laws 2019, LB218, § 3;    Laws 2019, LB284, § 2;    Laws 2020, LB923, § 1;    Laws 2021, LB595, § 4.    


Annotations

77-2701.17. In this state or within the state, defined.

In this state or within the state means within the exterior limits of the State of Nebraska and includes all the territory within these limits owned by or ceded to the United States of America.

Source:Laws 1992, LB 871, § 9;    R.S.1943, (1996), § 77-2702.08; Laws 2003, LB 282, § 21.    


77-2701.18. Lease or rental, defined.

(1) Lease or rental means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.

(2) Lease or rental does not include:

(a) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;

(b) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of one hundred dollars or one percent of the total required payments; or

(c) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For purposes of this subsection, an operator must do more than maintain, inspect, or set up the tangible personal property.

(3) Lease includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined for federal income tax purposes.

(4) This definition shall be used for sales and use tax purposes regardless if a transaction is characterized as a lease or rental under generally accepted accounting principles, the Internal Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law.

(5) This definition shall be applied only prospectively from January 1, 2004, and shall have no retroactive impact on existing leases or rentals.

Source:Laws 2003, LB 282, § 22.    


77-2701.19. Maintenance agreement, defined.

(1) Maintenance agreement means any contract or agreement to provide or pay for the maintenance, repair, or refurbishing of an item, the sale of which is subject to tax under section 77-2703, for a stated period of time or interval of use. Maintenance agreement includes any such agreement whether or not the agreement requires additional payments for some or all of the parts or services provided under the agreement. Maintenance agreement includes contracts or agreements designated as warranties, extended warranties, guarantees, service agreements, maintenance agreements, or any similar term.

(2) Maintenance agreement does not include any contract or agreement subject to the premium tax under Chapter 77, article 9, from a service contract business operating with a certificate of authority from the Department of Insurance.

(3) The selling price of a maintenance agreement shall not have to be separately stated and may be included as a part of the selling price of the item covered.

Source:Laws 1993, LB 345, § 31;    R.S.1943, (1996), § 77-2702.25; Laws 2003, LB 282, § 23.    


77-2701.20. Member states, defined.

Member states means any and all states that have been approved initially or later admitted by the governing board for participation in the streamlined sales and use tax agreement.

Source:Laws 2003, LB 282, § 24.    


77-2701.21. Model 1 seller, defined.

Model 1 seller means a seller that has selected a certified service provider as its agent to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own retail purchases.

Source:Laws 2003, LB 282, § 25.    


77-2701.22. Model 2 seller, defined.

Model 2 seller means a seller that has selected a certified automated system to perform part of its sales and use tax functions but retains responsibility for remitting the tax.

Source:Laws 2003, LB 282, § 26.    


77-2701.23. Model 3 seller, defined.

Model 3 seller means a seller that has sales in at least five member states, has total annual sales revenue of at least five hundred million dollars, has a proprietary system that calculates the amount of tax due each jurisdiction, and has entered into a performance agreement with the member states that establishes a tax performance standard for the seller. Seller includes an affiliated group of sellers using the same proprietary system.

Source:Laws 2003, LB 282, § 27.    


77-2701.24. Occasional sale, defined.

Occasional sale means:

(1) A sale, but not a lease or rental, of property which is the subject of any intercompany sale or transfer involving any parent, subsidiary, or brother-sister company relationship under section 77-2704.28 and which was either originally acquired prior to June 1, 1967, or, if acquired thereafter, the seller or transferor directly or indirectly has previously paid a sales or use tax thereon, including:

(a) From one corporation to another corporation pursuant to a reorganization. For purposes of this subdivision, reorganization means a statutory merger or consolidation or the acquisition by a corporation of substantially all of the properties of another corporation when the consideration is solely all or a part of the voting stock of the acquiring corporation or of its parent or subsidiary corporation;

(b) In connection with the winding up, dissolution, or liquidation of a corporation only when there is a distribution of the property of such corporation to the shareholders in kind if the portion of the property so distributed to the shareholder is substantially in proportion to the share of stock or securities held by the shareholder;

(c) To a corporation for the purpose of organization of such corporation or the contribution of additional capital to such corporation when the former owners of the property transferred are immediately after the transfer in control of the corporation and the stock or securities received by each is substantially in proportion to his or her interest in the property prior to the transfer;

(d) To a partnership in the organization of such partnership if the former owners of the property transferred are immediately after the transfer members of such partnership and the interest in the partnership received by each is substantially in proportion to his or her interest in the property prior to the transfer;

(e) From a partnership to the members thereof when made in kind in the dissolution of such partnership if the portion of the property so distributed to the members of the partnership is substantially in proportion to the interest in the partnership held by the members;

(f) To a limited liability company in the organization of such limited liability company if the former owners of the property transferred are immediately after the transfer members of such limited liability company and the interest in the limited liability company received by each is substantially in proportion to his or her interest in the property prior to the transfer;

(g) From a limited liability company to the members thereof when made in kind in the dissolution of such limited liability company if the portion of the property so distributed to the members of the limited liability company is substantially in proportion to the interest in the limited liability company held by the members;

(h) From one limited liability company to another limited liability company pursuant to a reorganization; or

(i) Any transaction between two persons that qualifies as a tax-free transaction under the Internal Revenue Code;

(2) A sale of household goods, personal effects, and services if each of the following conditions is met and if any one condition is not met then the entire gross receipts shall be subject to the tax imposed by section 77-2703:

(a) Such sales are by an individual at his or her residence or if more than one individual's property is involved such sales are by one of the individuals involved at the residence of one of the individuals or such sales are by an individual on an online auction site;

(b) Such sales do not occur at any residence or on an online auction site for more than three days during a calendar year;

(c) Such individual or individuals or any member of any of their households does not conduct or engage in a trade or business in which similar items are sold or services provided;

(d) Such property sold was originally acquired for and used for personal use or the service provided may be performed at any individual residence without specialized equipment or supplies; and

(e) Such property is not otherwise excepted from the definition of occasional sale;

(3) Commencing with any transaction occurring on or after October 1, 1985, any sale of business or farm machinery and equipment if each of the following conditions is met and if any one condition is not met the entire gross receipts shall be subject to the tax imposed by section 77-2703:

(a) Such machinery or equipment was used by the seller or seller's predecessor in a sale described in subdivision (1) of this section as a depreciable capital asset in connection with the farm or business for a period of at least one year;

(b) Such property was originally acquired prior to June 1, 1967, or if acquired thereafter, the seller or seller's predecessor in a sale described in subdivision (1) of this section directly or indirectly has previously paid a sales or use tax thereon; and

(c) Such property is not otherwise excepted from the definition of occasional sale;

(4) Commencing October 1, 1985, a sale by an organization created exclusively for religious purposes or an agent of the organization for such sale if each of the following conditions is met and if any one condition is not met then the entire gross receipts shall be subject to the tax imposed by section 77-2703:

(a) All sales occur during an activity conducted by such organization or, if more than one organization is involved, by one of the organizations owning property being sold;

(b) The organization only sells property it owns or provides the service during one such activity in a calendar year; and

(c) The activity does not last longer than three consecutive days; and

(5) Any sale that is made in connection with the sale to a single buyer of all or substantially all of a trade or business if the seller or seller's predecessor in a sale described in subdivision (1) of this section directly or indirectly has previously paid a sales or use tax thereon. This subdivision shall apply to any transaction occurring on or after October 1, 1985.

Commencing October 1, 1985, occasional sale does not include any sale directly by or any sale which is supervised or aided by an auctioneer or an agent or employee of an auctioneer.

Except for a sale listed in subdivision (1) of this section, an occasional sale does not mean any sale of motor vehicles, semitrailers, or trailers as defined in the Motor Vehicle Registration Act or any sale of a motorboat as defined in section 37-1204.

Source:Laws 1992, LB 871, § 10;    Laws 1993, LB 121, § 500;    Laws 1993, LB 345, § 19;    Laws 1994, LB 123, § 22;    Laws 1995, LB 574, § 73;    Laws 2002, LB 1085, § 4;    R.S.Supp.,2002, § 77-2702.09; Laws 2003, LB 282, § 28;    Laws 2005, LB 274, § 273;    Laws 2009, LB165, § 6.    


Cross References

77-2701.25. Person, defined.

Person means any individual, firm, partnership, limited liability company, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee, or other group or combination acting as a unit. Person also means the United States or any agency of the United States, this state or any agency of this state, or any city, county, district, or other political subdivision of this state or any agency thereof.

Source:Laws 1992, LB 871, § 11;    Laws 1993, LB 8, § 1;    Laws 1993, LB 121, § 501;    R.S.1943, (1996), § 77-2702.10; Laws 2003, LB 282, § 29.    


77-2701.26. Product-based exemption, defined.

Product-based exemption means an exemption based on the description of the product that is the subject of the transaction and not based on the identity of the person purchasing or selling the product or the ultimate use of the product.

Source:Laws 2003, LB 282, § 30.    


77-2701.27. Property, defined.

Property means all tangible and intangible property that is subject to tax under subsection (1) of section 77-2703 and all rights, licenses, and franchises that are subject to tax under such subsection. To facilitate the proper administration of the Nebraska Revenue Act of 1967, unless the context clearly requires otherwise, the term property shall be construed to include all services subject to tax.

Source:Laws 1993, LB 345, § 32;    R.S.1943, (1996), § 77-2702.26; Laws 2003, LB 282, § 31;    Laws 2005, LB 216, § 5.    


77-2701.28. Purchase, defined.

Purchase means any transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means, of property for a consideration, including a transfer of the possession of property in which the seller retains the title as security for the payment of the price and a transfer for a consideration of property which has been produced, fabricated, or printed to the special order of the customer. Purchase also means the provision of a service for a consideration.

Source:Laws 1992, LB 871, § 12;    Laws 1993, LB 345, § 20;    Laws 2002, LB 1085, § 5;    R.S.Supp.,2002, § 77-2702.11; Laws 2003, LB 282, § 32.    


77-2701.29. Purchase price, defined.

Purchase price applies to the measure subject to use tax and has the same meaning as sales price.

Source:Laws 2003, LB 282, § 33.    


77-2701.30. Purchaser, defined.

Purchaser means a person to whom a sale of personal property is made or to whom a service is furnished.

Source:Laws 2003, LB 282, § 34.    


77-2701.31. Retail sale or sale at retail, defined.

Retail sale or sale at retail means any sale, lease, or rental for any purpose other than for resale, sublease, or subrent.

Source:Laws 2003, LB 282, § 35.    


Annotations

77-2701.32. Retailer, defined.

(1) Retailer means any seller.

(2) To facilitate the proper administration of the Nebraska Revenue Act of 1967, the following persons have the duties and responsibilities of sellers for the purposes of sales and use taxes:

(a) Any person in the business of making sales subject to tax under section 77-2703 at auction of property owned by the person or others;

(b) Any person collecting the proceeds of the auction, other than the owner of the property, together with his or her principal, if any, when the person collecting the proceeds of the auction is not the auctioneer or an agent or employee of the auctioneer. The seller does not include the auctioneer in such case;

(c) Every person who has elected to be considered a retailer pursuant to subdivision (1) of section 77-2701.10;

(d) Every person operating, organizing, or promoting a flea market, craft show, fair, or similar event;

(e) Every person engaged in the business of providing any service defined in subsection (4) of section 77-2701.16; and

(f) Every person operating a multivendor marketplace platform that (i) acts as the intermediary by facilitating sales between a seller and the purchaser or that engages directly or indirectly through one or more affiliated persons in transmitting or otherwise communicating the offer or acceptance between the seller and purchaser and (ii) either directly or indirectly through agreements or arrangements with third parties, collects payment from the purchaser and transmits payment to the seller.

(3) For the proper administration of the Nebraska Revenue Act of 1967, the following persons do not have the duties and responsibilities of a seller for purposes of sales and use taxes:

(a) Any person who leases or rents films when an admission tax is charged under the Nebraska Revenue Act of 1967;

(b) Any person who leases or rents railroad rolling stock interchanged pursuant to the provisions of the federal Interstate Commerce Act;

(c) Any person engaged in the business of furnishing rooms in a facility licensed under the Health Care Facility Licensure Act in which rooms, lodgings, or accommodations are regularly furnished for a consideration or a facility operated by an educational institution established under Chapter 79 or Chapter 85 in which rooms are regularly used to house students for a consideration for periods in excess of thirty days;

(d) Any person making sales at a flea market, craft show, fair, or similar event when such person does not have a sales tax permit and has arranged to pay sales taxes collected to the person operating, organizing, or promoting such event; or

(e) Any payment processor appointed by a retailer whose sole activity with regard to a sale or lease transaction is to process the payment made from the customer to the retailer.

Source:Laws 1992, LB 871, § 15;    Laws 1993, LB 345, § 23;    Laws 2000, LB 819, § 149;    Laws 2002, LB 1085, § 7;    R.S.Supp.,2002, § 77-2702.14; Laws 2003, LB 282, § 36;    Laws 2003, LB 759, § 10;    Laws 2008, LB916, § 8;    Laws 2019, LB284, § 3.    


Cross References

77-2701.33. Sale, defined.

Sale means any transfer of title or possession or segregation in contemplation of transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means, of property for a consideration or the provision of service for a consideration. Sale includes, but is not limited to:

(1) The producing, fabricating, processing, printing, or imprinting of property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting; and

(2) The renting or furnishing for periods of less than thirty days of any room or rooms, lodgings, or accommodations in any hotel, motel, inn, tourist camp, tourist cabin, or any other place, except a health care facility licensed under the Health Care Facility Licensure Act in which rooms, lodgings, or accommodations are regularly furnished for a consideration or a facility operated by an educational institution established under Chapter 79 or Chapter 85 in which rooms are regularly used to house students for a consideration for periods in excess of thirty days.

Source:Laws 1992, LB 871, § 16;    Laws 1993, LB 8, § 2;    Laws 1993, LB 345, § 24;    Laws 2000, LB 819, § 150;    Laws 2002, LB 1085, § 8;    R.S.Supp.,2002, § 77-2702.15; Laws 2003, LB 282, § 37.    


Cross References

77-2701.34. Sale for resale, defined.

Sale for resale means a sale of property or provision of a service to any purchaser who is purchasing such property or service for the purpose of reselling it in the normal course of his or her business, either in the form or condition in which it is purchased or as an attachment to or integral part of other property or service. A sale for resale includes (1) a sale of building materials to a contractor or repairperson electing to be taxed as a retailer under subdivision (1) of section 77-2701.10 or a sale of building materials to a contractor or repairperson being taxed as the consumer of building materials and electing a tax-free inventory under subdivision (3) of section 77-2701.10, (2) a sale of property to a purchaser for the sole purpose of that purchaser renting or leasing such property to another person, with rent or lease payments set at a fair market value, (3) film rentals for use in a place where an admission is charged that is subject to tax under the Nebraska Revenue Act of 1967 but not if incidental to the renting or leasing of real estate, or (4) a sale of digital products, community antenna television services, Internet services, and satellite services to a person who receives by contract the product or service transferred electronically for further broadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the product or service for use in a place where an admission is charged that is subject to sales tax under the Nebraska Revenue Act of 1967.

Source:Laws 1992, LB 871, § 17;    Laws 1993, LB 345, § 25;    Laws 2002, LB 1085, § 9;    R.S.Supp.,2002, § 77-2702.16; Laws 2003, LB 282, § 38;    Laws 2004, LB 1017, § 8;    Laws 2007, LB367, § 14;    Laws 2008, LB916, § 14.    


Annotations

77-2701.35. Sales price, defined.

(1) Sales price applies to the measure subject to sales tax and means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:

(a) The seller's cost of the property sold;

(b) The cost of materials used, the cost of labor or service, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;

(c) Charges by the seller for any services necessary to complete the sale;

(d) Delivery charges; and

(e) Installation charges.

(2) Sales price includes consideration received by the seller from third parties if:

(a) The seller actually receives consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;

(b) The seller has an obligation to pass the price reduction or discount through to the purchaser;

(c) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and

(d) One of the following criteria is met:

(i) The purchaser presents a coupon, certificate, or other documentation to the seller to claim a price reduction or discount when the coupon, certificate, or documentation is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate, or documentation is presented;

(ii) The purchaser identifies himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount. A preferred customer card that is available to any patron does not constitute membership in such a group; or

(iii) The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate, or other documentation presented by the purchaser.

(3) Sales price does not include:

(a) Any discounts, including cash, terms, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale;

(b) Interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser;

(c) Any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale, or similar document given to the purchaser;

(d) United States postage charges on direct mail that are separately stated on the invoice, bill of sale, or similar document given to the purchaser; and

(e) Credit for any trade-in as follows:

(i) The value of property taken by a seller in trade as all or a part of the consideration for a sale of property of any kind or nature; or

(ii) The value of a motor vehicle, motorboat, all-terrain vehicle, or utility-type vehicle taken by any person in trade as all or a part of the consideration for a sale of another motor vehicle, motorboat, all-terrain vehicle, or utility-type vehicle.

Source:Laws 2003, LB 282, § 39;    Laws 2007, LB223, § 6;    Laws 2014, LB814, § 8;    Laws 2014, LB867, § 11.    


Annotations

77-2701.36. Seller, defined.

Seller includes every person engaged in the business of selling, leasing, or renting property of a kind the gross receipts from the retail sale, lease, or rental of which are required to be included in the measure of the sales tax.

Source:Laws 1992, LB 871, § 19;    Laws 1993, LB 345, § 27;    R.S.1943, (1996), § 77-2702.18; Laws 2003, LB 282, § 40.    


77-2701.37. Storage, defined.

Storage includes any retention in this state for any purposes except sale in the regular course of business or subsequent use solely outside this state of property purchased from a retailer, other than property which will enter into or become an ingredient or component part of property manufactured, processed, or fabricated for ultimate sale at retail.

Source:Laws 1992, LB 871, § 20;    Laws 1993, LB 345, § 28;    R.S.1943, (1996), § 77-2702.19; Laws 2003, LB 282, § 41.    


Annotations

77-2701.38. Streamlined sales and use tax agreement, defined.

Streamlined sales and use tax agreement means the streamlined sales and use tax agreement approved by the implementing states on November 12, 2002, including amendments ratified by the Legislature pursuant to section 77-2712.03.

Source:Laws 2003, LB 282, § 42;    Laws 2010, LB879, § 8.    


77-2701.39. Tangible personal property, defined.

Tangible personal property means personal property which may be seen, weighed, measured, felt, or touched or which is in any other manner perceptible to the senses. Tangible personal property includes electricity, water, gas, steam, and prewritten computer software.

Source:Laws 1992, LB 871, § 21;    R.S.1943, (1996), § 77-2702.20; Laws 2003, LB 282, § 43.    


77-2701.40. Tax Commissioner, defined.

Tax Commissioner means the Tax Commissioner of the State of Nebraska.

Source:Laws 1992, LB 871, § 22;    R.S.1943, (1996), § 77-2702.21; Laws 2003, LB 282, § 44.    


77-2701.41. Taxpayer, defined.

Taxpayer means any person subject to a tax imposed by sections 77-2701 to 77-2713.

Source:Laws 1992, LB 871, § 23;    R.S.1943, (1996), § 77-2702.22; Laws 2003, LB 282, § 45;    Laws 2021, LB26, § 3;    Laws 2021, LB595, § 5;    Laws 2022, LB984, § 3;    Laws 2023, LB727, § 61.    
Operative Date: June 7, 2023


77-2701.42. Use, defined.

Use means the exercise of any right or power over property incident to the ownership or possession of that property, except that use does not include the sale of that property in the regular course of business or the exercise of any right or power over property which will enter into or become an ingredient or component part of property manufactured, processed, or fabricated for ultimate sale at retail. Use specifically includes the annexation of building materials to real estate or the withdrawal of property or building materials from inventory, which inventory is subject to sales tax under the Nebraska Revenue Act of 1967 or would be subject to the sales tax under the act except for an election under section 77-2701.10, for annexation to real estate or to improvements upon real estate without regard to the fact that such building materials are manufactured, processed, or fabricated prior to annexation or that such real estate and improvements may subsequently be sold as such.

Source:Laws 1992, LB 871, § 24;    Laws 1993, LB 345, § 30;    R.S.1943, (1996), § 77-2702.23; Laws 2003, LB 282, § 46;    Laws 2004, LB 1017, § 9.    


Annotations

77-2701.43. Use-based exemption, defined.

Use-based exemption means an exemption based on a specified use of the product by the purchaser.

Source:Laws 2003, LB 282, § 47;    Laws 2006, LB 887, § 3.    


77-2701.44. Building materials, defined.

Building materials means any property that will be annexed to real estate or to an improvement on real estate. Building materials does not include tools, supplies, or property that will not be annexed.

Source:Laws 2004, LB 1017, § 4.    


77-2701.45. Repealed. Laws 2007, LB 367, § 31.

77-2701.46. Manufacturing, defined.

Manufacturing means an action or series of actions performed upon tangible personal property, either by hand or machine, which results in that tangible personal property being reduced or transformed into a different state, quality, form, property, or thing. Manufacturing does not include retail operations, the generation or transmission of electricity, the production or transmission of information, programming, or data, the preparation of food for immediate consumption, or the purification or transportation of water.

Source:Laws 2005, LB 312, § 8.    


Annotations

77-2701.47. Manufacturing machinery and equipment, defined.

(1) Manufacturing machinery and equipment means any machinery or equipment purchased, leased, or rented by a person engaged in the business of manufacturing for use in manufacturing, including, but not limited to:

(a) Machinery or equipment for use in manufacturing to produce, fabricate, assemble, process, finish, refine, or package tangible personal property;

(b) Machinery or equipment for use in transporting, conveying, handling, or storing by the manufacturer the raw materials or components to be used in manufacturing or the products produced by the manufacturer;

(c) Molds and dies and the materials necessary to create molds and dies for use in manufacturing that determine the physical characteristics of the finished product or its packaging material, whether or not such molds or dies are permanent or temporary in nature, and including any chemicals, solutions, or catalysts utilized in the mold or die process even if such items are consumed during the course of the mold or die process;

(d) Machinery or equipment for use in manufacturing to maintain the integrity of the product or to maintain unique environmental conditions required for either the product or the machinery and equipment used in manufacturing by a manufacturer;

(e) Testing equipment for use in manufacturing to measure the quality of the finished product;

(f) Computers, software, and related peripheral equipment for use in manufacturing to guide, control, operate, or measure the manufacturing process;

(g) Machinery or equipment for use in manufacturing to produce steam, electricity, or chemical catalysts and solutions that are essential to the manufacturing process even if such produced items are consumed during the course of the manufacturing process or do not become necessary or integral parts of the finished product; and

(h) A repair or replacement part or accessory purchased for use in maintaining, repairing, or refurbishing machinery and equipment used in manufacturing.

(2) Manufacturing machinery and equipment does not include: Vehicles required to be registered for operation on the roads and highways of this state; hand tools; office equipment; and computers, software, and related peripheral equipment not used in guiding, controlling, operating, or measuring of the manufacturing process. Machinery or equipment does not need to come into direct physical contact with any of the raw materials, components, or products that are part of the manufacturing process to be considered manufacturing machinery or equipment.

Source:Laws 2005, LB 312, § 9;    Laws 2006, LB 1189, § 4.    


Annotations

77-2701.48. Bundled transaction, defined.

(1) Bundled transaction means the retail sale of two or more products, except real property and services to real property, when (a) the products are otherwise distinct and identifiable and (b) the products are sold for one non-itemized price. Bundled transaction does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.

(2) Distinct and identifiable products do not include:

(a) Packaging, such as containers, boxes, sacks, bags, and bottles or other materials such as wrapping, labels, tags, and instruction guides that accompany the retail sale of the products and are incidental or immaterial to the retail sale thereof. Examples of packaging that are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and express delivery envelopes and boxes;

(b) A product provided free of charge with the required purchase of another product. A product is provided free of charge if the sales price of the product purchased does not vary depending on the inclusion of the product provided free of charge; and

(c) Items included in the definition of sales price pursuant to section 77-2701.35.

(3) One non-itemized price does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form, including, but not limited to, an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list.

(4) A transaction that otherwise meets the definition of a bundled transaction is not a bundled transaction if it is (a) the retail sale of tangible personal property and a service where the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service, (b) the retail sale of services when one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service, or (c) a transaction that includes taxable products and nontaxable products and the purchase price or sales price of the taxable products is de minimus. De minimus means the seller's purchase price or sales price of the taxable products is ten percent or less of the total purchase price or sales price of the bundled products. Sellers shall use either the purchase price or the sales price of the products to determine if the taxable products are de minimus. Sellers may not use a combination of the purchase price and sales price of the products to determine if the taxable products are de minimus. Sellers shall use the full term of a service contract to determine if the taxable products are de minimus.

(5) Bundled transaction does not include the retail sale of exempt tangible personal property and taxable tangible personal property if (a) the transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, or medical supplies and (b) the seller's purchase price or sales price of the taxable tangible personal property is fifty percent or less of the total purchase price or sales price of the bundled tangible personal property. Sellers may not use a combination of the purchase price and sales price of the tangible personal property when making the fifty-percent determination for a transaction.

Source:Laws 2007, LB223, § 5.    


77-2701.49. Delivered electronically, defined.

Delivered electronically means obtained by the purchaser by means other than tangible storage media.

Source:Laws 2008, LB916, § 9.    


77-2701.50. Digital audio works, defined.

Digital audio works means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones.

Source:Laws 2008, LB916, § 10.    


77-2701.51. Digital audiovisual works, defined.

Digital audiovisual works means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.

Source:Laws 2008, LB916, § 11.    


77-2701.52. Digital books, defined.

Digital books means works that are generally recognized in the ordinary and usual sense as books.

Source:Laws 2008, LB916, § 12.    


77-2701.53. Digital code, defined.

Digital code means a code which provides a purchaser with a right to obtain one or more products delivered electronically. A digital code may be obtained by any means, including email or tangible means.

Source:Laws 2008, LB916, § 13.    


77-2701.54. Data center, defined.

Data center means computers, supporting equipment, and other organized assembly of hardware or software that are designed to centralize the storage, management, or dissemination of data and information, environmentally controlled structures or facilities or interrelated structures or facilities that provide the infrastructure for housing the equipment, such as raised flooring, electricity supply, communication and data lines, Internet access, cooling, security, and fire suppression, and any building housing the foregoing.

Source:Laws 2012, LB1080, § 4.    


77-2701.55. Admission, defined.

(1) Admission means the right or privilege to have access to a place or location where amusement, entertainment, or recreation is provided to an audience, spectators, or the participants in the activity. Admission includes a membership that allows access to or use of a place or location, but which membership does not include the right to hold office, vote, or change the policies of the organization.

(2) For purposes of this section:

(a) Access to a place or location means the right to be in the place or location for purposes of amusement, entertainment, or recreation at a time when the general public is not allowed at that place or location absent the granting of the admission;

(b) Entertainment means the amusement or diversion provided to an audience or spectators by performers; and

(c) Recreation means a sport or activity engaged in by participants for purposes of refreshment, relaxation, or diversion of the participants. Recreation does not include practice or instruction.

(3) Admission does not include the lease or rental of a location, facility, or part of a location or facility if the lessor cedes the right to determine who is granted access to the location or facility to the lessee for the period of the lease or rental.

Source:Laws 2012, LB727, § 36.    


77-2701.56. Buyer-based exemption, defined.

Buyer-based exemption means an exemption based on who purchases the product. An exemption that is available to all individuals shall not be considered a buyer-based exemption.

Source:Laws 2023, LB727, § 62.    
Operative Date: June 7, 2023


77-2702. Repealed. Laws 1992, LB 871, § 65.

77-2702.01. Repealed. Laws 1992, LB 871, § 65.

77-2702.02. Repealed. Laws 1992, LB 871, § 65.

77-2702.03. Transferred to section 77-2701.04.

77-2702.04. Transferred to section 77-2701.07.

77-2702.05. Transferred to section 77-2701.10.

77-2702.06. Transferred to section 77-2701.13.

77-2702.07. Transferred to section 77-2701.16.

77-2702.08. Transferred to section 77-2701.17.

77-2702.09. Transferred to section 77-2701.24.

77-2702.10. Transferred to section 77-2701.25.

77-2702.11. Transferred to section 77-2701.28.

77-2702.12. Repealed. Laws 2003, LB 282, § 87.

77-2702.13. Repealed. Laws 2003, LB 282, § 87.

77-2702.14. Transferred to section 77-2701.32.

77-2702.15. Transferred to section 77-2701.33.

77-2702.16. Transferred to section 77-2701.34.

77-2702.17. Repealed. Laws 2003, LB 282, § 87.

77-2702.18. Transferred to section 77-2701.36.

77-2702.19. Transferred to section 77-2701.37.

77-2702.20. Transferred to section 77-2701.39.

77-2702.21. Transferred to section 77-2701.40.

77-2702.22. Transferred to section 77-2701.41.

77-2702.23. Transferred to section 77-2701.42.

77-2702.24. Transferred to section 77-2701.06.

77-2702.25. Transferred to section 77-2701.19.

77-2702.26. Transferred to section 77-2701.27.

77-2703. Sales and use tax; rate; collection; collection fee; understatement; prohibited acts; violation; penalty; interest.

(1) There is hereby imposed a tax at the rate provided in section 77-2701.02 upon the gross receipts from all sales of tangible personal property sold at retail in this state; the gross receipts of every person engaged as a public utility, as a community antenna television service operator, or as a satellite service operator, any person involved in the connecting and installing of the services defined in subdivision (2)(a), (b), (d), or (e) of section 77-2701.16, or every person engaged as a retailer of intellectual or entertainment properties referred to in subsection (3) of section 77-2701.16; the gross receipts from the sale of admissions in this state; the gross receipts from the sale of warranties, guarantees, service agreements, or maintenance agreements when the items covered are subject to tax under this section; beginning January 1, 2008, the gross receipts from the sale of bundled transactions when one or more of the products included in the bundle are taxable; the gross receipts from the provision of services defined in subsection (4) of section 77-2701.16; and the gross receipts from the sale of products delivered electronically as described in subsection (9) of section 77-2701.16. Except as provided in section 77-2701.03, when there is a sale, the tax shall be imposed at the rate in effect at the time the gross receipts are realized under the accounting basis used by the retailer to maintain his or her books and records.

(a) The tax imposed by this section shall be collected by the retailer from the consumer. It shall constitute a part of the purchase price and until collected shall be a debt from the consumer to the retailer and shall be recoverable at law in the same manner as other debts. The tax required to be collected by the retailer from the consumer constitutes a debt owed by the retailer to this state.

(b) It is unlawful for any retailer to advertise, hold out, or state to the public or to any customer, directly or indirectly, that the tax or part thereof will be assumed or absorbed by the retailer, that it will not be added to the selling, renting, or leasing price of the property sold, rented, or leased, or that, if added, it or any part thereof will be refunded. The provisions of this subdivision shall not apply to a public utility.

(c) The tax required to be collected by the retailer from the purchaser, unless otherwise provided by statute or by rule and regulation of the Tax Commissioner, shall be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check or other proof of sales, rentals, or leases.

(d) For the purpose of more efficiently securing the payment, collection, and accounting for the sales tax and for the convenience of the retailer in collecting the sales tax, it shall be the duty of the Tax Commissioner to provide a schedule or schedules of the amounts to be collected from the consumer or user to effectuate the computation and collection of the tax imposed by the Nebraska Revenue Act of 1967. Such schedule or schedules shall provide that the tax shall be collected from the consumer or user uniformly on sales according to brackets based on sales prices of the item or items. Retailers may compute the tax due on any transaction on an item or an invoice basis. The rounding rule provided in section 77-3,117 applies.

(e) The use of tokens or stamps for the purpose of collecting or enforcing the collection of the taxes imposed in the Nebraska Revenue Act of 1967 or for any other purpose in connection with such taxes is prohibited.

(f) For the purpose of the proper administration of the provisions of the Nebraska Revenue Act of 1967 and to prevent evasion of the retail sales tax, it shall be presumed that all gross receipts are subject to the tax until the contrary is established. The burden of proving that a sale of property is not a sale at retail is upon the person who makes the sale unless he or she takes from the purchaser (i) a resale certificate to the effect that the property is purchased for the purpose of reselling, leasing, or renting it, (ii) an exemption certificate pursuant to subsection (7) of section 77-2705, or (iii) a direct payment permit pursuant to sections 77-2705.01 to 77-2705.03. Receipt of a resale certificate, exemption certificate, or direct payment permit shall be conclusive proof for the seller that the sale was made for resale or was exempt or that the tax will be paid directly to the state.

(g) In the rental or lease of automobiles, trucks, trailers, semitrailers, and truck-tractors as defined in the Motor Vehicle Registration Act, the tax shall be collected by the lessor on the rental or lease price, except as otherwise provided within this section.

(h) In the rental or lease of automobiles, trucks, trailers, semitrailers, and truck-tractors as defined in the act, for periods of one year or more, the lessor may elect not to collect and remit the sales tax on the gross receipts and instead pay a sales tax on the cost of such vehicle. If such election is made, it shall be made pursuant to the following conditions:

(i) Notice of the desire to make such election shall be filed with the Tax Commissioner and shall not become effective until the Tax Commissioner is satisfied that the taxpayer has complied with all conditions of this subsection and all rules and regulations of the Tax Commissioner;

(ii) Such election when made shall continue in force and effect for a period of not less than two years and thereafter until such time as the lessor elects to terminate the election;

(iii) When such election is made, it shall apply to all vehicles of the lessor rented or leased for periods of one year or more except vehicles to be leased to common or contract carriers who provide to the lessor a valid common or contract carrier exemption certificate. If the lessor rents or leases other vehicles for periods of less than one year, such lessor shall maintain his or her books and records and his or her accounting procedure as the Tax Commissioner prescribes; and

(iv) The Tax Commissioner by rule and regulation shall prescribe the contents and form of the notice of election, a procedure for the determination of the tax base of vehicles which are under an existing lease at the time such election becomes effective, the method and manner for terminating such election, and such other rules and regulations as may be necessary for the proper administration of this subdivision.

(i) The tax imposed by this section on the sales of motor vehicles, semitrailers, and trailers as defined in sections 60-339, 60-348, and 60-354 shall be the liability of the purchaser and, with the exception of motor vehicles, semitrailers, and trailers registered pursuant to section 60-3,198, the tax shall be collected by the county treasurer as provided in the Motor Vehicle Registration Act or by an approved licensed dealer participating in the electronic dealer services system pursuant to section 60-1507 at the time the purchaser makes application for the registration of the motor vehicle, semitrailer, or trailer for operation upon the highways of this state. The tax imposed by this section on motor vehicles, semitrailers, and trailers registered pursuant to section 60-3,198 shall be collected by the Department of Motor Vehicles at the time the purchaser makes application for the registration of the motor vehicle, semitrailer, or trailer for operation upon the highways of this state. At the time of the sale of any motor vehicle, semitrailer, or trailer, the seller shall (i) state on the sales invoice the dollar amount of the tax imposed under this section and (ii) furnish to the purchaser a certified statement of the transaction, in such form as the Tax Commissioner prescribes, setting forth as a minimum the total sales price, the allowance for any trade-in, and the difference between the two. The sales tax due shall be computed on the difference between the total sales price and the allowance for any trade-in as disclosed by such certified statement. Any seller who willfully understates the amount upon which the sales tax is due shall be subject to a penalty of one thousand dollars. A copy of such certified statement shall also be furnished to the Tax Commissioner. Any seller who fails or refuses to furnish such certified statement shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine of not less than twenty-five dollars nor more than one hundred dollars. If the purchaser does not register such motor vehicle, semitrailer, or trailer for operation on the highways of this state within thirty days of the purchase thereof, the tax imposed by this section shall immediately thereafter be paid by the purchaser to the county treasurer or the Department of Motor Vehicles. If the tax is not paid on or before the thirtieth day after its purchase, the county treasurer or Department of Motor Vehicles shall also collect from the purchaser interest from the thirtieth day through the date of payment and sales tax penalties as provided in the Nebraska Revenue Act of 1967. The county treasurer or Department of Motor Vehicles shall report and remit the tax so collected to the Tax Commissioner by the fifteenth day of the following month. The county treasurer, for his or her collection fee, shall deduct and withhold, from all amounts required to be collected under this subsection, the collection fee permitted to be deducted by any retailer collecting the sales tax, all of which shall be deposited in the county general fund, plus an additional amount equal to one-half of one percent of all amounts in excess of six thousand dollars remitted each month. Prior to January 1, 2023, fifty percent of such additional amount shall be deposited in the county general fund and fifty percent of such additional amount shall be deposited in the county road fund. On and after January 1, 2023, seventy-five percent of such additional amount shall be deposited in the county general fund and twenty-five percent of such additional amount shall be deposited in the county road fund. In any county with a population of one hundred fifty thousand inhabitants or more, the county treasurer shall remit one dollar of his or her collection fee for each of the first five thousand motor vehicles, semitrailers, or trailers registered with such county treasurer on or after January 1, 2020, to the State Treasurer for credit to the Department of Revenue Enforcement Fund. The Department of Motor Vehicles, for its collection fee, shall deduct, withhold, and deposit in the Motor Carrier Division Cash Fund the collection fee permitted to be deducted by any retailer collecting the sales tax. The collection fee for the county treasurer or the Department of Motor Vehicles shall be forfeited if the county treasurer or department violates any rule or regulation pertaining to the collection of the use tax.

(j)(i) The tax imposed by this section on the sale of a motorboat as defined in section 37-1204 shall be the liability of the purchaser. The tax shall be collected by the county treasurer at the time the purchaser makes application for the registration of the motorboat. At the time of the sale of a motorboat, the seller shall (A) state on the sales invoice the dollar amount of the tax imposed under this section and (B) furnish to the purchaser a certified statement of the transaction, in such form as the Tax Commissioner prescribes, setting forth as a minimum the total sales price, the allowance for any trade-in, and the difference between the two. The sales tax due shall be computed on the difference between the total sales price and the allowance for any trade-in as disclosed by such certified statement. Any seller who willfully understates the amount upon which the sales tax is due shall be subject to a penalty of one thousand dollars. A copy of such certified statement shall also be furnished to the Tax Commissioner. Any seller who fails or refuses to furnish such certified statement shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine of not less than twenty-five dollars nor more than one hundred dollars. If the purchaser does not register such motorboat within thirty days of the purchase thereof, the tax imposed by this section shall immediately thereafter be paid by the purchaser to the county treasurer. If the tax is not paid on or before the thirtieth day after its purchase, the county treasurer shall also collect from the purchaser interest from the thirtieth day through the date of payment and sales tax penalties as provided in the Nebraska Revenue Act of 1967. The county treasurer shall report and remit the tax so collected to the Tax Commissioner by the fifteenth day of the following month. The county treasurer, for his or her collection fee, shall deduct and withhold for the use of the county general fund, from all amounts required to be collected under this subsection, the collection fee permitted to be deducted by any retailer collecting the sales tax. The collection fee shall be forfeited if the county treasurer violates any rule or regulation pertaining to the collection of the use tax.

(ii) In the rental or lease of motorboats, the tax shall be collected by the lessor on the rental or lease price.

(k)(i) The tax imposed by this section on the sale of an all-terrain vehicle as defined in section 60-103 or a utility-type vehicle as defined in section 60-135.01 shall be the liability of the purchaser. The tax shall be collected by the county treasurer or by an approved licensed dealer participating in the electronic dealer services system pursuant to section 60-1507 at the time the purchaser makes application for the certificate of title for the all-terrain vehicle or utility-type vehicle. At the time of the sale of an all-terrain vehicle or a utility-type vehicle, the seller shall (A) state on the sales invoice the dollar amount of the tax imposed under this section and (B) furnish to the purchaser a certified statement of the transaction, in such form as the Tax Commissioner prescribes, setting forth as a minimum the total sales price, the allowance for any trade-in, and the difference between the two. The sales tax due shall be computed on the difference between the total sales price and the allowance for any trade-in as disclosed by such certified statement. Any seller who willfully understates the amount upon which the sales tax is due shall be subject to a penalty of one thousand dollars. A copy of such certified statement shall also be furnished to the Tax Commissioner. Any seller who fails or refuses to furnish such certified statement shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine of not less than twenty-five dollars nor more than one hundred dollars. If the purchaser does not obtain a certificate of title for such all-terrain vehicle or utility-type vehicle within thirty days of the purchase thereof, the tax imposed by this section shall immediately thereafter be paid by the purchaser to the county treasurer. If the tax is not paid on or before the thirtieth day after its purchase, the county treasurer shall also collect from the purchaser interest from the thirtieth day through the date of payment and sales tax penalties as provided in the Nebraska Revenue Act of 1967. The county treasurer shall report and remit the tax so collected to the Tax Commissioner by the fifteenth day of the following month. The county treasurer, for his or her collection fee, shall deduct and withhold for the use of the county general fund, from all amounts required to be collected under this subsection, the collection fee permitted to be deducted by any retailer collecting the sales tax. The collection fee shall be forfeited if the county treasurer violates any rule or regulation pertaining to the collection of the use tax.

(ii) In the rental or lease of an all-terrain vehicle or a utility-type vehicle, the tax shall be collected by the lessor on the rental or lease price.

(iii) County treasurers are appointed as sales and use tax collectors for all sales of all-terrain vehicles or utility-type vehicles made outside of this state to purchasers or users of all-terrain vehicles or utility-type vehicles which are required to have a certificate of title in this state. The county treasurer shall collect the applicable use tax from the purchaser of an all-terrain vehicle or a utility-type vehicle purchased outside of this state at the time application for a certificate of title is made. The full use tax on the purchase price shall be collected by the county treasurer if a sales or occupation tax was not paid by the purchaser in the state of purchase. If a sales or occupation tax was lawfully paid in the state of purchase at a rate less than the tax imposed in this state, use tax must be collected on the difference as a condition for obtaining a certificate of title in this state.

(l) The Tax Commissioner shall adopt and promulgate necessary rules and regulations for determining the amount subject to the taxes imposed by this section so as to insure that the full amount of any applicable tax is paid in cases in which a sale is made of which a part is subject to the taxes imposed by this section and a part of which is not so subject and a separate accounting is not practical or economical.

(2) A use tax is hereby imposed on the storage, use, or other consumption in this state of property purchased, leased, or rented from any retailer and on any transaction the gross receipts of which are subject to tax under subsection (1) of this section on or after June 1, 1967, for storage, use, or other consumption in this state at the rate set as provided in subsection (1) of this section on the sales price of the property or, in the case of leases or rentals, of the lease or rental prices.

(a) Every person storing, using, or otherwise consuming in this state property purchased from a retailer or leased or rented from another person for such purpose shall be liable for the use tax at the rate in effect when his or her liability for the use tax becomes certain under the accounting basis used to maintain his or her books and records. His or her liability shall not be extinguished until the use tax has been paid to this state, except that a receipt from a retailer engaged in business in this state or from a retailer who is authorized by the Tax Commissioner, under such rules and regulations as he or she may prescribe, to collect the sales tax and who is, for the purposes of the Nebraska Revenue Act of 1967 relating to the sales tax, regarded as a retailer engaged in business in this state, which receipt is given to the purchaser pursuant to subdivision (b) of this subsection, shall be sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

(b) Every retailer engaged in business in this state and selling, leasing, or renting property for storage, use, or other consumption in this state shall, at the time of making any sale, collect any tax which may be due from the purchaser and shall give to the purchaser, upon request, a receipt therefor in the manner and form prescribed by the Tax Commissioner.

(c) The Tax Commissioner, in order to facilitate the proper administration of the use tax, may designate such person or persons as he or she may deem necessary to be use tax collectors and delegate to such persons such authority as is necessary to collect any use tax which is due and payable to the State of Nebraska. The Tax Commissioner may require of all persons so designated a surety bond in favor of the State of Nebraska to insure against any misappropriation of state funds so collected. The Tax Commissioner may require any tax official, city, county, or state, to collect the use tax on behalf of the state. All persons designated to or required to collect the use tax shall account for such collections in the manner prescribed by the Tax Commissioner. Nothing in this subdivision shall be so construed as to prevent the Tax Commissioner or his or her employees from collecting any use taxes due and payable to the State of Nebraska.

(d) All persons designated to collect the use tax and all persons required to collect the use tax shall forward the total of such collections to the Tax Commissioner at such time and in such manner as the Tax Commissioner may prescribe. Such collectors of the use tax shall deduct and withhold from the amount of taxes collected three percent of the first five thousand dollars remitted each month as reimbursement for the cost of collecting the tax. Any such deduction shall be forfeited to the State of Nebraska if such collector violates any rule, regulation, or directive of the Tax Commissioner.

(e) For the purpose of the proper administration of the Nebraska Revenue Act of 1967 and to prevent evasion of the use tax, it shall be presumed that property sold, leased, or rented by any person for delivery in this state is sold, leased, or rented for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who purchases, leases, or rents the property.

(f) For the purpose of the proper administration of the Nebraska Revenue Act of 1967 and to prevent evasion of the use tax, for the sale of property to an advertising agency which purchases the property as an agent for a disclosed or undisclosed principal, the advertising agency is and remains liable for the sales and use tax on the purchase the same as if the principal had made the purchase directly.

Source:Laws 1967, c. 487, § 3, p. 1543; Laws 1967, c. 490, § 2, p. 1652; Laws 1969, c. 684, § 1, p. 2646; Laws 1969, c. 683, § 2, p. 2621; Laws 1974, LB 820, § 2;    Laws 1981, LB 179, § 14;    Laws 1983, LB 17, § 2;    Laws 1983, LB 169, § 1;    Laws 1983, LB 571, § 1;    Laws 1985, LB 715, § 3;    Laws 1985, LB 273, § 42;    Laws 1986, LB 1027, § 204;    Laws 1987, LB 224, § 28;    Laws 1987, LB 523, § 14;    Laws 1991, LB 239, § 1;    Laws 1991, LB 47, § 7;    Laws 1991, LB 829, § 21; Laws 1992, LB 871, § 25;    Laws 1992, LB 1063, § 182; Laws 1992, Second Spec. Sess., LB 1, § 155;    Laws 1992, Fourth Spec. Sess., LB 1, § 26;    Laws 1993, LB 112, § 45;    Laws 1993, LB 345, § 33;    Laws 1993, LB 767, § 1;    Laws 1994, LB 123, § 24;    Laws 1994, LB 994, § 1;    Laws 1994, LB 1207, § 15;    Laws 1995, LB 17, § 1;    Laws 1996, LB 1041, § 6;    Laws 1996, LB 1218, § 65;    Laws 1997, LB 62, § 1;    Laws 1997, LB 182A, § 3;    Laws 2002, LB 1085, § 11;    Laws 2002, Second Spec. Sess., LB 32, § 1;    Laws 2003, LB 282, § 48;    Laws 2003, LB 381, § 3;    Laws 2003, LB 563, § 43;    Laws 2003, LB 759, § 12;    Laws 2004, LB 1017, § 10;    Laws 2005, LB 274, § 274;    Laws 2007, LB223, § 7;    Laws 2007, LB367, § 15;    Laws 2008, LB916, § 15;    Laws 2011, LB211, § 3;    Laws 2012, LB801, § 98;    Laws 2014, LB814, § 9;    Laws 2017, LB263, § 98;    Laws 2019, LB237, § 1;    Laws 2022, LB984, § 4.    


Cross References

Annotations

77-2703.01. General sourcing rules.

(1) The determination of whether a sale or use of property or the provision of services is in this state, in a municipality that has adopted a tax under the Local Option Revenue Act, or in a county that has adopted a tax under section 13-319 or 77-6403 shall be governed by the sourcing rules in sections 77-2703.01 to 77-2703.04.

(2) When the property or service is received by the purchaser at a business location of the retailer, the sale is sourced to that business location.

(3) When the property or service is not received by the purchaser at a business location of the retailer, the sale is sourced to the location where receipt by the purchaser or the purchaser's donee, designated as such by the purchaser, occurs, including the location indicated by instructions for delivery to the purchaser or donee, known to the retailer.

(4) When subsection (2) or (3) of this section does not apply, the sale is sourced to the location indicated by an address or other information for the purchaser that is available from the business records of the retailer that are maintained in the ordinary course of the retailer's business when use of this address does not constitute bad faith.

(5) When subsection (2), (3), or (4) of this section does not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith.

(6) When subsection (2), (3), (4), or (5) of this section does not apply, including the circumstance in which the retailer is without sufficient information to apply the rules in any such subsection, then the location will be determined by the address from which property was shipped, from which the digital good was first available for transmission by the retailer, or from which the service was provided disregarding for these purposes any location that merely provided the digital transfer of the product sold.

(7) The lease or rental of tangible personal property, other than property identified in subsection (8) or (9) of this section, shall be sourced as follows:

(a) For a lease or rental that requires recurring periodic payments, the first periodic payment is sourced the same as a retail sale in accordance with the provisions of subsections (2) through (6) of this section. Periodic payments made subsequent to the first payment are sourced to the primary property location for each period covered by the payment. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business when use of this address does not constitute bad faith. The property location shall not be altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and service calls; and

(b) For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of subsections (2) through (6) of this section.

This subsection does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump-sum or accelerated basis or on the acquisition of property for lease.

(8) The lease or rental of motor vehicles, trailers, semitrailers, or aircraft that do not qualify as transportation equipment under subsection (9) of this section shall be sourced as follows:

(a) For a lease or rental that requires recurring periodic payments, each periodic payment is sourced to the primary property location. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business when use of this address does not constitute bad faith. This location shall not be altered by intermittent use at different locations; and

(b) For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of subsections (2) through (6) of this section.

This subsection does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump-sum or accelerated basis or on the acquisition of property for lease.

(9) The retail sale, including lease or rental, of transportation equipment shall be sourced the same as a retail sale in accordance with subsections (2) through (6) of this section. Transportation equipment means any of the following:

(a) Locomotives and railcars that are utilized for the carriage of persons or property in interstate commerce;

(b) Trucks and truck-tractors with a gross vehicle weight rating of ten thousand one pounds or greater, trailers, semitrailers, or passenger buses that are (i) registered through the International Registration Plan and (ii) operated under authority of a carrier authorized and certificated by the United States Department of Transportation or another federal authority to engage in the carriage of persons or property in interstate commerce;

(c) Aircraft operated by air carriers authorized and certificated by the United States Department of Transportation or another federal authority or a foreign authority to engage in the carriage of persons or property in interstate or foreign commerce; and

(d) Containers designed for use on and component parts attached or secured on the items set forth in subdivisions (9)(a) through (c) of this section.

(10) For purposes of this section, receive and receipt mean taking possession of tangible personal property, making first use of services, or taking possession or making first use of digital goods, whichever comes first. The terms receive and receipt do not include possession by a shipping company on behalf of the purchaser. For purposes of sourcing detective services subject to tax under subdivision (4)(h) of section 77-2701.16, making first use of a service shall be deemed to be at the individual's residence, in the case of a customer who is an individual, or at the principal place of business, in the case of a business customer.

(11) The sale, not including lease or rental, of a motor vehicle, semitrailer, or trailer as defined in the Motor Vehicle Registration Act shall be sourced to the place of registration of the motor vehicle, semitrailer, or trailer for operation upon the highways of this state or, if no such registration has occurred, the place where such motor vehicle, semitrailer, or trailer is required to be registered, except that beginning January 1, 2021, the sale of any motor vehicle or trailer operated by a public power district and registered under section 60-3,228 shall be sourced to the place where the motor vehicle or trailer has situs as defined in section 60-349.

(12) The sale or lease for one year or more of motorboats shall be sourced to the place of registration of the motorboat. The lease of motorboats for less than one year shall be sourced to the point of delivery.

Source:Laws 2003, LB 282, § 49;    Laws 2003, LB 759, § 13;    Laws 2004, LB 1017, § 11;    Laws 2005, LB 274, § 275;    Laws 2007, LB367, § 16;    Laws 2008, LB916, § 16;    Laws 2014, LB851, § 11;    Laws 2018, LB1030, § 2;    Laws 2019, LB472, § 10.    


Cross References

77-2703.02. Repealed. Laws 2007, LB 223, § 36.

77-2703.03. Direct mail sourcing.

(1) This section applies when sourcing sales of direct mail. For purposes of this section:

(a) Advertising and promotional direct mail means direct mail that has the primary purpose of attracting public attention to a product, person, business, or organization or attempting to sell, popularize, or secure financial support for a product, person, business, or organization; and

(b)(i) Other direct mail means any direct mail that is not advertising and promotional direct mail, regardless of whether advertising and promotional direct mail is included in the same mailing.

(ii) Other direct mail includes, but is not limited to:

(A) Transactional direct mail that contains personal information specific to the addressee, including, but not limited to, invoices, bills, statements of account, and payroll advices;

(B) Any legally required mailings, including, but not limited to, privacy notices, tax reports, and stockholder reports; and

(C) Other nonpromotional direct mail delivered to existing or former shareholders, customers, employees, or agents, including, but not limited to, newsletters and informational pieces.

(iii) Other direct mail does not include the development of billing information or any data processing service that is more than incidental.

(2) The sale of advertising and promotional direct mail shall be sourced as follows:

(a) If the purchaser of advertising and promotional direct mail provides the retailer with a direct payment permit, certificate of exemption authorized by the streamlined sales and use tax agreement, or written statement claiming exemption that has been approved, authorized, or accepted by the Tax Commissioner, the purchaser shall source the sale to the jurisdictions to which the advertising and promotional direct mail is to be delivered to recipients and shall report and pay any applicable tax due. In the absence of bad faith, the retailer is relieved of all obligations to collect, pay, or remit any tax on any transaction involving advertising and promotional direct mail to which the direct payment permit, certificate of exemption, or written statement applies;

(b) If the purchaser of advertising and promotional direct mail provides the retailer with information showing the jurisdictions to which the advertising and promotional direct mail is to be delivered to recipients, the retailer shall source the sale to the jurisdictions to which the advertising and promotional direct mail is to be delivered to recipients and shall collect and remit the applicable tax. In the absence of bad faith, the retailer is relieved of any further obligation to collect any additional tax on the sale of advertising and promotional direct mail; or

(c) If neither subdivision (a) of this subsection nor subdivision (b) of this subsection applies, then the sale of advertising and promotional direct mail shall be sourced according to subsection (6) of section 77-2703.01. The tax paid shall not constitute a properly paid tax for purposes of allowing credit against state and local option sales and use tax due.

(3) The sale of other direct mail shall be sourced as follows:

(a) If the purchaser of other direct mail provides the retailer with a direct payment permit, certificate of exemption authorized by the streamlined sales and use tax agreement, or written statement claiming exemption that has been approved, authorized, or accepted by the Tax Commissioner, the purchaser shall source the sale to the jurisdictions to which the other direct mail is to be delivered to recipients and shall report and pay any applicable tax due. In the absence of bad faith, the retailer is relieved of all obligations to collect, pay, or remit any tax on any transaction involving other direct mail to which the direct payment permit, certificate of exemption, or written statement applies; or

(b) If subdivision (a) of this subsection does not apply, then the sale of other direct mail shall be sourced according to subsection (4) of section 77-2703.01. The tax paid shall not constitute a properly paid tax for purposes of allowing credit against state and local option sales and use tax due.

(4) This section applies to transactions characterized under state law as sales of services only if the service is an integral part of the production and distribution of direct mail.

(5) If a transaction is a bundled transaction that includes advertising and promotional direct mail, this section applies only if the primary purpose of the transaction is the sale of advertising and promotional direct mail.

(6) This section does not apply to any transaction that includes the development of billing information or the provision of any data processing service that is more than incidental, regardless of whether advertising and promotional direct mail is included in the same mailing.

Source:Laws 2003, LB 282, § 51;    Laws 2011, LB211, § 4.    


77-2703.04. Telecommunications sourcing rule.

(1) Except for the telecommunications service defined in subsection (3) of this section, the sale of telecommunications service sold on a call-by-call basis shall be sourced to (a) each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or (b) each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.

(2) Except for the telecommunications service defined in subsection (3) of this section, a sale of telecommunications service sold on a basis other than a call-by-call basis and ancillary services are sourced to the customer's place of primary use.

(3)(a) For mobile telecommunications service and ancillary services provided and billed to a customer by a home service provider:

(i) Notwithstanding any other provision of law or any local ordinance or resolution, such mobile telecommunications service is deemed to be provided by the customer's home service provider;

(ii) All taxable charges for such mobile telecommunications service and ancillary services shall be subject to tax by the state or other taxing jurisdiction in this state whose territorial limits encompass the customer's place of primary use regardless of where the mobile telecommunications service originates, terminates, or passes through; and

(iii) No taxes, charges, or fees may be imposed on a customer with a place of primary use outside this state.

(b) In accordance with the federal Mobile Telecommunications Sourcing Act, as such act existed on July 20, 2002, the Tax Commissioner may, but is not required to:

(i) Provide or contract for a tax assignment database based upon standards identified in 4 U.S.C. 119, as such section existed on July 20, 2002, with the following conditions:

(A) If such database is provided, a home service provider shall be held harmless for any tax that otherwise would result from any errors or omissions attributable to reliance on such database; or

(B) If such database is not provided, a home service provider may rely on an enhanced zip code for identifying the proper taxing jurisdictions and shall be held harmless for any tax that otherwise would result from any errors or omissions attributable to reliance on such enhanced zip code if the home service provider identified the taxing jurisdiction through the exercise of due diligence and complied with any procedures that may be adopted by the Tax Commissioner. Any such procedure shall be in accordance with 4 U.S.C. 120, as such section existed on July 20, 2002; and

(ii) Adopt procedures for correcting errors in the assignment of primary use that are consistent with 4 U.S.C. 121, as such section existed on July 20, 2002.

(c) If charges for mobile telecommunications service that are not subject to tax are aggregated with and not separately stated on the bill from charges that are subject to tax, the total charge to the customer shall be subject to tax unless the home service provider can reasonably separate charges not subject to tax using the records of the home service provider that are kept in the regular course of business.

(d) For purposes of this subsection:

(i) Customer means an individual, business, organization, or other person contracting to receive mobile telecommunications service from a home service provider. Customer does not include a reseller of mobile telecommunications service or a serving carrier under an arrangement to serve the customer outside the home service provider's service area;

(ii) Home service provider means a telecommunications company as defined in section 86-322 that has contracted with a customer to provide mobile telecommunications service;

(iii) Mobile telecommunications service means a wireless communication service carried on between mobile stations or receivers and land stations, and by mobile stations communicating among themselves, and includes (A) both one-way and two-way wireless communication services, (B) a mobile service which provides a regularly interacting group of base, mobile, portable, and associated control and relay stations, whether on an individual, cooperative, or multiple basis for private one-way or two-way land mobile radio communications by eligible users over designated areas of operation, and (C) any personal communication service;

(iv) Place of primary use means the street address representative of where the customer's use of mobile telecommunications service primarily occurs. The place of primary use shall be the residential street address or the primary business street address of the customer and shall be within the service area of the home service provider; and

(v) Tax means the sales taxes levied under sections 13-319, 77-2703, 77-27,142, and 77-6403, the surcharges levied under the Enhanced Wireless 911 Services Act, the Nebraska Telecommunications Universal Service Fund Act, and the Telecommunications Relay System Act, and any other tax levied against the customer based on the amount charged to the customer. Tax does not mean an income tax, property tax, franchise tax, or any other tax levied on the home service provider that is not based on the amount charged to the customer.

(4) A sale of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either (a) the seller's telecommunications system, or (b) information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.

(5) A sale of prepaid calling service or a sale of a prepaid wireless calling service is sourced in accordance with section 77-2703.01, except that in the case of a sale of a prepaid wireless calling service, the rule provided in section 77-2703.01 shall include as an option the location associated with the mobile telephone number.

(6) A sale of a private communication service is sourced as follows:

(a) Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located;

(b) Service where all customer termination points are located entirely within one jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located;

(c) Service for segments of a channel between two customer channel termination points located in different jurisdictions and which segments of channel are separately charged is sourced fifty percent in each level of jurisdiction in which the customer channel termination points are located; and

(d) Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.

(7) For purposes of this section:

(a) 800 service means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name 800, 855, 866, 877, and 888 toll-free calling, and any subsequent numbers designated by the Federal Communications Commission;

(b) 900 service means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. 900 service does not include the charge for collection services provided by the seller of the telecommunications services to the subscriber or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name 900 service, and any subsequent numbers designated by the Federal Communications Commission;

(c) Air-to-ground radiotelephone service means a radio telecommunication service, as that term is defined in 47 C.F.R. 22.99, as such regulation existed on January 1, 2007, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft;

(d) Ancillary services means services that are associated with or incidental to the provision of telecommunications services, including, but not limited to, detailed telecommunications billings, directory assistance, vertical service, and voice mail services;

(e) Call-by-call basis means any method of charging for telecommunications service where the price is measured by individual calls;

(f) Coin-operated telephone service means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate;

(g) Communications channel means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points;

(h) Conference bridging service means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge;

(i) Customer means the person or entity that contracts with the seller of telecommunications service. If the end user of telecommunications service is not the contracting party, the end user of the telecommunications service is the customer of the telecommunications service, but this sentence only applies for the purpose of sourcing sales of telecommunications service under this section. Customer does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area;

(j) Customer channel termination point means the location where the customer either inputs or receives the communications;

(k) Detailed telecommunications billing service means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement;

(l) Directory assistance means an ancillary service of providing telephone number information and address information;

(m) End user means the person who utilizes the telecommunications service. In the case of an entity, end user means the individual who utilizes the service on behalf of the entity;

(n) Fixed wireless service means a telecommunications service that provides radio communication between fixed points;

(o) International means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively. United States includes the District of Columbia or a United States territory or possession;

(p) Interstate means a telecommunications service that originates in one state of the United States, or a territory or possession of the United States, and terminates in a different state, territory, or possession of the United States;

(q) Intrastate means a telecommunications service that originates in one state of the United States, or a territory or possession of the United States, and terminates in the same state, territory, or possession of the United States;

(r) Mobile wireless service means a telecommunications service that is transmitted, conveyed, or routed regardless of the technology used, whereby the origination and termination points of the transmission, conveyance, or routing are not fixed, including, by way of example only, telecommunications services that are provided by a commercial mobile radio service provider;

(s) Paging service means a telecommunications service that provides transmission of coded radio signals for the purpose of activating specific pagers. Such transmission may include messages and sounds;

(t) Pay telephone services means a telecommunications service provided through pay telephones;

(u) Post-paid calling service means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism, such as a bank card, travel card, credit card, or debit card, or by a charge made to a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service, except a prepaid wireless calling service, that would be a prepaid calling service except it is not exclusively a telecommunications service;

(v) Prepaid calling service means the right to access exclusively telecommunications service, which is paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount;

(w) Prepaid wireless calling service means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, which must be paid for in advance, that is sold in predetermined units of dollars or which the number declines with use in a known amount;

(x) Private communication service means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels;

(y) Residential telecommunications service means a telecommunications service or ancillary services provided to an individual for personal use at a residential address, including an individual dwelling unit such as an apartment. In the case of institutions where individuals reside, such as schools or nursing homes, telecommunications service is considered residential if it is provided to and paid for by an individual resident rather than the institution;

(z) Service address means the location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid. If this location is not known, service address means the origination point of the signal of the telecommunications service first identified either by the seller's telecommunications system, or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller. If both locations are not known, the service address means the location of the customer's place of primary use;

(aa) Telecommunications service means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. Telecommunications service includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over Internet protocol services or is classified by the Federal Communications Commission as enhanced or value-added. Telecommunications service does not include:

(i) Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser when such purchaser's primary purpose for the underlying transaction is the processed data or information;

(ii) Installation or maintenance of wiring or equipment on a customer's premises;

(iii) Tangible personal property;

(iv) Advertising, including, but not limited to, directory advertising;

(v) Billing and collection services provided to third parties;

(vi) Internet access service;

(vii) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 U.S.C. 522, as such section existed on January 1, 2007, and audio and video programming services delivered by providers of commercial mobile radio service as defined in 47 C.F.R. 20.3, as such regulation existed on January 1, 2007;

(viii) Ancillary services; or

(ix) Digital products delivered electronically, including, but not limited to, software, music, video, reading materials, or ringtones;

(bb) Value-added, nonvoice data service means a service that otherwise meets the definition of telecommunications services in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for a purpose other than transmission, conveyance, or routing;

(cc) Vertical service means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services; and

(dd) Voice mail service means an ancillary service that enables the customer to store, send, or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.

Source:Laws 2003, LB 282, § 52;    Laws 2007, LB223, § 8;    Laws 2009, LB165, § 7;    Laws 2019, LB472, § 11.    


Cross References

77-2704. Repealed. Laws 1992, LB 871, § 65.

77-2704.01. Repealed. Laws 1992, LB 871, § 65.

77-2704.02. Federal or state constitution or federal statute; exemption.

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 property, the gross receipts from the sale, lease, or rental of which or the storage, use, or other consumption of which this state is prohibited from taxing under the Constitution or laws of the United States or under the Constitution of Nebraska.

Source:Laws 1992, LB 871, § 26;    Laws 1993, LB 345, § 34.    


77-2704.03. Aircraft fuel; exemption.

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 aircraft fuel as defined under Chapter 3, article 1.

Source:Laws 1992, LB 871, § 27.    


77-2704.04. Minerals, oil, or gas; exemption.

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 minerals, oil, and gas as defined under Chapter 57.

Source:Laws 1992, LB 871, § 28.    


77-2704.05. Motor vehicle fuels; diesel and compressed fuels; exemption.

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 motor vehicle fuels as defined, taxed, or exempted under Chapter 66, article 4, diesel fuel as taxed for use on the highways under Chapter 66, article 4, compressed fuels as taxed for use on the highways under the Compressed Fuel Tax Act, diesel and compressed fuels used to provide motive power for railroad rolling stock, and diesel and compressed fuels delivered into the fuel supply tanks of other vehicles.

Source:Laws 1992, LB 871, § 29;    Laws 1993, LB 345, § 35;    Laws 1994, LB 1160, § 122;    Laws 1995, LB 182, § 66;    Laws 2004, LB 983, § 67.    


Cross References

77-2704.06. Contract entered into prior to June 1, 1967; exemption.

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 property used for the performance of a written contract entered into prior to June 1, 1967.

Source:Laws 1992, LB 871, § 30;    Laws 1993, LB 345, § 36.    


77-2704.07. Newspaper; exemption.

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 any newspaper regularly issued at average intervals not exceeding one week if such newspaper contains matters of general interest and reports of current events.

Source:Laws 1992, LB 871, § 31;    Laws 1993, LB 345, § 37;    Laws 2003, LB 759, § 14.    


77-2704.08. Leased property; exemption.

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 leased property sold to a lessee of that property under an agreement whereby certain rental payments are credited against the purchase price of that property, except that this exemption shall not exceed the amount for which the lessor has collected and paid tax on such rental payments.

Source:Laws 1992, LB 871, § 32;    Laws 1993, LB 345, § 38.    


77-2704.09. Insulin; prescription drugs; mobility enhancing equipment; medical equipment; exemptions.

(1) 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 (a) insulin, (b) mobility enhancing equipment and drugs, not including over-the-counter drugs, when sold for a patient's use under a prescription, and (c) the following when sold for a patient's use under a prescription and which are of the type eligible for coverage under the medical assistance program established pursuant to the Medical Assistance Act: Durable medical equipment; home medical supplies; prosthetic devices; oxygen; and oxygen equipment.

(2) For purposes of this section:

(a) Drug means a compound, substance, preparation, and component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages:

(i) Recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and any supplement to any of them;

(ii) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or

(iii) Intended to affect the structure or any function of the body;

(b) Durable medical equipment means equipment which can withstand repeated use, is primarily and customarily used to serve a medical purpose, generally is not useful to a person in the absence of illness or injury, is appropriate for use in the home, and is not worn in or on the body. Durable medical equipment includes repair and replacement parts for such equipment;

(c) Home medical supplies means supplies primarily and customarily used to serve a medical purpose which are appropriate for use in the home and are generally not useful to a person in the absence of illness or injury;

(d) Mobility enhancing equipment means equipment which is primarily and customarily used to provide or increase the ability to move from one place to another, which is not generally used by persons with normal mobility, and which is appropriate for use either in a home or a motor vehicle. Mobility enhancing equipment includes repair and replacement parts for such equipment. Mobility enhancing equipment does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer;

(e) Over-the-counter drug means a drug that contains a label that identifies the product as a drug as required by 21 C.F.R. 201.66, as such regulation existed on January 1, 2003. The over-the-counter drug label includes a drug facts panel or a statement of the active ingredients with a list of those ingredients contained in the compound, substance, or preparation;

(f) Oxygen equipment means oxygen cylinders, cylinder transport devices including sheaths and carts, cylinder studs and support devices, regulators, flowmeters, tank wrenches, oxygen concentrators, liquid oxygen base dispensers, liquid oxygen portable dispensers, oxygen tubing, nasal cannulas, face masks, oxygen humidifiers, and oxygen fittings and accessories;

(g) Prescription means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner authorized under the Uniform Credentialing Act; and

(h) Prosthetic devices means a replacement, corrective, or supportive device worn on or in the body to artificially replace a missing portion of the body, prevent or correct physical deformity or malfunction, or support a weak or deformed portion of the body, and includes any supplies used with such device and repair and replacement parts.

Source:Laws 1992, LB 871, § 33;    Laws 1993, LB 345, § 39;    Laws 1994, LB 901, § 5;    Laws 1999, LB 280, § 1;    Laws 2003, LB 282, § 53;    Laws 2005, LB 256, § 95;    Laws 2006, LB 1248, § 85;    Laws 2007, LB463, § 1308;    Laws 2008, LB916, § 17;    Laws 2009, LB165, § 8.    


Cross References

77-2704.10. Prepared food and food and food ingredients; fees and admissions; exemption.

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) Prepared food and food and food ingredients served by public or private schools, school districts, student organizations, or parent-teacher associations pursuant to an agreement with the proper school authorities, in an elementary or secondary school or at any institution of higher education, public or private, during the regular school day or at an approved function of any such school or institution. This exemption does not apply to sales by an institution of higher education at any facility or function which is open to the general public;

(2) Prepared food and food and food ingredients sold by a church at a function of such church;

(3) Prepared food and food and food ingredients served to patients and inmates of hospitals and other institutions licensed by the state for the care of human beings;

(4) Fees and admissions charged for political events by ballot question committees, candidate committees, independent committees, and political party committees as defined in the Nebraska Political Accountability and Disclosure Act;

(5) Prepared food and food and food ingredients sold to the elderly, handicapped, or recipients of Supplemental Security Income by an organization that actually accepts electronic benefits transfer under regulations issued by the United States Department of Agriculture although it is not necessary for the purchaser to use electronic benefits transfer to pay for the prepared food and food and food ingredients;

(6) Fees and admissions charged by a public or private elementary or secondary school and fees and admissions charged by a school district, student organization, or parent-teacher association, pursuant to an agreement with the proper school authorities, in a public or private elementary or secondary school during the regular school day or at an approved function of any such school;

(7) Fees and admissions charged for participants in any activity provided by a nonprofit organization that is exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which organization conducts statewide sport events with multiple sports for both adults and youth; and

(8) Fees and admissions charged for participants in any activity provided by a nonprofit organization that is exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which organization is affiliated with a national organization, primarily dedicated to youth development and healthy living, and offers sports instruction and sports leagues or sports events in multiple sports.

Source:Laws 1992, LB 871, § 34;    Laws 1993, LB 345, § 40;    Laws 2003, LB 282, § 54;    Laws 2011, LB211, § 5;    Laws 2012, LB727, § 39;    Laws 2017, LB63, § 1.    


Cross References

77-2704.11. Shipment outside this state; exemption.

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 property and any associated labor, or the gross receipts from the provision of services within this state, which is shipped to a point outside this state, when the contract of sale or service is expressly or impliedly contingent upon delivery by the retailer to such point by means of facilities operated by the retailer, delivery by the retailer to a carrier for shipment to a consignee at such point, delivery by the retailer to the customer at airport facilities for immediate transport outside this state, delivery by the retailer to the United States post office for delivery outside this state, or delivery by the retailer to a customs broker or forwarding agent for shipment outside this state. Such exemption shall include the amount charged for fabrication, installation, or application of property furnished by the customer which is fabricated, installed, or applied in this state and then shipped by the retailer performing the fabrication, installation, or application to a point outside of this state. This shall also include the gross receipts from sales of property to a common or contract carrier shipped by the seller via the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside this state and the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a common or contract carrier.

Source:Laws 1992, LB 871, § 35;    Laws 1993, LB 345, § 41;    Laws 2002, LB 1085, § 12.    


77-2704.12. Nonprofit religious, service, educational, or medical organization; exemption; purchasing agents.

(1) 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 purchases by (a) any nonprofit organization created exclusively for religious purposes, (b) any nonprofit organization providing services exclusively to the blind, (c) any nonprofit private educational institution established under sections 79-1601 to 79-1607, (d) any accredited, nonprofit, privately controlled college or university with its primary campus physically located in Nebraska, (e) any nonprofit (i) hospital, (ii) health clinic when one or more hospitals or the parent corporations of the hospitals own or control the health clinic for the purpose of reducing the cost of health services or when the health clinic receives federal funds through the United States Public Health Service for the purpose of serving populations that are medically underserved, (iii) skilled nursing facility, (iv) intermediate care facility, (v) assisted-living facility, (vi) intermediate care facility for persons with developmental disabilities, (vii) nursing facility, (viii) home health agency, (ix) hospice or hospice service, (x) respite care service, (xi) mental health substance use treatment center licensed under the Health Care Facility Licensure Act, or (xii) center for independent living as defined in 29 U.S.C. 796a, (f) any nonprofit licensed residential child-caring agency, (g) any nonprofit licensed child-placing agency, (h) any nonprofit organization certified by the Department of Health and Human Services to provide community-based services for persons with developmental disabilities, or (i) any nonprofit organization certified or contracted by a regional behavioral health authority or the Division of Behavioral Health of the Department of Health and Human Services to provide community-based mental health or substance use services.

(2) Any organization listed in subsection (1) of this section shall apply for an exemption on forms provided by the Tax Commissioner. The application shall be approved and a numbered certificate of exemption received by the applicant organization in order to be exempt from the sales and use tax.

(3) The appointment of purchasing agents shall be recognized for the purpose of altering the status of the construction contractor as the ultimate consumer of building materials which are physically annexed to the structure and which subsequently belong to the owner of the organization or institution. The appointment of purchasing agents shall be in writing and occur prior to having any building materials annexed to real estate in the construction, improvement, or repair. The contractor who has been appointed as a purchasing agent may apply for a refund of or use as a credit against a future use tax liability the tax paid on inventory items annexed to real estate in the construction, improvement, or repair of a project for a licensed not-for-profit institution.

(4) Any organization listed in subsection (1) of this section which enters into a contract of construction, improvement, or repair upon property annexed to real estate without first issuing a purchasing agent authorization to a contractor or repairperson prior to the building materials being annexed to real estate in the project may apply to the Tax Commissioner for a refund of any sales and use tax paid by the contractor or repairperson on the building materials physically annexed to real estate in the construction, improvement, or repair.

(5) Any person purchasing, storing, using, or otherwise consuming building materials in the performance of any construction, improvement, or repair by or for any institution enumerated in subsection (1) of this section which is licensed upon completion although not licensed at the time of construction or improvement, which building materials are annexed to real estate and which subsequently belong to the owner of the institution, shall pay any applicable sales or use tax thereon. Upon becoming licensed and receiving a numbered certificate of exemption, the institution organized not for profit shall be entitled to a refund of the amount of taxes so paid in the performance of such construction, improvement, or repair and shall submit whatever evidence is required by the Tax Commissioner sufficient to establish the total sales and use tax paid upon the building materials physically annexed to real estate in the construction, improvement, or repair.

Source:Laws 1992, LB 871, § 36;    Laws 1993, LB 345, § 42;    Laws 1994, LB 977, § 3;    Laws 1996, LB 900, § 1063;    Laws 2000, LB 819, § 151;    Laws 2002, LB 989, § 18;    Laws 2004, LB 841, § 1;    Laws 2004, LB 1017, § 13;    Laws 2005, LB 216, § 6;    Laws 2006, LB 1189, § 5;    Laws 2008, LB575, § 1;    Laws 2011, LB637, § 24;    Laws 2012, LB40, § 1;    Laws 2012, LB1097, § 1;    Laws 2013, LB23, § 43;    Laws 2013, LB265, § 46;    Laws 2016, LB774, § 3;    Laws 2018, LB1034, § 71;    Laws 2021, LB528, § 19;    Laws 2023, LB727, § 63.    
Operative Date: October 1, 2023


Cross References

Annotations

77-2704.13. Fuel, energy, or water sources; exemption.

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.

Source:Laws 1992, LB 871, § 37;    Laws 1992, Fourth Spec. Sess., LB 1, § 27;    Laws 1993, LB 345, § 43;    Laws 1994, LB 977, § 4;    Laws 2003, LB 282, § 55;    Laws 2009, LB9, § 4;    Laws 2014, LB867, § 12;    Laws 2016, LB774, § 4.    


Annotations

77-2704.14. Coin-operated laundering and cleaning machines; exemption.

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 the use of coin-operated machines used for laundering and cleaning except the cleaning or washing of motor vehicles.

Source:Laws 1992, LB 871, § 38;    Laws 2003, LB 282, § 56.    


77-2704.15. Purchases by state, schools, or governmental units; exemption; purchasing agents.

(1)(a) 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 purchases by the state, including public educational institutions recognized or established under the provisions of Chapter 85, or by any county, township, city, village, rural or suburban fire protection district, city airport authority, county airport authority, joint airport authority, drainage district organized under sections 31-401 to 31-450, sanitary drainage district organized under sections 31-501 to 31-553, land bank created under the Nebraska Municipal Land Bank Act, natural resources district, county agricultural society, elected county fair board, housing agency as defined in section 71-1575 except for purchases for any commercial operation that does not exclusively benefit the residents of an affordable housing project, cemetery created under section 12-101, or joint entity or agency formed by any combination of two or more counties, townships, cities, villages, or other exempt governmental units pursuant to the Interlocal Cooperation Act, the Integrated Solid Waste Management Act, or the Joint Public Agency Act, except for purchases for use in the business of furnishing gas, water, electricity, or heat, or by any irrigation or reclamation district, the irrigation division of any public power and irrigation district, or public schools or learning communities established under Chapter 79.

(b) For purposes of this subsection, purchases by the state or by a governmental unit listed in subdivision (a) of this subsection include purchases by any nonprofit corporation under a lease-purchase agreement, financing lease, or other instrument which provides for transfer of title to the property to the state or governmental unit upon payment of all amounts due thereunder. If any nonprofit corporation will be making purchases under a lease-purchase agreement, financing lease, or other instrument as part of a project with a total estimated cost that exceeds the threshold amount, then such purchases shall qualify for an exemption under this section only if the question of proceeding with such project has been submitted at a primary, general, or special election held within the governmental unit that will be a party to the lease-purchase agreement, financing lease, or other instrument and has been approved by the voters of such governmental unit or the governmental unit's expenditure towards the project is paid in whole or in part with redevelopment bonds. For purposes of this subdivision, (i) project means the acquisition of real property or the construction of a public building and (ii) threshold amount means the greater of fifty thousand dollars or six-tenths of one percent of the total actual value of real and personal property of the governmental unit that will be a party to the lease-purchase agreement, financing lease, or other instrument as of the end of the governmental unit's prior fiscal year.

(2) The appointment of purchasing agents shall be recognized for the purpose of altering the status of the construction contractor as the ultimate consumer of building materials which are physically annexed to the structure and which subsequently belong to the state or the governmental unit. The appointment of purchasing agents shall be in writing and occur prior to having any building materials annexed to real estate in the construction, improvement, or repair. The contractor who has been appointed as a purchasing agent may apply for a refund of or use as a credit against a future use tax liability the tax paid on inventory items annexed to real estate in the construction, improvement, or repair of a project for the state or a governmental unit.

(3) Any governmental unit listed in subsection (1) of this section, except the state, which enters into a contract of construction, improvement, or repair upon property annexed to real estate without first issuing a purchasing agent authorization to a contractor or repairperson prior to the building materials being annexed to real estate in the project may apply to the Tax Commissioner for a refund of any sales and use tax paid by the contractor or repairperson on the building materials physically annexed to real estate in the construction, improvement, or repair.

Source:Laws 1992, LB 871, § 39;    Laws 1993, LB 345, § 44;    Laws 1994, LB 977, § 5;    Laws 1994, LB 1207, § 16;    Laws 1999, LB 87, § 86;    Laws 1999, LB 232, § 1;    Laws 2000, LB 557, § 1;    Laws 2002, LB 123, § 1;    Laws 2004, LB 1017, § 14;    Laws 2006, LB 1189, § 6;    Laws 2009, LB392, § 8;    Laws 2011, LB252, § 2;    Laws 2012, LB902, § 2;    Laws 2013, LB97, § 26;    Laws 2015, LB52, § 1;    Laws 2016, LB774, § 5;    Laws 2022, LB800, § 343;    Laws 2023, LB727, § 64.    
Operative Date: July 1, 2023


Cross References

Annotations

77-2704.16. Purchases by Nebraska State Fair Board; exemption.

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 purchases made by the Nebraska State Fair Board.

Source:Laws 1992, LB 871, § 43;    Laws 2002, LB 1236, § 18.    


77-2704.17. Purchases by Nebraska Investment Finance Authority; exemption.

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 purchases made by the Nebraska Investment Finance Authority.

Source:Laws 1992, LB 871, § 47.    


Cross References

77-2704.18. Repealed. Laws 2006, LB 1189, § 9.

77-2704.19. Repealed. Laws 2009, LB 154, § 27.

77-2704.20. Purchases by licensees of the State Racing and Gaming Commission; exemption.

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 purchases made by licensees of the State Racing and Gaming Commission.

Source:Laws 1992, LB 871, § 50;    Initiative Law 2020, No. 430, § 11; Laws 2021, LB561, § 48.    


77-2704.21. Purchase of motor vehicle for disabled person; exemption.

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 the entire purchase price of a motor vehicle purchased when the maximum amount allowed by law is contributed by the United States Department of Veterans Affairs or the Department of Health and Human Services for a disabled person. If the amount contributed is less than the maximum amount, the exemption shall be based on the portion of the purchase price contributed.

Source:Laws 1992, LB 871, § 40;    Laws 1996, LB 1044, § 796;    Laws 2007, LB296, § 704.    


77-2704.22. Manufacturing machinery and equipment and related services; exemption.

(1) Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental and on the storage, use, or other consumption in this state of manufacturing machinery and equipment.

(2) Sales and use taxes shall not be imposed on the gross receipts from the sale of installation, repair, and maintenance services performed on or with respect to manufacturing machinery and equipment.

Source:Laws 2005, LB 312, § 10.    


Annotations

77-2704.23. Semen and insemination services; exemption.

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 sales and purchases of semen and insemination services for use in ranching or farming or for commercial or industrial uses.

Source:Laws 1992, LB 871, § 42;    Laws 2003, LB 759, § 15.    


77-2704.24. Food or food ingredients; exemptions.

(1) 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 food or food ingredients except for prepared food and food sold through vending machines.

(2) For purposes of this section:

(a) Alcoholic beverages means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume;

(b) Dietary supplement means any product, other than tobacco, intended to supplement the diet that contains one or more of the following dietary ingredients: (i) A vitamin, (ii) a mineral, (iii) an herb or other botanical, (iv) an amino acid, (v) a dietary substance for use by humans to supplement the diet by increasing the total dietary intake, or (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredients described in subdivisions (2)(b)(i) through (v) of this section; that is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form or, if not intended for ingestion in such a form, is not presented as conventional food and is not represented for use as a sole item of a meal or of the diet; and that is required to be labeled as a dietary supplement, identifiable by the supplemental facts box found on the label and as required pursuant to 21 C.F.R. 101.36, as such regulation existed on January 1, 2003;

(c) Food and food ingredients means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. Food and food ingredients does not include alcoholic beverages, dietary supplements, or tobacco;

(d) Food sold through vending machines means food that is dispensed from a machine or other mechanical device that accepts payment;

(e) Prepared food means:

(i) Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used to transport the food; or

(ii) Two or more food ingredients mixed or combined by the seller for sale as a single item and food sold in a heated state or heated by the seller, except:

(A) Food that is only cut, repackaged, or pasteurized by the seller;

(B) Eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal Food and Drug Administration in chapter 3, part 401.11 of its Food Code, as it existed on January 1, 2003, so as to prevent food borne illnesses;

(C) Food sold by a seller whose proper primary North American Industry Classification System classification is manufacturing in sector 311, except subsector 3118, bakeries;

(D) Food sold in an unheated state by weight or volume as a single item;

(E) Bakery items, including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas; and

(F) Food that ordinarily requires additional cooking to finish the product to its desired final condition; and

(f) Tobacco means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco.

Source:Laws 1992, LB 871, § 44;    Laws 1993, LB 345, § 45;    Laws 2003, LB 282, § 57;    Laws 2016, LB776, § 1.    


77-2704.25. Sales by school organizations; exemption.

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 property sold by parent-booster clubs, parent-teacher associations, parent-teacher-student associations, or school-operated stores approved by an elementary or secondary school, public or private, if the proceeds from such sale are used to support school activities or the school itself.

Source:Laws 1992, LB 871, § 45;    Laws 1993, LB 345, § 46;    Laws 2005, LB 216, § 7.    


77-2704.26. Aircraft; exemption.

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 an aircraft delivered in this state to an individual who is a resident of another state or any other person who has a business location in another state when the aircraft is not to be registered or based in this state and it will not remain in this state more than ten days. Sales and use taxes shall not be imposed on the gross receipts from a service listed in subsection (4) of section 77-2701.16 that is rendered to an aircraft brought into this state by an individual who is a resident of another state or any other person who has a business location in another state when the aircraft is not to be registered or based in this state and it will not remain in this state more than ten days after the service is completed.

Source:Laws 1992, LB 871, § 46;    Laws 2002, LB 1085, § 13;    Laws 2003, LB 282, § 58;    Laws 2003, LB 759, § 16;    Laws 2008, LB916, § 18.    


77-2704.27. Railroad rolling stock; exemption.

Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, or rental of, the service to, and the storage, use, or other consumption in this state of railroad rolling stock whether owned by a railroad or by any other person.

Source:Laws 1992, LB 871, § 51;    Laws 2002, LB 1085, § 14.    


77-2704.28. Leases between related companies; exemption.

A lease of property from a subsidiary to the parent company, from a parent company to a subsidiary, from one subsidiary to another subsidiary of the same parent company, or between brother-sister companies shall not be subject to the sales and use tax imposed by the Nebraska Revenue Act of 1967 if such property was either originally acquired prior to June 1, 1967, or if acquired thereafter, the seller or transferor directly or indirectly has previously paid a sales or use tax thereon. Such lessor company shall have the same sales and use tax liability on the purchase of property to be leased to the lessee company as the lessee company would have paid if the lessee company had purchased the property directly.

Source:Laws 1992, LB 871, § 55;    Laws 1993, LB 345, § 47.    


77-2704.29. Sales tax payment; exemption from use tax.

The storage, use, or other consumption in this state of property, the gross receipts from the sale, lease, or rental of which are required to be included in the measure of the sales tax and on which the sales tax has been paid, is exempted from the use tax.

Source:Laws 1992, LB 871, § 52;    Laws 1993, LB 345, § 48.    


77-2704.30. Use tax; general exemptions.

The use tax imposed in the Nebraska Revenue Act of 1967 shall not apply to:

(1) The use in this state of materials and replacement parts which are acquired outside this state and which are moved into this state for use directly in the repair, installation, or application and maintenance or manufacture of motor vehicles, watercraft, railroad rolling stock, whether owned by a railroad or by any person, whether a common or contract carrier or otherwise, or aircraft engaged as common or contract carriers; and

(2) The storage, use, or consumption of property which is acquired outside this state, the sale, lease, or rental or the storage, use, or consumption of which property and any associated labor would be exempt from the sales or use tax were it purchased within this state.

Source:Laws 1992, LB 871, § 53;    Laws 1993, LB 345, § 49;    Laws 1994, LB 977, § 6;    Laws 2002, LB 1085, § 15.    


77-2704.31. Sales or use tax paid in another state; credit given.

If any person who causes property or service to be brought into this state has already paid a tax in another state with respect to the sale or use of such property or service in an amount less than the tax imposed by sections 13-319, 13-2813, 77-2703, 77-27,142, and 77-6403, the provisions of subsection (2) of section 77-2703 shall apply, but at a rate measured by the difference only between the rate imposed by such sections and the rate by which the previous tax on the sale or use was computed. If such tax imposed and paid in such other state is equal to or more than the tax imposed by such sections, then no use tax shall be due in this state on such property if such other state, territory, or possession grants a reciprocal exclusion or exemption to similar transactions in this state.

Source:Laws 1992, LB 871, § 54;    Laws 1993, LB 345, § 50;    Laws 1999, LB 34, § 2;    Laws 2001, LB 142, § 55;    Laws 2002, LB 1085, § 16;    Laws 2019, LB472, § 12.    


77-2704.32. Projects outside the United States; refund of tax.

When a written contract exists for a construction, alteration, or improvement project outside the United States or its territories or possessions, a contractor may apply for a refund of the sales and use tax paid to the State of Nebraska on building materials actually annexed to real estate in the project outside of the United States or its territories or possessions.

Source:Laws 1992, LB 871, § 56;    Laws 1993, LB 345, § 51;    Laws 2004, LB 1017, § 15.    


77-2704.33. Fixed-price contract; change in sales tax rate; refund of tax; failure to pay tax; penalty.

(1) When a written contract exists for a fixed price for a construction, reconstruction, alteration, or improvement project and the sales tax rate is increased during the term of that fixed-price contract, the contractor may apply for a refund of the increased sales tax amount if such refund amount exceeds ten dollars. The contractor shall be refunded such increased amount if the contractor certifies that the contract was entered into prior to the increase in the tax and that the increased tax for which the refund is requested was paid on the building materials annexed to real estate in the project. The contractor shall agree to submit a copy of the contract or other evidence necessary to prove the validity of the application to the satisfaction of the Tax Commissioner. In the event that the sales tax rate is decreased during the term of that fixed-price contract, the contractor shall pay to the Department of Revenue the decreased sales tax amount if the amount of such payment exceeds ten dollars. Failure by a contractor to pay the decreased sales tax amount as provided in this subsection shall be a Class I misdemeanor if the amount is three hundred dollars or more and a Class IIIA misdemeanor in all other cases.

(2) In the event that construction services are removed from the sales and use tax base during the term of a fixed-price contract, the taxpayer shall pay to the Department of Revenue the decreased sales tax amount if the amount of such payment exceeds ten dollars. Failure by a taxpayer to pay the decreased sales tax amount as provided in this subsection shall be a Class I misdemeanor if the amount is three hundred dollars or more and a Class IIIA misdemeanor in all other cases.

Source:Laws 1992, LB 871, § 57;    Laws 1993, LB 345, § 52;    Laws 2003, LB 759, § 18;    Laws 2004, LB 1017, § 16;    Laws 2007, LB367, § 17.    


77-2704.34. Tax included in sale price; authorized.

For purposes of the sales or use tax, if a retailer establishes to the satisfaction of the Tax Commissioner, and has been given prior approval by the Tax Commissioner, that the sales or use tax has been added to the total amount of the sale price and has not been absorbed by him or her, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed.

Source:Laws 1992, LB 871, § 58.    


77-2704.35. Agents treated as vendors; joint responsibility.

When the Tax Commissioner determines that it is necessary for the efficient administration of the Nebraska Revenue Act of 1967 to regard any salespersons, representatives, peddlers, canvassers, or auctioneers and persons conducting auction sales as the agents of the dealers, distributors, supervisors, or employers under whom they operate or from whom they obtain the property sold by them irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors, auctioneers, or employers, the Tax Commissioner may, at his or her discretion, treat such agent as the vendor jointly responsible with his or her principal, distributor, supervisor, or employer for the purposes of the Nebraska Revenue Act of 1967.

Source:Laws 1992, LB 871, § 59;    Laws 1993, LB 345, § 53.    


77-2704.36. Agricultural machinery and equipment; net wrap, bailing wire, and twine; exemption.

(1) Sales and use tax shall not be imposed on the gross receipts from the sale, lease, or rental of:

(a) Depreciable agricultural machinery and equipment purchased, leased, or rented on or after January 1, 1993, for use in commercial agriculture; or

(b) Net wrap, baling wire, and twine purchased for use in commercial agriculture.

(2) For purposes of this section:

(a)(i) Agricultural machinery and equipment means tangible personal property that is used directly in (A) cultivating or harvesting a crop, (B) raising or caring for animal life, (C) protecting the health and welfare of animal life, including fans, curtains, and climate control equipment within livestock buildings, or (D) collecting or processing an agricultural product on a farm or ranch, regardless of the degree of attachment to any real property; and

(ii) Agricultural machinery and equipment includes, but is not limited to, header trailers, head haulers, header transports, and seed tender trailers and excludes any current tractor model as defined in section 2-2701.01 not permitted for sale in Nebraska pursuant to sections 2-2701 to 2-2711;

(b) Baling wire means wire used in the baling of livestock feed or bedding;

(c) Net wrap means plastic wrap used in the baling of livestock feed or bedding; and

(d) Twine means a strong string of two or more strands twisted together used in the baling of livestock feed or bedding.

Source:Laws 1992, Fourth Spec. Sess., LB 1, § 24;    Laws 2004, LB 1017, § 17;    Laws 2012, LB907, § 6;    Laws 2021, LB595, § 6;    Laws 2022, LB984, § 5;    Laws 2023, LB727, § 65.    
Operative Date: October 1, 2023


77-2704.37. Repealed. Laws 2004, LB 841, § 13.

77-2704.38. State lottery tickets; exemption.

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 lottery tickets purchased pursuant to the State Lottery Act.

Source:Laws 1993, LB 138, § 70.    


Cross References

77-2704.39. Copyrighted material; used for rebroadcasting; exemption.

Sales and use taxes shall not be imposed on the gross receipts from the sale, lease, license, or rental of or the storage, use, or other consumption in this state of personal property containing copyrighted material if the purchaser, lessee, licensee, or renter is operating under a certificate from the Federal Communications Commission and possesses such personal property for rebroadcasting to the general public, regardless of whether the property is in the form of satellite transmissions, films, records, tapes, discs, or other media.

Source:Laws 1994, LB 901, § 3.    


77-2704.40. Molds, dies, and patterns; exemption.

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 molds, dies, and patterns which have been specifically designed and fabricated to the special order of the customer. This exemption shall not include machinery, equipment, or tools to which molds, dies, and patterns have been connected or attached in order to be used for their intended purpose. For purposes of this section, molds, dies, and patterns shall mean tools that are built specifically for manufacturing a single product, which product is either injection molded from plastic or stamped from metals.

Source:Laws 1995, LB 430, § 1.    


77-2704.41. Feed, water, veterinary medicines, and agricultural chemicals; exemption.

(1) 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 feed, water, veterinary medicines, and agricultural chemicals for consumption by, to be used on, or which are otherwise used in caring for any form of animal life of a kind the products of which ordinarily constitute food for human consumption or of a kind the pelts of which ordinarily are used for human apparel.

(2) For purposes of this section:

(a) Agricultural chemicals shall include insecticides, fungicides, growth-regulating chemicals, and hormones;

(b) Feed shall include all grains, minerals, salts, proteins, fats, fibers, vitamins, and grit commonly used as feed or feed supplements; and

(c) Veterinary medicines shall include medicines for the prevention or treatment of disease or injury.

Source:Laws 1996, LB 106, § 1.    


77-2704.42. Copies of public records; exemption; exception.

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 copies of public records as defined in section 84-712.01, except those documents developed, produced, or acquired and made available for commercial sale to the general public if the price or reproduction cost of the document is not fixed by state law, rule, or regulation.

Source:Laws 2002, LB 57, § 3.    


77-2704.43. Industrial machinery and equipment; reciprocal exemption.

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 purchases of industrial machinery and equipment, including parts for repairs, by another state or a political subdivision of another state if the other state provides a similar reciprocal exemption for this state and political subdivisions of this state.

Source:Laws 2003, LB 168, § 2.    


77-2704.44. Use tax; when imposed.

(1) Except for a transaction that is subject to sales tax under the Nebraska Revenue Act of 1967, use tax shall not be imposed on the keeping, retaining, or exercising of any right or power over property for the purpose of subsequently transporting it outside the state or for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other property to be transported outside the state and thereafter used solely outside the state.

(2)(a) Except as provided in subdivisions (b) through (e) of this subsection, when a person purchases property in another state, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any foreign country with the intent of using such property in such other state, commonwealth, territory, possession, or country and such property is actually used in the other state, commonwealth, territory, possession, or country for its intended purpose, the property shall not be subject to tax in this state.

(b) Subdivision (a) of this subsection only applies to a motor vehicle, semitrailer, or trailer as defined in the Motor Vehicle Registration Act when it is licensed for operation on the highways of the other state, commonwealth, territory, possession, or country prior to being brought into this state. Licensed for operation on the highways does not include any temporary registration, licensing, or in transit procedure that allows nonresidents to operate the motor vehicle, semitrailer, or trailer on the highways of the other state, commonwealth, territory, possession, or country for a limited time with the intent to remove the motor vehicle, trailer, or semitrailer from the other state, commonwealth, territory, possession, or country.

(c) Subdivision (a) of this subsection does not apply to an aircraft which is brought into this state within one year after purchase and (i) is regularly based within this state or (ii) more than one-half of the aircraft's operating hours are within this state. For purposes of this subdivision, operation of the aircraft for the purpose of maintenance, repair, or fabrication with subsequent removal from this state upon completion of such maintenance, repair, or fabrication shall not be considered operating hours.

(d) Subdivision (a) of this subsection shall only apply to a motorboat as defined in section 37-1204 when it is registered for operation in the other state, commonwealth, territory, possession, or country prior to being brought into this state.

(e) Subdivision (a) of this subsection does not apply to any property that is manufactured, processed, or fabricated in another state and that is not used for its intended purpose in the other state after its manufacture, processing, or fabrication.

Source:Laws 2003, LB 282, § 59;    Laws 2005, LB 274, § 276.    


Cross References

77-2704.45. Ingredient or component parts; exemption.

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) Property which will enter into and become an ingredient or component part of property manufactured, processed, or fabricated for ultimate sale at retail; or

(2) A service listed in subsection (4) of section 77-2701.16 which will become an ingredient or component part of a service listed in subsection (4) of section 77-2701.16 for ultimate sale at retail.

Source:Laws 2003, LB 282, § 60;    Laws 2003, LB 759, § 19;    Laws 2008, LB916, § 19.    


77-2704.46. Food for human consumption; agricultural components; oxygen for aquaculture; exemption.

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) Any form of animal life of a kind the products of which ordinarily constitute food for human consumption. Animal life includes live poultry, other species of game birds subject to permit and regulation by the Game and Parks Commission, and livestock on the hoof when sales are made by the grower, producer, feeder, or any person engaged in the business of bartering, buying, or selling live poultry, other species of game birds subject to permit and regulation by the Game and Parks Commission, or livestock on the hoof;

(2) Seeds and annual plants, the products of which ordinarily constitute food for human consumption and which seeds and annual plants are sold to commercial producers of such products, and seed legumes, seed grasses, and seed grains when sold to be used exclusively for agricultural purposes;

(3) Agricultural chemicals, adjuvants, surfactants, bonding agents, clays, oils, and any other additives or compatibility agents for use in commercial agriculture and applied to land or crops and sold in any tax period that has not been closed by the applicable statute of limitations. Agricultural chemicals does not mean chemicals, adjuvants, surfactants, bonding agents, clays, oils, and any other additives or compatibility agents applied to harvested grains stored in commercial elevators; or

(4) Oxygen for use in aquaculture as defined in section 2-3804.01.

Source:Laws 2003, LB 282, § 61;    Laws 2008, LB916, § 20.    


77-2704.47. Containers; exemption.

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) Nonreturnable containers when sold without contents to persons who place contents in the container and sell the contents together with the container;

(2) Containers when sold with contents if the sales price of the contents is not required to be included in the measure of the taxes imposed by the Nebraska Revenue Act of 1967; and

(3) Returnable containers when sold with contents in connection with a retail sale of the contents or when resold for refilling.

For purposes of this section, returnable containers means containers of a kind customarily returned by the buyer of the contents for reuse. All other containers are nonreturnable containers.

Source:Laws 2003, LB 282, § 62.    


77-2704.48. Occasional sale; exemption.

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 property or services the transfer of which to the consumer constitutes an occasional sale or the transfer of which to the consumer is made by way of an occasional sale.

Source:Laws 2003, LB 282, § 63.    


77-2704.49. Reciprocal exemption.

Sales tax 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 property or services the sale, purchase, or use of which has been taxed to that taxpayer in another state, territory, or possession of the United States when such other state, territory, or possession grants a reciprocal exclusion or an exemption to similar transactions in this state.

Source:Laws 2003, LB 282, § 64;    Laws 2004, LB 1017, § 18.    


77-2704.50. Railroad rolling stock; common or contract carrier; exemption.

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 from the purchase in this state or the purchase outside this state, with title passing in this state, of materials and replacement parts and any associated labor used as or used directly in the repair and maintenance or manufacture of railroad rolling stock, whether owned by a railroad or by any person, whether a common or contract carrier or otherwise, motor vehicles, watercraft, or aircraft engaged as common or contract carriers or the purchase in such manner of motor vehicles, watercraft, or aircraft to be used as common or contract carriers. All purchasers seeking to take advantage of the exemption shall apply to the Tax Commissioner for a common or contract carrier exemption. All common or contract carrier exemption certificates shall expire on October 31, 2013, and on October 31 every five years thereafter. All persons seeking to continue to take advantage of the common or contract carrier exemption shall apply for a new certificate at the expiration of the prior certificate. The Tax Commissioner shall notify such exemption certificate holders at least sixty days prior to the expiration date of such certificate that the certificate will expire and be null and void as of such date.

Source:Laws 2003, LB 282, § 65;    Laws 2011, LB210, § 7.    


77-2704.51. Telecommunications services or dark fiber between telecommunications companies; exemption.

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) Telecommunications service between telecommunications companies, including division of revenue, settlements, or carrier access charges; or

(2) Dark fiber as defined in section 86-574 between telecommunications companies.

Source:Laws 2003, LB 282, § 66;    Laws 2018, LB994, § 6.    


77-2704.52. Prepaid calling service or prepaid wireless calling service; exemption.

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 services rendered using a prepaid calling service or a prepaid wireless calling service.

Source:Laws 2003, LB 282, § 67;    Laws 2009, LB165, § 9.    


77-2704.53. Videotape and film rentals; satellite programming and service; exemption.

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 from the sale or rental of videotape and film rentals, satellite programming, and satellite programming service when the sales tax or the admission tax is charged under the Nebraska Revenue Act of 1967 and except as provided in section 77-2704.39.

Source:Laws 2003, LB 282, § 68.    


77-2704.54. Purchase by electronic benefits transfer or food coupons; exemption.

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 from the sale or rental of food or food ingredients which are actually purchased by electronic benefits transfer or with food coupons under regulations issued by the United States Department of Agriculture.

Source:Laws 2003, LB 282, § 69.    


77-2704.55. Certain contractor labor; refund; procedure; Department of Revenue Contractor Enforcement Fund; created; investment.

(1) Construction services performed on an owner-occupied residential unit shall be subject to tax prior to October 1, 2007, but the owner shall be entitled to a refund of any sales and use taxes paid by the owner on construction services pursuant to this subsection. A taxpayer shall be entitled to a refund of any sales tax paid on the gross receipts for the labor of a contractor for any major addition, remodeling, restoration, repair, or renovation described in this section as it existed prior to October 1, 2007. The refund granted in this subsection shall be conditioned upon filing a claim for the refund on a form developed by the Tax Commissioner. The requirements imposed by the Tax Commissioner shall be related to ensuring that the project qualifies for the refund. Any information received pursuant to the requirements of this subsection may be disclosed to any tax official in this state. Any taxpayer who provides false information on the forms required by the Tax Commissioner for purposes of this subsection shall be subject to the penalties provided in subsection (8) of section 77-2705.

(2) The Department of Revenue Contractor Enforcement Fund is created. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 2003, LB 285, § 2;    Laws 2003, LB 759, § 17;    Laws 2004, LB 1017, § 19;    Laws 2006, LB 968, § 6;    Laws 2007, LB367, § 18.    


Cross References

77-2704.56. Purchase of certain property or fine art by museum; exemption.

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 purchases of property as defined in subdivision (8) of section 51-702 or fine art by any museum as defined in subdivision (6) of section 51-702.

Source:Laws 2006, LB 1189, § 3;    Laws 2016, LB774, § 6.    


77-2704.57. Personal property used in C-BED project or community-based energy development project; exemption; Tax Commissioner; powers and duties; Department of Revenue; recover tax not paid.

(1) Sales and use tax shall not be imposed on the gross receipts from the sale, lease, or rental of personal property for use in a C-BED project or community-based energy development project. This exemption shall be conditioned upon filing requirements for the exemption as imposed by the Tax Commissioner. The requirements imposed by the Tax Commissioner shall be related to ensuring that the property purchased qualifies for the exemption. The Tax Commissioner may require the filing of the documents showing compliance with section 70-1907, the organization of the project, the distribution of the payments, the power purchase agreements, the project pro forma, articles of incorporation, operating agreements, and any amendments or changes to these documents during the life of the power purchase agreement.

(2) The Tax Commissioner shall notify an electric supplier that has a power purchase agreement with a C-BED project if there is a change in project ownership which makes the project no longer eligible as a C-BED project. Purchase of a C-BED project by an electric supplier prior to the end of the power purchase agreement disqualifies the C-BED project for the exemption, but the Department of Revenue may not recover the amount of the sales and use tax that was not paid by the project prior to the purchase.

(3) For purposes of this section, the terms (a) C-BED project or community-based energy development project, (b) electric supplier, (c) gross power purchase agreement payments, (d) payments to the local community, and (e) qualified owner have the definitions found in section 70-1903.

(4) The Department of Revenue may examine the actual payments and the distribution of the payments to determine if the projected distributions were met. If the payment distributions to qualified owners do not meet the requirements of this section, the department may recover the amount of the sales or use tax that was not paid by the project at any time up until the end of three years after the end of the power purchase agreement.

(5) At any time prior to the end of the power purchase agreements, the project may voluntarily surrender the exemption granted by the Tax Commissioner and pay the amount of sales and use tax that would otherwise have been due.

(6) The amount of the tax due under either subsection (4) or (5) of this section shall be increased by interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, from the date the tax would have been due if no exemption was granted until the date paid.

Source:Laws 2007, LB367, § 11;    Laws 2008, LB916, § 21;    Laws 2009, LB561, § 5;    Laws 2010, LB888, § 103;    Laws 2012, LB828, § 18;    Laws 2013, LB283, § 5;    Laws 2014, LB402, § 4;    Laws 2016, LB736, § 6.    


77-2704.58. Depositions, bills of exceptions, and transcripts sold by court reporter; exemption.

Sales and use taxes shall not be imposed on the gross receipts from the sale, use, or other consumption in this state of depositions, bills of exceptions, and transcripts or copies of such depositions, bills of exceptions, and transcripts prepared and sold by a court reporter.

Source:Laws 2008, LB916, § 22.    


77-2704.59. Medical records; exemption.

Sales and use taxes shall not be imposed on the gross receipts from the sale, use, or other consumption in this state of copies of medical records provided to the patient or a person holding such patient's power of attorney for health care.

Source:Laws 2008, LB916, § 23.    


77-2704.60. Mineral oil applied to grain as dust suppressant; exemption.

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 mineral oil to be applied to grain as a dust suppressant.

Source:Laws 2009, LB9, § 1.    


77-2704.61. Biochips; exemption.

(1) 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 biochips used for the purposes of conducting genotyping or the analysis of gene expression, protein expression, genomic sequencing, or protein profiling of plants, animals, or nonhuman laboratory research model organisms.

(2) For purposes of this section, a biochip is a solid substrate upon or into which is incorporated specific genetic or protein information or chemicals that are queried through one or more chemical interactions allowing (a) an isolation of one or more single nucleotide polymorphisms which constitute an animal or plant genotype, (b) an expression profile which measures activity of genes or the presence of proteins, or (c) a detailed genomic sequence or protein profile. The specific genetic or protein information or chemicals incorporated upon or into the biochip are consumed in the process of conducting the analysis.

Source:Laws 2012, LB830, § 3.    


77-2704.62. Data center; exemption.

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 tangible personal property and services acquired by a person operating a data center located in this state that are assembled, engineered, processed, fabricated, manufactured into, attached to, or incorporated into other tangible personal property for the purpose of subsequent use at a physical location outside this state. Such exemption extends to keeping, retaining, or exercising any right or power over such tangible personal property in this state for the purpose of subsequently transporting it outside this state for use thereafter outside this state.

Source:Laws 2012, LB1080, § 5.    


77-2704.63. Youth sports event, youth sports league, or youth competitive educational activity; exemption.

(1) Sales and use taxes shall not be imposed on the gross receipts from the sale, use, or other consumption of amounts charged to participate in a youth sports event, youth sports league, or youth competitive educational activity by political subdivisions or organizations that are exempt from income tax under section 501(c)(3) of the Internal Revenue Code.

(2) For purposes of this section:

(a) Competitive educational activity means a tournament or a single competition that occurs over a limited period of time annually or intermittently where the participants engage in a competitive educational activity;

(b) Sports event means a tournament or a single competition that occurs over a limited period of time annually or intermittently where the participants engage in a sport;

(c) Sports league means an organized series of sports competitions taking place over several weeks or months between teams or individuals that are members of the league; and

(d) Youth sports event, youth sports league, or youth competitive educational activity means an event, league, or activity that is restricted to participants who are less than nineteen years of age.

Source:Laws 2012, LB727, § 37.    


77-2704.64. Repair or replacement parts for agricultural machinery and equipment used in commercial agriculture; exemption.

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 repair or replacement parts for agricultural machinery and equipment used in commercial agriculture.

Source:Laws 2014, LB96, § 3.    


77-2704.65. Historic automobile museum; exemption.

(1) 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 purchases by any historic automobile museum of items which are displayed or held for display by such historic automobile museum and which are reasonably related to the general purpose of such historic automobile museum.

(2) For purposes of this section, historic automobile museum means a museum as defined in section 51-702 that:

(a) Is used to maintain and exhibit to the public a collection of at least one hundred fifty motor vehicles; and

(b) Was open to the public an average of four or more hours per week during the previous calendar year.

(3) A museum in its first year of existence may qualify as a historic automobile museum under this section without complying with subdivision (2)(b) of this section if all other requirements of subsection (2) of this section are met.

(4) If a museum that has claimed an exemption under this section fails to qualify as a historic automobile museum, such museum shall be subject to a deficiency determination under section 77-2709 and notice of such deficiency determination may be served or mailed within the applicable period provided in subdivision (5)(c) of section 77-2709.

Source:Laws 2014, LB867, § 13.    


77-2704.66. Currency or bullion; exemption.

(1) 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 currency or bullion.

(2) For purposes of this section:

(a) Bullion means bars, ingots, or commemorative medallions of gold, silver, platinum, or palladium, or a combination of these, for which the value of the metal depends on its content and not the form; and

(b) Currency means a coin or currency made of gold, silver, or other metal or paper which is or has been used as legal tender.

Source:Laws 2014, LB867, § 14.    


77-2704.67. Membership or admission to or purchase by zoo or aquarium; exemption.

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 any sale of a membership in or an admission to or any purchase by a nationally accredited zoo or aquarium operated by a public agency or nonprofit corporation primarily for educational, scientific, or tourism purposes.

Source:Laws 2015, LB419, § 3.    


77-2704.68. Residential water service; exemption.

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 residential water service.

Source:Laws 2021, LB26, § 4.    


77-2704.69. Catalysts, chemicals, and materials used in the process of manufacturing ethyl alcohol; exemption.

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 all catalysts, chemicals, and materials used in the process of manufacturing ethyl alcohol and the production of coproducts.

Source:Laws 2021, LB595, § 7.    


77-2704.70. Feminine hygiene products; exemption.

(1) Sales and use taxes shall not be imposed on the gross receipts from the sale, storage, use, or other consumption in this state of feminine hygiene products.

(2) For purposes of this section:

(a) Feminine hygiene products means tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property designed for feminine hygiene in connection with the human menstrual cycle but does not include grooming and hygiene products; and

(b) Grooming and hygiene products means soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions and screens, regardless of whether the items meet the definition of over-the-counter drug in section 77-2704.09.

Source:Laws 2022, LB984, § 6.    


77-2705. Sales and use tax; retailer; registration; permit; form; revocation; restoration; appeal; exempt sale certificate; violations; penalty; wrongful disclosure; online registration system.

(1) Except as provided in subsection (10) of this section, every retailer shall register with the Tax Commissioner and give:

(a) The name and address of all agents operating in this state;

(b) The location of all distribution or sales houses or offices or other places of business in this state;

(c) The name and address of any officer, director, partner, limited liability company member, or employee, other than an employee whose duties are purely ministerial in nature, or any person with a substantial interest in the applicant, who is or who will be responsible for the collection or remittance of the sales tax;

(d) Such other information as the Tax Commissioner may require; and

(e) If the retailer is an individual, his or her social security number.

(2) Every person furnishing public utility service as defined in subsection (2) of section 77-2701.16 shall register with the Tax Commissioner and give:

(a) The address of each office open to the public in which such public utility service business is transacted with consumers; and

(b) Such other information as the Tax Commissioner may require.

(3)(a) It shall be unlawful for any person to engage in or transact business as a seller within this state after June 1, 1967, unless a permit or permits shall have been issued to him or her as prescribed in this section.

(b) Every person desiring to engage in or to conduct business as a seller within this state shall file with the Tax Commissioner an application for a permit for each place of business. There shall be no charge to the retailer for the application for or issuance of a permit except as otherwise provided in this section.

(c) If a retailer becomes engaged in business in this state during a calendar year by exceeding one of the thresholds in subsection (2) or (3) of section 77-2701.13 for the first time, the retailer must obtain a permit and begin collecting the sales tax on or before the first day of the second calendar month after the threshold was exceeded. Such retailer shall also be subject to the Local Option Revenue Act and sections 13-319 and 13-2813 and shall collect and remit the sales tax due under such act and sections.

(4) Every application for a permit shall:

(a) Be made upon a form prescribed by the Tax Commissioner;

(b) Set forth the name under which the applicant transacts or intends to transact business and the location of his or her place or places of business;

(c) Set forth such other information as the Tax Commissioner may require; and

(d) Be signed by the owner and include his or her social security number if he or she is a natural person; in the case of an association or partnership, by a member or partner; in the case of a limited liability company, by a member or some person authorized by the limited liability company to sign such kinds of applications; and in the case of a corporation, by an executive officer or some person authorized by the corporation to sign such kinds of applications.

(5) After compliance with subsections (1) through (4) of this section by the applicant, the Tax Commissioner shall grant and issue to each applicant a separate permit for each place of business within the state. A permit shall not be assignable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. It shall at all times be conspicuously displayed at the place for which issued and shall be valid and effective until revoked by the Tax Commissioner.

(6)(a) Whenever the holder of a permit issued under subsection (5) of this section or any person required to be identified in subdivision (1)(c) of this section (i) fails to comply with any provision of the Nebraska Revenue Act of 1967 relating to the retail sales tax or with any rule or regulation of the Tax Commissioner relating to such tax prescribed and adopted under such act, (ii) fails to provide for inspection or audit any book, record, document, or item required by law, rule, or regulation, or (iii) makes a misrepresentation of or fails to disclose a material fact to the Department of Revenue, the Tax Commissioner upon hearing, after giving the person twenty days' notice in writing specifying the time and place of hearing and requiring him or her to show cause why his or her permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person. The Tax Commissioner shall give to the person written notice of the suspension or revocation of any of his or her permits. The notices may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination.

(b) The Tax Commissioner shall have the power to restore permits which have been revoked but shall not issue a new permit after the revocation of a permit unless he or she is satisfied that the former holder of the permit will comply with the provisions of such act relating to the retail sales tax and the regulations of the Tax Commissioner. A seller whose permit has been previously suspended or revoked under this subsection shall pay the Tax Commissioner a fee of twenty-five dollars for the renewal or issuance of a permit in the event of a first revocation and fifty dollars for renewal after each successive revocation.

(c) The action of the Tax Commissioner may be appealed by the taxpayer in the same manner as a final deficiency determination.

(7) For the purpose of more efficiently securing the payment, collection, and accounting for the sales and use taxes and for the convenience of the retailer in collecting the sales tax, it shall be the duty of the Tax Commissioner to formulate and promulgate appropriate rules and regulations providing a form and method for the registration of exempt purchases and the documentation of exempt sales.

(8) If any person, firm, corporation, association, or agent thereof presents an exempt sale certificate to the seller for property which is purchased by a taxpayer or for a use other than those enumerated in the Nebraska Revenue Act of 1967 as exempted from the computation of sales and use taxes, the Tax Commissioner may, in addition to other penalties provided by law, impose, assess, and collect from the purchaser or the agent thereof a penalty of one hundred dollars or ten times the tax, whichever amount is larger, for each instance of such presentation and misuse of an exempt sale certificate. Such amount shall be in addition to any tax, interest, or penalty otherwise imposed.

(9) Any report, name, or information which is supplied to the Tax Commissioner regarding a violation specified in this section, including the identity of the informer, shall be subject to the pertinent provisions regarding wrongful disclosure in section 77-2711.

(10) Pursuant to the streamlined sales and use tax agreement, the state shall participate in an online registration system that will allow retailers to register in all the member states. The state hereby agrees to honor and abide by the retailer registration decisions made by the governing board pursuant to the agreement.

Source:Laws 1967, c. 487, § 5, p. 1553; Laws 1967, c. 490, § 4, p. 1663; Laws 1982, LB 928, § 65; Laws 1984, LB 962, § 9;    Laws 1992, LB 871, § 60;    Laws 1993, LB 121, § 502;    Laws 1993, LB 345, § 54;    Laws 1997, LB 752, § 212;    Laws 2002, Second Spec. Sess., LB 32, § 2;    Laws 2003, LB 282, § 70;    Laws 2003, LB 759, § 20;    Laws 2008, LB916, § 24;    Laws 2019, LB284, § 4.    


Cross References

77-2705.01. Direct payment permit; issuance; application; fee.

(1) The Tax Commissioner may issue direct payment permits to any person who annually purchases at least three million dollars of taxable property excluding purchases for which a resale certificate could be used.

(2) The applicant for a direct payment permit shall apply on a form prescribed by the Tax Commissioner. The applicant shall pay a nonrefundable fee of ten dollars for processing the application. The application shall include the agreement of the applicant to accrue and pay to the Tax Commissioner on or before the twentieth day of the month following the date of purchase, lease, or rental all sales and use taxes on the taxable property purchased, leased, or rented by the applicant unless the items are exempt from taxation and the tax paid will be treated as a sales tax. The Tax Commissioner may require a description of the accounting methods by which an applicant will differentiate between taxable and exempt transactions.

(3) The Tax Commissioner may issue a direct payment permit to any applicant who meets the requirements of subsections (1) and (2) of this section. The direct payment permit shall become effective on the first day of the month following approval of an application. The decision of the Tax Commissioner under this section is not appealable. An applicant who is denied a direct payment permit may submit an amended application or reapply.

(4) A direct payment permit is not transferable.

(5) The holder of a direct payment permit is not entitled to any collection fee otherwise payable to those who collect and remit sales and use taxes.

Source:Laws 1997, LB 182A, § 4;    Laws 2011, LB210, § 8.    


77-2705.02. Direct payment permit; rights and duties of holder.

The holder of a direct payment permit shall provide a copy of the permit to each retailer who sells, leases, or rents to the permitholder. The retailer shall not collect sales and use taxes on any future sales, leases, or rentals to the permitholder until notified that the permit has been revoked or relinquished. The direct payment permit may not be used for purchases of motor vehicles. The permitholder shall pay all sales and use taxes even on sales for which a refund could be obtained.

Source:Laws 1997, LB 182A, § 5.    


77-2705.03. Direct payment permit; revocation; relinquishment.

(1) The holder of a direct payment permit holds the permit as a revocable privilege. The Tax Commissioner may revoke a direct payment permit. The Tax Commissioner shall mail notice of revocation to the permitholder. The decision of the Tax Commissioner to revoke a direct payment permit is not appealable.

(2) A permitholder may voluntarily relinquish a direct payment permit.

(3) Upon revocation or relinquishment of a direct payment permit, the permitholder shall notify all retailers given copies of the permit that it has been revoked or relinquished. Failure to give the notice shall be treated as a failure to pay sales and use taxes.

Source:Laws 1997, LB 182A, § 6;    Laws 2012, LB727, § 40.    


77-2705.04. Record of sales tax permits; electronic access; fees.

The record of sales tax permits maintained by the Department of Revenue may be made available electronically through the portal established under section 84-1204. There shall be a fee of five dollars and fifty cents for a monthly listing of all new sales tax permits. All fees collected pursuant to this section for electronic access to records through the portal shall be deposited in the Records Management Cash Fund and shall be distributed as provided in any agreements between the State Records Board and the department.

Source:Laws 1998, LB 924, § 29;    Laws 2012, LB719, § 5.    


77-2705.05. Direct payment permit; managed compliance agreements; authorized.

(1) The Tax Commissioner may enter into managed compliance agreements with any holder of a direct payment permit pursuant to sections 77-2705.01 to 77-2705.03 if such holder also makes monthly remittances or payments of sales or use taxes by electronic funds transfer as authorized by section 77-1784.

(2) Such managed compliance agreements shall:

(a) Establish a percentage of purchases, or percentages for categories of purchases, that are presumed to be taxable such that the payment of tax on such percentage or percentages of purchases will result in substantially all of the sales and use tax liability being paid each year;

(b) Establish limits by which the amount of tax paid may vary from the estimated actual tax liability. Such limits may be either a percentage of the estimated actual tax liability or a dollar amount, but the agreed-upon limits must result in an amount between ninety-five percent and one hundred five percent of the estimated actual tax liability; and

(c) Require at least once a year the examination of the reasonableness of the percentage or percentages established in subdivision (a) of this subsection and determine the difference between the amount of sales and use taxes paid and the estimated actual tax liability.

(3) The Tax Commissioner shall adjust the percentage or percentages established in subdivision (2)(a) of this section for future periods as necessary to result in substantially all of the tax liability being paid each year.

(4) If the difference between the amount of sales and use taxes paid and the estimated actual tax liability is within the agreed-upon limits established in subdivision (2)(b) of this section, the percentages or amounts will be considered to have been reasonable for the preceding period, the tax liability shall be considered satisfied for such period, no additional tax payments shall be required for such period, and no refunds shall be allowed for such period. If such difference is not within the agreed-upon limits established in subdivision (2)(b) of this section, the difference shall be remitted to the state or refunded. Interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, shall be due on the underpayment or refund from the date of the last payment for the period until the date the amount is paid or refunded.

Source:Laws 2001, LB 169, § 1.    


77-2706. Sales and use tax; resale certificate; effect; exemption certificate; fee; penalty; wrongful disclosure.

(1) A resale certificate may be given by a purchaser who at the time of purchasing the property intends to sell, lease, or rent it in the regular course of business. A seller making repeated sales of the same type to the same purchaser shall not be required to take a separate resale certificate for each individual sale, but may, at his or her own risk, take a blanket certificate covering all such sales made to the same purchaser.

(2) The resale certificate shall be on such form and require the furnishing of such information as the Tax Commissioner may require by rule and regulation.

(3) If a purchaser who gives a resale certificate makes any use of the property other than retention, demonstration, or display while holding it for sale, lease, or rental in the regular course of business, the use shall be taxable to the purchaser as of the time when the property is first so used and the sales price of the property to him or her shall be deemed the measure of the tax.

(4) Any person who gives a resale certificate to the seller for property which he or she knows, at the time of purchase, is purchased for the purpose of use rather than for the purpose of resale, lease, or rental by him or her in the regular course of business and each officer of any corporation which so gives a resale certificate shall be guilty of a misdemeanor.

(5) If a purchaser gives a resale certificate with respect to the purchase of tangible goods and thereafter commingles such goods with other tangible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales from the mass of commingled goods shall be deemed to be sales of the goods covered by the resale certificate until a quantity of commingled goods equal to the quantity of such goods so commingled has been sold.

(6) Any person, firm, or corporation engaged in multistate operations and engaged as a common or contract carrier may apply to the Tax Commissioner for an exemption certificate which will permit such person or corporation to make purchases of any nature within this state or without this state and bring such purchases into this state for use both within and without this state, for storage in this state, and when withdrawn from storage to be used within or without the state without paying the sales or use tax thereon, until such articles, materials, or supplies or finished products are placed in use within this state. When such articles, materials, supplies, or finished products are used within this state, a person to whom such exemption certificate has been issued shall, on the last day of the first following month after which such articles, materials, supplies, or finished products are put to use within this state, make a report to the Tax Commissioner as to the amount of use or sales tax, if any, which is due the state and make the payments to the state at the time of making the return. If the Tax Commissioner, after investigation, finds that the applicant maintains satisfactory books of account and that granting such exemption would not result in the evasion or avoidance of any tax otherwise properly due, he or she shall issue such exemption certificate. Any person granted such an exemption certificate shall furnish a copy thereof to any vendor from whom purchases are made and such vendor may deliver any such purchases to the holder of any such certificate without collection of any such sales tax. The fee for such exemption certificate shall be ten dollars. The revenue from such fees shall be placed in the General Fund.

(7) If any person, firm, corporation, association, or the agent thereof presents a resale certificate to the seller for property which is purchased for a use other than for resale, lease, or rental by him or her in the regular course of business, the Tax Commissioner may impose, assess, and collect from the purchaser or the agent thereof a penalty of one hundred dollars or ten times the tax, whichever amount is larger, for each instance of such presentation and misuse of a resale certificate. This amount shall be in addition to any tax, interest, or penalty otherwise imposed.

Any report, name, or information which is supplied to the Tax Commissioner regarding a violation specified in this section, including the identity of the informer, shall be subject to the pertinent provisions regarding wrongful disclosure in section 77-2711.

Source:Laws 1967, c. 487, § 6, p. 1555; Laws 1969, c. 683, § 4, p. 2632; Laws 1982, LB 728, § 1; Laws 1982, LB 928, § 66; Laws 1984, LB 962, § 10;    Laws 1993, LB 345, § 55;    Laws 1994, LB 977, § 7.    


77-2706.01. Retailer of aircraft; use tax; option; election; conditions.

(1) Any retailer of aircraft, in lieu of paying tax pursuant to subsection (3) of section 77-2706, may elect to pay a use tax measured by the current sales and use tax rate applied against the total gross receipts realized from the use of such aircraft, except the receipts realized from transportation for hire as a common or contract carrier. If such election is made, it shall be made pursuant to the following conditions:

(a) Notice of the desire to make such election shall be filed with the Tax Commissioner and shall not become effective until the Tax Commissioner is satisfied that the taxpayer has complied with all of the conditions of this section and all rules and regulations of the Tax Commissioner;

(b) Such election when made shall continue in force and effect for a period of not less than two years and thereafter until such time as the retailer elects to terminate the election;

(c) Such election shall apply to all aircraft in inventory;

(d) When an aircraft to which such election is applicable is sold, destroyed, or otherwise removed from inventory, no deduction, credit, or refund of use tax paid pursuant to this section shall be taken or allowed; and

(e) The use tax imposed pursuant to this section is a tax upon the retailer so electing.

(2) The Tax Commissioner by rule and regulation shall prescribe the contents and form of the notice of election, the method and manner for terminating such election, and such other rules and regulations as may be necessary for the proper administration of this section.

Source:Laws 1980, LB 616, § 1; Laws 1984, LB 962, § 11;    Laws 1994, LB 977, § 8.    


77-2706.02. Construction contractor; buyer-based exemption; appointment of purchasing agent; procedure; failure; client; apply for refund.

(1) This section applies on and after July 1, 2026.

(2) The appointment of purchasing agents shall be recognized for the purpose of permitting a construction contractor to purchase materials tax free based on the buyer-based exemption of the contractor's client for items that are physically annexed to the structure and which subsequently belong to the client who is eligible for the buyer-based exemption. The appointment of purchasing agents shall be in writing and occur prior to having any buyer-based tax-exempt items annexed to real estate in the construction, improvement, or repair. The contractor who has been appointed as a purchasing agent may purchase the materials tax free or may apply for a refund of or use as a credit against a future use tax liability the tax paid on inventory items annexed to real estate in the construction, improvement, or repair of a project that belongs to the client who is eligible for the buyer-based exemption.

(3) A client described in subsection (2) of this section which enters into a contract of construction, improvement, or repair with respect to buyer-based tax-exempt items annexed to real estate without first issuing a purchasing agent authorization to a construction contractor prior to such items being annexed to real estate in the project may apply to the Tax Commissioner for a refund of any sales and use tax paid by the contractor on such items physically annexed to real estate in the construction, improvement, or repair.

Source:Laws 2023, LB727, § 66.    
Operative Date: June 7, 2023


77-2707. Sales and use tax; sale of business; liability for tax.

(1) If any person liable for any sales or use tax under the provisions of the Nebraska Revenue Act of 1967 sells out his business or stock of goods or quits the business, his successor or assign shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the Tax Commissioner showing that it has been paid or a certificate stating that no amount is due.

(2) If the purchaser of a business or stock of goods fails to withhold a portion of the purchase price as required, he shall become personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price, valued in money. Within sixty days after receiving a written request from the purchaser for a certificate, or within sixty days from the date the former owner's records are made available for audit, whichever period expires the later, the Tax Commissioner shall either issue the certificate or mail notice to the purchaser at his address as it appears on the records of the Tax Commissioner of the amount that must be paid as a condition of issuing the certificate. Failure of the Tax Commissioner to mail the notice shall release the purchaser from any further obligation to withhold a portion of the purchase price as provided in this subsection. The time within which the obligation of the successor may be enforced shall start to run at the time the former owner sells out his business or stock of goods or at the time that the determination against the former owner becomes final, whichever event occurs the later.

Source:Laws 1967, c. 487, § 7, p. 1557.


Annotations

77-2708. Sales and use tax; returns; date due; failure to file; penalty; deduction; amount; claim for refund; allowance; disallowance; proceedings; Tax Commissioner; duties regarding refund.

(1)(a) The sales and use taxes imposed by the Nebraska Revenue Act of 1967 shall be due and payable to the Tax Commissioner monthly on or before the twentieth day of the month next succeeding each monthly period unless otherwise provided pursuant to the Nebraska Revenue Act of 1967.

(b)(i) On or before the twentieth day of the month following each monthly period or such other period as the Tax Commissioner may require, a return for such period, along with all taxes due, shall be filed with the Tax Commissioner in such form and content as the Tax Commissioner may prescribe and containing such information as the Tax Commissioner deems necessary for the proper administration of the Nebraska Revenue Act of 1967. The Tax Commissioner, if he or she deems it necessary in order to insure payment to or facilitate the collection by the state of the amount of sales or use taxes due, may require returns and payment of the amount of such taxes for periods other than monthly periods in the case of a particular seller, retailer, or purchaser, as the case may be. The Tax Commissioner shall by rule and regulation require reports and tax payments from sellers, retailers, or purchasers depending on their yearly tax liability. Except as required by the streamlined sales and use tax agreement, annual returns shall be required if such sellers', retailers', or purchasers' yearly tax liability is less than nine hundred dollars, quarterly returns shall be required if their yearly tax liability is nine hundred dollars or more and less than three thousand dollars, and monthly returns shall be required if their yearly tax liability is three thousand dollars or more. The Tax Commissioner shall have the discretion to allow an annual return for seasonal retailers, even when their yearly tax liability exceeds the amounts listed in this subdivision.

The Tax Commissioner may adopt and promulgate rules and regulations to allow annual, semiannual, or quarterly returns for any retailer making monthly remittances or payments of sales and use taxes by electronic funds transfer or for any retailer remitting tax to the state pursuant to the streamlined sales and use tax agreement. Such rules and regulations may establish a method of determining the amount of the payment that will result in substantially all of the tax liability being paid each quarter. At least once each year, the difference between the amount paid and the amount due shall be reconciled. If the difference is more than ten percent of the amount paid, a penalty of fifty percent of the unpaid amount shall be imposed.

(ii) For purposes of the sales tax, a return shall be filed by every retailer liable for collection from a purchaser and payment to the state of the tax, except that a combined sales tax return may be filed for all licensed locations which are subject to common ownership. For purposes of this subdivision, common ownership means the same person or persons own eighty percent or more of each licensed location. For purposes of the use tax, a return shall be filed by every retailer engaged in business in this state and by every person who has purchased property, the storage, use, or other consumption of which is subject to the use tax, but who has not paid the use tax due to a retailer required to collect the tax.

(iii) The Tax Commissioner may require that returns be signed by the person required to file the return or by his or her duly authorized agent but need not be verified by oath.

(iv) A taxpayer who keeps his or her regular books and records on a cash basis, an accrual basis, or any generally recognized accounting basis which correctly reflects the operation of the business may file the sales and use tax returns required by the Nebraska Revenue Act of 1967 on the same accounting basis that is used for the regular books and records, except that on credit, conditional, and installment sales, the retailer who keeps his or her books on an accrual basis may report such sales on the cash basis and pay the tax upon the collections made during each month. If a taxpayer transfers, sells, assigns, or otherwise disposes of an account receivable, he or she shall be deemed to have received the full balance of the consideration for the original sale and shall be liable for the remittance of the sales tax on the balance of the total sale price not previously reported, except that such transfer, sale, assignment, or other disposition of an account receivable by a retailer to a subsidiary shall not be deemed to require the retailer to pay the sales tax on the credit sale represented by the account transferred prior to the time the customer makes payment on such account. If the subsidiary does not obtain a Nebraska sales tax permit, the taxpayer shall obtain a surety bond in favor of the State of Nebraska to insure payment of the tax and any interest and penalty imposed thereon under this section in an amount not less than two times the amount of tax payable on outstanding accounts receivable held by the subsidiary as of the end of the prior calendar year. Failure to obtain either a sales tax permit or a surety bond in accordance with this section shall result in the payment on the next required filing date of all sales taxes not previously remitted. When the retailer has adopted one basis or the other of reporting credit, conditional, or installment sales and paying the tax thereon, he or she will not be permitted to change from that basis without first having notified the Tax Commissioner.

(c) Except as provided in the streamlined sales and use tax agreement, the taxpayer required to file the return shall deliver or mail any required return together with a remittance of the net amount of the tax due to the office of the Tax Commissioner on or before the required filing date. Failure to file the return, filing after the required filing date, failure to remit the net amount of the tax due, or remitting the net amount of the tax due after the required filing date shall be cause for a penalty, in addition to interest, of ten percent of the amount of tax not paid by the required filing date or twenty-five dollars, whichever is greater, unless the penalty is being collected under subdivision (1)(i), (1)(j)(i), or (1)(k)(i) of section 77-2703 by a county treasurer or the Department of Motor Vehicles, in which case the penalty shall be five dollars.

(d) The taxpayer shall deduct and withhold, from the taxes otherwise due from him or her on his or her tax return, three percent of the first five thousand dollars remitted each month to reimburse himself or herself for the cost of collecting the tax. Taxpayers filing a combined return as allowed by subdivision (1)(b)(ii) of this subsection shall compute such collection fees on the basis of the receipts and liability of each licensed location.

(e) A retailer that makes sales into Nebraska using a multivendor marketplace platform is relieved of its obligation to collect and remit sales taxes to Nebraska with regard to any sales taxes collected and remitted by the multivendor marketplace platform. Such a retailer must include all sales into Nebraska in its gross receipts in its return, but may claim credit for any sales taxes collected and remitted by the multivendor marketplace platform with respect to such retailer's sales. Such retailer is liable for the sales tax due on sales into Nebraska as provided in section 77-2704.35.

(f) A multivendor marketplace platform is relieved of its obligation to collect and remit the correct amount of state and local sales taxes to Nebraska to the extent that the multivendor marketplace platform can establish that the error was due to insufficient or incorrect information given to the multivendor marketplace platform by the seller and relied on by the multivendor marketplace platform. This subdivision shall not apply if the multivendor marketplace platform and the seller are related persons under either section 267(b) or (c) or section 707(b) of the Internal Revenue Code of 1986 or if the seller is also the multivendor marketplace platform operator.

(2)(a) If the Tax Commissioner determines that any sales or use tax amount, penalty, or interest has been paid more than once, has been erroneously or illegally collected or computed, or has been paid and the purchaser qualifies for a refund under section 77-2708.01, the Tax Commissioner shall set forth that fact in his or her records and the excess amount collected or paid may be credited on any sales, use, or income tax amounts then due and payable from the person under the Nebraska Revenue Act of 1967. Any balance may be refunded to the person by whom it was paid or his or her successors, administrators, or executors.

(b) No refund shall be allowed unless a claim therefor is filed with the Tax Commissioner by the person who made the overpayment or his or her attorney, executor, or administrator within three years from the required filing date following the close of the period for which the overpayment was made, within six months after any determination becomes final under section 77-2709, or within six months from the date of overpayment with respect to such determinations, whichever of these three periods expires later, unless the credit relates to a period for which a waiver has been given. Failure to file a claim within the time prescribed in this subsection shall constitute a waiver of any demand against the state on account of overpayment.

(c) Every claim shall be in writing on forms prescribed by the Tax Commissioner and shall state the specific amount and grounds upon which the claim is founded. No refund shall be made in any amount less than two dollars.

(d) The Tax Commissioner shall allow or disallow a claim within one hundred eighty days after it has been filed. A request for a hearing shall constitute a waiver of the one-hundred-eighty-day period. The claimant and the Tax Commissioner may also agree to extend the one-hundred-eighty-day period. If a hearing has not been requested and the Tax Commissioner has neither allowed nor disallowed a claim within either the one hundred eighty days or the period agreed to by the claimant and the Tax Commissioner, the claim shall be deemed to have been allowed.

(e) Within thirty days after disallowing any claim in whole or in part, the Tax Commissioner shall serve notice of his or her action on the claimant in the manner prescribed for service of notice of a deficiency determination.

(f) Within thirty days after the mailing of the notice of the Tax Commissioner's action upon a claim filed pursuant to the Nebraska Revenue Act of 1967, the action of the Tax Commissioner shall be final unless the taxpayer seeks review of the Tax Commissioner's determination as provided in section 77-27,127.

(g) Upon the allowance of a credit or refund of any sum erroneously or illegally assessed or collected, of any penalty collected without authority, or of any sum which was excessive or in any manner wrongfully collected, interest shall be allowed and paid on the amount of such credit or refund at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, from the date such sum was paid or from the date the return was required to be filed, whichever date is later, to the date of the allowance of the refund or, in the case of a credit, to the due date of the amount against which the credit is allowed, but in the case of a voluntary and unrequested payment in excess of actual tax liability or a refund under section 77-2708.01, no interest shall be allowed when such excess is refunded or credited.

(h) No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been duly filed.

(i) The Tax Commissioner may recover any refund or part thereof which is erroneously made and any credit or part thereof which is erroneously allowed by issuing a deficiency determination within one year from the date of refund or credit or within the period otherwise allowed for issuing a deficiency determination, whichever expires later.

(j)(i) Credit shall be allowed to the retailer, contractor, or repairperson for sales or use taxes paid pursuant to the Nebraska Revenue Act of 1967 on any deduction taken that is attributed to bad debts not including interest. Bad debt has the same meaning as in 26 U.S.C. 166, as such section existed on January 1, 2003. However, the amount calculated pursuant to 26 U.S.C. 166 shall be adjusted to exclude: Financing charges or interest; sales or use taxes charged on the purchase price; uncollectible amounts on property that remains in the possession of the seller until the full purchase price is paid; and expenses incurred in attempting to collect any debt and repossessed property.

(ii) Bad debts may be deducted on the return for the period during which the bad debt is written off as uncollectible in the claimant's books and records and is eligible to be deducted for federal income tax purposes. A claimant who is not required to file federal income tax returns may deduct a bad debt on a return filed for the period in which the bad debt is written off as uncollectible in the claimant's books and records and would be eligible for a bad debt deduction for federal income tax purposes if the claimant was required to file a federal income tax return.

(iii) If a deduction is taken for a bad debt and the debt is subsequently collected in whole or in part, the tax on the amount so collected must be paid and reported on the return filed for the period in which the collection is made.

(iv) When the amount of bad debt exceeds the amount of taxable sales for the period during which the bad debt is written off, a refund claim may be filed within the otherwise applicable statute of limitations for refund claims. The statute of limitations shall be measured from the due date of the return on which the bad debt could first be claimed.

(v) If filing responsibilities have been assumed by a certified service provider, the service provider may claim, on behalf of the retailer, any bad debt allowance provided by this section. The certified service provider shall credit or refund the full amount of any bad debt allowance or refund received to the retailer.

(vi) For purposes of reporting a payment received on a previously claimed bad debt, any payments made on a debt or account are applied first proportionally to the taxable price of the property or service and the sales tax thereon, and secondly to interest, service charges, and any other charges.

(vii) In situations in which the books and records of the party claiming the bad debt allowance support an allocation of the bad debts among the member states in the streamlined sales and use tax agreement, the state shall permit the allocation.

(3) Beginning July 1, 2020, if a refund claim under this section involves a refund of a tax imposed under the Local Option Revenue Act or section 13-319, 13-2813, or 77-6403 and the amount of such tax to be refunded is at least five thousand dollars, the Tax Commissioner shall notify the affected city, village, county, or municipal county of such claim within twenty days after receiving the claim. If the Tax Commissioner allows the claim and the refund of such tax is at least five thousand dollars, the Tax Commissioner shall notify the affected city, village, county, or municipal county of such refund and shall give the city, village, county, or municipal county the option of having such refund deducted from its tax proceeds in one lump sum or in twelve equal monthly installments. The city, village, county, or municipal county shall make its selection and shall certify the selection to the Tax Commissioner within twenty days after receiving notice of the refund. The Tax Commissioner shall then deduct such refund from the applicable tax proceeds in accordance with the selection when he or she deducts refunds pursuant to section 13-324, 13-2814, or 77-6403 or subsection (1) of section 77-27,144, whichever is applicable. This subsection shall not apply to any refund that is subject to subdivision (2)(a) or (2)(b)(ii) or subsection (3) or (4) of section 77-27,144.

Source:Laws 1967, c. 487, § 8, p. 1558; Laws 1967, c. 490, § 5, p. 1665; Laws 1969, c. 683, § 5, p. 2635; Laws 1976, LB 996, § 1; Laws 1981, LB 179, § 15;    Laws 1981, LB 167, § 51;    Laws 1982, Spec. Sess., LB 2, § 1; Laws 1983, LB 101, § 1;    Laws 1983, LB 571, § 2;    Laws 1984, LB 758, § 1;    Laws 1985, LB 715, § 7;    Laws 1985, LB 273, § 46;    Laws 1987, LB 775, § 15;    Laws 1987, LB 523, § 16;    Laws 1988, LB 1234, § 1;    Laws 1991, LB 829, § 23; Laws 1992, LB 1063, § 183; Laws 1992, Second Spec. Sess., LB 1, § 156;    Laws 1992, Fourth Spec. Sess., LB 1, § 28;    Laws 1993, LB 128, § 1;    Laws 1993, LB 345, § 56;    Laws 1995, LB 9, § 1;    Laws 1995, LB 118, § 1;    Laws 1996, LB 1041, § 7;    Laws 2002, Second Spec. Sess., LB 32, § 3;    Laws 2003, LB 282, § 71;    Laws 2005, LB 216, § 8;    Laws 2008, LB916, § 25;    Laws 2011, LB210, § 9;    Laws 2012, LB801, § 99;    Laws 2014, LB814, § 10;    Laws 2018, LB745, § 1;    Laws 2019, LB284, § 5;    Laws 2019, LB472, § 13;    Laws 2022, LB984, § 7;    Laws 2022, LB1150, § 2.    


Cross References

Annotations

77-2708.01. Depreciable repairs or parts for agricultural machinery or equipment; refund of sales or use taxes; procedure.

(1) Any purchaser of depreciable repairs or parts for agricultural machinery or equipment used in commercial agriculture may apply for a refund of all of the Nebraska sales or use taxes and all of the local option sales or use taxes paid prior to October 1, 2014, on the repairs or parts.

(2) The purchaser shall file a claim within three years after the date of purchase with the Tax Commissioner pursuant to section 77-2708. The information provided on a tax refund claim allowed under this section may be disclosed to any other tax official of this state.

Source:Laws 1992, LB 1063, § 181; Laws 1992, Second Spec. Sess., LB 1, § 154;    Laws 1992, Fourth Spec. Sess., LB 1, § 29;    Laws 1993, LB 345, § 57;    Laws 2003, LB 282, § 72;    Laws 2014, LB96, § 4.    


Annotations

77-2709. Sales and use tax; return; Tax Commissioner; deficiency determination; penalty; deficiency; notice; hearing; order.

(1) If the Tax Commissioner is not satisfied with the return or returns of the tax or the amount of tax required to be paid to the state by any person, he or she may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns or upon the basis of any information within his or her possession or which may come into his or her possession. One or more deficiency determinations of the amount due for one or more than one period may be made. To the amount of the deficiency determination for each period shall be added a penalty equal to ten percent thereof or twenty-five dollars, whichever is greater. In making a determination, the Tax Commissioner may offset overpayments for a period or periods, together with interest on the overpayments, against underpayments for other period or periods, against penalties, and against the interest on the underpayments.

The interest on underpayments and overpayments shall be computed in the manner set forth hereinafter.

(2) If any person fails to make a return, the Tax Commissioner shall make an estimate of the amount of the gross receipts of the person or, as the case may be, of the amount of the total sales, rent, or lease price of property sold, rented, or leased or purchased, by the person, the storage, use, or consumption of which in this state is subject to the use tax. The estimate shall be made for the period or periods in respect to which the person failed to make a return and shall be based upon any information which is in the Tax Commissioner's possession or may come into his or her possession. Upon the basis of this estimate, the Tax Commissioner shall compute and determine the amount required to be paid to the state, adding to the sum thus arrived at a penalty equal to ten percent thereof or twenty-five dollars, whichever is greater. One or more determinations may be made for one or more than one period.

(3) The amount of the determination of any deficiency exclusive of penalties shall bear interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, from the twentieth of the month following the period for which the amount should have been returned until the date of payment.

(4) If any part of a deficiency for which a deficiency determination is made is the result of fraud or an intent to evade the Nebraska Revenue Act of 1967 or authorized rules and regulations, a penalty of twenty-five percent of the amount of the determination or fifty dollars, whichever is greater, shall be added thereto.

(5)(a) Promptly after making his or her determination, the Tax Commissioner shall give to the person written notice of his or her determination.

(b) The notice may be served personally or by mail, and if by mail the notice shall be addressed to the person at his or her address as it appears in the records of the Tax Commissioner. In case of service by mail of any notice required by the Nebraska Revenue Act of 1967, the service is complete at the time of deposit in the United States post office.

(c) Every notice of a deficiency determination shall be personally served or mailed within three years after the last day of the calendar month following the period for which the amount is proposed to be determined or within three years after the return is filed, whichever period expires the later. In the case of a person failing to make a return, filing a false or fraudulent return with the intent to evade the sales or use tax, or omitting from a return an amount properly includable therein which is in excess of twenty-five percent of the amount of tax stated in the return, every notice of determination shall be mailed or personally served within six years after the last day of the calendar month following the period for which the amount is proposed to be determined.

(d) When, before the expiration of the time prescribed in this section for the mailing of a notice of deficiency determination, both the Tax Commissioner and the taxpayer have consented in writing to its mailing after such time, the notice of the deficiency determination may be mailed at any time prior to the expiration of the period agreed upon. The agreed-upon period may be extended by subsequent agreement, in writing, made before the expiration of the period previously agreed upon.

(6) When a business is discontinued, a determination may be made at any time thereafter within the periods specified in this section as to liability arising out of that business, irrespective of whether the determination is issued prior to the due date of the liability as otherwise specified in the Nebraska Revenue Act of 1967.

(7) Any person against whom a determination is made under subsections (1) and (2) of this section or any person directly interested may petition for a redetermination within sixty days after service upon the person of notice thereof. For the purposes of this subsection, a person is directly interested in a deficiency determination when such deficiency could be collected from such person. If a petition for redetermination is not filed within the sixty-day period, the determination becomes final at the expiration of the period.

(8) If a petition for redetermination is filed within the sixty-day period, the Tax Commissioner shall reconsider the determination and, if the person has so requested in his or her petition, shall grant the person an oral hearing and shall give him or her ten days' notice of the time and place of the hearing. The Tax Commissioner may continue the hearing from time to time as may be necessary.

(9) The Tax Commissioner may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the increase is asserted by the Tax Commissioner at or before the hearing, upon which assertion the petitioner shall be entitled to a thirty-day continuance of the hearing to allow him or her to obtain and produce further evidence applicable to the items upon which the increase is based.

(10) The order or decision of the Tax Commissioner upon a petition for redetermination shall become final thirty days after service upon the petitioner of notice thereof.

(11) All determinations made by the Tax Commissioner under the provisions of subsections (1) and (2) of this section are due and payable at the time they become final. If they are not paid when due and payable, a penalty of ten percent of the amount of the determination, exclusive of interest and penalties, shall be added thereto.

(12) Any notice required by this section shall be served personally or by mail in the manner prescribed in subsection (5) of this section.

Source:Laws 1967, c. 487, § 9, p. 1562; Laws 1969, c. 683, § 6, p. 2639; Laws 1976, LB 996, § 2; Laws 1981, LB 167, § 52;    Laws 1985, LB 273, § 47;    Laws 1992, Fourth Spec. Sess., LB 1, § 30;    Laws 1993, LB 345, § 58;    Laws 2008, LB914, § 7;    Laws 2011, LB210, § 10;    Laws 2014, LB851, § 12.    


Annotations

77-2709.01. Repealed. Laws 2007, LB 367, § 31.

77-2710. Sales and use tax; removal of personal property; concealment; Tax Commissioner; action.

(1) If the Tax Commissioner finds that a taxpayer is about to depart from the State of Nebraska, remove his or her personal property therefrom, conceal himself or herself or his or her personal property therein, or do any other act tending to delay, prejudice, or render wholly or partially ineffectual any proceedings to collect the sales or use tax for the preceding or current taxable year unless such proceedings be brought without delay, the Tax Commissioner shall declare the taxable period for such taxpayer immediately terminated, and shall cause notice of such findings and declaration to be given the taxpayer, together with a demand for immediate payment of any such tax due for this period, whether or not the time otherwise allowed by law for filing returns and paying such tax has expired. Such tax shall thereupon become immediately due and payable. In any proceedings in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section, such findings of the Tax Commissioner, whether made after notice to the taxpayer or not, shall be for all purposes prima facie evidence of the taxpayer's design.

(2) The person against whom a jeopardy determination is made may petition for the redetermination thereof pursuant to the provisions of section 77-2709. He or she shall file the petition for redetermination with the Tax Commissioner within ten days after the service upon him or her of notice of determination or the determination shall become final at the expiration of the ten-day period and the Tax Commissioner shall not reconsider the determination. The person shall also within the ten-day period deposit with the Tax Commissioner such security as the Tax Commissioner may deem necessary to insure compliance with the Nebraska Revenue Act of 1967. The security may, if necessary, be sold by the Tax Commissioner in the manner prescribed by the provisions of section 77-27,131.

(3) A taxpayer who is not in default in making any return or paying any sales or use taxes assessed under the Nebraska Revenue Act of 1967 may furnish to the Tax Commissioner, under regulations to be prescribed by the Tax Commissioner, security that he or she will duly make the return next thereafter required to be filed and pay such tax next thereafter required to be paid. The Tax Commissioner may approve and accept in like manner security for return and payment of sales or use taxes made due and payable by virtue of this section.

(4) If security is approved and accepted and such further or other security with respect to the tax or taxes covered thereby is given as the Tax Commissioner shall from time to time find necessary, the requirement for payment of such taxes shall not be enforced by any proceedings under this section prior to the expiration of the time otherwise allowed for paying such taxes.

(5) In the case of a bona fide resident of Nebraska about to depart from the state the Tax Commissioner may waive any or all of the requirements placed upon the taxpayer by this section.

(6) If a taxpayer violates or attempts to violate any provision of this section there shall, in addition to all other penalties, be added as part of the tax twenty-five percent of the total amount due or fifty dollars, whichever is greater.

(7) If the taxpayer ignores all demands for payment the Tax Commissioner may employ the services of any qualified collection agency or attorney and pay fees for such services out of any money recovered.

Source:Laws 1967, c. 487, § 10, p. 1564; Laws 1993, LB 161, § 3;    Laws 1994, LB 977, § 9.    


77-2711. Sales and use tax; Tax Commissioner; enforcement; records; retain; reports; wrongful disclosures; exceptions; information provided to municipality; penalty; waiver; streamlined sales and use tax agreement; confidentiality rights.

(1)(a) The Tax Commissioner shall enforce sections 77-2701.04 to 77-2713 and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of such sections.

(b) The Tax Commissioner may prescribe the extent to which any ruling or regulation shall be applied without retroactive effect.

(2) The Tax Commissioner may employ accountants, auditors, investigators, assistants, and clerks necessary for the efficient administration of the Nebraska Revenue Act of 1967 and may delegate authority to his or her representatives to conduct hearings, prescribe regulations, or perform any other duties imposed by such act.

(3)(a) Every seller, every retailer, and every person storing, using, or otherwise consuming in this state property purchased from a retailer shall keep such records, receipts, invoices, and other pertinent papers in such form as the Tax Commissioner may reasonably require.

(b) Every such seller, retailer, or person shall keep such records for not less than three years from the making of such records unless the Tax Commissioner in writing sooner authorized their destruction.

(4) The Tax Commissioner or any person authorized in writing by him or her may examine the books, papers, records, and equipment of any person selling property and any person liable for the use tax and may investigate the character of the business of the person in order to verify the accuracy of any return made or, if no return is made by the person, to ascertain and determine the amount required to be paid. In the examination of any person selling property or of any person liable for the use tax, an inquiry shall be made as to the accuracy of the reporting of city and county sales and use taxes for which the person is liable under the Local Option Revenue Act or sections 13-319, 13-324, 13-2813, and 77-6403 and the accuracy of the allocation made between the various counties, cities, villages, and municipal counties of the tax due. The Tax Commissioner may make or cause to be made copies of resale or exemption certificates and may pay a reasonable amount to the person having custody of the records for providing such copies.

(5) The taxpayer shall have the right to keep or store his or her records at a point outside this state and shall make his or her records available to the Tax Commissioner at all times.

(6) In administration of the use tax, the Tax Commissioner may require the filing of reports by any person or class of persons having in his, her, or their possession or custody information relating to sales of property, the storage, use, or other consumption of which is subject to the tax. The report shall be filed when the Tax Commissioner requires and shall set forth the names and addresses of purchasers of the property, the sales price of the property, the date of sale, and such other information as the Tax Commissioner may require.

(7) It shall be a Class I misdemeanor for the Tax Commissioner or any official or employee of the Tax Commissioner, the State Treasurer, or the Department of Administrative Services to make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and activities of any retailer or any other person visited or examined in the discharge of official duty or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof, or any book containing any abstract or particulars thereof to be seen or examined by any person not connected with the Tax Commissioner. Nothing in this section shall be construed to prohibit (a) the delivery to a taxpayer, his or her duly authorized representative, or his or her successors, receivers, trustees, executors, administrators, assignees, or guarantors, if directly interested, of a certified copy of any return or report in connection with his or her tax, (b) the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, (c) the inspection by the Attorney General, other legal representative of the state, or county attorney of the reports or returns of any taxpayer when either (i) information on the reports or returns is considered by the Attorney General to be relevant to any action or proceeding instituted by the taxpayer or against whom an action or proceeding is being considered or has been commenced by any state agency or the county or (ii) the taxpayer has instituted an action to review the tax based thereon or an action or proceeding against the taxpayer for collection of tax or failure to comply with the Nebraska Revenue Act of 1967 is being considered or has been commenced, (d) the furnishing of any information to the United States Government or to states allowing similar privileges to the Tax Commissioner, (e) the disclosure of information and records to a collection agency contracting with the Tax Commissioner pursuant to sections 77-377.01 to 77-377.04, (f) the disclosure to another party to a transaction of information and records concerning the transaction between the taxpayer and the other party, (g) the disclosure of information pursuant to section 77-27,195, 77-5731, 77-6837, 77-6839, or 77-6928, or (h) the disclosure of information to the Department of Labor necessary for the administration of the Employment Security Law, the Contractor Registration Act, or the Employee Classification Act.

(8) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner may permit the Postal Inspector of the United States Postal Service or his or her delegates to inspect the reports or returns of any person filed pursuant to the Nebraska Revenue Act of 1967 when information on the reports or returns is relevant to any action or proceeding instituted or being considered by the United States Postal Service against such person for the fraudulent use of the mails to carry and deliver false and fraudulent tax returns to the Tax Commissioner with the intent to defraud the State of Nebraska or to evade the payment of Nebraska state taxes.

(9) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner may permit other tax officials of this state to inspect the tax returns, reports, and applications filed under sections 77-2701.04 to 77-2713, but such inspection shall be permitted only for purposes of enforcing a tax law and only to the extent and under the conditions prescribed by the rules and regulations of the Tax Commissioner.

(10) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner may, upon request, provide the county board of any county which has exercised the authority granted by section 81-3716 with a list of the names and addresses of the hotels located within the county for which lodging sales tax returns have been filed or for which lodging sales taxes have been remitted for the county's County Visitors Promotion Fund under the Nebraska Visitors Development Act.

The information provided by the Tax Commissioner shall indicate only the names and addresses of the hotels located within the requesting county for which lodging sales tax returns have been filed for a specified period and the fact that lodging sales taxes remitted by or on behalf of the hotel have constituted a portion of the total sum remitted by the state to the county for a specified period under the provisions of the Nebraska Visitors Development Act. No additional information shall be revealed.

(11)(a) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner shall, upon written request by the Auditor of Public Accounts or the office of Legislative Audit, make tax returns and tax return information open to inspection by or disclosure to the Auditor of Public Accounts or employees of the office of Legislative Audit for the purpose of and to the extent necessary in making an audit of the Department of Revenue pursuant to section 50-1205 or 84-304. Confidential tax returns and tax return information shall be audited only upon the premises of the Department of Revenue. All audit workpapers pertaining to the audit of the Department of Revenue shall be stored in a secure place in the Department of Revenue.

(b) No employee of the Auditor of Public Accounts or the office of Legislative Audit shall disclose to any person, other than another Auditor of Public Accounts or office employee whose official duties require such disclosure, any return or return information described in the Nebraska Revenue Act of 1967 in a form which can be associated with or otherwise identify, directly or indirectly, a particular taxpayer.

(c) Any person who violates the provisions of this subsection shall be guilty of a Class I misdemeanor. For purposes of this subsection, employee includes a former Auditor of Public Accounts or office of Legislative Audit employee.

(12) For purposes of this subsection and subsections (11) and (14) of this section:

(a) Disclosure means the making known to any person in any manner a tax return or return information;

(b) Return information means:

(i) A taxpayer's identification number and (A) the nature, source, or amount of his or her income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing or (B) any other data received by, recorded by, prepared by, furnished to, or collected by the Tax Commissioner with respect to a return or the determination of the existence or possible existence of liability or the amount of liability of any person for any tax, penalty, interest, fine, forfeiture, or other imposition or offense; and

(ii) Any part of any written determination or any background file document relating to such written determination; and

(c) Tax return or return means any tax or information return or claim for refund required by, provided for, or permitted under sections 77-2701 to 77-2713 which is filed with the Tax Commissioner by, on behalf of, or with respect to any person and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to or part of the filed return.

(13) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner shall, upon request, provide any municipality which has adopted the local option sales tax under the Local Option Revenue Act with a list of the names and addresses of the retailers which have collected the local option sales tax for the municipality. The request may be made annually and shall be submitted to the Tax Commissioner on or before June 30 of each year. The information provided by the Tax Commissioner shall indicate only the names and addresses of the retailers. The Tax Commissioner may provide additional information to a municipality so long as the information does not include any data detailing the specific revenue, expenses, or operations of any particular business.

(14)(a) Notwithstanding the provisions of subsection (7) of this section, the Tax Commissioner shall, upon written request, provide an individual certified under subdivision (b) of this subsection representing a municipality which has adopted the local option sales and use tax under the Local Option Revenue Act with confidential sales and use tax returns and sales and use tax return information regarding taxpayers that possess a sales tax permit and the amounts remitted by such permitholders at locations within the boundaries of the requesting municipality or with confidential business use tax returns and business use tax return information regarding taxpayers that file a Nebraska and Local Business Use Tax Return and the amounts remitted by such taxpayers at locations within the boundaries of the requesting municipality. Any written request pursuant to this subsection shall provide the Department of Revenue with no less than ten business days to prepare the sales and use tax returns and sales and use tax return information requested. The individual certified under subdivision (b) of this subsection shall review such returns and return information only upon the premises of the department, except that such limitation shall not apply if the certifying municipality has an agreement in effect under the Nebraska Advantage Transformational Tourism and Redevelopment Act. In such case, the individual certified under subdivision (b) of this subsection may request that copies of such returns and return information be sent to him or her by electronic transmission, secured in a manner as determined by the Tax Commissioner.

(b) Each municipality that seeks to request information under subdivision (a) of this subsection shall certify to the Department of Revenue one individual who is authorized by such municipality to make such request and review the documents described in subdivision (a) of this subsection. The individual may be a municipal employee or an individual who contracts with the requesting municipality to provide financial, accounting, or other administrative services.

(c) No individual certified by a municipality pursuant to subdivision (b) of this subsection shall disclose to any person any information obtained pursuant to a review under this subsection. An individual certified by a municipality pursuant to subdivision (b) of this subsection shall remain subject to this subsection after he or she (i) is no longer certified or (ii) is no longer in the employment of or under contract with the certifying municipality.

(d) Any person who violates the provisions of this subsection shall be guilty of a Class I misdemeanor.

(e) The Department of Revenue shall not be held liable by any person for an impermissible disclosure by a municipality or any agent or employee thereof of any information obtained pursuant to a review under this subsection.

(15) In all proceedings under the Nebraska Revenue Act of 1967, the Tax Commissioner may act for and on behalf of the people of the State of Nebraska. The Tax Commissioner in his or her discretion may waive all or part of any penalties provided by the provisions of such act or interest on delinquent taxes specified in section 45-104.02, as such rate may from time to time be adjusted.

(16)(a) The purpose of this subsection is to set forth the state's policy for the protection of the confidentiality rights of all participants in the system operated pursuant to the streamlined sales and use tax agreement and of the privacy interests of consumers who deal with model 1 sellers.

(b) For purposes of this subsection:

(i) Anonymous data means information that does not identify a person;

(ii) Confidential taxpayer information means all information that is protected under a member state's laws, regulations, and privileges; and

(iii) Personally identifiable information means information that identifies a person.

(c) The state agrees that a fundamental precept for model 1 sellers is to preserve the privacy of consumers by protecting their anonymity. With very limited exceptions, a certified service provider shall perform its tax calculation, remittance, and reporting functions without retaining the personally identifiable information of consumers.

(d) The governing board of the member states in the streamlined sales and use tax agreement may certify a certified service provider only if that certified service provider certifies that:

(i) Its system has been designed and tested to ensure that the fundamental precept of anonymity is respected;

(ii) Personally identifiable information is only used and retained to the extent necessary for the administration of model 1 with respect to exempt purchasers;

(iii) It provides consumers clear and conspicuous notice of its information practices, including what information it collects, how it collects the information, how it uses the information, how long, if at all, it retains the information, and whether it discloses the information to member states. Such notice shall be satisfied by a written privacy policy statement accessible by the public on the website of the certified service provider;

(iv) Its collection, use, and retention of personally identifiable information is limited to that required by the member states to ensure the validity of exemptions from taxation that are claimed by reason of a consumer's status or the intended use of the goods or services purchased; and

(v) It provides adequate technical, physical, and administrative safeguards so as to protect personally identifiable information from unauthorized access and disclosure.

(e) The state shall provide public notification to consumers, including exempt purchasers, of the state's practices relating to the collection, use, and retention of personally identifiable information.

(f) When any personally identifiable information that has been collected and retained is no longer required for the purposes set forth in subdivision (16)(d)(iv) of this section, such information shall no longer be retained by the member states.

(g) When personally identifiable information regarding an individual is retained by or on behalf of the state, it shall provide reasonable access by such individual to his or her own information in the state's possession and a right to correct any inaccurately recorded information.

(h) If anyone other than a member state, or a person authorized by that state's law or the agreement, seeks to discover personally identifiable information, the state from whom the information is sought should make a reasonable and timely effort to notify the individual of such request.

(i) This privacy policy is subject to enforcement by the Attorney General.

(j) All other laws and regulations regarding the collection, use, and maintenance of confidential taxpayer information remain fully applicable and binding. Without limitation, this subsection does not enlarge or limit the state's authority to:

(i) Conduct audits or other reviews as provided under the agreement and state law;

(ii) Provide records pursuant to the federal Freedom of Information Act, disclosure laws with governmental agencies, or other regulations;

(iii) Prevent, consistent with state law, disclosure of confidential taxpayer information;

(iv) Prevent, consistent with federal law, disclosure or misuse of federal return information obtained under a disclosure agreement with the Internal Revenue Service; and

(v) Collect, disclose, disseminate, or otherwise use anonymous data for governmental purposes.

Source:Laws 1967, c. 487, § 11, p. 1566; Laws 1969, c. 683, § 7, p. 2641; Laws 1977, LB 39, § 239;    Laws 1981, LB 170, § 6;    Laws 1982, LB 705, § 2;    Laws 1984, LB 962, § 12;    Laws 1985, LB 344, § 4;    Laws 1987, LB 523, § 17;    Laws 1991, LB 773, § 10; Laws 1992, LB 871, § 61;    Laws 1992, Fourth Spec. Sess., LB 1, § 31;    Laws 1993, LB 345, § 60;    Laws 1994, LB 1175, § 1;    Laws 1995, LB 134, § 3;    Laws 1996, LB 1177, § 18;    Laws 2001, LB 142, § 56;    Laws 2003, LB 282, § 73;    Laws 2005, LB 216, § 9;    Laws 2005, LB 312, § 11;    Laws 2006, LB 588, § 8;    Laws 2007, LB94, § 1;    Laws 2007, LB223, § 9;    Laws 2008, LB914, § 8;    Laws 2009, LB165, § 10;    Laws 2010, LB563, § 14;    Laws 2010, LB879, § 9;    Laws 2012, LB209, § 1;    Laws 2012, LB1053, § 25;    Laws 2013, LB39, § 12;    Laws 2014, LB867, § 15;    Laws 2015, LB539, § 6;    Laws 2016, LB1022, § 4;    Laws 2019, LB472, § 14;    Laws 2020, LB236, § 1;    Laws 2020, LB1107, § 129;    Laws 2021, LB26, § 5;    Laws 2021, LB544, § 31;    Laws 2021, LB595, § 8;    Laws 2022, LB984, § 8;    Laws 2023, LB727, § 67.    
Operative Date: June 7, 2023


Cross References

77-2712. Repealed. Laws 2003, LB 282, § 87.

77-2712.01. Repealed. Laws 2003, LB 282, § 87.

77-2712.02. Legislative findings.

(1) The Legislature finds that a simplified sales and use tax system will reduce and over time eliminate the burden and cost for all sellers to collect this state's sales and use tax. The Legislature further finds that this state should participate in a multistate agreement to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce.

(2) It is the purpose of the streamlined sales and use tax agreement to simplify and modernize sales and use tax administration in the member states in order to substantially reduce the burden of compliance. The agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:

(a) State-level administration of sales and use tax collections;

(b) Uniformity in the state and local tax bases;

(c) Uniformity of major tax base definitions;

(d) A central, electronic registration system for all member states;

(e) Simplification of state and local tax rates;

(f) Uniform sourcing rules for all taxable transactions;

(g) Simplified administration of exemptions;

(h) Simplified tax returns;

(i) Simplification of tax remittances; and

(j) Protection of consumer privacy.

(3) This agreement shall not be construed as intending to influence a member state to impose a tax on or provide an exemption from tax for any item or service. However, exemptions granted shall adhere to uniform definitions as set out in the agreement.

Source:Laws 2001, LB 172, § 3;    Laws 2003, LB 282, § 74.    


77-2712.03. Streamlined sales and use tax agreement; ratified; governing board; members.

(1) The streamlined sales and use tax agreement, as adopted by the streamlined sales tax implementing states on November 12, 2002, including amendments through December 31, 2015, is hereby ratified by the Legislature. The Governor shall enter into the agreement with one or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. In furtherance of the agreement, the Department of Revenue is authorized to act jointly with other states that are members under Articles VII or VIII of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers. The department is further authorized to take other actions permissible under law reasonably required to implement the provisions set forth in the agreement. Other actions authorized by this section include, but are not limited to, the adoption and promulgation of rules and regulations and the joint procurement, with other member states, of goods and services in furtherance of the agreement.

(2) The Tax Commissioner or his or her designee and two representatives of the Legislature appointed by the Executive Board of the Legislative Council are authorized to represent Nebraska before the other member states under the agreement. The state also agrees to participate in and comply with the procedures of and decisions made by the governing board of the member states. These provisions of the agreement include the creation of the organization as provided in Article VII of the agreement, the requirements for state entry and withdrawal as provided in Article VIII of the agreement, amendments to the agreement as provided in Article IX of the agreement, and a dispute resolution process as provided in Article X of the agreement.

Source:Laws 2001, LB 172, § 4;    Laws 2003, LB 282, § 75;    Laws 2007, LB223, § 10;    Laws 2010, LB879, § 10;    Laws 2011, LB211, § 6;    Laws 2016, LB776, § 2.    


Cross References

77-2712.04. Streamlined sales and use tax agreement; relationship to state law.

No provision of the streamlined sales and use tax agreement in whole or in part invalidates or amends any provision of the law of Nebraska. Adoption and ratification of the agreement by Nebraska does not amend or modify any law of Nebraska. Any provision of the agreement that is in conflict with state law, whether adopted before, at, or after membership of Nebraska in the agreement, shall be implemented by legislation or rule and regulation, as is appropriate.

Source:Laws 2001, LB 172, § 5;    Laws 2003, LB 282, § 76.    


77-2712.05. Streamlined sales and use tax agreement; requirements.

By agreeing to the terms of the streamlined sales and use tax agreement, this state agrees to abide by the following requirements:

(1) Uniform state rate. The state shall comply with restrictions to achieve over time more uniform state rates through the following:

(a) Limiting the number of state rates;

(b) Limiting the application of maximums on the amount of state tax that is due on a transaction; and

(c) Limiting the application of thresholds on the application of state tax;

(2) Uniform standards. The state hereby establishes uniform standards for the following:

(a) Sourcing of transactions to taxing jurisdictions as provided in sections 77-2703.01 to 77-2703.04;

(b) Administration of exempt sales as set out by the agreement and using procedures as determined by the governing board;

(c) Allowances a seller can take for bad debts as provided in section 77-2708; and

(d) Sales and use tax returns and remittances. To comply with the agreement, the Tax Commissioner shall:

(i) Require only one remittance for each return except as provided in this subdivision. If any additional remittance is required, it may only be required from retailers that collect more than thirty thousand dollars in sales and use taxes in the state during the preceding calendar year as provided in this subdivision. The amount of any additional remittance may be determined through a calculation method rather than actual collections. Any additional remittance shall not require the filing of an additional return;

(ii) Require, at his or her discretion, all remittances from sellers under models 1, 2, and 3 to be remitted electronically;

(iii) Allow for electronic payments by both automated clearinghouse credit and debit;

(iv) Provide an alternative method for making same day payments if an electronic funds transfer fails;

(v) Provide that if a due date falls on a legal banking holiday, the taxes are due to that state on the next succeeding business day; and

(vi) Require that any data that accompanies a remittance be formatted using uniform tax type and payment type codes approved by the governing board of the member states to the streamlined sales and use tax agreement;

(3) Uniform definitions. (a) The state shall utilize the uniform definitions of sales and use tax terms as provided in the agreement. The definitions enable Nebraska to preserve its ability to make taxability and exemption choices not inconsistent with the uniform definitions.

(b) The state may enact a product-based exemption without restriction if the agreement does not have a definition for the product or for a term that includes the product. If the agreement has a definition for the product or for a term that includes the product, the state may exempt all items included within the definition but shall not exempt only part of the items included within the definition unless the agreement sets out the exemption for part of the items as an acceptable variation.

(c) The state may enact an entity-based or a use-based exemption without restriction if the agreement does not have a definition for the product whose use or purchase by a specific entity is exempt or for a term that includes the product. If the agreement has a definition for the product whose use or specific purchase is exempt, states may enact an entity-based or a use-based exemption that applies to that product as long as the exemption utilizes the agreement definition of the product. If the agreement does not have a definition for the product whose use or specific purchase is exempt but has a definition for a term that includes the product, states may enact an entity-based or a use-based exemption for the product without restriction.

(d) For purposes of complying with the requirements in this section, the inclusion of a product within the definition of tangible personal property is disregarded;

(4) Central registration. The state shall participate in an electronic central registration system that allows a seller to register to collect and remit sales and use taxes for all member states. Under the system:

(a) A retailer registering under the agreement is registered in this state;

(b) The state agrees not to require the payment of any registration fees or other charges for a retailer to register in the state if the retailer has no legal requirement to register;

(c) A written signature from the retailer is not required;

(d) An agent may register a retailer under uniform procedures adopted by the member states pursuant to the agreement;

(e) A retailer may cancel its registration under the system at any time under uniform procedures adopted by the governing board. Cancellation does not relieve the retailer of its liability for remitting to the proper states any taxes collected;

(f) When registering, the retailer that is registered under the agreement may select one of the following methods of remittances or other method allowed by state law to remit the taxes collected:

(i) Model 1, wherein a seller selects a certified service provider as an agent to perform all the seller's sales or use tax functions, other than the seller's obligation to remit tax on its own purchases;

(ii) Model 2, wherein a seller selects a certified automated system to use which calculates the amount of tax due on a transaction; and

(iii) Model 3, wherein a seller utilizes its own proprietary automated sales tax system that has been certified as a certified automated system; and

(g) Sellers who register within twelve months after this state's first approval of a certified service provider are relieved from liability, including the local option tax, for tax not collected or paid if the seller was not registered between October 1, 2004, and September 30, 2005. Such relief from liability shall be in accordance with the terms of the agreement;

(5) No nexus attribution. The state agrees that registration with the central registration system and the collection of sales and use taxes in the state will not be used as a factor in determining whether the seller has nexus with the state for any tax at any time;

(6) Local sales and use taxes. The agreement requires the reduction of the burdens of complying with local sales and use taxes as provided in sections 13-319, 13-324, 13-326, 77-2701.03, 77-27,142, 77-27,143, 77-27,144, and 77-6403 that require the following:

(a) No variation between the state and local tax bases;

(b) Statewide administration of all sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions;

(c) Limitations on the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes; and

(d) Uniform notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions;

(7) Complete a taxability matrix approved by the governing board. (a) Notice of changes in the taxability of the products or services listed will be provided as required by the governing board.

(b) The entries in the matrix shall be provided and maintained in a database that is in a downloadable format approved by the governing board.

(c) Sellers, model 2 sellers, and certified service providers are relieved from liability, including the local option tax, for having charged and collected the incorrect amount of sales or use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state in the taxability matrix or for relying on product-based classifications that have been reviewed and approved by the state. The state shall notify the certified service provider or model 2 seller if an item or transaction is incorrectly classified as to its taxability.

(d) Purchasers are relieved from liability for penalty for having failed to pay the correct amount of tax resulting from the purchaser's reliance on erroneous data provided by the member state in the taxability matrix or rates and boundaries databases or for relying on product-based classifications that have been reviewed and approved by the state;

(8) Monetary allowances. The state agrees to allow any monetary allowances that are to be provided by the states to sellers or certified service providers in exchange for collecting sales and use taxes as provided in Article VI of the agreement;

(9) State compliance. The agreement requires the state to certify compliance with the terms of the agreement prior to joining and to maintain compliance, under the laws of the member state, with all provisions of the agreement while a member;

(10) Consumer privacy. The state hereby adopts a uniform policy for certified service providers that protects the privacy of consumers and maintains the confidentiality of tax information as provided in section 77-2711; and

(11) Advisory councils. The state agrees to the recognition of an advisory council of private-sector representatives and an advisory council of member and nonmember state representatives to consult with in the administration of the agreement.

Source:Laws 2001, LB 172, § 6;    Laws 2003, LB 282, § 77;    Laws 2004, LB 1017, § 20;    Laws 2005, LB 16, § 1;    Laws 2006, LB 887, § 4;    Laws 2007, LB223, § 11;    Laws 2009, LB165, § 11;    Laws 2019, LB472, § 15.    


77-2712.06. Agreement; effect.

The agreement is an accord among individual cooperating sovereigns in furtherance of their governmental functions. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.

Source:Laws 2001, LB 172, § 7.    


77-2712.07. Rights under the agreement.

(1) The agreement binds and inures only to the benefit of Nebraska and the other member states. No person, other than a member state, is an intended beneficiary of the agreement. Any benefit to a person is established by the laws of Nebraska and the other member states and not by the terms of the agreement.

(2) No person shall have any cause of action or defense under the agreement or by virtue of this state's approval of the agreement. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of Nebraska, or any political subdivision of Nebraska, on the ground that the action or inaction is inconsistent with the agreement.

(3) No law of Nebraska, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement.

Source:Laws 2001, LB 172, § 8.    


77-2712.08. Repealed. Laws 2003, LB 282, § 87.

77-2713. Sales and use tax; failure to collect; false return; violations; penalty; statute of limitations.

(1) Any person required under the provisions of sections 77-2701.04 to 77-2713 to collect, account for, or pay over any tax imposed by the Nebraska Revenue Act of 1967 who willfully fails to collect or truthfully account for or pay over such tax and any person who willfully attempts in any manner to evade any tax imposed by such provisions of such act or the payment thereof shall, in addition to other penalties provided by law, be guilty of a Class IV felony.

(2) Any person who willfully aids or assists in, procures, counsels, or advises the preparation or presentation of a false or fraudulent return, affidavit, claim, or document under or in connection with any matter arising under sections 77-2701.04 to 77-2713 shall, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document, be guilty of a Class IV felony.

(3) A person who engages in business as a retailer in this state without a permit or permits or after a permit has been suspended and each officer of any corporation which so engages in business shall be guilty of a Class IV misdemeanor. Each day of such operation shall constitute a separate offense.

(4) Any person who gives a resale certificate to the seller for property which he or she knows, at the time of purchase, is purchased for the purpose of use rather than for the purpose of resale, lease, or rental by him or her in the regular course of business shall be guilty of a Class IV misdemeanor.

(5) Any violation of the provisions of sections 77-2701.04 to 77-2713, except as otherwise provided, shall be a Class IV misdemeanor.

(6) Any prosecution under sections 77-2701.04 to 77-2713 shall be instituted within three years after the commission of the offense. If such offense is the failure to do an act required by any of such sections to be done before a certain date, a prosecution for such offense may be commenced not later than three years after such date. The failure to do any act required by sections 77-2701.04 to 77-2713 shall be deemed an act committed in part at the principal office of the Tax Commissioner. Any prosecution under the provisions of the Nebraska Revenue Act of 1967 may be conducted in any county where the person or corporation to whose liability the proceeding relates resides or has a place of business or in any county in which such criminal act is committed. The Attorney General shall have concurrent jurisdiction with the county attorney in the prosecution of any offenses under the provisions of the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 13, p. 1574; Laws 1977, LB 39, § 240;    Laws 1989, LB 459, § 1;    Laws 1992, LB 871, § 62;    Laws 2003, LB 282, § 78;    Laws 2021, LB26, § 6;    Laws 2021, LB595, § 9;    Laws 2022, LB984, § 9;    Laws 2023, LB727, § 68.    
Operative Date: June 7, 2023


77-2714. Terms; references; incorporation of federal law.

Any term used in sections 77-2714 to 77-27,123 shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required. Any reference to the laws of the United States shall mean the provisions of the Internal Revenue Code of 1986, and amendments thereto, other provisions of the laws of the United States relating to federal income taxes, and the rules and regulations issued under such laws, as the same may be or become effective, at any time or from time to time, for the taxable year. Any reference to either the Internal Revenue Code of 1954, the Internal Revenue Code of 1986, or the Internal Revenue Code shall mean and include a reference to the other, whenever appropriate. All other references to any tax contained within sections 77-2714 to 77-27,123 refer to income tax unless the contrary appears. Any organization to the extent that it is exempt from income taxes under the laws of the United States shall be exempt from income tax under the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 14, p. 1575; Laws 1987, LB 6, § 1;    Laws 1987, LB 773, § 3;    Laws 1987, LB 523, § 18.    


77-2714.01. Terms, defined.

As used in sections 77-2714 to 77-27,123, unless the context otherwise requires:

(1) Nebraska adjusted gross income shall mean (a) for resident individuals, their federal adjusted gross income as modified in section 77-2716 and (b) for nonresident individuals and partial-year resident individuals, the portion of the federal adjusted gross income that is derived from or connected with sources within this state as provided in section 77-2715;

(2) Nebraska taxable income shall mean (a) for resident individuals, the amount of income subject to tax and (b) for nonresident individuals and partial-year resident individuals, the amount of income on which the tax will be computed, before the proration contained in subsection (3) of section 77-2715 to determine the tax attributable to income from sources within this state;

(3) Nonresident estate or trust shall mean an estate or trust that is not a resident estate or trust;

(4) Nonresident individual shall mean an individual who is not a resident of this state at any time during the taxable year;

(5) Partial-year resident individual shall mean an individual who is a resident of this state during any part of the taxable year and a nonresident of this state the rest of the year;

(6) Resident estate or trust shall mean (a) the estate of a decedent who at his or her death was domiciled in this state, (b) a trust or portion of a trust consisting of property transferred by the will of a decedent who at his or her death was domiciled in this state, or (c) a trust or portion of a trust consisting of the property of an individual domiciled in this state at the time such individual may no longer exercise the power to revest title to such property in himself or herself; and

(7) Resident individual shall mean an individual who is domiciled in Nebraska or who maintains a permanent place of abode in this state and spends in the aggregate more than six months of the taxable year in this state.

Source:Laws 1987, LB 773, § 4.    


Annotations

77-2715. Income tax; rate; credits; refund.

(1) A tax is hereby imposed for each taxable year on the entire income of every resident individual and on the income of every nonresident individual and partial-year resident individual which is derived from sources within this state, except that any individual who has additions to adjusted gross income pursuant to section 77-2716 of less than five thousand dollars shall not have an individual income tax liability after nonrefundable credits under the Nebraska Revenue Act of 1967 that exceeds his or her individual income tax liability before credits under the Internal Revenue Code of 1986.

(2)(a) For taxable years beginning or deemed to begin before January 1, 2014, the tax for each resident individual shall be a percentage of such individual's federal adjusted gross income as modified in sections 77-2716 and 77-2716.01, plus a percentage of the federal alternative minimum tax and the federal tax on premature or lump-sum distributions from qualified retirement plans. The additional taxes shall be recomputed by (i) substituting Nebraska taxable income for federal taxable income, (ii) calculating what the federal alternative minimum tax would be on Nebraska taxable income and adjusting such calculations for any items which are reflected differently in the determination of federal taxable income, and (iii) applying Nebraska rates to the result. The federal credit for prior year minimum tax, after the recomputations required by the act, shall be allowed as a reduction in the income tax due.

(b) For taxable years beginning or deemed to begin on or after January 1, 2014, the tax for each resident individual shall be a percentage of such individual's federal adjusted gross income as modified in sections 77-2716 and 77-2716.01, plus a percentage of the federal tax on premature or lump-sum distributions from qualified retirement plans. The additional taxes shall be recomputed by substituting Nebraska taxable income for federal taxable income and applying Nebraska rates to the result.

(3) The tax for each nonresident individual and partial-year resident individual shall be the portion of the tax imposed on resident individuals which is attributable to the income derived from sources within this state. The tax which is attributable to income derived from sources within this state shall be determined by subtracting from the liability to this state for a resident individual with the same total income the credit for personal exemptions and multiplying the result by a fraction, the numerator of which is the nonresident individual's or partial-year resident individual's Nebraska adjusted gross income as determined by section 77-2733 or 77-2733.01 and the denominator of which is his or her total federal adjusted gross income, after first adjusting each by the amounts provided in section 77-2716. If this determination attributes more or less tax than is reasonably attributable to income derived from sources within this state, the taxpayer may petition for or the Tax Commissioner may require the employment of any other method to attribute an amount of tax which is reasonable and equitable in the circumstances.

(4) The tax for each estate and trust, other than trusts taxed as corporations under the Internal Revenue Code of 1986, shall be as determined under section 77-2717.

(5) A refund shall be allowed to the extent that the income tax paid by the individual, estate, or trust for the taxable year exceeds the income tax payable, except that no refund shall be made in any amount less than two dollars.

Source:Laws 1967, c. 487, § 15, p. 1576; Laws 1969, c. 684, § 2, p. 2652; Laws 1972, LB 1367, § 2;    Laws 1973, LB 526, § 1;    Laws 1974, LB 632, § 1;    Laws 1975, LB 430, § 1;    Laws 1977, LB 30, § 1;    Laws 1977, LB 219, § 1;    Laws 1980, LB 44, § 1; Laws 1981, LB 197, § 1;    Laws 1982, LB 799, § 5; Laws 1983, LB 124, § 8;    Laws 1983, LB 363, § 2;    Laws 1984, LB 372, § 15;    Laws 1985, LB 273, § 49;    Laws 1986, LB 1027, § 207;    Laws 1987, LB 773, § 5;    Laws 1987, LB 523, § 19;    Laws 1989, LB 458, § 1;    Laws 1989, LB 459, § 2;    Laws 1993, LB 240, § 2;    Laws 1994, LB 977, § 10;    Laws 2013, LB308, § 1.    


Cross References

Annotations

77-2715.01. Income and sales tax; Legislature; set rates; limitations; primary rate; Tax Rate Review Committee; members; meetings; report.

(1)(a) Commencing in 1987 the Legislature shall set the rates for the income tax imposed by section 77-2715 and the rate of the sales tax imposed by subsection (1) of section 77-2703. For taxable years beginning or deemed to begin before January 1, 2013, the rate of the income tax set by the Legislature shall be considered the primary rate for establishing the tax rate schedules used to compute the tax.

(b) The Legislature shall set the rates of the sales tax and income tax so that the estimated funds available plus estimated receipts from the sales, use, income, and franchise taxes will be not less than three percent nor more than seven percent in excess of the appropriations and express obligations for the biennium for which the appropriations are made, except that for the biennium ending June 30, 2019, the percentage shall not be less than two and one-half percent nor more than seven percent. The purpose of this subdivision is to insure that there shall be maintained in the state treasury an adequate General Fund balance, considering cash flow, to meet the appropriations and express obligations of the state.

(c) For purposes of this section, express obligation shall mean an obligation which has fiscal impact identifiable by a sum certain or by an established percentage or other determinative factor or factors.

(2) The Speaker of the Legislature and the chairpersons of the Legislature's Executive Board, Revenue Committee, and Appropriations Committee shall constitute a committee to be known as the Tax Rate Review Committee. The Tax Rate Review Committee shall meet with the Tax Commissioner within ten days after July 15 and November 15 of each year and shall determine whether the rates for sales tax and income tax should be changed. In making such determination the committee shall recalculate the requirements pursuant to the formula set forth in subsection (1) of this section, taking into consideration the appropriations and express obligations for any session, all miscellaneous claims, deficiency bills, and all emergency appropriations. The committee shall prepare an annual report of its determinations under this section. The committee shall submit such report electronically to the Legislature and shall append the tax expenditure report required under section 77-382 and the revenue volatility report required under section 50-419.02.

In the event it is determined by a majority vote of the committee that the rates must be changed as a result of a regular or special session or as a result of a change in the Internal Revenue Code of 1986 and amendments thereto, other provisions of the laws of the United States relating to federal income taxes, and the rules and regulations issued under such laws, the committee shall petition the Governor to call a special session of the Legislature to make whatever rate changes may be necessary.

Source:Laws 1969, c. 684, § 3, p. 2654; Laws 1971, LB 167, § 1;    Laws 1973, LB 10, § 1;    Laws 1975, LB 589, § 1;    Laws 1975, Spec. Sess., LB 4, § 1; Laws 1976, LB 651, § 1; Laws 1978, LB 327, § 1;    Laws 1982, LB 304, § 1;    Laws 1982, LB 454, § 1;    Laws 1982, LB 757, § 1; Laws 1982, LB 693, § 1;    Laws 1983, LB 59, § 1;    Laws 1983, LB 169, § 2;    Laws 1983, LB 363, § 3;    Laws 1984, LB 892, § 7;    Laws 1985, LB 282, § 1;    Laws 1986, LB 258, § 17;    Laws 1987, LB 773, § 7;    Laws 1988, LB 130, § 1;    Laws 2012, LB962, § 2;    Laws 2012, LB970, § 3;    Laws 2015, LB33, § 2;    Laws 2017, LB331, § 41.    


77-2715.02. Rate schedules; established; other taxes; tax rate.

(1) The following rate schedules are hereby established for the Nebraska individual income tax and shall be in the following form:

(a) For taxable years beginning or deemed to begin before January 1, 2007, income amounts for columns A and E shall be:

(i) $0, $2,400, $17,500, and $27,000, for single returns;

(ii) $0, $4,000, $31,000, and $50,000, for married filing joint returns;

(iii) $0, $3,800, $25,000, and $35,000, for head-of-household returns;

(iv) $0, $2,000, $15,500, and $25,000, for married filing separate returns; and

(v) $0, $500, $4,700, and $15,150, for estates and trusts;

(b) For taxable years beginning or deemed to begin on or after January 1, 2007, and before January 1, 2013, income amounts for columns A and E shall be:

(i) $0, $2,400, $17,500, and $27,000, for single returns;

(ii) $0, $4,800, $35,000, and $54,000, for married filing joint returns;

(iii) $0, $4,500, $28,000, and $40,000, for head-of-household returns;

(iv) $0, $2,400, $17,500, and $27,000, for married filing separate returns; and

(v) $0, $500, $4,700, and $15,150, for estates and trusts;

(c) The amount in column C shall be the total amount of the tax imposed on income less than the amount in column A;

(d) The amount in column D shall be the rate on the income in excess of the amount in column E;

(e) For taxable years beginning or deemed to begin before January 1, 2003, under the Internal Revenue Code of 1986, as amended, the primary rate set by the Legislature shall be multiplied by the following factors to compute the tax rates for column D. The factors for the brackets, from lowest to highest bracket, shall be .6784, .9432, 1.3541, and 1.8054;

(f) For taxable years beginning or deemed to begin on or after January 1, 2003, and before January 1, 2013, under the Internal Revenue Code of 1986, as amended, the primary rate set by the Legislature shall be multiplied by the following factors to compute the tax rates for column D. The factors for the brackets, from lowest to highest bracket, shall be .6932, .9646, 1.3846, and 1.848;

(g) The amounts for column C shall be rounded to the nearest dollar, and the amounts in column D shall be rounded to hundredths of one percent; and

(h) One rate schedule shall be established for each federal filing status.

(2) The tax rate schedules shall use the format set forth in this subsection.

A B C D E
Taxable income but not pay plus of the
over over amount over

(3) For taxable years beginning or deemed to begin before January 1, 2013, the tax rate applied to other federal taxes included in the computation of the Nebraska individual income tax shall be eight times the primary rate.

Source:Laws 1990, LB 1059, § 34;    Laws 1993, LB 240, § 3;    Laws 1994, LB 977, § 11;    Laws 1997, LB 401, § 1;    Laws 1998, LB 1028, § 1;    Laws 2002, LB 1085, § 17;    Laws 2003, LB 759, § 21;    Laws 2006, LB 968, § 7;    Laws 2007, LB367, § 19;    Laws 2012, LB970, § 4.    


Annotations

77-2715.03. Individual income tax brackets and rates; Tax Commissioner; duties; tax tables; other taxes; tax rate.

(1) For taxable years beginning or deemed to begin on or after January 1, 2013, and before January 1, 2014, the following brackets and rates are hereby established for the Nebraska individual income tax:

Individual Income Tax Brackets and Rates
Bracket Single Married, Head of Married, Estates Tax
Number Individuals Filing Household Filing and Rate
Jointly Separate Trusts
1 $0-2,399 $0-4,799 $0-4,499 $0-2,399 $0-499 2.46%
2 $2,400- $4,800- $4,500- $2,400- $500-
17,499 34,999 27,999 17,499 4,699 3.51%
3 $17,500- $35,000- $28,000- $17,500- $4,700-
26,999 53,999 39,999 26,999 15,149 5.01%
4 $27,000 $54,000 $40,000 $27,000 $15,150
and Over and Over and Over and Over and Over 6.84%

(2)(a) For taxable years beginning or deemed to begin on or after January 1, 2014, the following brackets and rates are hereby established for the Nebraska individual income tax:

Individual Income Tax Brackets and Rates
Bracket Single Married, Head of Married, Estates Tax
Number Individuals Filing Household Filing and Rate
Jointly Separate Trusts
1 $0-2,999 $0-5,999 $0-5,599 $0-2,999 $0-499 2.46%
2 $3,000- $6,000- $5,600- $3,000- $500-
17,999 35,999 28,799 17,999 4,699 3.51%
3 $18,000- $36,000- $28,800- $18,000- $4,700- Rate
28,999 57,999 42,999 28,999 15,149 Three
4 $29,000 $58,000 $43,000 $29,000 $15,150 Rate
and Over and Over and Over and Over and Over Four

(b) For purposes of this subsection, rate three shall be:

(i) 5.01% for taxable years beginning or deemed to begin on or after January 1, 2014, and before January 1, 2026;

(ii) 4.55% for taxable years beginning or deemed to begin on or after January 1, 2026, and before January 1, 2027; and

(iii) 3.99% for taxable years beginning or deemed to begin on or after January 1, 2027.

(c) For purposes of this subsection, rate four shall be:

(i) 6.84% for taxable years beginning or deemed to begin on or after January 1, 2014, and before January 1, 2023;

(ii) 6.64% for taxable years beginning or deemed to begin on or after January 1, 2023, and before January 1, 2024;

(iii) 5.84% for taxable years beginning or deemed to begin on or after January 1, 2024, and before January 1, 2025;

(iv) 5.20% for taxable years beginning or deemed to begin on or after January 1, 2025, and before January 1, 2026;

(v) 4.55% for taxable years beginning or deemed to begin on or after January 1, 2026, and before January 1, 2027; and

(vi) 3.99% for taxable years beginning or deemed to begin on or after January 1, 2027.

(3)(a) For taxable years beginning or deemed to begin on or after January 1, 2015, the minimum and maximum dollar amounts for each income tax bracket provided in subsection (2) of this section shall be adjusted for inflation by the percentage determined under subdivision (3)(b) of this section. The rate applicable to any such income tax bracket shall not be changed as part of any adjustment under this subsection. The minimum and maximum dollar amounts for each income tax bracket as adjusted shall be rounded to the nearest ten-dollar amount. If the adjusted amount for any income tax bracket ends in a five, it shall be rounded up to the nearest ten-dollar amount.

(b)(i) For taxable years beginning or deemed to begin on or after January 1, 2015, and before January 1, 2018, the Tax Commissioner shall adjust the income tax brackets by the percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue Code of 1986, as it existed prior to December 22, 2017, except that in section 1(f)(3)(B) of the code the year 2013 shall be substituted for the year 1992. For 2015, the Tax Commissioner shall then determine the percent change from the twelve months ending on August 31, 2013, to the twelve months ending on August 31, 2014, and in each subsequent year, from the twelve months ending on August 31, 2013, to the twelve months ending on August 31 of the year preceding the taxable year. The Tax Commissioner shall prescribe new tax rate schedules that apply in lieu of the schedules set forth in subsection (2) of this section.

(ii) For taxable years beginning or deemed to begin on or after January 1, 2018, the Tax Commissioner shall adjust the income tax brackets based on the percentage change in the Consumer Price Index for All Urban Consumers published by the federal Bureau of Labor Statistics from the twelve months ending on August 31, 2016, to the twelve months ending on August 31 of the year preceding the taxable year. The Tax Commissioner shall prescribe new tax rate schedules that apply in lieu of the schedules set forth in subsection (2) of this section.

(4) Whenever the tax brackets or tax rates are changed by the Legislature, the Tax Commissioner shall update the tax rate schedules to reflect the new tax brackets or tax rates and shall publish such updated schedules.

(5) The Tax Commissioner shall prepare, from the rate schedules, tax tables which can be used by a majority of the taxpayers to determine their Nebraska tax liability. The design of the tax tables shall be determined by the Tax Commissioner. The size of the tax table brackets may change as the level of income changes. The difference in tax between two tax table brackets shall not exceed fifteen dollars. The Tax Commissioner may build the personal exemption credit and standard deduction amounts into the tax tables.

(6) For taxable years beginning or deemed to begin on or after January 1, 2013, the tax rate applied to other federal taxes included in the computation of the Nebraska individual income tax shall be 29.6 percent.

(7) The Tax Commissioner may require by rule and regulation that all taxpayers shall use the tax tables if their income is less than the maximum income included in the tax tables.

Source:Laws 2012, LB970, § 5;    Laws 2014, LB987, § 1;    Laws 2018, LB1090, § 1;    Laws 2022, LB873, § 1;    Laws 2023, LB754, § 7.    
Effective Date: June 1, 2023


77-2715.04. Repealed. Laws 1986, LB 739, § 2.

77-2715.05. Repealed. Laws 1986, LB 739, § 2.

77-2715.06. Repealed. Laws 1986, LB 737, § 1.

77-2715.07. Income tax credits.

(1) There shall be allowed to qualified resident individuals as a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967:

(a) A credit equal to the federal credit allowed under section 22 of the Internal Revenue Code; and

(b) A credit for taxes paid to another state as provided in section 77-2730.

(2) There shall be allowed to qualified resident individuals against the income tax imposed by the Nebraska Revenue Act of 1967:

(a) For returns filed reporting federal adjusted gross incomes of greater than twenty-nine thousand dollars, a nonrefundable credit equal to twenty-five percent of the federal credit allowed under section 21 of the Internal Revenue Code of 1986, as amended, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such nonrefundable credit shall be allowed only if the individual would have received the federal credit allowed under section 21 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining eligibility for the federal credit;

(b) For returns filed reporting federal adjusted gross income of twenty-nine thousand dollars or less, a refundable credit equal to a percentage of the federal credit allowable under section 21 of the Internal Revenue Code of 1986, as amended, whether or not the federal credit was limited by the federal tax liability. The percentage of the federal credit shall be one hundred percent for incomes not greater than twenty-two thousand dollars, and the percentage shall be reduced by ten percent for each one thousand dollars, or fraction thereof, by which the reported federal adjusted gross income exceeds twenty-two thousand dollars, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such refundable credit shall be allowed only if the individual would have received the federal credit allowed under section 21 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining eligibility for the federal credit;

(c) A refundable credit as provided in section 77-5209.01 for individuals who qualify for an income tax credit as a qualified beginning farmer or livestock producer under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended;

(d) A refundable credit for individuals who qualify for an income tax credit under the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, or the Volunteer Emergency Responders Incentive Act; and

(e) A refundable credit equal to ten percent of the federal credit allowed under section 32 of the Internal Revenue Code of 1986, as amended, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such refundable credit shall be allowed only if the individual would have received the federal credit allowed under section 32 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining eligibility for the federal credit.

(3) There shall be allowed to all individuals as a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967:

(a) A credit for personal exemptions allowed under section 77-2716.01;

(b) A credit for contributions to certified community betterment programs as provided in the Community Development Assistance Act. Each partner, each shareholder of an electing subchapter S corporation, each beneficiary of an estate or trust, or each member of a limited liability company shall report his or her share of the credit in the same manner and proportion as he or she reports the partnership, subchapter S corporation, estate, trust, or limited liability company income;

(c) A credit for investment in a biodiesel facility as provided in section 77-27,236;

(d) A credit as provided in the New Markets Job Growth Investment Act;

(e) A credit as provided in the Nebraska Job Creation and Mainstreet Revitalization Act;

(f) A credit to employers as provided in sections 77-27,238 and 77-27,240;

(g) A credit as provided in the Affordable Housing Tax Credit Act;

(h) A credit to grocery store retailers, restaurants, and agricultural producers as provided in section 77-27,241; and

(i) A credit as provided in the Opportunity Scholarships Act.

(4) There shall be allowed as a credit against the income tax imposed by the Nebraska Revenue Act of 1967:

(a) A credit to all resident estates and trusts for taxes paid to another state as provided in section 77-2730;

(b) A credit to all estates and trusts for contributions to certified community betterment programs as provided in the Community Development Assistance Act; and

(c) A refundable credit for individuals who qualify for an income tax credit as an owner of agricultural assets under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or after January 1, 2009, under the Internal Revenue Code of 1986, as amended. The credit allowed for each partner, shareholder, member, or beneficiary of a partnership, corporation, limited liability company, or estate or trust qualifying for an income tax credit as an owner of agricultural assets under the Beginning Farmer Tax Credit Act shall be equal to the partner's, shareholder's, member's, or beneficiary's portion of the amount of tax credit distributed pursuant to subsection (6) of section 77-5211.

(5)(a) For all taxable years beginning on or after January 1, 2007, and before January 1, 2009, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each partner, shareholder, member, or beneficiary of a partnership, subchapter S corporation, limited liability company, or estate or trust a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the partner's, shareholder's, member's, or beneficiary's portion of the amount of franchise tax paid to the state under sections 77-3801 to 77-3807 by a financial institution.

(b) For all taxable years beginning on or after January 1, 2009, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each partner, shareholder, member, or beneficiary of a partnership, subchapter S corporation, limited liability company, or estate or trust a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 equal to the partner's, shareholder's, member's, or beneficiary's portion of the amount of franchise tax paid to the state under sections 77-3801 to 77-3807 by a financial institution.

(c) Each partner, shareholder, member, or beneficiary shall report his or her share of the credit in the same manner and proportion as he or she reports the partnership, subchapter S corporation, limited liability company, or estate or trust income. If any partner, shareholder, member, or beneficiary cannot fully utilize the credit for that year, the credit may not be carried forward or back.

(6) There shall be allowed to all individuals nonrefundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-3604 and refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-3605.

(7)(a) For taxable years beginning or deemed to begin on or after January 1, 2020, and before January 1, 2026, under the Internal Revenue Code of 1986, as amended, a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 in the amount of five thousand dollars shall be allowed to any individual who purchases a residence during the taxable year if such residence:

(i) Is located within an area that has been declared an extremely blighted area under section 18-2101.02;

(ii) Is the individual's primary residence; and

(iii) Was not purchased from a family member of the individual or a family member of the individual's spouse.

(b) The credit provided in this subsection shall be claimed for the taxable year in which the residence is purchased. If the individual cannot fully utilize the credit for such year, the credit may be carried forward to subsequent taxable years until fully utilized.

(c) No more than one credit may be claimed under this subsection with respect to a single residence.

(d) The credit provided in this subsection shall be subject to recapture by the Department of Revenue if the individual claiming the credit sells or otherwise transfers the residence or quits using the residence as his or her primary residence within five years after the end of the taxable year in which the credit was claimed.

(e) For purposes of this subsection, family member means an individual's spouse, child, parent, brother, sister, grandchild, or grandparent, whether by blood, marriage, or adoption.

(8) There shall be allowed to all individuals refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, and the Renewable Chemical Production Tax Credit Act.

(9)(a) For taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended, a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 shall be allowed to the parent of a stillborn child if:

(i) A fetal death certificate is filed pursuant to subsection (1) of section 71-606 for such child;

(ii) Such child had advanced to at least the twentieth week of gestation; and

(iii) Such child would have been a dependent of the individual claiming the credit.

(b) The amount of the credit shall be two thousand dollars.

(c) The credit shall be allowed for the taxable year in which the stillbirth occurred.

(10) There shall be allowed to all individuals refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-7203 and nonrefundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-7204.

Source:Laws 1987, LB 773, § 6;    Laws 1989, LB 739, § 2;    Laws 1993, LB 5, § 3;    Laws 1993, LB 121, § 503;    Laws 1993, LB 240, § 4;    Laws 1993, LB 815, § 23;    Laws 1994, LB 977, § 12;    Laws 1996, LB 898, § 5;    Laws 1998, LB 1028, § 2;    Laws 1999, LB 630, § 1;    Laws 2001, LB 433, § 4;    Laws 2005, LB 312, § 12;    Laws 2006, LB 968, § 8;    Laws 2006, LB 990, § 1;    Laws 2007, LB343, § 3;    Laws 2007, LB367, § 20;    Laws 2007, LB456, § 1;    Laws 2009, LB165, § 12;    Laws 2011, LB389, § 12;    Laws 2012, LB1128, § 22;    Laws 2014, LB191, § 17;    Laws 2015, LB591, § 12;    Laws 2016, LB774, § 7;    Laws 2016, LB884, § 19;    Laws 2016, LB886, § 6;    Laws 2016, LB889, § 10;    Laws 2019, LB86, § 10;    Laws 2019, LB560, § 1;    Laws 2020, LB1107, § 130;    Laws 2021, LB432, § 11;    Laws 2022, LB917, § 3;    Laws 2022, LB1261, § 10;    Laws 2023, LB727, § 69;    Laws 2023, LB753, § 14;    Laws 2023, LB754, § 8.    

Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB727, section 69, with LB753, section 14, and LB754, section 8, to reflect all amendments.

Note: Changes made by LB727 became operative September 2, 2023. Changes made by LB753 became operative January 1, 2024. Changes made by LB754 became effective June 1, 2023.


Cross References

77-2715.08. Capital gains; terms, defined.

For purposes of this section and section 77-2715.09, unless the context otherwise requires:

(1) Capital stock means common or preferred stock, either voting or nonvoting. Capital stock does not include stock rights, stock warrants, stock options, or debt securities;

(2)(a) Corporation means any corporation which, at the time of the first sale or exchange for which the election is made, has been in existence and actively doing business in this state for at least three years.

(b) Corporation also includes:

(i) Any corporation which is a member of a unitary group of corporations, as defined in section 77-2734.04, which includes a corporation defined in subdivision (2)(a) of this section; and

(ii) Any predecessor or successor corporation of a corporation defined in subdivision (2)(a) of this section.

(c) All corporations issuing capital stock for which an election under section 77-2715.09 is made shall, at the time of the first sale or exchange for which the election is made, have (i) at least five shareholders and (ii) at least two shareholders or groups of shareholders who are not related to each other and each of which owns at least ten percent of the capital stock.

(d) For purposes of subdivision (2)(c) of this section:

(i) Each participant in an employee stock ownership trust qualified under section 401(a) of the Internal Revenue Code of 1986, as amended, is a shareholder; and

(ii) Two persons shall be considered to be related when, under section 318 of the Internal Revenue Code of 1986, as amended, one is a person who owns, directly or indirectly, capital stock that if directly owned would be attributed to the other person or is the brother, sister, aunt, uncle, cousin, niece, or nephew of the other person who owns capital stock either directly or indirectly;

(3) Extraordinary dividend means any dividend exceeding twenty percent of the fair market value of the stock on which it is paid as of the date the dividend is declared; and

(4) Predecessor or successor corporation means a corporation that was a party to a reorganization that was entirely or substantially tax free and that occurred during or after the employment of the individual making an election under section 77-2715.09.

Source:Laws 1987, LB 775, § 11;    Laws 1991, LB 773, § 11; Laws 2007, LB343, § 4;    Laws 2013, LB573, § 1.    


Annotations

77-2715.09. Capital stock; sale or exchange; extraordinary dividend and capital gains treatment.

(1) Every resident individual may elect under this section to subtract from federal adjusted gross income, or for trusts qualifying under subdivision (2)(c) of this section from taxable income, the extraordinary dividends paid on and the capital gain from the sale or exchange of capital stock of a corporation acquired by the individual (a) on account of employment by such corporation or (b) while employed by such corporation.

(2)(a) Each individual shall be entitled to one election under subsection (1) of this section during his or her lifetime for the capital stock of one corporation.

(b) The election shall apply to subsequent extraordinary dividends paid and sales and exchanges in any taxable year if the dividend is received on, or the sale or exchange is of, capital stock in the same corporation and such capital stock was acquired as provided in subsection (1) of this section.

(c) After the individual makes an election, such election shall apply to extraordinary dividends paid on, and the sale or exchange of, capital stock of the corporation transferred by inter vivos gift from the individual to his or her spouse or issue or a trust for the benefit of the individual's spouse or issue if such capital stock was acquired as provided in subsection (1) of this section. This subdivision shall apply, in the case of the spouse, only if the spouse was married to such individual on the date of the extraordinary dividend or sale or exchange or the date of death of the individual.

(d) If the individual dies without making an election, the surviving spouse or, if there is no surviving spouse, the oldest surviving issue may make the election for capital stock that would have qualified under subdivision (c) of this subsection.

(3) An election under subsection (1) of this section shall be made by including a written statement with the taxpayer's Nebraska income tax return or an amended return for the taxable year for which the election is made. The written statement shall identify the corporation that issued the stock and the grounds for the election under this section and shall state that the taxpayer elects to have this section apply.

Source:Laws 1987, LB 775, § 12;    Laws 1991, LB 773, § 12; Laws 2007, LB343, § 5.    


Annotations

77-2716. Income tax; adjustments.

(1) The following adjustments to federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be made for interest or dividends received:

(a)(i) There shall be subtracted interest or dividends received by the owner of obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States; and

(ii) There shall be subtracted interest received by the owner of obligations of the State of Nebraska or its political subdivisions or authorities which are Build America Bonds to the extent includable in gross income for federal income tax purposes;

(b) There shall be subtracted that portion of the total dividends and other income received from a regulated investment company which is attributable to obligations described in subdivision (a) of this subsection as reported to the recipient by the regulated investment company;

(c) There shall be added interest or dividends received by the owner of obligations of the District of Columbia, other states of the United States, or their political subdivisions, authorities, commissions, or instrumentalities to the extent excluded in the computation of gross income for federal income tax purposes except that such interest or dividends shall not be added if received by a corporation which is a regulated investment company;

(d) There shall be added that portion of the total dividends and other income received from a regulated investment company which is attributable to obligations described in subdivision (c) of this subsection and excluded for federal income tax purposes as reported to the recipient by the regulated investment company; and

(e)(i) Any amount subtracted under this subsection shall be reduced by any interest on indebtedness incurred to carry the obligations or securities described in this subsection or the investment in the regulated investment company and by any expenses incurred in the production of interest or dividend income described in this subsection to the extent that such expenses, including amortizable bond premiums, are deductible in determining federal taxable income.

(ii) Any amount added under this subsection shall be reduced by any expenses incurred in the production of such income to the extent disallowed in the computation of federal taxable income.

(2) There shall be allowed a net operating loss derived from or connected with Nebraska sources computed under rules and regulations adopted and promulgated by the Tax Commissioner consistent, to the extent possible under the Nebraska Revenue Act of 1967, with the laws of the United States. For a resident individual, estate, or trust, the net operating loss computed on the federal income tax return shall be adjusted by the modifications contained in this section. For a nonresident individual, estate, or trust or for a partial-year resident individual, the net operating loss computed on the federal return shall be adjusted by the modifications contained in this section and any carryovers or carrybacks shall be limited to the portion of the loss derived from or connected with Nebraska sources.

(3) There shall be subtracted from federal adjusted gross income for all taxable years beginning on or after January 1, 1987, the amount of any state income tax refund to the extent such refund was deducted under the Internal Revenue Code, was not allowed in the computation of the tax due under the Nebraska Revenue Act of 1967, and is included in federal adjusted gross income.

(4) Federal adjusted gross income, or, for a fiduciary, federal taxable income shall be modified to exclude the portion of the income or loss received from a small business corporation with an election in effect under subchapter S of the Internal Revenue Code or from a limited liability company organized pursuant to the Nebraska Uniform Limited Liability Company Act that is not derived from or connected with Nebraska sources as determined in section 77-2734.01.

(5) There shall be subtracted from federal adjusted gross income or, for corporations and fiduciaries, federal taxable income dividends received or deemed to be received from corporations which are not subject to the Internal Revenue Code.

(6) There shall be subtracted from federal taxable income a portion of the income earned by a corporation subject to the Internal Revenue Code of 1986 that is actually taxed by a foreign country or one of its political subdivisions at a rate in excess of the maximum federal tax rate for corporations. The taxpayer may make the computation for each foreign country or for groups of foreign countries. The portion of the taxes that may be deducted shall be computed in the following manner:

(a) The amount of federal taxable income from operations within a foreign taxing jurisdiction shall be reduced by the amount of taxes actually paid to the foreign jurisdiction that are not deductible solely because the foreign tax credit was elected on the federal income tax return;

(b) The amount of after-tax income shall be divided by one minus the maximum tax rate for corporations in the Internal Revenue Code; and

(c) The result of the calculation in subdivision (b) of this subsection shall be subtracted from the amount of federal taxable income used in subdivision (a) of this subsection. The result of such calculation, if greater than zero, shall be subtracted from federal taxable income.

(7) Federal adjusted gross income shall be modified to exclude any amount repaid by the taxpayer for which a reduction in federal tax is allowed under section 1341(a)(5) of the Internal Revenue Code.

(8)(a) Federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be reduced, to the extent included, by income from interest, earnings, and state contributions received from the Nebraska educational savings plan trust created in sections 85-1801 to 85-1817 and any account established under the achieving a better life experience program as provided in sections 77-1401 to 77-1409.

(b) Federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be reduced by any contributions as a participant in the Nebraska educational savings plan trust or contributions to an account established under the achieving a better life experience program made for the benefit of a beneficiary as provided in sections 77-1401 to 77-1409, to the extent not deducted for federal income tax purposes, but not to exceed five thousand dollars per married filing separate return or ten thousand dollars for any other return. With respect to a qualified rollover within the meaning of section 529 of the Internal Revenue Code from another state's plan, any interest, earnings, and state contributions received from the other state's educational savings plan which is qualified under section 529 of the code shall qualify for the reduction provided in this subdivision. For contributions by a custodian of a custodial account including rollovers from another custodial account, the reduction shall only apply to funds added to the custodial account after January 1, 2014.

(c) For taxable years beginning or deemed to begin on or after January 1, 2021, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced, to the extent included in the adjusted gross income of an individual, by the amount of any contribution made by the individual's employer into an account under the Nebraska educational savings plan trust owned by the individual, not to exceed five thousand dollars per married filing separate return or ten thousand dollars for any other return.

(d) Federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be increased by:

(i) The amount resulting from the cancellation of a participation agreement refunded to the taxpayer as a participant in the Nebraska educational savings plan trust to the extent previously deducted under subdivision (8)(b) of this section; and

(ii) The amount of any withdrawals by the owner of an account established under the achieving a better life experience program as provided in sections 77-1401 to 77-1409 for nonqualified expenses to the extent previously deducted under subdivision (8)(b) of this section.

(9)(a) For income tax returns filed after September 10, 2001, for taxable years beginning or deemed to begin before January 1, 2006, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be increased by eighty-five percent of any amount of any federal bonus depreciation received under the federal Job Creation and Worker Assistance Act of 2002 or the federal Jobs and Growth Tax Act of 2003, under section 168(k) or section 1400L of the Internal Revenue Code of 1986, as amended, for assets placed in service after September 10, 2001, and before December 31, 2005.

(b) For a partnership, limited liability company, cooperative, including any cooperative exempt from income taxes under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, subchapter S corporation, or joint venture, the increase shall be distributed to the partners, members, shareholders, patrons, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities.

(c) For a corporation with a unitary business having activity both inside and outside the state, the increase shall be apportioned to Nebraska in the same manner as income is apportioned to the state by section 77-2734.05.

(d) The amount of bonus depreciation added to federal adjusted gross income or, for corporations and fiduciaries, federal taxable income by this subsection shall be subtracted in a later taxable year. Twenty percent of the total amount of bonus depreciation added back by this subsection for tax years beginning or deemed to begin before January 1, 2003, under the Internal Revenue Code of 1986, as amended, may be subtracted in the first taxable year beginning or deemed to begin on or after January 1, 2005, under the Internal Revenue Code of 1986, as amended, and twenty percent in each of the next four following taxable years. Twenty percent of the total amount of bonus depreciation added back by this subsection for tax years beginning or deemed to begin on or after January 1, 2003, may be subtracted in the first taxable year beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended, and twenty percent in each of the next four following taxable years.

(10) For taxable years beginning or deemed to begin on or after January 1, 2003, and before January 1, 2006, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be increased by the amount of any capital investment that is expensed under section 179 of the Internal Revenue Code of 1986, as amended, that is in excess of twenty-five thousand dollars that is allowed under the federal Jobs and Growth Tax Act of 2003. Twenty percent of the total amount of expensing added back by this subsection for tax years beginning or deemed to begin on or after January 1, 2003, may be subtracted in the first taxable year beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended, and twenty percent in each of the next four following tax years.

(11)(a) For taxable years beginning or deemed to begin before January 1, 2018, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by contributions, up to two thousand dollars per married filing jointly return or one thousand dollars for any other return, and any investment earnings made as a participant in the Nebraska long-term care savings plan under the Long-Term Care Savings Plan Act, to the extent not deducted for federal income tax purposes.

(b) For taxable years beginning or deemed to begin before January 1, 2018, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be increased by the withdrawals made as a participant in the Nebraska long-term care savings plan under the act by a person who is not a qualified individual or for any reason other than transfer of funds to a spouse, long-term care expenses, long-term care insurance premiums, or death of the participant, including withdrawals made by reason of cancellation of the participation agreement, to the extent previously deducted as a contribution or as investment earnings.

(12) There shall be added to federal adjusted gross income for individuals, estates, and trusts any amount taken as a credit for franchise tax paid by a financial institution under sections 77-3801 to 77-3807 as allowed by subsection (5) of section 77-2715.07.

(13)(a) For taxable years beginning or deemed to begin on or after January 1, 2015, and before January 1, 2024, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by the amount received as benefits under the federal Social Security Act which are included in the federal adjusted gross income if:

(i) For taxpayers filing a married filing joint return, federal adjusted gross income is fifty-eight thousand dollars or less; or

(ii) For taxpayers filing any other return, federal adjusted gross income is forty-three thousand dollars or less.

(b) For taxable years beginning or deemed to begin on or after January 1, 2020, and before January 1, 2024, under the Internal Revenue Code of 1986, as amended, the Tax Commissioner shall adjust the dollar amounts provided in subdivisions (13)(a)(i) and (ii) of this section by the same percentage used to adjust individual income tax brackets under subsection (3) of section 77-2715.03.

(c) For taxable years beginning or deemed to begin on or after January 1, 2021, and before January 1, 2024, under the Internal Revenue Code of 1986, as amended, a taxpayer may claim the reduction to federal adjusted gross income allowed under this subsection or the reduction to federal adjusted gross income allowed under subsection (14) of this section, whichever provides the greater reduction.

(14)(a) For taxable years beginning or deemed to begin on or after January 1, 2021, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by a percentage of the social security benefits that are received and included in federal adjusted gross income. The pertinent percentage shall be:

(i) Five percent for taxable years beginning or deemed to begin on or after January 1, 2021, and before January 1, 2022, under the Internal Revenue Code of 1986, as amended;

(ii) Forty percent for taxable years beginning or deemed to begin on or after January 1, 2022, and before January 1, 2023, under the Internal Revenue Code of 1986, as amended;

(iii) Sixty percent for taxable years beginning or deemed to begin on or after January 1, 2023, and before January 1, 2024, under the Internal Revenue Code of 1986, as amended; and

(iv) One hundred percent for taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended.

(b) For purposes of this subsection, social security benefits means benefits received under the federal Social Security Act.

(c) For taxable years beginning or deemed to begin on or after January 1, 2021, and before January 1, 2024, under the Internal Revenue Code of 1986, as amended, a taxpayer may claim the reduction to federal adjusted gross income allowed under this subsection or the reduction to federal adjusted gross income allowed under subsection (13) of this section, whichever provides the greater reduction.

(15)(a) For taxable years beginning or deemed to begin on or after January 1, 2015, and before January 1, 2022, under the Internal Revenue Code of 1986, as amended, an individual may make a one-time election within two calendar years after the date of his or her retirement from the military to exclude income received as a military retirement benefit by the individual to the extent included in federal adjusted gross income and as provided in this subdivision. The individual may elect to exclude forty percent of his or her military retirement benefit income for seven consecutive taxable years beginning with the year in which the election is made or may elect to exclude fifteen percent of his or her military retirement benefit income for all taxable years beginning with the year in which he or she turns sixty-seven years of age.

(b) For taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended, an individual may exclude one hundred percent of the military retirement benefit income received by such individual to the extent included in federal adjusted gross income.

(c) For purposes of this subsection, military retirement benefit means retirement benefits that are periodic payments attributable to service in the uniformed services of the United States for personal services performed by an individual prior to his or her retirement. The term includes retirement benefits described in this subdivision that are reported to the individual on either:

(i) An Internal Revenue Service Form 1099-R received from the United States Department of Defense; or

(ii) An Internal Revenue Service Form 1099-R received from the United States Office of Personnel Management.

(16) For taxable years beginning or deemed to begin on or after January 1, 2021, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by the amount received as a Segal AmeriCorps Education Award, to the extent such amount is included in federal adjusted gross income.

(17) For taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by the amount received by or on behalf of a firefighter for cancer benefits under the Firefighter Cancer Benefits Act to the extent included in federal adjusted gross income.

(18) There shall be subtracted from the federal adjusted gross income of individuals any amount received by the individual as student loan repayment assistance under the Teach in Nebraska Today Act, to the extent such amount is included in federal adjusted gross income.

(19) For taxable years beginning or deemed to begin on or after January 1, 2023, under the Internal Revenue Code of 1986, as amended, a retired individual who was employed full time as a firefighter or certified law enforcement officer for at least twenty years and who is at least sixty years of age as of the end of the taxable year may reduce his or her federal adjusted gross income by the amount of health insurance premiums paid by such individual during the taxable year, to the extent such premiums were not already deducted in determining the individual's federal adjusted gross income.

(20) For taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended, an individual may reduce his or her federal adjusted gross income by the amounts received as annuities under the Federal Employees Retirement System or the Civil Service Retirement System which were earned for being employed by the federal government, to the extent such amounts are included in federal adjusted gross income.

Source:Laws 1967, c. 487, § 16, p. 1579; Laws 1983, LB 619, § 1;    Laws 1984, LB 962, § 15;    Laws 1984, LB 1124, § 3;    Laws 1985, LB 273, § 50;    Laws 1986, LB 774, § 9;    Laws 1987, LB 523, § 20;    Laws 1987, LB 773, § 9;    Laws 1989, LB 458, § 2;    Laws 1989, LB 459, § 3;    Laws 1991, LB 773, § 13; Laws 1993, LB 121, § 504;    Laws 1994, LB 977, § 13;    Laws 1997, LB 401, § 2;    Laws 1998, LB 1028, § 3;    Laws 2000, LB 1003, § 15;    Laws 2002, LB 1085, § 18;    Laws 2003, LB 596, § 1;    Laws 2005, LB 216, § 10;    Laws 2006, LB 965, § 6;    Laws 2006, LB 968, § 9;    Laws 2007, LB338, § 1;    Laws 2007, LB368, § 135;    Laws 2007, LB456, § 2;    Laws 2010, LB197, § 1;    Laws 2010, LB888, § 104;    Laws 2013, LB283, § 6;    Laws 2013, LB296, § 1;    Laws 2014, LB987, § 2;    Laws 2015, LB591, § 13;    Laws 2016, LB756, § 1;    Laws 2016, LB776, § 3;    Laws 2018, LB738, § 1;    Laws 2019, LB610, § 7;    Laws 2020, LB153, § 1;    Laws 2020, LB477, § 1;    Laws 2020, LB1042, § 2;    Laws 2021, LB64, § 1;    Laws 2021, LB387, § 1;    Laws 2021, LB432, § 12;    Laws 2022, LB873, § 2;    Laws 2022, LB1218, § 9;    Laws 2022, LB1273, § 1;    Laws 2023, LB727, § 70;    Laws 2023, LB754, § 9.    

Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB727, section 70, with LB754, section 9, to reflect all amendments.

Note: Changes made by LB727 became operative September 2, 2023. Changes made by LB754 became effective June 1, 2023.


Cross References

77-2716.01. Personal exemptions; standard deduction; computation.

(1)(a) Through tax year 2017, every individual shall be allowed to subtract from his or her income tax liability an amount for personal exemptions. The amount allowed to be subtracted shall be the credit amount for the year as provided in this subdivision multiplied by the number of exemptions allowed on the federal return. For tax year 1993, the credit amount shall be sixty-five dollars; for tax year 1994, the credit amount shall be sixty-nine dollars; for tax year 1995, the credit amount shall be sixty-nine dollars; for tax year 1996, the credit amount shall be seventy-two dollars; for tax year 1997, the credit amount shall be eighty-six dollars; for tax year 1998, the credit amount shall be eighty-eight dollars; for tax year 1999, and each year thereafter through tax year 2017, the credit amount shall be adjusted for inflation by the method provided in section 151 of the Internal Revenue Code of 1986, as it existed prior to December 22, 2017. The eighty-eight-dollar credit amount shall be adjusted for cumulative inflation since 1998. If any credit amount is not an even dollar amount, the amount shall be rounded to the nearest dollar. For nonresident individuals and partial-year resident individuals, the personal exemption credit shall be subtracted as specified in subsection (3) of section 77-2715.

(b) Beginning with tax year 2018, every individual, except an individual that can be claimed for a child credit or dependent credit on the federal return of another taxpayer, shall be allowed to subtract from his or her income tax liability an amount for personal exemptions. The amount allowed to be subtracted shall be the credit amount for the year as provided in this subdivision multiplied by the sum of the number of child credits and dependent credits taken on the federal return, plus two for a married filing jointly return or plus one for any other return. For tax year 2018, the credit amount shall be one hundred thirty-four dollars. For tax year 2019 and each tax year thereafter, the credit amount shall be adjusted for inflation based on the percentage change in the Consumer Price Index for All Urban Consumers published by the federal Bureau of Labor Statistics from the twelve months ending on August 31, 2017, to the twelve months ending on August 31 of the year preceding the taxable year. If any credit amount is not an even dollar amount, the amount shall be rounded to the nearest dollar. For nonresident individuals and partial-year resident individuals, the personal exemption credit shall be subtracted as specified in subsection (3) of section 77-2715.

(2)(a) For tax years beginning or deemed to begin on or after January 1, 2003, and before January 1, 2004, under the Internal Revenue Code of 1986, as amended, every individual who did not itemize deductions on his or her federal return shall be allowed to subtract from federal adjusted gross income a standard deduction based on the filing status used on the federal return except as the amount is adjusted under section 77-2716.03. The standard deduction shall be the smaller of the federal standard deduction actually allowed or (i) for single taxpayers four thousand seven hundred fifty dollars, (ii) for head of household taxpayers seven thousand dollars, (iii) for married filing jointly taxpayers seven thousand nine hundred fifty dollars, and (iv) for married filing separately taxpayers three thousand nine hundred seventy-five dollars. Taxpayers who are allowed additional federal standard deduction amounts because of age or blindness shall be allowed an increase in the Nebraska standard deduction for each additional amount allowed on the federal return. The additional amounts shall be for married taxpayers, nine hundred fifty dollars, and for single or head of household taxpayers, one thousand one hundred fifty dollars.

(b) For tax years beginning or deemed to begin on or after January 1, 2007, and before January 1, 2018, under the Internal Revenue Code of 1986, as amended, every individual who did not itemize deductions on his or her federal return shall be allowed to subtract from federal adjusted gross income a standard deduction based on the filing status used on the federal return. The standard deduction shall be the smaller of the federal standard deduction actually allowed or (i) for single taxpayers three thousand dollars and (ii) for head of household taxpayers four thousand four hundred dollars. The standard deduction for married filing jointly taxpayers shall be double the standard deduction for single taxpayers, and for married filing separately taxpayers, the standard deduction shall be the same as single taxpayers. Taxpayers who are allowed additional federal standard deduction amounts because of age or blindness shall be allowed an increase in the Nebraska standard deduction for each additional amount allowed on the federal return. The additional amounts shall be for married taxpayers six hundred dollars and for single or head of household taxpayers seven hundred fifty dollars. The amounts in this subdivision will be indexed using 1987 as the base year.

(c) For tax years beginning or deemed to begin on or after January 1, 2007, and before January 1, 2018, the standard deduction amounts, including the additional standard deduction amounts, in this subsection shall be adjusted for inflation by the method provided in section 151 of the Internal Revenue Code of 1986, as it existed prior to December 22, 2017. If any amount is not a multiple of fifty dollars, the amount shall be rounded to the next lowest multiple of fifty dollars.

(3)(a) For tax years beginning or deemed to begin on or after January 1, 2018, every individual who did not itemize deductions on his or her federal return shall be allowed to subtract from federal adjusted gross income a standard deduction based on the filing status used on the federal return. The standard deduction shall be the smaller of the federal standard deduction actually allowed or (i) six thousand seven hundred fifty dollars for single taxpayers and (ii) nine thousand nine hundred dollars for head of household taxpayers. The standard deduction for married filing jointly taxpayers or qualifying widows or widowers shall be double the standard deduction for single taxpayers, and the standard deduction for married filing separately taxpayers shall be the same as the standard deduction for single taxpayers. Taxpayers who are allowed additional federal standard deduction amounts because of age or blindness shall be allowed an increase in the Nebraska standard deduction for each additional amount allowed on the federal return. The additional amounts shall be one thousand three hundred dollars for married taxpayers and one thousand six hundred dollars for single or head of household taxpayers.

(b) For tax years beginning or deemed to begin on or after January 1, 2019, the standard deduction amounts, including the additional standard deduction amounts, in this subsection shall be adjusted for inflation based on the percentage change in the Consumer Price Index for All Urban Consumers published by the federal Bureau of Labor Statistics from the twelve months ending on August 31, 2017, to the twelve months ending on August 31 of the year preceding the taxable year. If any amount is not a multiple of fifty dollars, the amount shall be rounded to the next lowest multiple of fifty dollars.

(4) Every individual who itemized deductions on his or her federal return shall be allowed to subtract from federal adjusted gross income the greater of either the standard deduction allowed in this section or his or her federal itemized deductions as defined in section 63(d) of the Internal Revenue Code of 1986, as amended, except for the amount for state or local income taxes included in federal itemized deductions before any federal disallowance.

Source:Laws 1987, LB 773, § 10;    Laws 1988, LB 1234, § 2;    Laws 1989, LB 739, § 3;    Laws 1991, LB 300, § 3;    Laws 1993, LB 240, § 5;    Laws 1997, LB 401, § 3;    Laws 1998, LB 1028, § 4;    Laws 2003, LB 596, § 2;    Laws 2004, LB 355, § 1;    Laws 2006, LB 968, § 10;    Laws 2007, LB367, § 21;    Laws 2018, LB1090, § 2;    Laws 2019, LB512, § 20.    


77-2716.02. Repealed. Laws 2000, LB 886, § 1.

77-2716.03. Income tax; disallowance of itemized deductions; calculation.

(1) Any taxpayer whose federal adjusted gross income is larger than the threshold amount determined under section 68 of the Internal Revenue Code of 1986, as amended, for the disallowance of itemized deductions shall calculate the amount of the excess.

(2) A taxpayer's tax liability shall be increased by an amount determined under this subsection. The amount shall be calculated by multiplying the maximum individual tax rate by ten percent of the excess calculated in subsection (1) of this section and subtracting the amount of the tax from the tax tables on ten percent of the excess from the result. The difference shall be the increase in the tax liability. If taxable income is less than ten percent of the excess, the calculation in this subsection shall be made using taxable income.

Source:Laws 1993, LB 240, § 6;    Laws 1995, LB 300, § 1;    Laws 2006, LB 968, § 11.    


77-2717. Income tax; estates; trusts; rate; fiduciary return; contents; filing; state income tax; contents; credits.

(1)(a)(i) For taxable years beginning or deemed to begin before January 1, 2014, the tax imposed on all resident estates and trusts shall be a percentage of the federal taxable income of such estates and trusts as modified in section 77-2716, plus a percentage of the federal alternative minimum tax and the federal tax on premature or lump-sum distributions from qualified retirement plans. The additional taxes shall be recomputed by (A) substituting Nebraska taxable income for federal taxable income, (B) calculating what the federal alternative minimum tax would be on Nebraska taxable income and adjusting such calculations for any items which are reflected differently in the determination of federal taxable income, and (C) applying Nebraska rates to the result. The federal credit for prior year minimum tax, after the recomputations required by the Nebraska Revenue Act of 1967, and the credits provided in the Nebraska Advantage Microenterprise Tax Credit Act and the Nebraska Advantage Research and Development Act shall be allowed as a reduction in the income tax due. A refundable income tax credit shall be allowed for all resident estates and trusts under the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, and the Nebraska Advantage Research and Development Act. A nonrefundable income tax credit shall be allowed for all resident estates and trusts as provided in the New Markets Job Growth Investment Act.

(ii) For taxable years beginning or deemed to begin on or after January 1, 2014, the tax imposed on all resident estates and trusts shall be a percentage of the federal taxable income of such estates and trusts as modified in section 77-2716, plus a percentage of the federal tax on premature or lump-sum distributions from qualified retirement plans. The additional taxes shall be recomputed by substituting Nebraska taxable income for federal taxable income and applying Nebraska rates to the result. The credits provided in the Nebraska Advantage Microenterprise Tax Credit Act and the Nebraska Advantage Research and Development Act shall be allowed as a reduction in the income tax due. A refundable income tax credit shall be allowed for all resident estates and trusts under the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, and the Renewable Chemical Production Tax Credit Act. A nonrefundable income tax credit shall be allowed for all resident estates and trusts as provided in the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the School Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable Housing Tax Credit Act, the Opportunity Scholarships Act, and sections 77-27,238, 77-27,240, and 77-27,241.

(b) The tax imposed on all nonresident estates and trusts shall be the portion of the tax imposed on resident estates and trusts which is attributable to the income derived from sources within this state. The tax which is attributable to income derived from sources within this state shall be determined by multiplying the liability to this state for a resident estate or trust with the same total income by a fraction, the numerator of which is the nonresident estate's or trust's Nebraska income as determined by sections 77-2724 and 77-2725 and the denominator of which is its total federal income after first adjusting each by the amounts provided in section 77-2716. The federal credit for prior year minimum tax, after the recomputations required by the Nebraska Revenue Act of 1967, reduced by the percentage of the total income which is attributable to income from sources outside this state, and the credits provided in the Nebraska Advantage Microenterprise Tax Credit Act and the Nebraska Advantage Research and Development Act shall be allowed as a reduction in the income tax due. A refundable income tax credit shall be allowed for all nonresident estates and trusts under the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, and the Renewable Chemical Production Tax Credit Act. A nonrefundable income tax credit shall be allowed for all nonresident estates and trusts as provided in the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the School Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable Housing Tax Credit Act, the Opportunity Scholarships Act, and sections 77-27,238, 77-27,240, and 77-27,241.

(2) In all instances wherein a fiduciary income tax return is required under the provisions of the Internal Revenue Code, a Nebraska fiduciary return shall be filed, except that a fiduciary return shall not be required to be filed regarding a simple trust if all of the trust's beneficiaries are residents of the State of Nebraska, all of the trust's income is derived from sources in this state, and the trust has no federal tax liability. The fiduciary shall be responsible for making the return for the estate or trust for which he or she acts, whether the income be taxable to the estate or trust or to the beneficiaries thereof. The fiduciary shall include in the return a statement of each beneficiary's distributive share of net income when such income is taxable to such beneficiaries.

(3) The beneficiaries of such estate or trust who are residents of this state shall include in their income their proportionate share of such estate's or trust's federal income and shall reduce their Nebraska tax liability by their proportionate share of the credits as provided in the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the School Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable Housing Tax Credit Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, the Renewable Chemical Production Tax Credit Act, the Opportunity Scholarships Act, and sections 77-27,238, 77-27,240, and 77-27,241. There shall be allowed to a beneficiary a refundable income tax credit under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or after January 1, 2001, under the Internal Revenue Code of 1986, as amended.

(4) If any beneficiary of such estate or trust is a nonresident during any part of the estate's or trust's taxable year, he or she shall file a Nebraska income tax return which shall include (a) in Nebraska adjusted gross income that portion of the estate's or trust's Nebraska income, as determined under sections 77-2724 and 77-2725, allocable to his or her interest in the estate or trust and (b) a reduction of the Nebraska tax liability by his or her proportionate share of the credits as provided in the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the School Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable Housing Tax Credit Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, the Renewable Chemical Production Tax Credit Act, the Opportunity Scholarships Act, and sections 77-27,238, 77-27,240, and 77-27,241 and shall execute and forward to the fiduciary, on or before the original due date of the Nebraska fiduciary return, an agreement which states that he or she will file a Nebraska income tax return and pay income tax on all income derived from or connected with sources in this state, and such agreement shall be attached to the Nebraska fiduciary return for such taxable year.

(5) In the absence of the nonresident beneficiary's executed agreement being attached to the Nebraska fiduciary return, the estate or trust shall remit a portion of such beneficiary's income which was derived from or attributable to Nebraska sources with its Nebraska return for the taxable year. For taxable years beginning or deemed to begin before January 1, 2013, the amount of remittance, in such instance, shall be the highest individual income tax rate determined under section 77-2715.02 multiplied by the nonresident beneficiary's share of the estate or trust income which was derived from or attributable to sources within this state. For taxable years beginning or deemed to begin on or after January 1, 2013, the amount of remittance, in such instance, shall be the highest individual income tax rate determined under section 77-2715.03 multiplied by the nonresident beneficiary's share of the estate or trust income which was derived from or attributable to sources within this state. The amount remitted shall be allowed as a credit against the Nebraska income tax liability of the beneficiary.

(6) The Tax Commissioner may allow a nonresident beneficiary to not file a Nebraska income tax return if the nonresident beneficiary's only source of Nebraska income was his or her share of the estate's or trust's income which was derived from or attributable to sources within this state, the nonresident did not file an agreement to file a Nebraska income tax return, and the estate or trust has remitted the amount required by subsection (5) of this section on behalf of such nonresident beneficiary. The amount remitted shall be retained in satisfaction of the Nebraska income tax liability of the nonresident beneficiary.

(7) For purposes of this section, unless the context otherwise requires, simple trust shall mean any trust instrument which (a) requires that all income shall be distributed currently to the beneficiaries, (b) does not allow amounts to be paid, permanently set aside, or used in the tax year for charitable purposes, and (c) does not distribute amounts allocated in the corpus of the trust. Any trust which does not qualify as a simple trust shall be deemed a complex trust.

(8) For purposes of this section, any beneficiary of an estate or trust that is a grantor trust of a nonresident shall be disregarded and this section shall apply as though the nonresident grantor was the beneficiary.

Source:Laws 1967, c. 487, § 17, p. 1579; Laws 1969, c. 690, § 1, p. 2683; Laws 1973, LB 531, § 1;    Laws 1985, LB 273, § 51;    Laws 1987, LB 523, § 21;    Laws 1991, LB 773, § 14; Laws 1994, LB 977, § 14;    Laws 2000, LB 1223, § 1;    Laws 2001, LB 433, § 5;    Laws 2005, LB 312, § 13;    Laws 2006, LB 1003, § 6;    Laws 2007, LB367, § 22;    Laws 2008, LB915, § 1;    Laws 2011, LB389, § 13;    Laws 2012, LB970, § 6;    Laws 2012, LB1128, § 23;    Laws 2013, LB308, § 2;    Laws 2014, LB191, § 18;    Laws 2016, LB774, § 8;    Laws 2016, LB884, § 20;    Laws 2016, LB889, § 11;    Laws 2020, LB1107, § 131;    Laws 2022, LB917, § 4;    Laws 2022, LB1261, § 11;    Laws 2023, LB727, § 71;    Laws 2023, LB753, § 15;    Laws 2023, LB754, § 10.    

Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB727, section 71, with LB753, section 15, and LB754, section 10, to reflect all amendments.

Note: Changes made by LB727 became operative September 2, 2023. Changes made by LB753 became operative January 1, 2024. Changes made by LB754 became effective June 1, 2023.


Cross References

Annotations

77-2718. Repealed. Laws 1987, LB 773, § 30.

77-2719. Repealed. Laws 1987, LB 773, § 30.

77-2720. Repealed. Laws 1984, LB 962, § 39.

77-2721. Repealed. Laws 1987, LB 773, § 30.

77-2722. Repealed. Laws 1984, LB 962, § 39.

77-2723. Repealed. Laws 1987, LB 773, § 30.

77-2724. Nonresident estates or trusts; income; how determined.

(1) For purposes of taxation of nonresident estates or trusts:

(a) Items of income, gain, loss, and deduction shall mean those items entering into the definition of federal distributable income;

(b) Items of income, gain, loss, and deduction entering into the definition of federal distributable net income shall include such items from another estate or trust of which the estate or trust is a beneficiary; and

(c) The source of items of income, gain, loss, or deduction shall be determined under regulations prescribed by the Tax Commissioner in accordance with the general rules in section 77-2733 as if the estate or trust were a nonresident individual.

(2) The taxable income of an estate or trust, before the proration required in subdivision (1)(b) of section 77-2717 to determine the tax attributable to income from sources within this state, shall consist of its share of items of income, gain, loss, and deduction which enter into the federal definition of distributable net income (a) increased or reduced by the amount of any items of income, gain, loss, or deduction which are recognized for federal income tax purposes but excluded from the federal definition of distributable net income of the estate or trust, (b) less the amount of the deduction for its federal exemption, and (c) increased or reduced by the modifications contained in section 77-2716 which relate to an item of estate or trust income.

Source:Laws 1967, c. 487, § 24, p. 1581; Laws 1987, LB 773, § 11;    Laws 1994, LB 977, § 15.    


77-2725. Nonresident estate or trust; share of income; how determined.

(1) The share of a nonresident estate or trust of items of income, gain, loss, and deduction entering into the definition of distributable net income and the share for purposes of section 77-2733 of a nonresident beneficiary of any estate or trust in estate or trust income, gain, loss, and deduction shall be the same amount, subject to the modifications contained in section 77-2716, and have the same character as for federal income tax purposes. When an item entering into the computation of such amounts is not characterized for federal income tax purposes, it shall have the same character as if realized directly from the source from which realized by the estate or trust or incurred in the same manner as incurred by the estate or trust.

(2) The Tax Commissioner may by rule and regulation establish such other method or methods of determining the respective shares of the beneficiaries and of the estate or trust in its income derived from sources in this state as may be appropriate and equitable.

Source:Laws 1967, c. 487, § 25, p. 1582; Laws 1984, LB 962, § 17;    Laws 1987, LB 773, § 12.    


77-2726. Repealed. Laws 1984, LB 962, § 39.

77-2727. Income tax; partnership; subject to act; credit; election to file return at entity level; how treated.

(1) Except as provided in subsection (6) of this section and subsection (5) of section 77-2775, a partnership as such shall not be subject to the income tax imposed by the Nebraska Revenue Act of 1967. Persons or their authorized representatives carrying on business as partners shall be liable for the income tax imposed by the Nebraska Revenue Act of 1967 only in their separate or individual capacities.

(2) The partners of such partnership who are residents of this state or corporations shall include in their incomes their proportionate share of such partnership's income.

(3) If any partner of such partnership is a nonresident individual during any part of the partnership's reporting year, he or she shall file a Nebraska income tax return which shall include in Nebraska adjusted gross income that portion of the partnership's Nebraska income, as determined under the provisions of sections 77-2728 and 77-2729, allocable to his or her interest in the partnership and shall execute and forward to the partnership, on or before the original due date of the Nebraska partnership return, an agreement which states that he or she will file a Nebraska income tax return and pay income tax on all income derived from or attributable to sources in this state, and such agreement shall be attached to the partnership's Nebraska return for such reporting year.

(4)(a) Except as provided in subdivision (c) of this subsection, in the absence of the nonresident individual partner's executed agreement being attached to the Nebraska partnership return, the partnership shall remit a portion of such partner's income which was derived from or attributable to Nebraska sources with its Nebraska return for the reporting year. For tax years beginning or deemed to begin before January 1, 2013, the amount of remittance, in such instance, shall be the highest individual income tax rate determined under section 77-2715.02 multiplied by the nonresident individual partner's share of the partnership income which was derived from or attributable to sources within this state. For tax years beginning or deemed to begin on or after January 1, 2013, the amount of remittance, in such instance, shall be the highest individual income tax rate determined under section 77-2715.03 multiplied by the nonresident individual partner's share of the partnership income which was derived from or attributable to sources within this state.

(b) Any amount remitted on behalf of any partner shall be allowed as a credit against the Nebraska income tax liability of the partner.

(c) Subdivision (a) of this subsection does not apply to a publicly traded partnership as defined by section 7704(b) of the Internal Revenue Code of 1986, as amended, that is treated as a partnership for the purposes of the code and that has agreed to file an annual information return with the Department of Revenue reporting the name, address, taxpayer identification number, and other information requested by the department of each unit holder with an income in the state in excess of five hundred dollars.

(5) The Tax Commissioner may allow a nonresident individual partner to not file a Nebraska income tax return if the nonresident individual partner's only source of Nebraska income was his or her share of the partnership's income which was derived from or attributable to sources within this state, the nonresident did not file an agreement to file a Nebraska income tax return, and the partnership has remitted the amount required by subsection (4) of this section on behalf of such nonresident individual partner. The amount remitted shall be retained in satisfaction of the Nebraska income tax liability of the nonresident individual partner.

(6) Notwithstanding any provision of this section to the contrary:

(a) For tax years beginning or deemed to begin on or after January 1, 2018, a partnership may annually make an irrevocable election to pay the taxes, interest, or penalties levied by the Nebraska Revenue Act of 1967 at the entity level for the taxable period covered by such return. For tax years beginning on or after January 1, 2023, such election must be made on or before the due date for filing the applicable income tax return, including any extensions that have been granted;

(b) An electing partnership with respect to a taxable period shall pay an income tax equivalent to the highest individual income tax rate provided in section 77-2715.03 multiplied by the electing partnership's net income as apportioned or allocated to this state in accordance with the Nebraska Revenue Act of 1967, for such taxable period;

(c) An electing partnership shall be treated as a corporation with respect to the requirements of section 77-2769 for payments of estimated tax. The requirement for payment of estimated tax under section 77-2769 shall not apply for tax years beginning prior to January 1, 2024. Payments of estimated tax made by an eligible partnership that does not make an election under this subsection shall be treated as income tax withholding on behalf of the partners;

(d) Except as provided in subdivision (e) of this subsection, the partners of an electing partnership must file a Nebraska return to report their pro rata or distributive share of the income of the electing partnership in accordance with the Nebraska Revenue Act of 1967, as applicable. In determining the sum of its pro rata or distributive share and computing the tax under this subsection, an electing partnership shall add back any amount of Nebraska tax imposed under the Nebraska Revenue Act of 1967 and deducted by the electing partnership for federal income tax purposes under section 164 of the Internal Revenue Code;

(e) A nonresident individual who is a partner of an electing partnership shall not be required to file a Nebraska tax return for a taxable year if, for such taxable year, the only source of income derived from or connected with sources within this state for such partner, or for the partner and the partner's spouse if a joint federal income tax return is filed, is from one or more electing partnerships or electing small business corporations as defined in subdivision (9)(a) of section 77-2734.01 for such taxable year and such nonresident individual partner's tax under the Nebraska Revenue Act of 1967 would be fully satisfied by the credit allowed to such partner under subdivision (g) of this subsection;

(f) If the amount calculated under subdivision (a) of this subsection results in a net operating loss, such net operating loss may not be carried forward to succeeding taxable years;

(g)(i) A refundable credit shall be available to the partners in an amount equal to their pro rata or distributive share of the Nebraska income tax paid by the electing partnership;

(ii) In the case of a partnership or small business corporation that is a partner of an electing partnership, the refundable credit under this subdivision (g) shall (A) be allowed to its partners or shareholders in accordance with the determination of income and distributive share of the Nebraska income tax paid by the electing partnership or (B) be applied against the partner's tax, interest, and penalty. Any excess credit deemed an overpayment may be refunded or applied to the subsequent tax year;

(iii) If a partnership making the election under this subsection is a partner of another electing partnership, net income shall be computed as provided in subsection (1) of this section. The upper tier electing partnership shall claim a credit for the tax paid by the lower tier electing partnership. The upper tier electing partnership shall distribute out the pro rata or distributive share of the credits to its partners for tax paid under this subsection by all tiers of electing partnerships. As used in this subdivision, the term lower tier electing partnership means an electing partnership in which some or all of the partners are an electing partnership. The term upper tier electing partnership means an electing partnership that is a partner of a lower tier electing partnership. An electing partnership may have two or more tiers; and

(h)(i) For tax years beginning or deemed to begin on or after January 1, 2018, but prior to January 1, 2023, the electing partnership must make the election under this subsection on or after January 1, 2023, but before December 31, 2025, in the form and manner prescribed by the Tax Commissioner for all years for which the election under this subsection is made on behalf of the electing partnership. The Tax Commissioner shall establish the form and manner, which shall not include any changes to the past returns other than those that are directly related to the election under this subsection.

(ii) Notwithstanding any other provision of law, if an electing partnership files in the form and manner as specified in subdivision (h)(i) of this subsection, the deadline for filing a claim for credit or refund prescribed in section 77-2793 shall be extended for affected partners of the electing partnership until the timeframe specified in section 77-2793 or January 31, 2026, whichever is later. The resulting claim of refund for tax years beginning prior to January 1, 2023, shall be submitted in the form and manner as prescribed by the Tax Commissioner. Neither the electing partnership nor its partners shall incur any penalties for late filing nor owe interest on such amounts. The Tax Commissioner shall not be required to pay interest on any amounts owed to the partners resulting from such refund claims.

(iii) Notwithstanding the dates provided in subdivision (h)(i) of this subsection, the Tax Commissioner shall have one year from the date an electing partnership files in the form and manner as specified in subdivision (h)(i) of this subsection to review and make a written proposed deficiency determination in accordance with section 77-2786. Any notice of deficiency determination made as specified in this subdivision may be enforced at any time within six years from the date of the notice of deficiency determination.

(7) For purposes of this section:

(a) Electing partnership means, with respect to a taxable period, an eligible partnership that has made an election pursuant to subsection (6) of this section with respect to such taxable period; and

(b) Eligible partnership means any partnership as provided for in section 7701(a)(2) of the Internal Revenue Code that has a filing requirement under the Nebraska Revenue Act of 1967 other than a publicly traded partnership as defined in section 7704 of the Internal Revenue Code. An eligible partnership includes any entity, including a limited liability company, treated as a partnership for federal income tax purposes that otherwise meets the requirements of this subdivision.

(8) For purposes of this section, any partner that is a grantor trust of a nonresident shall be disregarded and this section shall apply as though the nonresident grantor was the partner.

Source:Laws 1967, c. 487, § 27, p. 1583; Laws 1973, LB 531, § 2;    Laws 1985, LB 273, § 52;    Laws 1991, LB 773, § 15; Laws 2005, LB 216, § 11;    Laws 2008, LB915, § 2;    Laws 2012, LB970, § 7;    Laws 2023, LB754, § 11.    
Effective Date: June 1, 2023


Annotations

77-2727.01. Repealed. Laws 1996, LB 898, § 8.

77-2728. Income tax; partnership; income; how determined.

Each item of partnership income, gain, loss, or deduction shall have the same character for a partner under the provisions of the Nebraska Revenue Act of 1967 as it has for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner as if realized directly from the source from which realized by the partnership or incurred in the same manner as incurred by the partnership.

Source:Laws 1967, c. 487, § 28, p. 1583.


Annotations

77-2729. Nonresident partner; income; how determined.

(1) In determining the tax liability of a nonresident partner of any partnership, there shall be included in Nebraska adjusted gross income only that part derived from or connected with sources in this state of the partner's distributive share of items of partnership income, gain, loss, and deduction entering into his or her federal taxable income, as such part is determined under rules and regulations prescribed by the Tax Commissioner in accordance with the general rules in section 77-2733.

(2) In determining the sources of a nonresident partner's income, no effect shall be given to a provision in the partnership agreement which:

(a) Characterizes payments to the partner as being for services or for the use of capital, or allocated to the partner, as income or gain from sources outside this state, a greater proportion of his or her distributive share of partnership income or gain than the ratio of partnership income or gain from sources outside this state to partnership income or gain from all sources, except as authorized in subsection (4) of this section; or

(b) Allocates to the partner a greater proportion of a partnership item of loss or deduction connected with sources in this state than his or her proportionate share, for federal income tax purposes, of partnership loss or deduction generally, except as authorized in subsection (4) of this section.

(3) Any modification described in subsection (1) of section 77-2716 which relates to an item of partnership income, gain, loss, or deduction, shall be made in accordance with the partner's distributive share, for federal income tax purposes of the item to which the modification relates, but limited to the portion of such item derived from or connected with sources in this state.

(4) The Tax Commissioner may, on application, authorize the use of such other methods of determining a nonresident partner's portion of partnership items derived from or connected with sources in this state, and the modifications related thereto, as may be appropriate and equitable, on such terms and conditions as he or she may require.

(5) The character of partnership items for a nonresident partner shall be determined under section 77-2725.

Source:Laws 1967, c. 487, § 29, p. 1583; Laws 1987, LB 773, § 13.    


77-2730. Individual; resident estate or trust; income derived from another state; credit.

(1) A resident individual and a resident estate or trust shall be allowed a credit against the income tax otherwise due for the amount of any income tax imposed on him or her for each taxable year commencing on or after January 1, 1983, by another state of the United States or a political subdivision thereof or the District of Columbia on income derived from sources therein and which is also subject to income tax under sections 77-2714 to 77-27,123.

(2) The credit provided under sections 77-2714 to 77-27,135 shall not exceed the proportion of the income tax otherwise due under such sections that the amount of the taxpayer's adjusted gross income or total income derived from sources in the other taxing jurisdiction bears to federal adjusted gross income or total federal income.

(3) For purposes of subsection (1) of this section, a resident individual, estate, or trust shall be deemed to have paid a portion of the income tax imposed by another state, a political subdivision thereof, or the District of Columbia on the income of any partnership, trust, or estate when such resident individual, estate, or trust is a partner, or beneficiary and (a) the income taxed is included in the federal taxable income of the resident individual, estate, or trust and (b) the taxation of such partnership, trust, or estate by the other state is inconsistent with the taxation of such entity under the Internal Revenue Code, including any tax similar to the tax imposed under subsection (6) of section 77-2727 and subsection (8) of section 77-2734.01 for the taxable year imposed by another state of the United States or a political subdivision of such a state, or by the District of Columbia, with respect to the direct and indirect taxable income attributable to the resident individual, estate, or trust from an entity that is also subject to tax under sections 77-2714 to 77-2734.16. The amount of income tax deemed paid by the resident individual, estate, or trust shall be the same percentage of the total tax paid by the entity as the income included in federal taxable income of the resident is to the total taxable income of the entity as computed for the other state.

Source:Laws 1967, c. 487, § 30, p. 1584; Laws 1973, LB 526, § 2;    Laws 1985, LB 273, § 53;    Laws 1987, LB 6, § 2;    Laws 1987, LB 773, § 14;    Laws 1993, LB 121, § 505;    Laws 1994, LB 884, § 90;    Laws 2023, LB754, § 12.    
Effective Date: June 1, 2023


77-2731. Income tax; taxpayer; resident of more than one state; tax; credit.

If the taxpayer is regarded as a resident both of this state and another jurisdiction for purposes of personal income taxation, the Tax Commissioner shall reduce the tax on that portion of the taxpayer's income which is subjected to tax in both jurisdictions solely by virtue of dual residence; Provided, that the other taxing jurisdiction allows a similar reduction. The reduction shall be in an amount equal to that portion of the lower of the two taxes applicable to the income taxed twice which the tax imposed by this state bears to the combined taxes of the two jurisdictions on the income taxed twice.

Source:Laws 1967, c. 487, § 31, p. 1585.


77-2732. Married persons; separate federal returns; joint returns; how treated; revocation of election.

(1) If the federal tax liability of husband or wife is determined on separate federal returns, their tax liabilities in this state shall be separately determined.

(2) Except as provided in subsection (3) of this section, if the federal tax liability of husband and wife is determined on a joint federal return, their tax liability shall be determined in this state jointly and their tax liability shall be joint and several.

(3) If the federal tax liability of husband and wife is determined on a joint federal return and either husband or wife is a nonresident individual or partial-year resident individual and the other a resident individual, separate taxes shall be determined on their separate tax liabilities in this state on such forms as the Tax Commissioner shall prescribe and their tax liability shall be separate unless both elect to determine their joint tax liability in this state as if both were resident individuals, in which case their tax liability shall be joint and several. If a husband and wife file a joint federal income tax return but determine their tax liabilities in this state separately, they shall compute their tax liabilities in this state as if their federal tax liabilities had been determined separately.

(4) During the time a claim for credit or refund may be filed pursuant to section 77-2793, a husband and wife electing to be taxed as if both were residents of this state may revoke the election by each filing a separate return on such forms and in such manner as may be required by the Tax Commissioner.

Source:Laws 1967, c. 487, § 32, p. 1585; Laws 1987, LB 773, § 15;    Laws 1989, LB 459, § 4.    


77-2733. Income tax; nonresident; income in Nebraska; method of determination of tax; exception.

(1) The income of a nonresident individual derived from sources within this state shall be the sum of the following:

(a) The net amount of items of income, gain, loss, and deduction entering into his or her federal taxable income which are derived from or connected with sources in this state including (i) his or her distributive share of partnership income and deductions determined under section 77-2729, (ii) his or her share of small business corporation or limited liability company income determined under section 77-2734.01, and (iii) his or her share of estate or trust income and deductions determined under section 77-2725; and

(b) The portion of the modifications described in section 77-2716 which relates to income derived from sources in this state, including any modifications attributable to him or her as a partner.

(2) Items of income, gain, loss, and deduction derived from or connected with sources within this state are those items attributable to:

(a) The ownership or disposition of any interest in real or tangible personal property in this state;

(b) A business, trade, profession, or occupation carried on in this state; and

(c) Any lottery prize awarded in a lottery game conducted pursuant to the State Lottery Act.

(3) Income from intangible personal property including annuities, dividends, interest, and gains from the disposition of intangible personal property shall constitute income derived from sources within this state only to the extent that such income is from property employed in a business, trade, profession, or occupation carried on in this state.

(4) Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income, gains, losses, and deductions derived from or connected with sources in this state, under rules and regulations to be prescribed by the Tax Commissioner, but otherwise shall be determined in the same manner as the corresponding federal deductions.

(5) If a business, trade, profession, or occupation is carried on partly within and partly without this state, the items of income and deduction derived from or connected with sources within this state shall be determined by apportionment under rules and regulations to be prescribed by the Tax Commissioner.

(6) Compensation paid by the United States for service in the armed forces of the United States performed by a nonresident individual shall not constitute income derived from sources within this state.

(7) Compensation paid by a resident estate or trust for services by a nonresident fiduciary shall constitute income derived from sources within this state.

(8) Compensation paid by a business, trade, or profession shall constitute income derived from sources within this state if:

(a) The individual's service is performed entirely within this state;

(b) The individual's service is performed both within and without this state, but the service performed without this state is incidental to the individual's service within this state;

(c) The individual's service is performed without this state, but the service performed without this state is related to the transactions and activity of the business, trade, or profession carried on within this state; or

(d) Some of the service is performed in this state and (i) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state or (ii) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.

Source:Laws 1967, c. 487, § 33, p. 1585; Laws 1973, LB 526, § 3;    Laws 1984, LB 1124, § 19;    Laws 1987, LB 773, § 16;    Laws 1987, LB 523, § 22;    Laws 1993, LB 121, § 506;    Laws 1995, LB 134, § 4.    


Cross References

77-2733.01. Partial-year resident; determination of income.

The income of a partial-year resident individual derived from sources within this state shall be the sum of the following:

(1) All of the income, gain, loss, and deduction which is derived from or connected with sources within this state for a nonresident individual under section 77-2733; and

(2) Any income from intangible personal property, including, but not limited to, annuities, dividends, interest, and gains from the disposition of intangible personal property and any income from a partnership, limited liability company, estate, trust, or electing subchapter S corporation, that is realized while a resident of this state and that is not taxed by another state.

Source:Laws 1987, LB 773, § 17;    Laws 1993, LB 121, § 507.    


77-2734. Repealed. Laws 1984, LB 1124, § 22.

77-2734.01. Small business corporation shareholders; limited liability company members; determination of income; credit; Tax Commissioner; powers; return; when required; election to file return at entity level; how treated.

(1) Residents of Nebraska who are shareholders of a small business corporation having an election in effect under subchapter S of the Internal Revenue Code or who are members of a limited liability company organized pursuant to the Nebraska Uniform Limited Liability Company Act shall include in their Nebraska taxable income, to the extent includable in federal gross income, their proportionate share of such corporation's or limited liability company's federal income adjusted pursuant to this section. Income or loss from such corporation or limited liability company conducting a business, trade, profession, or occupation shall be included in the Nebraska taxable income of a shareholder or member who is a resident of this state to the extent of such shareholder's or member's proportionate share of the net income or loss from the conduct of such business, trade, profession, or occupation within this state, determined under subsection (2) of this section. A resident of Nebraska shall include in Nebraska taxable income fair compensation for services rendered to such corporation or limited liability company. Compensation actually paid shall be presumed to be fair unless it is apparent to the Tax Commissioner that such compensation is materially different from fair value for the services rendered or has been manipulated for tax avoidance purposes.

(2) The income of any small business corporation having an election in effect under subchapter S of the Internal Revenue Code or limited liability company organized pursuant to the Nebraska Uniform Limited Liability Company Act that is derived from or connected with Nebraska sources shall be determined in the following manner:

(a) If the small business corporation is a member of a unitary group, the small business corporation shall be deemed to be doing business within this state if any part of its income is derived from transactions with other members of the unitary group doing business within this state, and such corporation shall apportion its income by using the apportionment factor determined for the entire unitary group, including the small business corporation, under sections 77-2734.05 to 77-2734.15;

(b) If the small business corporation or limited liability company is not a member of a unitary group and is subject to tax in another state, it shall apportion its income under sections 77-2734.05 to 77-2734.15; and

(c) If the small business corporation or limited liability company is not subject to tax in another state, all of its income is derived from or connected with Nebraska sources.

(3) Nonresidents of Nebraska who are shareholders of such corporations or members of such limited liability companies shall file a Nebraska income tax return and shall include in Nebraska adjusted gross income their proportionate share of the corporation's or limited liability company's Nebraska income as determined under subsection (2) of this section.

(4) The nonresident shareholder or member shall execute and forward to the corporation or limited liability company before the filing of the corporation's or limited liability company's return an agreement which states he or she will file a Nebraska income tax return and pay the tax on the income derived from or connected with sources in this state, and such agreement shall be attached to the corporation's or limited liability company's Nebraska return for such taxable year.

(5) For taxable years beginning or deemed to begin before January 1, 2013, in the absence of the nonresident shareholder's or member's executed agreement being attached to the Nebraska return, the corporation or limited liability company shall remit with the return an amount equal to the highest individual income tax rate determined under section 77-2715.02 multiplied by the nonresident shareholder's or member's share of the corporation's or limited liability company's income which was derived from or attributable to this state. For taxable years beginning or deemed to begin on or after January 1, 2013, in the absence of the nonresident shareholder's or member's executed agreement being attached to the Nebraska return, the corporation or limited liability company shall remit with the return an amount equal to the highest individual income tax rate determined under section 77-2715.03 multiplied by the nonresident shareholder's or member's share of the corporation's or limited liability company's income which was derived from or attributable to this state. The amount remitted shall be allowed as a credit against the Nebraska income tax liability of the shareholder or member.

(6) The Tax Commissioner may allow a nonresident individual shareholder or member to not file a Nebraska income tax return if the nonresident individual shareholder's or member's only source of Nebraska income was his or her share of the small business corporation's or limited liability company's income which was derived from or attributable to sources within this state, the nonresident did not file an agreement to file a Nebraska income tax return, and the small business corporation or limited liability company has remitted the amount required by subsection (5) of this section on behalf of such nonresident individual shareholder or member. The amount remitted shall be retained in satisfaction of the Nebraska income tax liability of the nonresident individual shareholder or member.

(7) A small business corporation or limited liability company return shall be filed if the small business corporation or limited liability company has income derived from Nebraska sources.

(8) Notwithstanding any provision of this section to the contrary:

(a) For tax years beginning or deemed to begin on or after January 1, 2018, a small business corporation may annually make an irrevocable election to pay the taxes, interest, or penalties levied by the Nebraska Revenue Act of 1967 at the entity level for the taxable period covered by such return. For tax years beginning on or after January 1, 2023, such election must be made on or before the due date for filing the applicable income tax return, including any extensions that have been granted;

(b) An electing small business corporation with respect to a taxable period shall pay an income tax equivalent to the highest individual income tax rate provided in section 77-2715.03 multiplied by the electing small business corporation's net income as apportioned or allocated to this state in accordance with the Nebraska Revenue Act of 1967, for such taxable period;

(c) An electing small business corporation shall be treated as a corporation with respect to the requirements of section 77-2769 for payments of estimated tax. The requirement for payment of estimated tax under section 77-2769 shall not apply for tax years beginning prior to January 1, 2024. Payments of estimated tax made by an eligible small business corporation that does not make an election under this subsection shall be treated as income tax withholding on behalf of the shareholders;

(d) Except as provided in subdivision (e) of this subsection, the shareholders of an electing small business corporation must file a Nebraska return to report their pro rata or distributive share of the income of the electing small business corporation in accordance with the Nebraska Revenue Act of 1967, as applicable. In determining the sum of its pro rata or distributive share and computing the tax under this subsection, an electing small business corporation shall add back any amount of Nebraska tax imposed under the Nebraska Revenue Act of 1967 and deducted by the electing small business corporation for federal income tax purposes under section 164 of the Internal Revenue Code;

(e) A nonresident individual who is a shareholder of an electing small business corporation shall not be required to file a Nebraska tax return for a taxable year if, for such taxable year, the only source of income derived from or connected with sources within this state for such shareholder, or for the shareholder and the shareholder's spouse if a joint federal income tax return is filed, is from one or more electing small business corporations or electing partnerships as defined in subdivision (7)(a) of section 77-2727 for such taxable year and such nonresident individual shareholder's tax under the Nebraska Revenue Act of 1967 would be fully satisfied by the credit allowed to such shareholder under subdivision (g) of this subsection;

(f) If the amount calculated under subdivision (a) of this subsection results in a net operating loss, such net operating loss may not be carried forward to succeeding taxable years;

(g) A refundable credit shall be available to the shareholders in an amount equal to their pro rata or distributive share of the Nebraska income tax paid by the electing small business corporation; and

(h)(i) For tax years beginning or deemed to begin on or after January 1, 2018, but prior to January 1, 2023, the electing small business corporation must make the election under this subsection on or after January 1, 2023, but before December 31, 2025, in the form and manner prescribed by the Tax Commissioner for all years for which the election under this subsection is made on behalf of the electing small business corporation. The Tax Commissioner shall establish the form and manner, which shall not include any changes to the past returns other than those that are directly related to the election under this subsection.

(ii) Notwithstanding any other provision of law, if an electing small business corporation files in the form and manner as specified in subdivision (h)(i) of this subsection, the deadline for filing a claim for credit or refund prescribed in section 77-2793 shall be extended for affected shareholders of the electing small business corporation until the timeframe specified in section 77-2793 or January 31, 2026, whichever is later. The resulting claim of refund for tax years beginning prior to January 1, 2023, shall be submitted in the form and manner as prescribed by the Tax Commissioner. Neither the electing small business corporation nor its shareholders shall incur any penalties for late filing nor owe interest on such amounts. The Tax Commissioner shall not be required to pay interest on any amounts owed to the shareholders resulting from such refund claims.

(iii) Notwithstanding the dates provided in subdivision (h)(i) of this subsection, the Tax Commissioner shall have one year from the date an electing small business corporation files in the form and manner as specified in subdivision (h)(i) of this subsection to review and make a written proposed deficiency determination in accordance with section 77-2786. Any notice of deficiency determination made as specified in this subdivision may be enforced at any time within six years from the date of the notice of deficiency determination.

(9) For purposes of this section:

(a) Electing small business corporation means, with respect to a taxable period, an eligible small business corporation having an election in effect under subchapter S of the Internal Revenue Code that has made an election pursuant to subsection (8) of this section with respect to such taxable period; and

(b) Eligible small business corporation means an entity subject to taxation under subchapter S of the Internal Revenue Code and the regulations thereunder.

(10) For purposes of this section, any shareholder or member of the corporation or limited liability company that is a grantor trust of a nonresident shall be disregarded and this section shall apply as though the nonresident grantor was the shareholder or member.

Source:Laws 1984, LB 1124, § 4;    Laws 1985, LB 273, § 54;    Laws 1987, LB 523, § 23;    Laws 1987, LB 773, § 18;    Laws 1991, LB 773, § 16; Laws 1993, LB 121, § 508;    Laws 2005, LB 216, § 12;    Laws 2008, LB915, § 3;    Laws 2010, LB888, § 105;    Laws 2012, LB970, § 8;    Laws 2013, LB283, § 7;    Laws 2019, LB512, § 21;    Laws 2023, LB754, § 13.    
Effective Date: June 1, 2023


Cross References

77-2734.02. Corporate taxpayer; income tax rate; how determined.

(1) Except as provided in subsection (2) of this section, a tax is hereby imposed on the taxable income of every corporate taxpayer that is doing business in this state:

(a) For taxable years beginning or deemed to begin before January 1, 2013, at a rate equal to one hundred fifty and eight-tenths percent of the primary rate imposed on individuals under section 77-2701.01 on the first one hundred thousand dollars of taxable income and at the rate of two hundred eleven percent of such rate on all taxable income in excess of one hundred thousand dollars. The resultant rates shall be rounded to the nearest one hundredth of one percent;

(b) For taxable years beginning or deemed to begin on or after January 1, 2013, and before January 1, 2022, at a rate equal to 5.58 percent on the first one hundred thousand dollars of taxable income and at the rate of 7.81 percent on all taxable income in excess of one hundred thousand dollars;

(c) For taxable years beginning or deemed to begin on or after January 1, 2022, and before January 1, 2023, at a rate equal to 5.58 percent on the first one hundred thousand dollars of taxable income and at the rate of 7.50 percent on all taxable income in excess of one hundred thousand dollars;

(d) For taxable years beginning or deemed to begin on or after January 1, 2023, and before January 1, 2024, at a rate equal to 5.58 percent on the first one hundred thousand dollars of taxable income and at the rate of 7.25 percent on all taxable income in excess of one hundred thousand dollars;

(e) For taxable years beginning or deemed to begin on or after January 1, 2024, and before January 1, 2025, at a rate equal to 5.58 percent on the first one hundred thousand dollars of taxable income and at the rate of 5.84 percent on all taxable income in excess of one hundred thousand dollars;

(f) For taxable years beginning or deemed to begin on or after January 1, 2025, and before January 1, 2026, at the rate of 5.20 percent on all taxable income;

(g) For taxable years beginning or deemed to begin on or after January 1, 2026, and before January 1, 2027, at the rate of 4.55 percent on all taxable income; and

(h) For taxable years beginning or deemed to begin on or after January 1, 2027, at the rate of 3.99 percent on all taxable income.

For corporate taxpayers with a fiscal year that does not coincide with the calendar year, the individual rate used for this subsection shall be the rate in effect on the first day, or the day deemed to be the first day, of the taxable year.

(2) An insurance company shall be subject to taxation at the lesser of the rate described in subsection (1) of this section or the rate of tax imposed by the state or country in which the insurance company is domiciled if the insurance company can establish to the satisfaction of the Tax Commissioner that it is domiciled in a state or country other than Nebraska that imposes on Nebraska domiciled insurance companies a retaliatory tax against the tax described in subsection (1) of this section.

(3) For a corporate taxpayer that is subject to tax in another state, its taxable income shall be the portion of the taxpayer's federal taxable income, as adjusted, that is determined to be connected with the taxpayer's operations in this state pursuant to sections 77-2734.05 to 77-2734.15.

(4) Each corporate taxpayer shall file only one income tax return for each taxable year.

Source:Laws 1984, LB 1124, § 5;    Laws 1987, LB 773, § 19;    Laws 1995, LB 300, § 2;    Laws 2008, LB888, § 1;    Laws 2012, LB970, § 9;    Laws 2021, LB432, § 13;    Laws 2022, LB873, § 3;    Laws 2023, LB754, § 14.    
Effective Date: June 1, 2023


77-2734.03. Income tax; tax credits.

(1)(a) For taxable years commencing prior to January 1, 1997, any (i) insurer paying a tax on premiums and assessments pursuant to section 77-908 or 81-523, (ii) electric cooperative organized under the Joint Public Power Authority Act, or (iii) credit union shall be credited, in the computation of the tax due under the Nebraska Revenue Act of 1967, with the amount paid during the taxable year as taxes on such premiums and assessments and taxes in lieu of intangible tax.

(b) For taxable years commencing on or after January 1, 1997, any insurer paying a tax on premiums and assessments pursuant to section 77-908 or 81-523, any electric cooperative organized under the Joint Public Power Authority Act, or any credit union shall be credited, in the computation of the tax due under the Nebraska Revenue Act of 1967, with the amount paid during the taxable year as (i) taxes on such premiums and assessments included as Nebraska premiums and assessments under section 77-2734.05 and (ii) taxes in lieu of intangible tax.

(c) For taxable years commencing or deemed to commence prior to, on, or after January 1, 1998, any insurer paying a tax on premiums and assessments pursuant to section 77-908 or 81-523 shall be credited, in the computation of the tax due under the Nebraska Revenue Act of 1967, with the amount paid during the taxable year as assessments allowed as an offset against premium and related retaliatory tax liability pursuant to section 44-4233.

(2) There shall be allowed to corporate taxpayers a tax credit for contributions to community betterment programs as provided in the Community Development Assistance Act.

(3) There shall be allowed to corporate taxpayers a refundable income tax credit under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or after January 1, 2001, under the Internal Revenue Code of 1986, as amended.

(4) The changes made to this section by Laws 2004, LB 983, apply to motor fuels purchased during any tax year ending or deemed to end on or after January 1, 2005, under the Internal Revenue Code of 1986, as amended.

(5) There shall be allowed to corporate taxpayers refundable income tax credits under the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, and the Renewable Chemical Production Tax Credit Act.

(6) There shall be allowed to corporate taxpayers a nonrefundable income tax credit for investment in a biodiesel facility as provided in section 77-27,236.

(7) There shall be allowed to corporate taxpayers a nonrefundable income tax credit as provided in the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the School Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable Housing Tax Credit Act, the Opportunity Scholarships Act, and sections 77-27,238, 77-27,240, and 77-27,241.

Source:Laws 1984, LB 1124, § 6;    Laws 1985, LB 273, § 55;    Laws 1986, LB 1114, § 19;    Laws 1992, LB 719A, § 176;    Laws 1992, LB 1063, § 184; Laws 1993, LB 5, § 4;    Laws 1993, LB 815, § 25;    Laws 1996, LB 898, § 6;    Laws 1997, LB 55, § 4;    Laws 1997, LB 61, § 1;    Laws 1998, LB 1035, § 24;    Laws 2000, LB 1223, § 2;    Laws 2001, LB 433, § 6;    Laws 2004, LB 983, § 68;    Laws 2005, LB 312, § 14;    Laws 2007, LB343, § 6;    Laws 2007, LB367, § 23;    Laws 2012, LB1128, § 24;    Laws 2014, LB191, § 19;    Laws 2016, LB774, § 9;    Laws 2016, LB884, § 21;    Laws 2016, LB889, § 12;    Laws 2020, LB1107, § 132;    Laws 2022, LB917, § 5;    Laws 2022, LB1261, § 12;    Laws 2023, LB727, § 72;    Laws 2023, LB753, § 16;    Laws 2023, LB754, § 15.    

Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB727, section 72, with LB753, section 16, and LB754, section 15, to reflect all amendments.

Note: Changes made by LB727 became operative September 2, 2023. Changes made by LB753 became operative January 1, 2024. Changes made by LB754 became effective June 1, 2023.


Cross References

77-2734.04. Income tax; terms, defined.

As used in sections 77-2734.01 to 77-2734.15, unless the context otherwise requires:

(1) Annual average amortized loan balance means the total of the ending monthly values in the tax year divided by the number of months in the tax year;

(2) Application service means computer-based services provided to customers over a network for a fee without selling, renting, leasing, licensing, or otherwise transferring computer software. Application service includes, but is not limited to, software as a service, platform as a service, or infrastructure as a service;

(3) Billing address means the location indicated in the books and records of the taxpayer as the address of record where the bill relating to the customer's account is mailed;

(4) Borrower located in this state means:

(a) A borrower who is engaged in a trade or business in this state; or

(b) A borrower whose billing address is in this state, but is not engaged in a trade or business in this state;

(5) Buyer includes a buyer, licensee, user, or person providing consideration for the use of an item or service;

(6) Commercial domicile means the principal place from which the trade or business of the taxpayer is directed or managed;

(7) Communications company means any entity that:

(a) Is:

(i) A telecommunications company as defined in section 86-119 that provides a telecommunications service as defined in section 86-121 or provides broadband, Internet, or video services as defined in section 86-593;

(ii) A communications company that provides the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, and includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as a voice over Internet protocol service or is classified by the Federal Communications Commission as enhanced or value added. The company may also provide video programming provided by, or generally considered comparable to programming provided by, a television broadcast station, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Video programming includes, but is not limited to, cable service as defined in 47 U.S.C. 522 and video programming services delivered by providers of commercial mobile radio service, as defined in 47 C.F.R. 20.3; or

(iii) A broadcast company that provides an over-the-air broadcast radio station or over-the-air broadcast television station; and

(b) Owns, operates, manages, or controls any plant or equipment used to furnish telecommunications service, communication services, broadband services, Internet service, or broadcast services directly or indirectly to the general public at large and derives at least seventy percent of its gross sales for the current taxable year from the provision of these services. For purposes of the seventy-percent test, gross sales does not include interest, dividends, rents, royalties, capital gains, or ordinary gains from asset dispositions, other than in the normal course of business;

(8) Compensation means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services;

(9) Corporate taxpayer means any corporation that is not a part of a unitary business or the part of a unitary business, whether it is one or more corporations, that is doing business in this state. Corporate taxpayer does not include any corporation that has a valid election under subchapter S of the Internal Revenue Code or any financial institution as defined in section 77-3801;

(10) Corporation means all corporations and all other entities that are taxed as corporations under the Internal Revenue Code;

(11) Credit card means a credit card, debit card, purchase card, charge card, and travel or entertainment card;

(12) Doing business in this state means the exercise of the corporation's franchise in this state or the conduct of operations in this state that exceed the limitations provided in 15 U.S.C. 381 on a state imposing an income tax;

(13) Federal taxable income means the corporate taxpayer's federal taxable income as reported to the Internal Revenue Service or as subsequently changed or amended. Except as provided in subsection (5) or (6) of section 77-2716, no adjustment shall be allowed for a change from any election made or the method used in computing federal taxable income. An election to file a federal consolidated return shall not require the inclusion in any unitary group of a corporation that is not a part of the unitary business;

(14) Intangible property means all personal property which is not tangible personal property and includes, but is not limited to, patents, copyrights, trademarks, trade names, service names, franchises, licenses, royalties, processes, techniques, formulas, and technical know-how but excludes money;

(15) Loan means any extension of credit resulting from direct negotiations between the taxpayer and its customer or the purchase, in whole or in part, of an extension of credit from another person. Loan includes participations, syndications, and leases treated as loans for federal income tax purposes. Loan does not include properties treated as loans under section 595 of the Internal Revenue Code prior to its repeal by Public Law 104-188, futures or forward contracts, options, notional principal contracts such as swaps, credit card receivables, including purchased credit card relationships, noninterest bearing balances due from depository institutions, cash items in the process of collection, federal funds sold, securities purchased under agreements to resell, assets held in a trading account, securities, interests in a real estate mortgage investment conduit or other mortgage-backed or asset-backed security, and other similar items;

(16) Loan secured by real property means a loan or other obligation which, at the time the original loan or obligation was incurred or during the current taxable year, was secured by real property. A loan secured by real property includes an installment sales contract for real property;

(17) Loan secured by tangible personal property means a loan or other obligation which, at the time the original loan or obligation was incurred or during the current taxable year, was secured by tangible personal property. A loan secured by tangible personal property includes an installment sales contract for tangible personal property;

(18) Loan servicing fee includes (a) fees or charges for originating and processing loan applications, including, but not limited to, prepaid interest and loan discounts, (b) fees or charges for collecting, tracking, and accounting for loan payments received, and (c) gross receipts from the sale of loan servicing rights;

(19) Participation means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral;

(20) Sales means all gross receipts of the taxpayer, except:

(a) Income from discharge of indebtedness;

(b) Amounts received from hedging transactions involving intangible assets; or

(c) Net gains from marketable securities held for investment;

(21) Single economic unit means a business in which there is a sharing or exchange of value between the parts of the unit. A sharing or exchange of value occurs when the parts of the business are linked by (a) common management or (b) common operational resources that produce material (i) economies of scale, (ii) transfers of value, or (iii) flow of goods, capital, or services between the parts of the unit.

(A) For the purposes of this subdivision, common management includes, but is not limited to, (I) a centralized executive force or (II) review or approval authority over long-term operations with or without the exercise of control over the day-to-day operations.

(B) For the purposes of this subdivision, common operational resources includes, but is not limited to, centralization of any of the following: Accounting, advertising, engineering, financing, insurance, legal, personnel, pension or benefit plans, purchasing, research and development, selling, or union relations;

(22) State means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof;

(23) Subject to the Internal Revenue Code means a corporation that meets the requirements of section 243 of the Internal Revenue Code in order for its distributions to qualify for the dividends-received deduction;

(24) Taxable income means federal taxable income as adjusted and, if appropriate, as apportioned;

(25) Taxable year means the period the corporate taxpayer used on its federal income tax return;

(26) Treasury function is the pooling, management, and investment of intangible assets to satisfy the cash-flow needs of the trade or business, including, but not limited to, providing liquidity for a taxpayer's business cycle, providing a reserve for business contingencies, or business acquisitions. A taxpayer principally engaged in the trade or business of purchasing and selling intangible assets of the type typically held in a taxpayer's treasury function, such as a registered broker-dealer, is not performing a treasury function with respect to income so produced;

(27) Unitary business means a business that is conducted as a single economic unit by one or more corporations with common ownership and shall include all activities in different lines of business that contribute to the single economic unit.

For the purposes of this subdivision, common ownership means one or more corporations owning fifty percent or more of another corporation; and

(28) Unitary group means the group of corporations that are conducting a unitary business.

Source:Laws 1984, LB 1124, § 7;    Laws 1986, LB 774, § 10;    Laws 1987, LB 773, § 20;    Laws 2012, LB872, § 1.    


77-2734.05. Income tax; unitary business; taxable income; how determined.

(1) Except as provided in subsection (1) of section 77-4105, unitary business having income from business activity that is taxable both within and without this state shall, for taxable years beginning or deemed to begin before January 1, 1988, determine its taxable income by multiplying its federal taxable income, as adjusted, by a fraction, which is the average of the property factor plus the payroll factor plus the sales factor. For taxable years beginning or deemed to begin on or after January 1, 1988, the weight given to the property and payroll factors in the average shall be reduced and the fraction shall be determined as provided in section 77-2734.16. For taxable years beginning or deemed to begin on or after January 1, 1992, federal taxable income, as adjusted, shall be multiplied by the sales factor only.

(2) If a unitary business does not have any property, payroll, or sales anywhere, then the average in subsection (1) of this section shall be the average of the remaining factors.

(3) In the computation of the factors only the part of a unitary group that is subject to the Internal Revenue Code shall be included, except as provided in section 77-2734.09.

Source:Laws 1984, LB 1124, § 8;    Laws 1987, LB 772, § 2;    Laws 1987, LB 775, § 16.    


77-2734.06. Income tax; unitary business; apportionment of income.

(1) The entire federal taxable income of a unitary business operating both within and without this state is presumed to be subject to apportionment. Other than for adjustments required to be made under the Nebraska Revenue Act of 1967, for any income that is claimed to be not subject to apportionment, a taxpayer needs to show by a preponderance of the evidence (a) that the income is not a part of the unitary business and (b) that the taxpayer has not claimed the same income is part of the unitary business and subject to apportionment in another state with substantially the same law on apportionability of income.

(2) There shall be subtracted from federal taxable income any income that the taxpayer has shown is not subject to apportionment under subsection (1) of this section. The amount subtracted under this section shall be reduced, but not below zero, by a portion of the interest expense as determined under subsection (3) of this section and any expense incurred in the production of the income described in this section.

(3) The interest expense for the reduction required in subsection (2) of this section shall be determined by dividing the taxpayer's average investment in the activities producing the income by the taxpayer's average total assets and multiplying such ratio by the total interest deduction allowed in the computation of federal taxable income.

(4) For the purposes of this section, investment in activities producing the income described in this section shall mean the tax basis of the assets, both tangible and intangible, that are used in the activities or are the basis of the receipt of the described income.

(5) Whenever it is necessary to properly reflect the ratio of investment in the activities to total assets, the Tax Commissioner may permit or require the computation of the average provided for in subsection (3) of this section using amounts from interim balance sheets.

(6) The corporation may use, in lieu of the tax basis for the computation in subsection (3) of this section, the amounts from a balance sheet included with the federal return or as required to be reported to federal or state regulatory agencies if (a) such amounts are not materially different from tax basis, (b) the amounts are prepared consistently from year to year, and (c) absent a change in circumstances, the amounts are consistently used by the corporation from year to year. The Tax Commissioner may require a corporation to use the alternative amounts in order to maintain consistency or may require the corporation to show that the amounts used do not materially differ from the tax basis.

Source:Laws 1984, LB 1124, § 9;    Laws 1986, LB 774, § 11.    


77-2734.07. Income tax; adjustments to federal taxable income; rules and regulations.

(1) There shall be added to federal taxable income the amount of any federal deduction because of a carryforward of a net operating loss or any capital loss.

(2) There shall be allowed a deduction for a carryforward of a net operating loss or capital loss that is connected with operations in Nebraska. For a net operating loss or capital loss incurred in taxable years beginning or deemed to begin on or after January 1, 1987, and before January 1, 2014, the deduction shall be allowed only for each of the five taxable years succeeding the year of the loss. For a net operating loss incurred in taxable years beginning or deemed to begin on or after January 1, 2014, the deduction shall be allowed only for each of the twenty taxable years succeeding the year of the loss. For a capital loss incurred in taxable years beginning or deemed to begin on or after January 1, 2014, the deduction shall be allowed only for each of the five taxable years succeeding the year of the loss.

(3) Except as otherwise provided in this section, there shall be allowed a carryback of a net operating loss or a capital loss that is connected with operations in Nebraska. For a net operating loss or capital loss incurred in taxable years beginning or deemed to begin on or after January 1, 1987, no such carryback shall be allowed.

(4) The amounts in subsections (2) and (3) of this section shall be computed pursuant to rules and regulations adopted and promulgated by the Tax Commissioner. Such regulations shall be in accord with the laws of the United States regarding carryforwards and carrybacks.

Source:Laws 1984, LB 1124, § 10;    Laws 1987, LB 772, § 4;    Laws 2013, LB308, § 3.    


77-2734.08. Income tax; group of corporations as taxpayer; adjustments to income.

(1) When the corporate taxpayer is a group of corporations that does not file a consolidated federal return, the sum of each corporation's federal taxable income shall be used to determine taxable income.

(2) The sum of the federal taxable income of the group of corporations shall be adjusted to eliminate intercompany transactions.

(3) If the group of corporations includes a domestic international sales corporation or other entity accorded similar treatment under the Internal Revenue Code, the income of the group shall include only that portion of the domestic international sales corporation's income that is considered to be a dividend to the parent.

(a) The sales to the domestic international sales corporation shall be eliminated.

(b) The domestic international sales corporation's property, payroll, and sales shall be included in the factors to the extent of the ownership of the rest of the group.

(c) There shall be no adjustment to the factors when the deferred income is realized by the parent.

Source:Laws 1984, LB 1124, § 11.    


77-2734.09. Income tax; unitary group; use of special apportionment formula; effect.

Any member of a unitary group that is required or permitted to use an apportionment formula other than one prescribed by section 77-2734.05 shall be included in a return only with other corporations using the same apportionment formula. The income and the factors of such corporation shall not be used in computing the taxable income of the rest of the unitary group that does not use such special formula. A corporation using a formula required by a regulation issued pursuant to subsection (3) of section 77-2734.15 is using a formula prescribed by section 77-2734.05.

Source:Laws 1984, LB 1124, § 12;    Laws 1987, LB 772, § 5.    


77-2734.10. Income tax; adjustment of factors.

The factors computed pursuant to sections 77-2734.05 to 77-2734.15 shall be adjusted in the following situations:

(1) The sales factor shall include the income from intangibles such as interest, royalties, or dividends and the net income from gains on the sale of intangibles;

(2) Except as provided in subdivision (1) of this section, the factors shall not include in the denominator any amount that cannot be assigned to a numerator because of the inability to reasonably identify the location of an income-producing activity;

(3) The factors shall not include any amount that was eliminated as an intercompany transaction;

(4) The factors shall not include any property, payroll, or sales that are a part of the production of income that is not subject to apportionment;

(5) The property factor shall include the intangible drilling costs incurred on property that is owned or rented and used during the tax period; and

(6) The property factor of a corporation or unitary business engaged in the exploration and extraction of natural resources shall include undeveloped mineral leases and royalty payments on producing leases, except that those mineral leases determined not suitable for production shall not be included in the property factor.

Source:Laws 1984, LB 1124, § 13;    Laws 1985, LB 273, § 56.    


77-2734.11. Income tax; corporate taxpayer; when deemed taxable in another state.

(1) A corporate taxpayer is taxable in another state if that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not do so.

(2) The failure to provide upon request of the Tax Commissioner a copy of the return filed and proof of payment of a net income tax imposed by another state creates a rebuttable presumption that the taxpayer is not subject to tax in the other state.

Source:Laws 1984, LB 1124, § 14.    


77-2734.12. Income tax; property factor; how determined.

(1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the real and tangible personal property owned or rented and used during the tax period.

(2) Property owned is valued at its original cost. Property rented is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer.

(3) The average value of property shall be determined by averaging the values at the beginning and end of the tax period, but the Tax Commissioner may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the property.

Source:Laws 1984, LB 1124, § 15;    Laws 1985, LB 273, § 57.    


77-2734.13. Income tax; payroll factor; how determined.

(1) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.

(2) Compensation is paid in this state if:

(a) The individual's service is performed entirely within the state;

(b) The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or

(c) Some of the service is performed in the state and (i) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state or (ii) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.

Source:Laws 1984, LB 1124, § 16.    


77-2734.14. Income tax; sales factor; how determined.

(1) The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales everywhere during the tax period.

(2) Sales of tangible personal property in this state include:

(a) Property delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of the sale;

(b) Property shipped from an office, store, warehouse, factory, or other place of storage in this state if (i) the purchaser is the United States Government or (ii) for all taxable years beginning or deemed to begin before January 1, 1995, under the Internal Revenue Code of 1986, as amended, the taxpayer is not taxable in the state of the purchaser;

(c) For all taxable years beginning or deemed to begin on or after January 1, 1995, and before January 1, 1996, under the Internal Revenue Code of 1986, as amended, two-thirds of the property shipped from an office, store, warehouse, factory, or other place of storage in this state if the taxpayer is not taxable in the state of the purchaser; or

(d) For all taxable years beginning or deemed to begin on or after January 1, 1996, but before January 1, 1997, under the Internal Revenue Code of 1986, as amended, one-third of the property shipped from an office, store, warehouse, factory, or other place of storage in this state if the taxpayer is not taxable in the state of the purchaser.

(3) For sales other than sales of tangible personal property, except for sales as described in subsection (4) of this section:

(a) Sales of a service are in this state if the sales are derived from a buyer within this state. Sales of a service are derived from a buyer within this state if:

(i) The service, when rendered, relates to real property located in this state;

(ii) The service, when rendered, relates to tangible personal property located in this state at the time the service is received;

(iii) The service, when rendered, is provided to an individual physically present in this state at the time the service is received; or

(iv) The service, when rendered, is provided to a buyer engaged in a trade or business in this state and relates to that part of the trade or business then operated in this state. For services described in this subdivision, if the buyer uses the service within and without this state, calculated using any reasonable method, the sales are apportioned between the use in this state in proportion to the use of the service in this state and the other states;

(b) Sales of an application service are in this state if the buyer uses the application service in this state. The application service is used in this state if, the buyer, from a location in this state:

(i) Uses it in the regular course of business in this state; or

(ii) If the buyer is an individual, his or her billing address is in this state.

If the buyer is not an individual and uses the application service within and without this state, calculated using any reasonable method, the sales are apportioned between the use in this state in proportion to the use of the application service in this state and the other states. If the location of a sale cannot be determined, the sale of an application service is in the state from which the order was placed in the regular course of the customer's business. If that office cannot be determined, the sales are considered received at the customer's billing address;

(c) Sales of intangible property are in this state if the buyer uses the intangible property at a location in this state. If the buyer uses the intangible property within and without this state, the sales are apportioned between this state in proportion to the use of the intangible property in this state and the other states. If the location of a sale cannot be determined, the sale of intangible property is in this state if the buyer's billing address is in this state;

(d) Interest, dividends, investment income, and other net gains from transactions in intangible assets held in connection with a treasury function, other than net gains from the sale or redemption of marketable securities, are in this state to the extent that it is included in taxable income and to the extent the investment, management, and record-keeping activities associated with corporate investments occur in this state;

(e) Gross interest, fees, points, charges, and penalties from loans, net gains from the sale of loans, and loan servicing fees derived from loans owned by the taxpayer or another person, including servicing participations, secured by real property or tangible personal property are in this state if the property securing the loan is located in this state. If the real or tangible personal property securing the loan is located within and without this state, the gross interest, fees, points, charges, and penalties from loans, net gains from the sale of loans, and loan servicing fees derived from loans owned by the taxpayer or another person, including servicing participations, are based upon the ratio of the annual average amortized loan balance of a loan secured by the real property or tangible personal property located in this state to the annual average amortized loan balance of a loan secured by the real property or tangible personal property located within and without this state;

(f) Gross interest, fees, points, charges, and penalties from loans, net gains from the sale of loans, and loan servicing fees derived from loans owned by the taxpayer or another person, including servicing participations, that are not secured by real or tangible personal property are in this state if the borrower is located in this state, which location shall be presumed to be the borrower's billing address;

(g) Gross interest, fees, points, charges, and penalties from credit card receivables and gross receipts from annual fees and other fees charged to credit card holders are in this state if the billing address of the credit card holder is in this state;

(h) Net gains, but not less than zero, from the sale of credit card receivables are in this state if the billing address of the credit card holder is in this state;

(i) Gross receipts from the lease, rental, or licensing of tangible personal property are in this state to the extent the property is located in this state;

(j) Gross receipts from the sale, lease, rental, or licensing of real property are in this state if the real property is located in this state; and

(k) Sales other than sales of tangible personal property not specifically addressed in this subsection must be sourced so as to fairly represent the extent of the taxpayer's business activity in this state. This requirement will be considered met in the following situations: (i) If the buyer is an individual, a sale is deemed to have occurred at the buyer's billing address; and (ii) if the buyer is not an individual and the sale is from an order placed in the regular course of the customer's business, the sale is deemed to have occurred in the state from which the order was placed and, if that place cannot be readily determined, the sale is deemed to have occurred at the customer's billing address.

(4) To continue the tax policy of this state which enhances the deployment of broadband in rural and underserved areas of this state, sales, other than sales of tangible personal property, of a communications company are in this state if: (a) The income-producing activity is performed in this state; or (b) the income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.

Source:Laws 1984, LB 1124, § 17;    Laws 1985, LB 273, § 58;    Laws 1995, LB 559, § 1;    Laws 2012, LB872, § 2.    


Annotations

77-2734.15. Income tax; apportionment; petition for special method of apportionment; Tax Commissioner; powers and duties.

(1) If the apportionment provisions contained in sections 77-2734.01 to 77-2734.14 do not fairly represent the taxable income that is reasonably attributable to the business operations conducted within this state, the taxpayer may petition for or the Tax Commissioner may require, in respect to all or any part of the federal taxable income, if reasonable:

(a) The inclusion of one or more additional factors which will fairly represent the taxpayer's taxable income in this state;

(b) The exclusion of any one or more factors;

(c) Separate accounting; or

(d) The employment of any other method to effectuate an equitable apportionment of the taxpayer's income.

(2) Subsection (1) of this section is intended to apply only in unique and nonrecurring factual situations which would otherwise produce incongruous results under the normal apportionment formula.

(3) The Tax Commissioner may adopt and promulgate rules and regulations for appropriate procedures for the computation of the property, payroll, and sales factors of the apportionment formula for certain industries when necessary to retain uniformity with the taxation methods of other states or when the characteristics of the industry are such that the normal computation methods are not appropriate. Such industries shall include, but are not limited to, transportation, broadcast communications, and insurance.

(4) If the Tax Commissioner fails to mail a notice of final action on any petition under the provisions of this section within thirty days after the filing of such petition, the taxpayer may, prior to notice of action on the petition, consider the petition denied.

Source:Laws 1984, LB 1124, § 18;    Laws 1985, LB 273, § 59.    


77-2734.16. Income tax; unitary business; three-factor formula.

The fraction used in section 77-2734.05 shall be computed in the following manner for taxable years beginning or deemed to begin on or after January 1 of the given year. The average of the property, payroll, and sales factors, which shall be known as the three-factor formula, shall be computed for each year and then combined with the sales factor only using the following percentages:

(1) For 1987, the weight of the three-factor formula shall be one hundred percent;

(2) For 1988, the weight of the three-factor formula shall be eighty percent and the sales factor shall be twenty percent;

(3) For 1989, the weight of the three-factor formula shall be sixty percent and the sales factor shall be forty percent;

(4) For 1990, the weight of the three-factor formula shall be forty percent and the sales factor shall be sixty percent; and

(5) For 1991, the weight of the three-factor formula shall be twenty percent and the sales factor shall be eighty percent.

For 1992 and each year thereafter, the fraction used in section 77-2734.05 shall be the sales factor only.

Source:Laws 1987, LB 772, § 3.    


77-2734.17. Repealed. Laws 2000, LB 886, § 1.

77-2735. Repealed. Laws 1984, LB 1124, § 22.

77-2736. Repealed. Laws 1984, LB 1124, § 22.

77-2737. Repealed. Laws 1984, LB 1124, § 22.

77-2738. Repealed. Laws 1984, LB 1124, § 22.

77-2739. Repealed. Laws 1984, LB 1124, § 22.

77-2740. Repealed. Laws 1984, LB 1124, § 22.

77-2741. Repealed. Laws 1984, LB 1124, § 22.

77-2742. Repealed. Laws 1984, LB 1124, § 22.

77-2743. Repealed. Laws 1984, LB 1124, § 22.

77-2744. Repealed. Laws 1984, LB 1124, § 22.

77-2745. Repealed. Laws 1984, LB 1124, § 22.

77-2746. Repealed. Laws 1984, LB 1124, § 22.

77-2747. Repealed. Laws 1984, LB 1124, § 22.

77-2748. Repealed. Laws 1984, LB 1124, § 22.

77-2749. Repealed. Laws 1984, LB 1124, § 22.

77-2750. Repealed. Laws 1984, LB 1124, § 22.

77-2751. Repealed. Laws 1984, LB 1124, § 22.

77-2752. Repealed. Laws 1984, LB 1124, § 22.

77-2753. Income tax; withholding from wages and other payments.

(1)(a) Every employer and payor maintaining an office or transacting business within this state and making payment of any wages or other payments as defined in subsection (6) of this section which are taxable under the Nebraska Revenue Act of 1967 to any individual shall deduct and withhold from such wages for each payroll period and from such payments a tax computed in such manner as to result, so far as practicable, in withholding from the employee's wages and payments to the payee during each calendar year an amount substantially equivalent to the tax reasonably estimated to be due from the employee or payee under such act with respect to the amount of such wages and payments included in his or her taxable income during the calendar year. The method of determining the amount to be withheld shall be prescribed by rules and regulations of the Tax Commissioner. Such rules and regulations may allow withholding to be computed at a percentage of the federal withholding or at a comparable flat percentage for gambling winnings or supplemental payments, including bonuses, commissions, overtime pay, and sales awards which are not paid at the same time as other wages, or payments to independent contractors. Any withholding tables prescribed by the Tax Commissioner shall be provided to the budget division of the Department of Administrative Services and the Legislative Fiscal Analyst for review at least sixty days before the tables become effective.

(b) Notwithstanding the amount of federal withholding or the rules and regulations of the Department of Revenue determining the amount of withholding, every employer and payor employing twenty-five or more employees shall withhold at least one and one-half percent of the gross wages minus tax qualified deductions of each employee unless the employee provides satisfactory evidence that a lesser amount of withholding is justified in the employee's particular circumstances. Such satisfactory evidence may include birth certificates or social security information for dependents or other evidence that reasonably assures the employer that the employee is not improperly or fraudulently evading or defeating the income tax by reducing or eliminating withholding.

(2)(a) Every payor who is either (i) making a payment or payments in excess of five thousand dollars or (ii) maintaining an office or transacting business within this state and making a payment or payments related to such business in excess of six hundred dollars, and such payment or payments are for personal services performed or to be performed substantially within this state, to a nonresident individual, other than an employee, who is not subject to withholding on such payment under the Internal Revenue Code or a corporation, partnership, or limited liability company described in subdivision (c) of this subsection, shall be deemed an employer, and the individual performing the personal services shall be deemed an employee for the purposes of this section. The payor shall deduct and withhold from such payments the percentage of such payments prescribed in subdivision (b) of this subsection. If the individual performing the personal services provides the payor with a statement of the expenses reasonably related to the personal services, the total payment or payments may be reduced by the total expenses before computing the amount to deduct and withhold, except that such reduction shall not be more than fifty percent of such payment or payments.

(b) For any payment or payments for the same service, award, or purse that totals less than twenty-eight thousand dollars, the percentage deducted from such payment or payments pursuant to this subsection shall be four percent, and for all other payments, the percentage shall be six percent.

(c) For any corporation, partnership, or limited liability company that receives compensation for personal services in this state and of which all or substantially all of the shareholders, partners, or members are the individuals performing the personal services, including, but not limited to, individual athletes, entertainers, performers, or public speakers performing such personal services, such compensation shall be deemed wages of the individuals performing the personal services and subject to the income tax imposed on individuals by the Nebraska Revenue Act of 1967.

(d) The withholding required by this subsection shall not apply to any payment to a nonresident alien, corporation, partnership, or limited liability company if such individual, shareholder, partner, or member provides the payor with a statement that the income earned is not subject to tax because of a treaty obligation of the United States or if such payment is subject to withholding under subsection (3) of this section.

(3)(a) Every contractor who is maintaining an office or transacting business within this state and making a payment or payments to any contractor or any person that is not an employee for construction services performed within this state shall deduct and withhold five percent of such payments.

(b) The withholding required by this subsection shall not apply to any payment made to (i) a person that provides the payor with a statement that the income earned is not subject to tax because of a treaty obligation of the United States, (ii) a contractor if such a payment or payments does not exceed six hundred dollars, or (iii) a contractor when the payor contractor determines that the payee contractor is in the database required by section 48-2117.

(c) Any contractor who determines that a contractor is in the database is relieved from liability for withholding under this subsection for any future payments on a contract in existence at the time the determination is made or made during the same calendar year as such determination is made.

(d) Withholding required by this subsection shall be considered to be withholding of income tax for purposes of the Nebraska Revenue Act of 1967.

(e) For purposes of this subsection:

(i) Construction services means services that are provided as a contractor; and

(ii) Contractor has the same meaning as in section 48-2103.

(4) The Tax Commissioner may enter into agreements with the tax departments of other states, which require income tax to be withheld from the payment of wages, salaries, and such other payments, so as to govern the amounts to be withheld from the wages and salaries of and other payments to residents of such states. Such agreements may provide for recognition of anticipated tax credits in determining the amounts to be withheld and, under rules and regulations adopted and promulgated by the Tax Commissioner, may relieve employers and payors in this state from withholding income tax on wages, salaries, and such other payments paid to nonresident employees and payees. The agreements authorized by this subsection shall be subject to the condition that the tax department of such other states grant similar treatment to residents of this state.

(5) The Tax Commissioner shall enter into an agreement with the United States Office of Personnel Management for the withholding of income tax imposed on individuals by the Nebraska Revenue Act of 1967 on civil service annuity payments for those recipients who voluntarily request withholding. The agreement shall be pursuant to 5 U.S.C. 8345 and the rules and regulations adopted and promulgated by the Tax Commissioner.

(6) Wages and other payments subject to withholding shall mean payments that are subject to withholding under the Internal Revenue Code of 1986 and are (a) payments made by employers to employees, except such payments subject to 26 U.S.C. 3406, (b) payments of gambling winnings, (c) pension or annuity payments when the recipient has requested the payor to withhold from such payments, or (d) payments to independent contractors.

Source:Laws 1967, c. 487, § 53, p. 1594; Laws 1977, LB 355, § 1;    Laws 1984, LB 962, § 18;    Laws 1986, LB 1027, § 208;    Laws 1987, LB 284, § 1;    Laws 1987, LB 773, § 21;    Laws 1987, LB 523, § 24;    Laws 1988, LB 1064, § 1;    Laws 1990, LB 896, § 1;    Laws 1993, LB 121, § 509;    Laws 1993, LB 345, § 61;    Laws 1994, LB 1175, § 2;    Laws 2005, LB 216, § 13;    Laws 2007, LB223, § 12;    Laws 2008, LB1001, § 9;    Laws 2008, LB1004, § 1;    Laws 2009, LB162, § 9.    


77-2754. Income tax; withholdings; written statement required.

Every employer or payor, making payment of wages or other payments subject to withholding, shall furnish to each employee or payee in respect to the wages or payments paid by such employer or payor to such employee or payee during the calendar year on or before February 15 of the succeeding year, or, if his or her employment is terminated before the close of such calendar year, within thirty days from the date on which the last payment of wages is made, a written statement as prescribed by the Tax Commissioner showing the amount of wages or payments paid by the employer or payor to the employee or payee, the amount deducted and withheld as tax, and such other information as the Tax Commissioner shall prescribe. Such statement shall be compatible as to form and content with the statement required by the laws of the United States.

Source:Laws 1967, c. 487, § 54, p. 1595; Laws 1984, LB 962, § 19.    


77-2755. Income tax; withholdings; deemed paid to Tax Commissioner.

Wages and payments upon which income tax is required to be withheld shall be taxable under the provisions of the Nebraska Revenue Act of 1967 as if no withholding were required, but any amount of income tax actually deducted and withheld under the provisions of such act in any calendar year shall be deemed to have been paid to the Tax Commissioner on behalf of the person from whom withheld, and such person shall be credited with having paid that amount of income tax for the taxable year beginning in such calendar year. For a taxable year of less than twelve months, the credit shall be made under regulations of the Tax Commissioner.

Source:Laws 1967, c. 487, § 55, p. 1595; Laws 1984, LB 962, § 20.    


77-2756. Income tax; employer or payor; withholding for tax.

(1) Except as provided in subsection (2) of this section, every employer or payor required to deduct and withhold income tax under the Nebraska Revenue Act of 1967 shall, for each calendar quarter, on or before the last day of the month following the close of such calendar quarter, file a withholding return as prescribed by the Tax Commissioner and pay over to the Tax Commissioner or to a depositary designated by the Tax Commissioner the taxes so required to be deducted and withheld in such form and content as the Tax Commissioner may prescribe and containing such information as the Tax Commissioner deems necessary for the proper administration of the Nebraska Revenue Act of 1967. When the aggregate amount required to be deducted and withheld by any employer or payor for either the first or second month of a calendar quarter exceeds five hundred dollars, the employer or payor shall, by the fifteenth day of the succeeding month, pay over such aggregate amount to the Tax Commissioner or to a depositary designated by the Tax Commissioner. The amount so paid shall be allowed as a credit against the liability shown on the employer's or payor's quarterly withholding return required by this section. The Tax Commissioner may, by rule and regulation, provide for the filing of returns and the payment of the tax deducted and withheld on other than a quarterly basis.

(2) When the aggregate amount required to be deducted and withheld by any employer or payor for the entire calendar year is less than five hundred dollars or the employer or payor is allowed to file federal withholding returns annually, the employer or payor shall, for each calendar year, on or before the last day of the month following the close of such calendar year, file a withholding return as prescribed by the Tax Commissioner and pay over to the Tax Commissioner or to a depositary designated by the Tax Commissioner the taxes so required to be deducted and withheld in such form and content as the Tax Commissioner may prescribe and containing such information as the Tax Commissioner deems necessary for the proper administration of the Nebraska Revenue Act of 1967. The employer or payor may elect or the Tax Commissioner may require the filing of returns and the payment of taxes on a quarterly basis.

(3) Whenever any employer or payor fails to collect, truthfully account for, pay over, or make returns of the income tax as required by this section, the Tax Commissioner may serve a notice requiring such employer or payor to collect the taxes which become collectible after service of such notice, to deposit such taxes in a bank approved by the Tax Commissioner in a separate account in trust for and payable to the Tax Commissioner, and to keep the amount of such tax in such account until paid over to the Tax Commissioner. Such notice shall remain in effect until a notice of cancellation is served by the Tax Commissioner.

(4) Any employer or payor may appoint an agent in accordance with section 3504 of the Internal Revenue Code of 1986, as amended, for the purpose of withholding, reporting, or making payment of amounts withheld on behalf of the employer or payor. The agent shall be considered an employer or payor for purposes of the Nebraska Revenue Act of 1967 and, with the actual employer or payor, shall be jointly and severally liable for any amount required to be withheld and paid over to the Tax Commissioner and any additions to tax, penalties, and interest with respect thereto.

(5) The employer or payor shall also file on or before January 31 of the succeeding year a copy of each statement furnished by such employer or payor to each employee or payee with respect to taxes withheld on wages or payments subject to withholding. Any employer, payor, or agent who furnished more than fifty statements for a year shall file the required copies electronically in a manner approved by the Tax Commissioner that is compatible with federal electronic filing requirements or methods.

Source:Laws 1967, c. 487, § 56, p. 1596; Laws 1984, LB 962, § 21;    Laws 1988, LB 1064, § 2;    Laws 1997, LB 62, § 2;    Laws 2005, LB 216, § 14;    Laws 2007, LB223, § 13;    Laws 2010, LB879, § 11;    Laws 2017, LB217, § 16.    


77-2757. Income tax; employer or payor required to deduct; trust fund.

Every employer or payor required to deduct and withhold income tax under the provisions of the Nebraska Revenue Act of 1967 is hereby made liable for such tax. For purposes of assessment and collection, any amount required to be withheld and paid over to the Tax Commissioner, and any additions to tax, penalties, and interest with respect thereto, shall be considered the tax of the employer or payor. Any amount of tax actually deducted and withheld shall constitute a trust fund in the hands of the employer or payor and shall be owned by the state. No employee or payee shall have any right of action against his or her employer or payor in respect to any money deducted and withheld from his or her wages or other payments and paid over to the Tax Commissioner in compliance or in intended compliance with the provisions of such act.

Source:Laws 1967, c. 487, § 57, p. 1596; Laws 1969, c. 691, § 1, p. 2684; Laws 1984, LB 962, § 22.    


77-2758. Income tax; employer or payor; failure to deduct; effect.

If an employer or payor fails to deduct and withhold income tax as required, and thereafter the tax against which such income tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from the employer or payor, but the employer or payor shall not be relieved from liability for any additions to tax, penalties, or interest otherwise applicable in respect to such failure to deduct and withhold.

Source:Laws 1967, c. 487, § 58, p. 1597; Laws 1984, LB 962, § 23.    


77-2759. Income tax; taxable year.

(1) For purposes of the income tax imposed by the provisions of the Nebraska Revenue Act of 1967, a taxpayer's taxable year shall be the same as his taxable year for federal income tax purposes.

(2) If a taxpayer's taxable year is changed for federal income tax purposes, his taxable year for purposes of the income tax imposed by the provisions of the Nebraska Revenue Act of 1967 shall be similarly changed in accordance with regulations prescribed by the Tax Commissioner.

(3) Notwithstanding the provisions of subsections (1) and (2) of this section, if the Tax Commissioner terminates the taxpayer's taxable year under the provisions of section 77-27,111, relating to tax in jeopardy, the income tax shall be computed for the period determined by such action in accordance with regulations prescribed by the Tax Commissioner.

Source:Laws 1967, c. 487, § 59, p. 1597.


77-2760. Income tax; accounting method.

(1) For purposes of the income tax imposed by the provisions of the Nebraska Revenue Act of 1967, a taxpayer's method of accounting shall be the same as his method of accounting for federal income tax purposes.

(2) If a taxpayer's method of accounting is changed for federal income tax purposes, his method of accounting for purposes of the income tax provisions of the Nebraska Revenue Act of 1967 shall similarly be changed.

Source:Laws 1967, c. 487, § 60, p. 1597.


77-2761. Income tax; return; required by whom.

An income tax return with respect to the income tax imposed by the provisions of the Nebraska Revenue Act of 1967 shall be made by the following:

(1) Every resident individual who is required to file a federal income tax return for the taxable year;

(2) Every nonresident individual who has income from Nebraska sources;

(3) Every resident estate or trust which is required to file a federal income tax return except a simple trust not required to file under subsection (2) of section 77-2717;

(4) Every nonresident estate or trust which has taxable income from Nebraska sources;

(5) Every corporation or any other entity taxed as a corporation under the Internal Revenue Code which is required to file a federal income tax return except the small business corporations not required to file under subsection (7) of section 77-2734.01;

(6) Every limited liability company having income derived from Nebraska sources; and

(7) Every partnership having income derived from Nebraska sources.

Source:Laws 1967, c. 487, § 61, p. 1598; Laws 1987, LB 523, § 25;    Laws 1993, LB 121, § 510;    Laws 2009, LB165, § 13;    Laws 2019, LB512, § 22.    


77-2762. Repealed. Laws 1987, LB 773, § 30.

77-2763. Income tax; taxpayer; deceased; return.

(1) An income tax return for any deceased individual shall be made and filed by his executor, administrator, or other person charged with the care of his property. A joint or separate final return of a decedent shall be due when it would have been due if the decedent had not died.

(2) An income tax return for an individual who is unable to make a return by reason of minority or other disability shall be made and filed by his duly authorized agent, guardian, conservator, fiduciary, or other person charged with the care of his person or property other than a receiver in possession of only a part of the individual's property.

(3) The income tax return of an estate or trust shall be made and filed by the fiduciary thereof.

(4) If two or more fiduciaries are acting jointly, the return may be made by any one of them.

Source:Laws 1967, c. 487, § 63, p. 1599.


77-2764. Income tax; fiduciary; notice of qualification.

Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary, shall give notice of his qualification as such to the Tax Commissioner, as may be required by regulation.

Source:Laws 1967, c. 487, § 64, p. 1599.


77-2765. Partial-year resident individual; filing requirements.

If an individual is a partial-year resident individual, the Tax Commissioner may by rule and regulation require him or her to file one return as a partial-year resident individual or to file one return for the portion of the year during which he or she is a resident and one for the portion of the year during which he or she is a nonresident.

Source:Laws 1967, c. 487, § 65, p. 1599; Laws 1987, LB 773, § 22.    


77-2766. Repealed. Laws 1987, LB 773, § 30.

77-2767. Income tax; two returns required; when; total taxes due.

Where two returns are required to be filed as provided in section 77-2765:

(1) Personal exemptions and deductions shall be prorated between the two returns, under regulations prescribed by the Tax Commissioner, to reflect the proportions of the taxable year during which the individual was a resident and a nonresident; and

(2) The total of the taxes due thereon shall not be less than would be due if the total of the taxable incomes reported on the two returns were includable in one return.

Source:Laws 1967, c. 487, § 67, p. 1600.


77-2768. Income tax; return; filing; when.

The income tax return required by the provisions of the Nebraska Revenue Act of 1967 shall be filed on or before the dates prescribed by the laws of the United States for filing federal income tax returns. A person required to make and file an income tax return shall, without assessment, notice, or demand, pay any tax due thereon to the Tax Commissioner on or before the date fixed for filing such return, except that a tax amount due which is less than two dollars need not be remitted. The Tax Commissioner shall prescribe by regulation the place for filing any return, declaration, statement, or other document required pursuant hereto and for the payment of any tax.

Source:Laws 1967, c. 487, § 68, p. 1600; Laws 1969, c. 692, § 1, p. 2685; Laws 1987, LB 523, § 26;    Laws 1991, LB 773, § 17.


77-2769. Income tax; estimated tax; payment; date.

(1) Every resident and nonresident individual, corporation, and other entity taxed as a corporation under the Internal Revenue Code shall pay the estimated tax for the taxable year, in such form as the Tax Commissioner may prescribe, except that (a) no payment of estimated tax is required by an individual if the estimated tax can reasonably be expected to be less than five hundred dollars and (b) no payment of estimated tax is required by a corporation or other entity taxed as a corporation under the Internal Revenue Code if the estimated tax can reasonably be expected to be less than four hundred dollars.

(2)(a) Estimated tax for an individual shall mean the amount which the individual estimates to be his or her income tax under sections 77-2714 to 77-27,135 for the taxable year less the amount which he or she estimates to be the sum of any credits allowable.

(b) Estimated tax for a corporation or other entity taxed as a corporation under the Internal Revenue Code shall mean the amount which the corporation or business estimates to be its income tax under sections 77-2714 to 77-27,135 for the taxable year less the amount which is estimated to be the sum of any credits allowable.

(3) If they are eligible to do so for federal tax purposes, a husband and wife may make a joint payment of estimated tax as if they were one taxpayer, in which case the liability with respect to the estimated tax shall be joint and several. If a joint payment is made but husband and wife elect to determine their taxes separately, the estimated tax for such year may be treated as the estimated tax of either husband or wife, or may be divided between them, as they may elect.

(4) The payment of estimated tax for an individual under a disability shall be made and filed in the manner provided in subsection (2) of section 77-2763 for an income tax return.

(5) The payment of estimated tax shall be paid on or before the dates prescribed by the laws of the United States for payment of estimated federal income tax, except that the Tax Commissioner, by rule and regulation, may establish other dates for payment of estimated tax.

(6) The application of this section to taxable years of less than twelve months shall be in accordance with regulations prescribed by the Tax Commissioner.

(7) Payment of the estimated income tax or any installment thereof shall be considered payment on account of the income tax imposed under sections 77-2714 to 77-27,135 for the taxable year.

Source:Laws 1967, c. 487, § 69, p. 1600; Laws 1973, LB 526, § 5;    Laws 1983, LB 363, § 4;    Laws 1984, LB 962, § 24;    Laws 1985, LB 344, § 5;    Laws 1985, LB 273, § 60;    Laws 2008, LB915, § 4.    


77-2769.01. Income tax; corporation; overpayment of estimated tax; adjustment; procedure.

(1) A corporation may, after the close of the taxable year and on or before the fifteenth day of the third month thereafter and before the day on which it files a return for such taxable year, file an application for an adjustment of an overpayment by it of estimated income tax for such taxable year. An application under this section shall not constitute a claim for credit or refund. The application shall be filed in such manner and form as the Tax Commissioner may prescribe by rules, regulations, and instructions. The application shall set forth: (a) The estimated income tax paid by the corporation during the taxable year; (b) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year; (c) the amount of the requested adjustment; and (d) such other information for purposes of carrying out this section as may be required by rules and regulations.

(2) Within forty-five days from the date on which an application for adjustment is filed, the Tax Commissioner shall make, to the extent he or she deems practicable in such period, a limited examination of the application to discover omissions and errors. The Tax Commissioner shall determine the amount of the adjustment upon the basis of the application and the examination. The Tax Commissioner may disallow, without further action, any application which he or she finds to contain material omissions or errors which he or she deems cannot be corrected within such forty-five days. The decision made by the Tax Commissioner shall be final and not subject to further review.

(3) Upon approval of the application, the Tax Commissioner, within the forty-five-day period, may credit the amount of the adjustment against any existing tax liability on the part of the corporation and shall refund the remainder to the corporation. No application under this section shall be allowed unless the amount of the adjustment equals or exceeds (a) ten percent of the amount estimated by the corporation on its application as its income tax liability for the taxable year and (b) five hundred dollars.

(4) Any adjustment under this section shall be treated as a reduction in the estimated income tax paid, computed on the day the credit is allowed or the refund is paid. Any credit or refund of an adjustment shall be treated as if not made when determining (a) whether there has been any underpayment of estimated income tax under section 77-2790 and (b) if there is an underpayment, the period during which the underpayment existed.

(5) For purposes of this section, income tax liability shall mean the excess of the income tax imposed by sections 77-2714 to 77-27,135 reduced by the credits against the tax provided by state law. The amount of an adjustment authorized under this section shall be equal to the excess of the estimated income tax paid by the corporation during the taxable year reduced by the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year. A corporation seeking an adjustment under this section, which paid its estimated income tax on a consolidated basis or expects to make a consolidated return for the taxable year, shall be subject to such conditions, limitations, and exceptions as the Tax Commissioner may prescribe by rules, regulations, and instructions.

(6) An excessive adjustment shall be equal to the smaller of the amount of the adjustment or the amount by which the income tax liability for the taxable year as shown on the return for the taxable year exceeds the estimated income tax paid during the taxable year, reduced by the amount of the adjustment. The amount of any excessive adjustment made before the fifteenth day of the third month following the close of the taxable year shall bear interest from the date on which the adjustment was allowed to such fifteenth day at the rate specified in section 45-104.02, as such rate may from time to time be adjusted.

Source:Laws 1984, LB 962, § 25;    Laws 1985, LB 344, § 6;    Laws 1992, Fourth Spec. Sess., LB 1, § 35.    


77-2769.02. Repealed. Laws 2010, LB 879, § 29.

77-2769.03. Repealed. Laws 2000, LB 886, § 1.

77-2770. Income tax; filing or payment; extension of time; bond; when.

(1)(a) The Tax Commissioner may grant a reasonable extension of time for filing any return, statement, or other document, or for payment of income tax or estimated tax or any installment thereof, on such terms and conditions as he or she may require. Except in the case of a taxpayer who is abroad, no such extension or extensions shall exceed a total of seven months.

(b) An extension of time granted for filing of a return, other than to a corporate taxpayer, shall for the purpose of this subsection extend the time for payment of any tax which may be due. An extension of time for filing any return granted by the Internal Revenue Service shall operate as an extension under this section.

(2) An extension for the filing of the return of corporate income taxes imposed by section 77-2734.02 shall be allowed any corporation or other entity taxed as a corporation if, in such manner and at such time as the Tax Commissioner may by regulation prescribe, there is filed on behalf of such corporation the form prescribed by the Tax Commissioner and if such corporation pays, on or before the date prescribed for payment of the tax determined without regard to any extension of time for filing such return, the amount properly estimated as its tax; but this extension may be terminated at any time by the Tax Commissioner by mailing to the taxpayer notice of such termination at least ten days prior to the date for termination fixed in such notice. No extension of time for filing any corporate return shall be considered an extension of time for payment of corporate income tax unless such request is specifically filed with and granted by the Tax Commissioner.

The Tax Commissioner may grant reasonable additional extensions of time to file any corporate income tax return on such terms and conditions as he or she may require.

(3) If any extension of time is granted for payment of any amount of tax, the Tax Commissioner may require the taxpayer to furnish a bond or other security in an amount not exceeding twice the amount of the tax for which the extension of time for payment is granted, on such terms and conditions as the Tax Commissioner may require.

Source:Laws 1967, c. 487, § 70, p. 1602; Laws 1969, c. 692, § 2, p. 2686; Laws 1984, LB 962, § 26;    Laws 1985, LB 344, § 7;    Laws 1995, LB 134, § 5.    


77-2770.01. Income tax; return; extension; provisions effective after January 1, 1969.

The provisions of sections 77-2768 and 77-2770 shall become operative for all taxable years commencing on and after January 1, 1969.

Source:Laws 1969, c. 692, § 3, p. 2687.


77-2771. Income tax; return, declaration, statement, signature; effect.

(1) Any return, declaration, statement or other document required to be made pursuant to the income tax provisions of the Nebraska Revenue Act of 1967 shall be signed in accordance with regulations or instructions prescribed by the Tax Commissioner. The fact that an individual's name is signed to a return, declaration, statement or other document, shall be prima facie evidence for all purposes that the return, declaration, statement or other document was actually signed by him, and that said individual was authorized to sign the return, declaration, statement or other document.

(2) The making or filing of any return, declaration, statement, or other document or copy of a federal return, shall constitute a certification by the person making or filing such return, declaration, statement or other document or copy thereof that the statements contained therein are true and that any copy filed is a true copy.

Source:Laws 1967, c. 487, § 71, p. 1602.


77-2772. Income tax; Tax Commissioner; records, form of returns.

The Tax Commissioner may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income returns, or portions thereof as filed with the Internal Revenue Service, and determinations, except that such requirements may be waived if such information can be received from another state or federal agency. The Tax Commissioner may require by regulation or notice the making of such returns, rendering of such statements, or keeping of such records as the Tax Commissioner may deem sufficient to show whether or not there is liability for tax or for the collection of tax.

Source:Laws 1967, c. 487, § 72, p. 1603; Laws 1985, LB 273, § 61;    Laws 1987, LB 523, § 27.    


77-2773. Income tax; partnership; taxable year; return.

Every partnership having part of its income derived from Nebraska sources, determined in accordance with the applicable rules of section 77-2733 as in the case of a nonresident individual, shall make a return for the taxable year setting forth such pertinent information as the Tax Commissioner by rule and regulation may prescribe. Such information may include, but shall not be limited to, all items of income, gain, loss, and deduction, the names and addresses of the individuals whether residents or nonresidents who would be entitled to share in the net income if distributed, and the amount of the distributive share of each individual. Such return shall be filed on or before the date prescribed for filing a federal partnership return. For purposes of this section, taxable year shall mean a year or period which would be a taxable year of the partnership if it were subject to tax under the provisions of the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 73, p. 1603; Laws 1987, LB 523, § 28;    Laws 2019, LB512, § 23.    


77-2774. Income tax; Tax Commissioner; rules and regulations.

The Tax Commissioner may prescribe regulations and instructions requiring returns of information to be made and filed not inconsistent with the information returns required by the laws of the United States.

Source:Laws 1967, c. 487, § 74, p. 1603.


77-2775. Federal income tax return; modified or amended; change in tax liability owed to this state; taxpayer; duties; partnership; election; effect.

(1) If the amount of a taxpayer's federal adjusted gross income, taxable income, or tax liability reported on his or her federal income tax return for any taxable year is changed or corrected by the Internal Revenue Service or other competent authority or as the result of a renegotiation of a contract or subcontract with the United States, the taxpayer shall report such change or correction in federal adjusted gross income, taxable income, or tax liability within sixty days after the final determination of such change, correction, or renegotiation.

(2) Whenever the amount of a taxpayer's income which is taxable in any state for any taxable year or any tax credits allowable in such state are changed or corrected in a way material to the tax liability owed to this state by the agency having authority to examine returns filed with such state or any other competent authority or whenever an amended return is filed by any taxpayer with a change or correction material to the tax liability owed to this state with another state, such change or correction shall be reported to the Tax Commissioner within sixty days after the final change or correction or filing of the amended return. The Tax Commissioner shall by rule and regulation provide the nature of any change or correction which must be reported.

(3) The taxpayer shall report all changes or corrections required to be reported under this section by filing an amended income tax return and shall give such information as the Tax Commissioner may require. The taxpayer shall concede the accuracy of any change or correction or state why it is erroneous.

(4) Any taxpayer filing an amended federal income tax return shall also file within sixty days thereafter an amended income tax return under the Nebraska Revenue Act of 1967 and shall give such information as the Tax Commissioner may require. For any amended federal income tax return requesting a credit or refund, the amended Nebraska income tax return shall be filed within sixty days after the taxpayer has received proof of federal acceptance of the credit or refund or within the time for filing an amended Nebraska income tax return that would otherwise be applicable notwithstanding the amended federal income tax return, whichever is later.

(5) Notwithstanding the foregoing, any partnership that is required to file an amended return pursuant to this section shall be allowed, at the partnership's election, to file an amended Nebraska income tax return and to pay all Nebraska income tax, penalties, or interest associated with such amended return, determined after taking into consideration offsetting positive and negative adjustments of partnership items, at the top individual tax rate set forth in section 77-2715.03 as if the partnership were an individual. For a partnership making an election pursuant to this subsection and paying the tax, penalties, or interest arising from the amended return, (a) the partners of such electing partnership shall not be required to file amended Nebraska income tax returns for the year of the election and shall not be required to pay Nebraska income tax, penalties, or interest arising as a result of such amended return and (b) the basis, and other tax items in the hands of the partner, arising from the partner's interest in the partnership shall be determined as if the election under this subsection had not been made and shall be determined in a similar manner as set forth for federal income tax purposes.

Source:Laws 1967, c. 487, § 75, p. 1603; Laws 1987, LB 773, § 23;    Laws 1993, LB 345, § 62;    Laws 1997, LB 62, § 3;    Laws 2005, LB 216, § 15;    Laws 2008, LB914, § 9;    Laws 2023, LB754, § 16.    
Effective Date: June 1, 2023


77-2776. Income tax; Tax Commissioner; return; examination; failure to file; notice; deficiency; notice.

(1) As soon as practical after an income tax return is filed, the Tax Commissioner shall examine it to determine the correct amount of tax. If the Tax Commissioner finds that the amount of tax shown on the return is less than the correct amount, he or she shall notify the taxpayer of the amount of the deficiency proposed to be assessed. If the Tax Commissioner finds that the tax paid is more than the correct amount, he or she shall credit the overpayment against any taxes due by the taxpayer and refund the difference. The Tax Commissioner shall, upon request, make prompt assessment of taxes due as provided by the laws of the United States for federal income tax purposes.

(2) If the taxpayer fails to file an income tax return, the Tax Commissioner shall estimate the taxpayer's tax liability from any available information and notify the taxpayer of the amount proposed to be assessed as in the case of a deficiency.

(3) A notice of deficiency shall set forth the reason for the proposed assessment or for the change in the amount of credit or loss to be carried over to another year. The notice may be mailed to the taxpayer at his or her last-known address. In the case of a joint return, the notice of deficiency may be a single joint notice, except that if the Tax Commissioner is notified by either spouse that separate residences have been established, the Tax Commissioner shall mail joint notices to each spouse. If the taxpayer is deceased or under a legal disability, a notice of deficiency may be mailed to his or her last-known address unless the Tax Commissioner has received notice of the existence of a fiduciary relationship with respect to such taxpayer.

(4) A notice of deficiency regarding an item of entity income may be mailed to the entity at its last-known address or to the address of the entity's tax matters person for federal income tax purposes. Such notice shall be deemed to have been received by each partner, shareholder, or member of such entity, but only for items of entity income reported by the partner, shareholder, or member. The actions taken thereon on behalf of the partnership, limited liability company, small business corporation, estate, or trust are binding on the partners, members, shareholders, or beneficiaries.

Source:Laws 1967, c. 487, § 76, p. 1604; Laws 2005, LB 216, § 16;    Laws 2012, LB727, § 41;    Laws 2019, LB512, § 24.    


77-2777. Income tax; deficiency; notice.

Sixty days after the date on which it was mailed, or one hundred fifty days if the taxpayer is outside the United States, a notice of proposed assessment of a deficiency shall constitute a final assessment of the amount of tax specified together with interest, additions to tax, and penalties except only for such amounts as to which the taxpayer has filed a protest with the Tax Commissioner.

Source:Laws 1967, c. 487, § 77, p. 1605; Laws 1993, LB 345, § 63;    Laws 1994, LB 977, § 16;    Laws 2008, LB914, § 10.    


77-2778. Income tax; deficiency; written protest; time.

Within sixty days after the mailing of a deficiency notice, or one hundred fifty days if the taxpayer is outside the United States, the taxpayer or any person directly interested may file with the Tax Commissioner a written protest against the proposed assessment in which he or she shall set forth the grounds on which the protest is based. If a protest is filed, the Tax Commissioner shall reconsider the assessment of the deficiency and, if the taxpayer has so requested, shall grant the taxpayer or his or her authorized representative an oral hearing. For purposes of this section, a person shall be directly interested in a deficiency determination when such deficiency could be collected from such person.

Source:Laws 1967, c. 487, § 78, p. 1605; Laws 1993, LB 345, § 64;    Laws 1994, LB 977, § 17;    Laws 2008, LB914, § 11.    


77-2779. Income tax; notice of Tax Commissioner's determination; mailing; contents.

Notice of the Tax Commissioner's determination shall be mailed to the taxpayer and such notice shall set forth briefly the Tax Commissioner's findings of fact and the basis of decision in each case decided in whole or in part adversely to the taxpayer.

Source:Laws 1967, c. 487, § 79, p. 1605; Laws 2012, LB727, § 42.    


77-2780. Income tax; Tax Commissioner; action on taxpayer's protest; when final.

The action of the Tax Commissioner on the taxpayer's protest shall be final upon the expiration of thirty days after the date when the Tax Commissioner mails notice of his or her action to the taxpayer unless within this period the taxpayer seeks review of the Tax Commissioner's determination as provided in the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 80, p. 1605; Laws 1993, LB 345, § 65;    Laws 1994, LB 977, § 18;    Laws 2008, LB914, § 12;    Laws 2009, LB165, § 14.    


77-2781. Tax Commissioner; proceedings; burden of proof; exceptions.

In any proceeding before the Tax Commissioner, the burden of proof shall be on the taxpayer except for the following issues, as to which the burden of proof shall be on the Tax Commissioner:

(1) Whether the taxpayer has been guilty of fraud with attempt to evade tax;

(2) Whether the petitioner is liable as the transferee of property of a taxpayer, but not to show that the taxpayer was liable for the tax;

(3) Whether the taxpayer is liable for any increase in a deficiency determination when such increase is asserted initially after the notice of deficiency determination was mailed and a protest petition under section 77-2778 filed, unless such increase in deficiency is the result of a change or correction of federal adjusted gross income, taxable income, or tax liability required to be reported under section 77-2775 and of which change or correction the Tax Commissioner had no notice at the time he or she mailed the notice of deficiency determination; or

(4) Whether the taxpayer or petitioner is liable for any penalty imposed under subsection (7) or (8) of section 77-2790.

Source:Laws 1967, c. 487, § 81, p. 1605; Laws 1985, LB 273, § 62;    Laws 1987, LB 773, § 24.    


Annotations

77-2782. Income tax; evidence; federal determination; admissible.

Evidence of a federal determination relating to issues raised in a proceeding under the provisions of section 77-2778 shall be admissible, under rules established by the Tax Commissioner.

Source:Laws 1967, c. 487, § 82, p. 1606.


77-2783. Income tax; additional tax; notice; no appeal or protest; when.

In the event that the amount of tax is understated on the taxpayer's return as a result of a mathematical or clerical error, the Tax Commissioner shall notify the taxpayer that an amount of tax in excess of that shown on the return is due and has been assessed and the reasons therefor. Such a notice of additional tax due shall not be considered a notice of deficiency assessment nor shall the taxpayer have any right of protest or appeal as in the case of a deficiency assessment based on such notice, and the assessment and collection of the amount of tax erroneously omitted in the return is not prohibited. For purposes of this section, mathematical or clerical error includes information on the taxpayer's return that is different from information reported to the Internal Revenue Service or the Tax Commissioner, including, but not limited to, information reported on Form W-2 and Form 1099.

Source:Laws 1967, c. 487, § 83, p. 1606; Laws 2017, LB217, § 17.    


77-2784. Income tax; deficiency; waive restrictions.

The taxpayer at any time, whether or not a notice of deficiency has been issued, shall have the right to waive the restrictions on assessment and collection of the whole or any part of the deficiency by a signed notice in writing filed with the Tax Commissioner.

Source:Laws 1967, c. 487, § 84, p. 1606.


77-2785. Income tax; assessment; deficiency; date.

(1) The amount of income tax which is shown to be due on an income tax return, including revisions for mathematical or clerical errors, shall be deemed to be assessed on the date of filing of the return including any amended returns showing an increase of tax. In the case of a return properly filed without the computation of the tax, the tax computed by the Tax Commissioner shall be deemed to be assessed on the date when payment is due. If a notice of deficiency has been mailed, the amount of the deficiency shall be deemed to be assessed on the date provided in section 77-2777 if no protest is filed or, if a protest is filed, then upon the date when the determination of the Tax Commissioner becomes final. If an amended return or report filed pursuant to the provisions of section 77-2775 concedes the accuracy of a federal change or correction or a state change or correction which has become final on or after May 1, 1993, any deficiency in the income tax under the Nebraska Revenue Act of 1967 resulting therefrom shall be deemed to be assessed on the date of filing such report or amended return and such assessment shall be timely notwithstanding any other provisions of such act. Any amount paid as a tax or in respect of a tax, other than amounts withheld at the source or paid as estimated income tax, shall be deemed to be assessed upon the date of receipt of payment notwithstanding any other provision of such act.

(2) If the mode or time for the assessment of income tax under the provisions of the Nebraska Revenue Act of 1967, including interest, additions to tax, and penalties, is not otherwise provided for, the Tax Commissioner may establish the same by regulation.

(3) The Tax Commissioner may, at any time within the period prescribed for assessment, make a supplemental assessment, subject to the provisions of section 77-2776 when applicable, whenever it is found that any assessment is imperfect or incomplete in any material aspect.

(4) If the Tax Commissioner believes that the assessment or collection of a deficiency will be jeopardized by delay, by the frivolous objections of any person to compliance with the Nebraska Revenue Act of 1967, or by the attempt of any person to impede the administration of such act, he or she shall, notwithstanding the provisions of section 77-2786, immediately assess such tax, including interest and additions to tax, and penalties as provided by law and give notice and demand for payment to such person. When an assessment is made under this subsection, collection proceedings may be stayed by application for review and the posting of such security as may be required by the Tax Commissioner under section 77-27,129.

Source:Laws 1967, c. 487, § 85, p. 1606; Laws 1984, LB 962, § 27;    Laws 1993, LB 345, § 66;    Laws 2017, LB217, § 18.    


77-2786. Deficiency determination; notice; limitation; extension of time periods.

(1) Except as otherwise provided in the Nebraska Revenue Act of 1967, a notice of a proposed deficiency determination shall be mailed to the taxpayer within three years after the return was filed. Except as otherwise provided in the Nebraska Revenue Act of 1967, no deficiency shall be assessed or collected with respect to the year for which the return was filed unless a notice of a proposed deficiency determination is mailed within three years after the return was filed or the period otherwise fixed.

(2) If the taxpayer omits from Nebraska taxable income an amount properly includable therein which is in excess of twenty-five percent of the amount of taxable income stated in the return or a corporate return omits a properly includable member of the unitary group as defined in section 77-2734.04, a notice of a deficiency determination may be mailed to the taxpayer within six years after the return was filed. A notice of deficiency determination based on the omission of a member of a unitary group shall be limited to the increase in the tax caused by including the omitted member. For purposes of this subsection, there shall not be taken into account any amount which is omitted in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Tax Commissioner of the nature and amount of such item and the manner in which such item would affect the computation of Nebraska taxable income.

(3) If no return is filed or a false and fraudulent return is filed with intent to evade the income tax imposed by the Nebraska Revenue Act of 1967, a notice of deficiency determination may be mailed to the taxpayer at any time.

(4) If a taxpayer fails to comply with the requirement of section 77-2775 by not reporting a change or correction increasing his or her federal adjusted gross income, taxable income, or tax liability or a change or correction which is treated in the same manner as if it were a deficiency determination for federal income tax purposes, or by not reporting a change or correction in income taxable in or tax credit allowable by any state to the extent required by the Tax Commissioner by regulation, or in not filing an amended return, a notice of deficiency determination based on a complete examination of the tax liability for the tax years involved may be mailed to the taxpayer at any time.

(5) If the taxpayer, pursuant to section 77-2775, reports a federal change or correction or a state change or correction, files an amended return increasing his or her federal adjusted gross income, taxable income, or tax liability, or reports a change or correction which is treated in the same manner as if it were a deficiency for federal income tax purposes, a notice of a deficiency determination based on a redetermination of Nebraska tax liability to reflect the change or correction may be mailed at any time within two years after such report or amended return was filed.

(6) When, before the expiration of the time prescribed in this section for the mailing of a notice of deficiency determination, both the Tax Commissioner and the taxpayer have consented in writing to the mailing after such time, the notice of deficiency determination may be mailed at any time prior to the expiration of the period agreed upon. The period so agreed may be extended by subsequent agreement in writing made before the expiration of the period previously agreed upon.

An agreement between the taxpayer and the Internal Revenue Service providing for the extension of the period for the mailing of a notice of deficiency determination of federal income taxes shall constitute an agreement with the Tax Commissioner to extend the period for assessment of income taxes under the Nebraska Revenue Act of 1967 through the ending date shown on the federal agreement. A copy of all such agreements and extensions thereof shall be filed with the Tax Commissioner within thirty days after their execution. If the copy of the extension agreement with the Internal Revenue Service is not filed pursuant to this subsection, the notice of deficiency determination for such taxable year may be mailed at any time within one year of the discovery of the extension by the Tax Commissioner.

(7) For purposes of this section, an income tax return filed before the last day prescribed by the Nebraska Revenue Act of 1967 for the filing thereof, determined without regard to any extension of time to file the return, shall be deemed to be filed on such last day. If a return or withholding tax for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return shall be deemed to be filed on April 15 of such succeeding calendar year.

(8) When it becomes necessary for the Tax Commissioner to apply for a court order under subsection (2) of section 77-27,109 for the production of books, papers, records, or memoranda or the testimony of any person, the period for the mailing of a notice of deficiency determination shall be tolled from the date the Tax Commissioner first applies to the appropriate court for the order until the last date on which the information or testimony contained in the application for the court order is obtained by the Tax Commissioner.

This subsection shall not apply if the court finds that the information is not relevant to the determination of the tax liability, the information was provided prior to the filing of the application, or the application was not filed within the time period otherwise provided in this section for the mailing of a notice of deficiency determination.

(9) Any extension for an item of entity income that is signed on behalf of the entity or by the entity's tax matters person for federal income tax purposes shall extend the time period during which a notice of deficiency could be mailed to the partners, shareholders, or members of the entity with respect to any item of entity income.

Source:Laws 1967, c. 487, § 86, p. 1607; Laws 1985, LB 273, § 63;    Laws 1987, LB 773, § 25;    Laws 1993, LB 345, § 67;    Laws 2004, LB 955, § 1;    Laws 2005, LB 216, § 17.    


77-2787. Income tax; erroneous refund; deficiency; limitation.

An erroneous refund shall be considered an underpayment of tax on the date made, and an assessment of a deficiency arising out of an erroneous refund may be made at any time within two years from the making of the refund, except that the assessment may be made within five years from the making of the refund if it appears that any part of the refund was induced by fraud or the misrepresentation of a material fact.

Source:Laws 1967, c. 487, § 87, p. 1609.


77-2788. Income tax; delinquency; interest.

(1) If any amount of income tax imposed by the Nebraska Revenue Act of 1967 including tax withheld by an employer or payor is not paid on or before the last date prescribed for payment, interest on such amount at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, shall be paid for the period from such last date to the date paid.

(2) For purposes of this section, the last date prescribed for the payment of tax shall be determined without regard to any extension of time.

(3) If the taxpayer has filed a waiver of restrictions on the assessment of a deficiency and if notice and demand by the Tax Commissioner for payment of such deficiency is not made within thirty days after the filing of such waiver, interest shall not be imposed on such deficiency for the period beginning immediately after such thirtieth day and ending with the date of notice and demand.

(4) Interest prescribed under this section on any income tax including tax withheld by an employer or payor shall be paid on notice and demand and shall be assessed, collected, and paid in the same manner as income taxes. Any reference to the income tax imposed by the Nebraska Revenue Act of 1967 shall be deemed also to refer to interest imposed by this section on such tax.

(5) Interest shall be imposed under this section with respect to any penalty or addition to tax only if such penalty or addition to tax is not paid within ten days of the notice and demand therefor, and in such case interest shall be imposed only for the period from the date of the notice and demand to the date of payment.

(6) If notice and demand is made for the payment of any amount of tax and if such amount is paid within ten days after the date of such notice and demand, interest under the provisions of this section on the amount so paid shall not be imposed for the period after the date of such notice and demand.

(7) If any portion of income tax is satisfied by credit of an overpayment, then no interest shall be imposed under the provisions of this section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to such overpayment.

(8) Interest prescribed under this section may be assessed and collected at any time during the period within which the tax, penalty, or addition to tax to which such interest relates may be assessed and collected respectively.

Source:Laws 1967, c. 487, § 88, p. 1609; Laws 1981, LB 167, § 53;    Laws 1984, LB 962, § 28;    Laws 1985, LB 273, § 64;    Laws 1991, LB 240, § 1;    Laws 1992, Fourth Spec. Sess., LB 1, § 36.    


77-2789. Income tax; failure to file return; penalty.

(1) In case of failure to file any income tax return required under the provisions of the Nebraska Revenue Act of 1967 on the date prescribed therefor, determined with regard to any extension of time for filing, unless it is shown that such failure is the result of reasonable cause and not the result of willful neglect, the Tax Commissioner may add to the amount required to be shown as tax on such return, five percent of the amount of such tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent in the aggregate. For purposes of this section, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.

(2) In case of each failure to file a statement of payment to another person, including the duplicate statement of tax withheld on wages, on the date prescribed therefor, determined with regard to any extension of time for filing, unless it is shown that such failure is the result of reasonable cause and not willful neglect, the Tax Commissioner may assess a penalty against the person so failing to file the statement, in the amount of two dollars for each statement not so filed but the total amount imposed on the delinquent person for all such failure during any calendar year shall not exceed two thousand dollars.

(3) In case of failure to file any return for income tax withheld on the date prescribed therefor, determined with regard to any extension of time to file, the Tax Commissioner may add to the amount required to be shown as tax on such return twenty-five dollars or the amount determined under subsection (1) of this section, whichever is greater.

(4) All determinations made by the Tax Commissioner under subsection (3) of this section are due and payable at the time they become final. If they are not paid when final, a penalty of ten percent of the total amount due, exclusive of interest and other penalties, shall be added to the total amount due.

Source:Laws 1967, c. 487, § 89, p. 1610; Laws 1993, LB 345, § 68;    Laws 2010, LB879, § 12.    


77-2790. Income tax; deficiency; interest; failure to report or file; prohibited acts; penalties.

(1)(a) If any part of a deficiency is the result of negligence or intentional disregard of rules and regulations but without intent to defraud, the Tax Commissioner may add to the tax an amount equal to five percent of the deficiency.

(b) If any part of a requested refund is overstated as a result of negligence, material misstatement, or intentional disregard of rules and regulations but without intent to defraud, the Tax Commissioner may add to the tax an amount equal to five percent of the overstatement of the refund.

(2)(a) If any part of a deficiency is the result of fraud, the Tax Commissioner may add to the tax an amount equal to fifty percent of the deficiency. This amount shall be in lieu of any amount determined under subsection (1) of this section.

(b) If any part of a requested refund is overstated as a result of fraud, the Tax Commissioner may add to the tax an amount equal to fifty percent of the overstatement of the refund. This amount shall be in lieu of any amount determined under subsection (1) of this section.

(3) If any taxpayer fails to pay all or any part of an installment of any tax due, he or she shall be deemed to have made an underpayment of estimated tax. The Tax Commissioner shall determine the amount of underpayment of estimated tax in accordance with the laws of the United States.

(4) If any taxpayer, with intent to evade or defeat any income tax imposed by the Nebraska Revenue Act of 1967 or the payment thereof, claims an excessive number of exemptions or in any other manner overstates the amount of withholding, he or she shall be guilty of a Class II misdemeanor. If any employer or payor, without intent to evade or defeat any income tax imposed by the Nebraska Revenue Act of 1967 or the payment thereof, fails to make a return and pay a tax withheld by him or her at the time required by or under the act, such employer or payor shall be liable for such taxes and shall pay the same together with interest thereon and any addition to tax assessed pursuant to subsection (1) of this section. Such interest and addition to tax shall not be charged to or collected from the employee or payee by the employer or payor. The Tax Commissioner shall have the same rights and powers for the collection of such tax, interest, and addition to tax against such employer or payor as are now prescribed by the act for the collection of income tax against a taxpayer.

(5) If any person required to collect, withhold, truthfully account for, and pay over the income tax imposed by the Nebraska Revenue Act of 1967 willfully fails to collect or withhold such tax or truthfully account for and pay over such tax or willfully attempts in any manner to evade or defeat the tax or the payment thereof, the Tax Commissioner may, in addition to other penalties provided by law, impose, assess, and collect a penalty equal to the total amount of the tax evaded, not collected, not withheld, or not accounted for and paid over. No addition to tax under subsection (1) or (2) of this section shall be imposed for any offense to which this subsection applies.

(6) If any person with fraudulent intent fails to pay, or to deduct or withhold and pay, any income tax, to make, render, sign, or certify any return of estimated tax, or to supply any information within the time required, the Tax Commissioner may impose, assess, and collect a penalty of not more than one thousand dollars, in addition to any other amounts required under the income tax provisions of the Nebraska Revenue Act of 1967.

(7) If any person for frivolous or groundless reasons or with the intent to delay or impede the administration of the Nebraska Revenue Act of 1967 (a) fails to pay over any tax due and owing under such act, (b) fails to file any return required under such act, or (c) files what purports to be a return but which does not contain sufficient information from which to determine the correctness of the self-assessment of tax or which contains information that indicates that the self-assessment of tax is substantially incorrect, such person shall pay a penalty of five hundred dollars for each occurrence. The penalty provided by this subsection shall be in addition to any other penalties provided by law.

(8) Any person who aids, procures, advises, or assists in the preparation of any return, affidavit, refund claim, or other document with the knowledge that its use will result in the material understatement of the tax liability of another person or the material overstatement of the amount of a refund of another person shall, in addition to other penalties provided by law, pay a penalty of one thousand dollars with respect to each separate return or other document.

(a) For the purposes of this subsection, a person furnishing typing, reproducing, or other mechanical assistance shall not be treated as having aided or assisted in the preparation of such document.

(b) A determination of a material deficiency shall not be sufficient to show that a person has aided or assisted in a material understatement of the tax liability of another person.

(c) The penalty in this subsection shall not be imposed more than once on any person for having aided or assisted in the preparation of documents for the same taxpayer, the same tax, and the same tax period regardless of the number of documents involved.

(d) Such penalty shall apply whether or not the understatement is with the consent of the person authorized to present the return, affidavit, refund claim, or other document.

(9) The additions to the income tax and penalties relating thereto provided by the Nebraska Revenue Act of 1967 shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as taxes, and any reference in such act to income tax or the tax imposed by the act shall be deemed also to refer to additions to the tax and penalties provided by this section. For purposes of the deficiency procedures provided in section 77-2776, this subsection shall not apply to:

(a) Any addition to tax under subsection (1) or (4) of section 77-2789 except as to that portion attributable to a deficiency;

(b) Any addition to tax for underpayment of estimated tax as provided in subsection (3) of this section; or

(c) Any additional penalty under subsection (6), (7), or (8) of this section.

(10) For purposes of subsections (1) and (2) of this section relating to deficiencies resulting from negligence or fraud, the amount shown as the tax by the taxpayer upon his or her return shall be taken into account in determining the amount of the deficiency only if such return was filed on or before the last day prescribed for the filing of such return determined with regard to any extension of time for such filing.

(11) For purposes of subsections (5) and (6) of this section, the term person shall include an individual, corporation, partnership, or limited liability company, or an officer or employee of any corporation, including a dissolved corporation, or a member or employee of any partnership or limited liability company, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

(12) If any person fails to comply with the reporting or filing requirements of sections 77-2772, 77-2775, and 77-2786 or the rules and regulations adopted and promulgated thereunder, the Tax Commissioner may impose, assess, and collect a penalty against such person for each instance of noncompliance of twenty-five percent of the tax due. Such amount shall be in addition to any other penalty, tax, or interest otherwise imposed by law for such noncompliance.

(13) If any nonresident individual provides false information or statements to an employer or payor regarding the portion of his or her wages or payments that are subject to withholding for this state which if used would result in the amount withheld being less than seventy-five percent of his or her income tax liability on such wages or payments or if any employer or payor uses such information when the employer or payor knows such information is false or maintains records which show such information is false, the Tax Commissioner may, in addition to other penalties provided by law, impose, assess, and collect from such individual, payor, or employer the penalties provided in subsections (5) and (6) of this section.

(14) If any employer or payor employing twenty-five or more employees who is required to withhold and pay over income tax imposed by the Nebraska Revenue Act of 1967 fails to either (a) withhold at least one and one-half percent of the wages of any employee or (b) obtain satisfactory evidence from the employee justifying a lower withholding amount as required by subdivision (1)(b) of section 77-2753, the Tax Commissioner may impose, assess, and collect a penalty of not more than one thousand dollars per violation.

Source:Laws 1967, c. 487, § 90, p. 1611; Laws 1984, LB 962, § 29;    Laws 1985, LB 273, § 65;    Laws 1988, LB 1064, § 3;    Laws 1993, LB 121, § 511;    Laws 1993, LB 345, § 69;    Laws 2007, LB223, § 14;    Laws 2008, LB1004, § 2;    Laws 2010, LB879, § 13.    


77-2791. Income tax; overpayment; refund; credit; Tax Commissioner; rules and regulations.

(1) The Tax Commissioner, within the applicable period of limitations, may credit an overpayment of income tax and interest on such overpayment against any liability in respect of any tax imposed by the tax laws of this state on the person who made the overpayment, and the balance shall be refunded by the State Treasurer out of the General Fund.

(2) If the amount allowable as a credit for income tax withheld from the taxpayer exceeds his or her tax to which the credit relates, the excess shall be considered an overpayment.

(3) If the amount allowable as a refundable income tax credit exceeds the tax liability of the taxpayer, the excess is considered an overpayment even if the taxpayer has no income tax liability prior to applying the refundable credit.

(4) If there has been an overpayment of tax required to be deducted and withheld under section 77-2753, refund shall be made to the employer or the payor only to the extent that the amount of the overpayment was not deducted and withheld by the employer or the payor.

(5) The Tax Commissioner may adopt and promulgate rules and regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined to be an overpayment of the income tax for a preceding taxable year.

(6) If any amount of income tax is assessed or collected after the expiration of the period of limitations properly applicable thereto, such amount shall be considered an overpayment.

Source:Laws 1967, c. 487, § 91, p. 1613; Laws 1984, LB 962, § 30;    Laws 1989, LB 258, § 10;    Laws 2016, LB776, § 4;    Laws 2018, LB1089, § 3.    


77-2792. Income tax; Tax Commissioner; abate unpaid assessment; waive penalties or interest.

(1) The Tax Commissioner may abate the unpaid portion of the assessment of any income tax or any liability in respect thereto which (a) is excessive in amount, (b) is assessed after the expiration of the period of limitations properly applicable thereto, (c) is erroneously or illegally assessed, or (d) is the result of an inconsistent position under section 1311 of the Internal Revenue Code of 1986.

(2) No claim for abatement shall be filed by a taxpayer in respect to an assessment of any income tax imposed under the Nebraska Revenue Act of 1967.

(3) The Tax Commissioner may abate the unpaid portion of the assessment of any tax or any liability in respect thereto if he or she determines under uniform rules prescribed by him or her that the administration and collection costs involved would not warrant collection of the amount due.

(4) In all proceedings under the Nebraska Revenue Act of 1967, the Tax Commissioner may act for and on behalf of the people of the State of Nebraska. The Tax Commissioner in his or her discretion may waive all or part of any penalties provided by such act or interest on delinquent taxes at the rate specified in section 45-104.02, as such rate may from time to time be adjusted.

Source:Laws 1967, c. 487, § 92, p. 1614; Laws 1991, LB 240, § 2;    Laws 1991, LB 773, § 18; Laws 1992, Fourth Spec. Sess., LB 1, § 37;    Laws 2008, LB914, § 13.    


77-2793. Claim for credit or refund; limitation.

(1) A claim for credit or refund of an overpayment of any income tax imposed by the Nebraska Revenue Act of 1967 shall be filed by the taxpayer within three years from the time the return was filed or two years from the time the tax was paid, whichever of such periods expires later. If there was no return filed by the taxpayer, a claim for credit or refund of a refundable credit shall be filed by the taxpayer within three years after the due date of the return for the year in which the refundable credit was allowable. No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in this subsection for the filing of a claim for credit or refund unless a claim for credit or refund is filed by the taxpayer within such period.

(2) If a claim for credit or refund of an overpayment is filed by the taxpayer during the applicable three-year period prescribed in subsection (1) of this section, the amount of the credit or refund shall not exceed the portion of the tax paid or any refundable credit allowable within the three years immediately preceding the filing of the claim plus the period of any extension of time for filing the return if such return was filed prior to the end of the extension of time. If a claim for credit or refund of an overpayment is not filed within the three-year period prescribed in subsection (1) of this section, but is filed within the two-year period prescribed in subsection (1) of this section, the amount of the credit or refund shall not exceed the portion of the tax paid or any refundable credit allowable during the two years immediately preceding the filing of the claim. If no claim is filed, the credit or refund shall not exceed the amount which would be allowable under either of the preceding sentences, as the case may be, if a claim was filed on the date the credit or refund is allowed.

(3) If an agreement for an extension of the period for assessment of income taxes is made within the period prescribed in subsection (1) of this section for the filing of a claim for credit or refund, the period for filing claim for credit or for making credit or refund if no claim is filed shall not expire prior to six months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof.

(4) If a taxpayer is required by subsection (1) of section 77-2775 to report a change or correction in federal adjusted gross income, taxable income, or tax liability reported on his or her federal income tax return, or to report a change or correction which is treated in the same manner as if it were an overpayment for federal income tax purposes, or to file an amended return with the Tax Commissioner, a claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within two years from the time the notice of such change or correction or such amended return was required to be filed with the Tax Commissioner. If the report or amended return is not filed within the sixty-day period specified in such subsection, interest on any resulting refund or credit shall cease to accrue after such sixtieth day. The amount of such credit or refund shall not exceed the amount of the reduction in tax attributable to such federal change, correction, or items amended on the taxpayer's amended federal income tax return. This subsection shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subsection.

(5)(a) If a taxpayer is required by subsection (2) of section 77-2775 to report a change or correction in the amount of income taxable or tax credit allowable in one or more states and such changes or corrections when reflected in the return filed under the Nebraska Revenue Act of 1967 as most recently amended would result in an overpayment of tax, a claim for credit or refund shall be filed by the taxpayer within the earlier of (i) two years from the time the notice of such change or correction or such amended return was required to be filed with the Tax Commissioner or (ii) ten years from the due date of the return.

(b) If the report or amended return is not filed within the sixty-day period specified in such subsection, interest on any resulting refund or credit shall cease to accrue after such sixtieth day. The amount of such credit or refund shall not exceed the lesser of (i) the reduction in tax attributable to the change or correction in the amount of income taxable or the credit allowable in such other state in the return filed under the Nebraska Revenue Act of 1967 or (ii) the increase in tax actually paid to such other state or states.

(c) This subsection shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subsection. This subsection shall apply to changes or corrections which become final on or after May 1, 1993.

(6) If the claim for credit or refund relates to an overpayment attributable to a net operating loss carryback derived from or connected with Nebraska sources, the claim may be made under rules and regulations prescribed by the Tax Commissioner consistent, to the extent possible under the Nebraska Revenue Act of 1967, with the laws of the United States.

(7) For purposes of this section and section 77-2795, a timely filed petition for redetermination shall be considered a claim for credit or refund filed on the date the notice of deficiency determination was mailed.

Source:Laws 1967, c. 487, § 93, p. 1614; Laws 1985, LB 273, § 66;    Laws 1987, LB 773, § 26;    Laws 1993, LB 345, § 70;    Laws 2008, LB914, § 14;    Laws 2014, LB851, § 13;    Laws 2016, LB776, § 5.    


Annotations

77-2794. Income tax; overpayment; interest.

(1) Under regulations prescribed by the Tax Commissioner interest shall be allowed and paid at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, upon any overpayment in respect to the income tax imposed by the Nebraska Revenue Act of 1967.

(2) For purposes of this section:

(a) The date of overpayment shall be the last day prescribed for filing the original return of such tax;

(b) Any return filed before the last day prescribed for the filing thereof, determined without regard to any extension of time to file the return, shall be considered as filed on such last day;

(c) Any tax paid by the taxpayer before the last day prescribed for its payment, any income tax withheld from the taxpayer during any calendar year, and any amount paid by the taxpayer as estimated income tax for a taxable year shall be deemed to have been paid on the last day prescribed for filing the return for the taxable year to which such amount constitutes a credit or payment, determined without regard to any extension of time granted the taxpayer;

(d) If at the time an overpayment is to be refunded, the taxpayer also has a reported underpayment of the same tax in another year: (i) If the overpayment is for a taxable year ending before the year of underpayment, the overpayment shall be applied to reduce such underpayment as of the last day prescribed for filing the original return of such tax for the year of underpayment; (ii) if the overpayment is for a taxable year ending after the year of underpayment, the overpayment shall be applied to reduce such underpayment as of the last day prescribed for filing the original return of such tax for the year of overpayment; or (iii) if the overpayment is one for which interest is not allowed under this section, the overpayment shall be applied as of the date of the filing of the claim for refund; and interest shall be allowed for any remaining overpayment as provided in subdivision (a) of this subsection;

(e) The period of overpayment during which interest shall be allowed shall not include any period during which the overpayment continued due to the unreasonable delay by the taxpayer in filing the claim for refund. For this purpose, the burden of proof shall be on the taxpayer to show that a delay of more than ninety days after all of the facts required to prepare a correct claim for refund are available is not unreasonable; and

(f) The period of overpayment during which interest shall be allowed shall not include any period during which an agreement between the taxpayer and the Internal Revenue Service was not filed as required by subsection (6) of section 77-2786 and the first ninety days after such agreement is filed.

(3)(a) Except as provided in subdivision (b) of this subsection, if any overpayment of income tax imposed by the Nebraska Revenue Act of 1967 is refunded within ninety days after the last date prescribed, or permitted by extension of time, for filing the return of such tax or within ninety days after any original return, and any amended return filed to carry back a loss, was filed, whichever is later, no interest shall be allowed under this section on overpayment.

(b) If the Tax Commissioner approves and implements an electronic form or method for filing the return and the return is not filed electronically, no interest shall be allowed under this section on overpayment.

(c) In the case of amended returns filed for any reason other than to carry back a loss, interest shall be allowed as provided in subsection (1) of this section.

Source:Laws 1967, c. 487, § 94, p. 1616; Laws 1981, LB 167, § 54;    Laws 1991, LB 240, § 3;    Laws 1992, Fourth Spec. Sess., LB 1, § 38;    Laws 1993, LB 345, § 71;    Laws 1996, LB 1041, § 8;    Laws 2004, LB 955, § 2;    Laws 2008, LB915, § 5;    Laws 2010, LB879, § 14.    


77-2795. Income tax; claim for refund; grounds; state; oral hearing.

Every claim for refund shall be filed with the Tax Commissioner in writing and shall state the specific grounds upon which it is founded. The Tax Commissioner shall grant the taxpayer or his authorized representative an opportunity for an oral hearing if the taxpayer so requests.

Source:Laws 1967, c. 487, § 95, p. 1617.


77-2796. Income tax; Tax Commissioner; claim for refund; denial; notice.

If the Tax Commissioner disallows a claim for refund, he or she shall notify the taxpayer accordingly. The action of the Tax Commissioner denying a claim for refund is final upon the expiration of thirty days after the date when he or she mails notice of his or her action to the taxpayer unless within this period the taxpayer seeks review of the Tax Commissioner's determination as hereinafter provided.

Source:Laws 1967, c. 487, § 96, p. 1617; Laws 2008, LB914, § 15;    Laws 2010, LB879, § 15.    


77-2797. Income tax; Tax Commissioner; refund claim; notice of action; limitation; effect.

The Tax Commissioner shall mail a notice of action on any refund claim within six months after the claim is filed. The taxpayer may, prior to notice of action on the refund claim, consider the claim disallowed.

Source:Laws 1967, c. 487, § 97, p. 1617.


77-2798. Income tax; claim for refund; action; where brought.

Except in cases involving the proposed assessment of a deficiency, any taxpayer who claims that the income tax he has paid under the Nebraska Revenue Act of 1967 is void in whole or in part, may bring an action, upon the grounds set forth in his claim for refund, against the Tax Commissioner for recovery of the whole or any part of the amount paid. Such suit against the Tax Commissioner may be instituted in a district court of Nebraska of appropriate jurisdiction where the taxpayer resides or in the district court of Lancaster County.

Source:Laws 1967, c. 487, § 98, p. 1617.


Annotations

77-2799. Income tax; claim for refund; filing required; action.

No suit shall be maintained for the recovery of any income tax imposed by the provisions of the Nebraska Revenue Act of 1967 alleged to have been erroneously paid until a claim for refund has been filed with the Tax Commissioner as provided in section 77-2795 and the Tax Commissioner has denied the refund.

Source:Laws 1967, c. 487, § 99, p. 1617.


77-27,100. Income tax; claim for refund; limitation.

The action authorized in section 77-2798 shall be filed within three years from the last date prescribed for filing the return or within one year from the date the tax was paid, or within thirty days after the denial of a claim for refund by the Tax Commissioner.

Source:Laws 1967, c. 487, § 100, p. 1617; Laws 2008, LB914, § 16;    Laws 2010, LB879, § 16.    


77-27,101. Income tax; action for refund; judgment.

In any action for a refund, the court may render judgment for the taxpayer for any part of the tax, interest, penalties, or other amounts found to be erroneously paid, together with interest on the amount of the overpayment. The amount of any judgment against the Tax Commissioner shall first be credited against any taxes, interest, penalties, or other amounts due from the taxpayer under the tax laws of Nebraska and the remainder refunded.

Source:Laws 1967, c. 487, § 101, p. 1618.


77-27,102. Income tax; collection; unpaid tax; notice.

(1) The income tax imposed by the Nebraska Revenue Act of 1967 shall be collected by the Tax Commissioner and he may establish the mode or time for the collection of any amount due under the provisions of such act if not otherwise specified. The Tax Commissioner shall, upon request, give a receipt for any income tax collected under such act. The Tax Commissioner may authorize incorporated banks or trust companies which are depositaries or fiscal agents of this state to receive and give a receipt for any income tax imposed under the provisions of such act, in such manner, at such times, and under such conditions as he may prescribe; and the Tax Commissioner shall prescribe the manner, times, and conditions under which the receipt of tax by such banks and trust companies is to be treated as payment of tax to the Tax Commissioner.

(2) The Tax Commissioner shall as soon as practicable give notice to each person liable for any amount of tax, addition to tax, additional amount, penalty or interest, which has been assessed but remains unpaid, stating the amount and demanding payment thereof within sixty days of the date of the notice. Such notice shall be left at the dwelling place or usual place of business of such person or shall be sent by mail to such person's last-known address.

Source:Laws 1967, c. 487, § 102, p. 1618.


77-27,103. Income tax; due and unpaid; collection; lien foreclosure.

Any (1) tax due and unpaid under the provisions of the Nebraska Revenue Act of 1967, (2) interest, penalty, or addition to such tax, (3) tax, interest, penalty, or addition to such tax which has been erroneously refunded, and (4) deficiency shall constitute a debt to the State of Nebraska which may be collected by lien foreclosure or sued for and recovered in any proper form of action, in the name of the State of Nebraska, in the district court of the county wherein the taxpayer resides or owns property.

Source:Laws 1967, c. 487, § 103, p. 1618.


77-27,104. Repealed. Laws 1986, LB 1027, § 226.

77-27,105. Repealed. Laws 1986, LB 1027, § 226.

77-27,106. Repealed. Laws 1986, LB 1027, § 226.

77-27,107. Income tax; demand for payment; notice; collection.

When notice and demand for the payment of income tax is given to a taxpayer and it appears to the Tax Commissioner that it is not practicable to locate property of the taxpayer sufficient in amount to cover the amount of tax due, he or she shall send a copy of the notice provided for in the Uniform State Tax Lien Registration and Enforcement Act to the taxpayer at his or her last-known address together with a notice that such notice has been filed with the appropriate filing officer. Thereafter, the Tax Commissioner may authorize the institution of any action or proceeding to collect or enforce such claim in any place and by any procedure that a civil judgment of a court of record of this state could be collected or enforced. The Tax Commissioner may also in his or her discretion designate agents or retain counsel for the purpose of collecting any income taxes due under the Nebraska Revenue Act of 1967. He or she may fix the compensation of such agents and counsel to be paid out of money appropriated or otherwise lawfully available for payment thereof and he or she may require of them bonds or other security for the faithful performance of their duties. The Tax Commissioner may enter into agreements with the tax departments of other states and the District of Columbia for the collection of income taxes from persons found in those jurisdictions who are delinquent in the payment of income taxes imposed under such act.

Source:Laws 1967, c. 487, § 107, p. 1623; Laws 1986, LB 1027, § 209;    Laws 1993, LB 161, § 4.    


Cross References

77-27,108. Income tax; collection; comity with other states.

The courts of this state shall recognize and enforce liabilities for income taxes lawfully imposed by any other state which extends a like comity to this state, and the duly authorized office of any such state may sue for the collection of such a tax in the courts of this state. A certificate by the Secretary of State of such other state that an office suing for the collection of such a tax is duly authorized to collect the tax shall be conclusive proof of such authority. For the purpose of this section, the word taxes shall include additions to tax, interest and penalties. Liability for such taxes, additions to tax, interest and penalties shall be recognized and enforced by the courts of this state to the same extent that the laws of such other state permit the enforcement in its courts of liability for such taxes, additions to tax, interest and penalties due this state under the provisions of the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 108, p. 1623.


77-27,109. Income tax; refusal to file return; refusal to produce records; Tax Commissioner; powers; contempt proceedings.

(1) If any person willfully refuses to file an income tax return required by the provisions of the Nebraska Revenue Act of 1967, the Tax Commissioner may apply to a judge of the district court for the county in which the person resides, or, in the case of a corporation, the county in which it has its principal place of business in Nebraska, for an order directing such person to file the required return. If such person fails or refuses to obey such order, he shall be guilty of contempt of court.

(2) If any person willfully refuses to make available any books, papers, records or memoranda for examination by the Tax Commissioner or his representative, or willfully refuses to attend and testify, pursuant to the powers conferred on the Tax Commissioner by subsection (3) of section 77-27,119, the Tax Commissioner may apply to a judge of the district court for the county where such person resides, for an order directing such person to comply with the Tax Commissioner's request for books, papers, records or memoranda or for his attendance and testimony. If the books, papers, records or memoranda required by the Tax Commissioner are in the custody of a corporation, the order of the court may be directed to any principal officer of such corporation. If a person fails or refuses to obey such order, he shall be guilty of contempt of court.

Source:Laws 1967, c. 487, § 109, p. 1624.


77-27,110. Income tax; liability of transferee.

(1) The liability, at law or in equity, of a transferee of property of a taxpayer for any income tax, addition to such tax, penalty or interest due the Tax Commissioner under the provisions of the Nebraska Revenue Act of 1967, shall be assessed, paid and collected in the same manner and subject to the same provisions and limitations as in the case of the tax to which the liability relates. Transferee shall include donee, heir, legatee, devisee, distributee, successor, and assignee.

(2) If any person is deceased, the period of limitation for assessment against such person shall be the period that would be in effect had death not occurred.

Source:Laws 1967, c. 487, § 110, p. 1624.


Annotations

77-27,111. Income tax; taxpayer; depart from state; conceal property; Tax Commissioner; powers.

(1) If the Tax Commissioner finds that a taxpayer is about to (a) depart from the State of Nebraska, (b) remove his property therefrom, (c) conceal himself or his property therein, or (d) do any other act tending to prejudice or render wholly or partially ineffectual any proceedings to collect the income tax for the preceding or current taxable year unless such proceedings be brought without delay, the Tax Commissioner shall declare the taxable period for such taxpayer immediately terminated, and shall cause notice of such findings and declaration to be given the taxpayer, together with a demand for immediate payment of any income tax due for this period, whether or not the time otherwise allowed by law for filing returns and paying the tax has expired. Such tax shall thereupon become immediately due and payable. In any proceedings in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section, such findings of the Tax Commissioner, whether made after notice to the taxpayer or not, shall be for all purposes prima facie evidence of the taxpayer's design.

(2) A taxpayer who is not in default in making any income tax return or paying any income taxes assessed under the provisions of the Nebraska Revenue Act of 1967 may furnish to the Tax Commissioner, under regulations to be prescribed by the Tax Commissioner, security that he will duly make the return next thereafter required to be filed and pay the tax next thereafter required to be paid. The Tax Commissioner may approve and accept in like manner security for return and payment of taxes made due and payable by virtue of the provisions of this section.

(3) If security is approved and accepted pursuant to the provisions of subsection (2) of this section and such further or other security with respect to the tax or taxes covered thereby is given as the Tax Commissioner shall from time to time find necessary and require, payment of such taxes shall not be enforced by any proceedings under the provisions of this section prior to the expiration of the time otherwise allowed for paying such taxes.

(4) In the case of a bona fide resident of Nebraska about to depart from the state the Tax Commissioner may waive any or all of the requirements placed upon the taxpayer by the provisions of this section.

Source:Laws 1967, c. 487, § 111, p. 1625.


77-27,112. Income tax; taxpayer; bankruptcy; Tax Commissioner; tax; assessment; collection.

(1) Upon the adjudication of bankruptcy of any taxpayer in any bankruptcy proceeding or the appointment of a receiver for any taxpayer in any receivership proceeding before any court of the United States or any state or territory or of the District of Columbia, any deficiency, together with additions to tax and interest provided by law, determined by the Tax Commissioner, may be immediately assessed.

(2) Claims for the deficiency and such additions to income tax and interest may be presented, for adjudication in accordance with law, to the court before which the bankruptcy or receivership proceeding is pending, despite the pendency of a protest before the Tax Commissioner under the provisions of section 77-2778. No protest against a proposed assessment shall be filed with the Tax Commissioner after the adjudication of bankruptcy or appointment of the receiver.

Source:Laws 1967, c. 487, § 112, p. 1626.


77-27,113. Income tax; evasion; penalty.

Any person who willfully attempts in any manner to evade any income tax imposed by the provisions of the Nebraska Revenue Act of 1967 or the payment thereof shall, in addition to other penalties provided by law, be guilty of a Class IV felony.

Source:Laws 1967, c. 487, § 113, p. 1626; Laws 1977, LB 39, § 241.    


77-27,114. Income tax; failure to collect, withhold, deduct, account for, or pay; penalty.

Any person required under the provisions of the Nebraska Revenue Act of 1967 to collect, withhold, deduct, and truthfully account for and pay over any income tax imposed by the act who willfully fails to collect, withhold, deduct, or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a Class IV felony.

Source:Laws 1967, c. 487, § 114, p. 1626; Laws 1977, LB 39, § 242;    Laws 1991, LB 773, § 19.


77-27,115. Income tax; taxpayer; failure to pay, account or keep records; penalty.

Any person required under the provisions of the Nebraska Revenue Act of 1967 to pay any income tax or estimated tax, or required by the provisions of such act to make a return, other than a return of estimated tax, keep any records, or supply any information, who willfully fails to pay such tax or estimated tax, make such return, keep such records, or supply such information, at the time or times required by law, shall, in addition to other penalties provided by law, be guilty of a Class II misdemeanor.

Source:Laws 1967, c. 487, § 115, p. 1627; Laws 1969, c. 645, § 12, p. 2562; Laws 1977, LB 39, § 243.    


Annotations

77-27,116. Income tax; false return; penalty.

Any person who willfully makes and subscribes any return, statement or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or willfully aids or procures the preparation or presentation in a matter arising under the income tax provisions of the Nebraska Revenue Act of 1967 of a return, affidavit, claim or other document which is fraudulent or is false as to any material matter shall be guilty of a Class IV felony.

Source:Laws 1967, c. 487, § 116, p. 1627; Laws 1977, LB 39, § 244.    


77-27,117. Income tax; prosecution for violation of act; limitation; Attorney General; concurrent jurisdiction.

Any prosecution under income tax provisions of the Nebraska Revenue Act of 1967 shall be instituted within three years after the commission of the offense, except that the period of limitation shall be four years for the offenses described in sections 77-27,113, 77-27,115, and 77-27,116. The failure to do any act required by or under the income tax provisions of such act shall be deemed an act committed in part at the principal office of the Tax Commissioner. Any prosecution may be conducted in any county where the person or corporation to whose liability the proceeding relates resides, or has a place of business or in any county in which such crime is committed. The Attorney General shall have concurrent jurisdiction with the county attorney in the prosecution of offenses.

Source:Laws 1967, c. 487, § 117, p. 1627; Laws 2006, LB 1003, § 7.    


77-27,118. Income tax; corporate officer or employee; liable for tax; when.

Any corporate officer or employee with the duty to pay income taxes imposed upon a corporation or to perform some other act required of a corporation shall be personally liable under section 77-1783.01 for the payment of such taxes or penalties in the event of willful failure on his or her part to perform such act.

Source:Laws 1967, c. 487, § 118, p. 1628; Laws 1996, LB 1041, § 9.    


77-27,119. Income tax; Tax Commissioner; administer and enforce sections; prescribe forms; content; examination of return or report; uniform school district numbering system; audit by Auditor of Public Accounts or office of Legislative Audit; wrongful disclosure; exception; penalty.

(1) The Tax Commissioner shall administer and enforce the income tax imposed by sections 77-2714 to 77-27,135, and he or she is authorized to conduct hearings, to adopt and promulgate such rules and regulations, and to require such facts and information to be reported as he or she may deem necessary to enforce the income tax provisions of such sections, except that such rules, regulations, and reports shall not be inconsistent with the laws of this state or the laws of the United States. The Tax Commissioner may for enforcement and administrative purposes divide the state into a reasonable number of districts in which branch offices may be maintained.

(2)(a) The Tax Commissioner may prescribe the form and contents of any return or other document required to be filed under the income tax provisions. Such return or other document shall be compatible as to form and content with the return or document required by the laws of the United States. The form shall have a place where the taxpayer shall designate the school district in which he or she lives and the county in which the school district is headquartered. The Tax Commissioner shall adopt and promulgate such rules and regulations as may be necessary to insure compliance with this requirement.

(b) The State Department of Education, with the assistance and cooperation of the Department of Revenue, shall develop a uniform system for numbering all school districts in the state. Such system shall be consistent with the data processing needs of the Department of Revenue and shall be used for the school district identification required by subdivision (a) of this subsection.

(c) The proper filing of an income tax return shall consist of the submission of such form as prescribed by the Tax Commissioner or an exact facsimile thereof with sufficient information provided by the taxpayer on the face of the form from which to compute the actual tax liability. Each taxpayer shall include such taxpayer's correct social security number or state identification number and the school district identification number of the school district in which the taxpayer resides on the face of the form. A filing is deemed to occur when the required information is provided.

(3) The Tax Commissioner, for the purpose of ascertaining the correctness of any return or other document required to be filed under the income tax provisions, for the purpose of determining corporate income, individual income, and withholding tax due, or for the purpose of making an estimate of taxable income of any person, shall have the power to examine or to cause to have examined, by any agent or representative designated by him or her for that purpose, any books, papers, records, or memoranda bearing upon such matters and may by summons require the attendance of the person responsible for rendering such return or other document or remitting any tax, or any officer or employee of such person, or the attendance of any other person having knowledge in the premises, and may take testimony and require proof material for his or her information, with power to administer oaths or affirmations to such person or persons.

(4) The time and place of examination pursuant to this section shall be such time and place as may be fixed by the Tax Commissioner and as are reasonable under the circumstances. In the case of a summons, the date fixed for appearance before the Tax Commissioner shall not be less than twenty days from the time of service of the summons.

(5) No taxpayer shall be subjected to unreasonable or unnecessary examinations or investigations.

(6) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the Tax Commissioner, any officer or employee of the Tax Commissioner, any person engaged or retained by the Tax Commissioner on an independent contract basis, any person who pursuant to this section is permitted to inspect any report or return or to whom a copy, an abstract, or a portion of any report or return is furnished, any employee of the State Treasurer or the Department of Administrative Services, or any other person to divulge, make known, or use in any manner the amount of income or any particulars set forth or disclosed in any report or return required except for the purpose of enforcing sections 77-2714 to 77-27,135. The officers charged with the custody of such reports and returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the Tax Commissioner in an action or proceeding under the provisions of the tax law to which he or she is a party or on behalf of any party to any action or proceeding under such sections when the reports or facts shown thereby are directly involved in such action or proceeding, in either of which events the court may require the production of, and may admit in evidence, so much of such reports or of the facts shown thereby as are pertinent to the action or proceeding and no more. Nothing in this section shall be construed (a) to prohibit the delivery to a taxpayer, his or her duly authorized representative, or his or her successors, receivers, trustees, personal representatives, administrators, assignees, or guarantors, if directly interested, of a certified copy of any return or report in connection with his or her tax, (b) to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, (c) to prohibit the inspection by the Attorney General, other legal representatives of the state, or a county attorney of the report or return of any taxpayer who brings an action to review the tax based thereon, against whom an action or proceeding for collection of tax has been instituted, or against whom an action, proceeding, or prosecution for failure to comply with the Nebraska Revenue Act of 1967 is being considered or has been commenced, (d) to prohibit furnishing to the Nebraska Workers' Compensation Court the names, addresses, and identification numbers of employers, and such information shall be furnished on request of the court, (e) to prohibit the disclosure of information and records to a collection agency contracting with the Tax Commissioner pursuant to sections 77-377.01 to 77-377.04, (f) to prohibit the disclosure of information pursuant to section 77-27,195, 77-4110, 77-5731, 77-6521, 77-6837, 77-6839, or 77-6928, (g) to prohibit the disclosure to the Public Employees Retirement Board of the addresses of individuals who are members of the retirement systems administered by the board, and such information shall be furnished to the board solely for purposes of its administration of the retirement systems upon written request, which request shall include the name and social security number of each individual for whom an address is requested, (h) to prohibit the disclosure of information to the Department of Labor necessary for the administration of the Employment Security Law, the Contractor Registration Act, or the Employee Classification Act, (i) to prohibit the disclosure to the Department of Motor Vehicles of tax return information pertaining to individuals, corporations, and businesses determined by the Department of Motor Vehicles to be delinquent in the payment of amounts due under agreements pursuant to the International Fuel Tax Agreement Act, and such disclosure shall be strictly limited to information necessary for the administration of the act, (j) to prohibit the disclosure under section 42-358.08, 43-512.06, or 43-3327 to any court-appointed individuals, the county attorney, any authorized attorney, or the Department of Health and Human Services of an absent parent's address, social security number, amount of income, health insurance information, and employer's name and address for the exclusive purpose of establishing and collecting child, spousal, or medical support, (k) to prohibit the disclosure of information to the Department of Insurance, the Nebraska State Historical Society, or the State Historic Preservation Officer as necessary to carry out the Department of Revenue's responsibilities under the Nebraska Job Creation and Mainstreet Revitalization Act, or (l) to prohibit the disclosure to the Department of Insurance of information pertaining to authorization for, and use of, tax credits under the New Markets Job Growth Investment Act. Information so obtained shall be used for no other purpose. Any person who violates this subsection shall be guilty of a felony and shall upon conviction thereof be fined not less than one hundred dollars nor more than five hundred dollars, or be imprisoned not more than five years, or be both so fined and imprisoned, in the discretion of the court and shall be assessed the costs of prosecution. If the offender is an officer or employee of the state, he or she shall be dismissed from office and be ineligible to hold any public office in this state for a period of two years thereafter.

(7) Reports and returns required to be filed under income tax provisions of sections 77-2714 to 77-27,135 shall be preserved until the Tax Commissioner orders them to be destroyed.

(8) Notwithstanding the provisions of subsection (6) of this section, the Tax Commissioner may permit the Secretary of the Treasury of the United States or his or her delegates or the proper officer of any state imposing an income tax, or the authorized representative of either such officer, to inspect the income tax returns of any taxpayer or may furnish to such officer or his or her authorized representative an abstract of the return of income of any taxpayer or supply him or her with information concerning an item of income contained in any return or disclosed by the report of any investigation of the income or return of income of any taxpayer, but such permission shall be granted only if the statutes of the United States or of such other state, as the case may be, grant substantially similar privileges to the Tax Commissioner of this state as the officer charged with the administration of the income tax imposed by sections 77-2714 to 77-27,135.

(9) Notwithstanding the provisions of subsection (6) of this section, the Tax Commissioner may permit the Postal Inspector of the United States Postal Service or his or her delegates to inspect the reports or returns of any person filed pursuant to the Nebraska Revenue Act of 1967 when information on the reports or returns is relevant to any action or proceeding instituted or being considered by the United States Postal Service against such person for the fraudulent use of the mails to carry and deliver false and fraudulent tax returns to the Tax Commissioner with the intent to defraud the State of Nebraska or to evade the payment of Nebraska state taxes.

(10)(a) Notwithstanding the provisions of subsection (6) of this section, the Tax Commissioner shall, upon written request by the Auditor of Public Accounts or the office of Legislative Audit, make tax returns and tax return information open to inspection by or disclosure to officers and employees of the Auditor of Public Accounts or employees of the office of Legislative Audit for the purpose of and to the extent necessary in making an audit of the Department of Revenue pursuant to section 50-1205 or 84-304. The Auditor of Public Accounts or office of Legislative Audit shall statistically and randomly select the tax returns and tax return information to be audited based upon a computer tape provided by the Department of Revenue which contains only total population documents without specific identification of taxpayers. The Tax Commissioner shall have the authority to approve the statistical sampling method used by the Auditor of Public Accounts or office of Legislative Audit. Confidential tax returns and tax return information shall be audited only upon the premises of the Department of Revenue. All audit workpapers pertaining to the audit of the Department of Revenue shall be stored in a secure place in the Department of Revenue.

(b) When selecting tax returns or tax return information for a performance audit of a tax incentive program, the office of Legislative Audit shall select the tax returns or tax return information for either all or a statistically and randomly selected sample of taxpayers who have applied for or who have qualified for benefits under the tax incentive program that is the subject of the audit. When the office of Legislative Audit reports on its review of tax returns and tax return information, it shall comply with subdivision (10)(c) of this section.

(c) No officer or employee of the Auditor of Public Accounts or office of Legislative Audit employee shall disclose to any person, other than another officer or employee of the Auditor of Public Accounts or office of Legislative Audit whose official duties require such disclosure, any return or return information described in the Nebraska Revenue Act of 1967 in a form which can be associated with or otherwise identify, directly or indirectly, a particular taxpayer.

(d) Any person who violates the provisions of this subsection shall be guilty of a Class IV felony and, in the discretion of the court, may be assessed the costs of prosecution. The guilty officer or employee shall be dismissed from employment and be ineligible to hold any position of employment with the State of Nebraska for a period of two years thereafter. For purposes of this subsection, officer or employee shall include a former officer or employee of the Auditor of Public Accounts or former employee of the office of Legislative Audit.

(11) For purposes of subsections (10) through (13) of this section:

(a) Tax returns shall mean any tax or information return or claim for refund required by, provided for, or permitted under sections 77-2714 to 77-27,135 which is filed with the Tax Commissioner by, on behalf of, or with respect to any person and any amendment or supplement thereto, including supporting schedules, attachments, or lists which are supplemental to or part of the filed return;

(b) Return information shall mean:

(i) A taxpayer's identification number and (A) the nature, source, or amount of his or her income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing or (B) any other data received by, recorded by, prepared by, furnished to, or collected by the Tax Commissioner with respect to a return or the determination of the existence or possible existence of liability or the amount of liability of any person for any tax, penalty, interest, fine, forfeiture, or other imposition or offense; and

(ii) Any part of any written determination or any background file document relating to such written determination; and

(c) Disclosures shall mean the making known to any person in any manner a return or return information.

(12) The Auditor of Public Accounts shall (a) notify the Tax Commissioner in writing thirty days prior to the beginning of an audit of his or her intent to conduct an audit, (b) provide an audit plan, and (c) provide a list of the tax returns and tax return information identified for inspection during the audit. The office of Legislative Audit shall notify the Tax Commissioner of the intent to conduct an audit and of the scope of the audit as provided in section 50-1209.

(13) The Auditor of Public Accounts or the office of Legislative Audit shall, as a condition for receiving tax returns and tax return information: (a) Subject employees involved in the audit to the same confidential information safeguards and disclosure procedures as required of Department of Revenue employees; (b) establish and maintain a permanent system of standardized records with respect to any request for tax returns or tax return information, the reason for such request, and the date of such request and any disclosure of the tax return or tax return information; (c) establish and maintain a secure area or place in the Department of Revenue in which the tax returns, tax return information, or audit workpapers shall be stored; (d) restrict access to the tax returns or tax return information only to persons whose duties or responsibilities require access; (e) provide such other safeguards as the Tax Commissioner determines to be necessary or appropriate to protect the confidentiality of the tax returns or tax return information; (f) provide a report to the Tax Commissioner which describes the procedures established and utilized by the Auditor of Public Accounts or office of Legislative Audit for insuring the confidentiality of tax returns, tax return information, and audit workpapers; and (g) upon completion of use of such returns or tax return information, return to the Tax Commissioner such returns or tax return information, along with any copies.

(14) The Tax Commissioner may permit other tax officials of this state to inspect the tax returns and reports filed under sections 77-2714 to 77-27,135, but such inspection shall be permitted only for purposes of enforcing a tax law and only to the extent and under the conditions prescribed by the rules and regulations of the Tax Commissioner.

(15) The Tax Commissioner shall compile the school district information required by subsection (2) of this section. Insofar as it is possible, such compilation shall include, but not be limited to, the total adjusted gross income of each school district in the state. The Tax Commissioner shall adopt and promulgate such rules and regulations as may be necessary to insure that such compilation does not violate the confidentiality of any individual income tax return nor conflict with any other provisions of state or federal law.

Source:Laws 1967, c. 487, § 119, p. 1628; Laws 1969, c. 694, § 1, p. 2689; Laws 1971, LB 527, § 1; Laws 1971, LB 571, § 1;    Laws 1973, LB 526, § 6;    Laws 1979, LB 302, § 1;    Laws 1981, LB 170, § 7;    Laws 1984, LB 962, § 32;    Laws 1985, LB 273, § 68;    Laws 1985, LB 344, § 8;    Laws 1985, LB 345, § 1;    Laws 1989, LB 611, § 3;    Laws 1990, LB 431, § 1;    Laws 1991, LB 549, § 22; Laws 1993, LB 46, § 17;    Laws 1993, LB 345, § 72;    Laws 1997, LB 129, § 2;    Laws 1997, LB 720, § 23;    Laws 1997, LB 806, § 3;    Laws 2002, LB 989, § 19;    Laws 2005, LB 216, § 18;    Laws 2005, LB 312, § 15;    Laws 2006, LB 588, § 9;    Laws 2006, LB 956, § 11;    Laws 2008, LB915, § 6;    Laws 2010, LB563, § 15;    Laws 2010, LB879, § 17;    Laws 2013, LB39, § 13;    Laws 2014, LB191, § 20;    Laws 2014, LB851, § 14;    Laws 2015, LB539, § 7;    Laws 2016, LB1022, § 5;    Laws 2020, LB1107, § 133;    Laws 2021, LB528, § 20;    Laws 2021, LB544, § 32.    


Cross References

Annotations

77-27,119.01. Income tax form; contribution to Wildlife Conservation Fund.

The Tax Commissioner shall include on the individual income tax return form space in which the individual taxpayer may, if a refund is due, designate one dollar or a greater amount of such refund as a contribution to the Wildlife Conservation Fund created in section 37-811.

Source:Laws 1984, LB 466, § 6;    Laws 1987, LB 773, § 27;    Laws 1998, LB 922, § 408;    Laws 2007, LB299, § 19.    


77-27,119.02. Tax Commissioner; provide information to Legislative Fiscal Analyst.

Pursuant to section 50-420 and the duties prescribed in section 77-27,159, the Tax Commissioner shall upon request provide the Legislative Fiscal Analyst all information used to develop revenue projections under section 77-27,159 and all information used to develop fiscal notes that may relate to revised revenue forecasts. Such information shall be provided in a form which does not violate section 77-27,119.

Source:Laws 1987, LB 773, § 28;    Laws 1992, LB 988, § 17.


77-27,119.03. Disclosure of election to be taxed as retailer; authorized.

Notwithstanding any other provision of the Nebraska Revenue Act of 1967, the Tax Commissioner or any employee of the Department of Revenue may disclose the election of another person made pursuant to section 77-2701.10.

Source:Laws 1989, LB 762, § 8;    Laws 1992, LB 871, § 63;    Laws 2003, LB 282, § 79.    


77-27,119.04. Repealed. Laws 2013, LB 79, § 41.

77-27,119.05. Income tax form; contribution to Nebraska State Fair.

On the individual income tax return forms for tax years 2003, 2004, and 2005, the Tax Commissioner shall include space in which the individual taxpayer may, if a refund is due, designate one dollar or a greater amount of the refund as a contribution to the Nebraska State Fair. In the case of a joint return, each spouse may designate one dollar or a greater amount of the refund as a contribution to the fund.

Source:Laws 2003, LB 72, § 2.    


77-27,119.06. Nebraska State Fair contributions; disposition.

The Tax Commissioner shall determine the total amount of contributions designated pursuant to section 77-27,119.05 each year, and the State Treasurer shall transfer such amount from the General Fund to the State Fair Cash Fund.

Source:Laws 2003, LB 72, § 3.    


77-27,120. Income tax; Tax Commissioner; agreement with; effect.

(1) The Tax Commissioner, or any person authorized in writing by him, is authorized to enter into an agreement with any person relating to the liability of such person, or of the person or estate for whom he acts, in respect to the tax imposed by the provisions of the Nebraska Revenue Act of 1967 for any taxable period.

(2) Such agreement shall be final and conclusive, and, except upon a showing of fraud, malfeasance, or misrepresentation of a material fact:

(a) The case shall not be reopened as to matters agreed upon or the agreement modified by any officer, employee or agent of this state; and

(b) In any suit, action or proceeding under such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside or disregarded.

Source:Laws 1967, c. 487, § 120, p. 1631.


77-27,121. Income tax; Governor; Secretary of the Treasury; agreement.

The Governor, with the advice and consent of the Legislature, is authorized to enter into an agreement with the Secretary of the Treasury of the United States or his delegate under which, to the extent provided by the terms of the agreement, the secretary or his delegate will administer, enforce, and collect such income tax on behalf of the state. The cost of the services performed by the secretary or his delegate in administering, enforcing or collecting an income tax under the terms of such an agreement may be paid from the appropriations for the general operations of the Tax Commissioner.

Source:Laws 1967, c. 487, § 121, p. 1631.


77-27,122. Income tax; Governor; Secretary of the Treasury; agreement; costs; payment.

The Governor, with the advice and consent of the Legislature, is authorized to enter into an agreement with the Secretary of the Treasury of the United States or his delegate under which, to the extent provided by the terms of the agreement, the Governor or his delegate will undertake to conduct on behalf of the United States any administrative, enforcement or collection function in respect to the federal income tax. Such agreement shall make provision for the payment by the United States of the cost of the services performed on its behalf.

Source:Laws 1967, c. 487, § 122, p. 1631.


77-27,123. Income tax; service in armed forces; effect.

(1) The period of service in the armed forces of the United States in a combat zone plus any period of continuous hospitalization outside this state attributable to such service plus the next one hundred eighty days shall be disregarded in determining, under regulations to be promulgated by the Tax Commissioner, whether any act required by the provisions of the Nebraska Revenue Act of 1967 was performed by a taxpayer or his representative within the time prescribed therefor.

(2) In the case of any individual who dies while in active service as a member of the armed forces of the United States, if such death occurred while the individual was serving in a combat zone or as a result of wounds, disease, or injury incurred while so serving, the income tax imposed by the provisions of the Nebraska Revenue Act of 1967 shall not apply with respect to the taxable year in which falls the date of his death, or with respect to any prior taxable year ending on or after the first day he so served in a combat zone.

Source:Laws 1967, c. 487, § 123, p. 1632.


77-27,124. Repealed. Laws 1987, LB 6, § 3.

77-27,125. Tax, report, claim, notice, petition; mailing; postmark stamped; date of delivery.

If any tax, report, claim, statement, notice, petition, or other document including, to the extent authorized by the Tax Commissioner, a return of estimated tax, required to be filed within a prescribed period or on or before a prescribed date under the authority of any provision of the Nebraska Revenue Act of 1967 is, after such period or such date, delivered by United States mail to the Tax Commissioner, or the officer or person with which or with whom such document is required to be filed, the date of the United States postmark stamped on the envelope shall be deemed to be the date of delivery. This section shall apply only if the postmark date falls within the prescribed period or on or before the prescribed date for the filing of such document, determined with regard to any extension granted for such filing, and only if such document was deposited in the mail, postage prepaid, properly addressed to the Tax Commissioner. If any document is sent by United States registered mail, such registration shall be prima facie evidence that such document was delivered to the Tax Commissioner. To the extent that the Tax Commissioner shall prescribe by regulation, certified mail may be used in lieu of registered mail under this section. The provisions of this section shall apply in the case of postmarks not made by the United States post office only if and to the extent provided by regulations of the Tax Commissioner. When the last day prescribed under the authority of the Nebraska Revenue Act of 1967, including any extension of time, for performing any act falls on Saturday, Sunday, or a day considered a holiday by the Tax Commissioner's office, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a day considered a holiday by the Tax Commissioner's office. The Tax Commissioner shall, upon request, give a receipt for any document filed under the provisions of the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 125, p. 1632; Laws 1984, LB 962, § 33.    


77-27,126. Lists of taxpayers; other information; department provide; when.

The Department of Revenue shall not be required to provide lists of taxpayers or any other information from applications, returns, or other reports to any person except for statistical compilations and for the purposes of enforcing the tax laws of this state or when the department or the Tax Commissioner is specifically required to provide certain information under the laws of Nebraska.

Source:Laws 1991, LB 773, § 7.


77-27,127. Tax Commissioner; final action; appeal.

Any final action of the Tax Commissioner may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act. The appeal provided by this section shall be the exclusive remedy available to any taxpayer, and no other legal or equitable proceedings shall issue to prevent or enjoin the assessment or collection of any tax imposed under the Nebraska Revenue Act of 1967. The appeal provided by this section shall be in the district court for Lancaster County except as provided in section 77-2798.

Source:Laws 1967, c. 487, § 127, p. 1634; Laws 1983, LB 101, § 2;    Laws 1988, LB 352, § 159;    Laws 2005, LB 216, § 19.    


Cross References

Annotations

77-27,128. Judicial review; exclusive remedy.

The review provided by section 77-27,127 shall be the exclusive remedy available to any taxpayer for the review of the action in respect to the assessment of a proposed deficiency. No injunction or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this state or against any office of this state to prevent or enjoin the assessment or collection of any tax imposed under the provisions of the Nebraska Revenue Act of 1967.

Source:Laws 1967, c. 487, § 128, p. 1634; Laws 1983, LB 101, § 3.    


Annotations

77-27,129. Tax Commissioner; tax; deficiency; collection.

The Tax Commissioner may collect a deficiency notwithstanding that an application for review in respect of such deficiency has been made by the taxpayer, unless the taxpayer at or before the time his application for review is made, has paid the deficiency, or has deposited with the Tax Commissioner the amount of the deficiency or has filed with the Tax Commissioner a bond, in the amount of the deficiency being contested including interest and other amounts as well as all costs and charges which may accrue against him in the prosecution of the proceeding and issued by a person authorized under the laws of this state to act as surety, conditioned upon the payment of the deficiency including interest and other amounts as finally determined and such costs and charges.

Source:Laws 1967, c. 487, § 129, p. 1634.


77-27,130. Tax Commissioner; tax; deficiency; disallowed by court; effect; frivolous objections; damages.

(1) If the amount of a deficiency determined by the Tax Commissioner is disallowed in whole or in part by the court of review, the amount so disallowed shall be credited or refunded to the taxpayer without the making of a claim therefor or, if payment has not been made, shall be abated.

(2) If the deficiency determined by the Tax Commissioner is disallowed by the court of review, the taxpayer shall have his or her costs as they would be allowable under the provisions of section 77-27,129. If the deficiency is disallowed in part, the court in its discretion may award the taxpayer a proportionate part of his or her costs.

(3) An assessment of a proposed income deficiency by the Tax Commissioner shall become final upon the expiration of the period specified in section 77-2777 for filing a written protest against the proposed assessment if no such protest has been filed within the time provided or, if the protest provided in section 77-2778 has been filed, upon the expiration of time provided for filing a petition for judicial review, upon the final judgment of the reviewing court, or upon the rendering by the Tax Commissioner of a decision pursuant to the mandate of the reviewing court. Notwithstanding the foregoing, for the purpose of making a petition for the review of a determination of the Tax Commissioner, the determination shall be deemed final on the date the notice of decision is mailed to the taxpayer as provided in section 77-2779.

(4) If any person institutes proceedings merely for delay or raises frivolous objections to compliance with the Nebraska Revenue Act of 1967, the Tax Commissioner may apply to a judge of the district court for the county where such person resides for damages in an amount not in excess of five thousand dollars for each tax year to be awarded to the State of Nebraska for expenses incurred by the Tax Commissioner in securing compliance. Damages so awarded by the court shall be payable upon notice and demand by the Tax Commissioner and shall be collected in the same manner as delinquent taxes under such act.

Source:Laws 1967, c. 487, § 130, p. 1635; Laws 1984, LB 962, § 34;    Laws 2012, LB727, § 43.    


77-27,131. Tax Commissioner; security required; when; sale of security; notice.

(1) Unless otherwise specifically provided, the Tax Commissioner, whenever he or she deems it necessary to insure compliance with the provisions of the Nebraska Revenue Act of 1967, may require any person subject to the act to place with him or her such security as he or she may determine. The amount of the necessary security shall be fixed by the Tax Commissioner but, except as provided in this section, shall not be greater than three times the estimated average amount payable for the reporting period by such persons pursuant to the act. In the case of persons habitually delinquent in their obligations under the act, the amount of the security shall not be greater than five times the estimated average amount payable for the reporting period by such persons pursuant to the act. The amount of the security may be increased or decreased by the Tax Commissioner at any time, subject to the limitations set forth in this subsection.

(2) The Tax Commissioner may sell the security at public auction or, in the case of security in the form of bearer bonds issued by the United States or this state which have a prevailing market price, at a private sale at a price not lower than the prevailing market price if it becomes necessary to make such sale in order to recover any tax, interest, or penalties due on any amount required to be collected. Notice of the sale shall be given to the person who deposited the security at least ten days before the sale. The notice may be given personally or by mail addressed to the person at the address furnished to the Tax Commissioner and as it appears in the records of the Tax Commissioner. Upon such sale, any surplus above the amounts due shall be returned to the person who placed the security.

Source:Laws 1967, c. 487, § 131, p. 1636; Laws 1991, LB 773, § 20; Laws 2007, LB223, § 15.    


77-27,132. Revenue Distribution Fund; created; use; collections under act; disposition.

(1) There is hereby created a fund to be designated the Revenue Distribution Fund which shall be set apart and maintained by the Tax Commissioner. Revenue not required to be credited to the General Fund or any other specified fund may be credited to the Revenue Distribution Fund. Credits and refunds of such revenue shall be paid from the Revenue Distribution Fund. The balance of the amount credited, after credits and refunds, shall be allocated as provided by the statutes creating such revenue.

(2) The Tax Commissioner shall pay to a depository bank designated by the State Treasurer all amounts collected under the Nebraska Revenue Act of 1967. The Tax Commissioner shall present to the State Treasurer bank receipts showing amounts so deposited in the bank, and of the amounts so deposited the State Treasurer shall:

(a) For transactions occurring on or after October 1, 2014, and before October 1, 2027, credit to the Game and Parks Commission Capital Maintenance Fund all of the proceeds of the sales and use taxes imposed pursuant to section 77-2703 on the sale or lease of motorboats as defined in section 37-1204, personal watercraft as defined in section 37-1204.01, all-terrain vehicles as defined in section 60-103, and utility-type vehicles as defined in section 60-135.01;

(b) Credit to the Highway Trust Fund all of the proceeds of the sales and use taxes derived from the sale or lease for periods of more than thirty-one days of motor vehicles, trailers, and semitrailers, except that the proceeds equal to any sales tax rate provided for in section 77-2701.02 that is in excess of five percent derived from the sale or lease for periods of more than thirty-one days of motor vehicles, trailers, and semitrailers shall be credited to the Highway Allocation Fund;

(c) For transactions occurring on or after July 1, 2013, and before July 1, 2042, of the proceeds of the sales and use taxes derived from transactions other than those listed in subdivisions (2)(a), (b), and (e) of this section from a sales tax rate of one-quarter of one percent, credit monthly eighty-five percent to the Highway Trust Fund and fifteen percent to the Highway Allocation Fund;

(d) Of the proceeds of the sales and use taxes derived from transactions other than those listed in subdivisions (2)(a), (b), and (e) of this section, credit to the Property Tax Credit Cash Fund the amount certified under section 77-27,237, if any such certification is made; and

(e) For transactions occurring on or after July 1, 2023, credit to the Department of Transportation Aeronautics Capital Improvement Fund all of the proceeds of the sales and use taxes imposed pursuant to section 77-2703 on the sale or lease of aircraft as defined in section 3-101.

The balance of all amounts collected under the Nebraska Revenue Act of 1967 shall be credited to the General Fund.

Source:Laws 1967, c. 487, § 132, p. 1636; Laws 1969, c. 695, § 1, p. 2692; Laws 1969, c. 313, § 2, p. 1130; Laws 1971, LB 53, § 9;    Laws 1972, LB 343, § 23;    Laws 1975, LB 233, § 2;    Laws 1976, LB 868, § 1; Laws 1984, LB 466, § 5;    Laws 1986, LB 599, § 23;    Laws 1986, LB 539, § 3;    Laws 1987, LB 730, § 30;    Laws 1989, LB 258, § 11;    Laws 2003, LB 759, § 22;    Laws 2006, LB 904, § 4;    Laws 2007, LB305, § 1;    Laws 2011, LB84, § 6;    Laws 2014, LB814, § 11;    Laws 2015, LB200, § 2;    Laws 2017, LB331, § 42;    Laws 2021, LB595, § 10;    Laws 2023, LB727, § 73.    
Operative Date: June 7, 2023


77-27,132.01. Tax Refund Fund balance; transfer; allocation.

The balance of the Tax Refund Fund shall, on June 30, 1989, be transferred by the State Treasurer to the Revenue Distribution Fund and shall be allocated as required by the sections crediting amounts to the Tax Refund Fund prior to such date.

Source:Laws 1989, LB 258, § 13.    


77-27,133. Nonresident; deficiency; action; process.

Unless otherwise specifically provided for in the Nebraska Revenue Act of 1967, a deficiency assessed against a person not within this state may be prosecuted by an action in any court in this state having jurisdiction of the subject matter, and the court shall have in personam jurisdiction of such person in any such action for taxes imposed and assessed under the provisions of such act.

Source:Laws 1967, c. 487, § 133, p. 1637; Laws 1983, LB 447, § 91.    


77-27,134. Tax Commissioner; destroy obsolete returns, when.

Unless specifically provided for in the Nebraska Revenue Act of 1967, after any period of limitations fixed by such act, the Tax Commissioner may destroy obsolete returns.

Source:Laws 1967, c. 487, § 134, p. 1637.


77-27,135. Notice; how given.

Whenever any notice required to be given by the Tax Commissioner under the provisions of the Nebraska Revenue Act of 1967 may be given by mail, it shall be given by first-class, registered, or certified mail, return receipt requested.

Source:Laws 1967, c. 487, § 135, p. 1637; Laws 2012, LB727, § 44.    


77-27,135.01. Court ruling of unconstitutionality; effect.

Any decision by a court of competent jurisdiction that a tax exemption or reduction or other special preference provided to an activity by the Nebraska Revenue Act of 1967 is unconstitutional for any reason shall result in the prospective or retroactive taxation of such activity and not the nontaxation of other activity.

Source:Laws 1994, LB 938, § 2.    


77-27,136. Repealed. Laws 2011, LB 383, § 9.

77-27,137. Repealed. Laws 2009, LB 218, § 14.

77-27,137.01. Repealed. Laws 2011, LB 383, § 9.

77-27,137.02. Repealed. Laws 2011, LB 383, § 9.

77-27,137.03. Repealed. Laws 2011, LB 383, § 9.

77-27,138. Repealed. Laws 1971, LB 707, § 4.

77-27,138.01. Repealed. Laws 2004, LB 811, § 3.

77-27,139. Repealed. Laws 2011, LB 383, § 9.

77-27,139.01. Aid to municipalities; Municipal Equalization Fund; created; use; investment.

The Municipal Equalization Fund is hereby created. The fund shall be used to provide state aid to equalize the property tax capacity of incorporated cities. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1996, LB 1177, § 1.    


Cross References

77-27,139.02. Aid to municipalities; terms, defined.

For purposes of sections 77-27,139.01 to 77-27,139.04:

(1) Average per capita property tax levy means the total property taxes levied by all incorporated municipalities in each population group for the immediately preceding fiscal year, except for the amount of property tax levies committed to provide for principal and interest payments on the indebtedness of all incorporated municipalities, divided by the current population of all incorporated municipalities as certified by the Department of Revenue pursuant to section 77-3,119. The average per capita property tax levy shall be calculated separately for each population group;

(2) Average property tax levy means the total property taxes levied by all incorporated municipalities for the prior year, except for the amount of property tax levies committed to provide for principal and interest payments on the indebtedness of all incorporated municipalities, divided by the total amount of valuation subject to property tax in all incorporated municipalities for the immediately preceding fiscal year;

(3) Population means the population of a municipality as determined in section 77-3,119; and

(4) Population group means one of three groupings of municipalities for which the aid established by sections 77-27,139.01 to 77-27,139.04 is calculated based on the average per capita property tax levy calculated separately for each group. The three population groups shall be (a) municipalities with a population of five thousand inhabitants or more, (b) municipalities with a population between eight hundred and five thousand inhabitants, and (c) municipalities with a population of eight hundred inhabitants or less.

Source:Laws 1996, LB 1177, § 2;    Laws 1997, LB 269, § 54;    Laws 2011, LB383, § 3.    


77-27,139.03. Aid to municipalities; calculation of state aid.

(1) State aid provided to municipalities pursuant to sections 77-27,139.01 to 77-27,139.04 shall be calculated by determining the average property tax levy for operational purposes other than for principal and interest payments on the indebtedness of all incorporated municipalities. The Auditor of Public Accounts shall provide to the Department of Revenue a list of the bond and nonbond tax request amounts from the most recent budgets filed by incorporated municipalities. The information shall be used to calculate the bond and nonbond tax levies for aid purposes under this section. The auditor shall provide the information to the department by February 1 each year.

(2) Each municipality shall receive state aid from the Municipal Equalization Fund equal to (a) the product of the average per capita property tax of the appropriate population group multiplied by the current population of the municipality minus (b) the product of the average property tax levy multiplied by the certified valuation within the incorporated municipality, except that a municipality shall not receive any aid under this section if the calculation results in a negative number.

(3) If a municipal tax levy for operational purposes was less than the average property tax levy in the immediately preceding fiscal year, the state aid provided to such municipality shall be reduced by twenty percent for each one-cent increment the levy was below the average property tax levy but the reduction shall not exceed eighty percent.

(4) If the amount of money in the Municipal Equalization Fund is less than the total amount of state aid for all municipalities as required by the allocation formula in subsection (2) of this section, the money in the fund shall be allocated on a prorated basis to such municipalities. If the amount of money in the fund is more than the total amount of state aid for municipalities as required by the allocation formula, the excess money in the fund shall be credited to the General Fund.

Source:Laws 1996, LB 1177, § 3;    Laws 1997, LB 269, § 55;    Laws 1998, LB 989, § 5;    Laws 1999, LB 141, § 10;    Laws 2000, LB 968, § 72;    Laws 2003, LB 622, § 1;    Laws 2011, LB383, § 4;    Laws 2012, LB1114, § 1.    


77-27,139.04. Aid to municipalities; funds; how distributed.

The Department of Revenue shall determine the amount to be distributed to the various municipalities and certify such amounts by voucher to the Director of Administrative Services. The Municipal Equalization Fund shall be distributed on or before the first day of October, January, April, and July of each state fiscal year beginning in fiscal year 1998-99. The director shall, upon receipt of such notification and vouchers, pay the amounts electronically from funds appropriated. The proceeds of the payments received by the various municipalities shall be credited to the general fund of the municipality.

Source:Laws 1996, LB 1177, § 4;    Laws 2021, LB509, § 12.    


77-27,140. Repealed. Laws 1992, LB 1063, § 213; Laws 1992, Second Spec. Sess., LB 1, § 181.

77-27,141. Repealed. Laws 1972, LB 1044, § 1.

77-27,142. Incorporated municipalities; sales and use tax; authorized; election.

(1) Any incorporated municipality other than a city of the metropolitan class by ordinance of its governing body is hereby authorized to impose a sales and use tax of one-half percent, one percent, one and one-half percent, one and three-quarters percent, or two percent upon the same transactions that are sourced under the provisions of sections 77-2703.01 to 77-2703.04 within such incorporated municipality on which the State of Nebraska is authorized to impose a tax pursuant to the Nebraska Revenue Act of 1967, as amended from time to time. Any city of the metropolitan class by ordinance of its governing body is hereby authorized to impose a sales and use tax of one-half percent, one percent, or one and one-half percent upon the same transactions that are sourced under the provisions of sections 77-2703.01 to 77-2703.04 within such city of the metropolitan class on which the State of Nebraska is authorized to impose a tax pursuant to the Nebraska Revenue Act of 1967, as amended from time to time. No sales and use tax shall be imposed pursuant to this section until an election has been held and a majority of the qualified electors have approved such tax pursuant to sections 77-27,142.01 and 77-27,142.02.

(2)(a) Any incorporated municipality that proposes to impose a municipal sales and use tax at a rate greater than one and one-half percent or increase a municipal sales and use tax to a rate greater than one and one-half percent shall submit the question of such tax or increase at a primary or general election held within the incorporated municipality. The question shall be submitted upon an affirmative vote by at least seventy percent of all of the members of the governing body of the incorporated municipality.

(b) Any rate greater than one and one-half percent shall be used as follows:

(i) In a city of the primary class, up to fifteen percent of the proceeds from the rate in excess of one and one-half percent may be used for non-public infrastructure projects of an interlocal agreement or joint public agency agreement with another political subdivision within the municipality or the county in which the municipality is located, and the remaining proceeds shall be used for public infrastructure projects or voter-approved infrastructure related to an economic development program as defined in section 18-2705; and

(ii) In any incorporated municipality other than a city of the primary class, the proceeds from the rate in excess of one and one-half percent shall be used for public infrastructure projects or voter-approved infrastructure related to an economic development program as defined in section 18-2705.

For purposes of this section, public infrastructure project means and includes, but is not limited to, any of the following projects, or any combination thereof: Public highways and bridges and municipal roads, streets, bridges, and sidewalks; solid waste management facilities; wastewater, storm water, and water treatment works and systems, water distribution facilities, and water resources projects, including, but not limited to, pumping stations, transmission lines, and mains and their appurtenances; hazardous waste disposal systems; resource recovery systems; airports; port facilities; buildings and capital equipment used in the operation of municipal government; convention and tourism facilities; redevelopment projects as defined in section 18-2103; mass transit and other transportation systems, including parking facilities; and equipment necessary for the provision of municipal services.

(c) Any rate greater than one and one-half percent shall terminate no more than ten years after its effective date or, if bonds are issued and the local option sales and use tax revenue is pledged for payment of such bonds, upon payment of such bonds and any refunding bonds, whichever date is later, except as provided in subdivision (2)(d) of this section.

(d) If a portion of the rate greater than one and one-half percent is stated in the ballot question as being imposed for the purpose of the interlocal agreement or joint public agency agreement described in subdivision (2)(b)(i) or subsection (3) of this section, and such portion is at least one-eighth percent, there shall be no termination date for the rate representing such portion rounded to the next higher one-quarter or one-half percent.

(e) Sections 13-518 to 13-522 apply to the revenue from any such tax or increase.

(3)(a) No municipal sales and use tax shall be imposed at a rate greater than one and one-half percent or increased to a rate greater than one and one-half percent unless the municipality is a party to an interlocal agreement pursuant to the Interlocal Cooperation Act or a joint public agency agreement pursuant to the Joint Public Agency Act with a political subdivision within the municipality or the county in which the municipality is located creating a separate legal or administrative entity relating to a public infrastructure project.

(b) Except as provided in subdivision (2)(b)(i) of this section, such interlocal agreement or joint public agency agreement shall contain provisions, including benchmarks, relating to the long-term development of unified governance of public infrastructure projects with respect to the parties. The Legislature may provide additional requirements for such agreements, including benchmarks, but such additional requirements shall not apply to any debt outstanding at the time the Legislature enacts such additional requirements. The separate legal or administrative entity created shall not be one that was in existence for one calendar year preceding the submission of the question of such tax or increase at a primary or general election held within the incorporated municipality.

(c) Any other public agency as defined in section 13-803 may be a party to such interlocal cooperation agreement or joint public agency agreement.

(d) A municipality is not required to use all of the additional revenue generated by a sales and use tax imposed at a rate greater than one and one-half percent or increased to a rate greater than one and one-half percent under this subsection for the purposes of the interlocal cooperation agreement or joint public agency agreement set forth in this subsection.

(4) The provisions of subsections (2) and (3) of this section do not apply to the first one and one-half percent of a sales and use tax imposed by a municipality.

(5) Notwithstanding any provision of any municipal charter, any incorporated municipality or interlocal agency or joint public agency pursuant to an agreement as provided in subsection (3) of this section may issue bonds in one or more series for any municipal purpose and pay the principal of and interest on any such bonds by pledging receipts from the increase in the municipal sales and use taxes authorized by such municipality. Any municipality which has or may issue bonds under this section may dedicate a portion of its property tax levy authority as provided in section 77-3442 to meet debt service obligations under the bonds. For purposes of this subsection, bond means any evidence of indebtedness, including, but not limited to, bonds, notes including notes issued pending long-term financing arrangements, warrants, debentures, obligations under a loan agreement or a lease-purchase agreement, or any similar instrument or obligation.

Source:Laws 1969, c. 629, § 1, p. 2530; Laws 1978, LB 394, § 1;    Laws 1978, LB 902, § 1;    Laws 1979, LB 365, § 1;    Laws 1981, LB 40, § 1;    Laws 1985, LB 116, § 1;    Laws 1986, LB 890, § 1;    Laws 2003, LB 282, § 80;    Laws 2012, LB357, § 1;    Laws 2013, LB104, § 1.    


Cross References

Annotations

77-27,142.01. Incorporated municipalities; sales and use tax; modification; election required, when.

(1) The governing body of any incorporated municipality may submit the question of changing any terms and conditions of a sales and use tax previously authorized under section 77-27,142. Except as otherwise provided by section 77-27,142, the question of modification shall be submitted to the voters at any primary or general election or at a special election if the governing body submits a certified copy of the resolution proposing modification to the election commissioner or county clerk within the time prior to the primary, general, or special election prescribed in section 77-27,142.02.

(2) If the change imposes a sales and use tax at a rate greater than one and one-half percent or increases the sales and use tax to a rate greater than one and one-half percent, the question shall include, but not be limited to:

(a) The percentage increase of one-quarter percent or one-half percent in the sales and use tax rate;

(b) A list of reductions or elimination of other taxes or fees, if any;

(c) A description of the projects to be funded, in whole or in part, from the revenue collected, along with any savings or efficiencies resulting from the projects;

(d) The year or years within which the revenue will be collected and, if bonds will be issued with some or all of the revenue pledged for payment of such bonds, a statement that the revenue will be collected until the payment in full of such bonds and any refunding bonds; and

(e)(i) The percentage of revenue collected to be used for the purposes of the interlocal agreement or joint public agency agreement as provided in subdivision (2)(b)(i) or subsection (3) of section 77-27,142; (ii) a statement of the overall purpose of the agreement which is the long-term development of unified governance of public infrastructure projects, if applicable; and (iii) the name of any other political subdivision which is a party to the agreement.

This subsection does not apply to the first one and one-half percent of a sales and use tax imposed by a municipality.

Source:Laws 1978, LB 394, § 2;    Laws 1997, LB 182A, § 7;    Laws 2009, LB501, § 4;    Laws 2012, LB357, § 2;    Laws 2013, LB104, § 2.    


77-27,142.02. Incorporated municipalities; sales and use tax; election; question; effect.

Except as otherwise provided by subsection (2) of section 77-27,142, the power granted by section 77-27,142 shall not be exercised unless and until the question has been submitted at a primary, general, or special election held within the incorporated municipality and in which all qualified electors shall be entitled to vote on such question. The officials of the incorporated municipality shall order the submission of the question by submitting a certified copy of the resolution proposing the tax to the election commissioner or county clerk by March 1 for a primary election, by September 1 for a general election, or at least fifty days before a special election. Except as otherwise provided by subsection (2) of section 77-27,142.01, the question may include any terms and conditions set forth in the resolution proposing the tax, such as a termination date or the specific project or program for which the revenue received from such tax will be allocated, and shall include the following language: Shall the governing body of the incorporated municipality impose a sales and use tax upon the same transactions within such municipality on which the State of Nebraska is authorized to impose a tax? If a majority of the votes cast upon such question shall be in favor of such tax, then the governing body of such incorporated municipality shall be empowered as provided by section 77-27,142 and shall forthwith proceed to impose a tax pursuant to the Local Option Revenue Act. If a majority of those voting on the question shall be opposed to such tax, then the governing body of the incorporated municipality shall not impose such a tax.

Source:Laws 1978, LB 394, § 3;    Laws 1985, LB 116, § 2;    Laws 1986, LB 890, § 2;    Laws 2009, LB501, § 5;    Laws 2012, LB357, § 3.    


77-27,142.03. Incorporated municipality; sales and use tax; petition to submit question.

(1) If the qualified electors of any municipality, equal in number to at least ten percent of the votes cast at the last preceding municipal election, petition the governing body to submit the question at least seventy-five days before the next primary, general, or special election, the governing body shall submit the question at the next primary, general, or special election.

(2) The question of imposing a sales and use tax which has been submitted to the electors and failed shall not be submitted to the electors of an incorporated municipality again until twenty-three months after such failure.

Source:Laws 1978, LB 394, § 4;    Laws 1986, LB 890, § 3;    Laws 1994, LB 1175, § 3;    Laws 2009, LB501, § 6.    


Annotations

77-27,142.04. Incorporated municipality; sales and use tax; election; notice.

The governing body shall give notice of the submission of the question of imposing the sales and use tax upon the same transactions within such municipality on which the State of Nebraska is authorized to impose a tax, not more than thirty days nor less than ten days previous to the election, by publication one time in one or more newspapers published in or of general circulation in the municipality in which such question is to be submitted. Such notice shall be in addition to any other notice required under the general election laws of this state.

Source:Laws 1978, LB 394, § 5.    


77-27,142.05. Incorporated municipality; sales and use tax; previously authorized; continuation without election.

Any incorporated municipality which had, prior to January 1, 1978, authorized a sales and use tax pursuant to section 77-27,142 may continue the tax without submitting the question of continuing such tax to a vote of the qualified electors.

Source:Laws 1978, LB 394, § 6.    


77-27,143. Municipalities; sales and use tax laws; administration; termination; databases; required.

(1) The administration of all sales and use taxes adopted under the Local Option Revenue Act shall be by the Tax Commissioner who may prescribe forms and adopt and promulgate reasonable rules and regulations in conformity with the act for the making of returns and for the ascertainment, assessment, and collection of taxes imposed under such act. The incorporated municipality shall furnish a certified copy of the adopting or repealing ordinance to the Tax Commissioner in accordance with such rules and regulations as he or she may adopt and promulgate. For ordinances passed after October 1, 1969, the effective date shall be the first day of the next calendar quarter which is at least one hundred twenty days following receipt by the Tax Commissioner of the certified copy of the ordinance. The Tax Commissioner shall provide at least sixty days' notice of the change in tax to retailers. Notice shall be provided to retailers within the municipality. Notice to retailers may be provided through the website of the Department of Revenue or by other electronic means.

(2) For ordinances containing a termination date and passed after October 1, 1986, the termination date shall be the first day of a calendar quarter. The incorporated municipality shall furnish a certified statement to the Tax Commissioner no more than one hundred eighty days and at least one hundred twenty days prior to the termination date that the termination date stated in the ordinance is still valid. If the certified statement is not furnished within the prescribed time, the tax shall remain in effect, and the Tax Commissioner shall continue to collect the tax until the first day of the calendar quarter which is at least one hundred twenty days after receipt of the certified statement notwithstanding the termination date stated in the ordinance. The Tax Commissioner shall provide at least sixty days' notice of the termination of the tax to retailers. Notice shall be provided to retailers within the municipality. Notice to retailers may be provided through the website of the department or by other electronic means.

(3) For sales and use tax purposes only, local jurisdiction boundary changes apply only on the first day of a calendar quarter after a minimum of one hundred twenty days' notice to the Tax Commissioner and sixty days' notice to sellers.

(4) The state shall provide and maintain a database that describes boundary changes for all local taxing jurisdictions. This database shall include a description of any change and the effective date of the change for sales and use tax purposes.

(5) The state shall provide and maintain a database of all sales and use tax rates for all of the local jurisdictions levying taxes within the state. For the identification of counties, cities, and villages, codes corresponding to the rates shall be provided according to Federal Information Processing Standards as developed by the National Institute of Standards and Technology.

(6) The state shall provide and maintain a database that assigns each five-digit and nine-digit zip code within the state to the proper tax rates and jurisdictions. For purposes of the streamlined sales and use tax agreement, the database shall apply the lowest combined tax rate imposed in the zip code area if the area includes more than one tax rate in any level of taxing jurisdictions. If a nine-digit zip code designation is not available for a street address or if a seller is unable to determine the nine-digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the seller or certified service provider may apply the rate for the five-digit zip code area. For purposes of this section, there is a rebuttable presumption that a seller or certified service provider has exercised due diligence if the seller has attempted to determine the nine-digit zip code designation by utilizing software approved by the governing board that makes this designation from the street address and the five-digit zip code applicable to a purchase.

(7) For purposes of the streamlined sales and use tax agreement, the state may provide address-based boundary database records for assigning taxing jurisdictions and their associated rates which shall be in addition to the requirements of subsection (6) of this section. The database records shall be in the same approved format as the database records pursuant to subsection (6) of this section and shall meet the requirements developed pursuant to the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. 119(a), as such act existed on January 1, 2003. The governing board may allow a member state to require sellers that register under the agreement to use an address-based boundary database provided by that member state. If any member state develops an address-based boundary database pursuant to the agreement, a seller or certified service provider may use those database records in place of the five-digit and nine-digit zip code database records provided for in subsection (6) of this section. If a seller or certified service provider is unable to determine the applicable rate and jurisdiction using an address-based boundary database after exercising due diligence, the seller or certified service provider may apply the nine-digit zip code designation applicable to a purchase. If a nine-digit zip code designation is not available for a street address or if a seller or certified service provider is unable to determine the nine-digit zip code designation applicable to a purchase after exercising due diligence to determine the designation, the seller or certified service provider may apply the rate for the five-digit zip code area. For the purposes of this section, there is a rebuttable presumption that a seller or certified service provider has exercised due diligence if the seller or certified service provider has attempted to determine the tax rate and jurisdiction by utilizing software approved by the governing board that makes this assignment from the address and zip code information applicable to the purchase.

(8) The state may certify vendor-provided address-based boundary databases for assigning tax rates and jurisdictions. The databases shall be in the same approved format as the database records pursuant to subsection (7) of this section and shall meet the requirements developed pursuant to the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. 119(a) as such act existed on January 1, 2003. If a state certifies a vendor-provided address-based boundary database, a seller or certified service provider may use that database in place of the database provided for in subsection (6) or (7) of this section. Vendors providing address-based boundary databases may request certification of their databases from the governing board. Certification by the governing board does not replace the requirement that the databases be certified by the states individually.

(9) Pursuant to the streamlined sales and use tax agreement, the state shall relieve retailers and certified service providers using databases pursuant to subsection (6) or (7) of this section from liability to the state and local jurisdictions for having charged and collected the incorrect amount of sales or use tax resulting from the retailer or certified service provider relying on erroneous data provided by a member state on tax rates, boundaries, or taxing jurisdiction assignments. After providing adequate notice determined by the governing board, a member state that provides an address-based boundary database for assigning taxing jurisdictions pursuant to subsection (7) or (8) of this section may cease providing liability relief for errors resulting from the reliance on the database provided by the member state under the provisions of subsection (6) of this section. If a seller demonstrates that requiring the use of the address-based boundary database would create an undue hardship, the state and the governing board may extend the relief of liability to such seller for a designated period of time.

(10) The databases provided for in this section shall be in a downloadable format approved by the governing board pursuant to the streamlined sales and use tax agreement. The databases may be directly provided by the state or provided by a vendor as designated by the state. A database provided by a vendor as designated by a state shall be applicable to and subject to all provisions of this section. The databases shall be provided at no cost to the user of the database. The provisions of subsections (6) and (7) of this section do not apply when the purchased product is received by the purchaser at the business location of the seller.

(11) A seller that did not have a requirement to register in this state prior to registering pursuant to the agreement or a certified service provider shall not be required to collect sales or use taxes for a state until the first day of the calendar quarter commencing more than sixty days after the state has provided the databases required by this section.

Source:Laws 1969, c. 629, § 2, p. 2530; Laws 1969, c. 683, § 8, p. 2644; Laws 1986, LB 890, § 4;    Laws 2003, LB 282, § 81;    Laws 2003, LB 381, § 4;    Laws 2005, LB 274, § 277;    Laws 2006, LB 887, § 5;    Laws 2011, LB211, § 7.    


Annotations

77-27,144. Municipalities; sales and use tax; Tax Commissioner; collection; distribution; refunds; notice; deductions; qualifying business; duty to provide information.

(1) The Tax Commissioner shall collect the tax imposed by any incorporated municipality concurrently with collection of a state tax in the same manner as the state tax is collected. The Tax Commissioner shall remit monthly the proceeds of the tax to the incorporated municipalities levying the tax, after deducting the amount of refunds made and three percent of the remainder to be credited to the Municipal Equalization Fund.

(2)(a) Deductions for a refund made pursuant to section 77-4105, 77-4106, 77-5725, or 77-5726 and owed by a city of the first class, city of the second class, or village shall be delayed for one year after the refund has been made to the taxpayer. The Department of Revenue shall notify the municipality liable for a refund exceeding one thousand five hundred dollars of the pending refund, the amount of the refund, and the month in which the deduction will be made or begin, except that if the amount of a refund claimed under section 77-4105, 77-4106, 77-5725, or 77-5726 exceeds twenty-five percent of the municipality's total sales and use tax receipts, net of any refunds or sales tax collection fees, for the municipality's prior fiscal year, the department shall deduct the refund over the period of one year in equal monthly amounts beginning after the one-year notification period required by this subdivision.

(b) Deductions for a refund made pursuant to section 77-4105, 77-4106, 77-5725, or 77-5726 and owed by a city of the metropolitan class or city of the primary class shall be made as follows:

(i) During calendar year 2023, such deductions shall be made in accordance with subsection (1) of this section; and

(ii) During calendar year 2024 and each calendar year thereafter, such deductions shall be made based on estimated amounts as described in this subdivision. On or before March 1, 2023, and on or before March 1 of each year thereafter, the Department of Revenue shall notify each city of the metropolitan class and city of the primary class of the total amount of such refunds that are estimated to be paid during the following calendar year. Such estimated amount shall be used to establish the total amount to be deducted in the following calendar year. The department shall deduct such amount over the following calendar year in twelve equal monthly amounts. Beginning with the notification sent in calendar year 2025, the notification shall include any adjustment needed for the prior calendar year to account for any difference between the estimated amount deducted in such prior calendar year and the actual amount of refunds paid in such year.

(3) Deductions for a refund made pursuant to the ImagiNE Nebraska Act shall be delayed as provided in this subsection after the refund has been made to the taxpayer. The Department of Revenue shall notify each municipality liable for a refund exceeding one thousand five hundred dollars of the pending refund and the amount of the refund claimed under the ImagiNE Nebraska Act. The notification shall be made by March 1 of each year beginning in 2021 and shall be used to establish the refund amount for the following calendar year. The notification shall include any excess or underpayment from the prior calendar year. The department shall deduct the refund over a period of one year in equal monthly amounts beginning in January following the notification. This subsection applies to total annual refunds exceeding one million dollars or twenty-five percent of the municipality's total sales and use tax receipts for the prior fiscal year, whichever is the lesser amount.

(4) Deductions for a refund made pursuant to the Urban Redevelopment Act shall be delayed as provided in this subsection after the refund has been made to the taxpayer. The Department of Revenue shall notify each municipality liable for a refund exceeding one thousand five hundred dollars of the pending refund and the amount of the refund claimed under the Urban Redevelopment Act. The notification shall be made by March 1 of each year beginning in 2022 and shall be used to establish the refund amount for the following calendar year. The notification shall include any excess or underpayment from the prior calendar year. The department shall deduct the refund over a period of one year in equal monthly amounts beginning in January following the notification. This subsection applies to total annual refunds exceeding one million dollars or twenty-five percent of the municipality's total sales and use tax receipts for the prior fiscal year, whichever is the lesser amount.

(5) The Tax Commissioner shall keep full and accurate records of all money received and distributed under the provisions of the Local Option Revenue Act. When proceeds of a tax levy are received but the identity of the incorporated municipality which levied the tax is unknown and is not identified within six months after receipt, the amount shall be credited to the Municipal Equalization Fund. The municipality may request the names and addresses of the retailers which have collected the tax as provided in subsection (13) of section 77-2711 and may certify an individual to request and review confidential sales and use tax returns and sales and use tax return information as provided in subsection (14) of section 77-2711.

(6)(a) Every qualifying business that has filed an application to receive tax incentives under the Employment and Investment Growth Act, the Nebraska Advantage Act, the ImagiNE Nebraska Act, or the Urban Redevelopment Act shall, with respect to such acts, provide annually to each municipality, in aggregate data, the maximum amount the qualifying business is eligible to receive in the current year in refunds of local sales and use taxes of the municipality and exemptions for the previous year, and the estimate of annual refunds of local sales and use taxes of the municipality and exemptions such business intends to claim in each future year. Such information shall be kept confidential by the municipality unless publicly disclosed previously by the taxpayer or by the State of Nebraska.

(b) For purposes of this subsection, municipality means a municipality that has adopted the local option sales and use tax under the Local Option Revenue Act and to which the qualifying business has paid such sales and use tax.

(c) The qualifying business shall provide the information to the municipality on or before June 30 of each year.

(d) Any amounts held by a municipality to make sales and use tax refunds under the Employment and Investment Growth Act, the Nebraska Advantage Act, the ImagiNE Nebraska Act, and the Urban Redevelopment Act shall not count toward any budgeted restricted funds limitation as provided in section 13-519 or toward any cash reserve limitation as provided in section 13-504.

Source:Laws 1969, c. 629, § 3, p. 2530; Laws 1971, LB 53, § 10;    Laws 1976, LB 868, § 2; Laws 1996, LB 1177, § 19;    Laws 1998, LB 1104, § 13;    Laws 2007, LB94, § 2;    Laws 2012, LB209, § 2;    Laws 2014, LB867, § 16;    Laws 2014, LB1067, § 1;    Laws 2020, LB1107, § 134;    Laws 2021, LB544, § 33;    Laws 2022, LB1150, § 3.    


Cross References

77-27,145. Municipalities; sales and use tax; claims; remedies.

Upon any claim of illegal assessment and collection, the taxpayer shall have the same remedies provided for claims of illegal assessment and collection of the state tax, it being the intention of the Legislature that the provisions of law which apply to the recovery of state taxes illegally assessed and collected apply to the recovery of taxes illegally assessed and collected under the authority of sections 77-27,142 to 77-27,148.

Source:Laws 1969, c. 629, § 4, p. 2530.


77-27,146. Municipalities; sales and use tax; disposition.

The proceeds of the tax levied by an incorporated municipality under the authority of sections 77-27,142 to 77-27,148 shall be distributed to the incorporated municipality for deposit in its general fund.

Source:Laws 1969, c. 629, § 5, p. 2531.


77-27,147. Municipalities; sales and use tax; laws governing; source of transactions.

All relevant provisions of the Nebraska Revenue Act of 1967, as amended from time to time, and not inconsistent with the Local Option Revenue Act, shall govern transactions, proceedings, and activities pursuant to any tax imposed under the Local Option Revenue Act.

For purposes of the Local Option Revenue Act, all retail sales, rentals, and leases, as defined and described in the Nebraska Revenue Act of 1967, shall be sourced according to the provisions of sections 77-2703.01 to 77-2703.04.

Source:Laws 1969, c. 629, § 6, p. 2531; Laws 1969, c. 683, § 9, p. 2644; Laws 1986, LB 1027, § 210;    Laws 1992, LB 871, § 64;    Laws 1994, LB 123, § 25;    Laws 1994, LB 994, § 2;    Laws 1994, LB 1207, § 17;    Laws 1995, LB 17, § 2;    Laws 2002, LB 947, § 5;    Laws 2003, LB 282, § 82.    


Cross References

77-27,148. Act, how cited.

Sections 77-27,142 to 77-27,148 may be cited as the Local Option Revenue Act.

Source:Laws 1969, c. 629, § 8, p. 2531.


77-27,149. Terms, defined.

As used in sections 77-27,149 to 77-27,155 unless the context otherwise requires:

(1) Facility shall mean any system, equipment or apparatus, or disposal system, including disposal wells, or any treatment works, appliance, equipment, machinery or installation constructed, used or placed in operation primarily for the purpose of reducing, controlling or eliminating air or water pollution caused by industrial or agricultural waste, including the generation of electricity; Provided, that facilities such as air conditioners, dust collectors, filters, fans, and similar facilities designed, constructed or installed solely for the benefit of the person for whom installed or the personnel of such person, and facilities designed or installed for the reduction or control of automobile exhaust emissions shall not be deemed air pollution control facilities for purposes of this subdivision;

(2) Industrial or agricultural waste shall mean any liquid, gaseous or solid waste substance resulting from any process of industry, manufacture, trade or business, including the generation of electricity, or from the development, processing or recovery of any paper or wood which is capable of polluting the air or waters of this state;

(3) Treatment works shall mean any plant, pumping station, incinerator, air pollution abatement equipment or installation, or other works or reservoir used primarily for the purpose of abating, treating, stabilizing, isolating or holding industrial or agricultural waste; and

(4) Disposal system shall mean any system used primarily for disposing of or isolating industrial or agricultural water and shall include pipelines or conduits, pumping stations and force mains, and all other constructions, devices, appurtenances and facilities used for collecting or conducting air-borne or water-borne industrial or agricultural waste to a point of disposal, treatment or isolation except that which is necessary to the manufacture of products.

Source:Laws 1972, LB 716, § 1;    Laws 1974, LB 820, § 3.    


77-27,150. Refund; application; when; contents; hearing; approval.

(1) An application for a refund of Nebraska sales and use taxes paid for any air or water pollution control facility may be filed with the Tax Commissioner by the owner of such facility in such manner and in such form as may be prescribed by the commissioner. The application for a refund shall contain: (a) Plans and specifications of such facility including all materials incorporated therein; (b) a descriptive list of all equipment acquired by the applicant for the purpose of industrial or agricultural waste pollution control; (c) the proposed operating procedure for the facility; (d) the acquisition cost of the facility for which a refund is claimed; and (e) a copy of the final findings of the Department of Environment and Energy issued pursuant to section 77-27,151.

(2) The Tax Commissioner shall offer an applicant a hearing upon request of such applicant. The hearing shall not affect the authority of the Department of Environment and Energy to determine whether or not industrial or agricultural waste pollution control exists within the meaning of the Air and Water Pollution Control Tax Refund Act.

(3) A claim for refund received without a copy of the final findings of the Department of Environment and Energy issued pursuant to section 77-27,151 shall not be considered a valid claim and shall be returned to the applicant.

(4) Notice of the Tax Commissioner's refusal to issue a refund shall be mailed to the applicant.

Source:Laws 1972, LB 716, § 2;    Laws 1974, LB 820, § 4;    Laws 1977, LB 308, § 1;    Laws 1978, LB 244, § 1;    Laws 1993, LB 3, § 43;    Laws 2002, LB 989, § 20;    Laws 2012, LB727, § 45;    Laws 2019, LB302, § 96.    


77-27,151. Refund; notice to Tax Commissioner; Department of Environment and Energy; duties.

If the Department of Environment and Energy finds that a facility or multiple facilities at a single location are designed and operated primarily for control, capture, abatement, or removal of industrial or agricultural waste from air or water and are suitable, are reasonably adequate, and meet the intent and purposes of the Environmental Protection Act, the Department of Environment and Energy shall so notify the owner of the facility in writing of its findings that the facility, multiple facilities, or the specified portions of any facility are approved. The Department of Environment and Energy shall also notify the Tax Commissioner of its findings and the extent of commercial or productive value derived from any materials captured or recovered by the facility.

Source:Laws 1972, LB 716, § 3;    Laws 1974, LB 820, § 5;    Laws 1977, LB 308, § 2;    Laws 1993, LB 3, § 44;    Laws 2002, LB 989, § 21;    Laws 2019, LB302, § 97.    


Cross References

77-27,152. Refund; notice; modify or revoke; when; effect.

(1) The Tax Commissioner, after giving notice by mail to the applicant and giving an opportunity for a hearing, shall modify or revoke the refund whenever the following appears: (a) The refund was obtained by fraud or misrepresentation regarding the payment of tax on materials incorporated into the facility or facilities; or (b) the Department of Environment and Energy has modified its findings regarding the facility covered by the refund.

(2) The Department of Environment and Energy may modify its findings when it determines any of the following: (a) The refund was obtained by fraud or misrepresentation regarding the facility or planned operation of the facility; (b) the applicant has failed substantially to operate the facility for the purpose and degree of control specified in the application or an amended application; or (c) the facility covered by the refund is no longer used for the primary purpose of pollution control.

(3) On the mailing to the refund applicant of notice of the action of the Tax Commissioner modifying or revoking the refund, the refund shall cease to be in force or shall remain in force only as modified. When a refund is revoked because a refund was obtained by fraud or misrepresentation, all taxes which would have been payable if no certificate had been issued shall be immediately due and payable with the maximum interest and penalties prescribed by the Nebraska Revenue Act of 1967. No statute of limitations shall operate in the event of fraud or misrepresentation.

Source:Laws 1972, LB 716, § 4;    Laws 1977, LB 308, § 3;    Laws 1993, LB 3, § 45;    Laws 2002, LB 989, § 22;    Laws 2012, LB727, § 46;    Laws 2019, LB302, § 98.    


Cross References

77-27,153. Appeal; procedure.

(1) A party aggrieved by the issuance, refusal to issue, revocation, or modification of a pollution control tax refund may appeal from the finding and order of the Tax Commissioner. The finding and order shall not affect the authority of the Department of Environment and Energy to determine whether or not industrial or agricultural waste pollution control exists within the meaning of the Air and Water Pollution Control Tax Refund Act. The appeal shall be in accordance with the Administrative Procedure Act.

(2) The Department of Environment and Energy shall make its findings for the Air and Water Pollution Control Tax Refund Act in accordance with its normal administrative procedures. Nothing in the act is intended to affect the department's authority to make findings and to determine whether or not industrial or agricultural waste pollution control exists within the meaning of the act.

Source:Laws 1972, LB 716, § 5;    Laws 1988, LB 352, § 160;    Laws 2002, LB 989, § 23;    Laws 2019, LB302, § 99.    


Cross References

77-27,154. Rules and regulations.

The Tax Commissioner may adopt and promulgate rules and regulations that are necessary for the administration of the Air and Water Pollution Control Tax Refund Act. Such rules and regulations shall not abridge the authority of the Department of Environment and Energy to determine whether or not industrial or agricultural waste pollution control exists within the meaning of the act.

Source:Laws 1972, LB 716, § 6;    Laws 1977, LB 308, § 4;    Laws 1993, LB 3, § 46;    Laws 2002, LB 989, § 24;    Laws 2019, LB302, § 100.    


77-27,155. Act, how cited.

Sections 77-27,149 to 77-27,155 shall be known as the Air and Water Pollution Control Tax Refund Act.

Source:Laws 1972, LB 716, § 7;    Laws 1974, LB 820, § 6.    


77-27,156. Nebraska Economic Forecasting Advisory Board; created.

To assist the Governor in developing estimates of revenue pursuant to section 81-125 and the Legislature in setting the rates of the income tax and sales tax pursuant to section 77-2715.01, there is hereby created the Nebraska Economic Forecasting Advisory Board.

Source:Laws 1984, LB 892, § 3.    


77-27,157. Board; membership; terms; officers; quorum; expenses.

The Nebraska Economic Forecasting Advisory Board shall consist of nine members, five of whom shall be appointed by and serve at the pleasure of the Executive Board of the Legislative Council and four of whom shall be appointed by and serve at the pleasure of the Governor. The original gubernatorial appointees shall serve for two-year terms. Successive gubernatorial appointees and all legislative appointees shall serve for four-year terms. After appointments are made, the board shall select a chairperson and a vice-chairperson from its membership. The chairperson and vice-chairperson shall serve for two-year terms. The chairperson of the board on September 6, 1985, shall serve until his or her successor is selected. Each member of the board shall have demonstrated expertise in the field of tax policy, economics, or economic forecasting. A majority of the members of the board shall constitute a quorum for the purpose of transacting business and every act of a majority of the members shall be deemed an act of the board. Board members shall serve without compensation but may be reimbursed for expenses as provided in sections 81-1174 to 81-1177. Board members appointed by the Legislative Council shall receive such reimbursement out of the appropriation made to the Legislature's Fiscal and Program Analysis Program. Board members appointed by the Governor shall receive such reimbursement out of the appropriation made to the Department of Revenue for administration.

Source:Laws 1984, LB 892, § 4;    Laws 1985, LB 283, § 1;    Laws 2020, LB381, § 84.    


77-27,158. Board; meetings; duty.

The Nebraska Economic Forecasting Advisory Board shall meet during the months of February and October of each year and during April of each odd-numbered year for the purpose of developing a consensus projection of economic activity in Nebraska. When determined to be necessary to conduct the duties of the board, additional meetings may be held at the call of the chairperson of the board, by a joint call of the Governor and the chairperson of the board, or by a joint call of the chairperson of the Executive Board of the Legislative Council and the chairperson of the board. Notice of all meetings shall be given at least ten days in advance. The board may estimate growth or decline in the state unemployment rate, gross state product, statewide personal income, and such other indices of state economic activity as the board may deem appropriate. The board shall provide an advisory forecast of General Fund receipts.

Source:Laws 1984, LB 892, § 5;    Laws 1987, LB 343, § 1.    


77-27,159. Board; staff support; development of revenue estimates; considerations.

The Legislative Fiscal Analyst and the Department of Revenue shall provide such staff support as the Nebraska Economic Forecasting Advisory Board may require. The Legislative Fiscal Analyst, in developing revenue estimates pursuant to section 50-419, and the Department of Revenue, in developing revenue estimates for the Governor pursuant to section 81-125, shall consider the estimates of economic activity and the advisory forecast of General Fund receipts developed by the board pursuant to section 77-27,158.

Source:Laws 1984, LB 892, § 6;    Laws 1987, LB 343, § 2.    


77-27,160. Legislative intent.

It is the intent of the Legislature to establish and maintain a procedure to set off against a debtor's income tax refund or state lottery prize any debt which is assigned to the Department of Health and Human Services or which any individual not eligible as a public assistance recipient is attempting to collect, which has accrued through written contract, subrogation, or court judgment and is in the form of a liquidated amount due and owing for the care, support, or maintenance of a child or for spousal support.

Source:Laws 1984, LB 845, § 6;    Laws 1993, LB 138, § 71;    Laws 1994, LB 1224, § 84;    Laws 1996, LB 1044, § 797;    Laws 1997, LB 307, § 199.    


77-27,161. Terms, defined.

For purposes of sections 77-27,160 to 77-27,173, unless the context otherwise requires:

(1) Debt shall mean any liquidated amount due and owing any claimant which has accrued through assignment, contract, subrogation, court judgment, or operation of law, regardless of whether there is an outstanding judgment for such amount, and which is for the care, support, or maintenance of a child or for spousal support and shall include the costs of health services subject to section 77-27,163.01;

(2) Debtor shall mean any individual owing money to or having a delinquent account with any claimant which has not been satisfied by court order, set aside by court order, or discharged in bankruptcy;

(3) Claimant shall mean:

(a) The Department of Health and Human Services with respect to collection of a debt owed by a parent in a case involving a recipient of aid to dependent children in which rights to child, spousal, or medical support payments have been assigned to this state;

(b) An individual who is not eligible as a public assistance recipient and to whom a child, spousal, or medical support debt is owed; or

(c) Any person or entity entitled to receive child support, spousal support, or medical support as defined in section 43-1712.01 pursuant to an order issued by a court or agency of another state or jurisdiction, including an agency of another state or jurisdiction to which a person has assigned his or her right to receive such support. Such a claimant shall submit certification and documentation sufficient to satisfy the requirements of section 43-1730;

(4) Refund shall mean any Nebraska state income tax refund which the Department of Revenue determines to be due an individual taxpayer. In the case of a joint income tax return, it is presumed that each partner to the marriage submitting such return contributed one-half of the earnings upon which the refund is based. The presumption may be contested by the state, the delinquent taxpayer, and the innocent spouse by virtue of the hearing process prescribed in section 77-27,169;

(5) Spousal support shall have the same meaning as in section 43-1715; and

(6) State lottery prize shall mean any lottery prize in excess of five hundred dollars to be awarded to an individual pursuant to the State Lottery Act upon presentation of a winning lottery ticket to the Lottery Division of the Department of Revenue for redemption.

Source:Laws 1984, LB 845, § 7;    Laws 1985, Second Spec. Sess., LB 7, § 77;    Laws 1991, LB 457, § 45; Laws 1993, LB 138, § 72;    Laws 1994, LB 1224, § 85;    Laws 1996, LB 1044, § 798;    Laws 1997, LB 307, § 200.    


Cross References

77-27,162. Collection system; development; duties.

The Department of Revenue, the Department of Administrative Services, and the Department of Health and Human Services shall develop and implement a collection system to carry out the intent of section 77-27,160.

Source:Laws 1984, LB 845, § 8;    Laws 1996, LB 1044, § 799;    Laws 2007, LB296, § 705.    


77-27,163. Collection system; additional remedy.

The collection remedy authorized by sections 77-27,160 to 77-27,173 is in addition to and not in substitution for any other remedy available by law.

Source:Laws 1984, LB 845, § 9.    


77-27,163.01. Costs of health services; setoff; Department of Health and Human Services; duties; amount of setoff; priority of claims.

The Department of Health and Human Services shall use the procedures in this section and sections 77-27,160 to 77-27,173 to setoff against a debtor's income tax refund the costs of health services provided to a child of the debtor if:

(1) The debtor is required by court or administrative order to provide coverage for the costs of such services; and

(2) The debtor has received payment from a third party for the costs of such services but has not used the payment to reimburse either the other parent or guardian or the provider of such services.

The amount of the setoff shall be limited to the amount necessary to reimburse the department for its expenditures for the costs of such services under the medical assistance program established pursuant to the Medical Assistance Act. Any claim for current or past-due child support shall take priority over a claim for setoff for the costs of health services.

Source:Laws 1994, LB 1224, § 86;    Laws 1996, LB 1044, § 800;    Laws 1997, LB 307, § 201;    Laws 2006, LB 1248, § 86.    


Cross References

77-27,164. Department of Health and Human Services; adopt rules and regulations.

The Department of Health and Human Services shall adopt and promulgate rules and regulations necessary to carry out the purposes of sections 77-27,160 to 77-27,173.

Source:Laws 1984, LB 845, § 10;    Laws 1996, LB 1044, § 801;    Laws 1997, LB 307, § 202.    


77-27,165. Notice of claim to debtor; contents.

The Department of Health and Human Services shall send notification to the debtor of the assertion of the department's rights, or of the rights of an individual not eligible as a public assistance recipient, to all or a portion of the debtor's income tax refund. The notice shall contain the procedures available to the debtor for protesting the offset, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the department within thirty days of the date of mailing the notice, and the defenses the debtor may raise. The debt shall be certified by the department through a preoffset review.

Source:Laws 1984, LB 845, § 11;    Laws 1996, LB 1044, § 802;    Laws 1997, LB 307, § 203;    Laws 2010, LB849, § 29.    


77-27,166. Submission of certified debt; when effective; Lottery Division of the Department of Revenue; duties.

(1) The Department of Health and Human Services may submit any certified debt of twenty-five dollars or more to the Department of Revenue except when the validity of the debt is legitimately in dispute. The submission of debts of past due support shall be a continuous submission process that allows the amount of past due support to fluctuate up or down depending on the actual amount owed. Any submission shall be effective only to initiate setoff for a claim against a refund that would be made for the calendar year subsequent to the year in which such submission is made.

(2) The Lottery Division of the Department of Revenue shall review all current debts on the records of the Department of Health and Human Services at the time of redeeming a lottery ticket for a state lottery prize to certify a debt owed by a winner of a state lottery prize.

Source:Laws 1984, LB 845, § 12;    Laws 1993, LB 138, § 73;    Laws 1996, LB 1044, § 803;    Laws 1997, LB 307, § 204;    Laws 2009, LB288, § 36.    


77-27,167. Notice of pending refund or state lottery prize.

If a debtor identified by the Department of Health and Human Services pursuant to section 77-27,165 or 77-27,166 is determined by the Department of Revenue to be entitled to a refund of twenty-five dollars or more or a state lottery prize, the Department of Health and Human Services shall be notified that a refund or prize is pending.

Source:Laws 1984, LB 845, § 13;    Laws 1993, LB 138, § 74;    Laws 1996, LB 1044, § 804;    Laws 1997, LB 307, § 205.    


77-27,168. Notice of claim to refund or state lottery prize; contents.

(1) Upon receipt of notification pursuant to section 77-27,167 that a debtor is entitled to a refund or a state lottery prize, the Department of Health and Human Services shall, within twenty days, send written notification to the debtor of an assertion of its rights, or of the rights of an individual not eligible as a public assistance recipient, to all or a portion of the debtor's refund or state lottery prize.

(2) The written notification shall clearly set forth the basis for the claim to the refund or state lottery prize, the intention to apply the refund or state lottery prize against the debt to a claimant, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the Department of Health and Human Services within thirty days of the date of the mailing of the notice, the mailing address to which the application for a hearing must be sent, and notice that failure to apply for a hearing in writing within the thirty-day period will be deemed a waiver of the opportunity to contest the claim, causing a setoff by default.

In the case of a joint tax return, the notice shall also state the name of the taxpayer named in the return, if any, against whom no debt is claimed. There shall be no affirmative duty placed upon the non-owing spouse of an intercepted tax return to initiate an action to receive payment of the noninterceptable amount.

Source:Laws 1984, LB 845, § 14;    Laws 1993, LB 138, § 75;    Laws 1996, LB 1044, § 805;    Laws 1997, LB 307, § 206.    


77-27,169. Debtor; application for hearing; when effective; hearing.

A written application, pursuant to sections 77-27,165 and 77-27,168, by a debtor for a hearing shall be effective upon mailing the application, postage prepaid and properly addressed, to the Department of Health and Human Services.

If the Department of Health and Human Services receives a written application contesting a claim, it shall grant a hearing to the taxpayer or state lottery prize winner to determine whether the claim is valid. If the amount asserted as due and owing is not correct, an adjustment to the claimed amount shall be made. No issues shall be reconsidered at the hearing which have been previously litigated.

Source:Laws 1984, LB 845, § 15;    Laws 1993, LB 138, § 76;    Laws 1996, LB 1044, § 806;    Laws 1997, LB 307, § 207.    


77-27,170. Appeal.

Any appeal of an action taken at or as a result of a hearing held pursuant to section 77-27,169 shall be in accordance with the Administrative Procedure Act.

Source:Laws 1984, LB 845, § 16.    


Cross References

77-27,171. Certification of debt; when; procedure; deduction from refund or state lottery prize.

(1) Upon final determination of the amount and validity of the debt due and owing by means of the hearing provided for in section 77-27,169 or by the taxpayer's default through failure to request a hearing pursuant to section 77-27,168, the Department of Health and Human Services shall certify the debt to the Department of Administrative Services within twenty days from the date of the final determination. The final determination shall not delay a refund beyond the period prescribed in section 77-2794.

(2) Upon receipt of the certified debt amount from the Department of Health and Human Services, the Department of Administrative Services shall deduct an amount equal to the certified debt from the refund or state lottery prize due the debtor, up to the amount of the refund or state lottery prize, and shall transfer such amount, by noncash voucher, to the Department of Health and Human Services. In nonpublic assistance cases, the Department of Health and Human Services shall transmit the funds collected to the clerk of the district court for dispersal to the payee. The Department of Administrative Services shall refund or award any remaining balance to the debtor as if the setoff had not occurred.

Source:Laws 1984, LB 845, § 17;    Laws 1993, LB 138, § 77;    Laws 1996, LB 1044, § 807;    Laws 1997, LB 307, § 208.    


77-27,172. Completion of setoff; notice.

When the Department of Health and Human Services receives all or a portion of a certified debt pursuant to section 77-27,171, the department shall notify the debtor of the completion of the setoff. Such notice shall include the final amount of the refund or state lottery prize to which the debtor was entitled prior to the setoff, the amount of the certified debt, and the amount of the refund or state lottery prize in excess of the debt, if any.

Source:Laws 1984, LB 845, § 18;    Laws 1993, LB 138, § 78;    Laws 1996, LB 1044, § 808;    Laws 1997, LB 307, § 209.    


77-27,173. Costs of setoffs; reimbursement.

The Department of Health and Human Services shall reimburse the Department of Revenue and the Department of Administrative Services for all reasonable and necessary costs incurred by the Department of Revenue and the Department of Administrative Services in setting off debts pursuant to sections 77-27,160 to 77-27,173.

Source:Laws 1984, LB 845, § 19;    Laws 1996, LB 1044, § 809;    Laws 1997, LB 307, § 210.    


77-27,174. Act, how cited.

Sections 77-27,174 to 77-27,184 shall be known and may be cited as the Tax Refund Setoff Act.

Source:Laws 1985, LB 273, § 1.    


77-27,175. Agency, defined.

As used in the Tax Refund Setoff Act, unless the context otherwise requires, agency shall mean the Department of Revenue, any other body in the executive branch of state government, any political subdivision of this state, or the federal Internal Revenue Service.

Source:Laws 1985, LB 273, § 2;    Laws 1987, LB 523, § 29.    


77-27,176. Purpose of act; limitation.

The purpose of the Tax Refund Setoff Act is to provide the Tax Commissioner with the authority to enter into an agreement with the Commissioner of Internal Revenue to establish a reciprocal tax refund setoff system substantially similar to such act. The Tax Commissioner shall not enter into such agreement unless the Commissioner of Internal Revenue is authorized by federal law to enter into a substantially similar agreement offsetting delinquent state taxes.

Source:Laws 1985, LB 273, § 3.    


77-27,177. Tax refund setoff system; operation.

The tax refund setoff system shall allow the state government to offset a person's delinquent federal tax liability against any state tax refund due to such person. The delinquent tax liability shall include all tax liability, interest, penalties, fees, and any other charges accruing pursuant to the taxing laws of the federal government. This tax refund setoff system shall be in addition to and not a substitute for any other remedy available to collect such delinquencies.

Source:Laws 1985, LB 273, § 4.    


77-27,178. Delinquent federal tax liability; identification; joint tax return; presumption.

The Commissioner of Internal Revenue shall provide a system to identify persons having delinquent tax liability under federal taxing laws.

On or before dates specified in the agreement, the Commissioner of Internal Revenue shall supply the Department of Revenue with information necessary to identify such persons and shall certify in writing the amount of the liability. Such information shall be confidential.

In the case of a joint tax return it shall be presumed that each spouse contributed one-half of the amount upon which the refund is based. If only one of the spouses filing the return is identified as a person having a delinquent tax liability, the other spouse shall receive one-half of the refund unless this presumption is rebutted by the agency or the spouse.

Source:Laws 1985, LB 273, § 5.    


77-27,179. Tax refund setoff; procedure; joint return; how treated.

(1) If the Department of Revenue determines that a person identified as having a delinquent tax liability is entitled to a tax refund:

(a) The Department of Revenue shall transfer the full amount of the refund or the amount equal to any debts owed the state or any of its political subdivisions, whichever is less, as necessary to apply toward satisfaction of the liability;

(b) The Department of Revenue shall transfer the amount of any balance of the refund or the amount certified by the Commissioner of Internal Revenue as delinquent tax liability, whichever is less, to the Commissioner of Internal Revenue; and

(c) Any remaining balance of the refund shall be forwarded to the taxpayer in the usual manner.

(2) In the case of a joint return when only one spouse is a person identified as having a delinquent tax liability, if the Department of Revenue has reason to believe that the spouse having the liability did in fact contribute more or less than the one-half contribution as provided in section 77-27,178, the Department of Revenue shall transfer the amount of the refund deemed attributable to the spouse with the liability as provided in subsection (1) of this section.

Source:Laws 1985, LB 273, § 6.    


77-27,180. Setoff; notice; contents.

Within thirty days of a transfer pursuant to section 77-27,179, the Department of Revenue shall notify the person, and his or her spouse in the case of a joint return, of the transfer. If an agency, other than the Department of Revenue, or the Commissioner of Internal Revenue is involved with the transfer, a copy of the notice and of any correspondence shall be sent to each involved party. The notice shall state:

(1) The basis for the claim to the refund;

(2) The application of the refund or a portion thereof against the delinquent tax liability;

(3) That the person has the opportunity to contest the validity and amount of the delinquent tax liability by applying to the agency requesting the setoff in writing for a hearing and the time period after the date of the mailing of the notice within which the appeal must be filed;

(4) The name and mailing address of the agency to which the application for a hearing must be sent;

(5) The effect of a failure to apply in writing for a hearing within the prescribed period; and

(6) In the case of a joint return (a) the presumption provided in section 77-27,178, (b) that the presumption may be rebutted, (c) whether both or just one of the spouses has a delinquent tax liability, and (d) the percentage of the refund which the agency attributes to the spouse or spouses with the delinquent tax liability.

Source:Laws 1985, LB 273, § 7;    Laws 1987, LB 523, § 30.    


77-27,181. Application for hearing; when effective.

A written application for a hearing pursuant to section 77-27,180 shall be effective upon mailing the application, postage prepaid and properly addressed, to the appropriate agency.

Source:Laws 1985, LB 273, § 8.    


77-27,182. Hearing and appeal; procedure.

If the Department of Revenue receives a written application for a hearing, it shall proceed with notice and hearing as for a contested case pursuant to the Administrative Procedure Act. The validity and amount of the liability shall be determined and any adjustments made. No issues shall be reconsidered at the hearing which have previously been litigated. An appeal of the final decision may be made, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1985, LB 273, § 9;    Laws 1988, LB 352, § 161.    


Cross References

77-27,183. Improper setoff; how treated.

In the case of an improper setoff, the agency receiving the benefit of the setoff by having a purportedly delinquent tax paid shall be liable to the taxpayer for payment of any setoff, penalty, and interest.

Source:Laws 1985, LB 273, § 10.    


77-27,184. Tax Commissioner; adopt rules and regulations.

The Tax Commissioner may adopt and promulgate rules and regulations necessary to accomplish the purpose of the Tax Refund Setoff Act.

Source:Laws 1985, LB 273, § 11.    


77-27,185. Repealed. Laws 1987, LB 775, § 19.

77-27,186. Repealed. Laws 1987, LB 775, § 19.

77-27,186.01. Repealed. Laws 1995, LB 9, § 3.

77-27,187. Act, how cited.

Sections 77-27,187 to 77-27,195 shall be known and may be cited as the Nebraska Advantage Rural Development Act.

Source:Laws 1986, LB 1124, § 1;    Laws 1987, LB 270, § 1;    Laws 1997, LB 886, § 1;    Laws 1998, LB 1104, § 14;    Laws 2002, LB 93, § 19;    Laws 2003, LB 608, § 1;    Laws 2005, LB 312, § 16;    Laws 2009, LB403, § 8;    Laws 2014, LB836, § 1.    


77-27,187.01. Terms, defined.

For purposes of the Nebraska Advantage Rural Development Act, unless the context otherwise requires:

(1) Any term has the same meaning as used in the Nebraska Revenue Act of 1967;

(2) Equivalent employees means the number of employees computed by dividing the total hours paid in a year to employees by the product of forty times the number of weeks in a year;

(3) Livestock means all animals, including cattle, horses, sheep, goats, hogs, dairy animals, chickens, turkeys, and other species of game birds and animals raised and produced subject to permit and regulation by the Game and Parks Commission or the Department of Agriculture;

(4) Livestock modernization or expansion means the construction, improvement, or acquisition of buildings, facilities, or equipment for livestock housing, confinement, feeding, production, and waste management. Livestock modernization or expansion does not include any improvements made to correct a violation of the Environmental Protection Act, the Integrated Solid Waste Management Act, the Livestock Waste Management Act, a rule or regulation adopted and promulgated pursuant to such acts, or any order of the Department of Environment and Energy undertaken within five years after a complaint issued from the Director of Environment and Energy under section 81-1507;

(5) Livestock production means the active use, management, and operation of real and personal property (a) for the commercial production of livestock, (b) for the commercial breeding, training, showing, or racing of horses or for the use of horses in a recreational or tourism enterprise, and (c) for the commercial production of dairy and eggs. The activity will be considered commercial if the gross income derived from an activity for two or more of the taxable years in the period of seven consecutive taxable years which ends with the taxable year exceeds the deductions attributable to such activity or, if the operation has been in existence for less than seven years, if the activity is engaged in for the purpose of generating a profit;

(6) Qualified employee leasing company means a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and a client-lessee, grants to the client-lessee input into the hiring and firing of the employees leased to the client-lessee;

(7) Related taxpayers includes any corporations that are part of a unitary business under the Nebraska Revenue Act of 1967 but are not part of the same corporate taxpayer, any business entities that are not corporations but which would be a part of the unitary business if they were corporations, and any business entities if at least fifty percent of such entities are owned by the same persons or related taxpayers and family members as defined in the ownership attribution rules of the Internal Revenue Code of 1986, as amended;

(8) Taxpayer means a corporate taxpayer or other person subject to either an income tax imposed by the Nebraska Revenue Act of 1967 or a franchise tax under Chapter 77, article 38, or a partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture that is or would otherwise be a member of the same unitary group if incorporated, which is, or whose partners, members, or owners representing an ownership interest of at least ninety percent of the control of such entity are, subject to or exempt from such taxes, and any other partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture when the partners, members, or owners representing an ownership interest of at least ninety percent of the control of such entity are subject to or exempt from such taxes; and

(9) Year means the taxable year of the taxpayer.

Source:Laws 1997, LB 886, § 2;    Laws 1998, LB 1104, § 15;    Laws 1999, LB 539, § 1;    Laws 2003, LB 608, § 2;    Laws 2005, LB 312, § 17;    Laws 2006, LB 990, § 2;    Laws 2006, LB 1003, § 8;    Laws 2007, LB223, § 16;    Laws 2007, LB368, § 136;    Laws 2008, LB895, § 2;    Laws 2015, LB175, § 6;    Laws 2019, LB302, § 101.    


Cross References

77-27,187.02. Application; deadline; contents; fee; written agreement; contents.

(1) To earn the incentives set forth in the Nebraska Advantage Rural Development Act, the taxpayer shall file an application for an agreement with the Tax Commissioner. There shall be no new applications for incentives filed under this section after December 31, 2027.

(2) The application shall contain:

(a) A written statement describing the full expected employment or type of livestock production and the investment amount for a qualified business, as described in section 77-27,189, in this state;

(b) Sufficient documents, plans, and specifications as required by the Tax Commissioner to support the plan and to define a project; and

(c) An application fee of (i) one hundred dollars for an investment amount of less than twenty-five thousand dollars, (ii) two hundred fifty dollars for an investment amount of at least twenty-five thousand dollars but less than fifty thousand dollars, and (iii) five hundred dollars for an investment amount of fifty thousand dollars or more. The fee shall be remitted to the State Treasurer for credit to the Nebraska Incentives Fund. The application and all supporting information shall be confidential except for the name of the taxpayer, the location of the project, and the amounts of increased employment or investment.

(3)(a) The Tax Commissioner shall approve the application and authorize the total amount of credits expected to be earned as a result of the project if he or she is satisfied that the plan in the application defines a project that (i) meets the requirements established in section 77-27,188 and such requirements will be reached within the required time period and (ii) for projects other than livestock modernization or expansion projects, is located in an eligible county, city, or village.

(b) For applications filed in calendar year 2016 and each year thereafter, the Tax Commissioner shall not approve further applications from applicants described in subsection (1) of section 77-27,188 once the expected credits from approved projects in this category total: For calendar years 2016 through 2022, one million dollars; and for calendar year 2023 and each calendar year thereafter, two million dollars. For applications filed in calendar year 2016 and each year thereafter, the Tax Commissioner shall not approve further applications from applicants described in subsection (2) of section 77-27,188 once the expected credits from approved projects in this category total: For calendar year 2016, five hundred thousand dollars; for calendar years 2017 and 2018, seven hundred fifty thousand dollars; for calendar years 2019, 2020, and 2021, one million dollars; and for calendar year 2022 and each calendar year thereafter, ten million dollars. Four hundred dollars of the application fee shall be refunded to the applicant if the application is not approved because the expected credits from approved projects exceed such amounts.

(c) Applications for benefits shall be considered separately and in the order in which they are received for the categories represented by subsections (1) and (2) of section 77-27,188.

(d) Applications shall be filed by November 1 and shall be complete by December 1 of each calendar year. Any application that is filed after November 1 or that is not complete on December 1 shall be considered to be filed during the following calendar year.

(4) After approval, the taxpayer and the Tax Commissioner shall enter into a written agreement. The taxpayer shall agree to complete the project, and the Tax Commissioner, on behalf of the State of Nebraska, shall designate the approved plans of the taxpayer as a project and, in consideration of the taxpayer's agreement, agree to allow the taxpayer to use the incentives contained in the Nebraska Advantage Rural Development Act up to the total amount that were authorized by the Tax Commissioner at the time of approval. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The levels of employment and investment required by the act for the project;

(b) The time period under the act in which the required level must be met;

(c) The documentation the taxpayer will need to supply when claiming an incentive under the act;

(d) The date the application was filed; and

(e) The maximum amount of credits authorized.

Source:Laws 2003, LB 608, § 3;    Laws 2005, LB 312, § 18;    Laws 2006, LB 990, § 3;    Laws 2007, LB223, § 17;    Laws 2008, LB895, § 3;    Laws 2008, LB914, § 17;    Laws 2009, LB164, § 2;    Laws 2011, LB389, § 14;    Laws 2015, LB175, § 7;    Laws 2015, LB538, § 10;    Laws 2016, LB1022, § 6;    Laws 2022, LB1261, § 13;    Laws 2023, LB727, § 74.    
Operative Date: September 2, 2023


77-27,187.03. Legislative findings.

The Legislature hereby finds and declares that it is the policy of this state to make revisions in Nebraska's tax structure to encourage businesses to locate in rural areas of Nebraska in order to decrease unemployment, create new jobs, and increase investment in rural areas of the state. It is also the policy of this state to encourage the modernization of livestock facilities.

Source:Laws 2014, LB836, § 2.    


77-27,188. Tax credit; allowed; when; amount; repayment.

(1) A refundable credit against the taxes imposed by the Nebraska Revenue Act of 1967 shall be allowed to any taxpayer who has an approved application pursuant to the Nebraska Advantage Rural Development Act, who is engaged in a qualified business as described in section 77-27,189, and who after January 1, 2006:

(a)(i) Increases employment by two new equivalent employees and makes an increased investment of at least one hundred twenty-five thousand dollars prior to the end of the first taxable year after the year in which the application was submitted in (A) any county in this state with a population of fewer than fifteen thousand inhabitants, according to the most recent federal decennial census, (B) any village in this state, or (C) any area within the corporate limits of a city of the metropolitan class consisting of one or more contiguous census tracts, as determined by the most recent federal decennial census, which contain a percentage of persons below the poverty line of greater than thirty percent, and all census tracts contiguous to such tract or tracts; or

(ii) Increases employment by five new equivalent employees and makes an increased investment of at least two hundred fifty thousand dollars prior to the end of the first taxable year after the year in which the application was submitted in any county in this state with a population of less than twenty-five thousand inhabitants, according to the most recent federal decennial census, or any city of the second class; and

(b) Pays a minimum qualifying wage of eight dollars and twenty-five cents per hour to the new equivalent employees for which tax credits are sought under the Nebraska Advantage Rural Development Act. The Department of Revenue shall adjust the minimum qualifying wages required for applications filed after January 1, 2004, and each January 1 thereafter, as follows: The current rural Nebraska average weekly wage shall be divided by the rural Nebraska average weekly wage for 2003; and the result shall be multiplied by the eight dollars and twenty-five cents minimum qualifying wage for 2003 and rounded to the nearest one cent. The amount of increase or decrease in the minimum qualifying wages for any year shall be the cumulative change in the rural Nebraska average weekly wage since 2003. For purposes of this subsection, rural Nebraska average weekly wage means the most recent average weekly wage paid by all employers in all counties with a population of less than twenty-five thousand inhabitants as reported by October 1 by the Department of Labor.

For purposes of this section, a teleworker working in Nebraska from his or her residence for a taxpayer shall be considered an employee of the taxpayer, and property of the taxpayer provided to the teleworker working in Nebraska from his or her residence shall be considered an investment. Teleworker includes an individual working on a per-item basis and an independent contractor working for the taxpayer so long as the taxpayer withholds Nebraska income tax from wages or other payments made to such teleworker. For purposes of calculating the number of new equivalent employees when the teleworkers are paid on a per-item basis or are independent contractors, the total wages or payments made to all such new employees during the year shall be divided by the qualifying wage as determined in subdivision (b) of this subsection, with the result divided by two thousand eighty hours.

(2) A refundable credit against the taxes imposed by the Nebraska Revenue Act of 1967 shall be allowed to any taxpayer who (a) has an approved application pursuant to the Nebraska Advantage Rural Development Act, (b) is engaged in livestock production, and (c) invests at least fifty thousand dollars for livestock modernization or expansion for applications filed before January 1, 2024, or at least ten thousand dollars for livestock modernization or expansion for applications filed on or after January 1, 2024.

(3) The amount of the credit allowed under subsection (1) of this section shall be three thousand dollars for each new equivalent employee and two thousand seven hundred fifty dollars for each fifty thousand dollars of increased investment. For applications filed before January 1, 2016, the amount of the credit allowed under subsection (2) of this section shall be ten percent of the investment, not to exceed a credit of thirty thousand dollars. For applications filed on or after January 1, 2016, and before April 20, 2022, the amount of the credit allowed under subsection (2) of this section shall be ten percent of the investment, not to exceed a credit of one hundred fifty thousand dollars per application. For applications filed on or after April 20, 2022, the amount of the credit allowed under subsection (2) of this section shall be ten percent of the investment, not to exceed a credit of five hundred thousand dollars per application. For each application, a taxpayer engaged in livestock production may qualify for a credit under either subsection (1) or (2) of this section, but cannot qualify for more than one credit per application.

(4) An employee of a qualified employee leasing company shall be considered to be an employee of the client-lessee for purposes of this section if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.

(5) The credit shall not exceed the amounts set out in the application and approved by the Tax Commissioner.

(6)(a) If a taxpayer who receives tax credits creates fewer jobs or less investment than required in the project agreement, the taxpayer shall repay the tax credits as provided in this subsection.

(b) If less than seventy-five percent of the required jobs in the project agreement are created, one hundred percent of the job creation tax credits shall be repaid. If seventy-five percent or more of the required jobs in the project agreement are created, no repayment of the job creation tax credits is necessary.

(c) If less than seventy-five percent of the required investment in the project agreement is created, one hundred percent of the investment tax credits shall be repaid. If seventy-five percent or more of the required investment in the project agreement is created, no repayment of the investment tax credits is necessary.

(7) For taxpayers who submitted applications for benefits under the Nebraska Advantage Rural Development Act before January 1, 2006, subsection (1) of this section, as such subsection existed immediately prior to such date, shall continue to apply to such taxpayers. The changes made by Laws 2005, LB 312, shall not preclude a taxpayer from receiving the tax incentives earned prior to January 1, 2006.

Source:Laws 1986, LB 1124, § 2;    Laws 1987, LB 270, § 2;    Laws 1989, LB 335, § 1;    Laws 1993, LB 725, § 16;    Laws 1995, LB 134, § 6;    Laws 1997, LB 886, § 3;    Laws 1999, LB 539, § 2;    Laws 2001, LB 169, § 2;    Laws 2003, LB 608, § 4;    Laws 2005, LB 312, § 19;    Laws 2006, LB 990, § 4;    Laws 2007, LB223, § 18;    Laws 2008, LB895, § 4;    Laws 2015, LB175, § 8;    Laws 2022, LB1261, § 14;    Laws 2023, LB727, § 75.    
Operative Date: September 2, 2023


Cross References

77-27,188.01. Tax credit; claim; use; payment by contractor; how treated; applicability of section.

(1) The credit allowed under section 77-27,188 may be used to obtain a refund of state sales and use taxes paid or against the income tax liability of the taxpayer or may be used as a refundable credit claimed on an income tax return of the taxpayer. The return need not reflect any income tax liability owed by the taxpayer.

(2) A claim for the credit may be filed quarterly for refund of the state sales and use taxes paid, either directly or indirectly, after the filing of the income tax return for the taxable year in which the credit was first allowed.

(3) The credit may be used to obtain a refund of state sales and use taxes paid before the end of the taxable year for which the credit was allowed, except that the amount refunded under this subsection shall not exceed the amount of the state sales and use taxes paid, either directly or indirectly, by the taxpayer on the qualifying investment.

(4) For purposes of subsections (2) and (3) of this section, the taxpayer shall be deemed to have paid indirectly any state sales or use taxes paid by a contractor on building materials annexed to an improvement to real estate built for the taxpayer. The contractor shall certify to the taxpayer the amount of the Nebraska state sales and use taxes paid on the building materials, or the taxpayer, with the permission of the Tax Commissioner and a certification from the contractor that Nebraska state sales and use taxes were paid on all building materials, may presume that fifty percent of the cost of the improvement was for building materials annexed to real estate on which the tax was paid.

(5) No claim for refund of sales and use taxes under this section may be filed prior to January 1, 1989.

(6) Credits distributed to a partner, limited liability company member, shareholder, or beneficiary under section 77-27,194 may be used against the income tax liability of the partner, member, shareholder, or beneficiary receiving the credits.

(7) For taxpayers who met the job and investment thresholds of the Employment Expansion and Investment Incentive Act for a tax year beginning before January 1, 2004, subsection (6) of this section and subdivision (1)(b) of section 77-27,188, as such section existed immediately prior to such date, shall continue to apply to such taxpayer. The changes made by Laws 2003, LB 608, shall not preclude a taxpayer from receiving the tax incentives earned prior to January 1, 2004.

Source:Laws 1987, LB 270, § 3;    Laws 1989, LB 335, § 2;    Laws 1993, LB 121, § 512;    Laws 1993, LB 345, § 73;    Laws 1993, LB 725, § 17;    Laws 1994, LB 884, § 91;    Laws 2003, LB 608, § 5;    Laws 2004, LB 1017, § 21.    

Note: The Employment Expansion and Investment Incentive Act was renamed the Nebraska Advantage Rural Development Act, see section 77-27,187.


77-27,188.02. Failure to maintain investment and employment level; effect.

If the taxpayer does not maintain the increases in the level of investment and employment described in subsection (1) of section 77-27,188 to create a credit for at least three years after the year for which the credit was first allowed, the taxpayer shall lose all used and unused credits. The taxpayer shall repay to the state the amount of the used credits within one year after the failure to maintain such investment and employment.

Source:Laws 1987, LB 270, § 4;    Laws 1989, LB 335, § 3;    Laws 1997, LB 886, § 4;    Laws 2001, LB 169, § 3;    Laws 2003, LB 608, § 6;    Laws 2006, LB 990, § 5.    


77-27,188.03. Employees; verification of status required; exclusion.

(1) The Tax Commissioner shall not approve or grant to any person any tax incentive under the Nebraska Advantage Rural Development Act unless the taxpayer provides evidence satisfactory to the Tax Commissioner that the taxpayer electronically verified the work eligibility status of all newly hired employees employed in Nebraska.

(2) For purposes of calculating any tax incentive available under the act, the Tax Commissioner shall exclude hours worked and compensation paid to an employee that is not eligible to work in Nebraska as verified under subsection (1) of this section.

(3) This section does not apply to any application filed under the act prior to October 1, 2009.

Source:Laws 2009, LB403, § 9.    


77-27,189. Qualified business, defined.

(1) A qualified business means any business engaged in:

(a) Storage, warehousing, distribution, transportation, or sale of tangible personal property;

(b) Livestock production;

(c) Conducting research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(d) Performing data processing, telecommunication, insurance, or financial services. For purposes of this subdivision, financial services includes only financial services provided by any financial institution subject to tax under Chapter 77, article 38, or any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission and telecommunication services includes community antenna television service, Internet access, satellite ground station, data center, call center, or telemarketing;

(e) Assembly, fabrication, manufacture, or processing of tangible personal property;

(f) Administrative management of any activities, including headquarter facilities relating to such activities; or

(g) Any combination of the activities listed in this subsection.

(2) Qualified business does not include:

(a) Any business activity in which eighty percent or more of the total sales are sales to the ultimate consumer of food prepared for immediate consumption or are sales to the ultimate consumer of tangible personal property which is not (i) assembled, fabricated, manufactured, or processed by the taxpayer or (ii) used by the purchaser in any of the activities listed in subsection (1) of this section; and

(b) Any casino.

Source:Laws 1986, LB 1124, § 3;    Laws 1987, LB 270, § 5;    Laws 1993, LB 725, § 18;    Laws 2003, LB 608, § 7;    Laws 2006, LB 990, § 6;    Laws 2007, LB223, § 19.    


77-27,190. Employment expansion; how determined.

(1) A taxpayer shall be deemed to have new equivalent employees when the new equivalent employees hired during a taxable year are in addition to the number of total equivalent employees in the taxable year preceding the date of application.

(2) Qualifying business employees who work within and without this state shall be considered only to the extent they are paid for work performed within this state.

(3) The hours worked by any person considered an independent contractor or the employee of another taxpayer shall not be used in the computation under this section.

Source:Laws 1986, LB 1124, § 4;    Laws 1987, LB 270, § 6;    Laws 1997, LB 886, § 5;    Laws 2003, LB 608, § 8;    Laws 2007, LB223, § 20.    


77-27,191. Investment increase; how determined.

(1) A taxpayer shall be deemed to have made an increased investment in this state to the extent the value of the property used or available for use exceeds the value of all property used or available for use on the last day of the taxable year previous to the date the application was filed.

(2) To determine the value of property owned by the taxpayer, the tax basis before allowance for depreciation shall be used. To determine the value of property rented by the taxpayer, the average net annual rent shall be multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation.

(3) Only investment in improvements to real property and tangible personal property that are depreciable under the Internal Revenue Code shall be considered.

(4) Vehicles, planes, or railroad rolling stock shall be excluded in determining the investment under this section.

Source:Laws 1986, LB 1124, § 5;    Laws 1987, LB 270, § 7;    Laws 1989, LB 335, § 4;    Laws 2003, LB 608, § 9;    Laws 2006, LB 1003, § 9.    


77-27,192. Existing business acquisition, disposal, reorganization, or relocation; computation; certain transactions excluded.

(1)(a) If the taxpayer acquires an existing business, the increases determined in sections 77-27,190 and 77-27,191 shall be computed as though the taxpayer had owned the business for the entire taxable year preceding the date of application.

(b) If the taxpayer disposes of an existing business, and the new owner maintains the minimum increases in the levels of investment and employment required in section 77-27,188 to create a credit, the taxpayer shall not be required to make any repayment under section 77-27,188.02 solely because of the disposition of the business.

(2) If the structure of a business is reorganized, the taxpayer shall compute the increases on a consistent basis for all periods.

(3) If the taxpayer moves a business from one location to another and the business was operated in this state during the taxable year preceding the date of application, the increases determined in sections 77-27,190 and 77-27,191 shall be computed as though the taxpayer had operated the business at the new location for the entire taxable year preceding the date of application.

(4) If the taxpayer enters into any of the following transactions, they shall be presumed to be a transaction entered into for the purpose of generating benefits under the Nebraska Advantage Rural Development Act and shall not be allowed in the computation of any benefit or the meeting of any required levels under the agreement except as specifically provided in this subsection:

(a) The purchase or lease of any property which was previously owned by the taxpayer which filed the application or a related taxpayer unless the first purchase by either the taxpayer which filed the application or a related taxpayer was first placed in service in the state after the beginning of the taxable year the application was filed;

(b) The renegotiation of any lease in existence during the taxable year the application was filed which does not materially change any of the terms of the lease other than the expiration date;

(c) The purchase or lease of any property from a related taxpayer, except that the taxpayer which filed the application will be allowed any benefits under the act to which the related taxpayer would have been entitled on the purchase or lease of the property if the related taxpayer was considered the taxpayer;

(d) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in the state; and

(e) Any activity that results in benefits under the Ethanol Development Act.

Source:Laws 1986, LB 1124, § 6;    Laws 1997, LB 886, § 6;    Laws 2001, LB 169, § 4;    Laws 2007, LB223, § 21.    


Cross References

77-27,193. Repealed. Laws 2003, LB 608, § 14.

77-27,194. Credit; when transferable.

The credit allowed under the Nebraska Advantage Rural Development Act shall not be transferable except in the following situations:

(1) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, or an estate or trust may be distributed to the partners, limited liability company members, shareholders, patrons, limited cooperative association members, or beneficiaries. Any credit distributed shall be distributed in the same manner as income is distributed. A credit distributed shall be considered a credit used and the partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, estate, or trust shall be liable for any repayment under section 77-27,188.02;

(2) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986;

(3) The acquiring taxpayer, as of the date of notification of the Tax Commissioner of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the act;

(4) The acquiring taxpayer shall be liable for any repayment that becomes due after the date of the transfer for the repayment of any benefits received either before or after the transfer; and

(5) If a taxpayer operating a qualifying business and allowed a credit under section 77-27,188 dies and there is credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of credit may be changed only after obtaining the permission of the Tax Commissioner.

Source:Laws 1986, LB 1124, § 8;    Laws 1993, LB 121, § 513;    Laws 1994, LB 884, § 92;    Laws 1997, LB 886, § 8;    Laws 2003, LB 608, § 10;    Laws 2005, LB 312, § 20;    Laws 2006, LB 1003, § 10;    Laws 2007, LB368, § 137.    


77-27,194.01. Refund claims; interest not allowable.

For all refund claims filed on or after October 1, 1998, interest shall not be allowable on any refunds paid because of benefits earned under the Nebraska Advantage Rural Development Act.

Source:Laws 1998, LB 1104, § 16;    Laws 2005, LB 312, § 21.    


77-27,195. Report; contents; joint hearing.

(1) The Tax Commissioner shall prepare a report identifying the amount of investment in this state and the number of equivalent jobs created by each taxpayer claiming a credit pursuant to the Nebraska Advantage Rural Development Act. The report shall include the amount of credits claimed in the aggregate. The report shall be issued on or before October 31 of each year for all credits allowed during the previous fiscal year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Revenue shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) Beginning with applications filed on or after January 1, 2006, except for livestock modernization or expansion projects, the report shall provide information on project-specific total incentives used every two years for each approved project and shall disclose (a) the identity of the taxpayer, (b) the location of the project, and (c) the total credits used and refunds approved during the immediately preceding two years expressed as a single, aggregated total. The incentive information required to be reported under this subsection shall not be reported for the first year the taxpayer attains the required employment and investment thresholds. The information on first-year incentives used shall be combined with and reported as part of the second year. Thereafter, the information on incentives used for succeeding years shall be reported for each project every two years containing information on two years of credits used and refunds approved. The incentives used shall include incentives which have been approved by the Department of Revenue, but not necessarily received, during the previous two fiscal years.

(3) For livestock modernization or expansion projects, the report shall disclose (a) the identity of the taxpayer, (b) the total credits used and refunds approved during the preceding fiscal year, and (c) the location of the project.

(4) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 1986, LB 1124, § 9;    Laws 1993, LB 725, § 19;    Laws 1997, LB 886, § 9;    Laws 2003, LB 608, § 11;    Laws 2005, LB 312, § 22;    Laws 2006, LB 990, § 7;    Laws 2013, LB612, § 3;    Laws 2022, LB1150, § 4.    


77-27,196. Repealed. Laws 2002, LB 93, § 27.

77-27,196.01. Changes to sections; when operative; credits; applicability of act.

(1) The changes made in sections 77-27,188, 77-27,188.02, 77-27,190, 77-27,192, 77-27,193, and 77-27,194 by Laws 1997, LB 886, shall become operative for all credits earned in tax years beginning, or deemed to begin, on and after January 1, 1998. For all credits earned in tax years beginning, or deemed to begin, prior to January 1, 1998, the provisions of the Employment Expansion and Investment Incentive Act as they existed immediately prior to such date shall apply.

(2) The changes made in sections 77-27,187.01 and 77-27,188 by Laws 1999, LB 539, shall become operative for all credits earned in tax years beginning, or deemed to begin, on and after January 1, 1999. For all credits earned in tax years beginning, or deemed to begin, prior to January 1, 1999, the provisions of the Employment Expansion and Investment Incentive Act as they existed immediately prior to such date shall apply.

(3) The changes made in sections 77-27,188, 77-27,188.02, and 77-27,192 by Laws 2001, LB 169, shall become operative for all credits earned in tax years beginning, or deemed to begin, on and after January 1, 2001. For all credits earned in tax years beginning, or deemed to begin, prior to January 1, 2001, the provisions of the Employment Expansion and Investment Incentive Act as they existed immediately prior to such date shall apply.

(4) The changes made in sections 77-27,187.01 and 77-27,187.02 by Laws 2008, LB 895, become operative for applications filed on and after April 18, 2008. The changes made in section 77-27,188 by Laws 2008, LB 895, become operative for applications filed on and after July 1, 2009.

Source:Laws 1997, LB 886, § 10;    Laws 1999, LB 539, § 3;    Laws 2001, LB 169, § 5;    Laws 2008, LB895, § 5.    

Note: The Employment Expansion and Investment Incentive Act was renamed the Nebraska Advantage Rural Development Act, see section 77-27,187.


77-27,197. Legislative intent.

It is the intent of the Legislature to establish and maintain a procedure to set off against a debtor's income tax refund any debt owed to the Department of Labor which has accrued as a result of an individual's liability for the repayment of unemployment insurance benefits determined to be in overpayment pursuant to sections 48-665 and 48-665.01 or an employer's liability for combined tax determined to be due and owing pursuant to sections 48-655 and 48-656.

Source:Laws 1993, LB 46, § 1;    Laws 1997, LB 129, § 3.    


77-27,198. Collection system; departments implement.

The Department of Revenue, the Department of Administrative Services, and the Department of Labor shall develop and implement a collection system to carry out the intent of section 77-27,197.

Source:Laws 1993, LB 46, § 2.    


77-27,199. Terms, defined.

For purposes of sections 77-27,197 to 77-27,209:

(1) Debt means combined tax due and payable to the Department of Labor pursuant to sections 48-655 and 48-656 or erroneous benefit payments due and payable to the department pursuant to sections 48-665 and 48-665.01; and

(2) Refund means any Nebraska state income tax refund which the Department of Revenue determines to be due an individual, corporate, or business taxpayer. In the case of a joint income tax return, it shall be presumed that each partner to the marriage submitting such return contributed one-half of the earnings upon which the refund is based. The presumption may be contested by the state, the debtor, and the innocent spouse by virtue of the hearing process prescribed in section 77-27,203.

Source:Laws 1993, LB 46, § 3;    Laws 1997, LB 129, § 4.    


77-27,200. Collection remedy; cumulative.

The collection remedy authorized by sections 77-27,197 to 77-27,209 shall be in addition to and not in substitution for any other remedy available by law.

Source:Laws 1993, LB 46, § 4.    


77-27,201. Debt; submission for collection; when.

The Department of Labor may submit any debt of twenty-five dollars or more to the Department of Revenue for collection pursuant to sections 77-27,197 to 77-27,209 except when the validity of the debt has not been finally determined by the debtor's exercise or failure to exercise all applicable appeal rights.

Source:Laws 1993, LB 46, § 5.    


77-27,202. Department of Labor; Department of Revenue; notifications required.

(1) If a debtor identified by the Department of Labor pursuant to section 77-27,201 is determined by the Department of Revenue to be entitled to a refund of twenty-five dollars or more, the Department of Revenue shall notify the Department of Labor that a refund is pending.

(2) Upon receipt of the notification, the Department of Labor shall, within twenty days, send written notification to the debtor of an assertion of its rights to all or a portion of the debtor's refund.

(3) The notification to the debtor shall clearly set forth the basis for the claim to the refund, the intention to apply the refund against the debt, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the Department of Labor within twenty days of the date of the mailing of the notice, the mailing address to which the application for a hearing must be sent, and notice that failure to apply for a hearing in writing within the twenty-day period will be deemed a waiver of the opportunity to contest the claim, causing a setoff by default. In the case of a joint income tax return, the notice shall also state the name of the taxpayer named in the return against whom no debt is claimed. There shall be no affirmative duty placed upon the non-owing spouse to initiate an action to receive payment of the noninterceptable amount.

Source:Laws 1993, LB 46, § 6.    


77-27,203. Application for hearing; adjustment to debt.

A written application pursuant to section 77-27,202 by a debtor for a hearing shall be effective upon receipt of the application by the Department of Labor. If the department receives a timely written application contesting its claim to a refund, it shall grant a hearing to the taxpayer to determine whether the claim is valid. If the amount asserted as due and owing is not correct, an adjustment to the claimed amount shall be made. No hearing shall be granted upon issues which have been finally determined.

Source:Laws 1993, LB 46, § 7.    


77-27,204. Appeal; procedure.

Any appeal of an action taken or as a result of a hearing held pursuant to section 77-27,203 shall be in accordance with the Administrative Procedure Act.

Source:Laws 1993, LB 46, § 8.    


Cross References

77-27,205. Final determination; certification of debt; Department of Administrative Services; duties.

Upon the final determination of the amount and validity of the debt due and owing, by means of the hearing provided for in section 77-27,203 or by the taxpayer's default through failure to request a hearing, the Department of Labor shall certify the debt to the Department of Administrative Services within twenty days from the date of the final determination. Upon receipt of the certified debt amount from the Department of Labor, the Department of Administrative Services shall deduct an amount equal to the certified debt from the refund due the debtor, up to the amount of the refund, and shall transfer such amount to the Department of Labor. The Department of Administrative Services shall refund any remaining balance to the debtor as if the setoff had not occurred.

Source:Laws 1993, LB 46, § 9.    


77-27,206. Notification to debtor; contents.

When the Department of Labor receives all or a portion of a certified debt pursuant to section 77-27,205, the department shall notify the debtor of the completion of the setoff and amount received. Such notice shall include the final amount of the refund to which the debtor was entitled prior to the setoff, the amount of the certified debt, and the amount of the refund in excess of the debt, if any.

Source:Laws 1993, LB 46, § 10.    


77-27,207. Reimbursement of costs.

The Department of Labor shall reimburse the Department of Revenue and the Department of Administrative Services for all reasonable and necessary costs incurred in setting off debts pursuant to sections 77-27,197 to 77-27,209.

Source:Laws 1993, LB 46, § 11.    


77-27,208. Setoffs; priorities.

Setoffs against state income tax refunds shall have priority in the following order:

(1) Setoffs by the Department of Health and Human Services;

(2) Setoffs by the Internal Revenue Service;

(3) Setoffs by the Department of Labor; and

(4) Setoffs by the Department of Motor Vehicles.

Source:Laws 1993, LB 46, § 12;    Laws 1996, LB 1044, § 810;    Laws 1997, LB 307, § 211;    Laws 1997, LB 720, § 24.    


77-27,209. Rules and regulations.

The Department of Labor shall adopt and promulgate rules and regulations necessary to carry out sections 77-27,197 to 77-27,209.

Source:Laws 1993, LB 46, § 13.    


77-27,210. Legislative intent.

It is the intent of the Legislature to establish and maintain a procedure to set off against a debtor's state income tax refund any debt owed to the Department of Motor Vehicles which has accrued as a result of an individual's liability for motor fuel taxes pursuant to section 66-1405.

Source:Laws 1997, LB 720, § 25.    


77-27,211. Collection system; departments implement.

The Department of Revenue, the Department of Administrative Services, and the Department of Motor Vehicles shall develop and implement a collection system to carry out the intent of section 77-27,210.

Source:Laws 1997, LB 720, § 26.    


77-27,212. Terms, defined.

For purposes of sections 77-27,210 to 77-27,221:

(1) Debt means motor fuel taxes due and payable to the Department of Motor Vehicles pursuant to section 66-1405; and

(2) Refund means any Nebraska state income tax refund which the Department of Revenue determines to be due an individual, corporate, or business taxpayer. In the case of a joint income tax return, it shall be presumed that each partner to the marriage submitting such return contributed one-half of the earnings upon which the refund is based. The presumption may be contested by the state, the debtor, and the innocent spouse by virtue of the hearing process prescribed in section 77-27,216.

Source:Laws 1997, LB 720, § 27.    


77-27,213. Collection remedy; cumulative.

The collection remedy authorized by sections 77-27,210 to 77-27,221 shall be in addition to and not in substitution for any other remedy available by law.

Source:Laws 1997, LB 720, § 28.    


77-27,214. Debt; submission for collection; when.

The Department of Motor Vehicles may submit any debt of twenty-five dollars or more to the Department of Revenue for collection pursuant to sections 77-27,210 to 77-27,221 except when the validity of the debt has not been finally determined by the debtor's exercise or failure to exercise all applicable appeal rights.

Source:Laws 1997, LB 720, § 29.    


77-27,215. Department of Motor Vehicles; Department of Revenue; notifications required.

(1) If a debtor identified by the Department of Motor Vehicles pursuant to section 77-27,214 is determined by the Department of Revenue to be entitled to a refund of twenty-five dollars or more, the Department of Revenue shall notify the Department of Motor Vehicles that a refund is pending.

(2) Upon receipt of the notification, the Department of Motor Vehicles shall, within twenty days, send written notification to the debtor of an assertion of its rights to all or a portion of the debtor's refund.

(3) The notification to the debtor shall clearly set forth the basis for the claim to the refund, the intention to apply the refund against the debt, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the Department of Motor Vehicles within twenty days after the date of the mailing of the notice, the mailing address to which the application for a hearing must be sent, and notice that failure to apply for a hearing in writing within the twenty-day period will be deemed a waiver of the opportunity to contest the claim, causing a setoff by default. In the case of a joint income tax return, the notice shall also state the name of the taxpayer named in the return against whom no debt is claimed. There shall be no affirmative duty placed upon the non-owing spouse to initiate an action to receive payment of the noninterceptable amount.

Source:Laws 1997, LB 720, § 30.    


77-27,216. Application for hearing; adjustment to debt.

A written application pursuant to section 77-27,215 by a debtor for a hearing shall be effective upon receipt of the application by the Department of Motor Vehicles. If the department receives a timely written application contesting its claim to a refund, it shall grant a hearing to the taxpayer to determine whether the claim is valid. If the amount asserted as due and owing is not correct, an adjustment to the claimed amount shall be made. No hearing shall be granted upon issues which have been finally determined.

Source:Laws 1997, LB 720, § 31.    


77-27,217. Appeal; procedure.

Any appeal of an action taken or as a result of a hearing held pursuant to section 77-27,216 shall be in accordance with the Administrative Procedure Act.

Source:Laws 1997, LB 720, § 32.    


Cross References

77-27,218. Final determination; certification of debt; Department of Administrative Services; duties.

Upon the final determination of the amount and validity of the debt due and owing, by means of the hearing provided for in section 77-27,216 or by the taxpayer's default through failure to request a hearing, the Department of Motor Vehicles shall certify the debt to the Department of Administrative Services within twenty days from the date of the final determination. Upon receipt of the certified debt amount from the Department of Motor Vehicles, the Department of Administrative Services shall deduct an amount equal to the certified debt from the refund due the debtor, up to the amount of the refund, and shall transfer such amount to the Department of Motor Vehicles. The Department of Administrative Services shall refund any remaining balance to the debtor as if the setoff had not occurred.

Source:Laws 1997, LB 720, § 33.    


77-27,219. Notification to debtor; contents.

When the Department of Motor Vehicles receives all or a portion of a certified debt pursuant to section 77-27,218, the department shall notify the debtor of the completion of the setoff and amount received. Such notice shall include the final amount of the refund to which the debtor was entitled prior to the setoff, the amount of the certified debt, and the amount of the refund in excess of the debt, if any.

Source:Laws 1997, LB 720, § 34.    


77-27,220. Reimbursement of costs.

The Department of Motor Vehicles shall reimburse the Department of Revenue and the Department of Administrative Services for all reasonable and necessary costs incurred in setting off debts pursuant to sections 77-27,210 to 77-27,221.

Source:Laws 1997, LB 720, § 35.    


77-27,221. Rules and regulations.

The Department of Motor Vehicles shall adopt and promulgate rules and regulations necessary to carry out sections 77-27,210 to 77-27,221.

Source:Laws 1997, LB 720, § 36.    


77-27,222. Internal Revenue Code amendment; Tax Commissioner; duties; report.

(1) Within sixty days after an amendment of the Internal Revenue Code is enacted, the Tax Commissioner shall prepare and submit to the Governor, the Legislative Fiscal Analyst, the Speaker of the Legislature, and the chairpersons of the Executive Board of the Legislative Council, the Revenue Committee of the Legislature, and the Appropriations Committee of the Legislature a report that outlines:

(a) The changes in the Internal Revenue Code; and

(b) The impact of those changes on state revenue and on various classes and types of taxpayers.

(2) Subsection (1) of this section does not apply to an amendment of the Internal Revenue Code if the Tax Commissioner determines that the impact of the amendment on state income tax revenue for the fiscal year that begins during the calendar year in which the amendment is enacted will be less than five million dollars.

Source:Laws 2017, LB217, § 15.    


77-27,223. County; license or occupation tax; authorized; election.

A county may raise revenue by levying and collecting a license or occupation tax on any person, partnership, limited liability company, corporation, or business engaged in the sale of admissions to recreational, cultural, entertainment, or concert events that are subject to sales tax under sections 77-2701.04 to 77-2713 that occur outside any incorporated municipality, but within the boundary limits of the county. The tax shall be uniform in respect to the class upon which it is imposed. The tax shall be based upon a certain percentage of gross receipts from sales in the county of the person, partnership, limited liability company, corporation, or business, and may include sales of other goods and services at such locations and events, not to exceed one and one-half percent. A county may not impose the tax on sales that are within an incorporated city or village. No county shall levy and collect a license or occupation tax under this section unless approved by a majority of those voting on the question at a special, primary, or general election.

Source:Laws 2002, LB 259, § 1;    Laws 2003, LB 282, § 83;    Laws 2021, LB26, § 7;    Laws 2021, LB595, § 11;    Laws 2022, LB984, § 10;    Laws 2023, LB727, § 76.    
Operative Date: June 7, 2023


77-27,224. County board; election; question; effect.

The county board shall submit the question of imposing a license or occupation tax under section 77-27,223 to the registered voters at any primary or general election or at a special election if the county submits a certified copy of the resolution proposing the tax to the election commissioner or county clerk within a reasonable time prior to the primary, general, or special election. The question may include any terms and conditions set forth in the resolution proposing the tax, such as a termination date or the specific project or program for which the revenue will be allocated, and shall include the following language: Shall the county board impose a license or occupation tax upon any person, partnership, limited liability company, corporation, or business engaged in the sale of admissions to recreational, cultural, entertainment, or concert events within the county on which the State of Nebraska is authorized to impose a sales tax? If a majority of those voting on the question are in favor of the tax, then the county board shall be empowered to impose the tax and shall forthwith proceed to impose the tax. If a majority of those voting on the question are opposed to the tax, then the county board shall not impose the tax.

Source:Laws 2002, LB 259, § 2.    


77-27,225. Election; notice.

The county board shall give notice of the submission of the question of imposing a license or occupation tax under section 77-27,223 not more than thirty days nor less than ten days prior to the election, by publication one time in one or more newspapers published in or of general circulation in the county in which such question is to be submitted. The notice shall be in addition to any other notice required under the general election laws of this state.

Source:Laws 2002, LB 259, § 3.    


77-27,226. Petition to submit question.

Whenever, at least forty-five days prior to any county or state election, the registered voters of the county, equal in number to ten percent of the votes cast at the last preceding county election, petition the county board to submit the question of imposing a license or occupation tax under section 77-27,223, the county board shall submit the question at the next primary, general, or special election.

Source:Laws 2002, LB 259, § 4.    


77-27,227. Submission of question; limitation.

The question of imposing a license or occupation tax under section 77-27,223 which has been submitted to the registered voters and failed shall not be submitted to the registered voters of the county again until twenty-three months after such failure.

Source:Laws 2002, LB 259, § 5.    


77-27,228. Repealed. Laws 2015, LB 3, § 3.

77-27,229. Repealed. Laws 2015, LB 3, § 3.

77-27,230. Repealed. Laws 2015, LB 3, § 3.

77-27,231. Repealed. Laws 2015, LB 3, § 3.

77-27,232. Repealed. Laws 2015, LB 3, § 3.

77-27,233. Repealed. Laws 2015, LB 3, § 3.

77-27,234. Repealed. Laws 2015, LB 3, § 3.

77-27,235. Renewable energy tax credit; Department of Revenue; powers.

(1) Any producer of electricity generated by a new renewable electric generation facility shall earn a renewable energy tax credit. For electricity generated on or after July 14, 2006, and before October 1, 2007, the credit shall be .075 cent for each kilowatt-hour of electricity generated by a new renewable electric generation facility. For electricity generated on or after October 1, 2007, and before January 1, 2010, the credit shall be .1 cent for each kilowatt-hour of electricity generated by a new renewable electric generation facility. For electricity generated on or after January 1, 2010, and before January 1, 2013, the credit shall be .075 cent per kilowatt-hour for electricity generated by a new renewable electric generation facility. For electricity generated on or after January 1, 2013, the credit shall be .05 cent per kilowatt-hour for electricity generated by a new renewable electric generation facility. The credit may be earned for production of electricity for ten years after the date that the facility is placed in operation on or after July 14, 2006.

(2) For purposes of this section:

(a) Electricity generated by a new renewable electric generation facility means electricity that is exclusively produced by a new renewable electric generation facility;

(b) Eligible renewable resources means wind, moving water, solar, geothermal, fuel cell, methane gas, or photovoltaic technology; and

(c) New renewable electric generation facility means an electrical generating facility located in this state that is first placed into service on or after July 14, 2006, which utilizes eligible renewable resources as its fuel source.

(3) The credit allowed under this section may be used to reduce the producer's Nebraska income tax liability or to obtain a refund of state sales and use taxes paid by the producer of electricity generated by a new renewable electric generation facility. A claim to use the credit for refund of the state sales and use taxes paid, either directly or indirectly, by the producer may be filed quarterly for electricity generated during the previous quarter by the twentieth day of the month following the end of the calendar quarter. The credit may be used to obtain a refund of state sales and use taxes paid during the quarter immediately preceding the quarter in which the claim for refund is made, except that the amount refunded under this subsection shall not exceed the amount of the state sales and use taxes paid during the quarter.

(4) The Department of Revenue may adopt and promulgate rules and regulations to permit verification of the validity and timeliness of any renewable energy tax credit claimed.

(5) The total amount of renewable energy tax credits that may be used by all taxpayers shall be limited to fifty thousand dollars without further authorization from the Legislature.

(6) The credit allowed under this section may not be claimed by a producer who received a sales tax exemption under section 77-2704.57 for the new renewable electric generation facility.

(7) Interest shall not be allowed on any refund paid under this section.

Source:Laws 2006, LB 872, § 2;    Laws 2007, LB367, § 24;    Laws 2011, LB360, § 3;    Laws 2015, LB261, § 11.    


77-27,236. Biodiesel facility tax credit; conditions; facility; requirements; information not public record.

(1) A taxpayer who makes an investment after January 1, 2008, and prior to January 1, 2015, in a biodiesel facility shall receive a nonrefundable income tax credit as provided in this section.

(2) The credit provided in subsection (1) of this section shall be equal to thirty percent of the amount invested by the taxpayer in a biodiesel facility. The credit shall be taken over at least four taxable years subject to the following conditions:

(a) No more than ten percent of the credit provided for in subsection (1) of this section shall be taken in each of the first two taxable years the biodiesel facility produces B100 and no more than fifty percent of the credit provided for in subsection (1) of this section shall be taken in the third taxable year the biodiesel facility produces B100. The credit allowed under subsection (1) of this section shall not exceed fifty percent of the taxpayer's liability in any tax year;

(b) Any amount of credit not allowed because of the limitations in this section may be carried forward for up to fifteen taxable years after the taxable year in which the investment was made. The aggregate maximum income tax credit a taxpayer may obtain is two hundred fifty thousand dollars;

(c) The investment shall be at risk in the biodiesel facility. The investment shall be in the form of a purchase of an ownership interest or the right to receive payment of dividends from the biodiesel facility and shall remain in the business for at least three years. The Tax Commissioner may recapture any credits used if the investment does not remain invested for the three-year period. An investment placed in escrow does not qualify under this subdivision;

(d) The entire amount of the investment shall be expended by the biodiesel facility for plant, equipment, research and development, marketing and sales activity, or working capital;

(e) A partnership, a subchapter S corporation, a limited liability company that for tax purposes is treated like a partnership, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, or any other pass-through entity that invests in a biodiesel facility shall be considered to be the taxpayer for purposes of the credit limitations. Except for the limitation under subdivision (2)(a) of this section, the amount of the credit allowed to a pass-through entity shall be determined at the partnership, corporate, cooperative, or other organizational level. The amount of the credit determined at the partnership, corporate, cooperative, or other organizational level shall be allowed to the partners, members, or other owners in proportion to their respective ownership interests in the pass-through entity;

(f) The credit shall be taken only if (i) the biodiesel facility produces B100, (ii) the biodiesel facility in which the investment was made produces at a rate of at least seventy percent of its rated capacity continuously for at least one week during the first taxable year the credit is taken and produces at a rate of at least seventy percent of its rated capacity over a six-month period during each of the next two taxable years the credit is taken, (iii) all processing takes place at the biodiesel facility in which the investment was made and which is located in Nebraska, and (iv) at least fifty-one percent of the ownership interest of the biodiesel facility is held by Nebraska resident individuals or Nebraska entities; and

(g) The biodiesel facility shall provide the Department of Revenue written evidence substantiating that the biodiesel facility has received the requisite authority from the Department of Environment and Energy and from the United States Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives. The biodiesel facility shall annually provide an analysis to the Department of Revenue of samples of the product collected according to procedures specified by the department. The analysis shall be prepared by an independent laboratory meeting standards of the International Organization for Standardization. Prior to collecting the samples, the biodiesel facility shall notify the department which may observe the sampling procedures utilized by the biodiesel facility to obtain the samples to be submitted for independent analysis.

(3) Any biodiesel facility for which credits are granted shall, whenever possible, employ workers who are residents of the State of Nebraska.

(4) Trade secrets, academic and scientific research work, and other proprietary or commercial information which may be filed with the Tax Commissioner shall not be considered to be public records as defined in section 84-712.01 if the release of such trade secrets, work, or information would give advantage to business competitors and serve no public purpose. Any person seeking release of the trade secrets, work, or information as a public record shall demonstrate to the satisfaction of the department that the release would not violate this section.

(5) For purposes of this section:

(a) Biodiesel facility means a plant or facility related to the processing, marketing, or distribution of biodiesel; and

(b) B100 means pure biodiesel containing mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated as B100, and meeting the American Society for Testing and Materials standard, ASTM D6751.

Source:Laws 2007, LB343, § 2;    Laws 2019, LB302, § 102.    


77-27,237. Out-of-state retailers; collect and remit sales tax; Department of Revenue; duties.

If the federal government passes a law that expands the state's authority to require out-of-state retailers to collect and remit the tax imposed under section 77-2703 on purchases by Nebraska residents and the state collects additional revenue under section 77-2703 as a result of such federal law, then the Department of Revenue shall determine the amount of such additional revenue collected during the first twelve months following the date on which the state begins collecting such additional revenue. The department shall certify such amount to the Governor, the Legislature, and the State Treasurer, and the certified amount shall be used for purposes of subdivision (2)(d) of section 77-27,132. This section terminates three years after August 30, 2015.

Source:Laws 2015, LB200, § 1.    


77-27,238. Temporary Assistance for Needy Families program recipient; employer tax credit; Department of Revenue; report; contents.

(1) For taxable years beginning or deemed to begin on or after January 1, 2017, there shall be allowed to an employer of any eligible employee a nonrefundable credit, for not more than two years, against the income tax imposed by the Nebraska Revenue Act of 1967 in the amount of twenty percent of the employer's annual expenditures for any of the following services that are provided to eligible employees and that are incidental to the employer's business:

(a) The payment of tuition at a Nebraska public institution of postsecondary education or the payment of the costs associated with a high school equivalency program for eligible employees; and

(b) The provision of transportation of eligible employees to and from work.

(2) The credit allowed under this section for any taxable year shall not exceed the employer's actual tax liability for such taxable year.

(3) The Department of Revenue shall submit a report electronically to the Clerk of the Legislature on or before July 1 of each year on (a) the number of employers claiming a credit under this section and (b) the number of eligible employees receiving the services for which credits are claimed.

(4) The Department of Revenue, in consultation with the Department of Health and Human Services, shall develop a process to verify that any employer claiming credits under this section qualifies for such credits.

(5) The Department of Revenue may adopt and promulgate rules and regulations necessary to carry out this section.

(6) For purposes of this section, eligible employee means a parent or caretaker relative (a) who is a member of a unit that received benefits under the state or federally funded Temporary Assistance for Needy Families program established in 42 U.S.C. 601 et seq., for any nine months of the eighteen-month period immediately prior to the employee's hiring date and (b) whose hiring date is on or after the first day of the taxable year for which the credit is claimed.

Source:Laws 2016, LB774, § 10;    Laws 2017, LB217, § 19.    


77-27,239. Online hosting platform; Tax Commissioner; agreement authorized; powers.

(1) For purposes of this section, online hosting platform means a marketplace connected by computer to one or more other computers or networks, as through a commercial electronic information service or the Internet, through which (a) a seller or hotel operator may rent or furnish any room or rooms, lodgings, or accommodations in a hotel, a motel, an inn, a tourist camp, a tourist cabin, or any other place, (b) such room or rooms, lodgings, or accommodations may be advertised or listed, and (c) a purchaser or occupant may arrange for the occupancy of such room or rooms, lodgings, or accommodations.

(2) The Tax Commissioner may enter into an agreement with an online hosting platform to permit the online hosting platform to collect and pay the applicable sales taxes imposed under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, the Nebraska Visitors Development Act, and sections 13-318 to 13-326 and 13-2813 to 13-2816 on behalf of the seller or hotel operator otherwise required to collect such taxes for transactions consummated through the online hosting platform. Upon entering into such agreement with the online hosting platform, the Tax Commissioner shall waive the tax collection responsibility of a seller or hotel operator for transactions consummated through the online hosting platform for which the online hosting platform has assumed this responsibility. The online hosting platform shall give written notice to each seller or hotel operator which is covered by the agreement between the online hosting platform and the Tax Commissioner.

(3) Upon entering into an agreement with the Tax Commissioner under this section, the online hosting platform shall report aggregate information on the tax return prescribed by the Tax Commissioner, including an aggregate of gross receipts, exemptions, adjustments, and taxable receipts of all transactions subject to the agreement.

Source:Laws 2019, LB57, § 4.    


Cross References

77-27,240. Individual convicted of a felony; employer; tax credit; application; Department of Revenue; powers and duties.

(1) For taxable years beginning or deemed to begin on or after January 1, 2023, under the Internal Revenue Code of 1986, as amended, an employer that employs an eligible employee during the taxable year shall be eligible to receive a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967.

(2) The credit provided in this section shall be an amount equal to ten percent of the wages paid by the employer to the eligible employee during the taxable year, except that:

(a) The credit shall only be allowed with respect to wages paid during the first twelve months of the eligible employee's employment with the employer; and

(b) The total credit taken pursuant to this section with respect to any one eligible employee shall not exceed twenty thousand dollars.

(3) An employer shall apply for the credit provided in this section by submitting an application to the Department of Revenue on a form prescribed by the department. The application shall include:

(a) The number of eligible employees employed by the employer during the taxable year;

(b) The amount of wages paid to each such eligible employee during the taxable year; and

(c) Any other information required by the department to verify the employer's eligibility for the credit.

(4) Subject to subsection (5) of this section, if the Department of Revenue determines that the employer qualifies for a tax credit under this section, the department shall approve the application and certify the amount of the approved credit to the employer.

(5) The Department of Revenue shall consider applications in the order in which they are received and may approve tax credits under this section each year until the total amount of approved credits reaches five million dollars.

(6) The Department of Revenue may adopt and promulgate rules and regulations to carry out this section.

(7) For purposes of this section, eligible employee means an individual who has been convicted of a felony in this or any other state.

Source:Laws 2022, LB917, § 2.    


77-27,241. Food bank, food pantry, or food rescue donation; credit; eligibility; application; tax credit certification; use.

(1) For purposes of this section:

(a) Agricultural producer means an individual or entity whose income is primarily attributable to crop or livestock production in the State of Nebraska;

(b) Department means the Department of Revenue;

(c) Food bank means an organization in this state that:

(i) Is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and

(ii) Distributes food in ten or more counties in Nebraska and qualifies for the Emergency Food Assistance Program administered by the United States Department of Agriculture;

(d) Food pantry means an organization in this state that:

(i) Is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and

(ii) Distributes emergency food supplies to low-income individuals in this state who would otherwise not have access to such food supplies;

(e) Food rescue means an organization in this state that:

(i) Is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and

(ii) Accepts donations of food and delivers such food to food banks or food pantries so that such food may be distributed to low-income individuals in this state;

(f) Grocery store retailer means a retailer located in this state that is primarily engaged in business activities classified as code 445110 under the North American Industry Classification System;

(g) Qualifying agricultural food donation means a donation made by an agricultural producer to a food bank, food pantry, or food rescue of fresh or frozen fruits, vegetables, eggs, dairy products, or meat products grown or produced in the State of Nebraska which meets all applicable quality and labeling standards, along with any other applicable requirements of the food bank, food pantry, or food rescue to which the qualifying agricultural food donation is made; and

(h) Restaurant means a business located in this state that is primarily engaged in business activities classified as code 722511, 722513, 722514, or 722515 under the North American Industry Classification System.

(2) For taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended, a credit against the income tax imposed by the Nebraska Revenue Act of 1967 shall be allowed to:

(a) Any grocery store retailer or restaurant that donates food to a food bank, food pantry, or food rescue during the taxable year; and

(b) Any agricultural producer that makes a qualifying agricultural food donation to a food bank, food pantry, or food rescue during the taxable year.

(3) Subject to subsection (7) of this section, the credit provided in this section shall be a nonrefundable credit in an amount equal to fifty percent of the value of the food donations or qualifying agricultural food donations made during the taxable year, not to exceed two thousand five hundred dollars. Any amount of the credit that the taxpayer is prohibited from claiming in a taxable year may be carried forward to any of the three subsequent taxable years.

(4) For purposes of this section, food donated by a grocery store retailer or restaurant shall be valued at its wholesale value. A qualifying agricultural food donation shall be valued at the prevailing market value of the product at the time of donation, plus the direct cost incurred by the agricultural producer for processing the product.

(5) To receive a credit under this section, a taxpayer shall submit an application to the department in a form and manner prescribed by the department. The application shall include the amount of food donated during the taxable year and any other information required by the department.

(6) If the department determines that an application is complete and that the taxpayer qualifies for credits, the department shall approve the application within the limits set forth in this section and shall certify the amount of credits approved to the taxpayer.

(7) The department may approve zero dollars of credits each year. If the amount of credits requested by qualified taxpayers in any year exceeds such limit, the department shall allocate credits proportionally based on the amounts requested so that the limit is not exceeded.

(8) A taxpayer shall claim the credit by attaching the tax credit certification received from the department under subsection (6) of this section to the taxpayer's tax return.

(9) Any amount relating to such food donations or qualifying agricultural food donations that was subtracted from the taxpayer's federal adjusted gross income or federal taxable income must be added back in the determination of Nebraska adjusted gross income or taxable income before the credit provided in this section may be claimed.

(10) No credit granted under this section shall be transferred, sold, or assigned. No taxpayer shall be eligible to receive a credit under this section if such taxpayer employs persons who are not authorized to work in the United States under federal law. No taxpayer shall be able to claim more than one credit under this section for a single donation.

(11) A food bank, food pantry, or food rescue may accept or reject any food donated under this section for any reason. Any food that is rejected shall not qualify for a credit under this section.

(12) The department may adopt and promulgate rules and regulations to carry out this section.

Source:Laws 2023, LB727, § 77.    
Operative Date: September 2, 2023


77-2801. Property; unpaid taxes; sale; when.

Whenever the state or any of its political subdivisions shall own property upon which there are any unpaid taxes or special assessments and any interest, penalties or costs relating to such taxes or special assessments, and the value of such property is less than the total of such taxes, special assessments, interest, penalties and costs, such property may be sold by the owner and title given as provided in sections 77-2801 to 77-2809.

Source:Laws 1967, c. 483, § 1, p. 1495.


77-2802. Property; unpaid taxes; governing body; certify to county treasurer; certify value of property less than total taxes.

The governing body of the political subdivision owning property described in section 77-2801 and desiring to sell the same shall certify by official action to the county treasurer of the county in which the property is located, the legal description of the property and the street address of such property if within a city or village, that the value of the property is less than the total of all taxes, special assessments and interest, penalties, and cost levied against such property, and that the owner desires that such property be sold.

Source:Laws 1967, c. 483, § 2, p. 1495.


77-2803. Property; unpaid taxes; sale; date.

The county treasurer shall set a date of sale which shall be within two months of the date of the certification made pursuant to section 77-2802 and proceed, as provided in sections 77-2801 to 77-2809, to offer and sell such property to the highest bidder.

Source:Laws 1967, c. 483, § 3, p. 1495.


77-2804. Property; unpaid taxes; sale; notice; procedure if no bid is made.

The county treasurer shall, prior to the sale, cause an advertisement to be printed in a legal newspaper published in the English language in such county or, if none is published in the county, in such a legal newspaper of general circulation in the county at least once a week for three consecutive weeks. Such advertisement shall state the owner of such property and that such property, described by its legal description and if within a city or village by its street address in addition to its legal description, will be sold to the highest bidder on the date set for sale and that a title clear of all liens for taxes, or special assessments and interest, penalties, or costs thereon will be conveyed. If upon the date of sale no bid is made, the county treasurer shall continue such sale until a bid shall have been received, except that the owner, at any time after the date for sale, may cause the selling of the property to be discontinued by notifying the county treasurer of such desire.

Source:Laws 1967, c. 483, § 4, p. 1496; Laws 1986, LB 960, § 40.    


77-2805. Property; unpaid taxes; notice to state and political subdivisions.

Prior to advertising for sale, the county treasurer shall notify the state and all political subdivisions which have any interest in taxes or special assessments levied and assessed against such property of the proposed sale and the date of such sale.

Source:Laws 1967, c. 483, § 5, p. 1496.


77-2806. Property; unpaid taxes; sale; who may purchase.

The state or any other political subdivision may purchase such property.

Source:Laws 1967, c. 483, § 6, p. 1496.


77-2807. Property; unpaid taxes; sale; proceeds; disposition.

The proceeds of such sale shall be first applied toward payment of all taxes or special assessments and all interest, penalties and costs thereon in the same manner as proceeds from tax foreclosure sales. If there are any proceeds remaining, such remainder shall be applied against any other liens held by the owner and if there remain any further proceeds, such proceeds shall be distributed as otherwise provided by law.

Source:Laws 1967, c. 483, § 7, p. 1496.


77-2808. Property; unpaid taxes and costs; cancellation; when.

If after all proceeds have been distributed and there still remains unpaid any portion of taxes, interest and penalties and costs thereon, the county shall by official action cause all such taxes, interest, and penalties and costs, regardless of whether such are for the benefit of the state or any political subdivision, to be stricken from the records of the county. Such action shall forever release such property from such taxes, interest, penalties, and costs thereon.

Source:Laws 1967, c. 483, § 8, p. 1496.


77-2809. Property; unpaid taxes; sale; proceeds insufficient; special assessments, interest, penalty; cancel.

If after the proceeds have been distributed and there still remains unpaid any portion of special assessments, interest, penalties, or costs thereon the governing body of each and every political subdivision interested in the unpaid special assessment shall cause such special assessment, and interest, penalties and costs thereon to be stricken from the records. Such action shall forever release such property from such special assessments and interest, penalties and costs thereon.

Source:Laws 1967, c. 483, § 9, p. 1497.


77-2901. Act, how cited.

Sections 77-2901 to 77-2912 shall be known and may be cited as the Nebraska Job Creation and Mainstreet Revitalization Act.

Source:Laws 2014, LB191, § 1.    


77-2902. Terms, defined.

For purposes of the Nebraska Job Creation and Mainstreet Revitalization Act:

(1) Department means the Department of Revenue;

(2) Eligible expenditure means any cost incurred for the improvement of historically significant real property located in the State of Nebraska, including, but not limited to, qualified rehabilitation expenditures as defined in section 47(c)(2) of the Internal Revenue Code of 1986, as amended, and the related regulations thereunder, if such improvement is in conformance with the standards;

(3) Historically significant real property means a building or an at-grade or aboveground structure used for any purpose, except for a single-family detached residence, which, at the time of final approval of the work by the officer pursuant to section 77-2906, is:

(a) Individually listed in the National Register of Historic Places;

(b)(i) Located within a district listed in the National Register of Historic Places; and

(ii) Determined by the officer as being historically significant to such district;

(c)(i) Individually designated pursuant to a landmark ordinance or resolution enacted by a political subdivision of the state, which ordinance or resolution has been approved by the officer; and

(ii) Determined by the officer as being historically significant; or

(d)(i) Located within a district designated pursuant to a preservation ordinance or resolution enacted by a county, city, or village of the state or political body comprised thereof providing for the rehabilitation, preservation, or restoration of historically significant real property, which ordinance or resolution has been approved by the officer; and

(ii) Determined by the officer as contributing to the historical significance or economic viability of such district;

(4) Improvement means a rehabilitation, preservation, or restoration project that contributes to the basis, functionality, or value of the historically significant real property and has a total cost which equals or exceeds five thousand dollars;

(5) Officer means the State Historic Preservation Officer;

(6) Person means any natural person, political subdivision, limited liability company, partnership, private domestic or private foreign corporation, or domestic or foreign nonprofit corporation certified pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended;

(7) Placed in service means that either (a) a temporary or final certificate of occupancy has been issued for the improvement or (b) the improvement is sufficiently complete to allow for the intended use of the improvement; and

(8) Standards means (a) the Secretary of the Interior's Standards for the Treatment of Historic Properties as promulgated by the United States Department of the Interior or (b) specific standards for the rehabilitation, preservation, and restoration of historically significant real property contained in a duly adopted local preservation ordinance or resolution that has been approved by the officer pursuant to section 77-2903.

Source:Laws 2014, LB191, § 2;    Laws 2023, LB727, § 78.    
Operative Date: September 2, 2023


77-2903. Local preservation ordinance or resolution; approval.

For purposes of establishing standards under subdivision (8)(b) of section 77-2902, the officer shall approve a duly adopted local preservation ordinance or resolution if such ordinance or resolution meets the following requirements:

(1) The ordinance or resolution provides for specific standards and requirements regarding building exteriors that reflect the heritage, values, and character of the political subdivision adopting such ordinance or resolution; and

(2) The ordinance or resolution requires that any building to be rehabilitated, preserved, or restored shall have been originally constructed at least fifty years prior to the proposed rehabilitation, preservation, or restoration and the facade of such building shall not have undergone material structural alteration since its original construction, unless the rehabilitation, preservation, or restoration to be performed proposes to restore the facade to substantially its original condition.

Source:Laws 2014, LB191, § 3;    Laws 2023, LB727, § 79.    
Operative Date: September 2, 2023


77-2904. Credit; amount; claim; approval; procedure.

(1) Any person incurring eligible expenditures may receive a nonrefundable credit against any income tax imposed by the Nebraska Revenue Act of 1967 or any tax imposed pursuant to sections 44-101 to 44-165, 77-907 to 77-918, or 77-3801 to 77-3807 for the year the historically significant real property is placed in service.

(2) For historically significant real property located in a county that includes a city of the metropolitan class or a city of the primary class, the credit shall be equal to twenty-five percent of eligible expenditures. For historically significant real property located in any other county, the credit shall be equal to thirty percent of eligible expenditures. In all cases, the maximum credit allocated to any one project shall be two million dollars.

(3) Any taxpayer that claims a tax credit shall not be required to pay any additional retaliatory tax under section 44-150 as a result of claiming such tax credit. Any tax credit claimed under this section shall be considered a payment of tax for purposes of subsection (1) of section 77-2734.03.

(4) To claim the credit authorized under this section, a person must first apply and receive an allocation of credits and application approval under section 77-2905 and then request and receive final approval under section 77-2906.

(5) Interest shall not be allowed on any refund paid under the Nebraska Job Creation and Mainstreet Revitalization Act.

Source:Laws 2014, LB191, § 4;    Laws 2015, LB261, § 12;    Laws 2016, LB774, § 11;    Laws 2023, LB727, § 80.    
Operative Date: September 2, 2023


Cross References

77-2905. Application for credits; form; contents; officer; review; allocation of credits; notice of determination; denial; appeal; limit on credits; holder of allocation; duties.

(1) Prior to commencing work on the historically significant real property, a person shall file an application for credits under the Nebraska Job Creation and Mainstreet Revitalization Act containing all required information with the officer on a form prescribed by the officer and shall include an application fee established by the officer pursuant to section 77-2907. The application shall include plans and specifications, an estimate of the cost of the project prepared by a licensed architect, licensed engineer, or licensed contractor, and a request for a specific amount of credits based on such estimate. The officer shall review the application and, within twenty-one days after receiving the application, shall determine whether the information contained therein is complete. The officer shall notify the applicant in writing of the determination within five business days after making the determination. If the officer fails to provide such notification as required, the application shall be deemed complete as of the twenty-first day after the application is received by the officer. If the officer determines the application is complete or if the application is deemed complete pursuant to this section, the officer shall reserve for the benefit of the applicant an allocation of credits in the amount specified in the application and determined by the officer to be reasonable and shall notify the applicant in writing of the amount of the allocation. The allocation does not entitle the applicant to an issuance of credits until the applicant complies with all other requirements of the Nebraska Job Creation and Mainstreet Revitalization Act for the issuance of credits. The date the officer determines the application is complete or the date the application is deemed complete pursuant to this section shall constitute the applicant's priority date for purposes of allocating credits under this section. For complete applications receiving an allocation under this section, the officer shall determine whether the application conforms to the standards, and, if so, the officer shall approve such application or approve such application with conditions. If the application does not conform to the standards, the officer shall deny such application. The officer shall promptly provide the person filing the application and the department with written notice of the officer's determination. If the officer does not provide a written notice of his or her determination within thirty days after the date the application is determined or deemed to be complete pursuant to this section, the application shall be deemed approved. The officer shall notify the department of any applications that are deemed approved pursuant to this section. If the officer denies the application, the credits allocated to the applicant under this subsection shall be added to the annual amount available for allocation under subsection (2) of this section. Any denial of an application by the officer pursuant to this section may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

(2) For calendar years beginning before January 1, 2024, the total amount of credits that may be allocated by the officer under this section in any calendar year shall be limited to fifteen million dollars, of which four million dollars shall be reserved for applications seeking an allocation of credits of less than one hundred thousand dollars. For calendar years beginning on or after January 1, 2024, the total amount of credits that may be allocated by the officer under this section in any calendar year shall be limited to two million dollars. If the amount of credits allocated in any calendar year is less than the maximum amount of credits available under this section for that year, the unused amount shall be carried forward to subsequent years and shall be available for allocation in subsequent years until fully utilized, except as otherwise provided in section 77-2912. If the amount of credits reserved for applications seeking an allocation of credits of less than one hundred thousand dollars is not allocated by April 1 of any calendar year, such unallocated credits for the calendar year shall be available for any application seeking an allocation of credits based upon the applicant's priority date as determined by the officer. The officer shall allocate credits based on priority date, from earliest to latest. If the officer determines that the complete applications for credits in any calendar year exceed the maximum amount of credits available under this section for that year, only those applications with a priority date on or before the date on which the officer makes that determination may receive an allocation in that year, and the officer shall not make additional allocations until sufficient credits are available. If the officer suspends allocations of credits pursuant to this section, applications with priority dates on or before the date of such suspension shall retain their priority dates. Once additional credits are available for allocation, the officer shall once again allocate credits based on priority date, from earliest to latest, even if the priority dates are from a prior calendar year.

(3) The holder of an allocation of credits whose application was approved under this section shall start substantial work pursuant to the approved application within twenty-four months after receiving notice of approval of the application or, if no notice of approval is sent by the officer, within twenty-four months after the application is deemed approved pursuant to this section. Failure to comply with this subsection shall result in forfeiture of the allocation of credits received under this section. Any such forfeited allocation shall be added to the aggregate amount of credits available for allocation for the year in which the forfeiture occurred.

(4) Notwithstanding subsection (1) of this section, the person applying for the credit under this section may, at its own risk, incur eligible expenditures up to six months prior to the submission of the application required under subsection (1) of this section if such eligible expenditures are limited to architectural, engineering, accounting, and legal fees and any costs generally related to the protection of the historically significant real property from deterioration.

Source:Laws 2014, LB191, § 5;    Laws 2016, LB774, § 12;    Laws 2023, LB727, § 81.    
Operative Date: September 2, 2023


Cross References

77-2906. Request for final approval; form; approval; when; department; duties; extension; denial; appeal; credit; issuance of certificates; fee; credit carried forward.

(1)(a) Within twelve months after the date on which the historically significant real property is placed in service, a person whose application was approved under section 77-2905 shall file a request for final approval containing all required information with the officer on a form prescribed by the officer and shall include a fee established by the officer pursuant to section 77-2907. The officer shall then determine whether the work substantially conforms to the application approved under section 77-2905. If the work substantially conforms and no other significant improvements have been made to the historically significant real property that do not substantially comply with the standards, the officer shall approve the request for final approval. The person whose request is approved shall then apply to the department to determine the amount of eligible expenditures, calculate the amount of the credit, and issue a certificate to the person evidencing the credit. If the work does not substantially conform to the approved application or if other significant improvements have been made to the historically significant real property that do not substantially comply with the standards, the officer shall deny the request for final approval and provide the person with a written explanation of the decision. The officer shall make a determination on the request for final approval in writing within thirty days after the filing of the request. If the officer does not make a determination within thirty days after the filing of the request, the request shall be deemed approved and the person may apply to the department to determine the amount of eligible expenditures, calculate the amount of the credit, and issue a certificate evidencing the credit.

(b) The department shall determine the amount of eligible expenditures, calculate the amount of the credit, and issue one or more certificates evidencing the credit within sixty days after receiving an application pursuant to subdivision (1)(a) of this section. The person filing the application and the department may also agree to extend the sixty-day period, but such extension shall not exceed an additional thirty days. If the department does not determine the amount of eligible expenditures, calculate the amount of the credit, and issue one or more certificates evidencing the credit within such sixty-day period or agreed-upon longer period, the credit shall be deemed to have been issued by the department for the amount requested in such person's application, except that such amount shall not exceed one hundred ten percent of the amount of credits allocated by the officer under section 77-2905 and such amount shall not increase or decrease the total amount of credits that may be allocated by the officer under section 77-2905 in any calendar year.

(c) Any denial of a request for final approval by the officer or any determination of the amount of eligible expenditures or calculation of the amount of the credit by the department pursuant to this section may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

(2) The department shall divide the credit and issue multiple certificates to a person who qualifies for the credit upon reasonable request.

(3) In calculating the amount of the credits to be issued pursuant to this section, the department may issue credits in an amount that differs from the amount of credits allocated by the officer under section 77-2905 if such credits are supported by eligible expenditures as determined by the department, except that the department shall not issue credits in an amount exceeding one hundred ten percent of the amount of credits allocated by the officer under section 77-2905. If the amount of credits to be issued under this section is more than the amount of credits allocated by the officer pursuant to section 77-2905, the department shall notify the officer of the difference and such amount shall be subtracted from the annual amount available for allocation under section 77-2905. If the amount of credits to be issued under this section is less than the amount of credits allocated by the officer pursuant to section 77-2905, the department shall notify the officer of the difference and such amount shall be added to the annual amount available for allocation under section 77-2905.

(4) The department shall not issue any certificates for credits under this section until the recipient of the credit has paid to the department:

(a) A fee equal to one-quarter of one percent of the credit amount. The department shall remit such fees to the State Treasurer for credit to the Civic and Community Center Financing Fund; and

(b) A fee equal to six-tenths of one percent of the credit amount. The department shall remit such fees to the State Treasurer for credit to the Department of Revenue Enforcement Fund.

(5) If the recipient of the credit is (a) a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, (b) a partnership, or (c) a limited liability company, the credit may be claimed by the shareholders of the corporation, the partners of the partnership, or the members of the limited liability company in the same manner as those shareholders, partners, or members account for their proportionate shares of the income or losses of the corporation, partnership, or limited liability company, or as provided in the bylaws or other executed agreement of the corporation, partnership, or limited liability company. Credits granted to a partnership, a limited liability company taxed as a partnership, or other multiple owners of property shall be passed through to the partners, members, or owners, respectively, on a pro rata basis or pursuant to an executed agreement among the partners, members, or owners documenting any alternate distribution method.

(6) Subject to section 77-2912, any credit amount that is unused may be carried forward to subsequent tax years until fully utilized.

(7) Credits allowed under this section may be claimed for taxable years beginning or deemed to begin on or after January 1, 2015, under the Internal Revenue Code of 1986, as amended.

Source:Laws 2014, LB191, § 6;    Laws 2020, LB310, § 1.    


Cross References

77-2907. Fees.

The officer shall establish and collect the application fee required under section 77-2905 and the fee for the request for final approval required under section 77-2906. Such fees shall be in amounts sufficient to offset the costs of processing and monitoring applications filed under the Nebraska Job Creation and Mainstreet Revitalization Act. Such fees shall be remitted by the officer to the State Treasurer for credit to the Nebraska Job Creation and Mainstreet Revitalization Fund.

Source:Laws 2014, LB191, § 7.    


77-2908. Recapture of credits; written notice; procedure; amount.

All or a portion of the credits received under the Nebraska Job Creation and Mainstreet Revitalization Act shall be subject to recapture by the department from the foreclosure of a lien which shall, as a condition of the department issuing credits under the act, be imposed on the historically significant real property as a lien having the priority of a tax lien pursuant to the filing of a notice of lien. Credits shall be subject to recapture from the person owning the historically significant real property on the date the officer determines the recapture event occurred if at any time during the five years after the historically significant real property is placed into service the officer determines the historically significant real property has been the subject of work not in substantial conformance with the approved application or the documents from which the credit was calculated. If the person owning the historically significant real property on the date the officer determines the recapture event occurred is a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, a partnership, or a limited liability company, the liability of the shareholders, partners, or members for recapture shall be proportionate to their ownership in the applicable corporation, partnership, or limited liability company. Any action to recapture credits under this section may proceed only after a written notice is given to the person owning the historically significant real property on the date the officer determines the recapture event occurred and that person is allowed a six-month cure period. Thereafter, the credit shall be subject to recapture as follows:

(1) If the event causing recapture occurs during the first year after the historically significant real property is placed into service, one hundred percent of the credit may be recaptured;

(2) If the event causing recapture occurs during the second year after the historically significant real property is placed into service, eighty percent of the credit may be recaptured;

(3) If the event causing recapture occurs during the third year after the historically significant real property is placed into service, sixty percent of the credit may be recaptured;

(4) If the event causing recapture occurs during the fourth year after the historically significant real property is placed into service, forty percent of the credit may be recaptured; and

(5) If the event causing recapture occurs during the fifth year after the historically significant real property is placed into service, twenty percent of the credit may be recaptured.

Source:Laws 2014, LB191, § 8.    


77-2909. Transfer, sale, or assignment of credit; limitation; use; notice; department; duties; powers.

(1) Persons who receive the original issuance of credits from the department under section 77-2906 may transfer, sell, or assign up to fifty percent of such credits to any person or legal entity. If the person who receives the original issuance of credits from the department is a political subdivision or a tax-exempt entity under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, such fifty-percent limitation shall not apply.

(2) The credits allowed to be transferred, sold, or assigned pursuant to subsection (1) of this section may thereafter be transferred, sold, or assigned multiple times, either in whole or in part, by or to any person or legal entity.

(3) Any person acquiring credits under this section may use such credits to offset up to one hundred percent of such person's income tax due under the Nebraska Revenue Act of 1967 or any tax due under sections 44-101 to 44-165, 77-907 to 77-918, or 77-3801 to 77-3807 in the year the historically significant real property is placed in service and in subsequent years until all credits have been utilized, except as otherwise provided in section 77-2912. Any taxpayer that claims a tax credit shall not be required to pay any additional retaliatory tax under section 44-150 as a result of claiming such tax credit. Any tax credit claimed shall be considered a payment of tax for purposes of subsection (1) of section 77-2734.03.

(4) The person transferring, selling, or assigning the credits shall notify the officer and the department in writing within fifteen calendar days following the effective date of the transfer, sale, or assignment and shall remit to the department the certificate issued for the credits that were transferred, sold, or assigned. The department shall then issue new certificates as necessary to effectuate the transfer, sale, or assignment. The issuance of the new credits by the department shall perfect the transfer, sale, or assignment of credits.

(5) The department shall develop a system to track the transfer, sale, and assignment of credits and to certify the ownership of the credits.

(6) The department shall have, with respect to the Nebraska Job Creation and Mainstreet Revitalization Act, all authority granted to it in section 77-27,119.

Source:Laws 2014, LB191, § 9;    Laws 2016, LB774, § 13.    


Cross References

77-2910. Rules and regulations; Nebraska State Historical Society; Department of Revenue; joint report; contents.

(1) The Nebraska State Historical Society and the department may each adopt and promulgate rules and regulations to carry out the Nebraska Job Creation and Mainstreet Revitalization Act.

(2) The Nebraska State Historical Society and the department shall annually issue a joint report electronically to the Revenue Committee of the Legislature no later than December 31 of each year. The report shall include, but not be limited to, (a) the total number of applications submitted under the Nebraska Job Creation and Mainstreet Revitalization Act, (b) the number of applications approved or conditionally approved, (c) the number of applications outstanding, if any, (d) the number of applications denied and the basis for denial, (e) the total amount of eligible expenditures approved, (f) the total amount of credits issued, claimed, and still available for use, (g) the total amount of fees collected, (h) the name and address location of each historically significant real property identified in each application, whether approved or denied, (i) the total amount of credits transferred, sold, and assigned and a certification of the ownership of the credits, (j) the total amount of credits claimed against each tax type by category, and (k) the total amount of credits recaptured, if any. No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2014, LB191, § 10;    Laws 2023, LB727, § 82.    
Operative Date: September 2, 2023


77-2911. Nebraska Job Creation and Mainstreet Revitalization Fund; created; use; investment.

The Nebraska Job Creation and Mainstreet Revitalization Fund is created. The fund shall be administered by the Nebraska State Historical Society and shall consist of all fees credited to the fund pursuant to section 77-2907. The fund shall be used to administer and enforce the Nebraska Job Creation and Mainstreet Revitalization Act. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 2014, LB191, § 11.    


Cross References

77-2912. Application deadline; allocation, issuance, or use of credits deadline.

There shall be no new applications filed under the Nebraska Job Creation and Mainstreet Revitalization Act after December 31, 2030. All applications and all credits pending or approved before such date shall continue in full force and effect, except that no credits shall be allocated under section 77-2905, issued under section 77-2906, or used on any tax return or similar filing after December 31, 2035.

Source:Laws 2014, LB191, § 12;    Laws 2015, LB538, § 11;    Laws 2016, LB1022, § 7;    Laws 2023, LB727, § 83.    
Operative Date: September 2, 2023


77-3001. Terms, defined.

For purposes of the Mechanical Amusement Device Tax Act, unless the context otherwise requires:

(1) Cash device means any mechanical amusement device capable of awarding (a) cash, (b) anything redeemable for cash, (c) gift cards, credit, or other instruments which have a value denominated by reference to an amount of currency, or (d) anything redeemable for anything described in subdivision (c) of this subdivision;

(2) Department means the Department of Revenue;

(3) Distributor means any person who sells, leases, or delivers possession or custody of a machine or mechanical device to operators thereof for a consideration either directly or indirectly received;

(4) Mechanical amusement device means any machine which, upon insertion of a coin, currency, credit card, or substitute into the machine, operates or may be operated or used for a game, contest, or amusement of any description, such as, by way of example, but not by way of limitation, pinball games, shuffleboard, bowling games, radio-ray rifle games, baseball, football, racing, boxing games, electronic video games of skill, and coin-operated pool tables. Mechanical amusement device also includes game and draw lotteries and coin-operated automatic musical devices. Mechanical amusement device does not mean vending machines which dispense tangible personal property, devices located in private homes for private use, pickle card dispensing devices which are required to be registered with the department pursuant to section 9-345.03, gaming devices or limited gaming devices as defined in and operated pursuant to the Nebraska Racetrack Gaming Act, or devices which are mechanically constructed in a manner that would render their operation illegal under the laws of the State of Nebraska;

(5) Operator means any person who operates a place of business in which a machine or device owned by him or her is physically located or any person who places and who either directly or indirectly controls or manages any machine or device;

(6) Person means an individual, partnership, limited liability company, society, association, joint-stock company, corporation, estate, receiver, lessee, trustee, assignee, referee, or other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals;

(7) Whenever in the act, the words machine or device are used, they refer to mechanical amusement device;

(8) Whenever in the act, the words electronic video games of skill, games of skill, or skill-based devices are used, they refer to mechanical amusement devices which produce an outcome predominantly caused by skill and not chance; and

(9) Whenever in the act, the words machine, device, person, operator, or distributor are used, the words in the singular include the plural and in the plural include the singular.

Source:Laws 1969, c. 635, § 1, p. 2541; Laws 1977, LB 353, § 1;    Laws 1993, LB 121, § 514;    Laws 1997, LB 317, § 1;    Initiative Law 2020, No. 430, § 12; Laws 2021, LB1, § 1.    


Cross References

Annotations

77-3002. Operator; license; application; limitations; renewal; fees; service of process.

(1) Any operator shall be required to procure an annual license from the Tax Commissioner permitting him or her to operate machines or devices within the State of Nebraska. The Tax Commissioner, upon the application of any person, may issue a license, except that if the applicant (a) is not of good character and reputation in the community in which he or she resides, (b) has been convicted of or has pleaded guilty to a felony under the laws of the State of Nebraska, any other state, or of the United States, or (c) has been convicted of or has pleaded guilty to being the proprietor of a gambling house, or of any other crime or misdemeanor opposed to decency and morality, no license shall be issued. If the applicant is a corporation whose majority stockholders could not obtain a license, then such corporation shall not be issued a license. If the applicant is an individual, the application shall include the applicant's social security number. Procuring a license shall constitute sufficient contact with this state for the exercise of personal jurisdiction over such person in any action arising out of the operation of machines or devices in this state.

(2)(a) For the period beginning July 1, 1998, through December 31, 1999, if the applicant operates ten or more machines, the application shall be accompanied by a fee of two hundred fifty dollars, and such license will remain in effect until December 31, 1999. If the applicant operates fewer than ten machines, no fee is due. Any licensee that places additional machines into operation during this period which results in a total of ten or more machines in operation becomes subject to the two-hundred-fifty-dollar fee.

(b) Beginning January 1, 2000, the application shall be filed on or before January 1 of each year, and no license fee will be required.

Source:Laws 1969, c. 635, § 3, p. 2542; Laws 1982, LB 928, § 68; Laws 1983, LB 447, § 92;    Laws 1997, LB 317, § 2;    Laws 1997, LB 752, § 213.    


77-3003. Distributor; license; application; limitations; fees.

Any distributor shall be required to procure an annual license from the Tax Commissioner permitting him or her to sell, lease, or deliver possession or custody of a machine or device within the State of Nebraska. The Tax Commissioner, upon the application of any person, may issue a license, subject to the same limitations as an operator's license under section 77-3002. If the applicant is an individual, the application shall include the applicant's social security number. For applications filed for the period beginning July 1, 1998, through December 31, 1999, such application shall be accompanied by a fee of two hundred fifty dollars, and the license shall remain in effect until December 31, 1999. Beginning January 1, 2000, the application shall be filed on or before January 1 of each year, and no license fee will be required.

Source:Laws 1969, c. 635, § 3, p. 2542; Laws 1982, LB 928, § 68; Laws 1997, LB 317, § 3;    Laws 1997, LB 752, § 214.    


77-3003.01. Seizure of mechanical amusement device; penalty; determination cash device complies with act; procedure; Tax Commissioner; powers and duties; mechanical amusement device decal; final decision; appeal; retail establishment; limits on devices; annual decal fee.

(1)(a) The Tax Commissioner or his or her agents or employees, at the direction of the Tax Commissioner, or any peace officer of this state may seize, without a warrant, any mechanical amusement device if there is cause to believe such device is not in compliance with the Mechanical Amusement Device Tax Act or any rules and regulations adopted and promulgated under the act or if the department determines the response to a request for information is materially deficient without good cause. In addition to seizure, any person placing in service or operating a cash device constituting a game of chance within this state shall be subject to a penalty of one thousand dollars for each day of such operation.

(b) For purposes of this subsection, a mechanical amusement device is subject to seizure and penalties as if it were a game of chance if:

(i) The mechanical amusement device is a cash device; and

(ii) The mechanical amusement device does not bear an unexpired decal as required under the Mechanical Amusement Device Tax Act.

(c) This section does not apply to any device (i) used in any bingo, lottery by the sale of pickle cards, or other lottery, raffle, or gift enterprise conducted in accordance with the Nebraska Bingo Act, Nebraska County and City Lottery Act, Nebraska Lottery and Raffle Act, Nebraska Pickle Card Lottery Act, Nebraska Small Lottery and Raffle Act, State Lottery Act, or section 9-701, (ii) used for a prize contest as defined in section 28-1101, or (iii) specifically authorized by the laws of this state.

(2) To receive a determination from the department that a cash device is in compliance with the Mechanical Amusement Device Tax Act and any rules and regulations adopted and promulgated under the act, a manufacturer or distributor of the device shall:

(a) Submit an application to the Tax Commissioner containing information regarding the device's location, software, Internet connectivity, and configuration as may be required by the Tax Commissioner;

(b) Submit an application fee of five hundred dollars;

(c) Provide a specimen of the proposed device;

(d) Provide all supporting evidence, including a report by an independent testing authority preapproved by the Tax Commissioner, to the Tax Commissioner indicating that, under all configurations, settings, and modes of operation, operation of the device constitutes a game of skill and not a game of chance and the use, operation, sale, or manufacture of the device would not constitute a violation of section 28-1107; and

(e) Provide an affidavit from the distributor affirming that no functional changes in hardware or software will be made to the approved device without further approval from the Tax Commissioner.

(3) The Tax Commissioner shall issue a response in writing to the applicant within forty-five days after the applicant has completed and submitted all application requirements. The Tax Commissioner's response shall state the reason for any denial or the reasons a determination cannot be made.

(4)(a) A device shall not be considered a game of skill if one or more of the following apply:

(i) The ability of any player to succeed at the game played on the device is impacted by the number or ratio of prior wins to prior losses of players playing such device;

(ii) The ability of the player to succeed at the game played on the device is impacted by the ability of any person to set a specified win-loss ratio for the device or by the device having a predetermined win-loss percentage;

(iii) The outcome of the game played on the device can be controlled by a source other than any player playing the device;

(iv) The success of any player is or may be determined by a chance event which cannot be altered by player action;

(v) There is no possibility for the player to win every game played on the device or there are unwinnable games or game modes on the device;

(vi) The ability of any player to succeed at the game played on the device requires the exercise of skill that no reasonable player could exercise; or

(vii) The primary determination of the prize amount is determined by the presentation or generation of a particular puzzle or group of symbols dealt to the player and the player does not have control over the puzzle or group of symbols presented.

(b) For purposes of this subsection, reasonable player means a player with an average level of intelligence, physical and mental skills, reaction time, and dexterity.

(5) The department or any court considering whether a gambling device is a game of skill may consider:

(a) The results of an analysis by any independent testing authority preapproved by the Tax Commissioner to evaluate the reaction time required for a player of a particular game on such device to perform the tasks required by the game to win; or

(b) The results of an analysis by any independent testing authority preapproved by the Tax Commissioner to evaluate factors set forth by the Tax Commissioner, other than reaction time, required for the player of a particular game on such device to perform the tasks required by the game to win.

(6) Factors which are not sufficient indications of a skill-based game include, but are not limited to:

(a) Whether a comprehensive list of prizes or outcomes is offered to the player or whether all outcomes are drawn from a finite pool of predetermined outcomes or starting positions;

(b) Whether a player can increase his or her chance of winning based on knowledge of probabilities in general or the probabilities of any particular prize or outcome in a game or on a device;

(c) Whether a player can simply choose not to play before committing money or credits; or

(d) A game task consisting solely of moving a symbol up or down, replacing one symbol with another, or any similar action, with or without a timer.

(7) Upon approval of an application based on a determination that the mechanical amusement device is a game of skill and not a game of chance, the Tax Commissioner shall issue a mechanical amusement device decal for the device as configured and as provided in subsection (8) of this section. No mechanical amusement device decal shall be issued for any cash device unless the department has determined that such device is a game of skill and not a game of chance and that the manufacture, sale, transport, placement, possession, or operation of such device does not constitute a violation of section 28-1107. If the Tax Commissioner does not approve the application for the device, the application shall be denied and the operator shall have the opportunity for an administrative hearing before the Tax Commissioner at which evidence may be presented on the issue of whether the device is specifically authorized by law and is not a gambling device as defined in section 28-1101. After such hearing, the Tax Commissioner shall enter a final decision approving or denying the application. The Tax Commissioner's final decision may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

(8)(a) Upon approval of a specimen of a mechanical amusement device as a game of skill under this section, the department may issue a mechanical amusement device decal for each such device:

(i) If certified by the manufacturer to be functionally identical in both hardware and software configurations to the specimen provided to the department; and

(ii) If the application fee described in subdivision (2)(b) of this section and the annual decal fee described in subdivision (c) of this subsection have been paid.

(b) An owner or operator of a retail establishment shall operate no more than four cash devices, except that an establishment with over four thousand square feet may have one cash device for each one thousand square feet, up to a maximum of fifteen cash devices.

(c) The owner or operator of a cash device shall pay an annual decal fee of two hundred fifty dollars to the department for each device in operation in Nebraska. The decal issued under this section shall be distinct from other decals issued by the department for mechanical amusement devices that are not required to be evaluated under this section. Regardless of the issuance of a decal by the department, no device shall be considered in compliance if it does not bear an unexpired decal in a conspicuous place.

(9) The application process described in this section shall not be construed to limit further investigation by the department or the issuance of further regulations to promote compliance after the application process is completed. At any point after a determination of skill by the department, the department may request from the manufacturer, distributor, or operator information about any device in operation in this state, including, but not limited to, information regarding currently operable source code, changes to software or hardware, and communications from or to the device over the Internet. A manufacturer, distributor, or operator that receives a request shall respond with all responsive information in its possession or control within fifteen business days.

(10)(a) Before any rules and regulations adopted and promulgated to carry out this section become effective, any manufacturer, distributor, or owner may continue to manufacture, sell, transport, place, possess, or enter into a transaction involving (i) cash devices already in operation at an establishment as of May 1, 2019, or (ii) other cash devices that are functionally identical to those already in operation at an establishment as of May 1, 2019.

(b) After any rules and regulations adopted and promulgated to carry out this section become effective, until any determination of compliance or noncompliance by the department, any manufacturer, distributor, or owner may continue to manufacture, sell, transport, place, possess, or enter into a transaction involving cash devices described in subdivision (10)(a) of this section if, within ninety days after the date when any such rules and regulations become effective, the manufacturer or distributor files an application with the department for such a determination.

(c) If a manufacturer or distributor receives a determination from the department that a device described in subdivision (10)(a) of this section is not in compliance with the Mechanical Amusement Device Tax Act, such manufacturer or distributor shall have thirty days after the issuance of that determination to remove any such device from operation in Nebraska.

(11) Application fees collected under subsection (2) of this section and annual decal fees collected under subsection (8) of this section shall be remitted to the State Treasurer for credit to the Department of Revenue Enforcement Fund.

Source:Laws 2019, LB538, § 3.    


Cross References

77-3003.02. Operation of cash device; restrictions.

No cash device shall be operated using a credit card, charge card, or debit card. No person under nineteen years of age shall play or participate in any way in the operation of a cash device. No operator or employee or agent of any operator shall knowingly permit any individual under nineteen years of age to play or participate in any way in the operation of a cash device.

Source:Laws 2019, LB538, § 4.    


77-3004. Occupation tax; amount; payment.

(1) An occupation tax is hereby imposed and levied, in the amount and in accordance with the terms and conditions hereafter stated, upon the business of operating mechanical amusement devices within the State of Nebraska for profit or gain either directly or indirectly received. Every person who now or hereafter engages in the business of operating such devices in the State of Nebraska shall pay such tax in the amount and manner specified in this section.

(2) Any operator of a mechanical amusement device within the State of Nebraska shall pay an occupation tax for each machine or device which he or she operates during all of the taxable year. The tax shall be due and payable on January 1 of each year on each machine or device in operation on that date, except that it shall be unlawful to pay any such occupation tax unless the sales or use tax has been paid on such mechanical amusement devices. For every machine or device put into operation on a date subsequent to January 1, and which has not been included in computing the tax imposed and levied by the Mechanical Amusement Device Tax Act, the tax shall be due and payable therefor prior to the time the machine or device is placed in operation. All taxes collected pursuant to the act shall be remitted to the State Treasurer for credit to the General Fund.

(3) The amount of the occupation tax shall be fifty dollars for each machine or device for the period from July 1, 1998, through December 31, 1999, except that for machines placed in operation after April 1, 1999, and before January 1, 2000, the occupation tax shall be twenty-five dollars for each machine or device.

(4) The amount of the occupation tax shall be thirty-five dollars for each machine or device for any period beginning on or after January 1, 2000, except that for machines placed in operation after July 1, and before January 1 of each year, the occupation tax shall be twenty dollars for each machine or device.

Source:Laws 1969, c. 635, § 4, p. 2543; Laws 1977, LB 353, § 2;    Laws 1982, LB 928, § 69; Laws 1997, LB 317, § 4.    


77-3005. Occupation tax; addition to other taxes and fees.

The occupation tax levied and imposed by the Mechanical Amusement Device Tax Act shall be in addition to any and all taxes or fees, of any form whatsoever, now imposed by the State of Nebraska or any of its subdivisions, upon the business of operating or distributing mechanical amusement devices as defined in section 77-3001, or otherwise defined by the subdivisions and municipalities of the State of Nebraska, except that payment of the tax and license fees due and owing on or before the licensing date of each year shall exempt any such mechanical amusement device from the application of the sales tax which would or could otherwise be imposed under the Nebraska Revenue Act of 1967. Nonpayment of the taxes or fees due and owing on or before the licensing date of each year shall render the exemption provided by this section inapplicable and the particular machines or devices shall then be subject to all the provisions of the Nebraska Revenue Act of 1967, including the penalty provisions pertaining to the owner or operator of such machines or devices.

Source:Laws 1969, c. 635, § 5, p. 2543; Laws 1997, LB 317, § 5.    


Cross References

77-3006. Tax Commissioner; administration of act.

The administration of the Mechanical Amusement Device Tax Act is hereby vested in the Tax Commissioner subject to other provisions of law relating to the Tax Commissioner. The Tax Commissioner may prescribe, adopt and promulgate, and enforce rules and regulations relating to the administration and enforcement of the act and may delegate authority to his or her representatives to conduct hearings or perform any other duties imposed under the act. The Tax Commissioner may adopt and promulgate rules and regulations necessary to carry out section 77-3003.01.

Source:Laws 1969, c. 635, § 6, p. 2544; Laws 2019, LB538, § 5.    


77-3007. Tax; payment; decal; form; display.

(1) The payment of the tax imposed by the Mechanical Amusement Device Tax Act shall be evidenced by a separate decal for each device signifying payment of the tax, in a form prescribed by the Tax Commissioner.

(2) Every operator shall place such decal in a conspicuous place on each device to denote payment of the tax for each device for the current year.

Source:Laws 1969, c. 635, § 7, p. 2544; Laws 1977, LB 353, § 3;    Laws 2019, LB538, § 6.    


77-3008. Municipalities; political subdivisions; power to tax.

Nothing in the Mechanical Amusement Device Tax Act shall be construed to limit, usurp, or repeal any power to tax granted to the political subdivisions and municipalities of the State of Nebraska by the laws and Constitution of Nebraska.

Source:Laws 1969, c. 635, § 8, p. 2545; Laws 2019, LB538, § 7.    


77-3009. Violations; penalty.

(1) Any person who places a mechanical amusement device in operation in the State of Nebraska without the necessary decal being placed conspicuously upon it or without having obtained the necessary license shall be subject to an administrative penalty of seventy-five dollars for each violation.

(2) Any mechanical amusement device which does not have the necessary decal conspicuously displayed upon it shall be subject to being sealed by the Tax Commissioner or his or her delegate. If such seal is broken prior to payment of the occupation tax upon such device, the device shall be subject to forfeiture and sale by the Tax Commissioner.

(3) Any person violating the Mechanical Amusement Device Tax Act shall be guilty of a Class II misdemeanor. Each day on which any person engages in or conducts the business of operating or distributing the machines or devices subject to the Mechanical Amusement Device Tax Act, without having paid the tax or obtained the required license as provided, shall constitute a separate offense.

Source:Laws 1969, c. 635, § 9, p. 2545; Laws 1977, LB 39, § 245;    Laws 1977, LB 353, § 4;    Laws 1979, LB 4, § 7;    Laws 1997, LB 317, § 6.    


77-3010. Violations; prosecution; limitation.

Prosecutions for any violations of the Mechanical Amusement Device Tax Act shall be brought by the Attorney General or county attorney in the county in which the violation occurs. Any prosecution for the violation of any of the provisions of the act shall be instituted within three years after the commission of the offense.

Source:Laws 1969, c. 635, § 10, p. 2545; Laws 2019, LB538, § 8.    


77-3011. Act, how cited.

Sections 77-3001 to 77-3011 shall be known and may be cited as the Mechanical Amusement Device Tax Act.

Source:Laws 1969, c. 635, § 11, p. 2545; Laws 2019, LB538, § 9.    


77-3101. Act, how cited.

Sections 77-3101 to 77-3106 shall be known and may be cited as the Volunteer Emergency Responders Incentive Act.

Source:Laws 2016, LB886, § 1;    Laws 2018, LB760, § 1.    


77-3102. Terms, defined.

For purposes of the Volunteer Emergency Responders Incentive Act:

(1) Active emergency responder means a person who has been approved by the duly constituted authority in control of a volunteer department as a volunteer member of the department, who is performing services, as both a firefighter and on a rescue squad, in the protection of life, health, or property from fire or other emergency, accident, illness, or calamity in connection with which the services of such volunteer department are required, and whose services and activities during a year of service meet the minimum requirements for qualification as an active member of his or her volunteer department as established by section 77-3103;

(2) Active rescue squad member means a person who has been approved by the duly constituted authority in control of a volunteer department as a volunteer member of the department, who is performing services as part of a rescue squad in the protection of life or health from emergency, accident, illness, or calamity in connection with which the services of such volunteer department are required, and whose services and activities during a year of service meet the minimum requirements for qualification as an active member of his or her volunteer department as established by section 77-3103;

(3) Active volunteer firefighter means a person who has been approved by the duly constituted authority in control of a volunteer department as a volunteer member of the department, who is performing services as a firefighter in the protection of life or property from fire or other emergency, accident, or calamity in connection with which the services of such volunteer department are required, and whose services and activities during a year of service meet the minimum requirements for qualification as an active member of his or her volunteer department as established by section 77-3103;

(4) Standard criteria for qualified active service means the minimum annual service requirements for the qualification of a volunteer member of a volunteer department as an active emergency responder, active rescue squad member, or active volunteer firefighter so as to allow such person a refundable credit to be applied against his or her income tax liability; and

(5) Volunteer department means any volunteer fire department, any volunteer first-aid, rescue, ambulance, or emergency squad, or any volunteer fire company, association, or organization serving any county, city, village, or rural or suburban fire protection district by providing fire protection or emergency response services for the purpose of protecting human life, health, or property.

Source:Laws 2016, LB886, § 2;    Laws 2018, LB760, § 2.    


77-3103. Qualification; points; basis.

(1) The standard criteria for qualified active service shall be based on a total of one hundred possible points per year. A person must accumulate at least fifty points out of the possible one hundred points during a year of service in order to qualify as an active emergency responder, active rescue squad member, or active volunteer firefighter. Points shall be awarded as provided in this section.

(2) A fixed amount of twenty-five points shall be awarded to a person for responding to ten percent of the emergency response calls which are (a) dispatched from his or her assigned station or company during a year of service and (b) relevant to the appropriate duty category of the person. An emergency response call means any dispatch involving an emergency activity that an emergency responder, rescue squad member, or volunteer firefighter is directed to do by the chief of the fire department, the chief of the ambulance service, or the person authorized to act for the chief. No points shall be awarded for responding to less than ten percent of the emergency response calls.

(3) For participation in training courses, a maximum total of not more than twenty-five points may be awarded on the following basis:

(a) For courses under twenty hours duration, one point shall be awarded per two hours in the course, with a maximum of five points awarded per course;

(b) For courses of twenty hours but less than forty-one hours duration, five points shall be awarded, plus one point awarded for each hour after the first twenty hours in the course, with a maximum of ten points awarded per course; and

(c) For courses over forty hours duration, fifteen points shall be awarded per course.

(4) For participation in drills, one point shall be awarded per drill, with a maximum total of twenty points. Each drill shall last at least two hours. Drill means regular monthly drills used for instructional and educational purposes, as well as mock emergency response exercises to evaluate the efficiency or performance by the personnel of a volunteer department.

(5) For attendance at an official meeting of the volunteer department or mutual aid organization, one point shall be awarded per meeting, with a maximum total of not more than ten points.

(6) A fixed award of ten points shall be awarded for completion of a term in one of the following elected or appointed positions: (a) An elected or appointed position defined in the volunteer department's constitution or bylaws; (b) an elected or appointed position of a mutual aid organization; or (c) an elected office of the Nebraska State Volunteer Firefighters Association, the Nebraska Emergency Medical Services Association, or other organized associations dealing with emergency response services in Nebraska.

(7) For participation in activities of fire prevention communicated to the public, at open houses, or at speaking engagements on behalf of the volunteer department, presenting fire or rescue equipment at a parade or other public event, attendance at the Nebraska State Volunteer Firefighters Association annual meeting, attendance at the Nebraska Emergency Medical Services Association annual meeting, attendance at a meeting of a governing body of a county, city, village, or rural or suburban fire protection district on behalf of the volunteer department, or other activities related to emergency services not covered in this subsection, one point shall be awarded per activity, but no more than one point shall be awarded per day, with a maximum total of not more than ten points.

(8) Activities which may qualify a person to receive points in more than one of the categories described in subsections (2) through (7) of this section shall only be credited in one category.

Source:Laws 2016, LB886, § 3;    Laws 2018, LB760, § 3.    


77-3104. Certification administrator; designation; duties; notice to volunteer member; written certification.

(1) Each volunteer department serving a county, city, village, or rural or suburban fire protection district shall designate one member of the department to serve as the certification administrator. The designation of such individual as the certification administrator shall be confirmed and approved by the governing body of such county, city, village, or rural or suburban fire protection district. The certification administrator shall keep and maintain records on the activities of all volunteer members and award points for such activities based upon the standard criteria for qualified active service.

(2) No later than July 15 of each year, the certification administrator shall provide each volunteer member with notice of the total points he or she has accumulated during the first six months of the current calendar year of service.

(3) No later than February 1 of each year, the certification administrator shall provide each volunteer member with a written certification stating the total number of points accumulated by the volunteer member during the immediately preceding calendar year of service and whether the volunteer member has qualified as an active emergency responder, active rescue squad member, or active volunteer firefighter for such year. Such certification may be sent electronically or by mail.

Source:Laws 2016, LB886, § 4;    Laws 2018, LB760, § 4;    Laws 2019, LB222, § 1.    


77-3105. Certification administrator; certified list of volunteer members; duties; income tax credit.

(1) The certification administrator of the volunteer department shall file with the Department of Revenue a certified list of those volunteer members who have qualified as active emergency responders, active rescue squad members, or active volunteer firefighters for the immediately preceding calendar year of service no later than February 15. The certification administrator shall also send a copy of such certified list to the governing body of the county, city, village, or rural or suburban fire protection district. Such copy may be sent electronically or by mail.

(2) Each volunteer member on the list described in subsection (1) of this section shall receive a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 in an amount equal to two hundred fifty dollars beginning with the second taxable year in which such volunteer member is included on such list. The volunteer member shall claim the credit by including a copy of the certification received under subsection (3) of section 77-3104 with the volunteer member's state income tax return.

Source:Laws 2016, LB886, § 5;    Laws 2018, LB760, § 5;    Laws 2019, LB222, § 2.    


Cross References

77-3106. Laws 2018, LB760, retroactive applicability; certification administrator; duties; county board; duties.

(1) The changes made in sections 77-3102, 77-3103, 77-3104, and 77-3105 by Laws 2018, LB760, shall apply retroactively to July 21, 2016.

(2) For any volunteer member of a volunteer department serving a county, such volunteer member's service and activities during calendar year 2016 and calendar year 2017 shall count towards qualification as an active emergency responder, active rescue squad member, or active volunteer firefighter for each respective year if the following steps are taken:

(a) The certification administrator of a volunteer department serving a county shall, no later than twenty days after April 12, 2018, forward to the county board a written report specifying the name of each volunteer member of the volunteer department, the number of points accumulated by each volunteer during calendar year 2016 and calendar year 2017, respectively, and the names of those volunteers who qualified as an active emergency responder, active rescue squad member, or active volunteer firefighter for each respective year; and

(b) The county board shall, no later than thirty days after April 12, 2018, (i) approve and certify the list of those volunteers who qualified as an active emergency responder, active rescue squad member, or active volunteer firefighter for calendar year 2016, (ii) approve and certify the list of those volunteers who qualified as an active emergency responder, active rescue squad member, or active volunteer firefighter for calendar year 2017, and (iii) file the two certified lists with the Department of Revenue.

(3) If the requirements of subsection (2) of this section are met, each of the two certified lists filed with the Department of Revenue under subdivision (2)(b) of this section shall be treated as if they had been timely filed under subsection (1) of section 77-3105 and shall be used in determining eligibility for the refundable income tax credit provided in subsection (2) of section 77-3105. If a volunteer member of a volunteer department serving a county qualified as an active emergency responder, active rescue squad member, or active volunteer firefighter for both 2016 and 2017, as shown on the certified lists filed with the Department of Revenue under subdivision (2)(b) of this section, such volunteer member shall receive the refundable income tax credit provided in subsection (2) of section 77-3105 for the 2017 tax year.

Source:Laws 2018, LB760, § 6.    


77-3201. Land Reutilization Authority; created; powers; purpose.

(1) There may be created within each county an authority for the management, sale, transfer, and other disposition of tax-delinquent lands, which authority shall be known as the Land Reutilization Authority of the County of ............... . It shall have authority to accept the grant of any interest in real property made to it or to accept gifts and grant-in-aid assistance. The authority shall have and exercise all the powers conferred by the Land Reutilization Act necessary and incidental to the effective management, sale, transfer, or other disposition of real estate acquired under and by virtue of the foreclosure of the lien for delinquent real estate taxes, and in the exercise of its powers, the authority shall be deemed to be a public corporation acting in a governmental capacity and a political subdivision of this state.

(2) The authority shall foster the public purpose of returning land which is in a nonrevenue-generating nontax-producing status to effective utilization in order to provide housing, new industry, and jobs for the citizens of the county and new tax revenue for the county.

(3) In counties in which a city of the metropolitan class is located, such a city may create an authority for the management, sale, transfer, and other disposition of tax-delinquent lands which shall be known as the Land Reutilization Authority of the City of ........ . Such authority shall have all of the powers and duties granted to an authority by the act with regard to property located within the corporate boundaries of that city. Such an authority shall be a division of the planning department of such city and shall not be deemed to be a public corporation acting in a governmental capacity or a political subdivision of this state, independent of the city creating the authority. All of the acts of such an authority shall be the acts of such city. If a land reutilization authority for the county in which is situated a city of the metropolitan class exists at the time of creation of an authority by a city of the metropolitan class, the existing authority of the county with regard to property located within the corporate boundaries of the city shall cease to exist within one hundred eighty days after the creation of the land reutilization authority of such city and any real property located within the corporate boundaries of the city held by such land reutilization authority of the county shall be conveyed to the newly created authority of the city of the metropolitan class.

(4) Pursuant to the provisions of the Interlocal Cooperation Act, a city of the metropolitan class that creates a land reutilization authority may enter into an agreement with any county to authorize the city's land reutilization authority to exercise on behalf of such county the authority provided by the Land Reutilization Act for its own land reutilization authority upon such terms and conditions as the city and county may agree.

Source:Laws 1973, LB 73, § 1;    Laws 1980, LB 862, § 1; Laws 1997, LB 489, § 1;    Laws 2009, LB360, § 1.    


Cross References

77-3202. Authority; beneficiaries.

The beneficiaries of the authority shall be the taxing authorities which held or owned tax bills against the respective parcels of real estate sold to the authority at the sheriff's foreclosure sale included in the judgment of the court, and their respective interests in each parcel of real estate shall be to the extent and in the proportion and according to the priorities determined by the court on the basis of the principal amount of the judgment against each such parcel of real estate.

Source:Laws 1973, LB 73, § 2.    


77-3203. Land Reutilization Commission; created; members; appointment; serve without compensation.

(1) In each county which creates an authority pursuant to subsection (1) of section 77-3201, there is hereby created a Land Reutilization Commission which shall be composed of at least three members, one of whom shall be appointed by the governing body of the most populous city within the county, one of whom shall be appointed by the board of county commissioners, and one of whom shall be appointed by the board of education of the school district serving the most populous city of the county. At the request of the governing body of a city of the first or second class within the county, which is not the most populous city in the county, or the board of education of a school district located predominately within the county, which is not serving the most populous city of the county, the county board shall authorize the appointment of additional members to the Land Reutilization Commission, not to exceed a maximum total of seven members of the commission. The additional members of the commission shall be appointed by the governing body of the respective city or cities of the first or second class or by the board of education of the respective school district or districts. If necessary to establish an odd number of commission members, the county board may appoint a member from a municipality or school district within the county which is not represented on the commission. The members shall serve at the pleasure of the respective appointing authority and may be employees of the appointing authority. No member shall receive compensation for serving on the commission.

(2) Any vacancy in the office of commissioner shall be filled by the same appointing authority which made the original appointment.

(3) In a city of the metropolitan class which determines to create an authority pursuant to subsection (3) of section 77-3201, the city by ordinance may create a Land Reutilization Commission which shall be composed of a minimum of three members of the planning department of the city of the metropolitan class, appointed by its director. The members shall serve at the pleasure of the director. No member shall receive compensation for serving on the commission.

Source:Laws 1973, LB 73, § 3;    Laws 1990, LB 831, § 1;    Laws 1997, LB 489, § 2;    Laws 2009, LB360, § 2.    


77-3204. Reutilization commission; meeting; officers; bond; oath.

(1) The members of a Land Reutilization Commission shall meet immediately after being appointed and qualified and shall select a chairperson, a vice-chairperson, and a secretary.

(2) Each commissioner shall furnish a surety bond in a penal sum of not less than fifteen thousand dollars, the premium of such bond to be paid by the authority from which the commissioner was appointed or which he or she represents. The bond shall be issued by a surety company licensed to do business in the State of Nebraska, shall be conditioned to guarantee the faithful performance of all duties under the Land Reutilization Act, and shall be written to cover all the commissioners.

(3) Before entering upon the duties of his or her office, each commissioner shall take and subscribe to the following oath:

State of Nebraska)
) ss.
County of .........)

I, .........................., do solemnly swear that I will support the Constitution of the United States, and the Constitution of the State of Nebraska, that I will faithfully and impartially discharge my duties as a member of the Land Reutilization Authority of the County of .............. or City of ................, that I will, according to my best knowledge and judgment, administer tax-delinquent lands held by me in trust according to the laws of this state and for the benefit of the public bodies and the tax bill owners which I represent, so help me God.

.............................

Subscribed and sworn to this ...... day of ............ 20....

My commission expires: ........................ .

............................. Notary Public

Source:Laws 1973, LB 73, § 4;    Laws 1997, LB 489, § 3;    Laws 2004, LB 813, § 34;    Laws 2009, LB360, § 3.    


77-3205. Authority; seal; adopt; conveyances; requirements.

(1) The authority shall be a continuing body and shall have and adopt an official seal which shall bear on its face the words Land Reutilization Authority of the County of ................... or City of ...................., and shall have the power to issue deeds in its name, which deeds shall be signed by the chairperson or vice-chairperson and attested by the secretary, and shall have the general power to administer its business as any other corporate body. A land reutilization authority of a city of the metropolitan class shall issue deeds in the name of such city and such city, through its employees designated as the commission members, shall have general powers to administer the authority's business.

(2) The authority may convey title to any real estate sold or conveyed by it by general or special warranty deed, and may convey an absolute title in fee simple, without in any case procuring any consent, conveyance, or other instrument from the beneficiaries for which it acts. Each such deed shall recite whether the selling price represents a consideration equal to or in excess of two-thirds of the appraised value of such real estate so sold or conveyed. If such selling price represents a consideration of less than two-thirds of the appraised value of such real estate, the approval of such selling price shall be by unanimous action of the authority and evidenced by a copy of such action duly certified to by its secretary and attached to and made a part of such deed. In the event that unanimous action of the authority is not obtained, then the commissioners shall first procure the consent to such selling price of not less than a majority of the appointing authorities, which consent shall be evidenced by a copy of the action of each such appointing authority duly certified to by its clerk or secretary and attached to and made a part of such deed. In the case of a land reutilization authority for a city of the metropolitan class, the commissioners shall procure the planning director's consent.

Source:Laws 1973, LB 73, § 5;    Laws 1980, LB 862, § 2; Laws 1997, LB 489, § 4;    Laws 2009, LB360, § 4.    


77-3206. Authority; duties.

It shall be the duty of such authority to administer the tax-delinquent lands as follows:

(1) Such authority shall immediately assume possession and control of all real estate acquired by it under the Land Reutilization Act and proceed to inventory and appraise such land and thereafter keep and maintain a perpetual inventory of such real estate, except that individual parcels may be consolidated and grouped or regrouped for economy, utility, or convenience;

(2) Such authority shall classify such land as to its use into the following three classifications:

(a) Suitable for private use;

(b) Suitable for use by a public agency; and

(c) Not usable in its present condition or situation and held as a public land reserve. Any parcel of property may be reclassified by a three-fifths vote of the commissioners;

(3) Such authority shall administer all property described in subdivision (2)(a) of this section in accordance with subdivision (4) of this section. Every effort shall be made to sell such property at a price as close to its appraised value as possible. Property described in subdivisions (2)(b) and (2)(c) of this section may be transferred at no cost by the authority upon request of and to a public agency upon submission of a plan of use for the property by such public agency to the land reutilization commissioners. If the property is transferred at no cost to any public agency and such public agency shall then sell or otherwise dispose of such property within ten years for any consideration, the proceeds of such sale or disposal shall be returned to the commissioners who shall in turn distribute the proceeds in accordance with the act. If the commissioners do not give an affirmative vote to the request for transfer, the authority may dispose of the property in accordance with subdivision (4) of this section. Properties described in subdivision (2)(c) of this section shall be studied and recommendations made to taxing authorities as to possible uses for such real estate. In furtherance of this objective, such authority shall have access to any and all city and county records at any time and may call upon any and all city and county officers, departments, boards, planning commissions, or other commissions for studies, statistics, or recommendations. Such authority shall prepare a list of all land described in subdivision (2)(a) of this section, which list shall be corrected and amended from time to time in the discretion of the commissioners. Such commissioners may make a charge not to exceed one dollar for each copy of such list, which charge shall be used to help defray the costs of preparing such list. Any person may purchase a copy of such list. Any real estate agent or broker licensed to do business in the city may, when authorized by the commissioners, sell any such property upon the terms and conditions imposed by the commissioners, and the commissioners may pay a reasonable real estate commission. Nothing in the act shall prohibit the commissioners from selling or exchanging any such real estate directly to or with any purchaser;

(4) Such commissioners shall manage, maintain, protect, rent, lease, repair, insure, alter, sell, trade, exchange, or otherwise dispose of any such real estate on such terms and conditions as may be determined in the sole discretion of the commissioners in accordance with section 77-3205. Such commissioners may assemble tracts or parcels of real estate for public parks or other public purposes and to such end may exchange parcels and otherwise effectuate such purposes by agreement with any taxing authority; and

(5) Such authority shall adopt rules and regulations consistent with the act and shall keep records of all of its transactions, which records shall be open to inspection of any taxing authority in the county at any time. There shall be an annual audit of the affairs, accounts, expenses, and financial transactions of such authority by certified public accountants as of December 31 of each year, which accountants shall be employed by the commissioners on or before November 1 of each year, and certified copies of such audit shall be furnished to the appointing authorities and shall be available for public inspection at the offices of such appointing authorities.

Source:Laws 1973, LB 73, § 6;    Laws 1980, LB 862, § 3; Laws 2008, LB710, § 2.    


77-3206.01. Authority; sale of real property; notification to adjacent real property owner required.

No authority created pursuant to section 77-3201 shall offer for sale any parcel of real property without notifying, in writing, each owner of adjacent real property, on record, that the authority intends to offer such parcel for sale. The notice shall include the legal description of such parcel and shall be mailed at least forty-five days before the parcel is offered for sale.

Source:Laws 2008, LB710, § 1.    


77-3206.02. Authority; transfer to land bank authorized.

Notwithstanding any provision of the Land Reutilization Act to the contrary, a land reutilization authority may transfer property held by such authority to a land bank created under the Nebraska Municipal Land Bank Act upon such terms and conditions as may be agreed upon between the authority and the land bank.

Source:Laws 2013, LB97, § 29.    


Cross References

77-3207. Authority; employees; disbursements; fiscal year; audit; warrants.

(1) The commissioners may appoint a director and such other employees as are deemed necessary to carry out the responsibilities and duties imposed by the Land Reutilization Act and may incur such other reasonable and proper costs and expenses related thereto. A land reutilization authority of a city of the metropolitan class shall utilize only city employees for such responsibilities and duties. If such costs and expenses exceed the amount of funds available to the authority under the act, the authority shall obtain approval for such additional or supplemental needs. Such appropriations shall be considered advances to the authority subject to repayment from funds accumulated by the authority under the act.

The county treasurer's office, or city treasurer's office in the case of an authority created pursuant to subsection (3) of section 77-3201, shall handle all such appropriated expense funds and disburse the same under the provisions for handling other expenditures.

The authority shall deposit all funds received under the act with the county treasurer of the county, or the city treasurer in the case of an authority created pursuant to subsection (3) of section 77-3201, and make disbursements therefrom upon receipt of vouchers duly authorized by the authority under the act and in accordance with standard procedures adopted by and approved by the county treasurer, or the city treasurer in the case of an authority created pursuant to subsection (3) of section 77-3201.

(2) The fiscal year of the authority shall commence on January 1 of each year. The authority shall audit all claims for the expenditure of money and the chairperson or vice-chairperson thereof shall draw warrants therefor from time to time, or the city treasurer in the case of an authority created pursuant to subsection (3) of section 77-3201.

Source:Laws 1973, LB 73, § 7;    Laws 2008, LB710, § 3;    Laws 2009, LB360, § 5.    


77-3208. Authority; perpetual inventory.

Such authority shall set up and maintain a perpetual inventory on each tract of its real estate, except that individual tracts may be consolidated and grouped or regrouped for economy or convenience.

Source:Laws 1973, LB 73, § 8.    


77-3209. Authority; set up accounts; proceeds; how disbursed.

(1) The authority shall set up accounts on its books relating to the operation, management, or other expense of each individual parcel of real estate.

(2) When any parcel of real estate is sold or otherwise disposed of by the authority, the proceeds therefrom shall be applied and distributed in the following order, except as provided for in section 77-3206:

(a) To the payment of the expenses of sale, the costs of the care, improvement, operation, demolition, management, and administration of such parcels of real estate as determined by the commissioners and apportioned to such parcel;

(b) To the payment of any penalties, fees, or costs which were included in the judgment originally entered against such parcel of real estate, plus its proportional part of the costs of the sheriff's foreclosure sale, as shown by the court records; and

(c) The balance shall be paid to the respective taxing authorities and tax bill owners, if any, in the proportion that the principal amounts of the tax bills of each such party bears to the total principal amount of all the tax bills included in the original judgment relating to such parcel of real estate and in the order of their respective priorities. After deduction of all sums charged to each account for various expenses, distribution shall be made to the respective taxing authorities and to tax bill owners having an interest in such parcel of real estate on January 1 and July 1 of each year and at such other times as the commissioners in their discretion may determine.

Source:Laws 1973, LB 73, § 9.    


77-3210. Authority; members; employees; prohibited acts; violations; penalty.

(1) Neither the members nor any salaried employee of the authority shall receive any compensation, emolument, or other profit directly or indirectly from the rental, management, purchase, sale, or other disposition of any lands held by such authority other than the salaries, expenses, and emoluments provided for in the Land Reutilization Act.

(2) Any person convicted of violating any provision of this section shall be guilty of a felony and shall, upon conviction thereof, be punished by imprisonment in a Department of Correctional Services adult correctional facility not less than two years nor more than five years.

Source:Laws 1973, LB 73, § 10;    Laws 1993, LB 31, § 23;    Laws 2008, LB710, § 4.    


77-3211. Sheriff; no bids; authority deemed purchaser; payment; applicability of section.

(1)(a) Except as provided in subsection (2) of this section, if, when the sheriff offers the parcels of real estate for sale under the tax foreclosure laws of this state, there is no bid equal to the full amount of all tax bills included in the judgment, interest, penalties, fees, and costs then due thereon made or received at such sale, the authority shall be deemed to have bid the full amount of all tax bills included in the judgment, interest, penalties, fees, and costs then due, and if no other earlier or later bid be then received by the sheriff as allowed by law in excess of the bid of the authority, then the bid of the authority shall be announced as accepted. The sheriff shall report any such bid or bids so made by the authority in the same way as his or her report of other bids is made.

(b) The authority shall pay, if possible, any penalties, fees, or costs included in the judgment of foreclosure of such parcel of real estate when such parcel is sold or otherwise disposed of by such authority. Upon confirmation by the court of such bid at such sale by such authority, and upon notification by the sheriff, the county treasurer, or the city treasurer in the case of an authority created pursuant to subsection (3) of section 77-3201, shall mark the tax bills to the date of such confirmation as canceled by sale to the authority, and shall take credit for the full amount of such tax bills, including principal amount, interest, penalties, fees, and costs, on his or her books and his or her statements with any other taxing authorities.

(2) Subsection (1) of this section shall not apply if the real estate offered for sale under the tax foreclosure laws of this state lies within a municipality that has created a land bank pursuant to the Nebraska Municipal Land Bank Act.

Source:Laws 1973, LB 73, § 11;    Laws 1982, LB 630, § 2;    Laws 2009, LB360, § 6;    Laws 2013, LB97, § 27.    


Cross References

77-3212. Title subject to rights-of-way, easements, covenants, and rights of redemption.

(1) The title to any real estate which shall vest in the authority under the Land Reutilization Act shall be held by the authority in trust for the tax bill owners and taxing authorities having an interest in any tax liens which were foreclosed, as their interests may appear in the judgment of foreclosure.

(2) The title to any real estate which shall vest in any purchaser or the authority upon confirmation of such sale by the court shall be an absolute estate in fee simple, subject to rights-of-way, easements, and covenants thereon and subject to all rights of redemption provided by law or the Constitution.

Source:Laws 1973, LB 73, § 12;    Laws 2008, LB710, § 5.    


77-3213. Act, how cited.

Sections 77-3201 to 77-3213 shall be known and may be cited as the Land Reutilization Act.

Source:Laws 1973, LB 73, § 13;    Laws 2008, LB710, § 6;    Laws 2013, LB97, § 28.    


77-3301. Decedent's domicile; arbitration agreement.

When the Nebraska taxing authority claims that a decedent was domiciled in this state at the time of his death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the Nebraska taxing authority may make a written agreement with the other taxing authorities and with the executor or administrator to submit the controversy to the decision of a board consisting of one or any uneven number of arbitrators. The executor or administrator is hereby authorized to make the agreement. The parties to the agreement shall select the arbitrator or arbitrators.

Source:Laws 1976, LB 584, § 1.


77-3302. Arbitration board; hearings.

The board shall hold hearings at such times and places as it may determine, upon reasonable notice to the parties to the agreement, all of whom shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses.

Source:Laws 1976, LB 584, § 2.


77-3303. Powers of board; contempt proceedings.

The board shall have power to administer oaths, take testimony, subpoena, and require the attendance of witnesses and the production of books, papers, and documents and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, any judge of a court of record of this state, upon application by the board, may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt.

Source:Laws 1976, LB 584, § 3.


77-3304. Board; determination of domicile.

The board shall, by majority vote, determine the domicile of the decedent at the time of his death. This determination shall be final for purposes of imposing and collecting death taxes but for no other purpose.

Source:Laws 1976, LB 584, § 4.


77-3305. Board; majority vote.

Except as provided in section 77-3303 in respect of the issuance of subpoenas, all questions arising in the course of the proceeding shall be determined by majority vote of the board.

Source:Laws 1976, LB 584, § 5.


77-3306. Filing of determination of domicile and other documents.

The Nebraska taxing authority, the board, or the executor or administrator shall file the determination of the board as to domicile, the record of the board's proceedings, and the agreement, or a duplicate, made pursuant to section 77-3301, with the authority having jurisdiction to determine the death taxes in the state determined to be the domicile and shall file copies of all such documents with the authorities that would have been empowered to determine the death taxes in each of the other states involved.

Source:Laws 1976, LB 584, § 6.


77-3307. No interest for nonpayment of taxes.

In any case where it is determined by the board that the decedent died domiciled in this state, no interest otherwise imposed by sections 77-2010 and 77-2102, for nonpayment of death taxes between the date of the agreement and of filing of the determination of the board as to domicile shall be charged.

Source:Laws 1976, LB 584, § 7.


77-3308. Compromise by parties to arbitration agreement.

Nothing contained herein shall prevent at any time a written compromise as provided by section 77-3310 by all parties to the agreement made pursuant to section 77-3301, fixing the amounts to be accepted by this and any other state involved in full satisfaction of death taxes.

Source:Laws 1976, LB 584, § 8.


77-3309. Board; compensation and expenses.

The compensation and expenses of the members of the board and its employees may be agreed upon among such members and the executor or administrator and if they cannot agree shall be fixed by the probate court of the state determined by the board to be the domicile of the decedent. The amounts so agreed upon or fixed shall be deemed an administration expense and shall be payable by the executor or administrator.

Source:Laws 1976, LB 584, § 9.


77-3310. Compromise agreement; amount accepted as full satisfaction of death taxes; filing of agreement; interest; how computed.

When the Nebraska taxing authority claims that a decedent was domiciled in this state at the time of his death and the taxing authorities of another state or states make a like claim on behalf of their state or states, the Nebraska taxing authority may make a written agreement of compromise with the other taxing authorities and the executor or administrator that a certain sum shall be accepted in full satisfaction of any and all death taxes imposed by this state, including any interest to the date of filing the agreement. The agreement shall also fix the amount to be accepted by the other states in full satisfaction of death taxes. The executor or administrator is hereby authorized to make such agreement. Either the Nebraska taxing authority or the executor or administrator shall file the agreement, or a duplicate, with the authority that would be empowered to determine death taxes for this state if there had been no agreement, and thereupon the tax shall be deemed conclusively fixed as therein provided. Unless the tax is paid within ninety days after filing the agreement, interest as provided for by sections 77-2010 and 77-2102, shall thereafter accrue upon the amount fixed in the agreement but the time between the decedent's death and the filing shall not be included in computing such interest.

Source:Laws 1976, LB 584, § 10.


77-3311. Determination of domicile; election to invoke act; notice; rejection; effect.

In any case in which this state and one or more other states each claims that it was a domicile of a decedent at the time of his or her death and no judicial determination of domicile for death tax purposes has been made in any of such states, any executor or administrator or the taxing official of any such state may elect to invoke the provisions of the Uniform Act on Interstate Arbitration and Compromise of Death Taxes. Such election shall be evidenced by mailing notice to the taxing officials of any such state and to each executor, ancillary administrator, and interested person. Any executor or administrator may reject such election by mailing notice to the taxing officials involved and to all other executors within forty days after the receipt of such notice of election. If such election is rejected, no further proceedings shall be had under the act. If such election is not rejected, the dispute as to the death taxes shall be determined solely as provided in the act, and no other proceedings to determine or assess such death taxes shall thereafter be instituted in the courts of this state or otherwise.

Source:Laws 1976, LB 584, § 11; Laws 1987, LB 93, § 21;    Laws 2012, LB727, § 47.    


77-3312. Reciprocal application.

Sections 77-3301 to 77-3316 shall apply only to cases in which each of the states involved has a law identical with or substantially similar to sections 77-3301 to 77-3316.

Source:Laws 1976, LB 584, § 12.


77-3313. Terms, defined.

For purposes of the Uniform Act on Interstate Arbitration and Compromise of Death Taxes, (1) state shall mean any state, territory, or possession of the United States and the District of Columbia and (2) Nebraska taxing authority shall mean (a) the Attorney General or the Tax Commissioner for state estate or generation-skipping transfer tax purposes and (b) the Attorney General or the county attorney for Nebraska inheritance tax purposes.

Source:Laws 1976, LB 584, § 13; Laws 1992, LB 1004, § 20.


77-3314. Act, how interpreted.

Sections 77-3301 to 77-3316 shall be so interpreted and construed as to effectuate their general purpose to make uniform the law of those states which enact them.

Source:Laws 1976, LB 584, § 14.


77-3315. Act, how cited.

Sections 77-3301 to 77-3316 shall be known and may be cited as the Uniform Act on Interstate Arbitration and Compromise of Death Taxes.

Source:Laws 1976, LB 584, § 15.


77-3316. Act, time of taking effect.

Sections 77-3301 to 77-3316 shall apply to estates of decedents dying before or after their enactment.

Source:Laws 1976, LB 584, § 16.


77-3401. Act, how cited.

Sections 77-3401 to 77-3411 shall be known and may be cited as the Local Option Tax Control Act.

Source:Laws 1978, Spec. Sess., LB 2, § 1.


77-3402. Political subdivisions; budget limitation; petition; election; procedure.

If the voters of any political subdivision of the state authorized to levy a tax or cause a tax to be levied determine that a limitation of the budget of the political subdivision funded by property taxes is needed, they may call for an election for that purpose. When ten percent of the registered voters of any political subdivision sign a petition calling for a limitation on the budget funded by property taxes, the question of such budget limitation shall be placed before the voters at a general, primary, or special election. The petition shall be filed with the governing body of the political subdivision. The budget limitation shall be adopted if approved by a majority of those voting on the question. Voting at such general, primary, or special election shall be by those persons who are authorized to vote for the members of the governing body of such political subdivision. For the purposes of the Local Option Tax Control Act, the term budget funded by property taxes shall include all funds the source of which is a property tax, regardless of the purpose of such funds, except such funds as are necessary to pay interest on and for retiring, funding, or servicing bonded indebtedness during the upcoming fiscal year.

Source:Laws 1978, Spec. Sess., LB 2, § 2; Laws 1981, LB 17, § 1;    Laws 1992, LB 1063, § 188; Laws 1992, Second Spec. Sess., LB 1, § 160.    


77-3403. Repealed. Laws 1981, LB 17, § 8.

77-3404. Budget limitation; approval; effect.

When a budget limitation is approved by the voters at a general, primary, or special election held for such purpose, the budget for the years in which taxes will be levied to fund such budget shall, except as provided in section 13-511, be limited as provided in the petition.

Source:Laws 1978, Spec. Sess., LB 2, § 4; Laws 1981, LB 17, § 2.    


77-3405. Petition; contents; election; when held.

The petition calling for a budget limitation election and the election notice shall refer to section 77-3402, state the percentage limitation placed on the budget for the ensuing two years, and specify the first year for which such limitation is applicable. All elections held pursuant to section 77-3402 or 77-3410 shall be held at least ninety days prior to the date on which the fiscal year of the affected political subdivision begins and shall affect the budgets for the fiscal years specified subsequent to such election, except that elections for which petitions have been completed prior to April 11, 1981, shall not be subject to such ninety-day limitation but shall be held prior to August 15, 1981.

Source:Laws 1978, Spec. Sess., LB 2, § 5; Laws 1981, LB 17, § 3.    


77-3406. Election; notice; ballot; form.

(1) Notice of an election held pursuant to section 77-3402 or 77-3410 shall state the date on which the election is to be held and the hours the polls will be open. Such notice shall be published in a newspaper that is published in or of general circulation in the political subdivision at least fifteen days prior to such election. If no newspaper is published in or of general circulation in the political subdivision, notice shall be posted in each of three public places therein.

(2) The governing body shall prescribe the form of the ballot to be used at the election, and the proposition appearing on such ballot shall state the percentage limitation to be placed on the budget for the ensuing two years and specify the two years for which such limitation is applicable. The form of submission upon the ballot shall be as follows:

For a budget limitation

Against a budget limitation.

Source:Laws 1978, Spec. Sess., LB 2, § 6; Laws 1981, LB 17, § 4.    


77-3407. Petition; unlawful signature; penalty.

Any person who signs a petition under section 77-3402, knowing that he or she is not a qualified voter in the place where such a petition is made, or bribes or gives or pays any money or thing of value to any person directly or indirectly to induce him or her to sign the petition, shall be guilty of a Class III misdemeanor.

Source:Laws 1978, Spec. Sess., LB 2, § 7.


77-3408. Election; statutes; applicability.

The statutes of this state relating to election officers, voting places, election apparatus and blanks, preparation and form of ballots, information to voters, delivery of ballots, calling of elections, conduct of elections, manner of voting, counting of votes, records and certificates of election, and recounts of votes, so far as applicable, shall apply to voting on the question of establishing a budget limitation by the voters under the provisions of sections 77-3401 to 77-3411.

Source:Laws 1978, Spec. Sess., LB 2, § 8.


77-3409. Budget limitation; two or more proposals; how treated; placed on ballot.

If two or more proposals relating to the budget level of a political subdivision are placed upon the ballot at a general, primary, or special election and more than one such proposal receives a majority of affirmative votes, the proposal receiving the largest number of affirmative votes shall be considered the successful proposal.

Source:Laws 1978, Spec. Sess., LB 2, § 9; Laws 1981, LB 17, § 5.    


77-3410. Budget limitation; duration; termination; procedure.

Any limitation placed on budgets pursuant to sections 77-3401 to 77-3411 shall remain in effect for only the ensuing two fiscal years, except that the governing body of a political subdivision may, during the first year of a two-year budget limitation, by a majority vote place the issue of terminating the limitation after the first year on the ballot at a general, primary, or special election. Such budget limitation shall be terminated at the end of the first year if such termination is approved by a majority of those voting on the issue. Such election shall be held at least ninety days prior to the date on which the second fiscal year subject to the limitation begins.

Source:Laws 1978, Spec. Sess., LB 2, § 10; Laws 1981, LB 17, § 6.    


77-3410.01. Budget limitation adopted prior to April 11, 1981; termination.

Any limitation placed on a budget pursuant to the Local Option Tax Control Act prior to April 11, 1981, which has been in effect for two or more fiscal years shall not apply to any budget for a fiscal year commencing after April 11, 1981. Any limitation placed on a budget pursuant to the Local Option Tax Control Act prior to April 11, 1981, which has been in effect for less than two fiscal years shall be terminated after a total of two fiscal years unless terminated prior to such date pursuant to section 77-3410.

Source:Laws 1981, LB 17, § 7.    


77-3411. Statutory limitation on budgets; not applicable; when.

Any statutory limitation on the budget, funded by property taxes, of a political subdivision authorized to levy a tax or cause a tax to be levied shall not apply to any such political subdivision which has adopted a tax or budgetary limitation on property taxes by vote of the electors of the political subdivision pursuant to the Local Option Tax Control Act or any home rule charter.

Source:Laws 1978, Spec. Sess., LB 2, § 11; Laws 1992, LB 1063, § 189; Laws 1992, Second Spec. Sess., LB 1, § 161.    


77-3412. Repealed. Laws 1985, LB 6, § 7.

77-3413. Repealed. Laws 1985, LB 6, § 7.

77-3414. Repealed. Laws 1985, LB 6, § 7.

77-3415. Repealed. Laws 1985, LB 6, § 7.

77-3416. Repealed. Laws 1985, LB 6, § 7.

77-3417. Repealed. Laws 1985, LB 6, § 7.

77-3418. Repealed. Laws 1985, LB 6, § 7.

77-3419. Repealed. Laws 1985, LB 6, § 7.

77-3420. Repealed. Laws 1985, LB 6, § 7.

77-3421. Repealed. Laws 1985, LB 6, § 7.

77-3422. Repealed. Laws 1985, LB 6, § 7.

77-3423. Repealed. Laws 1985, LB 6, § 7.

77-3423.01. Repealed. Laws 1985, LB 6, § 7.

77-3424. Repealed. Laws 1985, LB 6, § 7.

77-3425. Repealed. Laws 1985, LB 6, § 7.

77-3426. Repealed. Laws 1985, LB 6, § 7.

77-3427. Repealed. Laws 1985, LB 6, § 7.

77-3428. Repealed. Laws 1985, LB 6, § 7.

77-3429. Repealed. Laws 1985, LB 6, § 7.

77-3430. Repealed. Laws 1985, LB 6, § 7.

77-3431. Repealed. Laws 1985, LB 6, § 7.

77-3432. Repealed. Laws 1985, LB 6, § 7.

77-3432.01. Repealed. Laws 1985, LB 6, § 7.

77-3432.02. Repealed. Laws 1985, LB 6, § 7.

77-3432.03. Repealed. Laws 1985, LB 6, § 7.

77-3432.04. Repealed. Laws 1985, LB 6, § 7.

77-3432.05. Repealed. Laws 1985, LB 6, § 7.

77-3432.06. Repealed. Laws 1985, LB 6, § 7.

77-3432.07. Repealed. Laws 1985, LB 6, § 7.

77-3432.08. Repealed. Laws 1985, LB 6, § 7.

77-3432.09. Repealed. Laws 1985, LB 6, § 7.

77-3432.10. Repealed. Laws 1985, LB 6, § 7.

77-3432.11. Repealed. Laws 1985, LB 6, § 7.

77-3432.12. Repealed. Laws 1985, LB 6, § 7.

77-3433. Repealed. Laws 1985, LB 6, § 7.

77-3434. Repealed. Laws 1985, LB 6, § 7.

77-3435. Repealed. Laws 1985, LB 6, § 7.

77-3436. Repealed. Laws 1985, LB 6, § 7.

77-3437. Repealed. Laws 1996, LB 299, § 35.

77-3438. Repealed. Laws 1996, LB 299, § 35.

77-3438.01. Repealed. Laws 1996, LB 299, § 35.

77-3438.02. Repealed. Laws 1996, LB 299, § 35.

77-3439. Repealed. Laws 1996, LB 299, § 35.

77-3440. Repealed. Laws 1996, LB 299, § 35.

77-3441. Repealed. Laws 1995, LB 613, § 6.

77-3442. Property tax levies; maximum levy; exceptions.

(1) Property tax levies for the support of local governments for fiscal years beginning on or after July 1, 1998, shall be limited to the amounts set forth in this section except as provided in section 77-3444.

(2)(a) Except as provided in subdivisions (2)(b) and (2)(e) of this section, school districts and multiple-district school systems may levy a maximum levy of one dollar and five cents per one hundred dollars of taxable valuation of property subject to the levy.

(b) For each fiscal year prior to fiscal year 2017-18, learning communities may levy a maximum levy for the general fund budgets of member school districts of ninety-five cents per one hundred dollars of taxable valuation of property subject to the levy. The proceeds from the levy pursuant to this subdivision shall be distributed pursuant to section 79-1073.

(c) Except as provided in subdivision (2)(e) of this section, for each fiscal year prior to fiscal year 2017-18, school districts that are members of learning communities may levy for purposes of such districts' general fund budget and special building funds a maximum combined levy of the difference of one dollar and five cents on each one hundred dollars of taxable property subject to the levy minus the learning community levy pursuant to subdivision (2)(b) of this section for such learning community.

(d) Excluded from the limitations in subdivisions (2)(a) and (2)(c) of this section are (i) amounts levied to pay for current and future sums agreed to be paid by a school district to certificated employees in exchange for a voluntary termination of employment occurring prior to September 1, 2017, (ii) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to pay for current and future qualified voluntary termination incentives for certificated teachers pursuant to subsection (3) of section 79-8,142 that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (iii) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to pay for seventy-five percent of the current and future sums agreed to be paid to certificated employees in exchange for a voluntary termination of employment occurring between September 1, 2017, and August 31, 2018, as a result of a collective-bargaining agreement in force and effect on September 1, 2017, that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (iv) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to pay for fifty percent of the current and future sums agreed to be paid to certificated employees in exchange for a voluntary termination of employment occurring between September 1, 2018, and August 31, 2019, as a result of a collective-bargaining agreement in force and effect on September 1, 2017, that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (v) amounts levied by a school district otherwise at the maximum levy pursuant to subdivision (2)(a) of this section to pay for twenty-five percent of the current and future sums agreed to be paid to certificated employees in exchange for a voluntary termination of employment occurring between September 1, 2019, and August 31, 2020, as a result of a collective-bargaining agreement in force and effect on September 1, 2017, that are not otherwise included in an exclusion pursuant to subdivision (2)(d) of this section, (vi) amounts levied in compliance with sections 79-10,110 and 79-10,110.02, and (vii) amounts levied to pay for special building funds and sinking funds established for projects commenced prior to April 1, 1996, for construction, expansion, or alteration of school district buildings. For purposes of this subsection, commenced means any action taken by the school board on the record which commits the board to expend district funds in planning, constructing, or carrying out the project.

(e) Federal aid school districts may exceed the maximum levy prescribed by subdivision (2)(a) or (2)(c) of this section only to the extent necessary to qualify to receive federal aid pursuant to Title VIII of Public Law 103-382, as such title existed on September 1, 2001. For purposes of this subdivision, federal aid school district means any school district which receives ten percent or more of the revenue for its general fund budget from federal government sources pursuant to Title VIII of Public Law 103-382, as such title existed on September 1, 2001.

(f) For each fiscal year, learning communities may levy a maximum levy of one-half cent on each one hundred dollars of taxable property subject to the levy for elementary learning center facility leases, for remodeling of leased elementary learning center facilities, and for up to fifty percent of the estimated cost for focus school or program capital projects approved by the learning community coordinating council pursuant to section 79-2111.

(g) For each fiscal year, learning communities may levy a maximum levy of one and one-half cents on each one hundred dollars of taxable property subject to the levy for early childhood education programs for children in poverty, for elementary learning center employees, for contracts with other entities or individuals who are not employees of the learning community for elementary learning center programs and services, and for pilot projects, except that no more than ten percent of such levy may be used for elementary learning center employees.

(3) For each fiscal year through fiscal year 2023-24, community college areas may levy the levies provided in subdivisions (2)(a) through (c) of section 85-1517, in accordance with the provisions of such subdivisions. For fiscal year 2024-25 and each fiscal year thereafter, community college areas may levy the levies provided in subdivisions (2)(a) and (b) of section 85-1517, in accordance with the provisions of such subdivisions. A community college area may exceed the levy provided in subdivision (2)(a) of section 85-1517 by the amount necessary to generate sufficient revenue as described in section 85-1543 or 85-2238. A community college area may exceed the levy provided in subdivision (2)(b) of section 85-1517 by the amount necessary to retire general obligation bonds assumed by the community college area or issued pursuant to section 85-1515 according to the terms of such bonds or for any obligation pursuant to section 85-1535 entered into prior to January 1, 1997.

(4)(a) Natural resources districts may levy a maximum levy of four and one-half cents per one hundred dollars of taxable valuation of property subject to the levy.

(b) Natural resources districts shall also have the power and authority to levy a tax equal to the dollar amount by which their restricted funds budgeted to administer and implement ground water management activities and integrated management activities under the Nebraska Ground Water Management and Protection Act exceed their restricted funds budgeted to administer and implement ground water management activities and integrated management activities for FY2003-04, not to exceed one cent on each one hundred dollars of taxable valuation annually on all of the taxable property within the district.

(c) In addition, natural resources districts located in a river basin, subbasin, or reach that has been determined to be fully appropriated pursuant to section 46-714 or designated as overappropriated pursuant to section 46-713 by the Department of Natural Resources shall also have the power and authority to levy a tax equal to the dollar amount by which their restricted funds budgeted to administer and implement ground water management activities and integrated management activities under the Nebraska Ground Water Management and Protection Act exceed their restricted funds budgeted to administer and implement ground water management activities and integrated management activities for FY2005-06, not to exceed three cents on each one hundred dollars of taxable valuation on all of the taxable property within the district for fiscal year 2006-07 and each fiscal year thereafter through fiscal year 2017-18.

(5) Any educational service unit authorized to levy a property tax pursuant to section 79-1225 may levy a maximum levy of one and one-half cents per one hundred dollars of taxable valuation of property subject to the levy.

(6)(a) Incorporated cities and villages which are not within the boundaries of a municipal county may levy a maximum levy of forty-five cents per one hundred dollars of taxable valuation of property subject to the levy plus an additional five cents per one hundred dollars of taxable valuation to provide financing for the municipality's share of revenue required under an agreement or agreements executed pursuant to the Interlocal Cooperation Act or the Joint Public Agency Act. The maximum levy shall include amounts levied to pay for sums to support a library pursuant to section 51-201, museum pursuant to section 51-501, visiting community nurse, home health nurse, or home health agency pursuant to section 71-1637, or statue, memorial, or monument pursuant to section 80-202.

(b) Incorporated cities and villages which are within the boundaries of a municipal county may levy a maximum levy of ninety cents per one hundred dollars of taxable valuation of property subject to the levy. The maximum levy shall include amounts paid to a municipal county for county services, amounts levied to pay for sums to support a library pursuant to section 51-201, a museum pursuant to section 51-501, a visiting community nurse, home health nurse, or home health agency pursuant to section 71-1637, or a statue, memorial, or monument pursuant to section 80-202.

(7) Sanitary and improvement districts which have been in existence for more than five years may levy a maximum levy of forty cents per one hundred dollars of taxable valuation of property subject to the levy, and sanitary and improvement districts which have been in existence for five years or less shall not have a maximum levy. Unconsolidated sanitary and improvement districts which have been in existence for more than five years and are located in a municipal county may levy a maximum of eighty-five cents per hundred dollars of taxable valuation of property subject to the levy.

(8) Counties may levy or authorize a maximum levy of fifty cents per one hundred dollars of taxable valuation of property subject to the levy, except that five cents per one hundred dollars of taxable valuation of property subject to the levy may only be levied to provide financing for the county's share of revenue required under an agreement or agreements executed pursuant to the Interlocal Cooperation Act or the Joint Public Agency Act. The maximum levy shall include amounts levied to pay for sums to support a library pursuant to section 51-201 or museum pursuant to section 51-501. The county may allocate up to fifteen cents of its authority to other political subdivisions subject to allocation of property tax authority under subsection (1) of section 77-3443 and not specifically covered in this section to levy taxes as authorized by law which do not collectively exceed fifteen cents per one hundred dollars of taxable valuation on any parcel or item of taxable property. The county may allocate to one or more other political subdivisions subject to allocation of property tax authority by the county under subsection (1) of section 77-3443 some or all of the county's five cents per one hundred dollars of valuation authorized for support of an agreement or agreements to be levied by the political subdivision for the purpose of supporting that political subdivision's share of revenue required under an agreement or agreements executed pursuant to the Interlocal Cooperation Act or the Joint Public Agency Act. If an allocation by a county would cause another county to exceed its levy authority under this section, the second county may exceed the levy authority in order to levy the amount allocated.

(9) Municipal counties may levy or authorize a maximum levy of one dollar per one hundred dollars of taxable valuation of property subject to the levy. The municipal county may allocate levy authority to any political subdivision or entity subject to allocation under section 77-3443.

(10) Beginning July 1, 2016, rural and suburban fire protection districts may levy a maximum levy of ten and one-half cents per one hundred dollars of taxable valuation of property subject to the levy if (a) such district is located in a county that had a levy pursuant to subsection (8) of this section in the previous year of at least forty cents per one hundred dollars of taxable valuation of property subject to the levy or (b) such district had a levy request pursuant to section 77-3443 in any of the three previous years and the county board of the county in which the greatest portion of the valuation of such district is located did not authorize any levy authority to such district in such year.

(11) A regional metropolitan transit authority may levy a maximum levy of ten cents per one hundred dollars of taxable valuation of property subject to the levy for each fiscal year that commences on the January 1 that follows the effective date of the conversion of the transit authority established under the Transit Authority Law into the regional metropolitan transit authority.

(12) Property tax levies (a) for judgments, except judgments or orders from the Commission of Industrial Relations, obtained against a political subdivision which require or obligate a political subdivision to pay such judgment, to the extent such judgment is not paid by liability insurance coverage of a political subdivision, (b) for preexisting lease-purchase contracts approved prior to July 1, 1998, (c) for bonds as defined in section 10-134 approved according to law and secured by a levy on property except as provided in section 44-4317 for bonded indebtedness issued by educational service units and school districts, (d) for payments by a public airport to retire interest-free loans from the Division of Aeronautics of the Department of Transportation in lieu of bonded indebtedness at a lower cost to the public airport, and (e) to pay for cancer benefits provided on or after January 1, 2022, pursuant to the Firefighter Cancer Benefits Act are not included in the levy limits established by this section.

(13) The limitations on tax levies provided in this section are to include all other general or special levies provided by law. Notwithstanding other provisions of law, the only exceptions to the limits in this section are those provided by or authorized by sections 77-3442 to 77-3444.

(14) Tax levies in excess of the limitations in this section shall be considered unauthorized levies under section 77-1606 unless approved under section 77-3444.

(15) For purposes of sections 77-3442 to 77-3444, political subdivision means a political subdivision of this state and a county agricultural society.

(16) For school districts that file a binding resolution on or before May 9, 2008, with the county assessors, county clerks, and county treasurers for all counties in which the school district has territory pursuant to subsection (7) of section 79-458, if the combined levies, except levies for bonded indebtedness approved by the voters of the school district and levies for the refinancing of such bonded indebtedness, are in excess of the greater of (a) one dollar and twenty cents per one hundred dollars of taxable valuation of property subject to the levy or (b) the maximum levy authorized by a vote pursuant to section 77-3444, all school district levies, except levies for bonded indebtedness approved by the voters of the school district and levies for the refinancing of such bonded indebtedness, shall be considered unauthorized levies under section 77-1606.

Source:Laws 1996, LB 1114, § 1;    Laws 1997, LB 269, § 56;    Laws 1998, LB 306, § 36;    Laws 1998, LB 1104, § 17;    Laws 1999, LB 87, § 87;    Laws 1999, LB 141, § 11;    Laws 1999, LB 437, § 26;    Laws 2001, LB 142, § 57;    Laws 2002, LB 568, § 9;    Laws 2002, LB 898, § 1;    Laws 2002, LB 1085, § 19;    Laws 2003, LB 540, § 2;    Laws 2004, LB 962, § 110;    Laws 2004, LB 1093, § 1;    Laws 2005, LB 38, § 2;    Laws 2006, LB 968, § 12;    Laws 2006, LB 1024, § 14;    Laws 2006, LB 1226, § 30;    Laws 2007, LB342, § 31;    Laws 2007, LB641, § 4;    Laws 2007, LB701, § 33;    Laws 2008, LB988, § 2;    Laws 2008, LB1154, § 5;    Laws 2009, LB121, § 11;    Laws 2010, LB1070, § 4;    Laws 2010, LB1072, § 3;    Laws 2011, LB59, § 2;    Laws 2011, LB400, § 2;    Laws 2012, LB946, § 10;    Laws 2012, LB1104, § 1;    Laws 2013, LB585, § 1;    Laws 2015, LB261, § 13;    Laws 2015, LB325, § 7;    Laws 2016, LB959, § 1;    Laws 2016, LB1067, § 10;    Laws 2017, LB339, § 269;    Laws 2017, LB512, § 6;    Laws 2019, LB63, § 6;    Laws 2019, LB492, § 42;    Laws 2021, LB432, § 14;    Laws 2023, LB243, § 12.    
Operative Date: September 2, 2023


Cross References

Annotations

77-3443. Other political subdivisions; levy limit; levy request; governing body; duties; allocation of levy.

(1) All political subdivisions, other than (a) school districts, community colleges, natural resources districts, educational service units, cities, villages, counties, municipal counties, rural and suburban fire protection districts that have levy authority pursuant to subsection (10) of section 77-3442, and sanitary and improvement districts and (b) political subdivisions subject to municipal allocation under subsection (2) of this section, may levy taxes as authorized by law which are authorized by the county board of the county or the council of a municipal county in which the greatest portion of the valuation is located, which are counted in the county or municipal county levy limit provided in section 77-3442, and which do not collectively total more than fifteen cents per one hundred dollars of taxable valuation on any parcel or item of taxable property for all governments for which allocations are made by the municipality, county, or municipal county, except that such limitation shall not apply to property tax levies for preexisting lease-purchase contracts approved prior to July 1, 1998, for bonded indebtedness approved according to law and secured by a levy on property, and for payments by a public airport to retire interest-free loans from the Division of Aeronautics of the Department of Transportation in lieu of bonded indebtedness at a lower cost to the public airport. The county board or council shall review and approve or disapprove the levy request of all political subdivisions subject to this subsection. The county board or council may approve all or a portion of the levy request and may approve a levy request that would allow the requesting political subdivision to levy a tax at a levy greater than that permitted by law. Unless a transit authority elects to convert to a regional metropolitan transit authority in accordance with the Regional Metropolitan Transit Authority Act, and for each fiscal year of such a transit authority until the first fiscal year commencing after the effective date of such conversion, the county board of a county or the council of a municipal county which contains a transit authority established pursuant to the Transit Authority Law shall allocate no less than three cents per one hundred dollars of taxable property within the city or municipal county subject to the levy to the transit authority if requested by such authority. For any political subdivision subject to this subsection that receives taxes from more than one county or municipal county, the levy shall be allocated only by the county or municipal county in which the greatest portion of the valuation is located. The county board of equalization shall certify all levies by October 20 to insure that the taxes levied by political subdivisions subject to this subsection do not exceed the allowable limit for any parcel or item of taxable property. The levy allocated by the county or municipal county may be exceeded as provided in section 77-3444.

(2) All city airport authorities established under the Cities Airport Authorities Act, community redevelopment authorities established under the Community Development Law, transit authorities established under the Transit Authority Law unless and until the first fiscal year commencing after the effective date of any conversion by such a transit authority into a regional metropolitan transit authority pursuant to the Regional Metropolitan Transit Authority Act, and offstreet parking districts established under the Offstreet Parking District Act may be allocated property taxes as authorized by law which are authorized by the city, village, or municipal county and are counted in the city or village levy limit or municipal county levy limit provided by section 77-3442, except that such limitation shall not apply to property tax levies for preexisting lease-purchase contracts approved prior to July 1, 1998, for bonded indebtedness approved according to law and secured by a levy on property, and for payments by a public airport to retire interest-free loans from the Division of Aeronautics of the Department of Transportation in lieu of bonded indebtedness at a lower cost to the public airport. For offstreet parking districts established under the Offstreet Parking District Act, the tax shall be counted in the allocation by the city proportionately, by dividing the total taxable valuation of the taxable property within the district by the total taxable valuation of the taxable property within the city multiplied by the levy of the district. Unless a transit authority elects to convert into a regional metropolitan transit authority pursuant to the Regional Metropolitan Transit Authority Act, and for each fiscal year of such a transit authority until the first fiscal year commencing after the effective date of such conversion, the city council of a city which has established a transit authority pursuant to the Transit Authority Law or the council of a municipal county which contains a transit authority shall allocate no less than three cents per one hundred dollars of taxable property subject to the levy to the transit authority if requested by such authority. The city council, village board, or council shall review and approve or disapprove the levy request of the political subdivisions subject to this subsection. The city council, village board, or council may approve all or a portion of the levy request and may approve a levy request that would allow a levy greater than that permitted by law. The levy allocated by the municipality or municipal county may be exceeded as provided in section 77-3444.

(3) On or before August 1, all political subdivisions subject to county, municipal, or municipal county levy authority under this section shall submit a preliminary request for levy allocation to the county board, city council, village board, or council that is responsible for levying such taxes. The preliminary request of the political subdivision shall be in the form of a resolution adopted by a majority vote of members present of the political subdivision's governing body. The failure of a political subdivision to make a preliminary request shall preclude such political subdivision from using procedures set forth in section 77-3444 to exceed the final levy allocation as determined in subsection (4) of this section.

(4) Each county board, city council, village board, or council shall (a) adopt a resolution by a majority vote of members present which determines a final allocation of levy authority to its political subdivisions and (b) forward a copy of such resolution to the chairperson of the governing body of each of its political subdivisions. No final levy allocation shall be changed after September 1 except by agreement between both the county board, city council, village board, or council which determined the amount of the final levy allocation and the governing body of the political subdivision whose final levy allocation is at issue.

Source:Laws 1996, LB 1114, § 2;    Laws 1997, LB 269, § 57;    Laws 1998, LB 306, § 37;    Laws 1999, LB 141, § 12;    Laws 2001, LB 142, § 58;    Laws 2002, LB 994, § 26;    Laws 2015, LB325, § 8;    Laws 2017, LB339, § 270;    Laws 2019, LB492, § 43;    Laws 2021, LB644, § 22.    


Cross References

77-3444. Authority to exceed maximum levy; procedure.

(1) A political subdivision may exceed the limits provided in section 77-3442 or a final levy allocation determination as provided in section 77-3443 by an amount not to exceed a maximum levy approved by a majority of registered voters voting on the issue in a primary, general, or special election at which the issue is placed before the registered voters. A vote to exceed the limits provided in section 77-3442 or a final levy allocation as provided in section 77-3443 must be approved prior to October 10 of the fiscal year which is to be the first to exceed the limits or final levy allocation. The governing body of the political subdivision may call for the submission of the issue to the voters (a) by passing a resolution calling for exceeding the limits or final levy allocation by a vote of at least two-thirds of the members of the governing body and delivering a copy of the resolution to the county clerk or election commissioner of every county which contains all or part of the political subdivision or (b) upon receipt of a petition by the county clerk or election commissioner of every county containing all or part of the political subdivision requesting an election signed by at least five percent of the registered voters residing in the political subdivision. The resolution or petition shall include the amount of levy which would be imposed in excess of the limits provided in section 77-3442 or the final levy allocation as provided in section 77-3443 and the duration of the excess levy authority. The excess levy authority shall not have a duration greater than five years. Any resolution or petition calling for a special election shall be filed with the county clerk or election commissioner on or before the fifth Friday prior to the election, and the time of publication and providing a copy of the notice of election required in section 32-802 shall be no later than twenty days prior to the election. The county clerk or election commissioner shall place the issue on the ballot at an election as called for in the resolution or petition which is at least thirty-one days after receipt of the resolution or petition. The election shall be held pursuant to the Election Act. For petitions filed with the county clerk or election commissioner on or after May 1, 1998, the petition shall be in the form as provided in sections 32-628 to 32-631. Any excess levy authority approved under this section shall terminate pursuant to its terms, on a vote of the governing body of the political subdivision to terminate the authority to levy more than the limits, at the end of the fourth fiscal year following the first year in which the levy exceeded the limit or the final levy allocation, or as provided in subsection (4) of this section, whichever is earliest. A governing body may pass no more than one resolution calling for an election pursuant to this section during any one calendar year. Only one election may be held in any one calendar year pursuant to a petition initiated under this section.

(2) The ballot question may include any terms and conditions set forth in the resolution or petition and shall include the following: "Shall (name of political subdivision) be allowed to levy a property tax not to exceed ............ cents per one hundred dollars of taxable valuation in excess of the limits prescribed by law until fiscal year ............ for the purposes of (general operations; building construction, remodeling, or site acquisition; or both general operations and building construction, remodeling, or site acquisition)?". If a majority of the votes cast upon the ballot question are in favor of such tax, the county board shall authorize a tax in excess of the limits in section 77-3442 or the final levy allocation in section 77-3443 but such tax shall not exceed the amount stated in the ballot question. If a majority of those voting on the ballot question are opposed to such tax, the governing body of the political subdivision shall not impose such tax.

(3) In lieu of the election procedures in subsection (1) of this section, any political subdivision subject to section 77-3443 and villages may approve a levy in excess of the limits in section 77-3442 or the final levy allocation provided in section 77-3443 for a period of one year at a meeting of the residents of the political subdivision or village, called after notice is published in a newspaper of general circulation in the political subdivision or village at least twenty days prior to the meeting. At least ten percent of the registered voters residing in the political subdivision or village shall constitute a quorum for purposes of taking action to exceed the limits or final levy allocation. A record shall be made of the registered voters residing in the political subdivision or village who are present at the meeting. The method of voting at the meeting shall protect the secrecy of the ballot. If a majority of the registered voters present at the meeting vote in favor of exceeding the limits or final levy allocation, a copy of the record of that action shall be forwarded to the county board prior to October 10 and the county board shall authorize a levy as approved by the residents for the year. If a majority of the registered voters present at the meeting vote against exceeding the limits or final allocation, the limit or allocation shall not be exceeded and the political subdivision shall have no power to call for an election under subsection (1) of this section.

(4) A political subdivision may rescind or modify a previously approved excess levy authority prior to its expiration by a majority of registered voters voting on the issue in a primary, general, or special election at which the issue is placed before the registered voters. A vote to rescind or modify must be approved prior to October 10 of the fiscal year for which it is to be effective. The governing body of the political subdivision may call for the submission of the issue to the voters (a) by passing a resolution calling for the rescission or modification by a vote of at least two-thirds of the members of the governing body and delivering a copy of the resolution to the county clerk or election commissioner of every county which contains all or part of the political subdivision or (b) upon receipt of a petition by the county clerk or election commissioner of every county containing all or part of the political subdivision requesting an election signed by at least five percent of the registered voters residing in the political subdivision. The resolution or petition shall include the amount and the duration of the previously approved excess levy authority and a statement that either such excess levy authority will be rescinded or such excess levy authority will be modified. If the excess levy authority will be modified, the amount and duration of such modification shall be stated. The modification shall not have a duration greater than five years. The county clerk or election commissioner shall place the issue on the ballot at an election as called for in the resolution or petition which is at least thirty-one days after receipt of the resolution or petition, and the time of publication and providing a copy of the notice of election required in section 32-802 shall be no later than twenty days prior to the election. The election shall be held pursuant to the Election Act.

(5) For purposes of this section, when the political subdivision is a sanitary and improvement district, registered voter means a person qualified to vote as provided in section 31-735. Any election conducted under this section for a sanitary and improvement district shall be conducted and counted as provided in sections 31-735 to 31-735.06.

(6) For purposes of this section, when the political subdivision is a school district or a multiple-district school system, registered voter includes persons qualified to vote for the members of the school board of the school district which is voting to exceed the maximum levy limits pursuant to this section.

Source:Laws 1996, LB 1114, § 3;    Laws 1997, LB 269, § 58;    Laws 1997, LB 343, § 1;    Laws 1997, LB 806, § 4;    Laws 1998, LB 306, § 38;    Laws 1998, LB 1104, § 18;    Laws 1999, LB 141, § 13;    Laws 2007, LB289, § 1;    Laws 2018, LB377, § 8;    Laws 2022, LB843, § 55.    


Cross References

77-3445. Council on public improvements and services; membership; powers and duties.

A council on public improvements and services may be created within each county or for adjoining counties by resolutions of county boards or by joint resolutions passed by at least three different types of political subdivisions located in the county which are authorized to levy property taxes or which may benefit from property taxes affected by the levy limits imposed by sections 77-3442 to 77-3444. Such councils shall include, but are not limited to, one elected official from each school board, county board, incorporated city or village, natural resources district, community college, educational service unit, hospital district, airport authority, fire protection district, and township taxing property within the county or counties. The elected governing body of each political subdivision which has the legal authority to request property tax funding or a levy set by the county board within a county may by resolution of the governing body appoint one elected official from the governing board to the council on public improvements and services.

Councils on public improvements and services may meet as often as necessary prior to the adoption of budgets and property tax requests affected by the levy limits described in sections 77-3442 to 77-3444. The council shall jointly examine the budgets and property tax requests of each governmental agency or quasi-governmental agency with statutory authority to request a share of the property tax. The county clerk of each county shall attend such meetings and keep a public record of the proceedings. Each council on public improvements and services which is created by resolution as provided in this section shall hold at least one public meeting prior to the adoption of public budgets affected by the levy limits imposed by sections 77-3442 to 77-3444. Such council may continue to meet to discuss issues of public service provision in an effective and coordinated manner, the impacts of levy limits, state and federal law, program, or aid changes, and the joint provision or use of capital facilities and equipment.

Source:Laws 1996, LB 1114, § 4;    Laws 1998, LB 306, § 39;    Laws 2012, LB801, § 100.    


77-3446. Base limitation, defined.

Base limitation means the budget limitation rate applicable to school districts and the limitation on growth of restricted funds applicable to other political subdivisions prior to any increases in the rate as a result of special actions taken by a supermajority of any governing board or of any exception allowed by law. The base limitation is two and one-half percent until adjusted, except that the base limitation for school districts for school fiscal years 2017-18 and 2018-19 is one and one-half percent and for school fiscal year 2019-20 is two percent. The base limitation may be adjusted annually by the Legislature to reflect changes in the prices of services and products used by school districts and political subdivisions.

Source:Laws 1998, LB 989, § 15;    Laws 2001, LB 365, § 1;    Laws 2003, LB 540, § 3;    Laws 2009, LB545, § 2;    Laws 2009, First Spec. Sess., LB5, § 1;    Laws 2011, LB235, § 1;    Laws 2013, LB407, § 1;    Laws 2017, LB409, § 1;    Laws 2019, LB675, § 1.    


77-3501. Definitions, where found.

For purposes of sections 77-3501 to 77-3529, unless the context otherwise requires, the definitions found in sections 77-3501.01 to 77-3505.05 shall be used.

Source:Laws 1979, LB 65, § 1;    Laws 1984, LB 809, § 1;    Laws 1987, LB 376A, § 1;    Laws 1989, LB 84, § 7;    Laws 1994, LB 902, § 25;    Laws 1995, LB 483, § 2;    Laws 1997, LB 182, § 1;    Laws 2009, LB94, § 1;    Laws 2014, LB1087, § 1.    


77-3501.01. Exempt amount, defined.

(1) For purposes of section 77-3507, exempt amount shall mean the lesser of (a) the taxable value of the homestead or (b) one hundred percent of the average assessed value of single-family residential property in the claimant's county of residence as determined in section 77-3506.02 or forty thousand dollars, whichever is greater.

(2) For purposes of section 77-3508, exempt amount shall mean the lesser of (a) the taxable value of the homestead or (b) one hundred twenty percent of the average assessed value of single-family residential property in the claimant's county of residence as determined in section 77-3506.02 or fifty thousand dollars, whichever is greater.

(3) For purposes of section 77-3506, exempt amount shall mean the taxable value of the homestead.

Source:Laws 1994, LB 902, § 27;    Laws 2006, LB 968, § 13;    Laws 2014, LB1087, § 2;    Laws 2018, LB1089, § 4.    


77-3501.02. Closely related, defined.

Closely related shall mean the relationship of being a brother, sister, or parent to another owner-occupant of a homestead.

Source:Laws 1997, LB 182, § 2.    


77-3502. Homestead, defined.

Homestead shall mean either (1) a residence or mobile home, and the land surrounding it, not exceeding one acre, in this state actually occupied as such by a natural person who is the owner of record thereof from January 1 through August 15 in each year, (2) a residence or mobile home located on land leased by the owner of the residence or mobile home, which is located within this state, and is actually occupied by the person who is the owner of record from January 1 through August 15 in each year, or so occupied by the surviving spouse and minor children, if any, of such owner of record during the year of the owner's death, or so much thereof as shall be so occupied, or (3) a residential unit in a dwelling complex, the record title owner of which is a not-for-profit corporation, when the purchase for fair market value of a life tenancy in a taxable unit of the dwelling complex entitles the purchaser to exclusive occupancy of that unit for life, actually occupied by a natural person who has a life tenancy therein from January 1 through August 15 in each year. For purposes of this section, mobile home shall include every transportable or relocatable device of any description without motive power and designed for living quarters, whether or not permanently attached to real estate, but shall not include a cabin trailer registered for operation upon the highways of this state.

Source:Laws 1979, LB 65, § 2;    Laws 1980, LB 647, § 1; Laws 1981, LB 168, § 17;    Laws 1987, LB 376A, § 2.    


77-3503. Owner, defined.

Owner shall mean the owner of record or surviving spouse, the vendee in possession under a land contract or surviving spouse, one of the joint tenants or tenants in common or surviving spouse, or the beneficiary of a trust of which the trustee is the record title owner and the beneficiary-occupant (1) has a specific right to occupy the premises as stated in the trust instrument, (2) has the right to amend or revoke the trust to obtain such power of occupancy or of title, or (3) has the power to withdraw the homestead premises from the trust and place the record title in such occupant's name. Owner shall also mean a resident of a dwelling complex, the record title owner of which is a not-for-profit corporation, who has by purchase for fair market value secured a life tenancy in a taxable unit of the complex. The deed, trust instrument, contract, or memorandum showing that the criteria of this section have been met shall be on file on the appropriate public record as of January 1 of the year for which exemption is sought, except that if such instrument is not on file as of January 1, a copy of such instrument shall be attached to such application before the homestead exemption shall be granted.

Source:Laws 1979, LB 65, § 3;    Laws 1980, LB 647, § 2; Laws 1983, LB 195, § 1.    


77-3504. Household income, defined.

Household income means the total federal adjusted gross income, as defined in the Internal Revenue Code, plus (1) any Nebraska adjustments increasing the total federal adjusted gross income, (2) any interest or dividends received by the owner regarding obligations of the State of Nebraska or any political subdivision, authority, commission, or instrumentality thereof to the extent excluded in the computation of gross income for federal income tax purposes, (3) any social security or railroad retirement benefit to the extent excluded in the computation of gross income for federal income tax purposes, and (4) any carryforward of a net operating loss to the extent deducted for federal income tax purposes, of the claimant and spouse, and any additional owners who are natural persons and who occupy the homestead, for the taxable year of the claimant immediately prior to the year for which the claim for exemption is made, less all medical expenses actually incurred and paid by the claimant, his or her spouse, or any owner-occupant which are in excess of four percent of household income calculated prior to the deduction for medical expenses. For purposes of this section, medical expenses means the costs of health insurance premiums and the costs of goods and services purchased from a person licensed under the Uniform Credentialing Act or a health care facility or health care service licensed under the Health Care Facility Licensure Act for purposes of restoring or maintaining health, including insulin and prescription medicine, but not including nonprescription medicine.

Source:Laws 1979, LB 65, § 4;    Laws 1987, LB 376A, § 3;    Laws 1988, LB 1105, § 1;    Laws 1994, LB 902, § 26;    Laws 1995, LB 574, § 74;    Laws 1996, LB 1039, § 3;    Laws 2000, LB 819, § 152;    Laws 2007, LB463, § 1309;    Laws 2015, LB591, § 14.    


Cross References

77-3505. Qualified claimant, defined.

A qualified claimant shall mean an owner of a homestead during the calendar year for which the claim is made who was sixty-five years of age or older before January 1 of such year and who shall be entitled to relief pursuant to section 77-3507.

Source:Laws 1979, LB 65, § 5;    Laws 1981, LB 179, § 18;    Laws 1986, LB 1258, § 1;    Laws 1987, LB 376A, § 4.    


77-3505.01. Married, defined.

Married shall mean a person who would file a federal individual income tax return as married filing jointly or separately if required to file a return.

Source:Laws 1994, LB 902, § 28.    


77-3505.02. Maximum value, defined.

Maximum value shall mean:

(1) For applicants eligible under section 77-3507, two hundred percent of the average assessed value of single-family residential property in the claimant's county of residence as determined in section 77-3506.02 or ninety-five thousand dollars, whichever is greater; and

(2) For applicants eligible under section 77-3508, two hundred twenty-five percent of the average assessed value of single-family residential property in the claimant's county of residence as determined in section 77-3506.02 or one hundred ten thousand dollars, whichever is greater.

Source:Laws 1994, LB 902, § 29;    Laws 1995, LB 483, § 3;    Laws 1996, LB 1039, § 4;    Laws 1997, LB 182, § 3;    Laws 2006, LB 968, § 14;    Laws 2018, LB1089, § 5.    


77-3505.03. Single, defined.

Single shall mean a person who would file a federal individual income tax return as single or head of household if required to file a return.

Source:Laws 1994, LB 902, § 30.    


77-3505.04. Single-family residential property, defined.

Single-family residential property shall mean all real property with dwellings designed for occupancy by one family or duplexes designed for occupancy by two families.

Source:Laws 1994, LB 902, § 31.    


77-3505.05. Medical condition, defined.

Medical condition means a disease, physical ailment, or injury requiring inpatient care in a hospital, hospice, or residential care facility or involving any period of incapacity due to a condition for which treatment may not be effective.

Source:Laws 2009, LB94, § 2.    


77-3506. Certain veterans; exemption; certain surviving spouses; application.

(1) All homesteads in this state shall be assessed for taxation the same as other property, except that there shall be exempt from taxation, on any homestead described in subsection (2) of this section, one hundred percent of the exempt amount.

(2) The exemption described in subsection (1) of this section shall apply to homesteads of:

(a) A veteran who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions), who is drawing compensation from the United States Department of Veterans Affairs because of one hundred percent service-connected permanent disability, and who is not eligible for total exemption under sections 77-3526 to 77-3528;

(b) An unremarried surviving spouse of a veteran described in subdivision (2)(a) of this section or a surviving spouse of such a veteran who remarries after attaining the age of fifty-seven years;

(c) A veteran who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions), who is drawing compensation from the United States Department of Veterans Affairs because of one hundred percent service-connected temporary disability, and who is not eligible for total exemption under sections 77-3526 to 77-3528, an unremarried spouse of such a veteran, or a surviving spouse of such a veteran who remarries after attaining the age of fifty-seven years;

(d) An unremarried surviving spouse of any veteran, including a veteran other than a veteran described in section 80-401.01, who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions) and who died because of a service-connected disability or a surviving spouse of such a veteran who remarries after attaining the age of fifty-seven years;

(e) An unremarried surviving spouse of a serviceman or servicewoman, including a veteran other than a veteran described in section 80-401.01, whose death while on active duty was service-connected or a surviving spouse of such a serviceman or servicewoman who remarries after attaining the age of fifty-seven years; and

(f) An unremarried surviving spouse of a serviceman or servicewoman who died while on active duty during the periods described in section 80-401.01 or a surviving spouse of such a serviceman or servicewoman who remarries after attaining the age of fifty-seven years.

(3) Application for exemption under subdivision (2)(a) of this section shall be required in every subsequent year evenly divisible by five and shall include certification of the status described in subdivision (2)(a) of this section from the United States Department of Veterans Affairs. Application for exemption under subdivision (2)(b), (c), (d), (e), or (f) of this section shall be required annually and shall include certification of the status described in subdivision (2)(b), (c), (d), (e), or (f) of this section from the United States Department of Veterans Affairs, except that such certification of status shall only be required in every subsequent year evenly divisible by five.

Source:Laws 2014, LB1087, § 5;    Laws 2016, LB683, § 1;    Laws 2018, LB1089, § 6;    Laws 2019, LB512, § 25;    Laws 2023, LB727, § 84.    
Operative Date: January 1, 2024


77-3506.01. Repealed. Laws 1985, Second Spec. Sess., LB 6, § 9.

77-3506.02. County assessor; duties.

After county board of equalization action pursuant to sections 77-1502 to 77-1504.01 and on or before September 1 each year, the county assessor shall certify to the Department of Revenue the average assessed value of single-family residential property in the county for the current year for purposes of sections 77-3507 and 77-3508.

The county assessor shall determine the current average assessed value of single-family residential property from all real property records containing dwellings, mobile homes, and duplexes all of which are designed for occupancy as single-family residential property and any associated land not to exceed one acre.

The county assessor shall also report to the Department of Revenue the computed exempt amounts pursuant to section 77-3501.01.

Source:Laws 1994, LB 902, § 32;    Laws 1995, LB 499, § 1;    Laws 2004, LB 973, § 43;    Laws 2014, LB1087, § 3;    Laws 2018, LB1089, § 7.    


77-3506.03. Exempt amount; reduction; when; homestead exemption; limitation.

For homesteads valued at or above the maximum value, the exempt amount for any exemption under section 77-3507 or 77-3508 shall be reduced by ten percent for each two thousand five hundred dollars of value by which the homestead exceeds the maximum value and any homestead which exceeds the maximum value by twenty thousand dollars or more is not eligible for any exemption under section 77-3507 or 77-3508. This section shall not apply to any exemption under section 77-3506.

Source:Laws 1995, LB 483, § 1;    Laws 2014, LB1087, § 4;    Laws 2018, LB1089, § 8.    


77-3507. Homesteads; assessment; exemptions; qualified claimants; based on income.

(1) All homesteads in this state shall be assessed for taxation the same as other property, except that there shall be exempt from taxation on homesteads of qualified claimants a percentage of the exempt amount as limited by section 77-3506.03. The percentage of the exempt amount shall be determined based on the household income of a claimant pursuant to subsections (2) through (4) of this section.

(2) For 2014, for a qualified married or closely related claimant, the percentage of the exempt amount for which the claimant shall be eligible shall be the percentage in Column B which corresponds with the claimant's household income in Column A in the table found in this subsection.

Column A Column B
Household Income Percentage
In Dollars Of Relief
0 through 31,600 100
31,601 through 33,300 90
33,301 through 35,000 80
35,001 through 36,700 70
36,701 through 38,400 60
38,401 through 40,100 50
40,101 through 41,800 40
41,801 through 43,500 30
43,501 through 45,200 20
45,201 through 46,900 10
46,901 and over 0

(3) For 2014, for a qualified single claimant, the percentage of the exempt amount for which the claimant shall be eligible shall be the percentage in Column B which corresponds with the claimant's household income in Column A in the table found in this subsection.

Column A Column B
Household Income Percentage
In Dollars Of Relief
0 through 26,900 100
26,901 through 28,300 90
28,301 through 29,700 80
29,701 through 31,100 70
31,101 through 32,500 60
32,501 through 33,900 50
33,901 through 35,300 40
35,301 through 36,700 30
36,701 through 38,100 20
38,101 through 39,500 10
39,501 and over 0

(4) For exemption applications filed in calendar years 2015 through 2017, the income eligibility amounts in subsections (2) and (3) of this section shall be adjusted by the percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue Code of 1986, as it existed prior to December 22, 2017. For exemption applications filed in calendar year 2018 and each calendar year thereafter, the income eligibility amounts in subsections (2) and (3) of this section shall be adjusted by the percentage change in the Consumer Price Index for All Urban Consumers published by the federal Bureau of Labor Statistics from the twelve months ending on August 31, 2016, to the twelve months ending on August 31 of the year preceding the applicable calendar year. The income eligibility amounts shall be adjusted for cumulative inflation since 2014. If any amount is not a multiple of one hundred dollars, the amount shall be rounded to the next lower multiple of one hundred dollars.

Source:Laws 1979, LB 65, § 7;    Laws 1980, LB 647, § 4; Laws 1981, LB 179, § 19;    Laws 1984, LB 956, § 1;    Laws 1988, LB 1105, § 2;    Laws 1994, LB 902, § 33;    Laws 1995, LB 483, § 4;    Laws 1997, LB 182, § 4;    Laws 1999, LB 179, § 1;    Laws 2014, LB986, § 1;    Laws 2018, LB1089, § 9.    


77-3508. Homesteads; assessment; exemptions; individuals; based on disability and income.

(1)(a) All homesteads in this state shall be assessed for taxation the same as other property, except that there shall be exempt from taxation, on any homestead described in subdivision (b) of this subsection, a percentage of the exempt amount as limited by section 77-3506.03. The exemption shall be based on the household income of a claimant pursuant to subsections (2) through (4) of this section.

(b) The exemption described in subdivision (a) of this subsection shall apply to homesteads of:

(i) Veterans as defined in section 80-401.01 who were discharged or otherwise separated with a characterization of honorable or general (under honorable conditions) and who are totally disabled by a non-service-connected accident or illness;

(ii) Individuals who have a permanent physical disability and have lost all mobility so as to preclude locomotion without the use of a mechanical aid or a prosthetic device as defined in section 77-2704.09;

(iii) Individuals who have undergone amputation of both arms above the elbow or who have a permanent partial disability of both arms in excess of seventy-five percent; and

(iv) Beginning January 1, 2015, individuals who have a developmental disability as defined in section 83-1205.

(c) Application for the exemption described in subdivision (a) of this subsection shall include certification from a qualified medical physician, physician assistant, or advanced practice registered nurse for subdivisions (b)(i) through (b)(iii) of this subsection, certification from the United States Department of Veterans Affairs affirming that the homeowner is totally disabled due to non-service-connected accident or illness for subdivision (b)(i) of this subsection, or certification from the Department of Health and Human Services for subdivision (b)(iv) of this subsection. Such certification from a qualified medical physician, physician assistant, or advanced practice registered nurse or from the Department of Health and Human Services shall be made on forms prescribed by the Department of Revenue. If an individual described in subdivision (b)(i), (ii), (iii), or (iv) of this subsection is granted a homestead exemption pursuant to this section for any year, such individual shall not be required to submit the certification required under this subdivision in succeeding years if no change in medical condition has occurred, except that the county assessor or the Tax Commissioner may request such certification to verify that no change in medical condition has occurred.

(2) For 2014, for a married or closely related claimant as described in subsection (1) of this section, the percentage of the exempt amount for which the claimant shall be eligible shall be the percentage in Column B which corresponds with the claimant's household income in Column A in the table found in this subsection.

Column A Column B
Household Income Percentage
In Dollars Of Relief
0 through 34,700 100
34,701 through 36,400 90
36,401 through 38,100 80
38,101 through 39,800 70
39,801 through 41,500 60
41,501 through 43,200 50
43,201 through 44,900 40
44,901 through 46,600 30
46,601 through 48,300 20
48,301 through 50,000 10
50,001 and over 0

(3) For 2014, for a single claimant as described in subsection (1) of this section, the percentage of the exempt amount for which the claimant shall be eligible shall be the percentage in Column B which corresponds with the claimant's household income in Column A in the table found in this subsection.

Column A Column B
Household Income Percentage
In Dollars Of Relief
0 through 30,300 100
30,301 through 31,700 90
31,701 through 33,100 80
33,101 through 34,500 70
34,501 through 35,900 60
35,901 through 37,300 50
37,301 through 38,700 40
38,701 through 40,100 30
40,101 through 41,500 20
41,501 through 42,900 10
42,901 and over 0

(4) For exemption applications filed in calendar years 2015 through 2017, the income eligibility amounts in subsections (2) and (3) of this section shall be adjusted by the percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue Code of 1986, as it existed prior to December 22, 2017. For exemption applications filed in calendar year 2018 and each calendar year thereafter, the income eligibility amounts in subsections (2) and (3) of this section shall be adjusted by the percentage change in the Consumer Price Index for All Urban Consumers published by the federal Bureau of Labor Statistics from the twelve months ending on August 31, 2016, to the twelve months ending on August 31 of the year preceding the applicable calendar year. The income eligibility amounts shall be adjusted for cumulative inflation since 2014. If any amount is not a multiple of one hundred dollars, the amount shall be rounded to the next lower multiple of one hundred dollars.

Source:Laws 1979, LB 65, § 8;    Laws 1980, LB 647, § 5; Laws 1981, LB 478, § 1; Laws 1983, LB 195, § 2;    Laws 1986, LB 1258, § 2;    Laws 1987, LB 376A, § 5;    Laws 1988, LB 1105, § 3;    Laws 1991, LB 2, § 17;    Laws 1994, LB 902, § 34;    Laws 1995, LB 483, § 5;    Laws 1997, LB 182, § 5;    Laws 1999, LB 179, § 2;    Laws 2000, LB 1279, § 2;    Laws 2005, LB 17, § 1;    Laws 2005, LB 54, § 17;    Laws 2014, LB986, § 2;    Laws 2016, LB776, § 6;    Laws 2017, LB20, § 1;    Laws 2018, LB1089, § 10;    Laws 2019, LB512, § 26.    


77-3509. Repealed. Laws 2018, LB1089, § 25.

77-3509.01. Transfer of exemption to new homestead; procedure.

If an owner of a homestead applies for an exemption under section 77-3506, 77-3507, or 77-3508 for any year and such owner subsequently becomes the owner of another homestead prior to August 15 of such year, the owner may file an application with the county assessor of the county where the new homestead is located for a transfer of the exemption to the new homestead. The owner shall file the application for transfer with the county assessor on or before August 15 of such year or within thirty days after receiving a notice of rejection on the owner's application for exemption for the original homestead. The county assessor shall examine each application for transfer and determine whether or not the new homestead, except for the January 1 through August 15 ownership and occupancy requirement and the income requirements, is eligible for exemption under section 77-3506, 77-3507, or 77-3508. If the application for transfer is approved by the county assessor, he or she shall make a deduction upon the assessment rolls using the same criteria as previously applied to the original homestead. The county assessor may allow the application for transfer to also be considered an application for a homestead exemption for the subsequent year.

Source:Laws 1983, LB 494, § 5;    Laws 1984, LB 809, § 4;    Laws 1985, Second Spec. Sess., LB 6, § 1;    Laws 1987, LB 376A, § 6;    Laws 1988, LB 834, § 1;    Laws 1996, LB 921, § 1;    Laws 2009, LB302, § 1;    Laws 2014, LB1087, § 7;    Laws 2018, LB1089, § 11.    


77-3509.02. Transfer of exemption to new homestead; rejection for original homestead; county assessor; duties.

If the owner of a homestead files an application for transfer of the homestead exemption pursuant to section 77-3509.01 and such application for transfer is approved, the owner's application for exemption for the original homestead shall be rejected for such year if the application was based on the status of such owner. If the transfer involves property in more than one county, the county assessor of the county where the new homestead is located shall notify the other county assessor and the Department of Revenue of the application for transfer within ten days after receipt of such application.

Source:Laws 1983, LB 494, § 6;    Laws 1984, LB 809, § 5;    Laws 1985, Second Spec. Sess., LB 6, § 2;    Laws 1987, LB 376A, § 7;    Laws 1988, LB 834, § 2;    Laws 1996, LB 921, § 2;    Laws 2009, LB302, § 2;    Laws 2014, LB1087, § 8;    Laws 2018, LB1089, § 12.    


77-3509.03. Homesteads; exemptions; property tax statement; contents.

All property tax statements for homesteads granted an exemption in sections 77-3506, 77-3507, and 77-3508 shall show the amount of the exemption, the tax that would otherwise be due, and a statement that the tax loss shall be reimbursed by the state as a homestead exemption.

Source:Laws 1984, LB 956, § 3;    Laws 1989, LB 84, § 9;    Laws 1991, LB 9, § 3;    Laws 2014, LB1087, § 9;    Laws 2018, LB1089, § 13.    


77-3509.04. Repealed. Laws 1991, LB 9, § 8.

77-3510. Homesteads; exemptions; transfers; claimants; forms; contents; county assessor; furnish; confidentiality.

On or before February 1 of each year, the Tax Commissioner shall prescribe forms to be used by all claimants for homestead exemption or for transfer of homestead exemption. Such forms shall contain provisions for the showing of all information which the Tax Commissioner may deem necessary to (1) enable the county officials and the Tax Commissioner to determine whether each claim for exemption under sections 77-3506, 77-3507, and 77-3508 should be allowed and (2) enable the county assessor to determine whether each claim for transfer of homestead exemption pursuant to section 77-3509.01 should be allowed. It shall be the duty of the county assessor of each county in this state to furnish such forms, upon request, to each person desiring to make application for homestead exemption or for transfer of homestead exemption. The forms so prescribed shall be used uniformly throughout the state, and no application for exemption or for transfer of homestead exemption shall be allowed unless the applicant uses the prescribed form in making an application. The forms shall require the attachment of an income statement for any applicant seeking an exemption under section 77-3507 or 77-3508 as prescribed by the Tax Commissioner fully accounting for all household income. The Tax Commissioner shall provide to each county assessor claim forms and address lists of applicants from the prior year in the manner approved by the Tax Commissioner. The application and information contained on any attachments to the application shall be confidential and available to tax officials only.

Source:Laws 1979, LB 65, § 10;    Laws 1983, LB 494, § 2;    Laws 1983, LB 396, § 1;    Laws 1984, LB 809, § 6;    Laws 1985, Second Spec. Sess., LB 6, § 3;    Laws 1986, LB 1258, § 4;    Laws 1987, LB 376A, § 8;    Laws 1989, LB 84, § 10;    Laws 1991, LB 9, § 4;    Laws 1994, LB 902, § 36;    Laws 1995, LB 135, § 1;    Laws 1996, LB 921, § 3;    Laws 1997, LB 397, § 26;    Laws 2003, LB 192, § 1;    Laws 2007, LB145, § 1;    Laws 2014, LB1087, § 10;    Laws 2017, LB217, § 20;    Laws 2018, LB1089, § 14.    


77-3511. Homestead; exemption; application; execution.

The application for homestead exemption or for transfer of homestead exemption shall be signed by the owner of the property who qualifies for exemption under sections 77-3501 to 77-3529 unless the owner is an incompetent or unable to make such application, in which case it shall be signed by the guardian. If an owner who in all respects qualifies for a homestead exemption under such sections dies after January 1 and before the last day for filing an application for a homestead exemption and before applying for a homestead exemption, his or her personal representative may file the application for exemption on or before the last day for filing an application for a homestead exemption of that year if the surviving spouse of such owner continues to occupy the homestead. Any exemption granted as a result of such application signed by a personal representative shall be in effect for only the year in which the owner died.

Source:Laws 1979, LB 65, § 11;    Laws 1980, LB 647, § 6; Laws 1983, LB 195, § 4;    Laws 1983, LB 494, § 3;    Laws 1984, LB 809, § 7;    Laws 1986, LB 1258, § 5;    Laws 1987, LB 376A, § 9;    Laws 1988, LB 1105, § 4;    Laws 1989, LB 84, § 11;    Laws 1994, LB 902, § 37;    Laws 2014, LB1087, § 11.    


77-3512. Homestead; exemption; application; when filed; failure to file; effect.

(1) It shall be the duty of each owner who wants a homestead exemption under section 77-3506, 77-3507, or 77-3508 to file an application therefor with the county assessor of the county in which the homestead is located after February 1 and on or before June 30 of each year, except that:

(a) The county board of the county in which the homestead is located may, by majority vote, extend the deadline for an applicant to on or before July 20. An extension shall not be granted to an applicant who received an extension in the immediately preceding year;

(b) An owner may file a late application pursuant to section 77-3514.01 if he or she includes documentation of a medical condition which impaired the owner's ability to file the application in a timely manner;

(c) An owner may file a late application pursuant to section 77-3514.01 if he or she includes a copy of the death certificate of a spouse who died during the year for which the exemption is requested;

(d) A veteran qualifying for a homestead exemption under subdivision (2)(a) of section 77-3506 shall only be required to file an application in every subsequent year evenly divisible by five; and

(e) If a veteran who has been granted a homestead exemption under subdivision (2)(a) of section 77-3506 dies during the five-year exemption period, the surviving spouse of such veteran shall continue to receive such exemption for the remainder of the five-year exemption period. After the expiration of the five-year exemption period, the surviving spouse shall be required to file for an exemption under subdivision (2)(b) of section 77-3506 on an annual basis.

(2) Failure to file an application as required in subsection (1) of this section shall constitute a waiver of the exemption for the year in which the failure occurred.

Source:Laws 1979, LB 65, § 12;    Laws 1980, LB 647, § 7; Laws 1983, LB 195, § 5;    Laws 1983, LB 396, § 2;    Laws 1984, LB 809, § 8;    Laws 1985, Second Spec. Sess., LB 6, § 4;    Laws 1989, LB 84, § 12;    Laws 1991, LB 9, § 5;    Laws 1991, LB 773, § 21; Laws 1995, LB 133, § 1;    Laws 1996, LB 1039, § 5;    Laws 1997, LB 397, § 27;    Laws 2003, LB 192, § 2;    Laws 2009, LB94, § 3;    Laws 2014, LB1087, § 12;    Laws 2018, LB1089, § 15;    Laws 2021, LB313, § 1;    Laws 2023, LB727, § 85.    
Operative Date: January 1, 2024


77-3513. Homestead; exemption; notice; contents.

The county assessor shall mail a notice on or before April 1 to claimants who are the owners of a homestead which was granted an exemption under section 77-3506, 77-3507, or 77-3508 and who are required to refile for such exemption in the current year unless the claimant has already filed the application for the current year or the county assessor has reason to believe there has been a change of circumstances so that the claimant no longer qualifies. The notice shall include the claimant's name, the application deadlines for the current year, a list of documents that must be filed with the application, and the county assessor's office address and telephone number.

Source:Laws 1979, LB 65, § 13;    Laws 1980, LB 647, § 8; Laws 1983, LB 195, § 6;    Laws 1983, LB 396, § 3;    Laws 1984, LB 809, § 9;    Laws 1985, Second Spec. Sess., LB 6, § 5;    Laws 1986, LB 1258, § 6;    Laws 1987, LB 376A, § 10;    Laws 1991, LB 773, § 22; Laws 1994, LB 902, § 38;    Laws 1995, LB 133, § 2;    Laws 1996, LB 1039, § 6;    Laws 1997, LB 397, § 28;    Laws 1999, LB 179, § 4;    Laws 2005, LB 54, § 19;    Laws 2007, LB145, § 2;    Laws 2009, LB94, § 4;    Laws 2014, LB986, § 4;    Laws 2014, LB1087, § 13;    Laws 2018, LB1089, § 16;    Laws 2023, LB727, § 86.    
Operative Date: January 1, 2024


77-3514. Homestead; exemption; failure to give notice; penalty; lien.

A claimant who is the owner of a homestead which has been granted an exemption under section 77-3506, 77-3507, or 77-3508 may notify the county assessor by August 15 of each year of any change in the homestead exemption status occurring in the preceding portion of the calendar year as a result of a transfer of the homestead exemption pursuant to sections 77-3509.01 and 77-3509.02. If by his or her failure to give such notice any property owner permits the allowance of the homestead exemption for any year after the homestead exemption status of such property has changed, an amount equal to the amount of the taxes lawfully due but not paid by reason of such unlawful and improper allowance of homestead exemption, together with penalty and interest on such total sum as provided by statute on delinquent ad valorem taxes, shall be due and shall upon entry of the amount thereof on the books of the county treasurer be a lien on such property while unpaid. Such lien may be enforced in the manner provided for liens for other delinquent taxes. Any person who has permitted the improper and unlawful allowance of such homestead exemption on his or her property shall, as an additional penalty, also forfeit his or her right to a homestead exemption on any property in this state for the two succeeding years.

Source:Laws 1979, LB 65, § 14;    Laws 1983, LB 494, § 4;    Laws 1983, LB 195, § 7;    Laws 1983, LB 396, § 4;    Laws 1984, LB 809, § 10;    Laws 1985, Second Spec. Sess., LB 6, § 6;    Laws 1987, LB 376A, § 11;    Laws 1988, LB 834, § 3;    Laws 1988, LB 1105, § 5;    Laws 1991, LB 2, § 18;    Laws 1991, LB 773, § 23; Laws 1994, LB 902, § 39;    Laws 1995, LB 133, § 3;    Laws 1995, LB 135, § 2;    Laws 1996, LB 1039, § 7;    Laws 1997, LB 397, § 29;    Laws 2005, LB 54, § 20;    Laws 2007, LB145, § 3;    Laws 2009, LB94, § 5;    Laws 2014, LB1087, § 14;    Laws 2018, LB1089, § 17.    


77-3514.01. Homestead; exemption; late application because of medical condition or death of spouse; filing; form; county assessor; powers and duties; rejection; notice; hearing.

(1) A late application filed pursuant to section 77-3512 because of a medical condition which impaired the claimant's ability to apply in a timely manner shall only be for the current tax year. The late application shall be filed with the county assessor on or before June 30 of the year in which the real estate taxes levied on the property for the current year become delinquent.

(2) A late application filed pursuant to section 77-3512 because of the death of a spouse during the year for which the exemption is requested shall only be for the current tax year. The late application shall be filed with the county assessor on or before June 30 of the year in which the real estate taxes levied on the property for the current year become delinquent.

(3) Applications filed under subsection (1) of this section shall include certification of the medical condition affecting the filing from a physician, physician assistant, or advanced practice registered nurse. The medical certification shall be made on forms prescribed by the Tax Commissioner.

(4) Applications filed under subsection (2) of this section shall include a copy of the death certificate of the deceased spouse.

(5) The county assessor shall approve or reject the late filing within thirty days of receipt of the late filing. If approved, the county assessor shall mark it approved and sign the application. In case he or she finds that the exemption should not be allowed by reason of not being in conformity to law, the county assessor shall mark the application as rejected and state the reason for rejection and sign the application. In any case when the county assessor rejects an exemption, he or she shall notify the applicant of such action by mailing written notice to the applicant at the address shown in the application. The notice shall be on forms prescribed by the Tax Commissioner. In any case when the county assessor rejects an exemption, such applicant may obtain a hearing before the county board of equalization in the manner described by section 77-3519.

Source:Laws 2009, LB94, § 7;    Laws 2018, LB1089, § 18;    Laws 2021, LB313, § 2.    


77-3515. Homestead; exemption; new owner of property; when claimed.

Any purchaser, new resident, or new owner of property must claim a homestead exemption as provided in section 77-3512 before the allowance to the owner on such property shall be lawful.

Source:Laws 1979, LB 65, § 15;    Laws 1983, LB 195, § 8.    


77-3516. Homestead; exemption; application; county assessor; duties.

The county assessor shall examine each application for homestead exemption filed with him or her for an exemption pursuant to section 77-3506, 77-3507, or 77-3508 and shall determine, except for the income requirements, whether or not such application should be approved or rejected. If the application is approved, the county assessor shall mark the same approved and sign the application. In case he or she finds that the exemption should not be allowed by reason of not being in conformity to law, the county assessor shall mark the application rejected, state thereon the reason for such rejection, and sign the application. In any case when the county assessor rejects an application for exemption, he or she shall notify the applicant of such action by mailing written notice to the applicant at the address shown in the application within ten days after the application is rejected. The notice shall be on forms prescribed by the Tax Commissioner.

Source:Laws 1979, LB 65, § 16;    Laws 1980, LB 647, § 9; Laws 1983, LB 396, § 5;    Laws 1984, LB 809, § 11;    Laws 1985, Second Spec. Sess., LB 6, § 7;    Laws 1986, LB 1258, § 7;    Laws 1987, LB 376A, § 12;    Laws 1989, LB 84, § 13;    Laws 1991, LB 9, § 6;    Laws 1991, LB 773, § 24; Laws 1995, LB 133, § 4;    Laws 1996, LB 1039, § 8;    Laws 1997, LB 397, § 30;    Laws 2009, LB94, § 6;    Laws 2014, LB1087, § 15;    Laws 2018, LB1089, § 19.    


77-3516.01. Repealed. Laws 1985, Second Spec. Sess., LB 6, § 9.

77-3517. Homestead; application for exemption; county assessor; Tax Commissioner; duties; refunds; liens; interest.

(1) On or before August 1 of each year, the county assessor shall forward the approved applications for homestead exemptions and a copy of the certification of disability status that have been examined pursuant to section 77-3516 to the Tax Commissioner. The Tax Commissioner shall determine if the applicant meets the income requirements and may also review any other application information he or she deems necessary in order to determine whether the application should be approved. The Tax Commissioner shall, on or before November 1, certify his or her determinations to the county assessor. If the application is approved, the county assessor shall make the proper deduction on the assessment rolls. If the application is denied or approved in part, the Tax Commissioner shall notify the applicant of the denial or partial approval by mailing written notice to the applicant at the address shown on the application. The applicant may appeal the Tax Commissioner's denial or partial approval pursuant to section 77-3520. Late applications authorized under section 77-3512 shall be processed in a similar manner after approval by the county assessor. If the Tax Commissioner approves a late application after any of the real estate taxes in question become delinquent, such delinquency and any interest associated with the amount of the approved exemption shall be removed from the tax rolls of the county within thirty days after the county assessor receives notice from the Tax Commissioner of the approved exemption.

(2)(a) Upon his or her own action or upon a request by an applicant, a spouse, or an owner-occupant, the Tax Commissioner may review any information necessary to determine whether an application is in compliance with sections 77-3501 to 77-3529. Any action taken by the Tax Commissioner pursuant to this subsection shall be taken within three years after December 31 of the year in which the exemption was claimed.

(b) If after completion of the review the Tax Commissioner determines that an exemption should have been approved or increased, the Tax Commissioner shall notify the applicant, spouse, or owner-occupant and the county treasurer and assessor of his or her determination. The applicant, spouse, or owner-occupant shall receive a refund of the tax, if any, that was paid as a result of the exemption being denied, in whole or in part. The county treasurer shall make the refund and shall amend the county's claim for reimbursement from the state.

(c) If after completion of the review the Tax Commissioner determines that an exemption should have been denied or reduced, the Tax Commissioner shall notify the applicant, spouse, or owner-occupant of such denial or reduction. The applicant, the spouse, and any owner-occupant may appeal the Tax Commissioner's denial or reduction pursuant to section 77-3520. Upon the expiration of the appeal period in section 77-3520, the Tax Commissioner shall notify the county assessor of the denial or reduction and the county assessor shall remove or reduce the exemption from the tax rolls of the county. Upon notification by the Tax Commissioner to the county assessor, the amount of tax due as a result of the action of the Tax Commissioner shall become a lien on the homestead until paid. Upon attachment of the lien, the county treasurer shall refund to the Tax Commissioner the amount of tax equal to the denied or reduced exemption for deposit into the General Fund. No lien shall be created if a change in ownership of the homestead or death of the applicant, the spouse, and all other owner-occupants has occurred prior to the Tax Commissioner's notice to the county assessor. Beginning thirty days after the county assessor receives approval from the county board to remove or reduce the exemption from the tax rolls of the county, interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, shall begin to accrue on the amount of tax due.

Source:Laws 1979, LB 65, § 17;    Laws 1980, LB 647, § 10; Laws 1986, LB 1258, § 8;    Laws 1987, LB 376A, § 13;    Laws 1989, LB 84, § 14;    Laws 1991, LB 9, § 7;    Laws 1991, LB 773, § 25; Laws 1995, LB 133, § 5;    Laws 1995, LB 499, § 2;    Laws 1996, LB 1039, § 9;    Laws 1997, LB 397, § 31;    Laws 2010, LB877, § 6;    Laws 2014, LB1087, § 16;    Laws 2017, LB217, § 21;    Laws 2021, LB313, § 3.    


77-3518. Repealed. Laws 1987, LB 376A, § 21.

77-3519. Homestead; exemption; county assessor; rejection; applicant; complaint; contents; hearing; appeal.

In any case when the county assessor rejects an application for homestead exemption, such applicant may obtain a hearing before the county board of equalization by filing a written complaint with the county clerk. If the application for homestead exemption was rejected on the basis of value, the complaint must be filed by June 30. The county board of equalization may, by majority vote, extend such deadline to July 20. If the application for homestead exemption was rejected on any other basis, the complaint must be filed within thirty days from receipt of the notice from the county assessor showing such rejection. Such complaint shall specify his or her grievances and the pertinent facts in relation thereto, in ordinary and concise language and without repetition, and in such manner as to enable a person of common understanding to know what is intended. The board may take evidence pertinent to such complaint, and for that purpose may compel the attendance of witnesses and the production of books, records, and papers by subpoena. The board shall issue its decision on the complaint within thirty days after the filing of the complaint. Notice of the board's decision shall be mailed by the county clerk to the applicant within seven days after the decision. The taxpayer shall have the right to appeal from the board's decision with reference to the application for homestead exemption to the Tax Equalization and Review Commission in accordance with section 77-5013 within thirty days after the decision.

Source:Laws 1979, LB 65, § 19;    Laws 1987, LB 376A, § 14;    Laws 1995, LB 490, § 177;    Laws 2004, LB 973, § 44;    Laws 2011, LB384, § 19;    Laws 2019, LB512, § 27.    


77-3520. Homestead; exemption; Tax Commissioner; rejection or reduction; petition; contents; hearing; appeal.

In any case when the Tax Commissioner rejects or reduces a claim for exemption, the applicant may obtain a hearing before the Tax Commissioner by filing a written petition with the Tax Commissioner within thirty days from the receipt of the notice of rejection or reduction. The petition shall state, in clear and concise language, (1) the amount in controversy, (2) the issues involved, (3) the name and address of the applicant, and (4) a demand for relief. The hearing shall be conducted in accordance with the Administrative Procedure Act. Notice of the Tax Commissioner's decision shall be mailed to the applicant within seven days after the decision. The applicant may appeal the Tax Commissioner's decision to the Tax Equalization and Review Commission in accordance with section 77-5013 within thirty days after the decision.

Source:Laws 1979, LB 65, § 20;    Laws 1987, LB 376A, § 15;    Laws 2004, LB 973, § 45.    


Cross References

77-3521. Tax Commissioner; rules and regulations.

It shall be the duty of the Tax Commissioner to adopt and promulgate rules and regulations for the information and guidance of the county assessors and county boards of equalization, not inconsistent with sections 77-3501 to 77-3529, affecting the application, hearing, assessment, or equalization of property which is claimed to be entitled to the exemption granted by such sections.

Source:Laws 1979, LB 65, § 21;    Laws 1984, LB 809, § 12;    Laws 1989, LB 84, § 15;    Laws 1994, LB 902, § 40;    Laws 2014, LB1087, § 17.    


77-3522. Violations; penalty; disallowance of claim; when; revocation of exemption; procedure; appeal.

(1) Any person who makes any false or fraudulent claim for exemption or any false statement or false representation of a material fact in support of such claim or any person who knowingly assists another in the preparation of any such false or fraudulent claim or enters into any collusion with another by the execution of a fictitious deed or other instrument for the purpose of obtaining unlawful exemption under sections 77-3501 to 77-3529 shall be guilty of a Class II misdemeanor and shall be subject to a forfeiture of any such exemption for a period of two years from the date of conviction. Any person who shall make an oath or affirmation to any false or fraudulent application for homestead exemption knowing the same to be false or fraudulent shall be guilty of a Class I misdemeanor.

(2) In addition to the penalty provided in subsection (1) of this section, if any person (a) files a claim for exemption as provided in section 77-3506, 77-3507, or 77-3508 which is excessive due to misstatements by the owner filing such claim or (b) fails to notify the county assessor of a change in status of a veteran qualifying for a homestead exemption under subdivision (2)(a) of section 77-3506 which affected all or a portion of the exemption period, including a change in rating, the death of the veteran, or a transfer of property not covered by section 77-3514, the claim may be disallowed in full and, if the claim has been allowed, an amount equal to the amount of taxes lawfully due during the applicable exemption period but not paid by reason of such unlawful and improper allowance of homestead exemption shall be due and shall upon entry of the amount thereof on the books of the county treasurer be a lien on such property until paid and a penalty and interest on such total sum as provided by statute on delinquent ad valorem taxes shall be assessed. Any amount paid to satisfy a lien imposed pursuant to this subsection shall be paid to the county treasurer in the same manner that other property taxes are paid, and the county treasurer shall remit such amount to the State Treasurer for credit to the General Fund. Any penalty collected pursuant to this subsection shall be retained by the county in which such penalty is assessed.

(3) For any veteran claiming a homestead exemption under subdivision (2)(a) of section 77-3506, the county assessor may revoke such exemption back to the date on which the county assessor has reason to believe that the exemption was improper upon notice to the veteran of the revocation. The veteran may then provide evidence in favor of receiving the exemption to the county assessor, and the county assessor may revise any revocation based on such evidence. Any decision of the county assessor to revoke a homestead exemption under this subsection may be appealed to the county board of equalization within thirty days after the decision. The county board of equalization may reverse or modify the revocation if there is clear and convincing evidence that the veteran qualified for the exemption for a particular period of time.

(4) Any additional taxes or penalties imposed pursuant to this section may be appealed in the same manner as appeals are made under section 77-3519.

Source:Laws 1979, LB 65, § 22;    Laws 1984, LB 809, § 13;    Laws 1986, LB 1258, § 9;    Laws 1989, LB 84, § 16;    Laws 1994, LB 902, § 41;    Laws 2014, LB1087, § 18;    Laws 2018, LB1089, § 20;    Laws 2023, LB727, § 87.    
Operative Date: January 1, 2024


77-3523. Homestead; exemption; county treasurer and county assessor; certify tax revenue lost within county; reimbursed; manner; distribution.

The county treasurer and county assessor shall, on or before November 30 of each year, certify to the Tax Commissioner the total tax revenue that will be lost to all taxing agencies within the county from taxes levied and assessed in that year because of exemptions allowed under sections 77-3501 to 77-3529. The county treasurer and county assessor may amend the certification to show any change or correction in the total tax that will be lost until May 30 of the next succeeding year. If a homestead exemption is approved, denied, or corrected by the Tax Commissioner under subsection (2) of section 77-3517 after May 1 of the next year, the county treasurer and county assessor shall prepare and submit amended reports to the Tax Commissioner and the political subdivisions covering any affected year and shall adjust the reimbursement to the county and the other political subdivisions by adjusting the reimbursement due under this section in later years. The Tax Commissioner shall, on or before January 1 next following such certification or within thirty days of any amendment to the certification, notify the Director of Administrative Services of the amount so certified to be reimbursed by the state. Reimbursement of the funds lost shall be made to each county according to the certification and shall be distributed in six as nearly as possible equal monthly payments on the last business day of each month beginning in January. The Director of Administrative Services shall, on the last business day of each month, issue payments by electronic funds transfer. Out of the amount so received the county treasurer shall distribute to each of the taxing agencies within his or her county the full amount so lost by such agency, except that one percent of such amount shall be deposited in the county general fund and that the amount due a Class V school district shall be paid to the district and the county shall be compensated one percent of such amount. Each taxing agency shall, in preparing its annual or biennial budget, take into account the amount to be received under this section.

Source:Laws 1979, LB 65, § 23;    Laws 1983, LB 494, § 7;    Laws 1986, LB 1258, § 10;    Laws 1987, LB 376A, § 16;    Laws 1994, LB 902, § 42;    Laws 1995, LB 499, § 3;    Laws 1996, LB 1040, § 5;    Laws 1997, LB 397, § 32;    Laws 2000, LB 1116, § 17;    Laws 2009, LB166, § 18;    Laws 2014, LB1087, § 19;    Laws 2018, LB1089, § 21;    Laws 2021, LB509, § 13;    Laws 2022, LB800, § 344.    


77-3524. Homestead; exemption; categories; Department of Revenue; maintain statistics.

The Department of Revenue shall maintain statistics to demonstrate the number of claimants and the amount of relief granted for the categories of homestead exemption.

Source:Laws 1979, LB 65, § 24;    Laws 1981, LB 545, § 26; Laws 1983, LB 396, § 6;    Laws 1984, LB 956, § 2;    Laws 1996, LB 1039, § 10.    


77-3525. Repealed. Laws 1987, LB 376A, § 21.

77-3526. Paraplegic, multiple amputee; terms, defined.

As used in sections 77-3526 to 77-3528:

(1) Paraplegic shall mean a veteran who is paralyzed in both legs such as to preclude locomotion without the aid of braces, crutches, canes, or wheelchair;

(2) Multiple amputee shall mean a veteran who has undergone amputation of (a) either both lower extremities or one lower extremity and one upper extremity, such as to preclude locomotion without the aid of braces, crutches, canes, wheelchair, or artificial limbs, or (b) both upper extremities;

(3) Home shall mean one housing unit and necessary land therefor not to exceed one acre occupied by the veteran or his or her unmarried surviving spouse when the veteran or surviving spouse is the owner of record from January 1 through August 15 in each year; and

(4) Substantially contributed by the United States Department of Veterans Affairs shall mean any amount received by a veteran from the department under Public Law 85-857 adopted September 2, 1958, as amended and in effect on January 1, 1979.

Source:Laws 1979, LB 65, § 26;    Laws 1987, LB 376A, § 17;    Laws 1991, LB 2, § 19;    Laws 2004, LB 986, § 1.    


77-3527. Property taxable; paraplegic veteran; multiple amputee; exempt; value; transfer of property; effect.

The value of a home substantially contributed by the United States Department of Veterans Affairs for a paraplegic veteran or multiple amputee shall be exempt from taxation during the life of such veteran or until the death of his or her surviving spouse or his or her remarriage. If such veteran or his or her unmarried surviving spouse disposes of such home and within one year uses the proceeds therefrom or part of such proceeds to acquire another home for occupancy by such veteran or his or her surviving spouse, such home shall be deemed to be one substantially contributed to by the department and the exemption provided for in this section shall apply to such substituted home during the life of such veteran or until the death of his or her surviving spouse or his or her remarriage. Application for exemption under this section shall include certification from the department affirming that the department has substantially contributed to the purchase, construction, remodeling, or special adaptation of a home by the applicant.

Source:Laws 1979, LB 65, § 27;    Laws 1983, LB 195, § 9;    Laws 1991, LB 2, § 20;    Laws 2004, LB 986, § 2.    


77-3528. Property taxable; paraplegic; multiple amputee; claim exemption.

Any veteran claiming the exemption as provided by section 77-3527 shall make application to the county assessor upon forms prescribed and furnished by the Tax Commissioner. Such application shall be made on or before June 30 of each year. Exemptions claimed before June 30 shall apply for the year such exemption is claimed.

Source:Laws 1979, LB 65, § 28;    Laws 1995, LB 133, § 6;    Laws 1996, LB 1039, § 11;    Laws 1997, LB 397, § 33.    


77-3529. Homestead; exemption; application; denied; other exemption allowed.

If any application for exemption pursuant to sections 77-3501 to 77-3529 is denied and the applicant would be qualified for any other exemption under such sections, then such denied application shall be treated as an application for the highest exemption for which qualified. Any additional documentation necessary for such other exemption shall be submitted to the county assessor within a reasonable time after receipt of the notice of denial.

Source:Laws 1979, LB 65, § 29;    Laws 1983, LB 195, § 10;    Laws 1984, LB 809, § 14;    Laws 1987, LB 376A, § 18;    Laws 1989, LB 84, § 17;    Laws 1994, LB 902, § 43;    Laws 2014, LB1087, § 20.    


77-3530. Repealed. Laws 2004, LB 811, § 3.

77-3601. Act, how cited.

Sections 77-3601 to 77-3607 shall be known and may be cited as the School Readiness Tax Credit Act.

Source:Laws 2016, LB889, § 1.    


77-3602. Legislative findings.

The Legislature finds that the benefits of quality child care and early childhood education are indisputable and that a striking connection exists between children’s learning experiences well before kindergarten and their later school success.

Source:Laws 2016, LB889, § 2.    


77-3603. Terms, defined.

For purposes of the School Readiness Tax Credit Act:

(1) Child means an individual who is five years of age or less;

(2) Child care and education provider means a person who owns or operates an eligible program;

(3) Department means the Department of Revenue;

(4) Eligible program means an applicable child care and early childhood education program as defined in section 71-1954 that has applied to participate in the quality rating and improvement system developed under the Step Up to Quality Child Care Act and has been assigned a quality scale rating;

(5) Eligible staff member means an individual who is employed with, or who is a self-employed individual providing child care and early childhood education for, an eligible program for at least six months of the taxable year and who is listed in the Nebraska Early Childhood Professional Record System and classified as provided in subsection (4) of section 71-1962. Eligible staff member does not include certificated teaching and administrative staff employed by programs established pursuant to section 79-1104; and

(6) Quality scale rating means the rating of an eligible program under the Step Up to Quality Child Care Act which is expressed in terms of steps, with step one being the lowest rating and step five being the highest rating.

Source:Laws 2016, LB889, § 3;    Laws 2020, LB266, § 2.    


Cross References

77-3604. Child care and education provider; income tax credit; application; contents; approval; distribution.

(1) A child care and education provider whose eligible program provides services to children who participate in the child care subsidy program established pursuant to section 68-1202 may apply to the department to receive a nonrefundable tax credit against the income tax imposed by the Nebraska Revenue Act of 1967.

(2) The nonrefundable credit provided in this section shall be an amount equal to the average monthly number of children described in subsection (1) of this section who are attending the child care and education provider's eligible program, multiplied by an amount based upon the quality scale rating of such eligible program as follows:

Quality Scale Rating of Eligible Program Tax Credit Per Child Attending
Eligible Program
Step Five $1,200
Step Four $1,000
Step Three $800
Step Two $600
Step One $400

(3) A child care and education provider shall apply for the credit provided in this section by submitting an application to the department with the following information:

(a) The number of children described in subsection (1) of this section who attended the child care and education provider's eligible program during each month of the most recently completed taxable year;

(b) Documentation to show the quality scale rating of the child care and education provider's eligible program; and

(c) Any other documentation required by the department.

(4) Subject to subsection (5) of this section, if the department determines that the child care and education provider qualifies for tax credits under this section, it shall approve the application and certify the amount of credits approved to the child care and education provider.

(5) The department shall consider applications in the order in which they are received and may approve tax credits under this section in any taxable year until the aggregate limit allowed under subsection (1) of section 77-3606 has been reached.

(6) If the child care and education provider is (a) a partnership, (b) a limited liability company, (c) a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, or (d) an estate or trust, the tax credit provided in this section may be distributed in the same manner and proportion as the partner, member, shareholder, or beneficiary reports the partnership, limited liability company, subchapter S corporation, estate, or trust income.

(7) The credit provided in this section shall be available for taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended.

Source:Laws 2016, LB889, § 4;    Laws 2020, LB266, § 3;    Laws 2023, LB754, § 17.    
Effective Date: June 1, 2023


Cross References

77-3605. Eligible staff member; income tax credit; application; contents; approval.

(1) An eligible staff member may apply to the department to receive a refundable tax credit against the income tax imposed by the Nebraska Revenue Act of 1967. The amount of the credit shall be based on the eligible staff member's classification under subsection (4) of section 71-1962 as follows:

Eligible Staff Member's Classification Tax Credit
Level Five $3,500
Level Four $3,200
Level Three $2,900
Level Two $2,600
Level One $2,300

(2) An eligible staff member shall apply for the credit provided in this section by submitting an application to the department with the following information:

(a) The eligible staff member's name and place of employment;

(b) An attestation form provided by the Nebraska Early Childhood Professional Record System verifying the level at which the eligible staff member is classified under subsection (4) of section 71-1962; and

(c) Any other documentation required by the department.

(3) Subject to subsection (4) of this section, if the department determines that the eligible staff member qualifies for tax credits under this section, it shall approve the application and certify the amount of credits approved to the eligible staff member.

(4) The department shall consider applications in the order in which they are received and may approve tax credits under this section in any taxable year until the aggregate limit allowed under subsection (1) of section 77-3606 has been reached.

(5) The credit provided in this section shall be available for taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended.

(6) For taxable years beginning or deemed to begin on or after January 1, 2025, under the Internal Revenue Code of 1986, as amended, the Tax Commissioner shall adjust the credit amounts provided for in subsection (1) of this section by the percentage change in the Consumer Price Index for All Urban Consumers, as prepared by the United States Department of Labor, Bureau of Labor Statistics, for the twelve-month period ending on August 31 of the year preceding the taxable year.

Source:Laws 2016, LB889, § 5;    Laws 2023, LB754, § 18.    
Effective Date: June 1, 2023


Cross References

77-3606. Department; limit on credits; claiming credit; procedure; fraud or misrepresentation; disallowance of credit.

(1) The department may approve tax credits under the School Readiness Tax Credit Act each taxable year until the total amount of credits approved for the taxable year reaches seven million five hundred thousand dollars.

(2) A child care and education provider shall claim any tax credits granted under the act by attaching the tax credit certification received from the department under section 77-3604 to the child care and education provider's tax return. An eligible staff member shall claim any tax credits granted under the act by attaching the tax credit certification received from the department under section 77-3605 to the eligible staff member's tax return.

(3) If the department finds that a person has obtained a credit by fraud or misrepresentation, the credits shall be disallowed and the taxpayer's state income tax for such taxable year shall be increased by the amount necessary to recapture the credit.

(4) Credits granted to a taxpayer, but later disallowed, may be recovered by the department within three years from the end of the year in which the credit was claimed.

Source:Laws 2016, LB889, § 6;    Laws 2023, LB754, § 19.    
Effective Date: June 1, 2023


77-3607. Rules and regulations.

The department may adopt and promulgate rules and regulations to carry out the School Readiness Tax Credit Act.

Source:Laws 2016, LB889, § 7.    


77-3701. Mobile home, defined.

For purposes of sections 77-3701 to 77-3708, unless the context otherwise requires, mobile home shall mean every portable or relocatable device of any description, without motive power, and designed for living quarters, whether or not permanently attached to the land, but shall not include a cabin trailer registered for operation upon the highways of this state.

Source:Laws 1981, LB 168, § 1;    Laws 1992, LB 1063, § 195; Laws 1992, Second Spec. Sess., LB 1, § 166.    


77-3702. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-3703. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-3704. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-3705. Repealed. Laws 1992, LB 1063, § 212; Laws 1992, Second Spec. Sess., LB 1, § 180.

77-3706. Owner, lessee, or manager of land; report mobile homes; form; contents of report; failure to report; penalty.

The owner, lessee, or manager of land upon which is parked or located a mobile home, shall report by January 15 of each year to the county assessor, upon forms sent by the county assessor, in the county in which such land is located all mobile homes located thereon as of January 1 of each year, the year, make, model, and size of each mobile home, the name, post office address of the owner or occupant thereof, and the date the mobile home was first parked or located on such land. Failure to make any report required by this section shall result in cancellation of the permit issued and forfeiture of the fee paid pursuant to section 77-3707.

Source:Laws 1959, c. 303, § 8, p. 1134; R.R.S.1943, § 60-1608; Laws 1969, c. 519, § 1, p. 2131; Laws 1969, c. 516, § 13, p. 2126; R.S.1943, (1978), § 60-1609; Laws 1981, LB 168, § 7.    


77-3707. Owner, lessee, or manager of land; permit; fee; disbursement; annual renewal.

Every owner, lessee, or manager of land upon which are located or to be located two or more mobile homes shall obtain a permit therefor from the county treasurer upon payment of an annual fee of five dollars which shall be deposited in the county general fund. Such annual permit shall be renewed during January of each year. Application for such permit shall be made on forms prescribed and furnished by the Tax Commissioner. If the applicant is an individual, the application for a permit shall include the applicant's social security number.

Source:Laws 1969, c. 516, § 14, p. 2126; Laws 1977, LB 396, § 1;    R.S.1943, (1978), § 60-1609.01; Laws 1981, LB 168, § 8;    Laws 1997, LB 752, § 215.    


77-3708. Mobile home; movement on road or highway; permit; conditions.

A mobile home may not be moved upon any road or highway in the state without first obtaining a movement permit as required by law for the movement of any oversize vehicle. No movement permit shall be issued by any governmental agency charged with issuance thereof unless a tax certificate issued by the county treasurer showing payment of all taxes due or to become due because of the location of such mobile home in such county on assessment day is displayed by the owner. A tax certificate shall not be required if the movement contemplated is between a manufacturer and a licensed dealer or between two licensed dealers or between a licensed dealer's place of business or storage area and a bona fide customer to whom title to the mobile home has passed or does pass within a reasonable time after movement. For the purposes of this section, taxes and fees shall include those of all governmental subdivisions. Nothing in this section shall alter or amend any other existing regulations, rules, or statutes governing the movement of mobile homes.

Source:Laws 1969, c. 516, § 16, p. 2126; R.S.1943, (1978), § 60-1611; Laws 1981, LB 168, § 9.    


77-3709. Violations; penalty.

Any person violating any of the provisions of section 77-3706, 77-3707, or 77-3708 shall be guilty of a Class IV misdemeanor.

Source:Laws 1959, c. 303, § 10, p. 1134; R.R.S.1943, § 60-1610; Laws 1969, c. 516, § 17, p. 2128; Laws 1977, LB 39, § 97;    R.S.1943, (1978), § 60-1612; Laws 1981, LB 168, § 10.    


77-3710. Sections, how construed.

Nothing in sections 77-3706, 77-3707, and 77-3708 shall be construed as altering or affecting in any manner, any zoning, planning, building or land-use, laws, ordinances, rules, or regulations.

Source:Laws 1969, c. 516, § 18, p. 2128; R.S.1943, (1978), § 60-1613; Laws 1981, LB 168, § 11.    


77-3801. Terms, defined.

For purposes of sections 77-3801 to 77-3807, unless the context otherwise requires:

(1) All terms shall have the same meaning as provided in the Nebraska Revenue Act of 1967;

(2) Average deposits shall mean (a) for a financial institution on a calendar year, the total of the deposits held on the last day of the preceding year and the last day of each calendar quarter, divided by five or (b) for a financial institution on a fiscal year other than a calendar year, the total of the deposits held on the last day of the preceding fiscal year, the last day of each calendar quarter within the fiscal year, and the last day of the fiscal year, divided by the number of amounts added together;

(3) Deposits shall mean the amount of money placed in the custody of a financial institution for safety or convenience that may be withdrawn at the will of the depositor or under the rules or regulations agreed upon by the financial institution and the depositor. Deposits shall also include amounts for which a certificate may be issued and which are payable on demand, on certain notice, or at a fixed future date or time. Deposits shall not include any money placed in a fiduciary capacity in the custody of a trust department of any financial institution having trust powers granted by appropriate regulatory authority which is not placed by the trust department as a deposit in such financial institution;

(4) Financial institution shall mean:

(a) Any bank, building and loan association, credit union, savings and loan association, or savings bank chartered or qualified to do business in this state, or any subsidiary of such financial institution; or

(b) Any bank, bank holding company or subsidiary of a bank holding company as defined in 12 U.S.C. 1841, as such section existed on July 20, 2002, affiliate of a bank holding company as defined in 12 U.S.C. 221a, as such section existed on July 20, 2002, building and loan association, credit union, industrial loan and investment company, savings and loan association, or savings bank which is not chartered to do business in this state but maintains a permanent place of business in this state and actively solicits deposits from residents of this state for an affiliate, regardless of whether the affiliate maintains an office in this state, in which event the deposits of the affiliate shall be deemed deposits of such institution;

(5) Net financial income shall mean the income of the financial institution, including its subsidiaries, after ordinary and necessary expenses but before income taxes and extraordinary gains or losses. Net financial income shall include, but not be limited to, income from fiduciary activities, interest, rent, or service charges. Ordinary and necessary expenses shall include, but not be limited to, fees, depreciation on furniture and equipment, interest, salaries and benefits, and supplies. Income and expenses shall be computed according to the regular books and records of the institution; and

(6) Subsidiary shall not include any bank, bank holding company, or savings and loan association which is owned fifty percent or more by a mutual savings and loan association and which does not actively solicit deposits from residents of this state.

Source:Laws 1986, LB 774, § 1;    Laws 1995, LB 26, § 1;    Laws 2002, LB 1094, § 17;    Laws 2003, LB 131, § 38.    


Cross References

77-3802. Franchise tax imposed.

(1) There is hereby imposed for each taxable year for the privilege of doing business in this state a franchise tax on all financial institutions with business locations in this state. Such franchise tax shall be based on the average deposits of the financial institution.

(2) The amount of the tax imposed by this section shall be the number of cents, as determined by section 77-3803, multiplied by the amount of average deposits of the financial institution in thousands of dollars.

(3) The franchise tax imposed by this section shall not exceed the limitation amount prescribed in section 77-3804.

(4) Each financial institution shall file a separate franchise tax return.

Source:Laws 1986, LB 774, § 2.    


77-3803. Franchise tax; rate.

The rate of tax on deposits shall be twelve and three-tenths times the limitation rate as determined in section 77-3804, expressed in cents and rounded to the nearest cent.

Source:Laws 1986, LB 774, § 3.    


77-3804. Franchise tax; limitation rate; limitation amount.

(1) The limitation rate shall be forty-eight and eight-tenths percent of the maximum corporate income tax rate in effect for the taxable year, as prescribed in section 77-2734.02, rounded to the nearest hundredth of one percent.

(2) The limitation amount shall be the product of the net financial income of the financial institution multiplied by the limitation rate.

Source:Laws 1986, LB 774, § 4.    


77-3805. Franchise tax; multistate financial institution; computation.

If a financial institution is subject to tax in more than one state:

(1) The tax imposed in section 77-3802 shall be based on the amount of average deposits connected with the financial institution's operations in this state. Such deposits shall be (a) deposits which are accepted at the financial institution's offices located in this state plus (b) deposits which are solicited from residents in this state even if accepted at an office of the financial institution outside of this state; and

(2) The limitation on the tax prescribed in subdivision (2) of section 77-3804 shall be computed using the portion of the net financial income of the financial institution that is apportioned to this state through the use of the property and payroll factors contained in sections 77-2734.12 and 77-2734.13.

Source:Laws 1986, LB 774, § 5.    


77-3806. Franchise tax; filing requirements; general provisions applicable; refunds; credit.

(1) The tax return shall be filed and the total amount of the franchise tax shall be due on the fifteenth day of the third month after the end of the taxable year. No extension of time to pay the tax shall be granted. If the Tax Commissioner determines that the amount of tax can be computed from available information filed by the financial institutions with either state or federal regulatory agencies, the Tax Commissioner may, by regulation, waive the requirement for the financial institutions to file returns.

(2) Sections 77-2714 to 77-27,135 relating to deficiencies, penalties, interest, the collection of delinquent amounts, and appeal procedures for the tax imposed by section 77-2734.02 shall also apply to the tax imposed by section 77-3802. If the filing of a return is waived by the Tax Commissioner, the payment of the tax shall be considered the filing of a return for purposes of sections 77-2714 to 77-27,135.

(3) No refund of the tax imposed by section 77-3802 shall be allowed unless a claim for such refund is filed within ninety days of the date on which (a) the tax is due or was paid, whichever is later, (b) a change is made to the amount of deposits or the net financial income of the financial institution by a state or federal regulatory agency, or (c) the Nebraska Investment Finance Authority issues an eligibility statement to the financial institution pursuant to the Affordable Housing Tax Credit Act.

(4) Any such financial institution shall receive a credit on the franchise tax as provided under the Affordable Housing Tax Credit Act, the Community Development Assistance Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Job Creation and Mainstreet Revitalization Act, the Nebraska Property Tax Incentive Act, and the New Markets Job Growth Investment Act.

Source:Laws 1986, LB 774, § 6;    Laws 1990, LB 1241, § 16;    Laws 2001, LB 433, § 7;    Laws 2007, LB367, § 25;    Laws 2012, LB1128, § 25;    Laws 2014, LB191, § 21;    Laws 2016, LB884, § 22;    Laws 2020, LB1107, § 135;    Laws 2022, LB1261, § 15.    


Cross References

77-3807. Tax Commissioner; powers and duties.

(1) The Tax Commissioner shall prescribe the necessary forms and the supporting documentation to be filed for the reporting and payment of the tax imposed by section 77-3802 and for the calculation of credits allowable under subsection (5) of section 77-2715.07.

(2) The Tax Commissioner shall adopt and promulgate rules and regulations to carry out sections 77-3801 to 77-3807.

(3) The Tax Commissioner may use electronic funds transfers to collect the tax imposed by section 77-3802 or to pay any refunds allowed under section 77-3806. The use of electronic funds transfers shall not change the rights of any party from the rights such party would have if a different method of payment is used.

Source:Laws 1986, LB 774, § 7;    Laws 2007, LB456, § 3.    


77-3901. Act, how cited.

Sections 77-3901 to 77-3908 shall be known and may be cited as the Uniform State Tax Lien Registration and Enforcement Act.

Source:Laws 1986, LB 1027, § 214;    Laws 1993, LB 345, § 74;    Laws 2004, LB 811, § 1.    


77-3902. Terms, defined.

For purposes of the Uniform State Tax Lien Registration and Enforcement Act:

(1) Appropriate filing officer means (a) with respect to real property subject to a tax lien, the register of deeds of the county or counties in which the real property is situated and (b) with respect to personal property subject to a tax lien, the Secretary of State; and

(2) Any reference to tax, taxes, fee, or tax program shall be construed to include any tax, fee, or in-lieu-of-tax contribution which is imposed by the laws of this state and administered or collected and enforced by the Tax Commissioner or Commissioner of Labor, unless a tax lien is otherwise provided for by law.

Source:Laws 1986, LB 1027, § 215;    Laws 1987, LB 523, § 31;    Laws 1995, LB 490, § 178;    Laws 1998, LB 1321, § 99;    Laws 1999, LB 165, § 3;    Laws 1999, LB 550, § 45;    Laws 2007, LB334, § 88.    


77-3903. Notice of lien; filing; requirements; fee; billing.

(1)(a) A notice of lien provided for in the Uniform State Tax Lien Registration and Enforcement Act upon real property shall be presented in the office of the Secretary of State. Such notice of lien shall be transmitted by the Secretary of State to and filed in the office of the register of deeds by the register of deeds of the county or counties in which the real property subject to the lien is situated as designated in the notice of lien. The register of deeds shall enter the notice in the alphabetical state tax lien index, showing on one line the name and residence of the person liable named in such notice, the last four digits of the social security number or the federal tax identification number of such person, the Tax Commissioner's or Commissioner of Labor's serial number of such notice, the date and hour of filing, and the amount due. Such presentments to the Secretary of State may be made by direct input to the Secretary of State's database or by other electronic means. All such notices of lien shall be retained in numerical order in a file designated state tax lien notices, except that in offices filing by the roll form of microfilm pursuant to section 23-1517.01, the original notices need not be retained. A lien subject to this subsection shall be effective upon real property when filed by the register of deeds as provided in this subsection.

(b) A notice of lien provided for in the Uniform State Tax Lien Registration and Enforcement Act upon personal property shall be filed in the office of the Secretary of State. The Secretary of State shall enter the notice in the state's central tax lien index, showing on one line the name and residence of the person liable named in such notice, the last four digits of the social security number or the federal tax identification number of such person, the Tax Commissioner's or Commissioner of Labor's serial number of such notice, the date and hour of filing, and the amount due. Such filings with the Secretary of State may be filed by direct input to the Secretary of State's database or by other electronic means. All such notices of lien shall be retained in numerical order in a file designated state tax lien notices.

(2) The uniform fee, payable to the Secretary of State, for presenting for filing, releasing, continuing, or subordinating or for filing, releasing, continuing, or subordinating each tax lien pursuant to the Uniform State Tax Lien Registration and Enforcement Act shall be two times the fee required for recording instruments with the register of deeds as provided in section 33-109. There shall be no fee for the filing of a termination statement. The uniform fee for each county more than one designated pursuant to subdivision (1)(a) of this section shall be the fee required for recording instruments with the register of deeds as provided in section 33-109. The Secretary of State shall remit each fee received pursuant to this subsection to the State Treasurer for credit to the Secretary of State Cash Fund, except that of the fees received pursuant to this subsection, the Secretary of State shall remit the fee required for recording instruments with the register of deeds as provided in section 33-109 to the register of deeds of a county for each designation of such county in a filing pursuant to subdivision (1)(a) of this section.

(3) The Secretary of State shall bill the Tax Commissioner or Commissioner of Labor on a monthly basis for fees for documents presented to or filed with the Secretary of State. No payment of any fee shall be required at the time of presenting or filing any such lien document.

Source:Laws 1986, LB 1027, § 216;    Laws 1987, LB 523, § 32;    Laws 1995, LB 490, § 179;    Laws 1998, LB 1321, § 100;    Laws 1999, LB 165, § 4;    Laws 1999, LB 550, § 46;    Laws 2007, LB223, § 23;    Laws 2007, LB334, § 89;    Laws 2012, LB14, § 7;    Laws 2017, LB152, § 4;    Laws 2017, LB268, § 17;    Laws 2020, LB910, § 32.    


77-3904. Failure to pay tax or fee; lien; procedures; priority; extension; termination; release or subordination.

(1) If any person liable to pay any tax or fee under any tax program administered by the Tax Commissioner or Commissioner of Labor neglects or refuses to pay such tax or fee after demand, the amount of such tax or fee, including any interest, penalty, and additions to such tax and such additional costs that may accrue, shall be a lien in favor of the State of Nebraska upon all property and rights to property, whether real or personal, then owned by such person or acquired by him or her thereafter and prior to the expiration of the lien. Unless another date is specifically provided by law, such lien shall arise at the time of the assessment and shall remain in effect (a) for three years from the time of the assessment or one year after the expiration of an agreement between the Tax Commissioner and a taxpayer for payment of tax which is due, whichever is later, if the notice of lien is not filed for record in the office of the appropriate filing officer, (b) for ten years from the time of filing for record in the office of the appropriate filing officer, or (c) until such amounts have been paid or a judgment against such person arising out of such liability has been satisfied or has become unenforceable by reason of lapse of time, unless a continuation statement is filed prior to the lapse.

(2)(a) The Tax Commissioner or Commissioner of Labor may present for filing or file for record in the office of the appropriate filing officer a notice of lien specifying the year the tax was due, the tax program, and the amount of the tax and any interest, penalty, or addition to such tax that are due. Such notice shall be filed for record in the office of the appropriate filing officer within three years after the time of assessment or within one year after the expiration of an agreement between the Tax Commissioner and a taxpayer for payment of tax which is due, whichever is later. Such notice shall contain the name and last-known address of the taxpayer, the last four digits of the taxpayer's social security number or federal identification number, the Tax Commissioner's or Commissioner of Labor's serial number, and a statement to the effect that the Tax Commissioner or Commissioner of Labor has complied with all provisions of the law for the particular tax program which he or she administers in the determination of the amount of the tax and any interest, penalty, and addition to such tax required to be paid.

(b) If the assets of the taxpayer are in the control or custody of the court in any proceeding before any court of the United States or of any state or the District of Columbia, before the end of the time period in subdivision (2)(a) of this section, the notice shall be filed for record within the time period or within six months after the assets are released by the court, whichever is later.

(3)(a)(i) A lien imposed upon real property pursuant to the Uniform State Tax Lien Registration and Enforcement Act shall be valid against any subsequent creditor when notice of such lien and the amount due has been presented for filing by the Tax Commissioner or Commissioner of Labor in the office of the Secretary of State and filed in the office of the register of deeds.

(ii) A lien imposed upon personal property pursuant to the Uniform State Tax Lien Registration and Enforcement Act shall be valid against any subsequent creditor when notice of such lien and the amount due has been filed by the Tax Commissioner or Commissioner of Labor in the office of the Secretary of State.

(b) In the case of any prior mortgage on real property or secured transaction covering personal property so written as to secure a present debt and future advances, the lien provided in the act, when notice thereof has been filed in the office of the appropriate filing officer, shall be subject to such prior lien unless the Tax Commissioner or Commissioner of Labor has notified the lienholder in writing of the recording of such tax lien, in which case the lien of any indebtedness thereafter created under such mortgage or secured transaction shall be junior to the lien provided for in the act.

(4) The lien may, within ten years from the date of filing for record of the notice of lien in the office of the appropriate filing officer, be extended by filing for record a continuation statement. Upon timely filing of the continuation statement, the effectiveness of the original notice shall be continued for ten years after the last date to which the filing was effective. After such period the notice shall lapse in the manner prescribed in subsection (1) of this section unless another continuation statement is filed prior to such lapse.

(5) When a termination statement of any tax lien issued by the Tax Commissioner or Commissioner of Labor is filed in the office where the notice of lien is filed, the appropriate filing officer shall enter such statement with the date of filing in the state tax lien index where notice of the lien so terminated is entered and shall file the termination statement with the notice of the lien.

(6) The Tax Commissioner or Commissioner of Labor may at any time, upon request of any party involved, release from a lien all or any portion of the property subject to any lien provided for in the Uniform State Tax Lien Registration and Enforcement Act or subordinate a lien to other liens and encumbrances if he or she determines that (a) the tax amount and any interest, penalties, and additions to such tax have been paid or secured sufficiently by a lien on other property, (b) the lien has become legally unenforceable, (c) a surety bond or other satisfactory security has been posted, deposited, or pledged with the Tax Commissioner or Commissioner of Labor in an amount sufficient to secure the payment of such taxes and any interest, penalties, and additions to such taxes, or (d) the release, partial release, or subordination of the lien will not jeopardize the collection of such taxes and any interest, penalties, and additions to such tax.

(7) A certificate by the Tax Commissioner or Commissioner of Labor stating that any property has been released from the lien or the lien has been subordinated to other liens and encumbrances shall be conclusive evidence that the property has in fact been released or the lien has been subordinated pursuant to the certificate.

Source:Laws 1986, LB 1027, § 217;    Laws 1987, LB 523, § 33;    Laws 1993, LB 345, § 75;    Laws 1995, LB 490, § 180;    Laws 1999, LB 165, § 5;    Laws 1999, LB 550, § 47;    Laws 2007, LB223, § 24;    Laws 2007, LB334, § 90;    Laws 2014, LB33, § 2.    


77-3905. Action to collect delinquent amount; procedures; evidence; satisfaction of amount; trust fund; when constituted.

(1) Except as provided in section 77-3904, at any time within three years after any amount of tax to be collected under any tax program administered by the Tax Commissioner or Commissioner of Labor is assessed or within ten years after the last filing for record as set forth in the Uniform State Tax Lien Registration and Enforcement Act, the Tax Commissioner or Commissioner of Labor may bring an action in the courts of this state, any other state, or the United States in the name of the people of the State of Nebraska to collect the delinquent amount together with penalties, any additions to such tax, costs, and interest.

(2)(a) The Attorney General shall prosecute the action on behalf of the Tax Commissioner, (b) the Commissioner of Labor shall be represented in an action under the act as provided in section 48-667, and (c) the rules of civil procedure relating to service of summons, pleadings, proofs, trials, and appeals shall be applicable to the proceedings.

(3) In the action, a writ of attachment may issue, and no bond or affidavit previous to the issuing of the attachment shall be required.

(4) In the action, a certificate by the Tax Commissioner or Commissioner of Labor showing the delinquency shall be prima facie evidence of the determination of such tax or the amount of such tax, the delinquency of the amounts set forth, and the compliance by the Tax Commissioner or Commissioner of Labor with all provisions of the applicable tax program which he or she administers in relation to the computation and determination of the amounts set forth.

(5) The tax amounts required to be paid by any person under any tax program administered by the Tax Commissioner or Commissioner of Labor together with any interest, penalties, and additions to such tax shall be satisfied first in any of the following cases: When the person is insolvent; when the person makes a voluntary assignment of his or her assets; when the estate of the person in the hands of executors, personal representatives, administrators, or heirs is insufficient to pay all the debts due from the deceased; or when the estate and effects of an absconding, concealed, or absent person required to pay any amount under any tax program administered by the Tax Commissioner or Commissioner of Labor are levied upon by process of law.

(6) Any tax which by law must be deducted and withheld by an employer or payor or is collected by a retailer or any other designated person as agent for the State of Nebraska on any transaction governed by a tax program administered by the Tax Commissioner or Commissioner of Labor shall constitute a trust fund in the hands of the employer, payor, or retailer or such other designated person and shall be owned by the state as of the time the tax is deducted and withheld or is owing to the employer, payor, or retailer or such other designated person.

Source:Laws 1986, LB 1027, § 218;    Laws 1987, LB 523, § 34;    Laws 1993, LB 345, § 76;    Laws 1995, LB 490, § 181;    Laws 1999, LB 165, § 6;    Laws 2007, LB334, § 91;    Laws 2014, LB33, § 3.    


77-3906. Distraint and sale of taxpayer's property; procedures; conditions; powers and duties.

(1) In addition to all other remedies or actions provided by law under any tax program administered by the Tax Commissioner or Commissioner of Labor, it shall be lawful for the Tax Commissioner or Commissioner of Labor, after making demand for payment, to collect any delinquent taxes, together with any interest, penalties, and additions to such tax by distraint and sale of the real and personal property of the taxpayer. If the Tax Commissioner finds that the collection of any tax is in jeopardy pursuant to section 77-2710, 77-27,111, or 77-4311, notice and demand for immediate payment of such tax may be made by the Tax Commissioner and, upon failure or refusal to pay such tax, collection by levy shall be lawful.

(2)(a) In case of failure to pay taxes or deficiencies, the Tax Commissioner, or his or her authorized employee, may levy or, by warrant issued under his or her own hand, authorize a sheriff or duly authorized employee of the Tax Commissioner to levy upon, seize, and sell such real and personal property belonging to the taxpayer, except exempt property, as is necessary to satisfy the liability for the payment of the amount due. The Tax Commissioner may also issue a levy to a financial institution pursuant to section 77-3910.

(b) In case of failure to pay taxes or deficiencies, the Commissioner of Labor, or his or her authorized employee, may levy or, by warrant issued under his or her own hand, authorize a sheriff or duly authorized employee of the Department of Labor to levy upon, seize, and sell such real and personal property belonging to the taxpayer, except exempt property, as is necessary to satisfy the liability for the payment of the amount due.

(c) As used in this section, exempt property shall mean such property as is exempt from execution under the laws of this state.

(3) When a warrant is issued or a levy is made by the Tax Commissioner or Commissioner of Labor, or his or her duly authorized employee, for the collection of any tax and any interest, penalty, or addition to such tax imposed by law under any tax program administered by the Tax Commissioner or Commissioner of Labor or for the enforcement of any tax lien authorized by the Uniform State Tax Lien Registration and Enforcement Act, such warrant or levy shall have the same force and effect of a levy and sale pursuant to a writ of execution. Such warrant or levy may be issued and sale made pursuant to it in the same manner and with the same force and effect of a levy and sale pursuant to a writ of execution. The Tax Commissioner or Commissioner of Labor shall pay the financial institution in accordance with section 77-3910 or the levying sheriff the same fees, commissions, and expenses pursuant to such warrant as are provided by law for similar services pursuant to a writ of execution, except that fees for publications in a newspaper shall be subject to approval by the Tax Commissioner or Commissioner of Labor. Such fees, commissions, and expenses shall be an obligation of the taxpayer and may be collected from the taxpayer by virtue of the warrant. Any such warrant shall show the name and last-known address of the taxpayer, the identity of the tax program, the year for which such tax and any interest, penalty, or addition to such tax is due and the amount thereof, the fact that the Tax Commissioner or Commissioner of Labor has complied with all provisions of the law for the applicable tax program which he or she administers in the determination of the amount required to be paid, and that the tax and any interest, penalty, or addition to such tax is due and payable according to law.

(4)(a) Any person upon whom a levy is served who fails or refuses to honor the levy without cause may be held liable for the amount of the levy up to the value of the assets of the taxpayer under his or her control at the time the levy was served or thereafter. Such person may be subject to collection provisions as set forth in the act.

(b) The effect of a levy on salary, wages, or other regular payments due to or received by a taxpayer shall be continuous from the date the levy is served until the amount of the levy, with accrued interest, is satisfied.

(5) Notice of the sale and the time and place of the sale shall be given, to the delinquent taxpayer and to any other person with an interest in the property who has filed for record with the appropriate filing officer on such property, in writing at least twenty days prior to the date of such sale in the following manner: The notice shall be mailed to the taxpayer and to any other person with such interest at his or her last-known residence or place of business in this state. The notice shall also be given by publication at least once each week for four weeks prior to the date of the sale in the newspaper of general circulation published in the county in which the property seized is to be sold. If there is no newspaper of general circulation in the county, notice shall be posted in three public places in the county twenty days prior to the date of the sale. The notice shall contain a description of the property to be sold, a statement of the type of tax due and of the amount due, including interest, penalties, additions to tax, and costs, the name of the delinquent taxpayer, and the further statement that unless the amount due, including interest, penalties, additions to tax, and costs, is paid on or before the time fixed in the notice for the sale or such security as may be determined by the Tax Commissioner or Commissioner of Labor is placed with the Tax Commissioner or Commissioner of Labor, or his or her duly authorized representative, on or before such time, the property, or so much of it as may be necessary, will be sold in accordance with law and the notice.

(6) At the sale the Tax Commissioner or Commissioner of Labor, or his or her duly authorized representative, shall sell the property in accordance with law and the notice and shall deliver to the purchaser a bill of sale for the property. The bill of sale shall vest the interest or title of the person liable for the amount in the purchaser. The unsold portion of any property seized shall remain in the custody and control of the Tax Commissioner or Commissioner of Labor, or his or her duly authorized representative, until offered for sale again in accordance with this section or redeemed by the taxpayer.

(7) Whenever any property which is seized and sold under this section is not sufficient to satisfy the claim of the state for which distraint or seizure is made, the sheriff or duly authorized employee of the Tax Commissioner or Department of Labor may thereafter, and as often as the same may be necessary, proceed to seize and sell in like manner any other property liable to seizure of the taxpayer against whom such claim exists until the amount due from such taxpayer, together with all expenses, is fully paid.

(8) If after the sale the money received exceeds the total of all amounts due the state, including any interest, penalties, additions to tax, and costs, and if there is no other interest in or lien upon such money received, the Tax Commissioner or Commissioner of Labor shall return the excess to the person liable for the amounts and obtain a receipt. If any person having an interest or lien upon the property files with the Tax Commissioner or Commissioner of Labor prior to the sale notice of his or her interest or lien, the Tax Commissioner or Commissioner of Labor shall withhold any excess pending a determination of the rights of the respective parties thereto by a court of competent jurisdiction. If for any reason the receipt of the person liable for the amount is not available, the Tax Commissioner or Commissioner of Labor shall deposit the excess money with the State Treasurer, as trustee for the owner, subject to the order of the person liable for the amount or his or her heirs, successors, or assigns. No interest earned, if any, shall become the property of the person liable for the amount.

(9) All persons and officers of companies or corporations shall, on demand of a sheriff or duly authorized employee of the Tax Commissioner or Department of Labor about to distrain or having distrained any property or right to property, exhibit all books containing evidence or statements relating to the property or rights of property liable to distraint for the tax due.

Source:Laws 1986, LB 1027, § 219;    Laws 1990, LB 260, § 17;    Laws 1993, LB 345, § 77;    Laws 1995, LB 490, § 182;    Laws 1999, LB 36, § 33;    Laws 1999, LB 165, § 7;    Laws 2007, LB334, § 92;    Laws 2012, LB727, § 48;    Laws 2014, LB33, § 4.    


77-3907. Demand upon security; authorized; abatement; when.

(1) To enforce collection of any tax not paid when due, the Tax Commissioner or Commissioner of Labor may make demand upon any security which is provided for by law and which has been submitted to the Tax Commissioner or Commissioner of Labor on behalf of the person liable for the tax, together with any interest, penalties, additions to tax, and costs thereon. The security may, if necessary, be sold by the Tax Commissioner or Commissioner of Labor in the manner provided by section 77-27,131.

(2) The Tax Commissioner or Commissioner of Labor may abate the unpaid portion of the assessment of any tax, or other liability in respect thereof, if he or she determines that the administration and collection costs involved would not warrant collection of the amount due.

Source:Laws 1986, LB 1027, § 220;    Laws 1995, LB 490, § 183;    Laws 1999, LB 165, § 8;    Laws 2007, LB334, § 93.    


77-3908. Actions prohibited; construction of act.

(1) No injunction or writ of mandamus or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this state to enjoin the collection of any tax, fee, or any amount of tax required to be collected under any tax program administered by the Tax Commissioner or Commissioner of Labor.

(2) The methods of enforcement and collection provided in the Uniform State Tax Lien Registration and Enforcement Act, including distraint and sale, shall be fully independent so that pursuit of any one method shall not be conditioned upon pursuit of any other, nor shall pursuit of any one method in any way affect or limit the right of the Tax Commissioner or Commissioner of Labor to subsequently pursue any of the other methods of enforcement or collection.

Source:Laws 1986, LB 1027, § 221;    Laws 1995, LB 490, § 184;    Laws 1999, LB 165, § 9;    Laws 2007, LB334, § 94.    


77-3909. Repealed. Laws 2004, LB 811, § 3.

77-3910. Tax Commissioner; agreement with financial institution authorized; report.

The Tax Commissioner may enter into an agreement with one or more financial institutions in this state to levy upon personal property belonging to a taxpayer in accordance with the Uniform State Tax Lien Registration and Enforcement Act and in any medium and format to which the Tax Commissioner and the financial institution have agreed. The Tax Commissioner shall issue a report to the Revenue Committee of the Legislature, the Clerk of the Legislature, and the Governor by November 1, 2015, containing the Tax Commissioner's preliminary findings regarding implementation of this section and recommendations for any needed changes. The report submitted to the committee and to the Clerk of the Legislature shall be submitted electronically.

Source:Laws 2014, LB33, § 1.    


Cross References

77-4001. Act, how cited.

Sections 77-4001 to 77-4025 shall be known and may be cited as the Tobacco Products Tax Act.

Source:Laws 1987, LB 730, § 1;    Laws 2009, LB89, § 1;    Laws 2023, LB727, § 88.    
Operative Date: January 1, 2024


77-4002. Definitions; where found.

For purposes of the Tobacco Products Tax Act, unless the context otherwise requires, the definitions found in sections 77-4003 to 77-4007 shall be used.

Source:Laws 1987, LB 730, § 2;    Laws 2009, LB89, § 2;    Laws 2023, LB727, § 89.    
Operative Date: January 1, 2024


77-4003. Cancel, defined.

Cancel shall mean to discontinue for up to five years all rights and privileges under a license.

Source:Laws 1987, LB 730, § 3.    


77-4003.01. Consumable material, defined.

Consumable material means any liquid solution or other material containing nicotine that is depleted as an electronic nicotine delivery system is used.

Source:Laws 2023, LB727, § 90.    
Operative Date: January 1, 2024


77-4003.02. Electronic nicotine delivery system, defined.

Electronic nicotine delivery system has the same meaning as in section 28-1418.01.

Source:Laws 2023, LB727, § 91.    
Operative Date: January 1, 2024


77-4004. First owner, defined.

First owner shall mean any person:

(1) Engaged in the business of selling tobacco products in this state who brings or causes to be brought into this state from outside this state any tobacco products for sale in this state, including a retailer who purchases directly from suppliers outside this state who are not licensed pursuant to subsection (2) of section 77-4009;

(2) Who makes, manufactures, or fabricates tobacco products in this state for sale in this state; or

(3) Engaged in business outside this state who ships or transports tobacco products to retailers in this state and who becomes licensed pursuant to subsection (2) of section 77-4009.

Source:Laws 1987, LB 730, § 4.    


77-4005. Revoke, defined.

Revoke shall mean to permanently void and recall all rights and privileges of a person to obtain a license.

Source:Laws 1987, LB 730, § 5.    


77-4005.01. Snuff, defined.

Snuff means any finely cut, ground, or powdered tobacco that is not intended to be smoked.

Source:Laws 2009, LB89, § 3.    


77-4006. Suspend, defined.

Suspend shall mean to temporarily interrupt for up to one year all rights and privileges under a license.

Source:Laws 1987, LB 730, § 6.    


77-4007. Tobacco products, defined.

Tobacco products shall mean (1) cigars, (2) cheroots, (3) stogies, (4) periques, (5) granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, (6) snuff, (7) snuff flour, (8) cavendish, (9) plug and twist tobacco, (10) fine cut and other chewing tobacco, (11) shorts, refuse scraps, clippings, cuttings, and sweepings of tobacco, (12) other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise or both for chewing and smoking, and (13) electronic nicotine delivery systems, except that tobacco products shall not mean cigarettes as defined in section 77-2601.

Source:Laws 1987, LB 730, § 7;    Laws 2023, LB727, § 92.    
Operative Date: January 1, 2024


77-4008. Tax imposed; payment.

(1)(a) A tax is hereby imposed upon the first owner of tobacco products to be sold in this state.

(b) The tax on snuff shall be forty-four cents per ounce and a proportionate tax at the like rate on all fractional parts of an ounce. Such tax shall be computed based on the net weight as listed by the manufacturer.

(c) The tax on an electronic nicotine delivery system containing three milliliters or less of consumable material shall be five cents per milliliter of consumable material and a proportionate tax at the like rate on all fractional parts of a milliliter.

(d) The tax on an electronic nicotine delivery system containing more than three milliliters of consumable material shall be ten percent of (i) the purchase price of such electronic nicotine delivery system paid by the first owner or (ii) the price at which the first owner who made, manufactured, or fabricated the electronic nicotine delivery system sells the item to others.

(e) For electronic nicotine delivery systems in the possession of retail dealers for which tax has not been paid, the tax under this subsection shall be imposed at the earliest time the retail dealer: (i) Brings or causes to be brought into the state any electronic nicotine delivery system for sale; (ii) makes, manufactures, or fabricates any electronic nicotine delivery system in this state for sale in this state; or (iii) sells any electronic nicotine delivery system to consumers within this state.

(f) The tax on tobacco products other than snuff and electronic nicotine delivery systems shall be twenty percent of (i) the purchase price of such tobacco products paid by the first owner or (ii) the price at which a first owner who made, manufactured, or fabricated the tobacco product sells the items to others.

(g) The tax on tobacco products shall be in addition to all other taxes.

(2) Whenever any person who is licensed under section 77-4009 purchases tobacco products from another person licensed under section 77-4009, the seller shall be liable for the payment of the tax.

(3) Amounts collected pursuant to this section shall be used and distributed pursuant to section 77-4025.

Source:Laws 1987, LB 730, § 8;    Laws 2002, LB 1085, § 20;    Laws 2003, LB 759, § 24;    Laws 2009, LB89, § 4;    Laws 2023, LB727, § 93.    
Operative Date: January 1, 2024


77-4009. License required; when; application; contents.

(1) Each first owner of tobacco products to be sold in this state shall be licensed by the Tax Commissioner. Every application for such license shall be made on a form prescribed by the Tax Commissioner. The application shall include: (a) The name and address of the applicant or, if the applicant is a firm, partnership, limited liability company, or association, the name and address of each of its members or, if the applicant is a corporation, the name and address of each of its officers and the address of its principal place of business; (b) the location of the place of business to be licensed; and (c) such other information as the Tax Commissioner may require for the purpose of administering the Tobacco Products Tax Act.

(2) A person outside of this state who ships or transports tobacco products to any person in this state to be sold in this state may make application for a license and be granted such a license by the Tax Commissioner. If a license is granted, such person shall be subject to the Tobacco Products Tax Act and shall be entitled to act as a licensee. A person outside this state who receives a license shall have established sufficient contact with this state for the exercise of personal jurisdiction over the person in any matter or issue arising under the act.

Source:Laws 1987, LB 730, § 9;    Laws 1993, LB 121, § 516.    


77-4010. Application; place of business; fee.

An application for a license shall be required for each place of business of a first owner and shall be accompanied by a fee of twenty-five dollars. Such license shall be a continuing license unless the license is revoked, canceled, or suspended, and the fees shall be nonrefundable.

Source:Laws 1987, LB 730, § 10.    


77-4011. Issuance of license; rights.

Upon receipt of an application in proper form and payment of the fee, the Tax Commissioner shall issue a license to the applicant, except as provided in section 77-4013. The license shall permit the applicant to whom it is issued to engage in business at the place of business shown on the license. A license shall not be assignable, shall be valid only for the person in whose name it is issued, and shall be valid unless suspended, canceled, or revoked by the Tax Commissioner.

Source:Laws 1987, LB 730, § 11.    


77-4012. License; revoke, cancel, or suspend; procedure.

The Tax Commissioner may revoke, cancel, or suspend any license for a violation of the Tobacco Products Tax Act or any rule or regulation adopted and promulgated by the Tax Commissioner in administering the act. If a license is revoked, canceled, or suspended, the licensee shall immediately surrender such license to the Tax Commissioner. No determination of revocation, cancellation, or suspension shall be made until notice has been given and a hearing has been held by the Tax Commissioner as provided in section 77-4019, if requested by the licensee.

Source:Laws 1987, LB 730, § 12.    


77-4013. License; restoration; fee.

The Tax Commissioner may restore licenses which have been revoked, canceled, or suspended, but the Tax Commissioner shall not issue a new license after the revocation of such a license unless he or she is satisfied that the former licensee will comply with the Tobacco Products Tax Act. A person whose license has previously been revoked, canceled, or suspended shall pay the Tax Commissioner a fee of twenty-five dollars for the issuance of a license after each revocation, cancellation, or suspension.

Source:Laws 1987, LB 730, § 13.    


77-4014. Licensee; file return; contents; pay tax.

(1) On or before the tenth day of each calendar month, every person licensed under subsection (1) of section 77-4009 shall file a return with the Tax Commissioner showing either the quantity and the price of each tobacco product brought or caused to be brought into this state for sale or the quantity and the price of each tobacco product made, manufactured, or fabricated in this state for sale in this state, whichever is applicable, during the preceding calendar month. For snuff, such return shall also include the net weight as listed by the manufacturer.

(2) Every person licensed pursuant to subsection (2) of section 77-4009 shall, in the manner described in subsection (1) of this section, file a return showing in detail the different kinds, quantity, and wholesale sales price of each tobacco product shipped or transported to retailers in this state to be sold by such retailers during the preceding calendar month. For snuff, such return shall also include the net weight as listed by the manufacturer.

(3) Returns shall be made upon forms furnished and prescribed by the Tax Commissioner. Each return shall be accompanied by a remittance for the full tax liability shown, less an amount of such liability equal to any amount allowed a payer of the sales and use tax pursuant to subdivision (1)(d) of section 77-2708 as compensation to reimburse the licensee for his or her expenses incurred in complying with the Tobacco Products Tax Act.

Source:Laws 1987, LB 730, § 14;    Laws 2002, Second Spec. Sess., LB 32, § 4;    Laws 2009, LB89, § 5.    


77-4015. Return; review; deficiency; notice.

As soon as practicable after any return is filed, the Tax Commissioner shall examine the return. If the Tax Commissioner, in his or her judgment, finds that the return is incorrect and any amount of tax due from the licensee is unpaid, he or she shall notify the licensee of the deficiency. Such notice shall be mailed to the licensee.

Source:Laws 1987, LB 730, § 15;    Laws 2012, LB727, § 49.    


77-4016. Failure to file return; return and assessment by Tax Commissioner; notice.

(1) If any licensee fails to file a return within the time prescribed, the Tax Commissioner may make a return for the licensee from his or her own knowledge and from such information as he or she can obtain through investigation and inspection or otherwise and shall assess a tax on such basis.

(2) Such tax shall be paid within ten days after the Tax Commissioner mails a written notice of the amount to the licensee. Any such return and assessment made by the Tax Commissioner on account of the failure of the licensee to make a return shall be deemed prima facie correct and valid, and the licensee shall have the burden of establishing that such return and assessment is incorrect or invalid in any action or proceeding based on such return and assessment.

Source:Laws 1987, LB 730, § 16;    Laws 2012, LB727, § 50.    


77-4017. Licensee; records; inspection of business.

(1) Every licensee shall keep complete and accurate records for all places of business, including itemized invoices of tobacco products (a) held, purchased, manufactured, or brought in or caused to be brought into this state or (b) for a licensee located outside of this state, shipped or transported to retailers in this state. For snuff, such records shall also include the net weight as listed by the manufacturer.

(2) All books, records, and other papers and documents required to be kept by this section shall be preserved for a period of at least three years after the due date of the tax imposed by the Tobacco Products Tax Act unless the Tax Commissioner, in writing, authorizes their destruction or disposal at an earlier date.

(3) At any time during usual business hours, duly authorized agents or employees of the Tax Commissioner may enter any place of business of a licensee and inspect the premises, the records required to be kept pursuant to this section, and the tobacco products contained in such place of business for purposes of determining whether or not such licensee is in full compliance with the act. Refusal to permit such inspection by a duly authorized agent or employee of the Tax Commissioner shall be grounds for revocation, cancellation, or suspension of the license.

Source:Laws 1987, LB 730, § 17;    Laws 2009, LB89, § 6.    


77-4018. Tax refund or credit.

When tobacco products for which the tax imposed by the Tobacco Products Tax Act has been reported and paid are (1) sold, shipped, or transported by the licensee to retailers, licensees, or ultimate consumers outside this state or (2) returned to the manufacturer by the licensee, a refund or credit of the tax shall be made to the licensee. For the purpose of making such credit or refund, the Tax Commissioner may issue a tax credit or may prepare a voucher showing the net amount of such refund due. The Tax Commissioner shall have a warrant drawn upon the State Treasurer for the amount of any such refund certified by the Tax Commissioner.

Source:Laws 1987, LB 730, § 18.    


77-4019. Hearing; procedure.

A licensee may request a hearing on any proposed notice of deficiency issued by the Tax Commissioner. A licensee may also request a hearing after notice that the Tax Commissioner intends to revoke, cancel, or suspend a license. Such request shall be made within twenty days after the receipt of the notice of deficiency or the notice that the Tax Commissioner intends to revoke, cancel, or suspend a license. At such hearing the Tax Commissioner, or any officer or employee of the Tax Commissioner designated in writing, may examine any books, papers, or memoranda bearing upon the matter at issue and require the attendance of any licensee or any officer or employee of such licensee having knowledge pertinent to such hearing. The Tax Commissioner or his or her designee shall have the power to administer oaths to persons testifying at such hearing.

During the hearing, the Tax Commissioner or his or her designee shall not be bound by the technical rules of evidence, and no informality in any proceeding or in the manner of taking testimony shall invalidate any order or decision made or approved by the Tax Commissioner.

Source:Laws 1987, LB 730, § 19.    


77-4020. Final decision; notification; appeal.

Within a reasonable time after the hearing pursuant to section 77-4019, the Tax Commissioner shall make a final decision or final determination and notify the licensee by mail of such decision or determination. If any tax or additional tax becomes due, such notice shall be accompanied by a demand for payment of any tax due. A licensee may appeal the decision of the Tax Commissioner, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1987, LB 730, § 20;    Laws 1988, LB 352, § 162;    Laws 2012, LB727, § 51.    


Cross References

77-4021. Recovery of tax, interest, or penalty; effect.

The Tax Commissioner may recover the amount of any tax, interest, or penalty imposed under the Tobacco Products Tax Act in a civil action. The Uniform State Tax Lien Registration and Enforcement Act shall apply to such taxes, interest, or penalties. The collection of such tax, interest, or penalty shall not be a bar to any criminal prosecution pursuant to section 77-4024.

Source:Laws 1987, LB 730, § 21.    


Cross References

77-4022. Tax; interest; penalty.

(1) Any tax imposed by section 77-4008 which is not paid on the due date shall become delinquent, and a penalty of twenty-five percent shall be added thereto, and shall bear interest at the rate prescribed by section 45-104.02, as such rate may from time to time be adjusted, from the due date until paid.

(2) In addition to the penalty provided in subsection (1) of this section, if the Tax Commissioner finds that a licensee has made a false and fraudulent return with intent to evade the Tobacco Products Tax Act, the Tax Commissioner shall assess a penalty of twenty-five percent of the entire tax due for which the false and fraudulent return was made, excluding interest.

Source:Laws 1987, LB 730, § 22;    Laws 1992, Fourth Spec. Sess., LB 1, § 39;    Laws 2014, LB33, § 5.    


77-4023. Tax Commissioner; adopt rules and regulations.

The Tax Commissioner shall adopt and promulgate such rules and regulations as may be necessary to administer and enforce the Tobacco Products Tax Act.

Source:Laws 1987, LB 730, § 23.    


77-4024. Violation; penalty.

Any person who violates the Tobacco Products Tax Act or any person who sells, delivers, or accepts tobacco products with the intent to evade the act shall be guilty of a Class IV felony.

Source:Laws 1987, LB 730, § 24.    


77-4025. Tobacco Products Administration Cash Fund; created; use; investment.

(1) There is hereby created a cash fund in the Department of Revenue to be known as the Tobacco Products Administration Cash Fund. All revenue collected or received by the Tax Commissioner from the license fees and taxes imposed by the Tobacco Products Tax Act shall be remitted to the State Treasurer for credit to the Tobacco Products Administration Cash Fund, except that all such revenue relating to electronic nicotine delivery systems shall be remitted to the State Treasurer for credit to the General Fund.

(2) All costs required for administration of the Tobacco Products Tax Act shall be paid from the Tobacco Products Administration Cash Fund. Credits and refunds allowed under the act shall be paid from the Tobacco Products Administration Cash Fund. Any receipts, after credits and refunds, in excess of the amounts sufficient to cover the costs of administration may be transferred to the General Fund at the direction of the Legislature.

(3) Any money in the Tobacco Products Administration Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1987, LB 730, § 25;    Laws 1989, LB 258, § 12;    Laws 1994, LB 1066, § 85;    Laws 2002, LB 1085, § 21;    Laws 2002, LB 1310, § 10;    Laws 2009, LB89, § 7;    Laws 2023, LB727, § 94.    
Operative Date: January 1, 2024


Cross References

77-4101. Act, how cited.

Sections 77-4101 to 77-4112 shall be known and may be cited as the Employment and Investment Growth Act.

Source:Laws 1987, LB 775, § 1;    Laws 1988, LB 1234, § 3;    Laws 1998, LB 1104, § 19;    Laws 1999, LB 539, § 4.    


77-4102. Legislative findings.

(1) The Legislature hereby finds and declares that:

(a) Current economic conditions in the State of Nebraska have resulted in unemployment, outmigration of people, loss of jobs, and difficulty in attracting and retaining business operations; and

(b) Major revisions in Nebraska's tax structure are necessary to accomplish economic revitalization of Nebraska and to be competitive with other states involved in economic revitalization and development.

(2) It is the policy of this state to make revisions in Nebraska's tax structure in order to encourage new businesses to relocate to Nebraska, retain existing businesses and aid in their expansion, promote the creation and retention of new jobs in Nebraska, and attract and retain investment capital in the State of Nebraska.

Source:Laws 1987, LB 775, § 2.    


77-4103. Terms, defined.

For purposes of the Employment and Investment Growth Act, unless the context otherwise requires:

(1) Any term shall have the same meaning as used in Chapter 77, article 27;

(2) Base year shall mean the year immediately preceding the year during which the application was submitted;

(3) Base-year employee shall mean any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the project;

(4) Compensation shall mean the wages and other payments subject to withholding for federal income tax purposes;

(5) Entitlement period shall mean the year during which the required increases in employment and investment were met or exceeded, and the next six years;

(6) Equivalent employees shall mean the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year;

(7) Investment shall mean the value of qualified property incorporated into or used at the project. For qualified property owned by the taxpayer, the value shall be the original cost of the property. For qualified property rented by the taxpayer, the average net annual rent shall be multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years or the end of the third year after the entitlement period, whichever is earlier. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation;

(8) Motor vehicle shall mean any motor vehicle, semitrailer, or trailer as defined in the Motor Vehicle Registration Act and subject to licensing for operation on the highways;

(9) Nebraska employee shall mean an individual who is either a resident or partial-year resident of Nebraska;

(10) Number of new employees shall mean the excess of the number of equivalent employees employed at the project during a year over the number of equivalent employees during the base year;

(11) Qualified business shall mean any business engaged in the activities listed in subdivisions (b)(i) through (v) of this subdivision or in the storage, warehousing, distribution, transportation, or sale of tangible personal property. Qualified business shall not include any business activity in which eighty percent or more of the total sales are sales to the ultimate consumer of food prepared for immediate consumption or are sales to the ultimate consumer of tangible personal property which is not (a) assembled, fabricated, manufactured, or processed by the taxpayer or (b) used by the purchaser in any of the following activities:

(i) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(ii) The performance of data processing, telecommunication, insurance, or financial services. Financial services for purposes of this subdivision shall only include financial services provided by any financial institution subject to tax under Chapter 77, article 38, or any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission;

(iii) The assembly, fabrication, manufacture, or processing of tangible personal property;

(iv) The administrative management of any activities, including headquarter facilities relating to such activities; or

(v) Any combination of the activities listed in this subdivision;

(12) Qualified employee leasing company shall mean a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and a client-lessee, grants to the client-lessee input into the hiring and firing of the employees leased to the client-lessee;

(13) Qualified property shall mean any tangible property of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, or the components of such property, that will be located and used at the project. Qualified property shall not include (a) aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or (b) property that is rented by the taxpayer qualifying under the Employment and Investment Growth Act to another person;

(14) Related persons shall mean any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under either section 267(b) and (c) or section 707(b) of the Internal Revenue Code of 1986;

(15) Taxpayer shall mean any person subject to the sales and use taxes and either an income tax imposed by the Nebraska Revenue Act of 1967 or a franchise tax under sections 77-3801 to 77-3807, any corporation, partnership, limited liability company, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, which is, or whose partners, members, or owners representing an ownership interest of at least ninety percent of such entity are, subject to such taxes, and any other partnership, limited liability company, S corporation, or joint venture when the partners, shareholders, or members representing an ownership interest of at least ninety percent of such entity are subject to such taxes; and

(16) Year shall mean the taxable year of the taxpayer.

The changes made in this section by Laws 1997, LB 264, apply to investments made or employment on or after January 1, 1997, and for all agreements in effect on or after January 1, 1997.

Source:Laws 1987, LB 775, § 3;    Laws 1988, LB 1234, § 4;    Laws 1993, LB 121, § 517;    Laws 1997, LB 264, § 2;    Laws 1999, LB 539, § 5;    Laws 2004, LB 1065, § 10;    Laws 2005, LB 274, § 278.    


Cross References

Annotations

77-4103.01. Qualified employee leasing company; employees; duty.

An employee of a qualified employee leasing company shall be considered to be an employee of the client-lessee for purposes of the Employment and Investment Growth Act if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.

Source:Laws 1999, LB 539, § 6.    


77-4104. Incentives; application; contents; fee; approval; agreements; contents.

(1) In order to utilize the incentives set forth in the Employment and Investment Growth Act, the taxpayer shall file an application for an agreement with the Tax Commissioner.

(2) The application shall contain:

(a) A written statement describing the plan of employment and investment for a qualified business in this state;

(b) Sufficient documents, plans, and specifications as required by the Tax Commissioner to support the plan and to define a project;

(c) If more than one location within this state is involved, sufficient documentation to show that the employment and investment at different locations are interdependent parts of the plan. A headquarters shall be presumed to be interdependent with any other location directly controlled by such headquarters. A showing that the parts of the plan would be considered parts of a unitary business for corporate income tax purposes shall not be sufficient to show interdependence for the purposes of this subdivision;

(d) A nonrefundable application fee of five hundred dollars. The fee shall be deposited into the Nebraska Incentives Fund; and

(e) A timetable showing the expected sales tax refunds and what year they are expected to be claimed. The timetable shall include both direct refunds due to investment and credits taken as sales tax refunds as accurately as possible.

The application and all supporting information shall be confidential except for the name of the taxpayer, the location of the project, the amounts of increased employment and investment, and the information required to be reported by sections 77-4110 and 77-4113.

(3) Once satisfied that the plan in the application defines a project consistent with the purposes stated in section 77-4102 in one or more qualified business activities within this state, that the plans will result in either (a) the investment in qualified property of at least three million dollars and the hiring of at least thirty new employees or (b) the investment in qualified property resulting in a net gain in the total value of tangible property in this state of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986 of at least twenty million dollars, and that the required levels of employment and investment for the project will be met prior to the end of the sixth year after the year in which the application was submitted, the Tax Commissioner shall approve the application. In determining the net gain in value for purposes of this subsection, all tangible personal property shall be valued in a manner consistent with the value determined for qualified property, and the total value on the last day of each year shall be compared with the total value on the last day of the base year.

(4) After approval, the taxpayer and the Tax Commissioner shall enter into a written agreement. The taxpayer shall agree to complete the project, and the Tax Commissioner, on behalf of the State of Nebraska, shall designate the approved plans of the taxpayer as a project and, in consideration of the taxpayer's agreement, agree to allow the taxpayer to use the incentives contained in the Employment and Investment Growth Act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The levels of employment and investment required by the act for the project;

(b) The time period under the act in which the required levels must be met;

(c) The documentation the taxpayer will need to supply when claiming an incentive under the act;

(d) The date the application was filed; and

(e) A requirement that the company update the Department of Revenue annually on any changes in plans or circumstances which affect the timetable of sales tax refunds as set out in the application. If the company fails to comply with this requirement, the Tax Commissioner may defer any pending sales tax refunds until the company does comply.

(5) The incentives contained in section 77-4105 shall be in lieu of the tax credits allowed by section 77-27,188 for any project. In computing credits under section 77-27,188, any investment or employment which is eligible for benefits under the Employment and Investment Growth Act shall be subtracted from the increases computed for determining the credits under section 77-27,188.

(6) A taxpayer and the Tax Commissioner may enter into agreements for more than one project and may include more than one project in a single agreement. The projects may be either sequential or concurrent. A project may involve the same location as another project. No new employment or new investment shall be included in more than one project for either the meeting of the employment or investment requirements or the creation of credits. When projects overlap and the plans do not clearly specify, then the taxpayer shall specify in which project the employment and investment belongs.

Source:Laws 1987, LB 775, § 4;    Laws 1988, LB 1234, § 5;    Laws 1990, LB 431, § 2;    Laws 1994, LB 1066, § 86;    Laws 1996, LB 1290, § 2;    Laws 1999, LB 87A, § 1;    Laws 2008, LB914, § 18.    


77-4104.01. Incentives; credits or benefits; limitation.

The following transactions or activities shall not create any credits or allow any benefits under the Employment and Investment Growth Act except as specifically allowed by this section:

(1) The acquisition of a business which is continued by the taxpayer and which was operated in this state during the three hundred sixty-six days prior to the date of application or the date of acquisition, whichever is later. All employees of the acquired business during such period shall be considered base-year employees, and the compensation paid during the base year or the year before acquisition, whichever is later shall be the base-year compensation. Any investment in the acquisition of such business shall be considered as being made before the date of application;

(2) The moving of a business from one location to another, which business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such three hundred sixty-six days shall be considered base-year employees;

(3) The purchase or lease of any property which was previously owned by the taxpayer or a related person. The first purchase by either the taxpayer or a related person shall be treated as investment if the item was first placed in service in this state after the date of the application;

(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of any benefit or the meeting of any required levels under the agreement;

(5) Any purchase or lease of property from a related person, except that the taxpayer will be allowed any benefits under the Employment and Investment Growth Act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the taxpayer;

(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in the state; and

(7) For applications received after April 16, 2004, any activity that results in benefits under the Ethanol Development Act.

Source:Laws 1988, LB 1234, § 6;    Laws 2004, LB 479, § 9.    


Cross References

77-4105. Incentives; income tax, personal property tax, sales and use tax; credits.

(1) A taxpayer who has signed an agreement under section 77-4104 may elect to determine taxable income for purposes of the Nebraska income tax using the sales factor only. The election may be made for the year during which the application was filed and for each year thereafter through the eighth year after the end of the entitlement period. The election shall be made for the year of the election by computing taxable income using the sales factor only on the tax return.

(2) A taxpayer who has signed an agreement under section 77-4104 shall receive the incentive provided in this subsection if the agreement contains one or more projects which together will result in the investment in qualified property of at least ten million dollars and the hiring of at least one hundred new employees. Such ten-million-dollar investment and hiring of at least one hundred new employees shall be considered a required level of investment and employment for this subsection and for the recapture of personal property tax only.

The following property used in connection with such project or projects and acquired by the taxpayer, whether by lease or purchase, after the date the application was filed shall constitute separate classes of personal property:

(a) Turbine-powered aircraft, including turboprop, turbojet, and turbofan aircraft, except when any such aircraft is used for fundraising for or for the transportation of an elected official;

(b) Computer systems, made up of equipment that is interconnected in order to enable the acquisition, storage, manipulation, management, movement, control, display, transmission, or reception of data involving computer software and hardware, used for business information processing which require environmental controls of temperature and power and which are capable of simultaneously supporting more than one transaction and more than one user. A computer system includes peripheral components which require environmental controls of temperature and power connected to such computers. Peripheral components shall be limited to additional memory units, tape drives, disk drives, power supplies, cooling units, data switches, and communication controllers; and

(c) Personal property which is business equipment located in a single project if (i) the business equipment is involved directly in the manufacture or processing of agricultural products and (ii) the investment in the single project exceeds ten million dollars.

Such property shall be eligible for exemption from the tax on personal property from the first January 1 following the date of acquisition for property in subdivision (2)(a) of this section, or from the first January 1 following the end of the year during which the required levels were exceeded for property in subdivisions (2)(b) and (2)(c) of this section, through the sixteenth December 31 after the filing of the application. In order to receive the property tax exemptions allowed by subdivisions (2)(a), (2)(b), and (2)(c) of this section, the taxpayer shall annually file a claim for exemption with the Tax Commissioner on or before May 1. The form and supporting schedules shall be prescribed by the Tax Commissioner and shall list all property for which exemption is being sought under this section. A separate claim for exemption must be filed for each project and each county in which property is claimed to be exempt. A copy of this form must also be filed with the county assessor in each county in which the applicant is requesting exemption. The Tax Commissioner shall determine the eligibility of each item listed for exemption and, on or before August 1, certify such to the taxpayer and to the affected county assessor.

(3) When the taxpayer has met the required levels of employment and investment contained in the agreement, the taxpayer shall also be entitled to the following incentives:

(a) A refund of all sales and use taxes paid under the Nebraska Revenue Act of 1967, the Local Option Revenue Act, and sections 13-319, 13-324, and 13-2813 from the date of the application through the meeting of the required levels of employment and investment for all purchases, including rentals, of:

(i) Qualified property used as a part of the project;

(ii) Property, excluding motor vehicles, based in this state and used in both this state and another state in connection with the project except when any such property is to be used for fundraising for or for the transportation of an elected official;

(iii) Tangible personal property by the owner of the improvement to real estate that is incorporated into real estate as a part of a project; and

(iv) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the owner of the improvement to real estate. The refund shall be based on fifty percent of the contract price, excluding any land, as the cost of materials subject to the sales and use tax; and

(b) A refund of the sales and use taxes paid under the Nebraska Revenue Act of 1967, the Local Option Revenue Act, and sections 13-319, 13-324, and 13-2813 on the types of purchases, including rentals, listed in subdivision (a) of this subsection for such taxes paid during each year of the entitlement period in which the taxpayer is at or above the required levels of employment and investment.

(4) Any taxpayer who qualifies for the incentives contained in subsections (1) and (3) of this section and who has added at least thirty new employees at the project shall also be entitled to:

(a) A credit equal to five percent of the amount by which the total compensation paid during the year to employees who are either Nebraska employees or base-year employees while employed at the project exceeds the average compensation paid at the project multiplied by the number of equivalent base-year employees.

For the computation of such credit, average compensation shall mean the total compensation paid at the project divided by the total number of equivalent employees at the project; and

(b) A credit equal to ten percent of the investment made in qualified property at the project.

The credits prescribed in subdivisions (a) and (b) of this subsection shall be allowable for compensation paid and investments made during each year of the entitlement period that the taxpayer is at or above the required levels of employment and investment.

The credit prescribed in subdivision (b) of this subsection shall also be allowable during the first year of the entitlement period for investment in qualified property at the project after the date of the application and before the required levels of employment and investment were met.

Source:Laws 1987, LB 775, § 5;    Laws 1988, LB 1234, § 7;    Laws 1996, LB 1177, § 20;    Laws 2000, LB 968, § 73;    Laws 2001, LB 142, § 59;    Laws 2007, LB223, § 25;    Laws 2007, LB334, § 95;    Laws 2008, LB965, § 19.    


Cross References

77-4106. Credits; use; refund claims; procedures; interest; appointment of purchasing agent.

(1)(a) The credits prescribed in section 77-4105 shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credits may be used after any other nonrefundable credits to reduce the taxpayer's income tax liability imposed by sections 77-2714 to 77-27,135. The credits may be used to obtain a refund of sales and use taxes under the Nebraska Revenue Act of 1967, the Local Option Revenue Act, and sections 13-319, 13-324, and 13-2813 which are not otherwise refundable that are paid on purchases, including rentals, for use at the project.

(b) The credits may be used as allowed in subdivision (a) of this subsection and shall be applied in the order in which they were first allowed. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section.

(c) The credit may be carried over until fully utilized, except that such credit may not be carried over more than eight years after the end of the entitlement period.

(2)(a) No refund claims shall be filed until after the required levels of employment and investment have been met.

(b) Refund claims shall be filed no more than once each quarter for refunds under the Employment and Investment Growth Act, except that any claim for a refund in excess of twenty-five thousand dollars may be filed at any time.

(c) Any refund claim for sales and use tax on materials incorporated into real estate as a part of the project shall be filed by and the refund paid to the owner of the improvement to real estate. A refund claim for such materials purchased by a purchasing agent shall include a copy of the purchasing agent appointment, the contract price, and a certification by the contractor or repairperson of the percentage of the materials incorporated into the project on which sales and use taxes were paid to Nebraska after appointment as purchasing agent.

(d) All refund claims shall be filed, processed, and allowed as any other claim under section 77-2708, except that the amounts allowed to be refunded under the Employment and Investment Growth Act shall be deemed to be overpayments and shall be refunded notwithstanding any limitation in subdivision (2)(a) of section 77-2708. The refund may be allowed if the claim is filed within three calendar years from the end of the year the required levels of employment and investment are met or within the period set forth in section 77-2708.

(e) Interest shall not be allowed on any sales and use taxes refunded under the Employment and Investment Growth Act.

(3) The appointment of purchasing agents shall be recognized for the purpose of changing the status of a contractor or repairperson as the ultimate consumer of tangible personal property purchased after the date of the appointment which is physically incorporated into the project and becomes the property of the owner of the improvement to real estate. The purchasing agent shall be jointly liable for the payment of the sales and use tax on the purchases with the owner of the improvement to real estate.

Source:Laws 1987, LB 775, § 6;    Laws 1996, LB 1177, § 21;    Laws 2001, LB 142, § 60.    


Cross References

77-4107. Recapture or disallowance of incentives.

(1) If the taxpayer fails either to meet the required levels of employment or investment for the applicable project by the end of the sixth year after the end of the year the application was submitted for such project or to utilize such project in a qualified business at employment and investment levels at or above those required in the agreement for the entire entitlement period, all or a portion of the incentives set forth in the Employment and Investment Growth Act shall be recaptured or disallowed.

(2) The recapture or disallowance shall be as follows:

(a) In the case of a taxpayer who failed to meet the required levels within the required time period, all reduction in the personal property tax because of the Employment and Investment Growth Act shall be recaptured and any reduction in the corporate income tax arising solely because of an election under subsection (1) of section 77-4105 shall be deemed an underpayment of the income tax for the year in which the election was exercised and shall be immediately due and payable; and

(b) In the case of a taxpayer who has failed to maintain the project at the required levels of employment and investment for the entire entitlement period, any reduction in the personal property tax, any refunds in tax allowed under subdivision (3)(a) of section 77-4105, and any refunds or reduction in tax allowed because of the use of a credit allowed under subsection (4) of section 77-4105 shall be partially recaptured from either the taxpayer or the owner of the improvement to real estate and any carryovers of credits shall be partially disallowed. One-seventh of the refunds, one-seventh of the reduction in personal property tax, and one-seventh of the credits used shall be recaptured and one-seventh of the remaining carryovers and the last remaining year of personal property tax exemption shall be disallowed for each year the taxpayer did not maintain such project at or above the required levels of employment or investment.

(3) Any refunds or reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable.

When tax benefits were received in more than one year, the tax benefits received in the most recent year shall be recovered first and then the benefits received in earlier years up to the extent of the required recapture.

(4) Any personal property tax that would have been due except for the exemption allowed under the Employment and Investment Growth Act, to the extent it becomes due under this section, shall be considered an underpayment of such tax and shall be immediately due and payable to the county or counties in which the property was located when exempted. All amounts received by a county under this section shall be allocated to each taxing unit levying taxes on tangible personal property in the county in the same proportion that the levy on tangible personal property of such taxing unit bears to the total levy of all of such taxing units.

(5) Notwithstanding any other limitations contained in the laws of this state, collections of any taxes deemed to be underpayments by this section shall be allowed for a period of ten years after the signing of the agreement or three years after the end of the entitlement period, whichever is later.

(6) Any amounts due under this section shall be recaptured notwithstanding other allowable credits and shall not be subsequently refunded under any provision of the Employment and Investment Growth Act unless the recapture was in error.

(7) The recapture required by this section shall not occur if the failure to maintain the required levels of employment or investment was caused by an act of God or national emergency.

Source:Laws 1987, LB 775, § 7;    Laws 1988, LB 1234, § 8.    


Annotations

77-4108. Incentives; transfer; when; effect.

(1) The incentives allowed under the Employment and Investment Growth Act shall not be transferable except in the following situations:

(a) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, or an estate or trust may be distributed to the partners, members, shareholders, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities, and such partners, members, shareholders, or beneficiaries shall be deemed to have made an underpayment of their income taxes for any recapture required by section 77-4107; and

(b) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986.

(2) The acquiring taxpayer, as of the date of notification of the Tax Commissioner of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the act.

(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer for the repayment of any benefits received either before or after the transfer.

(4) If a taxpayer operating a project and allowed a credit under the act dies and there is a credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of the credit may be changed only after obtaining the permission of the Tax Commissioner.

Source:Laws 1987, LB 775, § 8;    Laws 1993, LB 121, § 518.    


77-4108.01. Refund claims; interest not allowable.

For all refund claims filed on or after October 1, 1998, interest shall not be allowable on any refunds paid because of benefits earned under the Employment and Investment Growth Act.

Source:Laws 1998, LB 1104, § 20.    


77-4109. Application; valid; when; limitation on new applications.

(1) Any complete application filed on or after the date of passage of Laws 1987, LB 775, shall be considered a valid application on the date submitted for the purposes of the Employment and Investment Growth Act.

(2) No new applications shall be filed under the act on or after January 1, 2006. All project applications filed before January 1, 2006, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to project applications filed before January 1, 2006. All project agreements pending, approved, or entered into before such date with respect to the act shall continue in full force and effect.

Source:Laws 1987, LB 775, § 9;    Laws 2005, LB 312, § 57.    


77-4110. Annual report; contents; joint hearing.

(1) The Tax Commissioner shall submit electronically an annual report to the Legislature no later than October 31 of each year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Revenue shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) The report shall list (a) the agreements which have been signed during the previous fiscal year, (b) the agreements which are still in effect, (c) the identity of each taxpayer, and (d) the location of each project.

(3) The report shall also state by industry group (a) the specific incentive options applied for under the Employment and Investment Growth Act, (b) the refunds allowed on the investment, (c) the credits earned, (d) the credits used to reduce the corporate income tax and the credits used to reduce the individual income tax, (e) the credits used to obtain sales and use tax refunds, (f) the number of jobs created, (g) the total number of employees employed in the state by the taxpayer on the last day of the calendar quarter prior to the application date and the total number of employees employed in the state by the taxpayer on subsequent reporting dates, (h) the expansion of capital investment, (i) the estimated wage levels of jobs created subsequent to the application date, (j) the total number of qualified applicants, (k) the projected future state revenue gains and losses, (l) the sales tax refunds owed to the applicants, (m) the credits outstanding, and (n) the value of personal property exempted by class in each county.

(4) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 1987, LB 775, § 10;    Laws 1990, LB 431, § 3;    Laws 2007, LB223, § 26;    Laws 2012, LB782, § 138;    Laws 2013, LB612, § 4;    Laws 2022, LB1150, § 5.    


77-4111. Tax Commissioner; rules and regulations.

The Tax Commissioner may adopt and promulgate all rules and regulations necessary to carry out the purposes of the Employment and Investment Growth Act.

Source:Laws 1988, LB 1234, § 9;    Laws 2019, LB512, § 28.    


77-4112. Change in law; effect; operative date.

(1) The changes made in sections 77-4103 to 77-4105 and 77-4107 by Laws 1988, LB 1234, shall become operative for all applications filed on and after January 1, 1988. For all applications filed prior to January 1, 1988, the provisions of the Employment and Investment Growth Act as they existed immediately prior to such date shall apply.

(2) Section 77-4113 and the changes made in section 77-4104 by Laws 1996, LB 1290, shall become operative for all applications filed on or after May 1, 1996.

(3) The changes made in sections 77-4101 and 77-4103 by Laws 1999, LB 539, and section 77-4103.01 shall become operative for any taxpayer with an agreement in effect on or after January 1, 1999. Such changes and section 77-4103.01 shall be applied on a consistent basis for determining benefits for tax years beginning, or deemed to begin, on and after January 1, 1999. For all benefit determinations in tax years beginning, or deemed to begin, prior to January 1, 1999, the provisions of the Employment and Investment Growth Act as they existed immediately prior to such date shall apply.

Source:Laws 1988, LB 1234, § 11;    Laws 1996, LB 1290, § 3;    Laws 1999, LB 539, § 7.    


77-4113. Department of Revenue; estimate of sales tax refunds under Employment and Investment Growth Act; duties.

The Department of Revenue shall, on or before the fifteenth day of October and February of every year and the fifteenth day of April in odd-numbered years, make an estimate of the amount of sales tax refunds to be paid under the Employment and Investment Growth Act during the fiscal years to be forecast under section 77-27,158. The estimate shall be based on the most recent data available including pending and approved applications and updates thereof as are required by subdivisions (2)(e) and (4)(e) of section 77-4104. The estimate shall be forwarded to the Legislative Fiscal Analyst and the Nebraska Economic Forecasting Advisory Board and made a part of the advisory forecast required by section 77-27,158.

Source:Laws 1996, LB 1290, § 1.    


Cross References

77-4201. Repealed. Laws 1991, LB 9, § 8.

77-4202. Repealed. Laws 1991, LB 9, § 8.

77-4203. Repealed. Laws 1991, LB 9, § 8.

77-4204. Repealed. Laws 1991, LB 9, § 8.

77-4205. Repealed. Laws 1991, LB 9, § 8.

77-4206. Repealed. Laws 1991, LB 9, § 8.

77-4207. Repealed. Laws 1991, LB 9, § 8.

77-4208. Repealed. Laws 1998, LB 1110, § 5.

77-4209. Act, how cited.

Sections 77-4209 to 77-4212 shall be known and may be cited as the Property Tax Credit Act.

Source:Laws 2007, LB367, § 1.    


77-4210. Purpose of act.

The purpose of the Property Tax Credit Act is to provide property tax relief for property taxes levied against real property. The property tax relief will be made to owners of real property in the form of a property tax credit.

Source:Laws 2007, LB367, § 2.    


77-4211. Property Tax Credit Cash Fund; created; use; investment.

The Property Tax Credit Cash Fund is created. The fund shall only be used pursuant to the Property Tax Credit Act. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 2007, LB367, § 3.    


Cross References

77-4212. Property tax credit; minimum amount; county treasurer; duties; disbursement to counties; Property Tax Administrator; State Treasurer; duties.

(1) For tax year 2007, the amount of relief granted under the Property Tax Credit Act shall be one hundred five million dollars. For tax year 2008, the amount of relief granted under the act shall be one hundred fifteen million dollars. It is the intent of the Legislature to fund the Property Tax Credit Act for tax years after tax year 2008 using available revenue. For tax year 2017, the amount of relief granted under the act shall be two hundred twenty-four million dollars. For tax year 2020 through tax year 2022, the minimum amount of relief granted under the act shall be two hundred seventy-five million dollars. For tax year 2023, the minimum amount of relief granted under the act shall be three hundred sixty million dollars. For tax year 2024, the minimum amount of relief granted under the act shall be three hundred ninety-five million dollars. For tax year 2025, the minimum amount of relief granted under the act shall be four hundred thirty million dollars. For tax year 2026, the minimum amount of relief granted under the act shall be four hundred forty-five million dollars. For tax year 2027, the minimum amount of relief granted under the act shall be four hundred sixty million dollars. For tax year 2028, the minimum amount of relief granted under the act shall be four hundred seventy-five million dollars. For tax year 2029, the minimum amount of relief granted under the act shall be the minimum amount from the prior tax year plus a percentage increase equal to the percentage increase, if any, in the total assessed value of all real property in the state from the prior year to the current year, as determined by the Department of Revenue, plus an additional seventy-five million dollars. For tax year 2030 and each tax year thereafter, the minimum amount of relief granted under the act shall be the minimum amount from the prior tax year plus a percentage increase equal to the percentage increase, if any, in the total assessed value of all real property in the state from the prior year to the current year, as determined by the Department of Revenue. If money is transferred or credited to the Property Tax Credit Cash Fund pursuant to any other state law, such amount shall be added to the minimum amount required under this subsection when determining the total amount of relief granted under the act. The relief shall be in the form of a property tax credit which appears on the property tax statement.

(2)(a) For tax years prior to tax year 2017, to determine the amount of the property tax credit, the county treasurer shall multiply the amount disbursed to the county under subdivision (4)(a) of this section by the ratio of the real property valuation of the parcel to the total real property valuation in the county. The amount determined shall be the property tax credit for the property.

(b) Beginning with tax year 2017, to determine the amount of the property tax credit, the county treasurer shall multiply the amount disbursed to the county under subdivision (4)(b) of this section by the ratio of the credit allocation valuation of the parcel to the total credit allocation valuation in the county. The amount determined shall be the property tax credit for the property.

(3) If the real property owner qualifies for a homestead exemption under sections 77-3501 to 77-3529, the owner shall also be qualified for the relief provided in the act to the extent of any remaining liability after calculation of the relief provided by the homestead exemption. If the credit results in a property tax liability on the homestead that is less than zero, the amount of the credit which cannot be used by the taxpayer shall be returned to the Property Tax Administrator by July 1 of the year the amount disbursed to the county was disbursed. The Property Tax Administrator shall immediately credit any funds returned under this subsection to the Property Tax Credit Cash Fund. Upon the return of any funds under this subsection, the county treasurer shall electronically file a report with the Property Tax Administrator, on a form prescribed by the Tax Commissioner, indicating the amount of funds distributed to each taxing unit in the county in the year the funds were returned, any collection fee retained by the county in such year, and the amount of unused credits returned.

(4)(a) For tax years prior to tax year 2017, the amount disbursed to each county shall be equal to the amount available for disbursement determined under subsection (1) of this section multiplied by the ratio of the real property valuation in the county to the real property valuation in the state. By September 15, the Property Tax Administrator shall determine the amount to be disbursed under this subdivision to each county and certify such amounts to the State Treasurer and to each county. The disbursements to the counties shall occur in two equal payments, the first on or before January 31 and the second on or before April 1. After retaining one percent of the receipts for costs, the county treasurer shall allocate the remaining receipts to each taxing unit levying taxes on taxable property in the tax district in which the real property is located in the same proportion that the levy of such taxing unit bears to the total levy on taxable property of all the taxing units in the tax district in which the real property is located.

(b) Beginning with tax year 2017, the amount disbursed to each county shall be equal to the amount available for disbursement determined under subsection (1) of this section multiplied by the ratio of the credit allocation valuation in the county to the credit allocation valuation in the state. By September 15, the Property Tax Administrator shall determine the amount to be disbursed under this subdivision to each county and certify such amounts to the State Treasurer and to each county. The disbursements to the counties shall occur in two equal payments, the first on or before January 31 and the second on or before April 1. After retaining one percent of the receipts for costs, the county treasurer shall allocate the remaining receipts to each taxing unit based on its share of the credits granted to all taxpayers in the taxing unit.

(5) For purposes of this section, credit allocation valuation means the taxable value for all real property except agricultural land and horticultural land, one hundred twenty percent of taxable value for agricultural land and horticultural land that is not subject to special valuation, and one hundred twenty percent of taxable value for agricultural land and horticultural land that is subject to special valuation.

(6) The State Treasurer shall transfer from the General Fund to the Property Tax Credit Cash Fund one hundred five million dollars by August 1, 2007, and one hundred fifteen million dollars by August 1, 2008.

(7) The Legislature shall have the power to transfer funds from the Property Tax Credit Cash Fund to the General Fund.

Source:Laws 2007, LB367, § 4;    Laws 2014, LB1087, § 21;    Laws 2016, LB958, § 1;    Laws 2017, LB217, § 22;    Laws 2020, LB1107, § 136;    Laws 2021, LB509, § 14;    Laws 2023, LB243, § 13.    
Operative Date: September 2, 2023


77-4301. Terms, defined.

For purposes of sections 77-4301 to 77-4316:

(1) Controlled substance shall mean any drug or substance, including an imitation controlled substance, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Nebraska law. Controlled substance shall not include marijuana;

(2) Dealer shall mean a person who, in violation of Nebraska law, manufactures, produces, ships, transports, or imports into Nebraska or in any manner acquires or possesses six or more ounces of marijuana, seven or more grams of any controlled substance which is sold by weight, or ten or more dosage units of any controlled substance which is not sold by weight;

(3) Imitation controlled substance shall have the meaning as provided in section 28-401; and

(4) Marijuana shall have the meaning as provided in section 28-401.

Source:Laws 1990, LB 260, § 1;    Laws 1991, LB 773, § 26.


Annotations

77-4302. Possession by dealer; payment of tax required.

No dealer may possess marijuana or controlled substances upon which a tax is imposed by section 77-4303 unless the tax has been paid on the marijuana or controlled substance as evidenced by an official stamp, label, or other indicium.

Source:Laws 1990, LB 260, § 2.    


77-4303. Imposition of tax; rates.

(1) A tax is hereby imposed on marijuana and controlled substances at the following rates:

(a) On each ounce of marijuana or each portion of an ounce, one hundred dollars;

(b) On each gram or portion of a gram of a controlled substance that is customarily sold by weight or volume, one hundred fifty dollars; or

(c) On each fifty dosage units or portion thereof of a controlled substance that is not customarily sold by weight, five hundred dollars.

(2) For purposes of calculating the tax under this section, marijuana or any controlled substance that is customarily sold by weight or volume shall be measured by the weight of the substance in the dealer's possession. The weight shall be the actual weight, if known, or the estimated weight as determined by the Nebraska State Patrol or other law enforcement agency. Such determination shall be presumed to be the weight of such marijuana or controlled substances for purposes of sections 77-4301 to 77-4316.

(3) The tax shall not be imposed upon a person registered or otherwise lawfully in possession of marijuana or a controlled substance pursuant to Chapter 28, article 4.

Source:Laws 1990, LB 260, § 3;    Laws 1991, LB 773, § 27.


Annotations

77-4304. Stamps, labels, or other indicia; purchase; Tax Commissioner; duties.

(1) Subject to the rules and regulations of the Tax Commissioner, official stamps, labels, or other indicia to be affixed to all marijuana and controlled substances shall be purchased from the Department of Revenue. The purchaser shall pay one hundred percent of face value for each official stamp, label, or other indicium purchased and shall not be required to give his or her name, address, social security number, or other identifying information.

(2) The Tax Commissioner shall adopt a uniform system of providing, affixing, and displaying an official stamp, label, or other indicium for marijuana and controlled substances on which a tax is imposed. Official stamps, labels, or other indicia shall expire six months from the date of issuance.

Source:Laws 1990, LB 260, § 4.    


77-4305. Tax; due and payable; when.

The tax imposed upon marijuana and controlled substances by section 77-4303 shall be due and payable immediately upon acquisition or possession of marijuana and controlled substances in this state by a dealer.

Source:Laws 1990, LB 260, § 5.    


77-4306. Stamps, labels, or other indicia; affixed; when.

If a dealer acquires or ships, transports, or imports into this state marijuana or a controlled substance and if the official stamp, label, or indicium evidencing the payment of the tax has not already been affixed, the dealer shall have it permanently affixed on the marijuana or controlled substance immediately upon acquisition or possession of the marijuana or controlled substance. Each official stamp, label, or other indicium may be used only once.

Source:Laws 1990, LB 260, § 6.    


77-4307. Tax Commissioner; rules and regulations.

The Tax Commissioner shall adopt and promulgate rules and regulations necessary to carry out sections 77-4301 to 77-4316.

Source:Laws 1990, LB 260, § 7;    Laws 1991, LB 773, § 28.


77-4308. Sections, how construed.

Nothing in sections 77-4301 to 77-4316 shall in any manner provide immunity for a dealer from criminal prosecution pursuant to Nebraska law.

Source:Laws 1990, LB 260, § 8;    Laws 1991, LB 773, § 29.


77-4309. Dealer; violations; penalties; statute of limitations.

Any dealer violating sections 77-4301 to 77-4316 shall be subject to a penalty of one hundred percent of the tax in addition to the tax imposed by section 77-4303. The penalty shall be collected as part of the tax.

A dealer distributing or possessing marijuana or a controlled substance without affixing the official stamp, label, or other indicium shall be guilty of a Class IV felony. Notwithstanding any other provision of the criminal laws of this state, an indictment may be found and filed or an information or complaint filed upon any criminal offense specified in this section in the proper court within six years after the commission of such offense.

Source:Laws 1990, LB 260, § 9;    Laws 1991, LB 773, § 30.


Annotations

77-4310. Tax Commissioner; assessment and collection of tax and penalties; duties.

The Tax Commissioner shall (1) based on personal knowledge or information available to the commissioner, assess the tax and applicable penalties upon any dealer subject to tax under section 77-4302 who has not paid the tax when due, (2) mail to the dealer at the dealer's last-known address as shown by the records of the Tax Commissioner or serve in person a written notice of the determination under section 77-4311, (3) demand immediate payment of the tax, and (4) if payment is not immediately made, collect the tax and penalties by any method prescribed in the Uniform State Tax Lien Registration and Enforcement Act as limited by section 77-4312.

Source:Laws 1990, LB 260, § 10.    


Cross References

77-4310.01. Tax proceeds; distribution.

Proceeds of the tax imposed by section 77-4303 shall be remitted to the State Treasurer for credit as follows:

(1) Five percent of such proceeds shall be credited to the Marijuana and Controlled Substances Tax Administration Cash Fund; and

(2) Of the remaining proceeds:

(a) Fifty percent shall be remitted to the respective counties from which the proceeds originated for credit to the County Drug Law Enforcement and Education Fund of each such county. Money remitted to a county pursuant to this subdivision shall be remitted to the county treasurer of such county for credit to such fund. For purposes of this subdivision, county from which the proceeds originated shall mean: (i) If the proceeds result from seizure under the Uniform State Tax Lien Registration and Enforcement Act of property located in a county other than the county in which the dealer resides, the county in which the seizure was made; and (ii) in all other cases, the county in which the dealer resides; and

(b) All remaining funds, including those which did not originate in a county, shall be credited to the Nebraska State Patrol Drug Control and Education Cash Fund.

Source:Laws 1991, LB 773, § 31.


Cross References

77-4310.02. Overpayment of tax; Tax Commissioner; powers and duties; stamps, nonreturnable.

(1) If the Tax Commissioner determines that any tax imposed by sections 77-4301 to 77-4316 has been paid more than once or has been erroneously or illegally collected or computed, the Tax Commissioner shall set forth that fact in his or her records and the amount collected may be refunded to the person by whom it was paid or his or her successors, administrators, or executors.

(2) No stamps that have been issued under such sections by the department can be returned.

(3) The Tax Commissioner may waive all or part of any penalties provided by such sections but may not waive interest on delinquent amounts.

Source:Laws 1991, LB 773, § 38.


77-4310.03. Marijuana and Controlled Substances Tax Administration Cash Fund; created; use; investment.

There is hereby created the Marijuana and Controlled Substances Tax Administration Cash Fund. Money in the fund shall be used by the Tax Commissioner for the purposes of administering, collecting, and enforcing the tax imposed by section 77-4303, except that transfers may be made from the fund to the General Fund at the direction of the Legislature. Any money in the Marijuana and Controlled Substances Tax Administration Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1991, LB 773, § 32; Laws 1994, LB 1066, § 87;    Laws 2009, First Spec. Sess., LB3, § 56.    


Cross References

77-4311. Tax determination; notice; requirements; jeopardy determination; effect.

Notice of a determination that the tax imposed by section 77-4303 is due and owing shall be personally served or mailed to the dealer within six years after the Tax Commissioner knows or has information available to make such determination. A determination that a dealer does not possess an official stamp, label, or other indicium showing that the tax imposed by section 77-4303 has been paid or has not paid the tax imposed by section 77-4303 shall be considered a jeopardy determination. In any proceedings in court brought to enforce payment of taxes and applicable penalties under sections 77-4301 to 77-4316, a jeopardy determination, made with or without notice to the dealer, shall be for all purposes prima facie evidence of the dealer's failure to pay such taxes.

Source:Laws 1990, LB 260, § 11;    Laws 1991, LB 773, § 33.


77-4312. Jeopardy determination; petition for redetermination; procedure; deficiency; interest; seized property; sale; when; procedure; return of property; conditions; injunction; Tax Commissioner; powers.

(1) Any person who receives a notice of jeopardy determination of the tax imposed by section 77-4303 may petition the Tax Commissioner for a redetermination of the amount of the assessed deficiency.

(2) The petition for redetermination shall be filed within ten days of the receipt of the notice of jeopardy determination whenever service is in person or within ten days of the mailing of such notice to the last-known address of the person.

(3) The petition for redetermination shall be in writing and shall state the specific grounds upon which the claim is founded.

(4) The petition for redetermination shall be accompanied by the payment of the tax or suitable security for the payment of the tax.

(5) The consideration of the petition for redetermination shall be made pursuant to the Administrative Procedure Act to the extent the act is not in conflict with sections 77-4301 to 77-4316.

(6) The determination of the amount of the deficiency shall become final and the amount shall be deemed to be assessed on the date provided in subsection (2) of this section if the person fails to file the petition for the redetermination and the appropriate security within the ten-day time period.

(7) When a petition for redetermination and the appropriate security is filed within the ten-day period, the amount of the deficiency shall be deemed to be assessed upon the date the determination of the Tax Commissioner becomes final.

(8) If the amount of the deficiency determined under such sections is not paid upon the receipt of the notice, the deficiency shall accrue interest at the rate specified in section 45-104.02, as such rate may from time to time be adjusted, for the period from the date the tax was due until the date such deficiency is paid.

(9)(a) When a jeopardy determination or any other final determination has been made by the Tax Commissioner, the property seized for collection of the taxes and any penalty shall not be sold until the time has expired for filing an appeal. If an appeal has been filed, no sale shall be made unless the taxes and any penalty remain unpaid for a period of more than thirty days after final determination of the appeal by the district court.

(b) Notwithstanding subdivision (a) of this subsection, seized property may be sold if the taxpayer consents in writing to the sale or the Tax Commissioner determines that the property is perishable or may become greatly reduced in price or value by keeping or that such property cannot be kept without great expense.

(c) The property seized shall be returned by the Tax Commissioner if the owner gives a surety bond equal to the appraised value of the owner's interest in the property, as determined by the Tax Commissioner, or deposits with the Tax Commissioner security in such form and amount as the Tax Commissioner deems necessary to insure payment of the liability but not more than twice the liability.

(d) Notwithstanding any other provision to the contrary, if a levy or sale pursuant to this section would irreparably injure rights in property which the court determines to be superior to rights of the state in such property, the district court may grant an injunction to prohibit the enforcement of such levy or to prohibit such sale.

(e) Any action taken by the Tax Commissioner pursuant to this section shall not constitute an election by the state to pursue a remedy to the exclusion of any other remedy.

(f) After the Tax Commissioner has seized the property of any person, that person may, upon giving forty-eight hours notice to the Tax Commissioner and to the court, bring a claim for equitable relief before the district court for the release of the property to the taxpayer upon such terms and conditions as the court deems equitable.

(10) If the taxpayer ignores all demands for payment, the Tax Commissioner may employ the services of any qualified collection agency or attorney and pay fees for such services out of any money recovered.

Source:Laws 1990, LB 260, § 12;    Laws 1991, LB 773, § 34; Laws 1992, Fourth Spec. Sess., LB 1, § 40;    Laws 1993, LB 161, § 5;    Laws 2012, LB727, § 52.    


Cross References

Annotations

77-4313. Injunction; suit prohibited.

No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by sections 77-4301 to 77-4316.

Source:Laws 1990, LB 260, § 13;    Laws 1991, LB 773, § 35.


77-4314. Tax and penalties; presumption; admissibility of evidence.

The tax and penalties assessed by the Tax Commissioner shall be presumed to be valid and correctly determined and assessed. The burden shall be upon the taxpayer to show their incorrectness or invalidity. Any statement or any other certificate by the Tax Commissioner of the amount of tax and penalties determined or assessed shall be admissible in evidence and shall be prima facie evidence of the facts it contains.

Source:Laws 1990, LB 260, § 14.    


77-4315. Report; confidential; information; inadmissible; when.

Neither the Tax Commissioner nor a public employee may reveal facts contained in a report required by sections 77-4301 to 77-4316. Information contained in any report required by the Tax Commissioner shall not be used against the dealer in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due from the taxpayer making the report. Official stamps, labels, or other indicia denoting payment of the tax imposed by section 77-4303 shall not be used against the dealer in any criminal proceeding.

Source:Laws 1990, LB 260, § 15;    Laws 1991, LB 773, § 36.


Annotations

77-4316. Tax Commissioner; powers; subpoena; enforcement.

For purposes of determining the correctness of any report, determining the amount of tax that should have been paid, determining whether or not the dealer should have made a report or paid taxes, or collecting any taxes under sections 77-4301 to 77-4316, the Tax Commissioner may examine or cause to be examined any books, papers, records, or memoranda that may be relevant to making such determinations, whether the books, papers, records, or memoranda are the property of or in the possession of the dealer or another person. The Tax Commissioner may require the attendance of any person having knowledge or information that may be relevant, compel the production of books, papers, records, or memoranda by persons required to attend, take testimony on matters material to the determination, and administer oaths or affirmations. Upon request of the Tax Commissioner, the judge of any court shall issue a subpoena for the attendance of a witness or the production of books, papers, records, and memoranda. The Tax Commissioner may also issue subpoenas. Disobedience of subpoenas issued under this section shall be punishable by the district court of the county in which the subpoena is issued or, if the subpoena is issued by the Tax Commissioner, by the district court of the county in which the party served with the subpoena is located, in the same manner as contempt of district court.

Source:Laws 1990, LB 260, § 16;    Laws 1991, LB 773, § 37.


77-4401. Act, how cited.

Sections 77-4401 to 77-4407 shall be known and may be cited as the Good Life Transformational Projects Act.

Source:Laws 2023, LB727, § 9.    
Operative Date: June 7, 2023


77-4402. Purpose of act; legislative findings.

(1) The purpose of the Good Life Transformational Projects Act is to promote and develop the general and economic welfare of this state and its communities by providing support for unique Nebraska projects that will attract new industries and employment opportunities and further grow and strengthen Nebraska's retail, entertainment, and tourism industries.

(2) The Legislature finds that it will be beneficial to the economic well-being of the people of this state to encourage transformational development projects within the state that create jobs, infrastructure, and other improvements and attract and retain tourists and college graduates from around the state.

(3) The Legislature further finds that such projects will (a) generate new economic activity, as well as additional state and local taxes from persons residing within and outside the state, (b) create new economic opportunities and jobs for residents, and (c) promote new-to-market retail, entertainment, and dining attractions.

Source:Laws 2023, LB727, § 10.    
Operative Date: June 7, 2023


77-4403. Terms, defined.

For purposes of the Good Life Transformational Projects Act:

(1) Department means the Department of Economic Development; and

(2) Good life district means a district established pursuant to section 77-4405.

Source:Laws 2023, LB727, § 11.    
Operative Date: June 7, 2023


77-4404. Good life district; application; contents; confidential.

(1) Until December 31, 2024, any person may apply to the department to create a good life district. All applications shall be in writing and shall contain:

(a) A description of the proposed project to be undertaken within the good life district, including a description of any existing development, an estimate of the total new development costs for the project, and an estimate of the number of new jobs to be created as a result of the project;

(b) A map identifying the good life district to be used for purposes of the project;

(c) A description of the proposed financing of the project;

(d) Documentation of local financial commitment to support the project, including all public and private resources pledged or committed to the project and including a copy of any operating agreement or lease with substantial users of the project area; and

(e) Sufficient documents, plans, and specifications as required by the department to define the project, including the following:

(i) A statement of how the jobs and taxes obtained from the project will contribute significantly to the economic development of the state and region;

(ii) Visitation expectations and a plan describing how the number of visitors to the good life district will be tracked and reported on an annual basis;

(iii) Any unique qualities of the project;

(iv) An economic impact study, including the anticipated effect of the project on the regional and statewide economies;

(v) Project accountability, measured according to best industry practices;

(vi) The expected return on state and local investment the project is anticipated to produce; and

(vii) A summary of community involvement, participation, and support for the project.

(2) Upon receiving an application, the department shall review the application and notify the applicant of any additional information needed for a proper evaluation of the application.

(3) The application and all supporting information shall be confidential except for the location of the project, the total new development costs estimated for the project, and the number of new jobs estimated to be created as a result of the project.

Source:Laws 2023, LB727, § 12.    
Operative Date: June 7, 2023


77-4405. Good life district; project; approval; eligibility; reduced sales tax rate.

(1) If the department finds that the project described in the application meets the eligibility requirements of this section, the application shall be approved.

(2) A project is eligible if:

(a) The applicant demonstrates that the total new development costs of the project will exceed:

(i) One billion dollars if the project will be located in a city of the metropolitan class;

(ii) Seven hundred fifty million dollars if the project will be located in a city of the primary class;

(iii) Five hundred million dollars if the project will be located in a city of the first class, city of the second class, or village within a county with a population of one hundred thousand inhabitants or more; or

(iv) One hundred million dollars if the project will be located in a city of the first class, city of the second class, or village within a county with a population of less than one hundred thousand inhabitants;

(b) The applicant demonstrates that the project will directly or indirectly result in the creation of:

(i) One thousand new jobs if the project will be located in a city of the metropolitan class;

(ii) Five hundred new jobs if the project will be located in a city of the primary class;

(iii) Two hundred fifty new jobs if the project will be located in a city of the first class, city of the second class, or village within a county with a population of one hundred thousand inhabitants or more; or

(iv) Fifty new jobs if the project will be located in a city of the first class, city of the second class, or village within a county with a population of less than one hundred thousand inhabitants; and

(c)(i) For a project that will be located in a county with a population of one hundred thousand inhabitants or more, the applicant demonstrates that, upon completion of the project, at least twenty percent of sales at the project will be made to persons residing outside the State of Nebraska or the project will generate a minimum of six hundred thousand visitors per year who reside outside the State of Nebraska and the project will attract new-to-market retail to the state and will generate a minimum of three million visitors per year; or

(ii) For a project that will be located in a county with a population of less than one hundred thousand inhabitants, the applicant demonstrates that, upon completion of the project, at least twenty percent of sales at the project will be made to persons residing outside the State of Nebraska.

(3) The applicant must certify that any anticipated diversion of state sales tax revenue will be offset or exceeded by sales tax paid on anticipated development costs, including construction to real property, during the same period.

(4) A project is not eligible if the project includes a licensed racetrack enclosure or an authorized gaming operator as such terms are defined in section 9-1103.

(5) Approval of an application under this section shall establish the good life district as that area depicted in the map accompanying the application as submitted pursuant to subdivision (1)(b) of section 77-4404. Such district shall last for twenty-five years and shall not exceed two thousand acres in size.

(6) Upon establishment of a good life district under this section, any transactions occurring within the district shall be subject to a reduced sales tax rate as provided in section 77-2701.02.

Source:Laws 2023, LB727, § 13.    
Operative Date: June 7, 2023


77-4406. Good life district; terminate; conditions.

The department shall terminate a good life district established pursuant to section 77-4405 if the applicant has not met seventy-five percent of the investment threshold required under subdivision (2)(a) of section 77-4405 within ten years after establishment of such district.

Source:Laws 2023, LB727, § 14.    
Operative Date: June 7, 2023


77-4407. Act; not construed to limit authority of political subdivision.

No provision in the Good Life Transformational Projects Act shall be construed to limit the existing statutory authority of any political subdivision.

Source:Laws 2023, LB727, § 15.    
Operative Date: June 7, 2023


77-4501. Rental company; collect fee; when; use; effect on growth limit on budget; collection.

(1) Except as provided in subsection (6) of this section, rental companies engaged in the business of renting private passenger motor vehicles used to carry fifteen passengers or less for periods of thirty-one days or less shall collect, at the time the vehicle is rented in Nebraska, a fee not to exceed five and seventy-five hundredths percent of each rental contract amount, not including sales tax. For purposes of this section, a vehicle is rented in Nebraska if it is picked up by the renter in Nebraska. The fee shall be computed in accordance with the method used for the sales tax imposed by the state on those charges subject to sales tax. The fee shall not be subject to sales tax. The fee shall be noted in the rental contract and collected in accordance with the terms of the contract. The fee shall be retained by the vehicle owner or the rental company engaged in the business of renting private passenger motor vehicles. Fees collected pursuant to this section shall be used by the vehicle owner or the rental company for reimbursement of the amount of motor vehicle taxes and fees imposed and paid in Nebraska upon the vehicles by the vehicle owner or rental company.

(2) On February 15 of each year, the fees imposed by this section for the preceding calendar year, to the extent the fees exceed the motor vehicle taxes and fees imposed and paid in Nebraska upon the vehicles for the preceding calendar year, shall be due and payable to the county treasurer of the county where the transactions occurred. The fee shall be remitted on forms prescribed by the county treasurer. The county shall allocate and distribute such proceeds in the same manner as the proceeds from motor vehicle taxes are allocated and distributed pursuant to section 60-3,186. The revenue received by the county under this section may be expended for any lawful purpose.

(3) The revenue received by the county under this section shall be included and considered as proceeds of motor vehicle taxes and fees for purposes of any growth limitation on budgets of political subdivisions funded by property taxes.

(4) The fee imposed under this section shall be in addition to any other tax or fee authorized by law to be levied on the business activities described in this section and shall be in addition to the sales tax imposed by the state or any municipality.

(5) The county treasurer, county board, and county sheriff may use any method specified in Chapter 77, article 17, for the collection of property taxes to collect the fee imposed by this section.

(6) A fee shall not be collected if the renter is exempt from the payment of sales tax.

Source:Laws 1993, LB 345, § 79;    Laws 1993, LB 346, § 21;    Laws 1994, LB 1083, § 1;    Laws 1997, LB 271, § 52;    Laws 2005, LB 274, § 279;    Laws 2014, LB251, § 1.    


77-4601. Estimate of General Fund net receipts; certification by Tax Commissioner and Legislative Fiscal Analyst.

On or before July 15 of each year, the Tax Commissioner and the Legislative Fiscal Analyst shall certify the monthly estimate of General Fund net receipts for each month of the current fiscal year. Such certification shall be filed electronically with the Clerk of the Legislature. The certification shall include estimates of gross receipts to the General Fund and refunds for sales, corporate income, individual income, and other miscellaneous receipts and refunds by month. The total of the monthly estimates for the fiscal year shall take into consideration the most recent net receipts forecast provided during a regular legislative session by the Nebraska Economic Forecasting Advisory Board pursuant to section 77-27,158 plus any revisions due to legislation enacted which has an impact on receipts that were not included in the forecast. If the total of monthly estimates so certified is at variance with the estimates of the Nebraska Economic Forecasting Advisory Board, the certification shall include a statement of the specific statistical or economic reasons for the variance.

Source:Laws 1993, LB 38, § 1;    Laws 2013, LB222, § 31.    


77-4602. Actual General Fund net receipts; public statement by Tax Commissioner; Tax Commissioner; duties; transfer of funds; when.

(1) Within fifteen days after the end of each month, the Tax Commissioner shall provide a public statement of actual General Fund net receipts, a comparison of such actual net receipts to the monthly estimated net receipts from the most recent forecast provided by the Nebraska Economic Forecasting Advisory Board pursuant to section 77-27,158, and a comparison of such actual net receipts to the monthly actual net receipts for the same month of the previous fiscal year.

(2) Within fifteen days after the end of each fiscal year, the public statement shall also include (a) a summary of actual General Fund net receipts and estimated General Fund net receipts for the fiscal year as certified pursuant to sections 77-4601 and 77-4603 and (b) a comparison of the actual General Fund net receipts for the fiscal year to the actual General Fund net receipts for the previous fiscal year.

(3)(a) Within fifteen days after the end of fiscal year 2020-21 and each fiscal year thereafter through fiscal year 2022-23, the Tax Commissioner shall determine the balance of the Cash Reserve Fund.

(b) If the balance of the Cash Reserve Fund is less than five hundred million dollars:

(i) The Tax Commissioner shall determine:

(A) Actual General Fund net receipts for the most recently completed fiscal year minus estimated General Fund net receipts for such fiscal year as certified pursuant to sections 77-4601 and 77-4603; and

(B) Actual General Fund net receipts for the most recently completed fiscal year minus one hundred three and one-half percent of actual General Fund net receipts for the prior fiscal year.

(ii) If the amounts calculated under subdivisions (3)(b)(i)(A) and (3)(b)(i)(B) of this section are both positive numbers, the Tax Commissioner shall certify (A) the amount determined under subdivision (3)(b)(i)(A) of this section and (B) fifty percent of the amount determined under subdivision (3)(b)(i)(B) of this section to the State Treasurer. The State Treasurer shall transfer the difference between the two certified amounts to the Cash Reserve Fund.

(iii) If the amount calculated under subdivision (3)(b)(i)(A) of this section is a positive number but the amount calculated under subdivision (3)(b)(i)(B) of this section is a negative number, the Tax Commissioner shall certify the amount determined under subdivision (3)(b)(i)(A) of this section to the State Treasurer and the State Treasurer shall transfer such certified amount to the Cash Reserve Fund.

(c) If the balance of the Cash Reserve Fund is five hundred million dollars or more:

(i) The Tax Commissioner shall determine:

(A) Actual General Fund net receipts for the most recently completed fiscal year minus estimated General Fund net receipts for such fiscal year as certified pursuant to sections 77-4601 and 77-4603; and

(B) Actual General Fund net receipts for the most recently completed fiscal year minus one hundred three and one-half percent of actual General Fund net receipts for the prior fiscal year.

(ii) If the amounts calculated under subdivisions (3)(c)(i)(A) and (3)(c)(i)(B) of this section are both positive numbers, the Tax Commissioner shall certify (A) the amount determined under subdivision (3)(c)(i)(A) of this section and (B) the amount determined under subdivision (3)(c)(i)(B) of this section to the State Treasurer. The State Treasurer shall transfer the difference between the two certified amounts to the Cash Reserve Fund.

(iii) If the amount calculated under subdivision (3)(c)(i)(A) of this section is a positive number but the amount calculated under subdivision (3)(c)(i)(B) of this section is a negative number, the Tax Commissioner shall certify the amount determined under subdivision (3)(c)(i)(A) of this section to the State Treasurer and the State Treasurer shall transfer such certified amount to the Cash Reserve Fund.

(4)(a) Within fifteen days after the end of fiscal year 2023-24 and each fiscal year thereafter, the Tax Commissioner shall determine the following:

(i) Actual General Fund net receipts for the most recently completed fiscal year minus estimated General Fund net receipts for such fiscal year as certified pursuant to sections 77-4601 and 77-4603; and

(ii) Fifty percent of the product of actual General Fund net receipts for the most recently completed fiscal year times the difference between the annual percentage increase in the actual General Fund net receipts for the most recently completed fiscal year and the average annual percentage increase in the actual General Fund net receipts over the twenty previous fiscal years, excluding the year in which the annual percentage change in actual General Fund net receipts is the lowest.

(b) If the number determined under subdivision (4)(a)(i) of this section is a positive number, the Tax Commissioner shall immediately certify the greater of the two numbers determined under subdivision (4)(a) of this section to the director. The State Treasurer shall transfer the certified amount from the General Fund to the Cash Reserve Fund upon certification by the director of such amount. The transfer shall be made according to the following schedule:

(i) An amount equal to the amount determined under subdivision (4)(a)(i) of this section shall be transferred immediately; and

(ii) The remainder, if any, shall be transferred by the end of the subsequent fiscal year.

(c) If the transfer required under subdivision (4)(b) of this section causes the balance in the Cash Reserve Fund to exceed sixteen percent of the total budgeted General Fund expenditures for the current fiscal year, such transfer shall be reduced so that the balance of the Cash Reserve Fund does not exceed such amount.

(d) Nothing in this subsection prohibits the balance in the Cash Reserve Fund from exceeding sixteen percent of the total budgeted General Fund expenditures each fiscal year if the Legislature determines it necessary to prepare for and respond to budgetary requirements which may include, but are not limited to, capital construction projects and responses to emergencies.

Source:Laws 1993, LB 38, § 2;    Laws 1996, LB 1290, § 4;    Laws 2019, LB638, § 1;    Laws 2020, LB1107, § 137;    Laws 2021, LB180, § 1.    


77-4603. Special session of Legislature; new certification required; recertification; when.

(1) If an estimate of General Fund net receipts is changed in a regular or extraordinary meeting of the Nebraska Economic Forecasting Advisory Board and such change results in a special session of the Legislature to revise current fiscal year General Fund appropriations, the Tax Commissioner and the Legislative Fiscal Analyst shall certify the monthly receipt estimates, taking into consideration the most recent estimate of General Fund net receipts made by the Nebraska Economic Forecasting Advisory Board plus legislation enacted which has an impact on receipts that was not included in the forecast. The new monthly certification shall be made by the fifteenth day of the month following the adjournment of the special session of the Legislature.

(2) If an estimate of General Fund net receipts is reduced in a regular or extraordinary meeting of the Nebraska Economic Forecasting Advisory Board, the Tax Commissioner and the Legislative Fiscal Analyst shall recertify the monthly receipt estimates, taking into consideration the most recent estimate of General Fund net receipts made by the Nebraska Economic Forecasting Advisory Board plus legislation enacted which has an impact on receipts that was not included in the forecast. The new monthly certification shall be made by the fifteenth day of the month following the meeting of the Nebraska Economic Forecasting Advisory Board.

(3) The new certified annual and monthly receipt estimates shall be used for the public statements required under subsection (2) of section 77-4602.

Source:Laws 1993, LB 38, § 3;    Laws 1996, LB 1290, § 5;    Laws 2021, LB180, § 2.    


77-4701. Repealed. Laws 1996, LB 891, § 1.

77-4702. Repealed. Laws 1996, LB 891, § 1.

77-4703. Repealed. Laws 1996, LB 891, § 1.

77-4704. Repealed. Laws 1996, LB 891, § 1.

77-4705. Repealed. Laws 1996, LB 891, § 1.

77-4706. Repealed. Laws 1996, LB 891, § 1.

77-4801. Repealed. Laws 1996, LB 898, § 8.

77-4802. Repealed. Laws 1996, LB 898, § 8.

77-4803. Repealed. Laws 1996, LB 898, § 8.

77-4804. Repealed. Laws 1996, LB 898, § 8.

77-4805. Repealed. Laws 1996, LB 898, § 8.

77-4806. Repealed. Laws 1996, LB 898, § 8.

77-4807. Repealed. Laws 1996, LB 898, § 8.

77-4901. Act, how cited.

Sections 77-4901 to 77-4935 shall be known and may be cited as the Quality Jobs Act.

Source:Laws 1995, LB 829, § 1;    Laws 1996, LB 1368, § 1;    Laws 1997, LB 264, § 3;    Laws 1998, LB 1104, § 21.    


77-4902. Policy.

It is the policy of this state to make revisions in its statutory structure if this will encourage both new and existing businesses to relocate to and expand in Nebraska and to provide appropriate inducements to encourage them to do so if this will aid in the economic and population growth of the state and help create better jobs for the citizens of the State of Nebraska and if this can be done in a fiscally sound and effective manner.

Source:Laws 1995, LB 829, § 2.    


77-4903. Definitions, where found.

For purposes of the Quality Jobs Act, the definitions found in sections 77-4904 to 77-4926 shall be used.

Source:Laws 1995, LB 829, § 3.    


77-4904. Additional definitions.

Any term defined in the Nebraska Revenue Act of 1967 and used in the Quality Jobs Act has the same meaning in the Quality Jobs Act unless the context requires a different meaning.

Source:Laws 1995, LB 829, § 4.    


Cross References

77-4905. Agreement, defined.

Agreement means the agreement between the company and the state.

Source:Laws 1995, LB 829, § 5.    


77-4906. Base year, defined.

Base year means the year immediately preceding the year during which the application was submitted.

Source:Laws 1995, LB 829, § 6.    


77-4907. Base-year employee, defined.

Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the company or its predecessors during the base year and who is employed at the project.

Source:Laws 1995, LB 829, § 7.    


77-4908. Board, defined.

Board means the Governor, the State Treasurer, and the chairperson of the Nebraska Investment Council.

Source:Laws 1995, LB 829, § 8.    


Cross References

77-4909. Company, defined.

Company means any person subject to the sales and use taxes and either the income tax imposed by the Nebraska Revenue Act of 1967 or the franchise tax under sections 77-3801 to 77-3807, any corporation, partnership, limited liability company, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, which is, or whose partners, members, or owners are, subject to such taxes, and any other partnership, limited liability company, subchapter S corporation, or joint venture when the partners, owners, shareholders, or members are subject to such taxes.

Source:Laws 1995, LB 829, § 9;    Laws 1997, LB 264, § 4.    


Cross References

77-4910. Company training program, defined.

Company training program means any program developed or operated by or for the benefit of the company which screens, trains, or educates recruits, potential employees, or actual employees of the company, or any combination thereof, in order to enable the recruits or employees to perform employment activities at the project and includes recruitment, screening, customized training, job-specific training, on-the-job training, and generalized training programs.

Source:Laws 1995, LB 829, § 10.    


77-4911. Company workplace safety program, defined.

Company workplace safety program means any program developed by or operated by or for the benefit of the workplace safety of employees employed at the project.

Source:Laws 1995, LB 829, § 11.    


77-4912. Compensation, defined.

Compensation means the wages and other payments subject to withholding for federal income tax purposes.

Source:Laws 1995, LB 829, § 12.    


77-4913. Educational institution training program, defined.

Educational institution training program means any training program established by or operated by any public or private educational institution that provides training or education for recruits, potential employees, or actual employees of the company, or any combination thereof, with regard to employment or potential employment at the project.

Source:Laws 1995, LB 829, § 13.    


77-4914. Employee, defined.

Employee means a person employed at the project.

Source:Laws 1995, LB 829, § 14.    


77-4915. Employee benefit program, defined.

Employee benefit program means health and dental benefits, dependent care, life insurance, disability insurance, or relocation costs provided to or for the benefit of employees, which programs are qualified under the Internal Revenue Code of 1986, as amended.

Source:Laws 1995, LB 829, § 15.    


77-4916. Entitlement period, defined.

Entitlement period is ten years, meaning the year after which the required increases in employment and investment were met or exceeded and the next one hundred eight months.

Source:Laws 1995, LB 829, § 16.    


77-4917. Equivalent employees, defined.

Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year.

Source:Laws 1995, LB 829, § 17.    


77-4918. Investment, defined.

Investment means the value of qualified property incorporated into or used at the project after the date of the application. For qualified property owned by the company, the value is the original cost of the property. For qualified property rented by the company, the value is the average net annual rent multiplied by the number of years of the lease for which the company was originally bound, not to exceed ten years or the end of the third year after the entitlement period, whichever is earlier. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation.

Source:Laws 1995, LB 829, § 18.    


77-4919. Number of new employees, defined.

Number of new employees means the excess of the number of equivalent employees employed at the project during a year over the number of equivalent employees during the base year.

Source:Laws 1995, LB 829, § 19.    


77-4920. Project, defined.

Project means a project described in the Quality Jobs Act and approved by the board.

Source:Laws 1995, LB 829, § 20.    


77-4921. Project year, defined.

Project year means any year or portion of a year during the entitlement period of the project.

Source:Laws 1995, LB 829, § 21.    


77-4922. Qualified business, defined.

Qualified business means any business engaged in the activities listed in subdivisions (1) through (5) of this section or in the storage, warehousing, distribution, transportation, or sale of tangible personal property. Qualified business does not include any business activity in which eighty percent or more of the total sales are sales to the ultimate consumer of food prepared for immediate consumption or are sales to the ultimate consumer of tangible personal property which is not assembled, fabricated, manufactured, or processed by the company or used by the purchaser in any of the following activities:

(1) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(2) The performance of data processing, telecommunication, insurance, or financial services. Financial services, for purposes of this subdivision, shall only include financial services provided by any financial institution subject to tax under sections 77-3801 to 77-3807 or any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission;

(3) The assembly, fabrication, manufacture, or processing of tangible personal property;

(4) The administrative management of any activities, including headquarter facilities, relating to such activity; or

(5) Any combination of the activities listed in this section.

Source:Laws 1995, LB 829, § 22.    


77-4923. Qualified property, defined.

Qualified property means any tangible property of the type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property that will be located and used at the project. Qualified property does not include aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or property that is rented by the qualified company to another person.

Source:Laws 1995, LB 829, § 23.    


77-4924. Related persons, defined.

Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under section 267(b) and (c) of the Internal Revenue Code of 1986, as amended, or section 707(b) of the code.

Source:Laws 1995, LB 829, § 24;    Laws 1997, LB 264, § 5.    


77-4925. Wage benefit credit, defined.

Wage benefit credit means the credit described in the Quality Jobs Act.

Source:Laws 1995, LB 829, § 25;    Laws 1996, LB 1368, § 2.    


77-4926. Year, defined.

Year means the taxable year of the company.

Source:Laws 1995, LB 829, § 26.    


77-4927. Wage benefit credit; calculation; excess withholding; refund.

(1) If a company has entered into an agreement with the state pursuant to section 77-4928, employees who are employed at the project covered by the agreement, other than base-year employees, shall during each project year receive the wage benefit credit in the manner provided in the Quality Jobs Act.

(2) The wage benefit credit shall be paid or applied by the employee for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as designated by the employee or as agreed to by the company and employee.

(3) Except as provided in subsection (4) of this section, the wage benefit credit per employee shall be an amount equal to the Nebraska income tax withholding attributable to the employee's compensation for services rendered in connection with the project for the project year without regard to the credit calculation under subsection (6) of this section.

(4) The wage benefit credit total for the project per year shall not exceed five percent of the total compensation paid by the company in the year to all employees, other than base-year employees, for services rendered in connection with the project. If the total of the wage benefit credit exceeds five percent of the total compensation paid to all employees, other than base-year employees, the withholding in excess of five percent of each employee's compensation shall be returned to the Department of Revenue in the manner provided in section 77-2756.

(5) The wage benefit credit shall be allowed for each project year.

(6) The wage benefit credit shall be withheld by the company from the employee's compensation in the normal manner provided by section 77-2753, except that the amount shall not be required to be paid over to the state under section 77-2756 and shall not constitute part of the trust fund or be owned by the state as provided in section 77-2757, but instead shall, to the extent of attributable tax liability, represent a credit in the calculation of each such employee's tax liability and shall be paid or applied for the programs in the manner that the company and employee have determined as allowed by the act. For purposes of the withholding reporting provisions of sections 77-2754 and 77-2756, the company shall report the wage benefit credit separately to the state and to the employee as a wage benefit credit. Each employee shall be allowed on his or her Nebraska income tax return a nonrefundable credit against the tax imposed by sections 77-2714 to 77-27,123 equal to the wage benefit credit not to exceed (a) his or her income tax liability minus (b) the amount that Nebraska income tax liability would be if the total compensation paid by the company in the taxable year were excluded from the employee's adjusted gross income. The calculation of this nonrefundable credit shall be included with the employee's tax return and reported as determined by the Department of Revenue. If any amount allowable as a wage benefit credit has been through error or otherwise improperly paid to the state, it shall be refunded to the person who paid it upon application for refund filed within three years after payment. If the wage benefit credit withheld by the company exceeds the nonrefundable credit allowed the employee as calculated in this subsection, the company shall refund the difference to the employee. The company may request verification or substantiation of the amount claimed. Such verification or substantiation shall be confidential and used only for the determination of the claim filed by the employee. A company shall notify employees individually in writing at the time the company reports the wage benefit credit to the employee of the right to claim a refund under this subsection by April 1 of each year. The claim for the refund from the company shall be made by September 1 of the year when the employee files his or her tax return or fifteen days after the employee files such tax return, whichever is later. The company shall pay the refund to an employee within thirty days after the date a claim is filed.

Source:Laws 1995, LB 829, § 27;    Laws 1996, LB 1368, § 4.    


77-4927.01. Alternate wage benefit credit; calculation; use.

(1) The policy of the state in adopting the Quality Jobs Act as stated in section 77-4902 is to encourage new businesses to relocate to and existing businesses to expand in Nebraska and to provide appropriate inducements to encourage them to do so. Depending on the nature of the company and its employees, the state recognizes the inducements contained in the act may be more appropriate and administratively more convenient and efficient for the state, the company, and the employees, if the wage benefit credit is charged against the company's income tax rather than individually computed and used against each employee's income tax. Therefor if the company uses the wage benefit credit for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company as otherwise provided for in the act and if the board has approved the project application, then in lieu of the wage benefit credit allowed in section 77-4927, the company shall be allowed a wage benefit credit to be determined, used, and calculated as provided in this section.

(2) If the company has entered into an agreement with the state pursuant to section 77-4928 and if that agreement provides that this section shall apply in lieu of section 77-4927, then the company shall receive the wage benefit credit in the manner provided in this section.

(3) The wage benefit credit shall be paid or applied by the company for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company. Nothing in this section shall be construed to limit the right of an employee or employees subject to a collective-bargaining agreement to negotiate relative to such programs.

(4) The wage benefit credit shall be an amount equal to the percentage specified in subsection (5) of this section multiplied by the amount by which the total compensation paid during each project year to employees of the company while employed at the project exceeds the average compensation paid at the project multiplied by the number of equivalent base-year employees. For purposes of computation of the credit, average compensation means the total compensation paid during each project year divided by the total number of equivalent employees at the project.

(5) The percentage used to determine the wage benefit credit shall be:
If the average compensation for the project year is over But not over Then the credit percentage shall be
$0 $20,000 0%
$20,000 $30,000 3%
$30,000 $40,000 4%
$40,000 5%

(6) The wage benefit credit shall be allowed for each project year.

(7) The wage benefit credit shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credit may be used to reduce the taxpayer's Nebraska income tax liability. The credits shall be applied in the order in which they were first allowed. The credit may be carried over until fully utilized, except that the credit may not be carried over more than eight years after the end of the entitlement period. If a credit is subsequently recaptured under section 77-4929, the credit shall be treated as if it had never been allowed.

(8) The wage benefit credit shall not be transferable.

Source:Laws 1996, LB 1368, § 3.    


77-4927.02. Refund claims; interest not allowable.

For all refund claims filed on or after October 1, 1998, interest shall not be allowable on any refunds paid because of benefits earned under the Quality Jobs Act.

Source:Laws 1998, LB 1104, § 22.    


77-4928. Wage benefit credit; application for agreement; contents; fee; approval.

(1) In order for the employee and company to be eligible for the wage benefit credit, the company shall file an application for an agreement with the board.

(2) The application shall contain:

(a) The exact name of the company and any related companies which will be included in the project;

(b) A statement describing, in detail, the nature of the company's business, including the products sold and respective markets;

(c) A detailed narrative that describes the proposed project, including how the company intends to attain and maintain the job and investment requirements;

(d) A request that the company be considered for approval under the Quality Jobs Act;

(e) If more than one location within this state is to be involved in the project, sufficient documentation to show that the employment and investment at the different locations are interdependent parts of the project plan;

(f) A copy of the corporate authorization for the project;

(g) A copy of the company's most recent financial report, federal income tax return, Nebraska income tax return, Nebraska reconciliation of income tax withheld, and Nebraska sales and use tax identification number;

(h) The number of base-year employees, the expected number of new employees, the expected timing of the hiring of the new employees, the anticipated timing and amounts of new investment in buildings and equipment, and the average salaries expected by category for the new employees to be employed at the project; and

(i) A five-thousand-dollar nonrefundable application fee payable to the Department of Revenue. The fee shall be remitted to the Nebraska Incentives Fund.

(3) The application and all supporting information shall be confidential except for the name of the company, the location of the project, the amounts of increased employment and investment, the result of the net benefit calculations, and whether the application has been approved.

(4) The board shall determine whether to approve the company's application by majority vote based on its determination as to whether the project will sufficiently help enable the state to accomplish the purposes of the Quality Jobs Act. The board shall be governed by and shall take into consideration all of the following factors in making its determination:

(a) The timing, number, wage levels, employee benefit package, and types of new jobs to be created by the project;

(b) The type of industry in which the company and the project would be engaged;

(c) The timing, amount, and types of investment in qualified property to be made at the project; and

(d) Whether the board believes the project would occur in this state regardless of whether the application was approved.

(5) The board shall notify the company in writing as to whether it has approved or not approved the application. The board shall decide and mail such notice within thirty days after receipt of the application whether it approves or disapproves the application, unless such time is extended by mutual written consent of the board and the company.

(6) A project shall be considered eligible under the act and may be approved by the board only if the application defines a project consistent with the legislative purposes contained in section 77-4902 in one or more qualified business activities within this state that will result in (a) the investment in qualified property of at least fifty million dollars and the hiring of a number of new employees of at least five hundred or (b) the investment in qualified property of at least one hundred million dollars and the hiring of a number of new employees of at least two hundred fifty. The new investment and employment shall occur within seven years, meaning by the end of the sixth year after the end of the year the application was filed, and shall be maintained for the entire entitlement period. These thresholds shall constitute the required levels of employment and investment for purposes of the act.

(7) If the project application is approved by the board, the company and the state shall enter into a written agreement, which shall be executed on behalf of the state by the Tax Commissioner. In the agreement the company shall agree to complete the project and the state shall designate the approved plans of the company as a project and, in consideration of the company's agreement, agree to allow the wage benefit credit as provided for in the act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall contain such terms and conditions as the board shall specify in order to carry out the legislative purposes of the act. The agreement shall contain provisions to allow the Department of Revenue to verify that the required levels of employment have been attained and maintained.

(8) The address of the board shall be the address of the Department of Revenue.

Source:Laws 1995, LB 829, § 28;    Laws 1998, LB 939, § 1;    Laws 2008, LB914, § 19.    


Annotations

77-4929. Wage benefit credit; recapture or disallowance; interest and penalties.

(1) If the company fails either to meet the required levels of employment or investment for the project by the end of the sixth year after the end of the year the application was filed for such project or to utilize such project in a qualified business at or above the required levels of employment and investment required in the Quality Jobs Act for the entire entitlement period, all or a portion of the wage benefit credit shall be recaptured directly by the state from the company or shall be disallowed. In no event shall any wage benefit credit be required to be paid back directly or indirectly by the employees, but instead shall be paid by the company.

(2) The recapture or disallowance shall be as follows:

(a) In the case of a company which has failed to meet the required levels within the required time period, all wage benefit credits shall be disallowed, and if any have been received, they shall be recaptured or paid by the company to the state; and

(b) In the case of a company which has failed to maintain the project at the required levels of employment and investment for the entire entitlement period: (i) No wage benefit credits shall be allowed, and if already allowed shall be recaptured, for the actual year or years in which the required levels of employment or investment were not maintained; (ii) for wage benefit credits allowed in prior years, one-tenth of the credits shall be recaptured from the company for each year the required levels of employment or investment were not maintained; and (iii) as to wage benefits credits for future years, one-tenth of the credits shall not be allowed for each year the required levels of employment or investment were not maintained in previous years.

(3) Any amounts required to be recaptured shall be deemed to be an underpayment of tax, shall be immediately due and payable, and shall constitute a lien on the assets of the company. When wage benefit credits were received in more than one year, the credits received in the most recent year shall be recovered first and then the credits received in earlier years up to the extent of the required recapture.

(4) Interest and penalties accrue as follows:

(a) In the case of a company which has failed to meet the required levels within the required time period, interest accrues from the time the withholding should have been returned to the state;

(b) In the case of a company which has failed to maintain the project at the required levels of employment and investment for the entire entitlement period, interest first accrues from the time of the due date for the return for the year in which the company failed to maintain the required levels; and

(c) Penalties do not accrue until ninety days after the requirement for recapture or disallowance becomes known or should have become known to the company.

(5) The recapture or disallowance required by this section may be waived by the board if the board finds the failure to attain or maintain the required levels of employment or investment was caused by unavoidable circumstances such as an act of God or national emergency.

Source:Laws 1995, LB 829, § 29;    Laws 1998, LB 939, § 2.    


77-4930. Transfer of project.

A project covered by an agreement may be transferred in its entirety by sale or lease to another person or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended. The acquiring persons shall be entitled to the same benefits as the original company and shall be subject to the same obligations, including recapture and disallowance, as the original company.

Source:Laws 1995, LB 829, § 30.    


77-4931. Transactions and activities excluded.

The following transactions or activities shall not create any investment, result in an increase in the number of new employees, or create any wage benefit credits under the Quality Jobs Act except as specifically allowed by this section:

(1) The acquisition of a business located in this state which is continued by the company and which was operated in this state during the three hundred sixty-six days prior to the date of application or the date of acquisition, whichever is later. All of the employees of the acquired business during such period shall be considered base-year employees. Any investment in the acquisition of such business shall be considered as being made before the date of application;

(2) The moving of a business from one location in this state to another, which business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such three hundred sixty-six days shall be considered base-year employees;

(3) The purchase or lease of any property which was previously owned by the company or a related person. The first purchase by either the company or a related person shall be treated as investment if the item was first placed in service in this state after the date of the application;

(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of the meeting of any required levels of investment under the agreement;

(5) Any purchase or lease of property from a related person, except that the company will be allowed benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the company; and

(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in this state.

Source:Laws 1995, LB 829, § 31.    


77-4932. Rules and regulations.

The Department of Revenue, in consultation with the Governor and the Department of Economic Development, may, but is not required to, adopt and promulgate all rules and regulations determined by the Tax Commissioner in his or her discretion to be necessary or appropriate to carry out the purposes of the Quality Jobs Act.

Source:Laws 1995, LB 829, § 32;    Laws 2001, LB 620, § 47.    


77-4933. Report; contents; joint hearing.

(1) The Department of Revenue shall submit electronically an annual report to the Legislature no later than October 31 of each year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The report shall list (a) the agreements which have been signed during the previous fiscal year, (b) the agreements which are still in effect, (c) the identity of each company, and (d) the location of each project. The department shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) The report shall also state by industry group (a) the amount of wage benefit credits allowed under the Quality Jobs Act, (b) the number of direct jobs created at the project, (c) the amount of direct capital investment under the act, (d) the estimated wage levels of jobs created by the companies at the projects, (e) the estimated indirect jobs and investment created on account of the projects, and (f) the projected future state and local revenue gains and losses from all revenue sources on account of the direct and indirect jobs and investment created on account of the project.

(3) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 1995, LB 829, § 33;    Laws 2007, LB223, § 27;    Laws 2012, LB782, § 139;    Laws 2013, LB612, § 5;    Laws 2022, LB1150, § 6.    


77-4934. Act; applicability.

The Quality Jobs Act applies to applications filed, board actions taken, and agreements entered into on or after February 1, 1995.

Source:Laws 1995, LB 829, § 34.    


77-4934.01. Changes to act; applicability.

Section 77-4927.01 and the changes made to sections 77-4901 and 77-4925 by Laws 1996, LB 1368, apply to any agreement entered into under the Quality Jobs Act after July 19, 1996.

The changes made to sections 77-4928 and 77-4929 by Laws 1998, LB 939, apply to all applications filed on or after January 1, 1998. For all applications filed prior to such date, the provisions of the Quality Jobs Act as they existed immediately prior to such date apply.

Source:Laws 1996, LB 1368, § 5;    Laws 1998, LB 939, § 3.    


77-4934.02. Laws 1997 changes to act; applicability.

The changes made in sections 77-4901, 77-4909, and 77-4924 by Laws 1997, LB 264, apply to investments made or employment on or after January 1, 1997, and for all agreements in effect on or after January 1, 1997.

Source:Laws 1997, LB 264, § 6.    


77-4935. Filing of applications; limitation.

There shall be no project applications filed on or after February 1, 2000, without further authorization of the Legislature, except that all project applications and all project agreements pending, approved, or entered into before such date shall continue in full force and effect.

Source:Laws 1995, LB 829, § 35;    Laws 1997, LB 344, § 3.    


77-5001. Act, how cited.

Sections 77-5001 to 77-5031 shall be known and may be cited as the Tax Equalization and Review Commission Act.

Source:Laws 1995, LB 490, § 1;    Laws 1997, LB 270, § 100;    Laws 1997, LB 397, § 34;    Laws 1998, LB 1104, § 23;    Laws 2003, LB 291, § 4;    Laws 2004, LB 973, § 46;    Laws 2011, LB384, § 20.    


77-5002. Terms, defined.

For purposes of the Tax Equalization and Review Commission Act:

(1) Commission means the Tax Equalization and Review Commission;

(2) Commissioner means a member of the commission; and

(3) Special master means a person appointed by the commission pursuant to section 77-5009.

Source:Laws 1995, LB 490, § 2.    


77-5003. Tax Equalization and Review Commission; created; commissioners; term.

(1) The Tax Equalization and Review Commission is created. The Tax Commissioner has no supervision, authority, or control over the actions or decisions of the commission relating to its duties prescribed by law. Beginning July 1, 2023, the commission shall have four commissioners, one commissioner from each congressional district and one at-large commissioner, with terms as provided in subsection (2) of this section. All commissioners shall be appointed by the Governor with the approval of a majority of the members of the Legislature.

(2) The term of the commissioner from district 1 expires January 1, 2028, the term of the commissioner from district 2 expires January 1, 2024, the term of the commissioner from district 3 expires January 1, 2026, and the term of the at-large commissioner expires January 1, 2028. After the terms of the commissioners are completed as provided in this subsection, each subsequent term shall be for six years beginning and ending on January 1 of the applicable year. Vacancies occurring during a term shall be filled by appointment for the unexpired term. Upon the expiration of his or her term of office, a commissioner shall continue to serve until his or her successor has been appointed.

(3) The commission shall designate pursuant to rule and regulation its chairperson and vice-chairperson on a two-year, rotating basis.

(4) A commissioner may be removed by the Governor for misfeasance, malfeasance, or willful neglect of duty or other cause after notice and a public hearing unless notice and hearing are expressly waived in writing by the commissioner.

Source:Laws 1995, LB 490, § 3;    Laws 1998, LB 1104, § 24;    Laws 2001, LB 465, § 3;    Laws 2003, LB 291, § 5;    Laws 2007, LB167, § 4;    Laws 2011, LB384, § 21;    Laws 2023, LB243, § 14.    
Operative Date: July 1, 2023


77-5004. Commissioner; qualifications; conflict of interests; continuing education; expenses; mileage; salaries.

(1) Each commissioner shall be a qualified voter and resident of the state and a domiciliary of the district from which he or she is appointed.

(2) Each commissioner shall devote his or her full time and efforts to the discharge of his or her duties and shall not hold any other office under the laws of this state, any city or county in this state, or the United States Government while serving on the commission. Each commissioner shall possess:

(a) Appropriate knowledge of terms commonly used in or related to real property appraisal and of the writing of appraisal reports;

(b) Adequate knowledge of depreciation theories, cost estimating, methods of capitalization, and real property appraisal mathematics;

(c) An understanding of the principles of land economics, appraisal processes, and problems encountered in the gathering, interpreting, and evaluating of data involved in the valuation of real property, including complex industrial properties and mass appraisal techniques;

(d) Knowledge of the law relating to taxation, civil and administrative procedure, due process, and evidence in Nebraska;

(e) At least thirty hours of successfully completed class hours in courses of study, approved by the Real Property Appraiser Board, which relate to appraisal and which include the fifteen-hour National Uniform Standards of Professional Appraisal Practice Course. If a commissioner has not received such training prior to his or her appointment, such training shall be completed within one year after appointment; and

(f) Such other qualifications and skills as reasonably may be requisite for the effective and reliable performance of the commission's duties.

(3) At least one commissioner shall possess the certification or training required to become a licensed residential real property appraiser as set forth in section 76-2230.

(4) At least two commissioners shall have been engaged in the practice of law in the State of Nebraska for at least five years, which may include prior service as a judge, and shall be currently admitted to practice before the Nebraska Supreme Court. The attorney commissioners shall be presiding hearing officers for commission proceedings involving appeal hearings and other proceedings involving panels of more than one commissioner.

(5) No commissioner or employee of the commission shall hold any position of profit or engage in any occupation or business interfering with or inconsistent with his or her duties as a commissioner or employee. A person is not eligible for appointment and may not hold the office of commissioner or be appointed by the commission to or hold any office or position under the commission if he or she holds any official office or position.

(6) Each commissioner shall annually attend a seminar or class of at least two days' duration that is:

(a) Sponsored by a recognized assessment or appraisal organization, in each of these areas: Utility and railroad appraisal; appraisal of complex industrial properties; appraisal of other hard to assess properties; and mass appraisal, residential or agricultural appraisal, or assessment administration; or

(b) Pertaining to management, law, civil or administrative procedure, or other knowledge or skill necessary for performing the duties of the office.

(7) Each commissioner shall within two years after his or her appointment attend at least thirty hours of instruction that constitutes training for judges or administrative law judges.

(8) The commissioners shall be considered employees of the state for purposes of sections 81-1320 to 81-1328 and 84-1601 to 84-1615.

(9) The commissioners shall be reimbursed as prescribed in sections 81-1174 to 81-1177 for expenses in the performance of their official duties pursuant to the Tax Equalization and Review Commission Act.

(10) Due to the domicile requirements of subsection (1) of this section and subsection (1) of section 77-5003, each commissioner shall be reimbursed for mileage at the rate provided in section 81-1176 for actual round trip travel from the commissioner's residence to the state office building described in section 81-1108.37 or to the location of any hearing or other official business of the commission. Reimbursements under this subsection shall be made from the Tax Equalization and Review Commission Cash Fund.

(11) The salary for commissioners serving as a presiding hearing officer for commission hearings and proceedings involving a panel of more than one commissioner shall be in an amount equal to eighty-five percent of the salary set for the Chief Justice and judges of the Supreme Court. The salary for commissioners not serving as a presiding hearing officer for commission hearings or proceedings involving a panel of more than one commissioner shall be in an amount equal to seventy percent of the salary set for the Chief Justice and judges of the Supreme Court.

Source:Laws 1995, LB 490, § 4;    Laws 1996, LB 1038, § 2;    Laws 1999, LB 32, § 1;    Laws 2001, LB 170, § 19;    Laws 2001, LB 465, § 4;    Laws 2002, LB 994, § 28;    Laws 2003, LB 292, § 15;    Laws 2004, LB 973, § 47;    Laws 2006, LB 778, § 73;    Laws 2007, LB186, § 25;    Laws 2008, LB965, § 20;    Laws 2010, LB931, § 25;    Laws 2011, LB384, § 22;    Laws 2020, LB4, § 1;    Laws 2020, LB381, § 85;    Laws 2023, LB243, § 15.    
Operative Date: July 1, 2023


77-5005. Commission; meetings; quorum; orders.

(1) Within ten days after appointment, the commissioners shall meet at their office in Lincoln, Nebraska, and enter upon the duties of their office.

(2) A majority of the commission shall at all times constitute a quorum to transact business, and one vacancy shall not impair the right of the remaining commissioners to exercise all the powers of the commission.

(3) Any investigation, inquiry, or hearing held or undertaken by the commission may be held or undertaken by a single commissioner in those appeals designated for hearing pursuant to section 77-5015.02.

(4) All investigations, inquiries, hearings, and decisions of a single commissioner and every order made by a single commissioner shall be deemed to be the order of the commission, except as provided in subsection (6) of section 77-5015.02. The full commission, on an application made within thirty days after the date of an order, may grant a rehearing and determine de novo any decisions of or orders made by the commission. The commission, on an application made within thirty days after the date of an order issued after a hearing by a single commissioner, except for an order dismissing an appeal or petition for failure of the appellant or petitioner to appear at a hearing on the merits, shall grant a rehearing on the merits before the commission. The thirty-day filing period for appeals under subsection (2) of section 77-5019 shall be tolled while a motion for rehearing is pending.

(5) All hearings or proceedings of the commission shall be open to the public.

(6) The Open Meetings Act applies only to hearings or proceedings of the commission held pursuant to the rulemaking authority of the commission.

Source:Laws 1995, LB 490, § 5;    Laws 1998, LB 1104, § 25;    Laws 2001, LB 465, § 5;    Laws 2003, LB 291, § 6;    Laws 2004, LB 821, § 23;    Laws 2005, LB 15, § 7;    Laws 2011, LB384, § 23.    


Cross References

77-5006. Office space.

The state shall furnish the commission and its commissioners with appropriate office space in Lincoln, Nebraska, together with suitable equipment, furniture, and supplies.

Source:Laws 1995, LB 490, § 6.    


77-5007. Commission; powers and duties.

The commission has the power and duty to hear and determine appeals of:

(1) Decisions of any county board of equalization equalizing the value of individual tracts, lots, or parcels of real property so that all real property is assessed uniformly and proportionately;

(2) Decisions of any county board of equalization granting or denying tax-exempt status for real or personal property or an exemption from motor vehicle taxes and fees;

(3) Decisions of the Tax Commissioner determining the taxable property of a railroad company, car company, public service entity, or air carrier within the state;

(4) Decisions of the Tax Commissioner determining adjusted valuation pursuant to section 79-1016;

(5) Decisions of any county board of equalization on the valuation of personal property or any penalties imposed under sections 77-1233.04 and 77-1233.06;

(6) Decisions of any county board of equalization on claims that a levy is or is not for an unlawful or unnecessary purpose or in excess of the requirements of the county;

(7) Decisions of any county board of equalization granting or rejecting an application for a homestead exemption;

(8) Decisions of the Department of Motor Vehicles determining the taxable value of motor vehicles pursuant to section 60-3,188;

(9) Decisions of the Tax Commissioner made under section 77-1330;

(10) Any other decision of any county board of equalization;

(11) Any other decision of the Tax Commissioner regarding property valuation, exemption, or taxation;

(12) Decisions of the Tax Commissioner pursuant to section 77-3520;

(13) Final decisions of a county board of equalization appealed by the Tax Commissioner or Property Tax Administrator pursuant to section 77-701;

(14) Determinations of the Rent-Restricted Housing Projects Valuation Committee regarding the capitalization rate to be used to value rent-restricted housing projects pursuant to section 77-1333 or the requirement under such section that an income-approach calculation be used by county assessors to value rent-restricted housing projects;

(15) The requirement under section 77-1314 that the income approach, including the use of a discounted cash-flow analysis, be used by county assessors; and

(16) Any other decision, determination, action, or order from which an appeal to the commission is authorized.

The commission has the power and duty to hear and grant or deny relief on petitions.

Source:Laws 1995, LB 490, § 7;    Laws 1996, LB 1038, § 3;    Laws 1997, LB 270, § 102;    Laws 1997, LB 397, § 35;    Laws 1998, LB 306, § 40;    Laws 1999, LB 140, § 2;    Laws 1999, LB 194, § 33;    Laws 2001, LB 170, § 20;    Laws 2004, LB 973, § 48;    Laws 2005, LB 15, § 8;    Laws 2005, LB 261, § 8;    Laws 2005, LB 274, § 280;    Laws 2007, LB334, § 96;    Laws 2010, LB877, § 7;    Laws 2011, LB384, § 24;    Laws 2014, LB191, § 22;    Laws 2015, LB356, § 2.    


Annotations

77-5007.01. Appeals by county assessor; appointment of attorney.

In appeals by a county assessor in his or her official capacity pursuant to section 77-5007, the county assessor may request that the district court appoint an attorney to represent the county assessor before the commission. Upon a showing of good cause, the district court may make such an appointment by an order to be entered upon the minutes of the court. Any attorney so appointed shall receive no compensation from the county except as provided for in section 23-1204.01.

Source:Laws 1998, LB 1104, § 26.    


77-5008. Commission; writs of mandamus; costs.

In addition to its other powers and duties, the commission may issue writs of mandamus compelling compliance with its orders and compelling the Tax Commissioner to enforce its orders and may charge the party which has not complied with the commission's orders with costs borne by the Tax Commissioner.

Source:Laws 1995, LB 490, § 8;    Laws 2007, LB334, § 97;    Laws 2011, LB384, § 25.    


77-5009. Personnel; special masters; referees.

(1) The commission may employ legal, clerical, and other assistants as may be necessary to carry out the powers and duties of the commission.

(2)(a) For purposes of finding facts or conducting an investigation on behalf of the commission with regard to any matters relating to taxation or assessment, the commission may appoint by an order in writing a special master or special masters whose duties are prescribed in the order, except that the duties of a special master shall not include the determination of conclusions of law or the final disposition of any case or controversy.

(b) Special masters may be paid a salary or fee in the discretion of the commission. If a salary is paid, the amount paid shall be fixed by the commission, and if a fee is paid, the amount paid shall be in accordance with the value of the service rendered and shall be agreed upon and approved by the commission before the special master renders service under his or her appointment.

(c) The claim for services rendered shall be certified by the commission and paid as provided by law for other claims against the state.

(3) In the discharge of his or her duties, a special master shall have all the investigative and factfinding powers of the commission.

(4)(a) The commission may conduct a number of factfindings or investigations contemporaneously through different special masters and may delegate to a special master the taking of all testimony bearing upon any investigation or hearing.

(b) The decision of the commission shall be based upon its examination of all testimony and records.

(c) The recommendations made by any special master shall be advisory only and shall not preclude the taking of further testimony if the commission orders further investigation.

(5)(a) For purposes of mediating valuation disputes between the county and the owner of the property, the commission by order may also contract with or appoint a referee or referees. The purpose of the referee is to meet with the parties and facilitate agreement on facts and issues prior to the hearing on the appeal. The referee may not be called as a witness in a hearing on the merits nor may evidence of any statements made by the parties or the referee pertaining to or at the referee meeting be received by the commission in a hearing on the merits. If the parties fail to resolve their differences, a hearing on the merits of the appeal shall be held before the commission. If the parties resolve their differences, the commission shall enter an order that reflects the agreement of the parties.

(b) Referees may be paid a salary or fee in the discretion of the commission. If a salary is paid, the amount paid shall be fixed by the commission, and if a fee is paid, the amount paid shall be in accordance with the value of the service rendered and shall be agreed upon and approved by the commission before the referee renders service under his or her appointment.

(c) The claim for services rendered shall be certified by the commission and paid as provided by law for other claims against the state.

Source:Laws 1995, LB 490, § 9;    Laws 1998, LB 1104, § 27;    Laws 2000, LB 968, § 74;    Laws 2001, LB 465, § 6;    Laws 2006, LB 808, § 41.    


77-5010. Political subdivisions; levy not restricted.

County boards, city councils, school boards, and all other bodies legally authorized to make levies are free to make the rate of levy for their respective political subdivisions or municipalities at any amount not prohibited by the Constitution of Nebraska or the laws of the state.

Source:Laws 1995, LB 490, § 10.    


77-5011. Chairperson; powers and duties.

The chairperson may call special meetings of the commission at such times as its business requires. The chairperson may also administer oaths and affirmations and sign all orders, certificates, and process in the name of the commission. The chairperson shall attest all orders, certificates, and process with the official seal of the commission. In the absence of the chairperson the vice-chairperson may perform the duties of the chairperson. Orders, certificates, and process under the official seal of the commission may be enforced by the district court for Lancaster County.

Source:Laws 1995, LB 490, § 11;    Laws 1997, LB 397, § 36;    Laws 2003, LB 291, § 7;    Laws 2007, LB167, § 5.    


77-5012. Repealed. Laws 2001, LB 170, § 30.

77-5013. Commission; jurisdiction; time for filing; filing fee.

(1) The commission obtains exclusive jurisdiction over an appeal or petition when:

(a) The commission has the power or authority to hear the appeal or petition;

(b) An appeal or petition is timely filed;

(c) The filing fee, if applicable, is timely received and thereafter paid; and

(d) In the case of an appeal, a copy of the decision, order, determination, or action appealed from, or other information that documents the decision, order, determination, or action appealed from, is timely filed.

Only the requirements of this subsection shall be deemed jurisdictional.

(2) A petition, an appeal, or the information required by subdivision (1)(d) of this section is timely filed and the filing fee, if applicable, is timely received if placed in the United States mail, postage prepaid, with a legible postmark for delivery to the commission, or received by the commission, on or before the date specified by law for filing the appeal or petition. If no date is otherwise provided by law, then an appeal shall be filed within thirty days after the decision, order, determination, or action appealed from is made.

(3) Except as provided in subsection (4) of this section, filing fees shall be as follows:

(a) For each appeal or petition regarding the taxable value of a parcel of real property, the filing fee shall be:

(i) Forty dollars if the taxable value of the parcel is less than two hundred fifty thousand dollars;

(ii) Fifty dollars if the taxable value of the parcel is at least two hundred fifty thousand dollars but less than five hundred thousand dollars;

(iii) Sixty dollars if the taxable value of the parcel is at least five hundred thousand dollars but less than one million dollars; or

(iv) Eighty-five dollars if the taxable value of the parcel is at least one million dollars; or

(b) For any other appeal or petition filed with the commission, the filing fee shall be forty dollars.

(4) No filing fee shall be required for an appeal by a county assessor, the Tax Commissioner, or the Property Tax Administrator acting in his or her official capacity or a county board of equalization acting in its official capacity.

(5) The form and requirements for execution of an appeal or petition may be specified by the commission in its rules and regulations.

Source:Laws 1995, LB 490, § 13;    Laws 1998, LB 1104, § 28;    Laws 2001, LB 170, § 21;    Laws 2004, LB 973, § 49;    Laws 2010, LB877, § 8;    Laws 2020, LB4, § 2.    


Annotations

77-5014. Repealed. Laws 2007, LB 167, § 13.

77-5015. Appeals; hearing; notice.

In any case appealed to the commission all parties shall be afforded an opportunity for hearing after reasonable notice. The notice shall state the time and place of the hearing. Opportunity shall be afforded all parties to present evidence and argument. The commission shall prepare an official record, which includes testimony and exhibits, in each case, but it shall not be necessary to transcribe the record of the proceedings unless requested for purposes of rehearing, in which event the transcript and record shall be furnished by the commission upon request and tender of the cost of preparation. Informal disposition may also be made of any case by stipulation, agreed settlement, consent order, or default.

Source:Laws 1995, LB 490, § 15;    Laws 1999, LB 140, § 3;    Laws 2003, LB 291, § 8;    Laws 2004, LB 973, § 50;    Laws 2011, LB384, § 26.    


Annotations

77-5015.01. Repealed. Laws 2020, LB4, § 4.

77-5015.02. Single commissioner hearing; evidence; record; rehearing.

(1) A single commissioner may hear an appeal and cross appeal and appeals and cross appeals consolidated with any such appeal and cross appeal when:

(a) The taxable value of each parcel is two million dollars or less as determined by the county board of equalization; and

(b) The appeal and cross appeal has been designated for hearing pursuant to this section by the chairperson of the commission or in such manner as the commission may provide in its rules and regulations.

(2) A proceeding held before a single commissioner shall be informal. The usual common-law or statutory rules of evidence, including rules of hearsay, shall not apply, and the commissioner may consider and utilize all matters presented at the proceeding in making his or her determination.

(3) Any party to an appeal designated for hearing before a single commissioner pursuant to this section may, prior to a hearing, elect in writing to have the appeal heard by the commission. The commissioner conducting a proceeding pursuant to this section may at any time designate the appeal for hearing by the commission.

(4) Documents necessary to establish jurisdiction of the commission shall constitute the record of a proceeding before a single commissioner. No recording shall be made of a proceeding before a single commissioner.

(5) A party to a proceeding before a single commissioner may request a rehearing pursuant to section 77-5005.

(6) An order entered by a single commissioner pursuant to this section may not be appealed pursuant to section 77-5019 or any other provision of law.

(7) Subdivisions (3), (6), (8), (9), (10), (11), and (12) of section 77-5016 apply to proceedings before a single commissioner.

Source:Laws 2011, LB384, § 28;    Laws 2023, LB243, § 16.    
Operative Date: July 1, 2023


77-5016. Hearing or proceeding; commission; powers and duties; false statement; penalty; costs.

Any hearing or proceeding of the commission shall be conducted as an informal hearing unless a formal hearing is granted as determined by the commission according to its rules and regulations. In any hearing or proceeding heard by the commission:

(1) The commission may admit and give probative effect to evidence which possesses probative value commonly accepted by reasonably prudent persons in the conduct of their affairs excluding incompetent, irrelevant, immaterial, and unduly repetitious evidence and shall give effect to the privilege rules of evidence in sections 27-501 to 27-513 but shall not otherwise be bound by the usual common-law or statutory rules of evidence except during a formal hearing. Any party to an appeal filed under section 77-5007 may request a formal hearing by delivering a written request to the commission not more than thirty days after the appeal is filed. The requesting party shall be liable for the payment of fees and costs of a court reporter pending a final decision. The commission shall be bound by the rules of evidence applicable in district court in any formal hearing held by the commission. Fees and costs of a court reporter shall be paid by the party or parties against whom a final decision is rendered, and all other costs shall be allocated as the commission may determine;

(2) The commission may administer oaths, issue subpoenas, and compel the attendance of witnesses and the production of any papers, books, accounts, documents, statistical analysis, and testimony. The commission may adopt and promulgate necessary rules for discovery which are consistent with the rules adopted by the Supreme Court pursuant to section 25-1273.01;

(3) The commission may consider and utilize the provisions of the Constitution of the United States, the Constitution of Nebraska, the laws of the United States, the laws of Nebraska, the Code of Federal Regulations, the Nebraska Administrative Code, any decision of the several courts of the United States or the State of Nebraska, and the legislative history of any law, rule, or regulation, without making the document a part of the record. The commission may without inclusion in the record consider and utilize published treatises, periodicals, and reference works pertaining to the valuation or assessment of real or personal property or the meaning of words and phrases if the document is identified in the commission's rules and regulations;

(4) All evidence, other than that described in subdivision (3) of this section, including records and documents in the possession of the commission of which it desires to avail itself, shall be offered and made a part of the record in the case. No other factual information or evidence other than that set forth in this section shall be considered in the determination of the case. Documentary evidence may be received in the form of copies or excerpts or by incorporation by reference;

(5) Every party shall have the right of cross-examination of witnesses who testify and shall have the right to submit rebuttal evidence;

(6) The commission may take notice of judicially cognizable facts and in addition may take notice of general, technical, or scientific facts within its specialized knowledge or statistical information regarding general levels of assessment within a county or a class or subclass of real property within a county and measures of central tendency within such county or classes or subclasses within such county which have been made known to the commission. Parties shall be notified either before or during the hearing or by reference in preliminary reports or otherwise of the material so noticed. They shall be afforded an opportunity to contest the facts so noticed. The commission may utilize its experience, technical competence, and specialized knowledge in the evaluation of the evidence presented to it;

(7) Any person testifying under oath at a hearing who knowingly and intentionally makes a false statement to the commission or its designee is guilty of perjury. For the purpose of this section, perjury is a Class I misdemeanor;

(8) The commission may determine any question raised in the proceeding upon which an order, decision, determination, or action appealed from is based. The commission may consider all questions necessary to determine taxable value of property as it hears an appeal or cross appeal;

(9) In all appeals, excepting those arising under section 77-1606, if the appellant presents no evidence to show that the order, decision, determination, or action appealed from is incorrect, the commission shall deny the appeal. If the appellant presents any evidence to show that the order, decision, determination, or action appealed from is incorrect, such order, decision, determination, or action shall be affirmed unless evidence is adduced establishing that the order, decision, determination, or action was unreasonable or arbitrary;

(10) If the appeal concerns a decision by the county board of equalization that property is, in whole or in part, exempt from taxation, the decision to be rendered by the commission shall only determine the exemption status of the property. The decision shall not determine the taxable value of the property unless stipulated by the parties according to subsection (2) of section 77-5017;

(11) If the appeal concerns a decision by the county board of equalization that property owned by the state or a political subdivision is or is not exempt and there has been no final determination of the value of the property, the decision to be rendered by the commission shall only determine the exemption status of the property. The decision shall not determine the taxable value of the property unless stipulated by the parties according to subsection (2) of section 77-5017;

(12) The costs of any appeal, including the costs of witnesses, may be taxed by the commission as it deems just, except costs payable by the appellant pursuant to section 77-1510.01, unless (a) the appellant is the county assessor or county clerk in which case the costs shall be paid by the county or (b) the appellant is the Tax Commissioner or Property Tax Administrator in which case the costs shall be paid by the state;

(13) The commission shall deny relief to the appellant or petitioner in any hearing or proceeding unless a majority of the commissioners present determine that the relief should be granted; and

(14) Subdivisions (3), (6), (8), (9), (10), (11), and (12) of this section apply to hearings or proceedings before a single commissioner pursuant to section 77-5015.02.

Source:Laws 1995, LB 490, § 16;    Laws 1997, LB 397, § 38;    Laws 1999, LB 140, § 4;    Laws 2000, LB 968, § 75;    Laws 2001, LB 170, § 22;    Laws 2001, LB 419, § 1;    Laws 2001, LB 465, § 7;    Laws 2002, LB 994, § 29;    Laws 2003, LB 291, § 9;    Laws 2004, LB 973, § 51;    Laws 2005, LB 15, § 9;    Laws 2007, LB167, § 6;    Laws 2010, LB877, § 9;    Laws 2011, LB384, § 29.    


Annotations

77-5016.01. Oath, affirmation, or statement; perjury.

Each appeal or petition filed with the commission shall be deemed to include an oath, affirmation, or statement to the effect that its representations are true as far as the person executing or filing it knows or should know. Any person who willfully falsifies any such representation shall be guilty of perjury and shall, upon conviction thereof, be punished as provided by section 28-915.

Source:Laws 2004, LB 973, § 52.    


77-5016.02. Subpoena for witness; authorized.

The chairperson of the commission shall, on application of any person having a cause or any matter pending before it, issue a subpoena for a witness or witnesses under the seal of the commission, inserting all the names required by the applicant in one subpoena.

Source:Laws 2004, LB 973, § 53.    


77-5016.03. Subpoena for witness; contents.

A subpoena of the commission shall be directed to the person named therein, requiring him or her to attend at a particular time and place and to testify as a witness. The subpoena may contain a clause directing the witness to bring with him or her any book, writing, or other thing under his or her control, which he or she is bound by law to produce as evidence.

Source:Laws 2004, LB 973, § 54.    


77-5016.04. Subpoena for witness; service.

The subpoena shall be served in the manner requested by the applicant, by either (1) personally serving a copy or (2) mailing a copy by registered or certified mail, return receipt requested, not less than six days before the day of the hearing or deposition which the witness is required to attend. The person making such service shall make a return thereof showing the manner of service. A subpoena may be served by any person not interested in the matter or by the sheriff. When served by any person other than a sheriff, proof of service shall be shown by affidavit, but no costs of serving shall be allowed, except when served by a sheriff.

Source:Laws 2004, LB 973, § 55.    


77-5016.05. Witnesses; attendance required; fees.

(1) Witnesses cannot be compelled to attend a hearing out of the state where they are served or at a distance of more than one hundred miles from the place of their residence or from the place where they are served with a subpoena, unless within the same county. Witnesses shall not be obliged to attend a deposition outside the county of their residence or outside the county where the subpoena is served.

(2) The chairperson of the commission may, upon deposit with the commission of sufficient money to pay the legal fees and mileage and reasonable expenses for hotel and meals of such a witness who attends at points so far removed from his or her residence as to make it reasonably necessary that such expenses be incurred, order a subpoena to issue requiring the hearing attendance, but excluding a deposition appearance, of such witness from a greater distance within the state than that provided in subsection (1) of this section. Mileage shall be computed at the rate provided in section 81-1176. The subpoena shall show that it is issued under this section. After the appearance of such witness in response to any such subpoena, the chairperson of the commission shall enter an order directing the payment to the witness from such deposit of such legal fees, mileage, and the actual expenses for hotel and meals incurred by such witness. If such deposit is not adequate for such purpose, the chairperson of the commission shall direct the party procuring the issuance of such subpoena to pay to such witness the deficiency.

Source:Laws 2004, LB 973, § 56.    


77-5016.06. Witness; demand fees; when.

(1) Except as provided in subsection (2) of this section, a witness may demand his or her traveling fees and fee for one day's attendance when the subpoena is served upon him or her, and if the same is not paid, the witness shall not be obliged to obey the subpoena. The fact of such demand and nonpayment shall be stated in the return.

(2) When a subpoena is issued at the request of any agency of state government, the witness shall not be entitled to demand his or her traveling fees and fee for one day's attendance but shall be required to obey the subpoena if, at the time of service upon him or her, he or she is furnished a statement prepared by the agency advising him or her of the rate of travel fees allowable, the fee for each day's attendance pursuant to the subpoena, and that he or she will be paid at such rates following his or her attendance.

Source:Laws 2004, LB 973, § 57.    


77-5016.07. Witness; demand for fees; effect.

At the commencement of each day, after the first day, a witness may demand his or her fees for that day's attendance in obedience to a subpoena, and if the same is not paid he or she shall not be required to remain.

Source:Laws 2004, LB 973, § 58.    


77-5016.08. Prohibited acts; penalty.

Disobedience of a subpoena or a refusal to be sworn, to answer as a witness, or to subscribe a deposition, when lawfully ordered, shall be a Class V misdemeanor.

Source:Laws 2004, LB 973, § 59.    


77-5016.09. Death or disability of party; transfer of property; effect on proceeding.

An appeal or petition shall not be dismissed by reason of the death or other disability of a party or by the transfer of any interest in property during its pendency. In the case of the death or other disability of a party, the commission may allow the action to continue by the party's representative or successor in interest. In case of any other transfer of interest in property, the action may be continued in the name of the original party or the commission may allow the party to whom the transfer is made to be substituted in the action in accordance with the party's interests.

Source:Laws 2004, LB 973, § 60.    


77-5017. Appeals or petitions; orders authorized.

(1) In resolving an appeal or petition, the commission may make such orders as are appropriate for resolving the dispute but in no case shall the relief be excessive compared to the problems addressed. The commission may make prospective orders requiring changes in assessment practices which will improve assessment practices or affect the general level of assessment or the measures of central tendency in a positive way. If no other relief is adequate to resolve disputes, the commission may order a reappraisal of property within a county, an area within a county, or classes or subclasses of property within a county.

(2) In an appeal specified in subdivision (10) or (11) of section 77-5016 for which the commission determines exempt property to be taxable, the commission shall order the county board of equalization to determine the taxable value of the property, unless the parties stipulate to such taxable value during the hearing before the commission. The order shall require the county board of equalization to determine the taxable value of the property pursuant to section 77-1507, send notice of the taxable value pursuant to section 77-1507 within ninety days after the date the commission's order is certified pursuant to section 77-5018, and apply interest at the rate specified in section 45-104.01, but not penalty, to the taxable value as of the date the commission's order was issued or the date the taxes were delinquent, whichever is later.

(3) A determination of the taxable value of the property made by the county board of equalization pursuant to subsection (2) of this section may be appealed to the commission within thirty days after the board's decision as provided in section 77-1507.

Source:Laws 1995, LB 490, § 17;    Laws 2001, LB 419, § 2;    Laws 2004, LB 973, § 61;    Laws 2007, LB167, § 7;    Laws 2011, LB384, § 30.    


77-5018. Appeals; decisions and orders; requirements; publication on website; correction of errors.

(1) The commission may issue decisions and orders which are supported by the evidence and appropriate for resolving the matters in dispute. Every final decision and order adverse to a party to the proceeding, rendered by the commission in a case appealed to the commission, shall be in writing or stated in the record and shall be accompanied by findings of fact and conclusions of law. The findings of fact shall consist of a concise statement of the conclusions upon each contested issue of fact. Parties to the proceeding shall be notified of the decision and order in person or by mail. A copy of the decision and order shall be delivered or mailed to each party or his or her attorney of record. Within seven days of issuing a decision and order, the commission shall electronically publish such decision and order on a website maintained by the commission that is accessible to the general public. The full text of final decisions and orders shall be published on the website, except that final decisions and orders that are entered (a) on a dismissal by the appellant or petitioner, (b) on a default order when the appellant or petitioner failed to appear, (c) by agreement of the parties, or (d) by a single commissioner pursuant to section 77-5015.02 may be published on the website in a summary manner identifying the parties, the case number, and the basis for the final decision and order. Any decision rendered by the commission shall be certified to the county treasurer and to the officer charged with the duty of preparing the tax list, and if and when such decision becomes final, such officers shall correct their records accordingly and the tax list pursuant to section 77-1613.02.

(2) The commission may, on its own motion, modify or change its findings or orders, at any time before an appeal and within ten days after the date of such findings or orders, for the purpose of correcting any ambiguity, clerical error, or patent or obvious error. The time for appeal shall not be lengthened because of the correction unless the correction substantially changes the findings or order.

(3) The Tax Commissioner or the Property Tax Administrator shall have thirty days after a final decision of the commission to appeal the commission's decision pursuant to section 77-5019.

Source:Laws 1995, LB 490, § 18;    Laws 1997, LB 397, § 39;    Laws 2001, LB 465, § 8;    Laws 2005, LB 15, § 10;    Laws 2007, LB166, § 11;    Laws 2010, LB877, § 10;    Laws 2011, LB384, § 31.    


77-5019. Appeals; judicial review; procedure.

(1) Any party aggrieved by a final decision in a case appealed to the commission, any party aggrieved by a final decision of the commission on a petition, any party aggrieved by an order of the commission issued pursuant to section 77-5020 or sections 77-5023 to 77-5028, or any party aggrieved by a final decision of the commission appealed by the Tax Commissioner or the Property Tax Administrator pursuant to section 77-701 shall be entitled to judicial review in the Court of Appeals. Upon request of the county, the Attorney General may appear and represent the county or political subdivision in cases in which the commission is not a party. Nothing in this section shall be deemed to prevent resort to other means of review, redress, or relief provided by law.

(2)(a) Proceedings for review shall be instituted by filing a petition and the appropriate docket fees in the Court of Appeals:

(i) Within thirty days after the date on which a final appealable order is entered by the commission; or

(ii) For orders issued pursuant to section 77-5028, within thirty days after May 15 or thirty days after the date ordered pursuant to section 77-1514, whichever is later.

(b) All parties of record shall be made parties to the proceedings for review. The commission shall only be made a party of record if the action complained of is an order issued by the commission pursuant to section 77-1504.01 or 77-5020 or sections 77-5023 to 77-5028. Summons shall be served on all parties within thirty days after the filing of the petition in the manner provided for service of a summons in a civil action. The court, in its discretion, may permit other interested persons to intervene. No bond or undertaking is required for an appeal to the Court of Appeals.

(c) A petition for review shall set forth: (i) The name and mailing address of the petitioner; (ii) the name and mailing address of the county whose action is at issue or the commission; (iii) identification of the final decision at issue together with a duplicate copy of the final decision; (iv) the identification of the parties in the case that led to the final decision; (v) the facts to demonstrate proper venue; (vi) the petitioner's reasons for believing that relief should be granted; and (vii) a request for relief, specifying the type and extent of the relief requested.

(3) The filing of the petition or the service of summons upon the commission shall not stay enforcement of a decision. The commission may order a stay. The court may order a stay after notice of the application for the stay to the commission and to all parties of record. The court may require the party requesting the stay to give bond in such amount and conditioned as the court directs.

(4) Upon receipt of a petition the date for submission of the official record shall be determined by the court. The commission shall prepare a certified copy of the official record of the proceedings had before the commission in the case. The official record shall include: (a) Notice of all proceedings; (b) any pleadings, motions, requests, preliminary or intermediate rulings and orders, and similar correspondence to or from the commission pertaining to the case; (c) the transcribed record of the hearing before the commission, including all exhibits and evidence introduced during the hearing, a statement of matters officially noticed by the commission during the proceeding, and all proffers of proof and objections and rulings thereon; and (d) the final order appealed from. The official record in an appeal of a commission decision issued pursuant to sections 77-5023 to 77-5028 may be limited by the request of a petitioner to those parts of the record pertaining to a specific county. The commission shall charge the petitioner with the reasonable direct cost or require the petitioner to pay the cost for preparing the official record for transmittal to the court in all cases except when the petitioner is not required to pay a filing fee. If payment is required, payment of the cost, as estimated by the commission, for preparation of the official record shall be paid to the commission prior to preparation of the official record and the commission shall not transmit the official record to the court until payment of the actual costs of its preparation is received.

(5) The review shall be conducted by the court for error on the record of the commission. If the court determines that the interest of justice would be served by the resolution of any other issue not raised before the commission, the court may remand the case to the commission for further proceedings. The court may affirm, reverse, or modify the decision of the commission or remand the case for further proceedings.

(6) Appeals under this section shall be given precedence over all civil cases.

Source:Laws 1995, LB 490, § 19;    Laws 1997, LB 165, § 4;    Laws 1999, LB 140, § 5;    Laws 2000, LB 968, § 76;    Laws 2001, LB 465, § 9;    Laws 2005, LB 15, § 11;    Laws 2006, LB 808, § 42;    Laws 2008, LB965, § 21;    Laws 2010, LB877, § 11;    Laws 2011, LB384, § 32.    


Annotations

77-5020. County assessor or deputy assessor; invalidation or suspension of certificate; appeal.

The commission, subject to rules and regulations, shall have the power to invalidate or suspend the certificate issued pursuant to section 77-422 of any county assessor or deputy assessor who willfully fails or refuses to comply with any order of the commission. No certificate shall be invalidated or suspended except upon a hearing before the commission.

Any county assessor or deputy assessor whose certificate has been so invalidated or suspended may appeal the decision to the Court of Appeals in accordance with section 77-5019.

No action shall be brought under this section more than two years after the date of the act, last date of a series of actions complained of, or the last date the county assessor or deputy assessor could have acted to comply, whichever is later.

Source:Laws 1995, LB 490, § 20;    Laws 2004, LB 973, § 62;    Laws 2007, LB167, § 8.    


77-5021. Rules and regulations.

The commission may adopt and promulgate rules and regulations to carry out its constitutional or statutory purposes, powers, or authority. The commission may adopt and promulgate rules and regulations necessary to regulate persons and proceedings within the commission's jurisdiction and authority.

Source:Laws 1995, LB 490, § 21;    Laws 2003, LB 291, § 10.    


77-5022. Commission; annual meeting; powers and duties.

The commission shall annually equalize the assessed value or special value of all real property as submitted by the county assessors on the abstracts of assessments and equalize the values of real property that is valued by the state. The commission shall have the power to recess from time to time until the equalization process is complete. Meetings held pursuant to this section may be held by means of videoconference or telephone conference.

Source:Laws 1903, c. 73, § 130, p. 434; R.S.1913, § 6447; Laws 1921, c. 133, art. XI, § 4, p. 591; C.S.1922, § 5901; C.S.1929, § 77-1004; Laws 1933, c. 129, § 1, p. 505; C.S.Supp.,1941, § 77-1004; R.S.1943, § 77-505; Laws 1969, c. 653, § 1, p. 2569; Laws 1987, LB 508, § 18;    Laws 1992, LB 1063, § 57; Laws 1992, Second Spec. Sess., LB 1, § 55;    R.S.1943, (1996), § 77-505; Laws 1997, LB 397, § 40;    Laws 1999, LB 140, § 6;    Laws 2003, LB 291, § 12;    Laws 2004, LB 973, § 63;    Laws 2006, LB 808, § 43;    Laws 2009, LB166, § 19;    Laws 2011, LB384, § 33.    


Annotations

77-5023. Commission; power to change value; acceptable range.

(1) Pursuant to section 77-5022, the commission shall have the power to increase or decrease the value of a class or subclass of real property in any county or taxing authority or of real property valued by the state so that all classes or subclasses of real property in all counties fall within an acceptable range.

(2) An acceptable range is the percentage of variation from a standard for valuation as measured by an established indicator of central tendency of assessment. Acceptable ranges are: (a) For agricultural land and horticultural land as defined in section 77-1359, sixty-nine to seventy-five percent of actual value, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after January 1, 2022, the acceptable range is forty-four to fifty percent of actual value; (b) for lands receiving special valuation, sixty-nine to seventy-five percent of special valuation as defined in section 77-1343, except that for school district taxes levied to pay the principal and interest on bonds that are approved by a vote of the people on or after January 1, 2022, the acceptable range is forty-four to fifty percent of special valuation as defined in section 77-1343; and (c) for all other real property, ninety-two to one hundred percent of actual value.

(3) Any increase or decrease shall cause the level of value determined by the commission to be at the midpoint of the applicable acceptable range.

(4) Any decrease or increase to a subclass of property shall also cause the level of value determined by the commission for the class from which the subclass is drawn to be within the applicable acceptable range.

(5) Whether or not the level of value determined by the commission falls within an acceptable range or at the midpoint of an acceptable range may be determined to a reasonable degree of certainty relying upon generally accepted mass appraisal techniques.

Source:Laws 1903, c. 73, § 130, p. 434; R.S.1913, § 6447; Laws 1921, c. 133, art. XI, § 4, p. 591; C.S.1922, § 5901; C.S.1929, § 77-1004; Laws 1933, c. 129, § 1, p. 505; C.S.Supp.,1941, § 77-1004; R.S.1943, § 77-506; Laws 1955, c. 289, § 4, p. 918; Laws 1957, c. 323, § 1, p. 1145; Laws 1957, c. 320, § 3, p. 1139; Laws 1979, LB 187, § 193;    Laws 1985, LB 268, § 2;    Laws 1987, LB 508, § 19;    Laws 1992, LB 1063, § 58; Laws 1992, Second Spec. Sess., LB 1, § 56;    Laws 1995, LB 137, § 1;    R.S.1943, (1996), § 77-506; Laws 1997, LB 397, § 41;    Laws 2000, LB 968, § 77;    Laws 2001, LB 170, § 23;    Laws 2003, LB 291, § 13;    Laws 2004, LB 973, § 64;    Laws 2006, LB 808, § 44;    Laws 2006, LB 968, § 15;    Laws 2007, LB167, § 9;    Laws 2009, LB166, § 20;    Laws 2021, LB2, § 2.    


Annotations

77-5024. Repealed. Laws 2005, LB 261, § 13.

77-5024.01. Notice; contents.

The commission shall give notice of the time and place of the first meeting held pursuant to sections 77-5022 to 77-5028 by publication in a newspaper of general circulation in the State of Nebraska. Such notice shall contain a statement that the agenda shall be readily available for public inspection at the principal office of the commission during normal business hours. The agenda shall be continually revised to remain current. The commission may thereafter modify the agenda and need only provide notice of the meeting to the affected counties in the manner provided in section 77-5026. The commission shall publish in its notice a list of those counties certified under section 77-5027 as having assessments which may fail to satisfy the requirements of law. The notice shall also contain a statement advising that any petition brought by a county board of equalization pursuant to section 77-1504.01 to adjust the value of a class or subclass of real property will be heard between July 26 and August 10 at a date, time, and place as provided in the agenda maintained by the commission.

Source:Laws 2003, LB 291, § 11;    Laws 2005, LB 261, § 9;    Laws 2011, LB384, § 34.    


77-5025. Repealed. Laws 2005, LB 261, § 13.

77-5026. Commission; change of value; hearing; procedure.

Pursuant to section 77-5023, if the commission finds that the level of value of a class or subclass of real property fails to satisfy the requirements of section 77-5023, the commission shall issue a notice to the counties which it deems either undervalued or overvalued and shall set a date for hearing at least five days following the mailing of the notice unless notice is waived. The notice unless waived shall be mailed to the county clerk, county assessor, and chairperson of the county board. At the hearing the county assessor or other legal representatives of the county may appear and show cause why the value of a class or subclass of real property of the county should not be adjusted. A county assessor or other legal representative of the county may waive notice of the hearing or consent to entry of an order adjusting the value of a class or subclass of real property without further notice. At the hearing, the commission may receive testimony from any interested person.

Source:Laws 1921, c. 133, art. XI, § 4, p. 591; C.S.1922, § 5901; C.S.1929, § 77-1004; Laws 1933, c. 129, § 1, p. 505; C.S.Supp.,1941, § 77-1004; R.S.1943, § 77-508; Laws 1969, c. 653, § 2, p. 2569; Laws 1987, LB 508, § 21;    Laws 1992, LB 1063, § 60; Laws 1992, Second Spec. Sess., LB 1, § 58;    Laws 1993, LB 734, § 44;    Laws 1995, LB 490, § 56;    R.S.1943, (1996), § 77-508; Laws 1997, LB 397, § 44;    Laws 2001, LB 170, § 25;    Laws 2005, LB 15, § 12;    Laws 2007, LB167, § 10.    


Annotations

77-5027. Commission; change valuation; Property Tax Administrator; duties.

(1) The commission shall, pursuant to section 77-5026, raise or lower the valuation of any class or subclass of real property in a county when it is necessary to achieve equalization.

(2) On or before nineteen days following the final filing due date for the abstract of assessment for real property pursuant to section 77-1514, the Property Tax Administrator shall prepare and deliver to the commission and to each county assessor his or her annual reports and opinions. Beginning January 1, 2014, for any county with a population of at least one hundred fifty thousand inhabitants according to the most recent federal decennial census, the reports or opinions shall be prepared and delivered on or before fifteen days following such final filing due date.

(3) The annual reports and opinions of the Property Tax Administrator shall contain statistical and narrative reports informing the commission of the level of value and the quality of assessment of the classes and subclasses of real property within the county and a certification of the opinion of the Property Tax Administrator regarding the level of value and quality of assessment of the classes and subclasses of real property in the county.

(4) In addition to an opinion of level of value and quality of assessment in the county, the Property Tax Administrator may make nonbinding recommendations for consideration by the commission.

(5) The Property Tax Administrator shall employ the methods specified in section 77-112, the comprehensive assessment ratio study specified in section 77-1327, other statistical studies, and an analysis of the assessment practices employed by the county assessor. If necessary to determine the level of value and quality of assessment in a county, the Property Tax Administrator may use sales of comparable real property in market areas similar to the county or area in question or from another county as indicators of the level of value and the quality of assessment in a county. The Property Tax Administrator may use any other relevant information in providing the annual reports and opinions to the commission.

Source:Laws 1969, c. 628, § 1, p. 2528; Laws 1987, LB 508, § 22;    Laws 1988, LB 1207, § 1;    Laws 1989, LB 361, § 6;    Laws 1995, LB 490, § 57;    Laws 1997, LB 342, § 2;    R.S.1943, (1996), § 77-508.01; Laws 1997, LB 397, § 45;    Laws 2001, LB 170, § 26;    Laws 2004, LB 973, § 65;    Laws 2005, LB 263, § 15;    Laws 2011, LB384, § 35.    


Annotations

77-5028. Commission; enter order.

After a hearing conducted pursuant to section 77-5026, the commission shall enter its order based on information presented to it at the hearing. The order of the commission shall be sent by certified mail to the county assessor and by regular mail to the county clerk and chairperson of the county board on or before May 15 of each year or the date determined by the Property Tax Administrator if an extension is ordered pursuant to section 77-1514, unless the offices of the commission are closed, then the order of the commission shall be sent by the end of the next day the commission's offices are open. The order shall specify the percentage increase or decrease and the class or subclass of real property affected or the corrections or adjustments to be made to each parcel of real property in the class or subclass affected. The specified changes shall be made by the county assessor to each parcel of real property in the county so affected.

Source:Laws 1921, c. 133, art. XI, § 4, p. 591; C.S.1922, § 5901; C.S.1929, § 77-1004; Laws 1933, c. 129, § 1, p. 505; C.S.Supp.,1941, § 77-1004; R.S.1943, § 77-509; Laws 1959, c. 359, § 1, p. 1275; Laws 1969, c. 656, § 1, p. 2573; Laws 1969, c. 653, § 3, p. 2570; Laws 1979, LB 159, § 1;    Laws 1987, LB 508, § 23;    Laws 1991, LB 732, § 138; Laws 1992, LB 1063, § 61; Laws 1992, Second Spec. Sess., LB 1, § 59;    Laws 1993, LB 734, § 45;    Laws 1995, LB 452, § 14;    Laws 1995, LB 490, § 58;    Laws 1996, LB 1040, § 2;    R.S.1943, (1996), § 77-509; Laws 1997, LB 397, § 46;    Laws 2001, LB 170, § 27;    Laws 2005, LB 15, § 13;    Laws 2005, LB 261, § 10;    Laws 2007, LB167, § 11.    


Annotations

77-5029. County assessor; recertify county abstract; Property Tax Administrator; duties.

On or before June 5 of each year, the county assessor of any county adjusted by an order of the commission shall recertify the county abstract of assessment to the Property Tax Administrator. On or before August 1 of each year, the Property Tax Administrator shall certify to the commission that any order issued pursuant to sections 77-5023 to 77-5028 was or was not implemented by the county assessor as of June 1 of each year pursuant to section 77-1315. The Property Tax Administrator shall audit the records of the county assessor to determine whether the orders were implemented.

Source:Laws 1992, LB 1063, § 62; Laws 1992, Second Spec. Sess., LB 1, § 60;    Laws 1993, LB 734, § 46;    Laws 1995, LB 452, § 15;    R.S.1943, (1996), § 77-509.01; Laws 1997, LB 397, § 47;    Laws 2006, LB 808, § 45.    


77-5030. Property Tax Administrator; certify distributed taxable value.

On or before August 10 of each year, the Property Tax Administrator shall certify the distributed taxable value of the property valued by the state, as equalized by the commission, to each county assessor.

Source:Laws 1995, LB 452, § 16;    Laws 1995, LB 490, § 59;    R.S.1943, (1996), § 77-509.02; Laws 1997, LB 397, § 48;    Laws 1998, LB 306, § 41.    


77-5031. Tax Equalization and Review Commission Cash Fund; created; use; investment.

The Tax Equalization and Review Commission Cash Fund is hereby created. All money received by the commission for appeals and services performed and billed to other agencies or persons shall be credited to the fund. The commission shall only bill for the actual amount expended in performing services. The fund shall be used to carry out the provisions of the Tax Equalization and Review Commission Act, except that transfers may be made from the fund to the General Fund at the direction of the Legislature. Expenditures from the Tax Equalization and Review Commission Cash Fund shall be made only when such funds are available. Any unexpended balance in the fund at the end of each fiscal year shall not lapse to the General Fund. Any money in the Tax Equalization and Review Commission Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 1997, LB 270, § 101;    Laws 2009, First Spec. Sess., LB3, § 57.    


Cross References

77-5032. Repealed. Laws 2005, LB 15, § 15.

77-5101. Repealed. Laws 2000, LB 1135, § 34.

77-5102. Repealed. Laws 2000, LB 1135, § 34.

77-5103. Repealed. Laws 2000, LB 1135, § 34.

77-5104. Repealed. Laws 2000, LB 1135, § 34.

77-5105. Repealed. Laws 2000, LB 1135, § 34.

77-5201. Act, how cited.

Sections 77-5201 to 77-5215 shall be known and may be cited as the Beginning Farmer Tax Credit Act.

Source:Laws 1999, LB 630, § 2;    Laws 2006, LB 990, § 8;    Laws 2008, LB1027, § 2.    


77-5202. Legislative findings.

(1) The Legislature hereby finds and declares that:

(a) Current farm economic conditions in the State of Nebraska have resulted in unemployment, outmigration of people, loss of agricultural jobs, and difficulty in attracting and retaining farm operations; and

(b) Major revisions in Nebraska's tax structure are necessary to accomplish economic revitalization of rural Nebraska and to be competitive with other states involved in economic revitalization and development of agriculture.

(2) It is the policy of this state to make revisions in Nebraska's tax structure in order to encourage persons to seek careers in the farming industry, retain existing and established farm operations, promote the creation and retention of new farm jobs in Nebraska, and attract and retain investment capital in rural Nebraska.

Source:Laws 1999, LB 630, § 3.    


77-5203. Terms, defined.

For purposes of the Beginning Farmer Tax Credit Act:

(1) Agricultural assets means agricultural land, livestock, farming, or livestock production facilities or buildings and machinery used for farming or livestock production located in Nebraska;

(2) Board means the Beginning Farmer Board created by section 77-5204;

(3) Cash rent agreement means a rental agreement in which the principal consideration given to the owner of agricultural assets is a predetermined amount of money. A flex or variable rent agreement is an alternative form of a cash rent agreement in which a predetermined base rent is adjusted for actual crop yield, crop price, or both according to a predetermined formula;

(4) Farm means any improved or unimproved tract of land used for or devoted to the commercial production of farm products;

(5) Farm product means those plants and animals useful to man and includes, but is not limited to, forages and sod crops, grains and feed crops, dairy and dairy products, poultry and poultry products, livestock, including breeding and grazing livestock, fruits, and vegetables;

(6) Farming or livestock production means the active use, management, and operation of real and personal property for the production of a farm product;

(7) Financial management program means a program for beginning farmers or livestock producers which includes, but is not limited to, assistance in the creation and proper use of record-keeping systems, periodic private consultations with licensed financial management personnel, year-end monthly cash flow analysis, and detailed enterprise analysis;

(8) Owner of agricultural assets means:

(a) An individual or a trustee having an ownership interest in an agricultural asset located within the State of Nebraska who meets any qualifications determined by the board;

(b) A spouse, child, or sibling who acquires an ownership interest in agricultural assets as a joint tenant, heir, or devisee of an individual or trustee who would qualify as an owner of agricultural assets under subdivision (8)(a) of this section; or

(c) A partnership, corporation, limited liability company, or other business entity having an ownership interest in an agricultural asset located within the State of Nebraska which meets any additional qualifications determined by the board;

(9) Qualified beginning farmer or livestock producer means an individual who is a resident individual as defined in section 77-2714.01, who has entered farming or livestock production or is seeking entry into farming or livestock production, who intends to farm or raise crops or livestock on land located within the state borders of Nebraska, and who meets the eligibility guidelines established in section 77-5209 and such other qualifications as determined by the board; and

(10) Share-rent agreement means a rental agreement in which the principal consideration given to the owner of agricultural assets is a predetermined portion of the production of farm products from the rented agricultural assets.

Source:Laws 1999, LB 630, § 4;    Laws 2000, LB 1223, § 3;    Laws 2006, LB 990, § 9;    Laws 2008, LB1027, § 3;    Laws 2019, LB560, § 2;    Laws 2023, LB562, § 13.    
Effective Date: September 2, 2023


77-5204. Beginning Farmer Board; created; duties.

For the purpose of developing and directing programs to provide increased and enhanced opportunities for beginning farmers and livestock producers, the Beginning Farmer Board is created. For administrative and budgetary purposes only, the board shall be housed within the Department of Agriculture. The board shall be vested with the following duties and responsibilities:

(1) To approve and certify beginning farmers and livestock producers as eligible for the programs provided by the board, for eligibility to claim tax credits authorized by section 77-5209.01, and for eligibility to claim an exemption of taxable tangible personal property tax as provided by section 77-5209.02;

(2) To approve and certify owners of agricultural assets as eligible for the tax credits authorized by sections 77-5211 to 77-5213;

(3) To advocate joint ventures between beginning farmers or livestock producers and existing private and public credit and banking licensed institutions, as well as to advocate joint ventures with owners of agricultural assets desiring to assist beginning farmers and livestock producers seeking entry into farming or livestock production;

(4) To provide necessary and reasonable assistance and support to beginning farmers and livestock producers for qualification and participation in financial management programs approved by the board;

(5) To advocate appropriate changes in policies and programs of other public and private institutions or agencies which will directly benefit beginning farmers and livestock producers and may include changes regarding financing, taxation, and any other existing policies which prohibit or impede individuals from entering into farming or livestock production;

(6) To provide adequate explanations of facts and aspects of available programs offered or recommended by the board intended for beginning farmers and livestock producers;

(7) To assist and educate beginning farmers and livestock producers by acting as a liaison between beginning farmers or livestock producers and the Nebraska Investment Finance Authority;

(8) To encourage licensed financial institutions and individuals to use alternative amortization schedules for loans and land contracts granted to beginning farmers and livestock producers;

(9) To refer beginning farmers and livestock producers to agencies and organizations which may provide additional pertinent information and assistance;

(10) To provide any other assistance and support the board deems necessary and appropriate in order for entry into farming or livestock production;

(11) To adopt and promulgate rules and regulations necessary to carry out the purposes of the Beginning Farmer Tax Credit Act, including criteria required for tax credit eligibility and financial management program certification and guidelines which constitute a viably sized farm that is necessary to adequately support a beginning farmer or livestock producer. Such guidelines shall vary and take into account the region of the state, number of acres, land quality and type, type of operation, type of crops or livestock raised, and other factors of farming or livestock production; and

(12) To keep minutes of the board's meetings and other books and records which will adequately reflect actions and decisions of the board and to provide an annual report to the Governor, the Legislative Fiscal Analyst, and the Clerk of the Legislature by December 1. The report submitted to the Legislative Fiscal Analyst and the Clerk of the Legislature shall be submitted electronically.

Source:Laws 1999, LB 630, § 5;    Laws 2000, LB 1223, § 4;    Laws 2008, LB1027, § 5;    Laws 2012, LB782, § 140.    


77-5205. Board; members; vacancies; removal.

The board shall consist of the following members:

(1) The Director of Agriculture or his or her designee;

(2) The Tax Commissioner or his or her designee;

(3) One individual representing lenders of agricultural credit;

(4) One individual of the academic community with extensive knowledge and insight in the analysis of agricultural economic issues; and

(5) Three individuals who are currently engaged in farming or livestock production and are representative of a variety of farming or livestock production interests based on size of farm, type of farm operation, net worth of farm operation, and geographic location.

All members of the board shall be resident individuals as defined in section 77-2714.01. Members of the board listed in subdivisions (3) through (5) of this section shall be appointed by the Governor with the approval of a majority of the Legislature. All appointments shall be for terms of four years.

Vacancies in the appointed membership of the board shall be filled for the unexpired term by appointment by the Governor. Members of the board shall serve the full term and until a successor has been appointed by the Governor and approved by the Legislature. Any member is eligible for reappointment. Any member may be removed from the board by the Governor or by an affirmative vote by any four members of the board for incompetence, neglect of duty, or malfeasance.

Source:Laws 1999, LB 630, § 6;    Laws 2023, LB562, § 14.    
Effective Date: September 2, 2023


77-5206. Board; officers; expenses.

Once every two years, the members of the board shall elect a chairperson and a vice-chairperson. A member of the board may be reelected to the position of chairperson or vice-chairperson upon the discretion of the board. Members of the board shall be reimbursed for expenses as provided in sections 81-1174 to 81-1177.

Source:Laws 1999, LB 630, § 7;    Laws 2020, LB381, § 86.    


77-5207. Board; quorum.

Four of the members of the board shall constitute a quorum for the transaction of official business. The affirmative vote of at least four members shall be necessary for any action to be taken by the board. No vacancy in the membership of the board shall constitute an impairment of a quorum to exercise any and all rights and perform all duties of the board.

Source:Laws 1999, LB 630, § 8.    


77-5208. Board; meetings; application; approval; deadline.

The board shall meet at least twice during the year. The board shall review pending applications in order to approve and certify beginning farmers and livestock producers as eligible for the programs provided by the board, to approve and certify owners of agricultural assets as eligible for the tax credits authorized by sections 77-5211 to 77-5213, and to approve and certify qualified beginning farmers and livestock producers as eligible for the tax credit authorized by section 77-5209.01 and for qualification to claim an exemption of taxable tangible personal property as provided by section 77-5209.02. No new applications for any such programs, tax credits, or exemptions shall be approved or certified by the board after December 31, 2027. Any action taken by the board regarding approval and certification of program eligibility, granting of tax credits, or termination of rental agreements shall require the affirmative vote of at least four members of the board.

Source:Laws 1999, LB 630, § 9;    Laws 2006, LB 990, § 10;    Laws 2008, LB1027, § 6;    Laws 2015, LB538, § 12;    Laws 2016, LB1022, § 8;    Laws 2021, LB432, § 15;    Laws 2023, LB562, § 15.    
Effective Date: September 2, 2023


77-5209. Beginning farmer or livestock producer; qualifications.

(1) The board shall determine who is qualified as a beginning farmer or livestock producer based on the qualifications found in this section. A qualified beginning farmer or livestock producer shall be an individual who: (a) Has a net worth of not more than seven hundred fifty thousand dollars, including any holdings by a spouse or dependent, based on fair market value; (b) provides the majority of the day-to-day physical labor and management of his or her farming or livestock production operations; (c) has, by the judgment of the board, adequate farming or livestock production experience or demonstrates knowledge in the type of farming or livestock production for which he or she seeks assistance from the board; (d) demonstrates to the board a profit potential by submitting board-approved projected earnings statements and agrees that farming or livestock production is intended to become his or her principal source of income; (e) demonstrates to the board a need for assistance; (f) participates in a financial management program approved by the board; (g) submits a nutrient management plan and a soil conservation plan to the board on any applicable agricultural assets purchased or rented from an owner of agricultural assets; (h) is of legal age to enter into and be legally responsible for a binding contract or lease as provided under section 43-2101; and (i) has such other qualifications as specified by the board. The qualified beginning farmer or livestock producer net worth thresholds in subdivision (a) of this subsection shall be adjusted annually beginning October 1, 2023, and each October 1 thereafter, by taking the average Producer Price Index for all commodities, published by the United States Department of Labor, Bureau of Labor Statistics, for the most recent twelve available periods divided by the Producer Price Index for 2022 and multiplying the result by the qualified beginning farmer's or livestock producer's net worth threshold. If the resulting amount is not a multiple of twenty-five thousand dollars, the amount shall be rounded to the next lowest twenty-five thousand dollars.

(2) When determining a qualified beginning farmer's or livestock producer's net worth, the board shall exclude from such determination any pension, retirement, or other types of deferred benefit accounts owned by the beginning farmer or livestock producer, including such accounts owned by a spouse or dependent.

(3) A qualified beginning farmer or livestock producer who has participated in a board approved and certified three-year rental agreement with an owner of agricultural assets shall be eligible to file subsequent applications for different assets.

Source:Laws 1999, LB 630, § 10;    Laws 2000, LB 1223, § 5;    Laws 2006, LB 990, § 11;    Laws 2008, LB1027, § 7;    Laws 2009, LB447, § 1;    Laws 2019, LB560, § 3;    Laws 2023, LB562, § 16.    
Effective Date: September 2, 2023


77-5209.01. Tax credit for financial management program participation.

A qualified beginning farmer or livestock producer shall be allowed a one-time refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 for the cost of participation in the financial management program required for eligibility under section 77-5209. The amount of the credit shall be the actual cost of participation in an approved program incurred during the tax year for which the credit is claimed, up to a maximum of five hundred dollars.

Source:Laws 2006, LB 990, § 12;    Laws 2019, LB560, § 4;    Laws 2023, LB562, § 17.    
Effective Date: September 2, 2023


Cross References

77-5209.02. Personal property tax exemption; authorized; application; form; county assessor; duties; protest; hearing; appeal; continuation of exemption.

(1) Agricultural and horticultural machinery and equipment of a qualified beginning farmer or livestock producer utilized in the beginning farmer's or livestock producer's operation may be exempt from tangible personal property tax to the extent provided in this section.

(2) A qualified beginning farmer or livestock producer seeking an exemption of taxable agricultural and horticultural machinery and equipment from tangible personal property tax under this section shall apply for an exemption to the county assessor on or before December 31 of the year preceding the year for which the exemption is to begin. Application shall be on forms prescribed by the Tax Commissioner. For the initial year of application, an applicant shall provide the original documentation of certification provided by the board pursuant to section 77-5208 with the application. Failure to provide the required documentation shall result in a denial of the exemption for the following year but shall be considered as an application for the year thereafter.

(3) The county assessor shall approve or deny the application for exemption. On or before February 1, the county assessor shall issue notice of approval or denial to the applicant. If the application is approved, the county assessor shall exempt no more than one hundred thousand dollars of taxable value of agricultural or horticultural machinery and equipment for each year in addition to, and applied after, any amount exempted under subsection (1) of section 77-1238. If the application is denied by the county assessor, a written protest of the denial of the application may be filed within thirty days after the mailing of the denial to the county board of equalization.

(4) All provisions of section 77-1502 except dates for filing of a protest, the period for hearing protests, and the date for mailing notice of the county board of equalization's decision are applicable to any protest filed pursuant to this section. The county board of equalization shall decide any protest filed pursuant to this section within thirty days after the filing of the protest. The county clerk shall mail a copy of any decision made by the county board of equalization on a protest filed pursuant to this section to the applicant within seven days after the board's decision. Any decision of the county board of equalization may be appealed to the Tax Equalization and Review Commission, in accordance with section 77-5013, within thirty days after the date of the decision. Any applicant may petition the Tax Equalization and Review Commission in accordance with section 77-5013, on or before December 31 of each year, to determine whether the agricultural and horticultural machinery and equipment will receive the exemption for that year if a failure to give notice as prescribed by this section prevented timely filing of a protest or appeal provided for in this section.

(5) A properly granted exemption for taxable agricultural and horticultural machinery and equipment under this section shall continue for a period of three years if each year a Nebraska personal property tax return and supporting schedules and depreciation worksheet, showing a list and value of all taxable tangible personal property, are provided and filed by the beginning farmer or livestock producer with the county assessor when due. The value of taxable agricultural and horticultural machinery and equipment exempted pursuant to this section in any year shall not exceed one hundred thousand dollars. The exemption allowed under this section shall continue irrespective of whether the person claiming the exemption no longer meets the qualification of a beginning farmer or livestock producer pursuant to section 77-5209 during the exemption period unless the beginning farmer or livestock producer discontinues farming or livestock production.

(6) Any person whose agricultural and horticultural machinery and equipment has been exempted from tangible personal property tax pursuant to this section shall be permanently disqualified from any further exemption of agricultural and horticultural machinery and equipment from tangible personal property tax as a qualified beginning farmer or livestock producer except as allowed in subsection (1) of section 77-1238.

Source:Laws 2008, LB1027, § 4;    Laws 2015, LB259, § 10.    


77-5210. Board; annual report.

The board shall submit an annual report of the activities and actions of the board for the preceding fiscal year to the Governor, the Legislative Fiscal Analyst, and the Clerk of the Legislature by December 1. The report submitted to the Legislative Fiscal Analyst and the Clerk of the Legislature shall be submitted electronically. Each member of the Legislature shall receive an electronic copy of such report by request to the chairperson of the board. Each report shall include the following information:

(1) A complete operating and financial statement for the board for the prior fiscal year;

(2) The number of qualified beginning farmers and livestock producers receiving assistance from the board;

(3) The number of owners of agricultural assets claiming tax credits and the monetary amount of credits granted by the board; and

(4) Any other relevant information which the board deems necessary to report.

No information furnished to the board shall be disclosed in the report in such a way as to reveal information from a tax return of any person.

Source:Laws 1999, LB 630, § 11;    Laws 2000, LB 1223, § 6;    Laws 2012, LB782, § 141.    


77-5211. Owner of agricultural assets; tax credit; when.

(1) Except as otherwise disallowed under subsection (7) of this section, an owner of agricultural assets shall be allowed a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 for agricultural assets rented on a rental agreement basis, including cash rent of agricultural assets or cash equivalent of a share-rent rental, to qualified beginning farmers or livestock producers. Such asset shall be rented at prevailing community rates as determined by the board.

(2) An owner of agricultural assets who has participated in a board approved and certified three-year rental agreement with a beginning farmer or livestock producer shall be eligible to file subsequent applications for different assets.

(3) Except as allowed pursuant to subsection (5) of this section, tax credits for an agricultural asset may be issued for a maximum of three years.

(4) The credit allowed shall be for renting agricultural assets used for farming or livestock production. Such credit shall be granted by the Department of Revenue only after approval and certification by the board and a written three-year rental agreement for such assets is entered into between an owner of agricultural assets and a qualified beginning farmer or livestock producer. An owner of agricultural assets or qualified beginning farmer or livestock producer may terminate such agreement for reasonable cause upon approval by the board. If an agreement is terminated without fault on the part of the owner of agricultural assets as determined by the board, the tax credit shall not be retroactively disallowed. If an agreement is terminated with fault on the part of the owner of agricultural assets as determined by the board, any prior tax credits claimed by such owner shall be disallowed and recaptured and shall be immediately due and payable to the State of Nebraska.

(5) A credit may be granted to an owner of agricultural assets for renting agricultural assets, including cash rent of agricultural assets or cash equivalent of a share-rent agreement, to any qualified beginning farmer or livestock producer for a period of three years. An owner of agricultural assets shall be eligible for further credits for such assets under the Beginning Farmer Tax Credit Act when the rental agreement is terminated prior to the end of the three-year period through no fault of the owner of agricultural assets. If the board finds that such a termination was not the fault of the owner of the agricultural assets, it may approve the owner for credits arising from a subsequent qualifying rental agreement on the same asset with a different qualified beginning farmer or livestock producer.

(6) Any credit allowable to a partnership, a corporation, a limited liability company, or an estate or trust may be distributed to the partners, members, shareholders, or beneficiaries. Any credit distributed shall be distributed in the same manner as income is distributed.

(7) The credit allowed under this section shall not be allowed to an owner of agricultural assets for a rental agreement with a beginning farmer or livestock producer who is a relative, as defined in section 36-802, of the owner of agricultural assets or of a partner, member, shareholder, or trustee of the owner of agricultural assets unless the rental agreement is included in a written succession plan. Such succession plan shall be in the form of a written contract or other instrument legally binding the parties to a process and timetable for the transfer of agricultural assets from the owner of agricultural assets to the beginning farmer or livestock producer. The succession plan shall provide for the transfer of assets to be completed within a period of no longer than thirty years, except that when the asset to be transferred is land owned by an individual, the period of transfer may be for a period up to the date of death of the owner. The owner of agricultural assets shall be allowed the credit provided for qualified rental agreements under this section if the board certifies the plan as providing a reasonable manner and probability of successful transfer.

(8) The total amount of credits granted under this section shall not exceed two million dollars per year. In calculating such limit, the board shall consider the cumulative amount of credits requested in the application submitted by the owner of agricultural assets rather than the amount of credits actually claimed by such owner.

Source:Laws 1999, LB 630, § 12;    Laws 2000, LB 1223, § 7;    Laws 2006, LB 990, § 13;    Laws 2008, LB1027, § 8;    Laws 2009, LB165, § 15;    Laws 2019, LB70, § 17;    Laws 2019, LB560, § 5;    Laws 2023, LB562, § 18.    
Effective Date: September 2, 2023


Cross References

77-5212. Rental agreement; requirements; appeal.

In evaluating a rental agreement between an owner of agricultural assets and a qualified beginning farmer or livestock producer, the board shall not approve and certify credit for an owner of agricultural assets who has, with fault, terminated a prior board approved and certified rental agreement with a qualified beginning farmer or livestock producer or if the agricultural assets have previously been approved in a qualifying rental agreement. Any person aggrieved by a decision of the board may appeal the decision, and the appeal shall be in accordance with the Administrative Procedure Act.

Source:Laws 1999, LB 630, § 13;    Laws 2006, LB 990, § 14;    Laws 2019, LB560, § 6.    


Cross References

77-5213. Tax credit; amount; agreement; review.

(1) The tax credit approved and certified by the board under section 77-5211 for an owner of agricultural assets in the first, second, or third year of a qualifying rental agreement shall be equal to (a) ten percent of the gross rental income stated in a rental agreement that is a cash rent agreement or (b) fifteen percent of the cash equivalent of the gross rental income in a rental agreement that is a share-rent agreement. Tax credits shall only be approved and certified for rental agreements that are approved and certified by the board under the Beginning Farmer Tax Credit Act.

(2) To qualify for the greater rate of credit allowed under subdivision (1)(b) of this section, a share-rent agreement shall provide for sharing of production expenses or risk of loss, or both, between the agricultural asset owner and the qualified beginning farmer or livestock producer. The board may adopt and promulgate rules and regulations, consistent with the policy objectives of the act, to further define the standards that share-rent agreements shall meet for approval and certification of the tax credit under the act.

(3) The board shall review each existing three-year rental agreement between a beginning farmer or livestock producer and an owner of agricultural assets on an annual basis and shall either certify or terminate program eligibility for beginning farmers or livestock producers or tax credits granted to owners of agricultural assets on an annual basis.

Source:Laws 1999, LB 630, § 14;    Laws 2006, LB 990, § 15;    Laws 2023, LB562, § 19.    
Effective Date: September 2, 2023


77-5214. Board; support and assistance.

In order to carry out the provisions of the Beginning Farmer Tax Credit Act, the Department of Agriculture shall provide any and all of the necessary support and assistance to the board.

Source:Laws 1999, LB 630, § 15;    Laws 2012, LB782, § 142.    


77-5215. Changes; when operative.

(1) The changes made in sections 77-5201, 77-5203, 77-5208, 77-5209, and 77-5211 to 77-5213 by Laws 2006, LB 990, shall become operative for all credits earned in tax years beginning or deemed to begin on and after January 1, 2007, under the Internal Revenue Code of 1986, as amended. For all credits earned in tax years beginning or deemed to begin prior to January 1, 2007, under the code, the provisions of the Beginning Farmer Tax Credit Act as they existed prior to such date shall apply.

(2) The changes made in sections 77-5203, 77-5209, and 77-5211 by Laws 2008, LB 1027, shall become operative for all credits earned in tax years beginning or deemed to begin on and after January 1, 2008, under the Internal Revenue Code of 1986, as amended. For all credits earned in tax years beginning or deemed to begin prior to January 1, 2008, under the code, the provisions of the Beginning Farmer Tax Credit Act as they existed prior to such date shall apply.

Source:Laws 2006, LB 990, § 16;    Laws 2008, LB1027, § 9.    


77-5301. Repealed. Laws 2001, Spec. Sess., LB 3, § 13.

77-5302. Repealed. Laws 2001, Spec. Sess., LB 3, § 13.

77-5303. Repealed. Laws 2001, Spec. Sess., LB 3, § 13.

77-5304. Repealed. Laws 2001, Spec. Sess., LB 3, § 13.

77-5401. Act, how cited.

Sections 77-5401 to 77-5414 shall be known and may be cited as the Rural Economic Opportunities Act.

Source:Laws 2000, LB 936, § 1.    


77-5402. Legislative findings and declaration.

The Legislature finds and declares that:

(1) Population and economic growth in Nebraska has for many years been greater in counties with relatively large populations and economies than in most of Nebraska's less populated counties; and

(2) It is the policy of the state to make revisions in Nebraska's tax structure to encourage employment and business investment that will significantly and positively impact the economies of the state's small-sized and mid-sized counties.

Source:Laws 2000, LB 936, § 2.    


77-5403. Terms, defined.

For purposes of the Rural Economic Opportunities Act:

(1) Any term defined in the Nebraska Revenue Act of 1967 and used in the Rural Economic Opportunities Act has the same meaning as in the Nebraska Revenue Act of 1967;

(2) Average annual total employment means the average total employment reported for the county of employment for the most recent calendar year reported as of July 1 by the Department of Labor;

(3) Base year means the year immediately before the year in which the application was submitted;

(4) Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the project;

(5) Compensation means the wages and other payments subject to withholding for federal income tax purposes;

(6) County average annual wage means the most recent average annual wage paid by all employers in a county or in the state, whichever is lower, for the most recent calendar year reported as of July 1 by the Department of Labor. County average annual wage for a project located in more than one county means the county average annual wages for each county in which the project is located, multiplied by the total of the average annual total employment for each county in which the project is located, summing the products for all counties in which the project is located, then dividing the result by the average annual total employment for all counties in which the project is located;

(7) Entitlement period means the year during which the required increases in employment, wages, and investment were met or exceeded and the next six years;

(8) Equivalent employees means the number computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year;

(9) Investment, for qualified property owned by the taxpayer, means the original cost of the property. Investment, for qualified property rented by the taxpayer, means the average net annual rent multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years or the end of the third year after the entitlement period, whichever is earlier. The rental of land included in and incidental to the leasing of a building is included in the computation;

(10) Labor force means the total annual average county labor force for the most recent calendar year reported as of July 1 by the Department of Labor;

(11) Motor vehicle means any motor vehicle, trailer, or semitrailer as defined in the Motor Vehicle Registration Act and subject to registration for operation on the highways;

(12) Number of new employees means the number of equivalent employees at the project during the year minus the number of equivalent employees during the base year;

(13)(a) Qualified business means any business engaged in the storage, warehousing, distribution, transportation, or sale of tangible personal property. Qualified business also means any business engaged in any of the following activities:

(i) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(ii) The performance of data processing, telecommunication, insurance, or financial services. Financial services for purposes of this subdivision only includes services provided by any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission;

(iii) The assembly, fabrication, manufacture, or processing of tangible personal property;

(iv) The administrative management of any activities, including headquarter facilities relating to such activities; or

(v) Any combination of the activities listed in subdivisions (13)(a)(i) through (iv) of this section;

(b) Qualified business does not include (i) any business activity in which eighty percent or more of the total sales are (A) sales to the ultimate consumer of food prepared for immediate consumption or (B) sales to the ultimate consumer of tangible personal property which is not assembled, fabricated, manufactured, or processed by the taxpayer or which is not used by the purchaser in any of the activities listed in subdivisions (13)(a)(i) through (v) of this section or (ii) a livestock operation. For purposes of this subdivision, livestock operation means the feeding or holding of beef cattle, dairy cattle, horses, swine, sheep, poultry, or other livestock in buildings, lots, or pens;

(14) Qualified employee leasing company means a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and client-lessee, grants to the client-lessee input into the hiring and firing of the employees leased to the client-lessee;

(15) Qualified property means any tangible property of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code, or the components of such property, that will be located and used at the project. Qualified property does not include (a) aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or (b) property that is rented by the taxpayer qualifying under the Rural Economic Opportunities Act to another person;

(16) Qualifying wage means the greater of one hundred twenty-five percent of the county average annual wage in the county or counties in which the project is located or one hundred percent of the regional average annual wage in the region or regions in which the project is located;

(17) Region means the following regions:

(a) Panhandle region, composed of the counties of Banner, Box Butte, Cheyenne, Dawes, Deuel, Garden, Kimball, Morrill, Scotts Bluff, Sheridan, and Sioux;

(b) Mid-plains region, composed of the counties of Arthur, Chase, Cherry, Dawson, Dundy, Frontier, Furnas, Gosper, Grant, Hayes, Hitchcock, Hooker, Keith, Lincoln, Logan, McPherson, Perkins, Red Willow, and Thomas;

(c) Central region, composed of the counties of Adams, Blaine, Buffalo, Clay, Custer, Franklin, Garfield, Greeley, Hall, Hamilton, Harlan, Howard, Kearney, Loup, Merrick, Nance, Nuckolls, Phelps, Sherman, Valley, Webster, and Wheeler;

(d) Northeast region, composed of the counties of Antelope, Boone, Boyd, Brown, Burt, Cedar, Colfax, Cuming, Dakota, Dixon, Dodge, Holt, Keya Paha, Knox, Madison, Pierce, Platte, Rock, Stanton, Thurston, and Wayne;

(e) Southeast region, composed of the counties of Butler, Fillmore, Gage, Jefferson, Johnson, Nemaha, Otoe, Pawnee, Polk, Richardson, Saline, Saunders, Seward, Thayer, and York;

(f) Omaha region, composed of the counties of Douglas, Sarpy, Cass, and Washington; and

(g) Lincoln region, composed of the county of Lancaster;

(18) Regional average annual wage, for a project located in one region, means the most recent average annual wage paid by all employers in the region for the most recent calendar year calculated by multiplying the average annual wage for each county in the region for the most recent calendar year reported as of July 1 by the Department of Labor by the corresponding average annual total employment in each county, summing the products for all counties in the region, and then dividing the result by the average annual total employment of all counties in the region. Regional average annual wage, for a project located in more than one region, means the regional average annual wage for each region in which the project is located, multiplied by the total of the average annual total employment for each region in which the project is located, the product then divided by the sum of the average annual total employment for the regions;

(19) Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under section 267(b) or (c) or 707(b) of the Internal Revenue Code;

(20) Taxpayer means any person subject to the sales and use taxes and an income tax imposed by the Nebraska Revenue Act of 1967; any corporation, partnership, limited liability company, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, which is, or whose partners, members, or owners are, subject to such tax; and any other partnership, limited liability company, subchapter S corporation, subchapter T cooperative, or joint venture when the partners, shareholders, or members are subject to such tax; and

(21) Year means the taxable year of the taxpayer.

Source:Laws 2000, LB 936, § 3;    Laws 2005, LB 274, § 281.    


Cross References

77-5404. Employee of qualified employee leasing company; how treated.

An employee of a qualified employee leasing company shall be considered to be an employee of the client-lessee for purposes of the Rural Economic Opportunities Act if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.

Source:Laws 2000, LB 936, § 4.    


77-5405. Incentives; application; fee; approval; written agreement.

(1) In order to use the incentives in the Rural Economic Opportunities Act, the taxpayer shall file an application for an agreement with the Tax Commissioner.

(2) The application shall contain:

(a) A written statement describing the plan of employment, wages, and investment for a qualified business in Nebraska;

(b) Sufficient documents, plans, and specifications as required by the Tax Commissioner to support the plan and define a project;

(c) If more than one location within the state is involved, sufficient documentation to show that the employment, wages, and investment at different locations are interdependent parts of the plan. A headquarters shall be presumed to be interdependent with any other location directly controlled by such headquarters. A showing that the parts of the plan would be considered parts of a unitary business for corporate income tax purposes shall not be sufficient to show interdependence for the purposes of this subdivision; and

(d) A nonrefundable application fee of five hundred dollars. The fee shall be deposited into the Nebraska Incentives Fund.

The application and all supporting information shall be confidential except for the name, location, and qualification level of approved projects and the information required to be reported by section 77-5412.

(3) The Tax Commissioner shall approve the application only if it satisfactorily meets the following conditions:

(a) Defines a project in one or more qualified business activities in the state;

(b) Shows that the project will result in (i) the hiring of a number of new employees equal to at least one-half of one percent of the labor force in the county or counties in which the project will be located, (ii) the paying of annual wages to the number of new employees that will average at least the qualifying wage, and (iii)(A) for a county or counties with a labor force greater than three thousand, the investment in qualified property of at least one hundred thousand dollars times one-half of one percent of the labor force in the county or counties in which the project will be located rounded to the nearest whole number or (B) for a county or counties with a labor force of three thousand or less, the investment in qualified property of at least fifty thousand dollars times one-half of one percent of the labor force in the county or counties in which the project will be located rounded to the nearest whole number; and

(c) Contains plans for achieving the required levels of employment, wages, and investment for the project prior to the end of the second year after the year in which the application is submitted and maintaining the required levels of employment, wages, and investment for the entitlement period.

(4) After approval, the taxpayer and Tax Commissioner shall enter into a written agreement. The taxpayer shall agree to complete the project, and the Tax Commissioner, on behalf of the State of Nebraska, shall designate the approved plans of the taxpayer as a project and, in consideration of the taxpayer's agreement, agree to allow the taxpayer to use the incentives contained in the Rural Economic Opportunities Act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The levels of employment, wages, and investment required by the act for the project based on the date of the application;

(b) The time period under the act in which the required levels must be met;

(c) The documentation the taxpayer will need to supply when claiming an incentive under the act;

(d) The date the application was filed; and

(e) That the required levels of employment, wages, and investment shall be achieved and maintained throughout the entitlement period or any incentives used will be subject to recapture.

(5) The incentives contained in section 77-5407 shall be in lieu of the tax credits allowed by sections 77-27,188 and 77-4105 for any project. Any employment, wages, or investment which is eligible for credits under the act shall be subtracted from the increases computed for determining the benefits under sections 77-27,188 and 77-4105.

(6) A taxpayer and the Tax Commissioner may enter into agreements for more than one project. The projects may be either sequential or concurrent. A project may involve the same location as another project. No new employment, new wages, or new investment shall be included in more than one project for either the meeting of the employment, wages, or investment requirements or the creation of credits. When projects overlap and the plans do not clearly specify, the taxpayer shall specify in which project the employment, wages, and investment belong.

Source:Laws 2000, LB 936, § 5;    Laws 2008, LB914, § 20.    


77-5406. Transactions and activities not eligible for incentives.

The following transactions or activities shall not create any credits or allow any benefits under the Rural Economic Opportunities Act:

(1) The acquisition of a business which is continued by the taxpayer and which was operated in this state during three hundred sixty-six days prior to the date of application or date of acquisition, whichever is later. All employees of the acquired business during such period shall be considered base-year employees, and the compensation paid during the base year or the year before acquisition, whichever is later, shall be the base-year compensation. Any investment in the acquisition of such business shall be considered as being made before the date of application;

(2) The moving of a business from one location to another when the business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such period shall be considered base-year employees;

(3) The purchase or lease of any property which was previously owned by the taxpayer or a related person. The first purchase by either the taxpayer or a related person shall be treated as investment if the property was first placed in service in this state after the date of application;

(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of any benefit or the meeting of any required employment, wages, and investment levels under the agreement;

(5) Any purchase or lease of property from a related person, except that the taxpayer will be allowed any benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the taxpayer; and

(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose other than the reduction of taxes and does not result in increased economic activity in the state.

Source:Laws 2000, LB 936, § 6.    


77-5407. Credits authorized.

Any taxpayer who qualifies for the incentives by adding the number of employees, wages, and investment required in section 77-5405 shall be entitled to:

(1) A credit equal to five percent of the amount by which the total compensation paid during the year exceeds the average compensation paid at the project multiplied by the number of equivalent base-year employees. For the computation of such credit, average compensation means the total compensation paid at the project divided by the total number of equivalent employees at the project; and

(2) A credit equal to ten percent of the investment made in qualified property at the project.

The credits prescribed in subdivisions (1) and (2) of this section shall be allowable for compensation paid and investments made during each year of the entitlement period that the taxpayer is at or above the required levels of employment, wages, and investment. The credits prescribed in subdivision (2) of this section shall also be allowable during the first year of the entitlement period for investment in qualified property at the project after the date of the application and before the required levels of employment, wages, and investment are met.

Source:Laws 2000, LB 936, § 7.    


77-5408. Credits; how used.

(1) The credits prescribed in section 77-5407 shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credits may be used after any other nonrefundable credits to reduce the taxpayer's income tax liability imposed by the Nebraska Revenue Act of 1967.

(2) The credits may be used as allowed in subsection (1) of this section and shall be applied in the order in which they were first allowed. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section.

(3) The credits may be carried over until fully used, except that credits may not be carried over more than three years after the end of the entitlement period.

Source:Laws 2000, LB 936, § 8.    


Cross References

77-5409. Recapture or disallowance of credits; procedure.

(1) If the taxpayer fails either to meet the required levels of employment, wages, or investment for the applicable project by the end of the second year after the end of the year the application was submitted for such project or to use such project in a qualified business at employment, wages, and investment levels at or above those required in the agreement for the entire entitlement period, all or a portion of the incentives set forth in the Rural Economic Opportunities Act shall be recaptured or disallowed.

(2) The recapture or disallowance shall be as follows:

(a) In the case of a taxpayer who failed to meet the required levels within the required time period, any reduction in the corporate income tax arising from the use of credits prescribed in section 77-5407 shall be deemed an underpayment of the income tax and shall be immediately due and payable; and

(b) In the case of a taxpayer who failed to maintain the project at the required levels of employment, wages, and investment for the entire entitlement period, any reduction in tax allowed because of the use of a credit allowed under section 77-5407 shall be partially recaptured from the taxpayer and any carryovers of credits shall be partially disallowed. One-seventh of the credits used shall be recaptured and one-seventh of the remaining carryovers shall be disallowed for each year the taxpayer did not maintain such project at or above the required levels of employment, wages, or investment.

(3) Any reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable. When tax benefits were received in more than one year, the tax benefits received in the most recent year shall be recovered first and then the benefits received in earlier years up to the extent of the required recapture.

(4) Notwithstanding any other limitations contained in the laws of this state, collections of any taxes deemed to be underpayments by this section shall be allowed for a period of ten years after the signing of the agreement or three years after the end of the entitlement period, whichever is later.

(5) Any amounts due under this section shall be recaptured notwithstanding other allowable credits and shall not be subsequently refunded under any provision of the act unless the recapture was in error.

(6) The recapture required by this section shall not occur if the failure to maintain the required levels of employment, wages, or investment was caused by an act of God or national emergency.

Source:Laws 2000, LB 936, § 9.    


77-5410. Incentives; transferable; when; effect.

(1) The incentives allowed under the Rural Economic Opportunities Act shall not be transferable except in the following situations:

(a) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a subchapter T cooperative, or an estate or trust may be distributed to the partners, members, shareholders, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities, and such partners, members, shareholders, or beneficiaries shall be deemed to have made an underpayment of their income taxes for any recapture required by section 77-5409; and

(b) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code.

(2) The acquiring taxpayer, as of the date of notification of the Tax Commissioner of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the act.

(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer by the repayment of any benefits received either before or after the transfer.

(4) If a taxpayer operating a project and allowed a credit under the act dies and there is a credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of the credit may be changed only after obtaining the permission of the Tax Commissioner.

Source:Laws 2000, LB 936, § 10.    


77-5411. Application; time of filing.

Any complete application filed on or after July 13, 2000, shall be considered a valid application on the date submitted for the purposes of the Rural Economic Opportunities Act.

Source:Laws 2000, LB 936, § 11.    


77-5412. Report; contents.

(1) The Tax Commissioner shall submit electronically an annual report to the Legislature no later than June 30 of each year.

(2) The report shall state by industry group (a) the credits earned, (b) the credits used to reduce the corporate income tax and the credits used to reduce the individual income tax, (c) the number of jobs created, (d) the total number of employees employed by taxpayers at qualifying projects on the last day of the calendar quarter prior to the application date and the total number of employees employed by the taxpayers for the projects on subsequent reporting dates, (e) the expansion of capital investment, (f) the estimated wage levels of jobs created subsequent to the application date, (g) the total number of qualified applicants, (h) the projected future state revenue gains and losses, and (i) the credits outstanding.

(3) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2000, LB 936, § 12;    Laws 2012, LB782, § 143.    


77-5413. Application; filing deadline.

There shall be no project applications filed on or after July 1, 2004, except that all project applications and all project agreements pending, approved, or entered into before such date shall continue in full force and effect.

Source:Laws 2000, LB 936, § 13.    


77-5414. Rules and regulations.

The Tax Commissioner may adopt and promulgate all rules and regulations necessary to carry out the Rural Economic Opportunities Act.

Source:Laws 2000, LB 936, § 14.    


77-5501. Act, how cited.

Sections 77-5501 to 77-5544 shall be known and may be cited as the Invest Nebraska Act.

Source:Laws 2001, LB 620, § 1.    


77-5502. Policy.

It is the policy of this state to enact appropriate legislation to encourage new businesses to relocate to and existing businesses to expand in Nebraska and to provide appropriate inducements to encourage new and existing businesses to do so. The goals of the policy, to be achieved in a manner that is both fiscally sound and effective, are (1) to aid in the economic and population growth of the state and (2) to assist in the creation of better jobs for the residents of the state.

Source:Laws 2001, LB 620, § 2.    


77-5503. Definitions, where found.

For purposes of the Invest Nebraska Act, the definitions found in sections 77-5504 to 77-5530 shall be used.

Source:Laws 2001, LB 620, § 3.    


77-5504. Additional definitions.

Any term defined in the Nebraska Revenue Act of 1967 and used in the Invest Nebraska Act has the same meaning in the Invest Nebraska Act unless the context requires a different meaning.

Source:Laws 2001, LB 620, § 4.    


Cross References

77-5505. Agreement, defined.

Agreement means the agreement between the company and the state.

Source:Laws 2001, LB 620, § 5.    


77-5506. Base year, defined.

Base year means the year immediately preceding the year in which the start date occurs.

Source:Laws 2001, LB 620, § 6.    


77-5507. Base-year employee, defined.

Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the company or its predecessors during the base year and who is employed at the project.

Source:Laws 2001, LB 620, § 7.    


77-5508. Board, defined.

Board means the Invest Nebraska Board, which shall consist of the Governor, the State Treasurer, and the chairperson of the Nebraska Investment Council.

Source:Laws 2001, LB 620, § 8.    


77-5509. Company, defined.

Company means (1) any person subject to sales and use taxes and either the income tax imposed by the Nebraska Revenue Act of 1967 or the franchise tax under sections 77-3801 to 77-3807, (2) any corporation, partnership, limited liability company, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, which is, or whose partners, members, or owners are, subject to such taxes, and any other partnership, limited liability company, subchapter S corporation, or joint venture when the partners, owners, shareholders, or members are subject to such taxes, (3) any cooperative exempt from such taxes under section 521 of the Internal Revenue Code of 1986, as amended, and (4) any limited cooperative association.

Source:Laws 2001, LB 620, § 9;    Laws 2007, LB368, § 138.    


Cross References

77-5510. Company training program, defined.

Company training program means any program developed or operated by or for the benefit of the company which screens, trains, or educates recruits, potential employees, or actual employees of the company, or any combination thereof, in order to enable the recruits or employees to perform employment activities at the project and includes recruitment, screening, customized training, job-specific training, on-the-job training, and generalized training programs.

Source:Laws 2001, LB 620, § 10.    


77-5511. Company workplace safety program, defined.

Company workplace safety program means any program used by the company to further the workplace safety of employees employed at the project.

Source:Laws 2001, LB 620, § 11.    


77-5512. Compensation, defined.

Compensation means the wages and other payments subject to withholding for federal income tax purposes.

Source:Laws 2001, LB 620, § 12.    


77-5513. Educational institution training program, defined.

Educational institution training program means any training program established by or conducted by any public or private educational institution that provides training or education for recruits, potential employees, or actual employees of the company, or any combination thereof, with regard to employment or potential employment at the project.

Source:Laws 2001, LB 620, § 13.    


77-5514. Employee, defined.

Employee means a person employed at the project. An employee of a qualified employee leasing company shall be deemed to be an employee of the client-lessee if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.

Source:Laws 2001, LB 620, § 14.    


77-5515. Employee benefit program, defined.

Employee benefit program means health and dental benefits, dependent care, life insurance, disability insurance, or relocation costs provided to or for the benefit of employees, which programs are qualified under the Internal Revenue Code of 1986, as amended.

Source:Laws 2001, LB 620, § 15.    


77-5516. Entitlement period, defined.

(1) Entitlement period is ten years, meaning the year during which the required increases in employment and investment were met or exceeded or that meets the conditions in subsection (2) of this section and the next one hundred eight months.

(2) Solely for the purpose of determining the first year of the entitlement period, if before the end of a year a company has reached the required level of new investment and has created the number of new jobs at the project equal to at least the applicable required level of new employment, but has not yet reached the required number of new employees because such employees have not been employed at the project yet for a full year, then the company may elect on its tax return for such year to be considered to have met the required levels of employment and investment during such year.

Source:Laws 2001, LB 620, § 16.    


77-5517. Equivalent employees, defined.

Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year.

Source:Laws 2001, LB 620, § 17.    


77-5518. Genetic information, defined.

Genetic information means information about a gene, gene product, or inherited characteristic derived from a genetic test.

Source:Laws 2001, LB 620, § 18.    


77-5519. Genetic test, defined.

Genetic test means the analysis of human DNA, RNA, and chromosomes and those proteins and metabolites used to detect heritable or somatic disease-related genotypes or karyotypes for clinical purposes. A genetic test must be generally accepted in the scientific and medical communities as being specifically determinative for the presence, absence, or mutation of a gene or chromosome in order to qualify under this definition. Genetic test does not include a routine physical examination or a routine analysis, including a chemical analysis, of body fluids unless conducted specifically to determine the presence, absence, or mutation of a gene or chromosome.

Source:Laws 2001, LB 620, § 19.    


77-5520. Investment, defined.

Investment means the value of qualified property incorporated into or used at the project after the date of the application. For qualified property owned by the company, the value is the original cost of the property. For qualified property rented by the company, the value is the average net annual rent multiplied by the number of years of the lease for which the company was originally bound, not to exceed ten years or the end of the third year after the entitlement period, whichever is earlier. The rental of land included in and incidental to the leasing of a building may be included by the company in the computation.

Source:Laws 2001, LB 620, § 20.    


77-5521. Nebraska average annual wage, defined.

Nebraska average annual wage means the most recent average annual wage paid by all employers in this state for the most recent calendar year as reported by the Department of Labor on or before the July 1 immediately prior to the beginning of the particular year the company applied for benefits for which such determination applies.

Source:Laws 2001, LB 620, § 21.    


77-5522. Number of new employees, defined.

Number of new employees means the excess of the number of equivalent employees employed at the project during a year over the number of equivalent employees during the base year.

Source:Laws 2001, LB 620, § 22.    


77-5523. Project, defined.

Project means a project described in the Invest Nebraska Act and approved by the board.

Source:Laws 2001, LB 620, § 23.    


77-5524. Project year, defined.

Project year means any year or portion of a year during the entitlement period of the project.

Source:Laws 2001, LB 620, § 24.    


77-5525. Qualified business, defined.

Qualified business means any business engaged in the activities listed in subdivisions (1) through (5) of this section or in the storage, warehousing, distribution, transportation, or sale of tangible personal property. Qualified business does not include any business activity in which eighty percent or more of the total sales are sales to the ultimate consumer of food prepared for immediate consumption or are sales to the ultimate consumer of tangible personal property which is not assembled, fabricated, manufactured, or processed by the company or used by the purchaser in any of the following activities:

(1) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(2) The performance of data processing, telecommunication, insurance, or financial services. Financial services, for purposes of this subdivision, shall only include financial services provided by a financial institution subject to tax under sections 77-3801 to 77-3807 or any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission;

(3) The assembly, fabrication, manufacture, or processing of tangible personal property;

(4) The administrative management of any activities, including headquarter facilities, relating to such activity; or

(5) Any combination of the activities listed in this section.

Source:Laws 2001, LB 620, § 25.    


77-5526. Qualified employee leasing company, defined.

Qualified employee leasing company means a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and a client-lessee, grants to the client-lessee input into the hiring and firing of the employees.

Source:Laws 2001, LB 620, § 26.    


77-5527. Qualified property, defined.

Qualified property means any tangible property of the type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property that will be located and used at the project. Qualified property does not include aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or property that is rented by the qualified company to another person.

Source:Laws 2001, LB 620, § 27.    


77-5528. Related persons, defined.

Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under section 267(b) and (c) of the Internal Revenue Code of 1986, as amended, or section 707(b) of the code.

Source:Laws 2001, LB 620, § 28.    


77-5529. Start date, defined.

Start date means the first date after the date of the application on which a qualified investment, that is either all or a part of a building in the project, is placed in service by the owner. For purposes of this definition, placed in service has the same meaning as that used for the Internal Revenue Code of 1986, as amended.

Source:Laws 2001, LB 620, § 29.    


77-5530. Year, defined.

Year means the taxable year of the company.

Source:Laws 2001, LB 620, § 30.    


77-5531. Wage benefit credit; calculation; use.

(1) The policy of the state in adopting the Invest Nebraska Act is to encourage new businesses to relocate to and existing businesses to expand in Nebraska and to provide appropriate inducements to encourage new and existing businesses to do so. Depending on the nature of the company and its employees, the state recognizes the inducements contained in the act may be more appropriate and administratively more convenient and efficient for the state, the company, and the employees, if the wage benefit credit is charged against the company's income tax or the company's withholding tax rather than individually computed and used against each employee's income tax. Therefor, if the company uses the wage benefit credit for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company as otherwise provided for in the act and if the board has approved the project application, then after entering into an agreement with the state, the company shall be allowed a wage benefit credit to be determined, used, and calculated as provided in this section.

(2) In order to help relieve the burden to government and to help promote the general welfare of citizens, the wage benefit credit used by the company shall be paid or applied by the company for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company. Such use of the wage benefit credit is declared as a matter of policy to be for a public purpose. Nothing in this section shall be construed to limit the right of an employee or employees subject to a collective bargaining agreement to negotiate relative to such programs.

(3) The wage benefit credit shall be an amount equal to the percentage specified in subsection (4) of this section multiplied by the amount of the total compensation paid during each project year to employees of the company while employed at the project, other than base-year employees, who have been paid compensation for such year by the company of at least the minimum amount required for such project under section 77-5536.

(4) The percentage used to determine the wage benefit credit shall be:
If the average compensation for the project year is over But not over Then the credit percentage shall be
$0 $20,000 0%
$20,000 $30,000 3%
$30,000 $40,000 4%
$40,000 5%

For purposes of determining the credit percentage for each respective project year, average compensation means the total compensation paid during the project year to all employees employed at the project regardless of their level of compensation divided by the total number of equivalent employees employed at the project during the project year regardless of their level of compensation.

(5) The wage benefit credit shall be allowed for each project year.

(6) The wage benefit credit shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credit may be used to reduce the company's Nebraska income tax liability.

(7) The company shall also be entitled to use all or such part as determined by the company of the wage benefit credits previously established under this section to reduce the company's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757 for succeeding years to the extent such liability is attributable to employees who are employed at the project covered by the agreement other than base-year employees. To the extent of the credit so claimed, such withholding shall not constitute public funds or state tax revenue and shall not constitute a trust fund or be owned by the state. In order to help achieve the public purposes of the Invest Nebraska Act, the use by the company of the wage benefit credits to reduce such income tax withholding tax liability shall not change the amount that otherwise would be reported by the company to the employee under section 77-2754 as income tax withheld and shall not reduce the amount that otherwise would be allowed by the state as a refundable credit on an employee's income tax return as income tax withheld under section 77-2755.

(8) The use of the wage benefit credit total as a credit against income tax withholding tax liability for the project per year shall not exceed five percent of the total compensation paid by the company in the year to all employees, other than base-year employees, for services rendered in connection with the project. If such use of the wage benefit credit exceeds such amount, the excess shall be returned to the Department of Revenue in the manner provided in section 77-2756.

(9) The credits shall be applied in the order in which they were first allowed. Any decision on how part of the credit is applied shall not limit how the remaining credit can be applied under this section. The credit may be carried over until fully utilized, except that the credit may not be carried over more than eight years after the end of the entitlement period. If a credit is subsequently recaptured under section 77-5538, the credit shall be treated as if it had never been allowed.

(10) The wage benefit credit shall not be transferable, except that any credit to be taken against the income tax liability of the company and allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, a joint venture, or an estate or trust may be distributed to the partners, members, shareholders, patrons, owners, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities.

Source:Laws 2001, LB 620, § 31.    


77-5532. Refund; interest disallowed.

Interest shall not be allowable on any refunds paid because of benefits earned under the Invest Nebraska Act.

Source:Laws 2001, LB 620, § 32.    


77-5533. Alternate investment tax credit; use.

(1) A company which has signed an agreement under section 77-5536 may receive, in lieu of any wage benefit credit otherwise allowed by the Invest Nebraska Act, the incentive provided in this section if the agreement is for a project which will result in the investment in qualified property of at least two hundred million dollars and the hiring of at least five hundred new employees. Such two hundred million dollar investment and hiring of at least five hundred new employees shall be considered the required levels of investment and employment for this section and for the recapture of the incentives of this section only.

(2) When the company has met the required levels of employment and investment contained in this section, the company shall be entitled to either the wage benefit credit provided in section 77-5531 or an investment tax credit equal to fifteen percent of the investment made in qualified property at the project. The company shall be required to state which option it will seek benefits under in the application for benefits under the act.

(3) The investment tax credit prescribed in this section shall be allowable for investments made during each year of the entitlement period that the company is at or above the required levels of employment and investment. The credit shall also be allowable during the first year of the entitlement period for investment in qualified property at the project after the date of the application and before the required levels of employment and investment were met.

(4) The investment tax credit prescribed in this section shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credits may be used to reduce the company's Nebraska income tax liability. The credits shall be applied in the order in which they were first allowed. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section. The credit may be carried over until fully utilized, except that the credit may not be carried over more than eight years after the end of the entitlement period. If a credit is subsequently recaptured under section 77-5538, the credit shall be treated as if it had never been allowed.

(5) The investment tax credit shall not be transferable, except that any credit to be taken against the income tax liability of the company and allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, a joint venture, or an estate or trust may be distributed to the partners, members, shareholders, patrons, owners, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities.

Source:Laws 2001, LB 620, § 33.    


77-5534. Application; contents; fee; confidentiality.

(1) In order for the company to be eligible for the wage benefit credit or the investment tax credit, as applicable, the company shall file an application for an agreement with the board.

(2) The application shall contain:

(a) The exact name of the company and any related companies which will be included in the project;

(b) A statement describing, in detail, the nature of the company's business, including the products sold and respective markets;

(c) A detailed narrative that describes the proposed project, including how the company intends to attain and maintain the job and investment requirements and the expected start date for the project;

(d) A request that the company be considered for approval under the Invest Nebraska Act;

(e) If more than one location within this state is to be involved in the project, sufficient documentation to show that the employment and investment at the different locations are interdependent parts of the project plan;

(f) A copy of the company's authorization for the project;

(g) A copy of the company's most recent financial report, federal income tax return, Nebraska income tax return, Nebraska reconciliation of income tax withheld, and Nebraska sales and use tax identification number;

(h) The expected number of base-year employees, the expected number of new employees, the expected timing of the hiring of the new employees, the anticipated timing and amounts of new investment in buildings and equipment, and the average salaries expected by category for the new employees to be employed at the project;

(i) A copy of the written policy of the company which prohibits the company from requiring as a condition of employment or promotion at the project that an employee or an individual applying for employment at the project submit to a genetic test or provide genetic information outside of the scope of normal blood testing; and

(j) A five-thousand-dollar nonrefundable application fee payable to the Department of Revenue. The fee shall be remitted to the Nebraska Incentives Fund.

(3) Any representations made by the company, or the company's representatives, during the meeting before the board shall become a part of the application. The application and all supporting information and information received during a closed session of the board shall be confidential except for the name of the company, the location of the project, the amounts of increased employment and investment, and whether the application has been approved. The confidential information contained in an application shall be discussed only in a closed session of the board, unless the company waives its right to confidentiality in writing. The members of the board will respect the confidentiality of the information received and will not disclose any confidential information regarding the company to any person other than the representatives of the company, the Tax Commissioner, or other employees of the Department of Revenue, except as specifically provided in the Invest Nebraska Act. Any applications, or parts of applications, provided to the members of the board shall be numbered copies and shall be delivered to the offices of the board members in a double envelope. All applications, or parts of applications, shall be returned to the department at the conclusion of the meeting.

Source:Laws 2001, LB 620, § 34;    Laws 2008, LB914, § 21.    


77-5535. Board; quorum; meetings; procedures.

(1) Any two members of the board shall constitute a quorum for the transaction of the business of the board. The Governor shall be the chairperson of the board. The address of the board is the Department of Revenue.

(2)(a) The Tax Commissioner is designated as the secretary of the board with the following responsibilities: The scheduling of a meeting when an application is to be considered; the publishing of the notices of the meeting according to the Invest Nebraska Act; the keeping of the minutes of the meetings and other records of the board; the notification of the applicant of the decision of the board; the receiving and entering into the record any written testimony concerning an application; and the consenting on behalf of the board to an extension of time within which the board is to make a decision.

(b) The Tax Commissioner shall give at least ten days' notice of meetings by publication in at least six newspapers across the state. The Tax Commissioner shall also give notice of meetings by publication in a newspaper that is local to the project area. A copy of the notice shall be posted in the State Capitol and a state office building in Lincoln. A copy of the notice shall be sent to the company. A news release shall be distributed by the Tax Commissioner.

(c) The Tax Commissioner shall notify the company in writing as to whether the board has approved or not approved the application. The board shall decide and such notice shall be mailed within sixty days after receipt of the application, unless such time is extended by mutual written consent of the Tax Commissioner and the company.

(3) The meeting of the board shall be recorded by a court reporter. The closed portion of the meeting shall be also recorded, and the record of that portion shall be sealed. The only persons who may attend the closed session of the board are the members of the board, the representatives of the company, other persons invited at the request of the company, the Tax Commissioner, other employees of the Department of Revenue, and the court reporter. Other persons, as necessary, may be invited by the board for the purpose of providing specific, confidential information. However, they may only attend the portion of the meeting necessary to provide the information requested by the board.

Source:Laws 2001, LB 620, § 35.    


77-5536. Application; approval; procedure.

(1) The board shall determine whether to approve the company's application by majority vote based on its determination as to whether the project will sufficiently help enable the state to accomplish the purposes of the Invest Nebraska Act. The board shall be governed by and shall take into consideration all of the following factors in making its determination:

(a) The timing, number, wage levels, employee benefit package, and types of new jobs to be created by the project;

(b) The type of industry in which the company and the project would be engaged;

(c) The timing, amount, and types of investment in qualified property to be made at the project; and

(d) Whether the board believes the project would occur in this state regardless of whether the application was approved.

(2) The weight given to each factor shall be determined by each board member individually for each application. The decision of the board shall be made in open meeting and is not confidential.

(3) A project shall be considered eligible under the act and may be approved by the board only if the application defines a project consistent with the purposes contained in section 77-5502 in one or more qualified business activities within this state that will result in (a) the investment in qualified property of at least ten million dollars and the hiring of a number of new employees of at least twenty-five. The investment and new employees for such project shall count towards attaining and maintaining such thresholds only if the qualified property is located in, and the employee's principal place of employment for the company is located in, one or more Nebraska counties having a population of less than one hundred thousand individuals as of the end of the base year. For this purpose, the population shall be conclusively determined by the Department of Revenue, (b) the investment in qualified property of at least fifty million dollars and the hiring of a number of new employees of at least five hundred, (c) the investment in qualified property of at least one hundred million dollars and the hiring of a number of new employees of at least two hundred fifty, or (d) the investment in qualified property of at least two hundred million dollars and the hiring of a number of new employees of at least five hundred.

(4) The new investment and employment shall occur within seven years, meaning by the end of the sixth year after the end of the year the application was filed, and shall be maintained for the entire entitlement period. These thresholds shall constitute the required levels of employment and investment for purposes of the act.

(5)(a) An individual employed by the company, other than a base-year employee, shall be considered an employee for purposes of attaining and maintaining the required number of new employees and shall be considered an employee whose compensation is included in the calculation of the wage benefit credit only if the compensation paid by the company to such employee for the year is (i) for companies qualifying under the ten million dollar investment and twenty-five new employee threshold under subdivision (3)(a) of this section, at least one hundred percent of the Nebraska average annual wage, (ii) for companies qualifying under the fifty million dollar investment and five hundred new employee threshold under subdivision (3)(b) of this section or the one hundred million dollar investment and two hundred fifty new employee threshold under subdivision (3)(c) of this section, at least one hundred ten percent of the Nebraska average annual wage; and (iii) for the companies applying under the two hundred million dollar investment and five hundred new employee threshold of subdivision (3)(d) of this section, at least one hundred twenty percent of the Nebraska average annual wage.

(b) For the purposes of subdivision (a) of this subsection, compensation paid by the company to such employee for the year shall be the amount paid for the entire year for regular hours worked, not including overtime, bonuses, or any other irregular payments. If the employee works for less than a year, the compensation paid will be annualized solely for the purpose of comparison with the Nebraska average annual wage.

(6) If the project application is approved by the board, the company and the state shall enter into a written agreement, which shall be executed on behalf of the state by the Tax Commissioner. In the agreement the company shall agree to complete the project and the state shall designate the approved plans of the company as a project and, in consideration of the company's agreement, agree to allow the wage benefit credit or the investment tax credit, as applicable, as provided for in the act. The application, and all supporting documentation, to the extent approved, shall be deemed a part of the agreement. The agreement shall contain such terms and conditions as the board shall specify in order to carry out the legislative purposes of the act. The agreement shall contain provisions to allow the Department of Revenue to verify that the required levels of employment and investment have been attained and maintained. The agreement shall contain provisions to require verification that the required levels have been attained before any credits are used. The agreement shall contain such other conditions or requirements, if any, for the company as established by the department to carry out the purposes of the act.

(7) Any investment or employment which is eligible for benefits under the Quality Jobs Act shall not be included in a project under the Invest Nebraska Act. A project under the Invest Nebraska Act may involve the same location as another project under the Invest Nebraska Act or under the Quality Jobs Act, except that no new employment or new investment shall be included in more than one project for either the meeting of the employment or investment requirements or the creation of tax incentives. When projects overlap and the project application does not otherwise clearly specify, the company shall specify in which project the employment and investment belongs.

(8) For applications for projects that are not receiving benefits under the Ethanol Development Act or applications filed before April 16, 2004, any employment or investment which is eligible for benefits under the Invest Nebraska Act may also be included in, and create incentives for, a project under the Employment and Investment Growth Act, the Nebraska Advantage Rural Development Act, and the Rural Economic Opportunities Act, to the extent otherwise allowable under such respective acts. For applications filed on or after April 16, 2004, a taxpayer that is receiving benefits under the Ethanol Development Act may not receive benefits under the Invest Nebraska Act for the project that generates the incentive under the Ethanol Development Act.

(9) In order to provide the degree of certainty necessary to enable a project to proceed, and notwithstanding any provision of Nebraska statute or common law to the contrary, to the extent any such right of appeal or challenge otherwise exists, no appeal or challenge of the board's decision by any person shall be filed after the expiration of thirty days after the board's decision.

Source:Laws 2001, LB 620, § 36;    Laws 2004, LB 479, § 10;    Laws 2005, LB 312, § 58.    


Cross References

77-5537. Employment practices prohibited.

A company entering into an agreement under the Invest Nebraska Act is prohibited from requiring as a condition of employment or promotion at the project that an employee or an individual applying for employment at the project submit to a genetic test or provide genetic information outside the scope of normal blood testing.

Source:Laws 2001, LB 620, § 37.    


77-5538. Tax credit; recapture or disallowance; interest and penalties.

(1) If the company fails to utilize a project in a qualified business at or above the required levels of employment and investment required in the Invest Nebraska Act for the entire entitlement period, a portion of the wage benefit credit or investment tax credit shall be recaptured directly by the state from the company or shall be disallowed. In no event shall any wage benefit credit be required to be paid back directly or indirectly by the employees, but instead shall be paid by the company.

(2) In the case of a company which has failed to maintain the project at the required levels of employment and investment for the entire entitlement period the recapture or disallowance shall be as follows: (a) No wage benefit credits or investment tax credits shall be allowed to the company for the actual year or years in which the required levels of employment or investment were not maintained; (b) for wage benefit credits or investment tax credits used, one-tenth of the credits shall be recaptured from the company for each year the required levels of employment or investment were not maintained; and (c) as to wage benefits credits or investment tax credits remaining at the end of the entitlement period, one-tenth of the credits shall be disallowed to the company for each year the required levels of employment or investment were not maintained in previous years.

(3)(a) Any amounts required to be recaptured shall be deemed to be an underpayment of tax, shall be immediately due and payable, and shall constitute a lien on the assets of the company. When wage benefit credits or investment tax credits were received in more than one year, the credits received in the most recent year shall be recovered first and then the credits received in earlier years up to the extent of the required recapture.

(b) In the case of a company which has failed to maintain the project at the required levels of employment and investment for the entire entitlement period, interest accrues from the due date for the return on which the credits being recaptured were used.

(c) Penalties for underpayment of withholding or income tax, as appropriate, do not accrue unless repayment is not made within ninety days after the requirement for recapture or disallowance becomes known or should have become known to the company.

(4) The recapture or disallowance required by this section may be waived by the board if the board finds the failure to attain or maintain the required levels of employment or investment was caused by unavoidable circumstances such as an act of God or national emergency.

(5) When recapture occurs with regard to any partnership, limited liability company, subchapter S corporation, joint venture, cooperative, or estate or trust, the partnership, limited liability company, subchapter S corporation, joint venture, cooperative, or estate or trust shall be liable for payment of the required recapture.

Source:Laws 2001, LB 620, § 38.    


77-5539. Transfer of project.

A project covered by an agreement may be transferred in its entirety by sale or lease to another person or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended. The acquiring persons shall be entitled to the same benefits as the original company and shall be subject to the same obligations, including recapture and disallowance of benefits received either before or after the transfer, as the original company would have been if the project was not transferred.

Source:Laws 2001, LB 620, § 39.    


77-5540. Transactions and activities excluded.

The following transactions or activities shall not create an investment, result in an increase in the number of new employees, or create any wage benefit credits or investment tax credits under the Invest Nebraska Act except as specifically allowed by this section:

(1) The acquisition of a business located in this state which is continued by the company and which was operated in this state during the three hundred sixty-six days prior to the date of application or the date of acquisition, whichever is later. All of the employees of the acquired business during such period shall be considered base-year employees. Any investment in the acquisition of such business shall be deemed to have been made before the date of application;

(2) The moving of a business from one location in this state to another, which business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such three hundred sixty-six days who become employed at the project shall be deemed base-year employees;

(3) The purchase or lease of any property which was previously owned by the company or a related person. The first purchase by either the company or a related person shall be treated as investment if the item was first placed in service in this state after the date of the application;

(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of the meeting of any required levels of investment under the agreement;

(5) Any purchase or lease of property from a related person, except that the company will be allowed benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the company; and

(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in this state.

Source:Laws 2001, LB 620, § 40.    


77-5541. Rules and regulations.

The Department of Revenue, in consultation with the Governor and the Department of Economic Development, may, but is not required to, adopt and promulgate all rules and regulations determined by the Tax Commissioner in his or her discretion to be necessary or appropriate to carry out the purposes of the Invest Nebraska Act.

Source:Laws 2001, LB 620, § 41.    


77-5542. Report; contents; joint hearing.

(1) The Department of Revenue shall submit electronically an annual report to the Legislature no later than July 15 each year. The report shall list (a) the agreements which have been signed during the previous calendar year, (b) the agreements which are still in effect, (c) the identity of each company, and (d) the location of each project. The department shall, on or before September 1 of each year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) The report shall also state by industry group (a) the amount of wage benefit credits and investment tax credits allowed under the Invest Nebraska Act, (b) the number of direct jobs created at the projects, (c) the amount of direct capital investment under the act, (d) the estimated wage levels of jobs created by the companies at the projects, (e) the estimated indirect jobs and investment created on account of the projects, and (f) the projected future state and local revenue gains and losses from all revenue sources on account of the direct and indirect jobs and investment created on account of the projects.

(3) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2001, LB 620, § 42;    Laws 2007, LB223, § 28;    Laws 2012, LB782, § 144;    Laws 2013, LB612, § 6.    


77-5543. Filing of applications; limitation.

(1) Except as provided in subsection (2) of this section, there shall be no project applications filed on or after June 1, 2005, without further authorization of the Legislature, except that all project applications and all project agreements pending, approved, or entered into before such date shall continue in full force and effect.

(2) There shall be no project applications for projects described in subdivision (3)(d) of section 77-5536 filed on or after October 1, 2002, without further authorization of the Legislature, except that all such project applications and all such project agreements pending, approved, or entered into before such date shall continue in full force and effect.

Source:Laws 2001, LB 620, § 43.    


77-5544. Audit; costs; confidentiality; violation; penalty.

(1) By January 1, 2005, and each January 1 every five years thereafter for so long as there are companies that have qualified for benefits and remain within the entitlement period and there are sufficient companies qualified for benefits so as not to reveal confidential information that allows identification of any company, there shall be an audit to determine compliance with the Invest Nebraska Act. The Tax Commissioner shall contract with a qualified independent accounting firm to conduct the audit. The cost of the audit shall be paid from funds appropriated to the Department of Revenue by the Legislature. Such cost shall include, in addition to the fees and costs of such independent firm, the incremental costs to the department to comply with this section, as determined by the department. If a qualified independent accounting firm cannot be located or engaged to conduct such audit, then such audit shall instead be performed by the department. A qualified independent firm shall be a firm that meets all of the following requirements: (a) The firm must be an accounting firm employing or comprised of at least ten certified public accountants who are licensed under the Public Accountancy Act to practice accounting and auditing in Nebraska; (b) the firm, at the time of the beginning of such audit, and for the period of at least twenty-four months before such audit commences, has not performed any services for any of the companies that at such time have filed applications under the Invest Nebraska Act, and the firm must agree not to engage in and to withdraw from representing any companies that file applications after such audit commences and before the audit report is issued; (c) the firm must have executed such audit contract as required by the Tax Commissioner; and (d) the firm, and all such accountants and personnel of such firm who will be involved in the audit, must have executed such confidentiality and nondisclosure agreements as required by the Tax Commissioner. In hiring such firm, the Tax Commissioner shall comply with all Nebraska laws pertaining to the selection and hiring of outside private sector services.

(2) The purpose of the audit is to examine information collected by the department in order to determine:

(a) The extent the data collected from the companies receiving benefits is verified;

(b) The extent to which the projects receiving benefits from the act are in compliance with the act initially and throughout the entitlement period;

(c) Whether the requirements of the act regarding the investment threshold have been attained and maintained by the companies;

(d) Whether and to what extent new employees are added by the companies to their workforce and employed at the project locations;

(e) Whether and to what extent the new jobs created meet the minimum compensation requirements of the act;

(f) The industry or industries in which the new jobs are created, by North American Industry Classification System Code;

(g) The extent to which the minimum new job threshold of the act has been attained and maintained by the companies;

(h) By category of spending, what is purchased by the companies that is claimed as qualified investments; and

(i) Gross sales from output of the project if reasonably determinable.

(3) After the audit is conducted, and on or before January 1, 2005, and each January 1 every five years thereafter, the auditor shall issue a report to the Legislature and Governor detailing the results of the audit. The report submitted to the Legislature shall be submitted electronically. The report shall be presented using aggregated information and other techniques so as not to reveal confidential information that allows identification of the company. The report shall not be issued until the Tax Commissioner has confirmed in writing that the report does not reveal any confidential information that allows identification of the company. For purposes of this section, confidential information includes all information that is (a) referred to as confidential in section 77-5534, (b) restricted from disclosure or treated as confidential under any federal or state law, or (c) provided by the company to the department in connection with the company's project under the act. The report shall detail all assumptions, methods, or models that were used in performing the analysis and shall report information by industry group or expenditure category so that further analysis can be performed. The firm shall have access to all records of the department with regard to the credits granted under the act and the companies receiving such credits. Such records shall remain confidential in the hands of the firm conducting the audit and shall not be revealed to any person that is not employed by the department or the firm conducting the audit. No officer or employee of the firm conducting the audit shall disclose any information to any other person if such information is protected by federal or state confidentiality laws. Notwithstanding any other provision of this section to the contrary, neither the independent accounting firm nor any of its personnel shall be provided by the department with any confidential information except to the extent and under conditions when the department is permitted without penalty to do so under applicable federal or state laws.

(4) All information provided by the department to the independent accounting firm shall be examined only on the premises of the department and shall be stored in a secure place. The firm shall make no copies of such information. Any qualified independent accounting firm, or any personnel of the firm, which violates this section shall be guilty of a Class IV felony and, in the discretion of the court, may be assessed the costs of prosecution.

(5) Nothing in this section shall be construed to require the company to provide, or require the department to obtain from the company, any information beyond that required as part of the application or beyond that required by the department to confirm the company is entitled to the benefits of the act or to obtain the information required in subsection (2) of this section. The independent accounting firm shall not request any information from the company or its personnel. The independent accounting firm shall be permitted and expected to obtain additional outside public information available from sources outside of the company and the department in order to comply with the requirements for the report if copies of all such data, information, and sources are made available to the public or included with the report.

(6) Information obtained in connection with the audit from either the department or the company is confidential and is not discoverable or admissible in evidence in any civil action, and no department or company personnel shall be compelled to testify in regard thereto. Such information may be discovered and be admissible, and testimony compelled in regard thereto, by the department or by the company in an action relating to the determination of whether the company is entitled to the benefits of the act.

Source:Laws 2001, LB 620, § 44;    Laws 2006, LB 1003, § 11;    Laws 2012, LB782, § 145.    


Cross References

77-5601. Tax amnesty program; application; department; powers and duties; Department of Revenue Enforcement Fund; created; use; investment.

(1) From August 1, 2004, through October 31, 2004, there shall be conducted a tax amnesty program with regard to taxes due and owing that have not been reported to the Department of Revenue. Any person applying for tax amnesty shall pay all unreported taxes that were due on or before April 1, 2004. Any person that applies for tax amnesty and is accepted by the Tax Commissioner shall have any penalties and interest waived on unreported and delinquent taxes notwithstanding any other provisions of law to the contrary.

(2) To be eligible for the tax amnesty provided by this section, the person shall apply for amnesty within the amnesty period, file a return for each taxable period for which the amnesty is requested by December 31, 2004, if no return has been filed, and pay in full all taxes for which amnesty is sought with the return or within thirty days after the application if a return was filed prior to the amnesty period. Tax amnesty shall not be available for any person that is under civil or criminal audit, investigation, or prosecution for unreported or delinquent taxes by this state or the United States Government on or before April 16, 2004.

(3) The department shall not seek civil or criminal prosecution against any person for any taxable period for which amnesty has been granted. The Tax Commissioner shall develop forms for applying for the tax amnesty program, develop procedures for qualification for tax amnesty, and conduct a public awareness campaign publicizing the program.

(4) If a person elects to participate in the amnesty program, the election shall constitute an express and irrevocable relinquishment of all administrative and judicial rights to challenge the imposition of the tax or its amount. Nothing in this section shall prohibit the department from adjusting a return as a result of any state or federal audit.

(5)(a) Except for any local option sales tax collected and returned to the appropriate municipality and any motor vehicle fuel, diesel fuel, and compressed fuel taxes, which shall be deposited in the Highway Trust Fund or Highway Allocation Fund as provided by law, no less than eighty percent of all revenue received pursuant to the tax amnesty program shall be deposited in the General Fund and ten percent, not to exceed five hundred thousand dollars, shall be deposited in the Department of Revenue Enforcement Fund. Any amount that would otherwise be deposited in the Department of Revenue Enforcement Fund that is in excess of the five-hundred-thousand-dollar limitation shall be deposited in the General Fund.

(b) For fiscal year 2005-06, all proceeds in the Department of Revenue Enforcement Fund shall be appropriated to the department for purposes of employing investigators, agents, and auditors and otherwise increasing personnel for enforcement of the Nebraska Revenue Act of 1967.

(c) For fiscal years after fiscal year 2005-06, twenty percent of all proceeds received during the previous calendar year due to the efforts of auditors and investigators hired pursuant to subdivision (5)(b) of this section, not to exceed seven hundred fifty thousand dollars, shall be deposited in the Department of Revenue Enforcement Fund for purposes of employing investigators and auditors or continuing such employment for purposes of increasing enforcement of the act.

(d) Ten percent of all proceeds received during each calendar year due to the contracts entered into pursuant to section 77-367 shall be deposited in the Department of Revenue Enforcement Fund for purposes of identifying nonfilers of returns, underreporters, nonpayers of taxes, and improper or fraudulent payments.

(6)(a) The department shall prepare a report by April 1, 2005, and by February 1 of each year thereafter detailing the results of the tax amnesty program and the subsequent enforcement efforts. For the report due April 1, 2005, the report shall include (i) the amount of revenue obtained as a result of the tax amnesty program broken down by tax program, (ii) the amount obtained from instate taxpayers and from out-of-state taxpayers, and (iii) the amount obtained from individual taxpayers and from business enterprises.

(b) For reports due in subsequent years, the report shall include (i) the number of personnel hired for purposes of subdivision (5)(b) of this section and their duties, (ii) a description of lists, software, programming, computer equipment, and other technological methods acquired and the purposes of each, and (iii) the amount of new revenue obtained as a result of the new personnel and acquisitions during the prior calendar year, broken down into the same categories as described in subdivision (6)(a) of this section.

(7) The Department of Revenue Enforcement Fund is created. Transfers may be made from the Department of Revenue Enforcement Fund to the General Fund at the direction of the Legislature. The Department of Revenue Enforcement Fund may receive transfers from the Civic and Community Center Financing Fund at the direction of the Legislature for the purpose of administering the Sports Arena Facility Financing Assistance Act. The Department of Revenue Enforcement Fund shall include any money credited to the fund (a) under section 77-2703, and such money shall be used by the Department of Revenue to defray the costs incurred to implement Laws 2019, LB237, (b) under the Mechanical Amusement Device Tax Act, and such money shall be used by the department to defray the costs incurred to implement and enforce Laws 2019, LB538, and any rules and regulations adopted and promulgated to carry out Laws 2019, LB538, and (c) under section 77-2906, and such money shall be used by the Department of Revenue to defray the costs incurred to implement Laws 2020, LB310. Any money in the Department of Revenue Enforcement Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(8) For purposes of this section, taxes mean any taxes collected by the department, including, but not limited to state and local sales and use taxes, individual and corporate income taxes, financial institutions deposit taxes, motor vehicle fuel, diesel fuel, and compressed fuel taxes, cigarette taxes, transfer taxes, and charitable gaming taxes.

Source:Laws 2004, LB 1017, § 23;    Laws 2009, First Spec. Sess., LB3, § 58;    Laws 2010, LB779, § 18;    Laws 2011, LB297, § 10;    Laws 2011, LB642, § 2;    Laws 2019, LB237, § 2;    Laws 2019, LB538, § 10;    Laws 2020, LB310, § 2.    


Cross References

77-5701. Act, how cited.

Sections 77-5701 to 77-5735 shall be known and may be cited as the Nebraska Advantage Act.

Source:Laws 2005, LB 312, § 23;    Laws 2008, LB895, § 6;    Laws 2009, LB403, § 10;    Laws 2012, LB1118, § 1.    


77-5702. Legislative findings.

The Legislature hereby finds and declares that it is the policy of this state to make revisions in Nebraska's tax structure in order to (1) encourage new businesses to relocate to Nebraska, (2) retain existing businesses and aid in their expansion, (3) promote the creation and retention of new, quality jobs in Nebraska, specifically jobs related to research and development, manufacturing, and large data centers, and (4) attract and retain investment capital in the State of Nebraska.

Source:Laws 2005, LB 312, § 24;    Laws 2014, LB836, § 3.    


77-5703. Definitions, where found.

For purposes of the Nebraska Advantage Act, the definitions found in sections 77-5704 to 77-5721 shall be used.

Source:Laws 2005, LB 312, § 25;    Laws 2008, LB895, § 7;    Laws 2012, LB1118, § 2.    


77-5704. Applicability of other definitions.

Any term shall have the same meaning as used in Chapter 77, article 27.

Source:Laws 2005, LB 312, § 26.    


Annotations

77-5705. Base year, defined.

Except for a tier 5 project that is sequential to a tier 2 large data center project, base year means the year immediately preceding the year of application. For a tier 5 project that is sequential to a tier 2 large data center project, the base year means the last year of the tier 2 large data center project entitlement period relating to sales tax exemptions.

Source:Laws 2005, LB 312, § 27;    Laws 2012, LB1118, § 4;    Laws 2022, LB1150, § 7.    


77-5706. Base-year employee, defined.

Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the project.

Source:Laws 2005, LB 312, § 28.    


77-5707. Compensation, defined.

Compensation means the wages and other payments subject to the federal medicare tax.

Source:Laws 2005, LB 312, § 29;    Laws 2010, LB918, § 1.    


77-5707.01. County average weekly wage, defined.

County average weekly wage for any year means the most recent average weekly wage paid by all employers in the county as reported by the Department of Labor by October 1 of the year prior to application.

Source:Laws 2008, LB895, § 8;    Laws 2013, LB34, § 1.    


77-5707.02. Data center, defined.

Data center means computers, supporting equipment, and other organized assembly of hardware or software that are designed to centralize the storage, management, or dissemination of data and information, environmentally controlled structures or facilities or interrelated structures or facilities that provide the infrastructure for housing the equipment, such as raised flooring, electricity supply, communication and data lines, Internet access, cooling, security, and fire suppression, and any building housing the foregoing. A data center also includes a facility described in this section for the co-location of computers.

Source:Laws 2012, LB1118, § 3.    


77-5708. Entitlement period, defined.

Entitlement period, for a tier 1 or tier 3 project, means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the ninth year following the year of application or the sixth year after the year the required increases were met or exceeded, whichever is sooner. Entitlement period, for a tier 2, tier 4, or tier 5 project, means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the sixth year after the year the required increases were met or exceeded. Entitlement period, for a tier 6 project, means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the ninth year after the year the required increases were met or exceeded.

Source:Laws 2005, LB 312, § 30;    Laws 2008, LB895, § 9.    


77-5709. Equivalent employees, defined.

Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year. A salaried employee who receives a predetermined amount of compensation each pay period on a weekly or less frequent basis is deemed to have been paid for forty hours per week during the pay period.

Source:Laws 2005, LB 312, § 31;    Laws 2013, LB34, § 2.    


77-5710. Investment, defined.

Investment means the value of qualified property incorporated into or used at the project. For qualified property owned by the taxpayer, the value shall be the original cost of the property. For qualified property rented by the taxpayer, the average net annual rent shall be multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation.

Source:Laws 2005, LB 312, § 32.    


77-5711. Motor vehicle, defined.

Motor vehicle means any motor vehicle, trailer, or semitrailer as defined in the Motor Vehicle Registration Act and subject to registration for operation on the highways.

Source:Laws 2005, LB 312, § 33.    


Cross References

77-5712. Nebraska average weekly wage, defined.

Nebraska average weekly wage for any year means the most recent average weekly wage paid by all employers in all counties in Nebraska as reported by the Department of Labor by October 1 of the year prior to application.

Source:Laws 2005, LB 312, § 34;    Laws 2008, LB895, § 10;    Laws 2013, LB34, § 3.    


77-5713. Nebraska employee, defined.

Nebraska employee means an individual who is either a resident or partial-year resident of Nebraska.

Source:Laws 2005, LB 312, § 35.    


77-5714. Number of new employees, defined.

(1) Number of new employees, for a tier 1, tier 2, tier 3, or tier 4 project, means the number of equivalent employees that are employed at the project during a year that are in excess of the number of equivalent employees during the base year, not to exceed the number of equivalent employees employed at the project during a year who are not base-year employees and who are paid wages at a rate equal to at least sixty percent of the Nebraska average weekly wage for the year of application.

(2) Number of new employees, for a tier 6 project, means the number of equivalent employees that are employed at the project during a year that are in excess of the number of equivalent employees during the base year, not to exceed the number of equivalent employees employed at the project during a year who are not base-year employees and who are paid at a rate equal to or greater than the tier 6 weekly required compensation for the year of application.

(3) Teleworkers working for wages or salaries in Nebraska from their residences for a taxpayer on tasks interdependent with the work performed at the project shall be considered to be employed at the project.

(4) Employees who work at a military installation in Nebraska for a taxpayer on tasks interdependent with the work performed at the project shall be considered to be employed at the project.

Source:Laws 2005, LB 312, § 36;    Laws 2008, LB895, § 11;    Laws 2009, LB164, § 3.    


77-5715. Qualified business, defined.

(1) For a tier 2, tier 3, tier 4, or tier 5 project, qualified business means any business engaged in:

(a) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(b) The performance of data processing, telecommunication, insurance, or financial services. For purposes of this subdivision, financial services includes only financial services provided by any financial institution subject to tax under Chapter 77, article 38, or any person or entity licensed by the Department of Banking and Finance or the federal Securities and Exchange Commission and telecommunication services includes community antenna television service, Internet access, satellite ground station, call center, or telemarketing;

(c) The assembly, fabrication, manufacture, or processing of tangible personal property;

(d) The administrative management of the taxpayer's activities, including headquarter facilities relating to such activities or the administrative management of any of the activities of any business entity or entities in which the taxpayer or a group of its shareholders holds any direct or indirect ownership interest of at least ten percent, including headquarter facilities relating to such activities;

(e) The storage, warehousing, distribution, transportation, or sale of tangible personal property;

(f) The sale of tangible personal property if the taxpayer derives at least seventy-five percent or more of the sales or revenue attributable to such activities relating to the project from sales to consumers who are not related persons and are located outside the state;

(g) The sale of software development services, computer systems design, product testing services, or guidance or surveillance systems design services or the licensing of technology if the taxpayer derives at least seventy-five percent of the sales or revenue attributable to such activities relating to the project from sales or licensing either to customers who are not related persons and located outside the state or to the United States Government, including sales of such services, systems, or products delivered by providing the customer with software or access to software over the Internet or by other electronic means, regardless of whether the software or data accessed by customers is stored on a computer owned by the applicant, the customer, or a third party and regardless of whether the computer storing the software or data is located at the project;

(h) The research, development, and maintenance of an Internet web portal. For purposes of this subdivision, Internet web portal means an Internet site that allows users to access, search, and navigate the Internet;

(i) The research, development, and maintenance of a data center;

(j) The production of electricity by using one or more sources of renewable energy to produce electricity for sale. For purposes of this subdivision, sources of renewable energy includes, but is not limited to, wind, solar, geothermal, hydroelectric, biomass, and transmutation of elements; or

(k) Any combination of the activities listed in this subsection.

(2) For a tier 1 project, qualified business means any business engaged in:

(a) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;

(b) The assembly, fabrication, manufacture, or processing of tangible personal property;

(c) The sale of software development services, computer systems design, product testing services, or guidance or surveillance systems design services or the licensing of technology if the taxpayer derives at least seventy-five percent of the sales or revenue attributable to such activities relating to the project from sales or licensing either to customers who are not related persons and are located outside the state or to the United States Government, including sales of such services, systems, or products delivered by providing the customer with software or access to software over the Internet or by other electronic means, regardless of whether the software or data accessed by customers is stored on a computer owned by the applicant, the customer, or a third party and regardless of whether the computer storing the software or data is located at the project; or

(d) Any combination of activities listed in this subsection.

(3) For a tier 6 project, qualified business means any business except a business excluded by subsection (4) of this section.

(4) Except for business activity described in subdivision (1)(f) of this section, qualified business does not include any business activity in which eighty percent or more of the total sales are sales to the ultimate consumer of (a) food prepared for immediate consumption or (b) tangible personal property which is not assembled, fabricated, manufactured, or processed by the taxpayer or used by the purchaser in any of the activities listed in subsection (1) or (2) of this section.

Source:Laws 2005, LB 312, § 37;    Laws 2007, LB223, § 29;    Laws 2008, LB895, § 12;    Laws 2009, LB164, § 4;    Laws 2010, LB918, § 2;    Laws 2012, LB1118, § 5;    Laws 2013, LB104, § 3.    


Annotations

77-5716. Qualified employee leasing company, defined.

Qualified employee leasing company means a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and a client-lessee, grants to the client-lessee input into the hiring and firing of the employees leased to the client-lessee.

Source:Laws 2005, LB 312, § 38.    


77-5717. Qualified property, defined.

Qualified property means any tangible property of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property, that will be located and used at the project. Qualified property does not include (1) aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or (2) property that is rented by the taxpayer qualifying under the Nebraska Advantage Act to another person. Qualified property of the taxpayer located at the residence of a teleworker working in Nebraska from his or her residence on tasks interdependent with the work performed at the project shall be deemed located and used at the project.

Source:Laws 2005, LB 312, § 39.    


77-5718. Related persons, defined.

Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under either section 267(b) and (c) or section 707(b) of the Internal Revenue Code of 1986, as amended.

Source:Laws 2005, LB 312, § 40.    


77-5719. Taxpayer, defined.

Taxpayer means any person subject to sales and use taxes under the Nebraska Revenue Act of 1967 and subject to withholding under section 77-2753 and any entity that is or would otherwise be a member of the same unitary group, if incorporated, that is subject to such sales and use taxes and such withholding. Taxpayer does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended. For purposes of this section, political subdivision includes any public corporation created for the benefit of a political subdivision and any group of political subdivisions forming a joint public agency, organized by interlocal agreement, or utilizing any other method of joint action.

Source:Laws 2005, LB 312, § 41;    Laws 2006, LB 1003, § 12;    Laws 2007, LB368, § 139;    Laws 2010, LB918, § 3;    Laws 2013, LB34, § 4.    


Cross References

77-5719.01. Tier 6 weekly required compensation, defined.

Tier 6 weekly required compensation means two hundred percent of the county average weekly wage for the county in which the project is located or one hundred fifty percent of the state average weekly wage, whichever is higher. If the project is located in more than one county, the higher county average weekly wage shall be used to determine the tier 6 weekly required compensation.

Source:Laws 2008, LB895, § 13.    


77-5719.02. Wages, defined.

Wages means compensation.

Source:Laws 2008, LB895, § 14.    


77-5720. Year, defined.

Year means calendar year.

Source:Laws 2005, LB 312, § 42;    Laws 2013, LB34, § 5.    


77-5721. Year of application, defined.

Year of application means the year that a completed application is filed under the Nebraska Advantage Act.

Source:Laws 2005, LB 312, § 43.    


77-5722. Qualified employee leasing company; employees; duty.

An employee of a qualified employee leasing company shall be considered to be an employee of the client-lessee for purposes of the Nebraska Advantage Act if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.

Source:Laws 2005, LB 312, § 44.    


77-5722.01. Employees; verification of status required; exclusion.

(1) The Tax Commissioner shall not approve or grant to any person any tax incentive under the Nebraska Advantage Act unless the taxpayer provides evidence satisfactory to the Tax Commissioner that the taxpayer electronically verified the work eligibility status of all newly hired employees employed in Nebraska.

(2) For purposes of calculating any tax incentive under the act, the Tax Commissioner shall exclude hours worked and compensation paid to an employee that is not eligible to work in Nebraska as verified under subsection (1) of this section.

(3) This section does not apply to any application filed under the Nebraska Advantage Act prior to October 1, 2009.

Source:Laws 2009, LB403, § 11.    


77-5723. Incentives; application; contents; fee; approval; when; agreements; contents; modification.

(1) In order to utilize the incentives set forth in the Nebraska Advantage Act, the taxpayer shall file an application, on a form developed by the Tax Commissioner, requesting an agreement with the Tax Commissioner.

(2) The application shall contain:

(a) A written statement describing the plan of employment and investment for a qualified business in this state;

(b) Sufficient documents, plans, and specifications as required by the Tax Commissioner to support the plan and to define a project;

(c) If more than one location within this state is involved, sufficient documentation to show that the employment and investment at different locations are interdependent parts of the plan. A headquarters shall be presumed to be interdependent with each other location directly controlled by such headquarters. A showing that the parts of the plan would be considered parts of a unitary business for corporate income tax purposes shall not be sufficient to show interdependence for the purposes of this subdivision;

(d) A nonrefundable application fee of one thousand dollars for a tier 1 project, two thousand five hundred dollars for a tier 2, tier 3, or tier 5 project, five thousand dollars for a tier 4 project, and ten thousand dollars for a tier 6 project. The fee shall be credited to the Nebraska Incentives Fund; and

(e) A timetable showing the expected sales tax refunds and what year they are expected to be claimed. The timetable shall include both direct refunds due to investment and credits taken as sales tax refunds as accurately as possible.

The application and all supporting information shall be confidential except for the name of the taxpayer, the location of the project, the amounts of increased employment and investment, and the information required to be reported by sections 77-5731 and 77-5734.

(3) An application must be complete to establish the date of the application. An application shall be considered complete once it contains the items listed in subsection (2) of this section, regardless of the Tax Commissioner's additional needs pertaining to information or clarification in order to approve or not approve the application.

(4) Once satisfied that the plan in the application defines a project consistent with the purposes stated in the Nebraska Advantage Act in one or more qualified business activities within this state, that the taxpayer and the plan will qualify for benefits under the act, and that the required levels of employment and investment for the project will be met prior to the end of the fourth year after the year in which the application was submitted for a tier 1, tier 3, or tier 6 project or the end of the sixth year after the year in which the application was submitted for a tier 2, tier 4, or tier 5 project, the Tax Commissioner shall approve the application. For a tier 5 project that is sequential to a tier 2 large data center project, the required level of investment shall be met prior to the end of the fourth year after the expiration of the tier 2 large data center project entitlement period relating to sales tax exemptions.

(5) The Tax Commissioner shall make his or her determination to approve or not approve an application within one hundred eighty days after the date of the application. If the Tax Commissioner requests, by mail or by electronic means, additional information or clarification from the taxpayer in order to make his or her determination, such one-hundred-eighty-day period shall be tolled from the time the Tax Commissioner makes the request to the time he or she receives the requested information or clarification from the taxpayer. The taxpayer and the Tax Commissioner may also agree to extend the one-hundred-eighty-day period. If the Tax Commissioner fails to make his or her determination within the prescribed one-hundred-eighty-day period, the application shall be deemed approved.

(6) Within one hundred eighty days after approval of the application, the Tax Commissioner shall prepare and mail a written agreement to the taxpayer for the taxpayer's signature. The taxpayer and the Tax Commissioner shall enter into a written agreement. The taxpayer shall agree to complete the project, and the Tax Commissioner, on behalf of the State of Nebraska, shall designate the approved plan of the taxpayer as a project and, in consideration of the taxpayer's agreement, agree to allow the taxpayer to use the incentives contained in the Nebraska Advantage Act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The levels of employment and investment required by the act for the project;

(b) The time period under the act in which the required levels must be met;

(c) The documentation the taxpayer will need to supply when claiming an incentive under the act;

(d) The date the application was filed; and

(e) A requirement that the company update the Department of Revenue annually on any changes in plans or circumstances which affect the timetable of sales tax refunds as set out in the application. If the company fails to comply with this requirement, the Tax Commissioner may defer any pending sales tax refunds until the company does comply.

(7) The incentives contained in section 77-5725 shall be in lieu of the tax credits allowed by the Nebraska Advantage Rural Development Act for any project. In computing credits under the act, any investment or employment which is eligible for benefits or used in determining benefits under the Nebraska Advantage Act shall be subtracted from the increases computed for determining the credits under section 77-27,188. New investment or employment at a project location that results in the meeting or maintenance of the employment or investment requirements, the creation of credits, or refunds of taxes under the Employment and Investment Growth Act shall not be considered new investment or employment for purposes of the Nebraska Advantage Act. The use of carryover credits under the Employment and Investment Growth Act, the Invest Nebraska Act, the Nebraska Advantage Rural Development Act, or the Quality Jobs Act shall not preclude investment and employment from being considered new investment or employment under the Nebraska Advantage Act. The use of property tax exemptions at the project under the Employment and Investment Growth Act shall not preclude investment not eligible for the property tax exemption from being considered new investment under the Nebraska Advantage Act.

(8) A taxpayer and the Tax Commissioner may enter into agreements for more than one project and may include more than one project in a single agreement. The projects may be either sequential or concurrent. A project may involve the same location as another project. No new employment or new investment shall be included in more than one project for either the meeting of the employment or investment requirements or the creation of credits. When projects overlap and the plans do not clearly specify, then the taxpayer shall specify in which project the employment or investment belongs.

(9) The taxpayer may request that an agreement be modified if the modification is consistent with the purposes of the act and does not require a change in the description of the project. An agreement may not be modified to a tier that would grant a higher level of benefits to the taxpayer or to a tier 1 project. Once satisfied that the modification to the agreement is consistent with the purposes stated in the act, the Tax Commissioner and taxpayer may amend the agreement. For a tier 6 project, the taxpayer must agree to limit the project to qualified activities allowable under tier 2 and tier 4.

Source:Laws 2005, LB 312, § 45;    Laws 2006, LB 1003, § 13;    Laws 2008, LB895, § 15;    Laws 2008, LB914, § 22;    Laws 2009, LB164, § 5;    Laws 2012, LB1118, § 6;    Laws 2013, LB34, § 6;    Laws 2022, LB1150, § 8.    


Cross References

77-5724. Incentives; credits or benefits; limitation.

The following transactions or activities shall not create any credits or allow any benefits under the Nebraska Advantage Act except as specifically allowed by this section:

(1) The acquisition of a business after the date of application which is continued by the taxpayer as a part of the project and which was operated in this state during the three hundred sixty-six days prior to the date of acquisition. All employees of the entities added to the taxpayer by the acquisition during the three hundred sixty-six days prior to the date of acquisition shall be considered employees during the base year. Any investment prior to the date of acquisition made by the entities added to the taxpayer by the acquisition or any investment in the acquisition of such business shall be considered as being made before the date of application;

(2) The moving of a business from one location to another, which business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such three hundred sixty-six days shall be considered base-year employees;

(3) The purchase or lease of any property which was previously owned by the taxpayer or a related person. The first purchase by either the taxpayer or a related person shall be treated as investment if the item was first placed in service in the state after the date of the application;

(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of any benefit or the meeting of any required levels under the agreement;

(5) Any purchase or lease of property from a related person, except that the taxpayer will be allowed any benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the taxpayer;

(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in the state; and

(7) Any activity that results in benefits under the Ethanol Development Act.

Source:Laws 2005, LB 312, § 46.    


Cross References

77-5725. Tiers; requirements; incentives; enumerated; deadlines.

(1) Applicants may qualify for benefits under the Nebraska Advantage Act in one of six tiers:

(a) Tier 1, investment in qualified property of at least one million dollars and the hiring of at least ten new employees. There shall be no new project applications for benefits under this tier filed after December 31, 2020. All complete project applications filed on or before December 31, 2020, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to completed project applications filed on or before December 31, 2020. All project agreements pending, approved, or entered into before such date shall continue in full force and effect;

(b) Tier 2, (i) investment in qualified property of at least three million dollars and the hiring of at least thirty new employees or (ii) for a large data center project, investment in qualified property for the data center of at least two hundred million dollars and the hiring for the data center of at least thirty new employees. There shall be no new project applications for benefits under this tier filed after December 31, 2020. All complete project applications filed on or before December 31, 2020, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to completed project applications filed on or before December 31, 2020. All project agreements pending, approved, or entered into before such date shall continue in full force and effect;

(c) Tier 3, the hiring of at least thirty new employees. There shall be no new project applications for benefits under this tier filed after December 31, 2020. All complete project applications filed on or before December 31, 2020, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to completed project applications filed on or before December 31, 2020. All project agreements pending, approved, or entered into before such date shall continue in full force and effect;

(d) Tier 4, investment in qualified property of at least ten million dollars and the hiring of at least one hundred new employees. There shall be no new project applications for benefits under this tier filed after December 31, 2020. All complete project applications filed on or before December 31, 2020, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to completed project applications filed on or before December 31, 2020. All project agreements pending, approved, or entered into before such date shall continue in full force and effect;

(e) Tier 5, (i) investment in qualified property of at least thirty million dollars or (ii) for the production of electricity by using one or more sources of renewable energy to produce electricity for sale as described in subdivision (1)(j) of section 77-5715, investment in qualified property of at least twenty million dollars. Failure to maintain an average number of equivalent employees as defined in section 77-5727 greater than or equal to the number of equivalent employees in the base year shall result in a partial recapture of benefits. There shall be no new project applications for benefits under this tier filed after December 31, 2020. All complete project applications filed on or before December 31, 2020, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to completed project applications filed on or before December 31, 2020. All project agreements pending, approved, or entered into before such date shall continue in full force and effect; and

(f) Tier 6, investment in qualified property of at least ten million dollars and the hiring of at least seventy-five new employees or the investment in qualified property of at least one hundred million dollars and the hiring of at least fifty new employees. There shall be no new project applications for benefits under this tier filed after December 31, 2020. All complete project applications filed on or before December 31, 2020, shall be considered by the Tax Commissioner and approved if the project and taxpayer qualify for benefits. Agreements may be executed with regard to completed project applications filed on or before December 31, 2020. All project agreements pending, approved, or entered into before such date shall continue in full force and effect.

(2) When the taxpayer has met the required levels of employment and investment contained in the agreement for a tier 1, tier 2, tier 4, tier 5, or tier 6 project, the taxpayer shall be entitled to the following incentives:

(a) A refund of all sales and use taxes for a tier 2, tier 4, tier 5, or tier 6 project or a refund of one-half of all sales and use taxes for a tier 1 project paid under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, and sections 13-319, 13-324, 13-2813, and 77-6403 from the date of the application through the meeting of the required levels of employment and investment for all purchases, including rentals, of:

(i) Qualified property used as a part of the project;

(ii) Property, excluding motor vehicles, based in this state and used in both this state and another state in connection with the project except when any such property is to be used for fundraising for or for the transportation of an elected official;

(iii) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the owner of the improvement to real estate when such property is incorporated into real estate as a part of a project. The refund shall be based on fifty percent of the contract price, excluding any land, as the cost of materials subject to the sales and use tax;

(iv) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the taxpayer when such property is annexed to, but not incorporated into, real estate as a part of a project. The refund shall be based on the cost of materials subject to the sales and use tax that were annexed to real estate; and

(v) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the taxpayer when such property is both (A) incorporated into real estate as a part of a project and (B) annexed to, but not incorporated into, real estate as a part of a project. The refund shall be based on fifty percent of the contract price, excluding any land, as the cost of materials subject to the sales and use tax; and

(b)(i) A refund of all sales and use taxes for a tier 2, tier 4, tier 5, or tier 6 project, excluding the tier 2 and tier 5 projects described in subdivision (2)(b)(ii) of this section, or a refund of one-half of all sales and use taxes for a tier 1 project paid under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, and sections 13-319, 13-324, 13-2813, and 77-6403 on the types of purchases, including rentals, listed in subdivision (a) of this subsection for such taxes paid during each year of the entitlement period in which the taxpayer is at or above the required levels of employment and investment; or

(ii) An exemption from all sales and use taxes for a tier 2 large data center project or a tier 5 project that is sequential to a tier 2 large data center project imposed under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, and sections 13-319, 13-324, 13-2813, and 77-6403 on the types of purchases, including rentals, listed in subdivision (a) of this subsection for such purchases, including rentals, occurring during each year of the entitlement period in which the taxpayer is at or above the required levels of employment and investment, except that the exemption shall be for the actual materials purchased with respect to subdivisions (2)(a)(iii), (iv), and (v) of this section. The Tax Commissioner shall issue such rules, regulations, certificates, and forms as are appropriate to implement the efficient use of this exemption.

(3) For agreements involving a tier 2 large data center project or a tier 5 project that is sequential to a tier 2 large data center project:

(a) Within sixty days after January 1, 2023, any taxpayer who meets the requirements of subsection (1) of section 77-2705.01 shall be issued a direct payment permit under section 77-2705.01, unless the taxpayer has opted out of this requirement. For any taxpayer who is issued a direct payment permit, until such taxpayer meets the required levels of employment and investment contained in the agreement, the taxpayer must pay and remit any applicable sales and use taxes as required by the Tax Commissioner. Any taxpayer who is issued a direct payment permit under this subdivision or who otherwise receives the benefit of any refunds or exemptions under this section shall comply with all data disclosure requirements in subsection (6) of section 77-27,144, including disclosures to a municipality which would have received sales and use taxes but for an exemption allowed under this section; and

(b) If the taxpayer meets the required levels of employment and investment contained in the agreement, the taxpayer shall receive the sales tax refunds described in subdivision (2)(a) of this section. For any year in which the taxpayer is not at the required levels of employment and investment, the taxpayer shall report all sales and use taxes owed for the period on the taxpayer's tax return.

(4) Any taxpayer who qualifies for a tier 1, tier 2, tier 3, or tier 4 project shall be entitled to a credit equal to three percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least sixty percent of the Nebraska average annual wage for the year of application. The credit shall equal four percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least seventy-five percent of the Nebraska average annual wage for the year of application. The credit shall equal five percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred percent of the Nebraska average annual wage for the year of application. The credit shall equal six percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred twenty-five percent of the Nebraska average annual wage for the year of application. For computation of such credit:

(a) Average annual wage means the total compensation paid to employees during the year at the project who are not base-year employees and who are paid wages equal to at least sixty percent of the Nebraska average weekly wage for the year of application, excluding any compensation in excess of one million dollars paid to any one employee during the year, divided by the number of equivalent employees making up such total compensation;

(b) Average wage of new employees means the average annual wage paid to employees during the year at the project who are not base-year employees and who are paid wages equal to at least sixty percent of the Nebraska average weekly wage for the year of application, excluding any compensation in excess of one million dollars paid to any one employee during the year; and

(c) Nebraska average annual wage means the Nebraska average weekly wage times fifty-two.

(5) Any taxpayer who qualifies for a tier 6 project shall be entitled to a credit equal to ten percent times the total compensation paid to all employees, other than base-year employees, excluding any compensation in excess of one million dollars paid to any one employee during the year, employed at the project.

(6) Any taxpayer who has met the required levels of employment and investment for a tier 2 or tier 4 project shall receive a credit equal to ten percent of the investment made in qualified property at the project. Any taxpayer who has met the required levels of investment and employment for a tier 1 project shall receive a credit equal to three percent of the investment made in qualified property at the project. Any taxpayer who has met the required levels of investment and employment for a tier 6 project shall receive a credit equal to fifteen percent of the investment made in qualified property at the project.

(7) The credits prescribed in subsections (4), (5), and (6) of this section shall be allowable for compensation paid and investments made during each year of the entitlement period that the taxpayer is at or above the required levels of employment and investment.

(8) The credit prescribed in subsection (6) of this section shall also be allowable during the first year of the entitlement period for investment in qualified property at the project after the date of the application and before the required levels of employment and investment were met.

(9)(a) Property described in subdivisions (9)(c)(i) through (v) of this section used in connection with a project or projects, whether purchased or leased, and placed in service by the taxpayer after the date the application was filed shall constitute separate classes of property and are eligible for exemption under the conditions and for the time periods provided in subdivision (9)(b) of this section.

(b)(i) A taxpayer who has met the required levels of employment and investment for a tier 4 project shall receive the exemption of property in subdivisions (9)(c)(ii), (iii), and (iv) of this section. A taxpayer who has met the required levels of employment and investment for a tier 6 project shall receive the exemption of property in subdivisions (9)(c)(ii), (iii), (iv), and (v) of this section. Such property shall be eligible for the exemption from the first January 1 following the end of the year during which the required levels were exceeded through the ninth December 31 after the first year property included in subdivisions (9)(c)(ii), (iii), (iv), and (v) of this section qualifies for the exemption.

(ii) A taxpayer who has filed an application that describes a tier 2 large data center project or a project under tier 4 or tier 6 shall receive the exemption of property in subdivision (9)(c)(i) of this section beginning with the first January 1 following the date the property was placed in service. The exemption shall continue through the end of the period property included in subdivisions (9)(c)(ii), (iii), (iv), and (v) of this section qualifies for the exemption.

(iii) A taxpayer who has filed an application that describes a tier 2 large data center project or a tier 5 project that is sequential to a tier 2 large data center project for which the entitlement period has expired shall receive the exemption of all property in subdivision (9)(c) of this section beginning any January 1 after the date the property was placed in service. Such property shall be eligible for exemption from the tax on personal property from the January 1 preceding the first claim for exemption approved under this subdivision through the ninth December 31 after the year the first claim for exemption is approved.

(iv) A taxpayer who has a project for an Internet web portal or a data center and who has met the required levels of employment and investment for a tier 2 project or the required level of investment for a tier 5 project, taking into account only the employment and investment at the web portal or data center project, shall receive the exemption of property in subdivision (9)(c)(ii) of this section. Such property shall be eligible for the exemption from the first January 1 following the end of the year during which the required levels were exceeded through the ninth December 31 after the first year any property included in subdivisions (9)(c)(ii), (iii), (iv), and (v) of this section qualifies for the exemption.

(v) Such investment and hiring of new employees shall be considered a required level of investment and employment for this subsection and for the recapture of benefits under this subsection only.

(c) The following property used in connection with such project or projects, whether purchased or leased, and placed in service by the taxpayer after the date the application was filed shall constitute separate classes of personal property:

(i) Turbine-powered aircraft, including turboprop, turbojet, and turbofan aircraft, except when any such aircraft is used for fundraising for or for the transportation of an elected official;

(ii) Computer systems, made up of equipment that is interconnected in order to enable the acquisition, storage, manipulation, management, movement, control, display, transmission, or reception of data involving computer software and hardware, used for business information processing which require environmental controls of temperature and power and which are capable of simultaneously supporting more than one transaction and more than one user. A computer system includes peripheral components which require environmental controls of temperature and power connected to such computer systems. Peripheral components shall be limited to additional memory units, tape drives, disk drives, power supplies, cooling units, data switches, and communication controllers;

(iii) Depreciable personal property used for a distribution facility, including, but not limited to, storage racks, conveyor mechanisms, forklifts, and other property used to store or move products;

(iv) Personal property which is business equipment located in a single project if the business equipment is involved directly in the manufacture or processing of agricultural products; and

(v) For a tier 2 large data center project or tier 6 project, any other personal property located at the project.

(d) In order to receive the property tax exemptions allowed by subdivision (9)(c) of this section, the taxpayer shall annually file a claim for exemption with the Tax Commissioner on or before May 1. The form and supporting schedules shall be prescribed by the Tax Commissioner and shall list all property for which exemption is being sought under this section. A separate claim for exemption must be filed for each project and each county in which property is claimed to be exempt. A copy of this form must also be filed with the county assessor in each county in which the applicant is requesting exemption. The Tax Commissioner shall determine whether a taxpayer is eligible to obtain exemption for personal property based on the criteria for exemption and the eligibility of each item listed for exemption and, on or before August 1, certify such to the taxpayer and to the affected county assessor.

(10)(a) The investment thresholds in this section for a particular year of application shall be adjusted by the method provided in this subsection, except that the investment threshold for a tier 5 project described in subdivision (1)(e)(ii) of this section shall not be adjusted.

(b) For tier 1, tier 2, tier 4, and tier 5 projects other than tier 5 projects described in subdivision (1)(e)(ii) of this section, beginning October 1, 2006, and each October 1 thereafter, the average Producer Price Index for all commodities, published by the United States Department of Labor, Bureau of Labor Statistics, for the most recent twelve available periods shall be divided by the Producer Price Index for the first quarter of 2006 and the result multiplied by the applicable investment threshold. The investment thresholds shall be adjusted for cumulative inflation since 2006.

(c) For tier 6, beginning October 1, 2008, and each October 1 thereafter, the average Producer Price Index for all commodities, published by the United States Department of Labor, Bureau of Labor Statistics, for the most recent twelve available periods shall be divided by the Producer Price Index for the first quarter of 2008 and the result multiplied by the applicable investment threshold. The investment thresholds shall be adjusted for cumulative inflation since 2008.

(d) For a tier 2 large data center project, beginning October 1, 2012, and each October 1 thereafter, the average Producer Price Index for all commodities, published by the United States Department of Labor, Bureau of Labor Statistics, for the most recent twelve available periods shall be divided by the Producer Price Index for the first quarter of 2012 and the result multiplied by the applicable investment threshold. The investment thresholds shall be adjusted for cumulative inflation since 2012.

(e) If the resulting amount is not a multiple of one million dollars, the amount shall be rounded to the next lowest one million dollars.

(f) The investment thresholds established by this subsection apply for purposes of project qualifications for all applications filed on or after January 1 of the following year for all years of the project. Adjustments do not apply to projects after the year of application.

Source:Laws 2005, LB 312, § 47;    Laws 2006, LB 1003, § 14;    Laws 2007, LB223, § 30;    Laws 2007, LB334, § 98;    Laws 2008, LB895, § 16;    Laws 2008, LB965, § 22;    Laws 2009, LB164, § 6;    Laws 2010, LB879, § 18;    Laws 2010, LB918, § 4;    Laws 2012, LB1118, § 7;    Laws 2013, LB104, § 4;    Laws 2014, LB1067, § 2;    Laws 2015, LB538, § 13;    Laws 2016, LB1022, § 9;    Laws 2017, LB217, § 23;    Laws 2019, LB472, § 16;    Laws 2022, LB1150, § 9.    


Cross References

Annotations

77-5726. Credits; use; refund claims; procedures; interest; appointment of purchasing agent; protest; appeal.

(1)(a) The credits prescribed in section 77-5725 for a year shall be established by filing the forms required by the Tax Commissioner with the income tax return for the taxable year which includes the end of the year the credits were earned. The credits may be used and shall be applied in the order in which they were first allowed. The credits may be used after any other nonrefundable credits to reduce the taxpayer's income tax liability imposed by sections 77-2714 to 77-27,135. Credits may be used beginning with the taxable year which includes December 31 of the year the required minimum levels were reached. The last year for which credits may be used is the taxable year which includes December 31 of the last year of the carryover period. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section.

(b) The taxpayer may use the credit provided in subsection (4) of section 77-5725 to reduce the taxpayer's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757 to the extent such liability is attributable to the number of new employees at the project, excluding any compensation in excess of one million dollars paid to any one employee during the year. The taxpayer may use the credit provided in subsection (5) of section 77-5725 to reduce the taxpayer's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757 to the extent such liability is attributable to all employees employed at the project, other than base-year employees and excluding any compensation in excess of one million dollars paid to any one employee during the year. To the extent of the credit used, such withholding shall not constitute public funds or state tax revenue and shall not constitute a trust fund or be owned by the state. The use by the taxpayer of the credit shall not change the amount that otherwise would be reported by the taxpayer to the employee under section 77-2754 as income tax withheld and shall not reduce the amount that otherwise would be allowed by the state as a refundable credit on an employee's income tax return as income tax withheld under section 77-2755.

For a tier 1, tier 2, tier 3, or tier 4 project, the amount of credits used against income tax withholding shall not exceed the withholding attributable to new employees employed at the project, excluding any compensation in excess of one million dollars paid to any one employee during the year.

For a tier 6 project, the amount of credits used against income tax withholding shall not exceed the withholding attributable to all employees employed at the project, other than base-year employees and excluding any compensation in excess of one million dollars paid to any one employee during the year.

If the amount of credit used by the taxpayer against income tax withholding exceeds this amount, the excess withholding shall be returned to the Department of Revenue in the manner provided in section 77-2756, such excess amount returned shall be considered unused, and the amount of unused credits may be used as otherwise permitted in this section or shall carry over to the extent authorized in subdivision (1)(e) of this section.

(c) Credits may be used to obtain a refund of sales and use taxes under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, and sections 13-319, 13-324, 13-2813, and 77-6403 which are not otherwise refundable that are paid on purchases, including rentals, for use at the project for a tier 1, tier 2, tier 3, or tier 4 project or for use within this state for a tier 2 large data center project or a tier 6 project.

(d) The credits earned for a tier 6 project may be used to obtain a payment from the state equal to the real property taxes due after the year the required levels of employment and investment were met and before the end of the carryover period, for real property that is included in such project and acquired by the taxpayer, whether by lease or purchase, after the date the application was filed. Once the required levels of employment and investment for a tier 2 large data center project have been met, the credits earned for a tier 2 large data center project may be used to obtain a payment from the state equal to the real property taxes due after the year of application and before the end of the carryover period, for real property that is included in such project and acquired by the taxpayer, whether by lease or purchase, after the date the application was filed. The payment from the state shall be made only after payment of the real property taxes have been made to the county as required by law. Payments shall not be allowed for any taxes paid on real property for which the taxes are divided under section 18-2147 or 58-507.

(e) Credits may be carried over until fully utilized, except that such credits may not be carried over more than nine years after the year of application for a tier 1 or tier 3 project, fourteen years after the year of application for a tier 2 or tier 4 project, or more than sixteen years past the end of the entitlement period for a tier 6 project.

(2)(a) No refund claims shall be filed until after the required levels of employment and investment have been met.

(b) Refund claims shall be filed no more than once each quarter for refunds under the Nebraska Advantage Act, except that any claim for a refund in excess of twenty-five thousand dollars may be filed at any time.

(c) Refund claims for materials purchased by a purchasing agent shall include:

(i) A copy of the purchasing agent appointment;

(ii) The contract price; and

(iii)(A) For refunds under subdivision (2)(a)(iii) or (2)(a)(v) of section 77-5725, a certification by the contractor or repairperson of the percentage of the materials incorporated into or annexed to the project on which sales and use taxes were paid to Nebraska after appointment as purchasing agent; or

(B) For refunds under subdivision (2)(a)(iv) of section 77-5725, a certification by the contractor or repairperson of the percentage of the contract price that represents the cost of materials annexed to the project and the percentage of the materials annexed to the project on which sales and use taxes were paid to Nebraska after appointment as purchasing agent.

(d) All refund claims shall be filed, processed, and allowed as any other claim under section 77-2708, except that the amounts allowed to be refunded under the Nebraska Advantage Act shall be deemed to be overpayments and shall be refunded notwithstanding any limitation in subdivision (2)(a) of section 77-2708. The refund may be allowed if the claim is filed within three years from the end of the year the required levels of employment and investment are met or within the period set forth in section 77-2708.

(e) If a claim for a refund of sales and use taxes under the Local Option Revenue Act or sections 13-319, 13-324, 13-2813, and 77-6403 of more than twenty-five thousand dollars is filed by June 15 of a given year, the refund shall be made on or after November 15 of the same year. If such a claim is filed on or after June 16 of a given year, the refund shall not be made until on or after November 15 of the following year. The Tax Commissioner shall notify the affected city, village, county, or municipal county of the amount of refund claims of sales and use taxes under the Local Option Revenue Act or sections 13-319, 13-324, 13-2813, and 77-6403 that are in excess of twenty-five thousand dollars on or before July 1 of the year before the claims will be paid under this section.

(f) Interest shall not be allowed on any taxes refunded under the Nebraska Advantage Act.

(3) The appointment of purchasing agents shall be recognized for the purpose of changing the status of a contractor or repairperson as the ultimate consumer of tangible personal property purchased after the date of the appointment which is physically incorporated into or annexed to the project and becomes the property of the owner of the improvement to real estate or the taxpayer. The purchasing agent shall be jointly liable for the payment of the sales and use tax on the purchases with the owner of the property.

(4) A determination that a taxpayer is not engaged in a qualified business or has failed to meet or maintain the required levels of employment or investment for incentives, exemptions, or recapture may be protested within sixty days after the mailing of the written notice of the proposed determination. If the notice of proposed determination is not protested within the sixty-day period, the proposed determination is a final determination. If the notice is protested, the Tax Commissioner shall issue a written order resolving such protests. The written order of the Tax Commissioner resolving a protest may be appealed to the district court of Lancaster County within thirty days after the issuance of the order.

Source:Laws 2005, LB 312, § 48;    Laws 2008, LB895, § 17;    Laws 2008, LB914, § 23;    Laws 2009, LB164, § 7;    Laws 2010, LB879, § 19;    Laws 2012, LB1118, § 8;    Laws 2013, LB34, § 7;    Laws 2017, LB161, § 1;    Laws 2019, LB472, § 17;    Laws 2022, LB1150, § 10.    


Cross References

77-5727. Recapture or disallowance of incentives.

(1)(a) If the taxpayer fails either to meet the required levels of employment or investment for the applicable project by the end of the fourth year after the end of the year the application was submitted for a tier 1, tier 3, or tier 6 project or by the end of the sixth year after the end of the year the application was submitted for a tier 2, tier 4, or tier 5 project or to utilize such project in a qualified business at employment and investment levels at or above those required in the agreement for the entire entitlement period, all or a portion of the incentives set forth in the Nebraska Advantage Act shall be recaptured or disallowed.

(b) In the case of a taxpayer who has failed to meet the required levels of investment or employment within the required time period, all reduction in the personal property tax because of the act shall be recaptured.

(2) In the case of a taxpayer who has failed to maintain the project at the required levels of employment or investment for the entire entitlement period, any reduction in the personal property tax, any refunds in tax or exemptions from tax allowed under subsection (2) of section 77-5725, and any refunds or reduction in tax allowed because of the use of a credit allowed under section 77-5725 shall be partially recaptured from either the taxpayer or the owner of the improvement to real estate and any carryovers of credits shall be partially disallowed. The amount of the recapture shall be a percentage equal to the number of years the taxpayer did not maintain the project at or above the required levels of investment and employment divided by the number of years of the project's entitlement period multiplied by the refunds and exemptions allowed, reduction in personal property tax, the credits used, and the remaining carryovers. In addition, the last remaining year of personal property tax exemption shall be disallowed for each year the taxpayer did not maintain such project at or above the required levels of employment or investment.

(3) In the case of a taxpayer qualified under tier 5 who has failed to maintain the average number of equivalent employees at the project at the end of the six years following the year the taxpayer attained the required amount of investment, any refunds or exemptions in tax allowed under subsection (2) of section 77-5725 or any reduction in the personal property tax under section 77-5725 shall be partially recaptured from the taxpayer. The amount of recapture shall be the total amount of refunds, exemptions, and reductions in tax allowed for all years times the reduction in the average number of equivalent employees employed at the end of the entitlement period from the number of equivalent employees employed in the base year divided by the number of equivalent employees employed in the base year. For purposes of this subsection, the average number of equivalent employees shall be calculated at the end of the entitlement period by adding the number of equivalent employees in the year the taxpayer attains the required level of investment and each of the next following six years and dividing the result by seven.

(4) If the taxpayer receives any refund, exemption, or reduction in tax to which the taxpayer was not entitled or which was in excess of the amount to which the taxpayer was entitled, the refund, exemption, or reduction in tax shall be recaptured separate from any other recapture otherwise required by this section. Any amount recaptured under this subsection shall be excluded from the amounts subject to recapture under other subsections of this section.

(5) Any refund, exemption, or reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable. When tax benefits were received in more than one year, the tax benefits received in the most recent year shall be recovered first and then the benefits received in earlier years up to the extent of the required recapture.

(6)(a) Except as provided in subdivision (6)(b) of this section, any personal property tax that would have been due except for the exemption allowed under the Nebraska Advantage Act, to the extent it becomes due under this section, shall be considered delinquent and shall be immediately due and payable to the county or counties in which the property was located when exempted.

(b) For a tier 2 large data center project, any personal property tax that would have been due except for the exemption under the Nebraska Advantage Act, together with interest at the rate provided in section 45-104.01 from the original delinquency date of the tax that would have been due until the date paid, to the extent it becomes due under this section, shall be considered delinquent and shall be immediately payable to the county or counties in which the property was located when exempted.

(c) All amounts received by a county under this section shall be allocated to each taxing unit levying taxes on tangible personal property in the county in the same proportion that the levy on tangible personal property of such taxing unit bears to the total levy of all of such taxing units.

(7) Notwithstanding any other limitations contained in the laws of this state, collection of any taxes deemed to be underpayments by this section shall be allowed for a period of three years after the end of the entitlement period.

(8) Any amounts due under this section shall be recaptured notwithstanding other allowable credits and shall not be subsequently refunded under any provision of the Nebraska Advantage Act unless the recapture was in error.

(9) The recapture required by this section shall not occur if the failure to maintain the required levels of employment or investment was caused by an act of God or national emergency.

Source:Laws 2005, LB 312, § 49;    Laws 2006, LB 1003, § 15;    Laws 2008, LB895, § 18;    Laws 2009, LB164, § 8;    Laws 2012, LB1118, § 9;    Laws 2022, LB1150, § 11.    


77-5728. Incentives; transfer; when; effect; disclosure of information.

(1) The incentives allowed under the Nebraska Advantage Act shall not be transferable except in the following situations:

(a) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, or an estate or trust may be distributed to the partners, members, shareholders, patrons, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities, and such partners, members, shareholders, or beneficiaries shall be deemed to have made an underpayment of their income taxes for any recapture required by section 77-5727. A credit distributed shall be considered a credit used and the partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, estate, or trust shall be liable for any repayment required by section 77-5727; and

(b) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended.

(2) The acquiring taxpayer, as of the date of notification of the Tax Commissioner of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the act.

(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer for the repayment of any benefits received either before or after the transfer.

(4) If a taxpayer operating a project and allowed a credit under the act dies and there is a credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of the credit may be changed only after obtaining the permission of the Tax Commissioner.

(5) The Department of Revenue may disclose information to the acquiring taxpayer about the project and prior benefits that is reasonably necessary to determine the future incentives and liabilities of the project.

Source:Laws 2005, LB 312, § 50;    Laws 2006, LB 1003, § 16;    Laws 2007, LB368, § 140;    Laws 2013, LB34, § 8.    


77-5729. Refunds; interest not allowable.

Interest shall not be allowable on any refunds paid because of benefits earned under the Nebraska Advantage Act.

Source:Laws 2005, LB 312, § 51.    


77-5730. Application; valid; when.

Any complete application shall be considered a valid application on the date submitted for the purposes of the Nebraska Advantage Act.

Source:Laws 2005, LB 312, § 52.    


77-5731. Reports; content; joint hearing.

(1) The Tax Commissioner shall submit electronically an annual report to the Legislature no later than October 31 of each year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Revenue shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) The report shall list (a) the agreements which have been signed during the previous year, (b) the agreements which are still in effect, (c) the identity of each taxpayer who is party to an agreement, and (d) the location of each project.

(3) The report shall also state, for taxpayers who are parties to agreements, by industry group (a) the specific incentive options applied for under the Nebraska Advantage Act, (b) the refunds and exemptions allowed on the investment, (c) the credits earned, (d) the credits used to reduce the corporate income tax and the credits used to reduce the individual income tax, (e) the credits used to obtain sales and use tax refunds, (f) the credits used against withholding liability, (g) the number of jobs created under the act, (h) the expansion of capital investment, (i) the estimated wage levels of jobs created under the act subsequent to the application date, (j) the total number of qualified applicants, (k) the projected future state revenue gains and losses, (l) the sales tax refunds owed, (m) the credits outstanding under the act, (n) the value of personal property exempted by class in each county under the act, (o) the value of property for which payments equal to property taxes paid were allowed in each county, and (p) the total amount of the payments.

(4) In estimating the projected future state revenue gains and losses, the report shall detail the methodology utilized, state the economic multipliers and industry multipliers used to determine the amount of economic growth and positive tax revenue, describe the analysis used to determine the percentage of new jobs attributable to the Nebraska Advantage Act assumption, and identify limitations that are inherent in the analysis method.

(5) The report shall provide an explanation of the audit and review processes of the department in approving and rejecting applications or the grant of incentives and in enforcing incentive recapture. The report shall also specify the median period of time between the date of application and the date the agreement is executed for all agreements executed by June 30 of the current year.

(6) The report shall provide information on project-specific total incentives used every two years for each approved project. The report shall disclose (a) the identity of the taxpayer, (b) the location of the project, and (c) the total credits used, exemptions used, and refunds approved during the immediately preceding two years expressed as a single, aggregated total. The incentive information required to be reported under this subsection shall not be reported for the first year the taxpayer attains the required employment and investment thresholds. The information on first-year incentives used shall be combined with and reported as part of the second year. Thereafter, the information on incentives used for succeeding years shall be reported for each project every two years containing information on two years of credits used, exemptions used, and refunds approved. The incentives used shall include incentives which have been approved by the department, but not necessarily received, during the previous two years.

(7) The report shall include an executive summary which shows aggregate information for all projects for which the information on incentives used in subsection (6) of this section is reported as follows: (a) The total incentives used by all taxpayers for projects detailed in subsection (6) of this section during the previous two years; (b) the number of projects; (c) the new jobs at the project for which credits have been granted; (d) the average compensation paid employees in the state in the year of application and for the new jobs at the project; and (e) the total investment for which incentives were granted. The executive summary shall summarize the number of states which grant investment tax credits, job tax credits, sales and use tax refunds or exemptions for qualified investment, and personal property tax exemptions and the investment and employment requirements under which they may be granted.

(8) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2005, LB 312, § 53;    Laws 2008, LB895, § 19;    Laws 2012, LB782, § 146;    Laws 2013, LB34, § 9;    Laws 2013, LB612, § 7;    Laws 2022, LB1150, § 12.    


77-5732. Repealed. Laws 2008, LB 914, § 29.

77-5733. Rules and regulations.

The Tax Commissioner may adopt and promulgate all rules and regulations necessary to carry out the purposes of the Nebraska Advantage Act.

Source:Laws 2005, LB 312, § 55.    


77-5734. Department of Revenue; estimate of sales and use tax refunds; duties.

The Department of Revenue shall, on or before the fifteenth day of October and February of every year and the fifteenth day of April in odd-numbered years, make an estimate of the amount of sales and use tax refunds to be paid under the Nebraska Advantage Act during the fiscal years to be forecast under section 77-27,158. The estimate shall be based on the most recent data available, including pending and approved applications and updates thereof as are required by subdivisions (2)(e) and (6)(e) of section 77-5723. The estimate shall be forwarded to the Legislative Fiscal Analyst and the Nebraska Economic Forecasting Advisory Board and made a part of the advisory forecast required by section 77-27,158.

Source:Laws 2005, LB 312, § 56;    Laws 2013, LB34, § 10.    


77-5735. Changes to sections; when effective; applicability.

(1) The changes made in sections 77-5703, 77-5708, 77-5712, 77-5714, 77-5715, 77-5723, 77-5725, 77-5726, 77-5727, and 77-5731 by Laws 2008, LB895, and sections 77-5707.01, 77-5719.01, and 77-5719.02 apply to all applications filed on and after April 18, 2008. For all applications filed prior to such date, the provisions of the Nebraska Advantage Act as they existed immediately prior to such date apply.

(2) The changes made in sections 77-5725 and 77-5726 by Laws 2010, LB879, apply to all applications filed on or after July 15, 2010. For all applications filed prior to such date, the taxpayer may make a one-time election, within the time period prescribed by the Tax Commissioner, to have the changes made in sections 77-5725 and 77-5726 by Laws 2010, LB879, apply to such taxpayer's application, or in the absence of such an election, the provisions of the Nebraska Advantage Act as they existed immediately prior to July 15, 2010, apply to such application.

(3) The changes made in sections 77-5707, 77-5715, 77-5719, and 77-5725 by Laws 2010, LB918, apply to all applications filed on or after July 15, 2010. For all applications filed prior to such date, the provisions of the Nebraska Advantage Act as they existed immediately prior to such date apply.

(4) The changes made in sections 77-5701, 77-5703, 77-5705, 77-5715, 77-5723, 77-5725, 77-5726, and 77-5727 by Laws 2012, LB1118, apply to all applications filed on or after March 8, 2012. For all applications filed prior to such date, the provisions of the Nebraska Advantage Act as they existed immediately prior to such date apply.

(5) The changes made in sections 77-5707.01, 77-5709, 77-5712, 77-5719, 77-5720, 77-5723, and 77-5726 by Laws 2013, LB34, apply to all applications filed on or after September 6, 2013. For all applications filed prior to such date, the provisions of the Nebraska Advantage Act as they existed immediately prior to such date apply.

(6) The changes made in section 77-5726 by Laws 2017, LB161, apply to all applications filed before, on, or after August 24, 2017.

(7) The changes made in sections 77-5705, 77-5723, 77-5725, 77-5726, and 77-5727 and in subsections (3), (6), and (7) of section 77-5731 by Laws 2022, LB1150, apply to any agreement entered into under the Nebraska Advantage Act that is still active on January 1, 2023, if the taxpayer makes a one-time election, within the time period prescribed by the Tax Commissioner, to have such changes apply to such taxpayer's agreement. In the absence of such an election, the provisions of such sections and subsections as they existed immediately prior to January 1, 2023, shall apply to such agreement. For each election made under this subsection, the Tax Commissioner shall disclose such election, the identity of the taxpayer, and the location of the taxpayer's project to each municipality in which the project is located. The Tax Commissioner shall make such disclosures within thirty days after the election.

Source:Laws 2008, LB895, § 20;    Laws 2010, LB879, § 20;    Laws 2010, LB918, § 5;    Laws 2012, LB1118, § 10;    Laws 2013, LB34, § 11;    Laws 2014, LB851, § 15;    Laws 2017, LB161, § 2;    Laws 2022, LB1150, § 13.    


77-5801. Act, how cited.

Sections 77-5801 to 77-5808 shall be known and may be cited as the Nebraska Advantage Research and Development Act.

Source:Laws 2005, LB 312, § 59;    Laws 2009, LB403, § 12;    Laws 2014, LB836, § 4.    


77-5801.01. Legislative findings.

The Legislature hereby finds and declares that it is the policy of this state to make revisions in Nebraska's tax structure in order to increase research and development in Nebraska.

Source:Laws 2014, LB836, § 5.    


77-5802. Business firm, defined.

For purposes of the Nebraska Advantage Research and Development Act, business firm means any business entity, including a corporation, a fiduciary, a sole proprietorship, a partnership, a joint venture, a limited liability company, or another private entity, that is subject to sales tax under section 77-2703. Business firm does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended.

Source:Laws 2005, LB 312, § 60.    


77-5803. Research tax credit; amount.

(1)(a) Except as provided in subdivision (1)(b) of this section, any business firm which makes expenditures in research and experimental activities as defined in section 174 of the Internal Revenue Code of 1986, as amended, in this state shall be allowed a research tax credit as provided in the Nebraska Advantage Research and Development Act. The credit amount under this subdivision shall equal fifteen percent of the federal credit allowed under section 41 of the Internal Revenue Code of 1986, as amended, or as apportioned to this state under subsection (2) of this section. The credit shall be allowed for the first tax year it is claimed and for each tax year following.

(b) Any business firm which makes expenditures in research and experimental activities as defined in section 174 of the Internal Revenue Code of 1986, as amended, on the campus of a college or university in this state or at a facility owned by a college or university in this state shall be allowed a research tax credit as provided in the Nebraska Advantage Research and Development Act. The credit amount under this subdivision shall equal thirty-five percent of the federal credit allowed under section 41 of the Internal Revenue Code of 1986, as amended, or as apportioned to this state under subsection (2) of this section. The credit shall be allowed for the first tax year it is claimed and for each tax year following.

(2) For any business firm doing business both within and without this state, the amount of the credit may be determined either by dividing the amount expended in research and experimental activities in this state in any tax year by the total amount expended in research and experimental activities or by apportioning the amount of the credit on the federal income tax return to the state based on the average of the property factor as determined in section 77-2734.12 and the payroll factor as determined in section 77-2734.13.

Source:Laws 2005, LB 312, § 61;    Laws 2007, LB223, § 31;    Laws 2008, LB915, § 7;    Laws 2009, LB555, § 1;    Laws 2012, LB983, § 1;    Laws 2023, LB727, § 95.    
Operative Date: September 2, 2023


77-5804. Research tax credit; use; interest.

(1) The credit allowed under section 77-5803 may be used to obtain a refund of state sales and use taxes paid, may be used against the income tax liability of the taxpayer, or may be used as a refundable credit claimed on an income tax return of the taxpayer. The return need not reflect any income tax liability owed by the taxpayer.

(2) A claim for the credit may be filed quarterly for refund of the state sales and use taxes paid, either directly or indirectly, after the filing of the income tax return for the tax year in which the credit was first allowed.

(3) The credit may be used to obtain a refund of state sales and use taxes paid before the end of the tax year for which the credit was allowed, except that the amount refunded under this subsection shall not exceed the amount of the state sales and use taxes paid, either directly or indirectly, by the taxpayer on the qualifying expenditures.

(4) Credits distributed to a partner, limited liability company member, shareholder, or beneficiary may be used against the income tax liability of the partner, member, shareholder, or beneficiary receiving the credits.

(5) Interest shall not be allowed on any taxes refunded under the Nebraska Advantage Research and Development Act.

Source:Laws 2005, LB 312, § 62;    Laws 2009, LB164, § 9.    


77-5805. Building materials; sales or use tax; presumption.

For purposes of subsections (2) and (3) of section 77-5804, the taxpayer shall be deemed to have paid indirectly any state sales or use taxes paid by a contractor on building materials annexed to an improvement to real estate built for the taxpayer. The contractor shall certify to the taxpayer the amount of the state sales and use taxes paid on the building materials, or the taxpayer, with the permission of the Tax Commissioner and a certification from the contractor that state sales and use taxes were paid on all building materials, may presume that forty percent of the cost of the improvement was for building materials annexed to real estate on which the tax was paid.

Source:Laws 2005, LB 312, § 63.    


77-5806. Applicability of act.

The Nebraska Advantage Research and Development Act shall be operative for all tax years beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended. No business firm shall be allowed to first claim the credit for any tax year beginning or deemed to begin after December 31, 2033, under the Internal Revenue Code of 1986, as amended.

Source:Laws 2005, LB 312, § 64;    Laws 2009, LB164, § 10;    Laws 2014, LB1067, § 3;    Laws 2015, LB538, § 14;    Laws 2016, LB1022, § 10;    Laws 2023, LB727, § 96.    
Operative Date: September 2, 2023


77-5807. Report; contents; joint hearing.

No later than October 31 of each year, the Tax Commissioner shall prepare a report stating the total amount of credits claimed on income tax returns or as refunds of sales and use tax during the previous fiscal year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Revenue shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request. No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2005, LB 312, § 65;    Laws 2013, LB612, § 8;    Laws 2022, LB1150, § 14.    


77-5808. Employees; verification of status required, when; research tax credit; calculation.

(1) This subsection shall apply for tax years beginning or deemed to begin on or after January 1, 2009, and before January 1, 2023. The Tax Commissioner shall not approve or grant to any person any tax incentive under the Nebraska Advantage Research and Development Act unless the taxpayer provides evidence satisfactory to the Tax Commissioner that the taxpayer electronically verified the work eligibility status of newly hired employees employed in Nebraska.

(2) This subsection shall apply for tax years beginning or deemed to begin on or after January 1, 2023. When calculating the research tax credit as provided in the Nebraska Advantage Research and Development Act, the qualified research expenses claimed in computing the federal credit allowed under section 41 of the Internal Revenue Code of 1986, as amended, shall be adjusted to the extent the taxpayer includes, in such qualified research expenses, compensation paid to an employee of such taxpayer hired during or after the first tax year for which the Nebraska Advantage Research and Development Act credit is claimed by such firm and to the extent such compensation is subject to Nebraska income tax. Such compensation, for the tax year in which the credit is being claimed, shall be deducted from the taxpayer's qualified research expenses unless such employee was verified as eligible to work in the United States using the federal E-Verify system within ninety days after the date of hire of such employee or such longer period as may be permitted under the rules of the federal E-Verify system. Such verification may be performed by the taxpayer or by someone on the taxpayer's behalf.

Source:Laws 2009, LB403, § 13;    Laws 2023, LB727, § 97.    
Operative Date: September 2, 2023


77-5901. Act, how cited.

Sections 77-5901 to 77-5908 shall be known and may be cited as the Nebraska Advantage Microenterprise Tax Credit Act.

Source:Laws 2005, LB 312, § 66;    Laws 2009, LB403, § 14.    


77-5902. Act; administration; purpose.

The Nebraska Advantage Microenterprise Tax Credit Act shall be administered by the Department of Revenue. The purpose of the act is to provide tax credits to applicants for creating or expanding microbusinesses that contribute to the state's economy through the creation of new or improved income, self-employment, or other new jobs.

Source:Laws 2005, LB 312, § 67;    Laws 2017, LB217, § 24.    


77-5903. Terms, defined.

For purposes of the Nebraska Advantage Microenterprise Tax Credit Act:

(1) Actively engaged in the operation of a microbusiness means personal involvement on a continuous basis in the daily management and operation of the business;

(2) Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year;

(3) Microbusiness means any business employing five or fewer equivalent employees at the time of application. Microbusiness does not include a farm or livestock operation unless (a) the person actively engaged in the operation of the microbusiness has a net worth of not more than five hundred thousand dollars, including any holdings by a spouse or dependent, based on fair market value, or (b) the investment or employment is in the processing or marketing of agricultural products, aquaculture, agricultural tourism, or the production of fruits, herbs, tree products, vegetables, tree nuts, dried fruits, organic crops, or nursery crops;

(4) New employment means the amount by which the total compensation plus the employer cost for health insurance for employees paid during the tax year to or for employees who are Nebraska residents exceeds the total compensation paid plus the employer cost for health insurance for employees to or for employees who are Nebraska residents in the tax year prior to application. New employment does not include compensation to any employee that is in excess of one hundred fifty percent of the Nebraska average weekly wage. Nebraska average weekly wage means the most recent average weekly wage paid by all employers as reported by October 1 by the Department of Labor;

(5) New investment means the increase during the tax year over the year prior to the application in the applicant's (a) purchases of buildings and depreciable personal property located in Nebraska, (b) expenditures on repairs and maintenance on property located in Nebraska, neither subdivision (a) or (b) of this subdivision to include vehicles required to be registered for operation on the roads and highways of this state, and (c) expenditures on advertising, legal, and professional services. If the buildings or depreciable personal property is leased, the amount of new investment shall be the increase in average net annual rents multiplied by the number of years of the lease for which the taxpayer is bound, not to exceed ten years;

(6) Related persons means (a) any corporation, partnership, limited liability company, cooperative, including cooperatives exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture which is or would otherwise be a member of the same unitary group, if incorporated, (b) an individual and a corporation if more than fifty percent in value of the outstanding stock of the corporation is owned, directly or indirectly, by or for such individual, (c) a fiduciary of a trust and a corporation if more than fifty percent in value of the outstanding stock of the corporation is owned, directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust, (d) a corporation and a partnership if the same persons own (i) more than fifty percent in value of the outstanding stock of the corporation and (ii) more than fifty percent of the capital interest, or the profits interest, in the partnership, (e) a subchapter S corporation and another subchapter S corporation if the same persons own more than fifty percent in value of the outstanding stock of each corporation, (f) a subchapter S corporation and a C corporation if the same persons own more than fifty percent in value of the outstanding stock of each corporation, (g) a partnership and a person owning, directly or indirectly, more than fifty percent of the capital interest, or the profits interest, in such partnership, (h) two partnerships in which the same persons own, directly or indirectly, more than fifty percent of the capital interests or profits interests, and (i) any individual who is a parent, if the taxpayer is a minor, or minor son or daughter of the taxpayer; and

(7) Taxpayer means any person subject to the income tax imposed by the Nebraska Revenue Act of 1967, any corporation, partnership, limited liability company, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, which is, or whose partners, members, or owners representing an ownership interest of at least ninety percent of such entity are, subject to such tax, and any other partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, or joint venture when the partners, shareholders, or members representing an ownership interest of at least ninety percent of such entity are subject to such tax.

The changes made to this section by Laws 2008, LB 177, shall be operative for all applications for benefits received on or after July 18, 2008.

The changes made to this section by Laws 2021, LB366, shall apply to all applications for benefits received on or after August 28, 2021.

Source:Laws 2005, LB 312, § 68;    Laws 2006, LB 1003, § 17;    Laws 2007, LB368, § 141;    Laws 2008, LB177, § 1;    Laws 2009, LB531, § 1;    Laws 2015, LB246, § 1;    Laws 2017, LB217, § 25;    Laws 2021, LB366, § 1.    


Cross References

77-5904. Tax credit; application; contents; advisory committee.

(1) The Department of Revenue shall accept applications for tax credits from taxpayers who are actively engaged in the operation of a microbusiness or who will establish a microbusiness that they will actively operate within the current or subsequent tax year. Applications shall be filed by November 1 and shall be complete by December 1 of each calendar year. Any application that is filed after November 1 or that is not complete on December 1 shall be considered to be filed during the following calendar year.

(2) The department may convene an advisory committee of individuals with expertise in small business development, lending, and community development to evaluate applications and advise the department in authorizing tentative tax credits.

(3) The application shall be on a form developed by the department and shall contain:

(a) A description of the microbusiness;

(b) The projected income and expenditures;

(c) The market to be served by the microbusiness and the way the expansion addresses the market;

(d) The amount of projected investment or employment increase that would generate the credit;

(e) The projected improvement in income or creation of new self-employment or other jobs;

(f) The nature of the applicant's engagement in the operation of the microbusiness; and

(g) Other documents, plans, and specifications as required by the department.

Source:Laws 2005, LB 312, § 69;    Laws 2007, LB223, § 32;    Laws 2017, LB217, § 26.    


77-5905. Applications; approval; limit.

(1) If the Department of Revenue determines that an application meets the requirements of section 77-5904 and that the investment or employment is eligible for the credit and (a) the applicant is actively engaged in the operation of the microbusiness or will be actively engaged in the operation upon its establishment, (b) the applicant will make new investment or employment in the microbusiness, and (c) the new investment or employment will create new income or jobs, the department shall approve the application and authorize tentative tax credits to the applicant within the limits set forth in this section and certify the amount of tentative tax credits approved for the applicant. Applications for tax credits shall be considered in the order in which they are received.

(2) The department may approve applications up to the adjusted limit for each calendar year beginning January 1, 2006, through December 31, 2032. After applications totaling the adjusted limit have been approved for a calendar year, no further applications shall be approved for that year. The adjusted limit in a given year is two million dollars plus tentative tax credits that were not granted by the end of the preceding year. Tax credits shall not be allowed for a taxpayer receiving benefits under the Employment and Investment Growth Act, the Nebraska Advantage Act, the Nebraska Advantage Rural Development Act, the ImagiNE Nebraska Act, or the Urban Redevelopment Act.

Source:Laws 2005, LB 312, § 70;    Laws 2009, LB164, § 11;    Laws 2014, LB1067, § 4;    Laws 2015, LB538, § 15;    Laws 2016, LB1022, § 11;    Laws 2017, LB217, § 27;    Laws 2020, LB1107, § 138;    Laws 2021, LB366, § 2;    Laws 2021, LB544, § 34.    


Cross References

77-5906. Tax credit; amount; claim; expiration; interest.

(1) Taxpayers shall be entitled to refundable tax credits for the taxpayer's new investment or new employment in the microbusiness during the tax year. The tax credits shall be equal to:

(a) Twenty percent of the taxpayer's new investment; and

(b) Twenty percent of the taxpayer's new employment.

(2) The total amount of tax credits shall not exceed the amount of tentative tax credits approved by the department under section 77-5905.

(3) The taxpayer shall claim the tax credit by filing a form developed by the Tax Commissioner and attaching the tentative tax credit certification granted by the department. Tentative tax credits expire after the end of the tax year following the year the tentative tax credit was certified.

(4) The total lifetime tax credits claimed by any one taxpayer and any related person under the Nebraska Advantage Microenterprise Tax Credit Act shall be limited to twenty thousand dollars.

(5) Interest shall not be allowed on any taxes refunded under the act.

(6) The changes made to this section by Laws 2021, LB366, shall apply to all applications for benefits received on or after August 28, 2021.

Source:Laws 2005, LB 312, § 71;    Laws 2009, LB164, § 12;    Laws 2021, LB366, § 3.    


77-5907. Report; contents; joint hearing.

(1) The Tax Commissioner shall prepare a report identifying the following aggregate amounts for the previous fiscal year: (a) The amount of projected employment and investment anticipated by taxpayers receiving tentative tax credits and the tentative tax credits granted; (b) the actual amount of employment and investment made by taxpayers that were granted tentative tax credits in the previous fiscal year; (c) the tax credits used; and (d) the tentative tax credits that expired. The report shall be issued on or before October 31 of each year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Revenue shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) Beginning with applications filed on or after August 28, 2021, the report shall provide information on project-specific total credits used every two years for each approved application and shall disclose (a) the identity of the taxpayer, (b) the location or locations where the taxpayer is earning credits, (c) the new investment or new employment that was actually produced by the taxpayer to earn credits, and (d) the total credits used during the immediately preceding two years, expressed as a single, aggregated total.

(3) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2005, LB 312, § 72;    Laws 2013, LB612, § 9;    Laws 2021, LB366, § 4;    Laws 2022, LB1150, § 15.    


77-5908. Employees; verification of status required; exclusion.

(1) The Tax Commissioner shall not approve or grant to any person any tax incentive under the Nebraska Advantage Microenterprise Tax Credit Act unless the taxpayer provides evidence satisfactory to the Tax Commissioner that the taxpayer electronically verified the work eligibility status of all newly hired employees employed in Nebraska.

(2) For purposes of calculating any tax incentive available under the act, the Tax Commissioner shall exclude the hours worked and compensation paid to an employee that is not eligible to work in Nebraska as verified under subsection (1) of this section.

(3) This section does not apply to any application filed under the act prior to October 1, 2009.

Source:Laws 2009, LB403, § 15.    


77-6001. Repealed. Laws 2009, LB 154, § 27.

77-6002. Repealed. Laws 2009, LB 154, § 27.

77-6003. Repealed. Laws 2009, LB 154, § 27.

77-6004. Repealed. Laws 2009, LB 154, § 27.

77-6005. Repealed. Laws 2009, LB 154, § 27.

77-6006. Repealed. Laws 2009, LB 154, § 27.

77-6007. Repealed. Laws 2009, LB 154, § 27.

77-6101. Act, how cited.

Sections 77-6101 to 77-6106 shall be known and may be cited as the Long-Term Care Savings Plan Act.

Source:Laws 2006, LB 965, § 1;    Laws 2016, LB756, § 2.    Termination Date: January 1, 2018


77-6102. Terms, defined.

For purposes of the Long-Term Care Savings Plan Act:

(1) Long-term care expense means the cost of long-term care in a long-term care facility and the cost of care provided in a person's home when the person receiving the care is unable to perform multiple basic life functions independently;

(2) Long-term care insurance premiums means premiums paid for a long-term care insurance policy issued pursuant to the Long-Term Care Insurance Act that offers coverage to the individual, the individual's spouse, or another person for whom the taxpayer has an insurable interest;

(3) Participant means an individual who has entered into a participation agreement or established an account with a financial institution with which the State Treasurer has an agreement under subsection (1) of section 77-6103; and

(4) Qualified individual means (a) a person who incurred long-term care expenses during the taxable year or (b) a person who turned fifty years of age or older during the taxable year who made payments for long-term care insurance premiums during the taxable year.

Source:Laws 2006, LB 965, § 2;    Laws 2007, LB304, § 1.    Termination Date: January 1, 2018


77-6103. Nebraska long-term care savings plan; created; State Treasurer; powers and duties; participation agreement.

(1) The Nebraska long-term care savings plan is created. The State Treasurer shall select the administrator of the plan. If the State Treasurer receives no acceptable responses to a request for proposals for an administrator for the plan by November 1, 2006, the State Treasurer may enter into agreements with state-chartered or federally chartered banks, savings banks, building and loan associations, savings and loan associations, or credit unions, or a subsidiary of any such entity, to receive contributions in the form of account deposits. The State Treasurer may adopt and promulgate rules and regulations to carry out its duties under this subsection.

(2) If an administrator is selected, participants shall enter into participation agreements with the State Treasurer, and if an administrator is not selected, participants may make contributions to an account with a financial institution with which the State Treasurer has an agreement under subsection (1) of this section. A lifetime maximum of one hundred sixty-five thousand dollars may be contributed by a participant. This dollar limitation shall be adjusted for inflation by the method provided in section 151 of the Internal Revenue Code of 1986, as amended.

(3) Each participation agreement shall provide that the agreement may be canceled or transferred to a spouse upon the terms and conditions set by the State Treasurer. If the participation agreement is canceled or the Nebraska long-term care savings plan is terminated, a participant may receive the principal amount of all contributions made by the participant or on behalf of the participant plus the actual investment earnings on the contributions, less any losses incurred on the contributions. A participant shall not receive more than the fair market value of his or her account under the participation agreement on the applicable liquidation date.

(4) A participant retains ownership of all contributions up to the date of utilization.

(5) State income tax treatment of contributions and investment earnings shall be as provided in section 77-2716.

Source:Laws 2006, LB 965, § 3.    Termination Date: January 1, 2018


77-6104. Nebraska long-term care savings plan trust; created; State Treasurer; state investment officer; duties.

If an administrator for the Nebraska long-term care savings plan is selected pursuant to section 77-6103, the Nebraska long-term care savings plan trust shall be created. The State Treasurer shall be the trustee of the trust and as such responsible for the administration, operation, and maintenance of the plan and shall have all powers necessary to carry out and effectuate the purposes, objectives, and provisions of the Long-Term Care Savings Plan Act pertaining to the administration, operation, and maintenance of the trust, except that the state investment officer shall have fiduciary responsibility to make all decisions regarding the investment of the money in the trust, including the selection of all investment options and the approval of all fees and other costs charged to trust assets except costs for administration, operation, and maintenance of the trust, pursuant to the directions, guidelines, and policies established by the Nebraska Investment Council. The State Treasurer may adopt and promulgate rules and regulations to provide for the efficient administration, operation, and maintenance of the trust. The State Treasurer shall not adopt and promulgate rules and regulations that in any way interfere with the fiduciary responsibility of the state investment officer to make all decisions regarding the investment of money in the trust. The Nebraska Investment Council may adopt and promulgate rules and regulations to provide for the prudent investment of the assets of the trust. The council or its designee also has the authority to select and enter into agreements with individuals and entities to provide investment advice and management of the assets held by the trust, establish investment guidelines, objectives, and performance standards with respect to the assets held by the trust, and approve any fees, commissions, and expenses which directly or indirectly affect the return on assets.

Source:Laws 2006, LB 965, § 4.    Termination Date: January 1, 2018


77-6105. Qualified individual; withdrawals authorized.

A qualified individual as defined in subdivision (4)(a) of section 77-6102 may make withdrawals as a participant in the Nebraska long-term care savings plan to pay or reimburse long-term care expenses. A qualified individual as defined in subdivision (4)(b) of section 77-6102 may make withdrawals to pay or reimburse long-term care insurance premiums. Any participant who is not a qualified individual or who makes a withdrawal for any reason other than transfer of funds to a spouse, long-term care expenses, long-term care insurance premiums, death of the participant, or termination of the Long-Term Care Savings Plan Act shall be subject to a ten-percent penalty on the amount withdrawn. The State Treasurer shall collect the penalty.

Source:Laws 2006, LB 965, § 5;    Laws 2007, LB304, § 2;    Laws 2016, LB756, § 3.    Termination Date: January 1, 2018


77-6106. Long-Term Care Savings Plan Act; termination; participant; entitled to account balance.

The Long-Term Care Savings Plan Act terminates on January 1, 2018. Any participant in the Nebraska long-term care savings plan on the termination date shall be entitled to receive the full balance of his or her account on such date.

Source:Laws 2016, LB756, § 4.    Termination Date: January 1, 2018


77-6201. Legislative findings and declarations.

The Legislature finds and declares:

(1) The purpose of the nameplate capacity tax levied under section 77-6203 is to replace property taxes currently imposed on renewable energy infrastructure and depreciated over a short period of time in a way that causes local budgeting challenges and increases upfront costs for renewable energy developers;

(2) The nameplate capacity tax should be competitive with taxes imposed directly and indirectly on renewable energy generation and development in other states;

(3) The nameplate capacity tax should be fair and nondiscriminatory when compared with other taxes imposed on other industries in the state; and

(4) The nameplate capacity tax should not be singled out as a source of General Fund revenue during times of economic hardship.

Source:Laws 2010, LB1048, § 12;    Laws 2015, LB424, § 4.    


77-6202. Terms, defined.

For purposes of sections 77-6201 to 77-6204:

(1) Commissioned means the renewable energy generation facility has been in commercial operation for at least twenty-four hours. A renewable energy generation facility is not in commercial operation unless the renewable energy generation facility is connected to the electrical grid or to the end user if the renewable energy generation facility is a customer-generator as defined in section 70-2002;

(2) Nameplate capacity means the capacity of a renewable energy generation facility to generate electricity as measured in megawatts, including fractions of a megawatt. Nameplate capacity shall be determined based on the facility's alternating current capacity; and

(3) Renewable energy generation facility means (a) a facility that generates electricity using wind as the fuel source or (b) a facility that generates electricity using solar, biomass, or landfill gas as the fuel source if such facility was installed on or after January 1, 2016, and has a nameplate capacity of one hundred kilowatts or more.

Source:Laws 2010, LB1048, § 13;    Laws 2015, LB424, § 5;    Laws 2020, LB76, § 1.    


77-6203. Nameplate capacity tax; annual payment; exemptions; Department of Revenue; duties; owner; file report; interest; penalties.

(1) The owner of a renewable energy generation facility annually shall pay a nameplate capacity tax equal to the total nameplate capacity of the commissioned renewable energy generation facility multiplied by a tax rate of three thousand five hundred eighteen dollars per megawatt.

(2) No tax shall be imposed on a renewable energy generation facility:

(a) Owned or operated by the federal government, the State of Nebraska, a public power district, a public power and irrigation district, an individual municipality, a registered group of municipalities, an electric membership association, or a cooperative; or

(b) That is a customer-generator as defined in section 70-2002.

(3) No tax levied pursuant to this section shall be construed to constitute restricted funds as defined in section 13-518 for the first five years after the renewable energy generation facility is commissioned.

(4) The presence of one or more renewable energy generation facilities or supporting infrastructure shall not be a factor in the assessment, determination of actual value, or classification under section 77-201 of the real property underlying or adjacent to such facilities or infrastructure.

(5)(a) The Department of Revenue shall collect the tax due under this section.

(b) The tax shall be imposed beginning the first calendar year the renewable energy generation facility is commissioned. A renewable energy generation facility that uses wind as the fuel source which was commissioned prior to July 15, 2010, shall be subject to the tax levied pursuant to sections 77-6201 to 77-6204 on and after January 1, 2010. The amount of property tax on depreciable tangible personal property previously paid on a renewable energy generation facility that uses wind as the fuel source which was commissioned prior to July 15, 2010, which is greater than the amount that would have been paid pursuant to sections 77-6201 to 77-6204 from the date of commissioning until January 1, 2010, shall be credited against any tax due under Chapter 77, and any amount so credited that is unused in any tax year shall be carried over to subsequent tax years until fully utilized.

(c)(i) The tax for the first calendar year shall be prorated based upon the number of days remaining in the calendar year after the renewable energy generation facility is commissioned.

(ii) In the first year in which a renewable energy generation facility is taxed or in any year in which additional commissioned nameplate capacity is added to a renewable energy generation facility, the taxes on the initial or additional nameplate capacity shall be prorated for the number of days remaining in the calendar year.

(iii) When a renewable energy generation facility is decommissioned or made nonoperational by a change in law during a tax year, the taxes shall be prorated for the number of days during which the renewable energy generation facility was not decommissioned or was operational.

(iv) When the capacity of a renewable energy generation facility to produce electricity is reduced but the renewable energy generation facility is not decommissioned, the nameplate capacity of the renewable energy generation facility is deemed to be unchanged.

(6)(a) On March 1 of each year, the owner of a renewable energy generation facility shall file with the Department of Revenue a report on the nameplate capacity of the facility for the previous year from January 1 through December 31. All taxes shall be due on April 1 and shall be delinquent if not paid on a quarterly basis on April 1 and each quarter thereafter. Delinquent quarterly payments shall draw interest at the rate provided for in section 45-104.02, as such rate may from time to time be adjusted.

(b) The owner of a renewable energy generation facility is liable for the taxes under this section with respect to the facility, whether or not the owner of the facility is the owner of the land on which the facility is situated.

(7) Failure to file a report required by subsection (6) of this section, filing such report late, failure to pay taxes due, or underpayment of such taxes shall result in a penalty of five percent of the amount due being imposed for each quarter the report is overdue or the payment is delinquent, except that the penalty shall not exceed ten thousand dollars.

(8) The Department of Revenue shall enforce the provisions of this section. The department may adopt and promulgate rules and regulations necessary for the implementation and enforcement of this section.

(9) The Department of Revenue shall separately identify the proceeds from the tax imposed by this section and shall pay all such proceeds over to the county treasurer of the county where the renewable energy generation facility is located within thirty days after receipt of such proceeds.

Source:Laws 2010, LB1048, § 14;    Laws 2011, LB360, § 4;    Laws 2015, LB424, § 6;    Laws 2016, LB824, § 14;    Laws 2019, LB512, § 29.    


Annotations

77-6204. County treasurer; distribute revenue; calculation.

(1) The county treasurer shall distribute all revenue received from the Department of Revenue pursuant to section 77-6203 to local taxing entities which, but for such personal property tax exemption, would have received distribution of personal property tax revenue from depreciable personal property used directly in the generation of electricity using wind, solar, biomass, or landfill gas as the fuel source.

(2) A local taxing entity's status as eligible for distribution under subsection (1) of this section shall not be affected when and if the net book value of personal property used directly in the generation of electricity using wind, solar, biomass, or landfill gas as the fuel source becomes zero. A local taxing entity's status as eligible for distribution under such subsection shall be affected by the disposal of all of the exempt depreciable personal property used directly in the generation of electricity using wind, solar, biomass, or landfill gas as the fuel source.

(3) The distribution to each eligible local taxing entity shall be calculated by determining the amount of taxes that the eligible local taxing entity levied during the taxable year and dividing this amount by the total tax levied by all of the eligible local taxing entities during the year. Each eligible entity's resulting fraction shall then be multiplied by the revenue distributed to the county treasurer by the department to determine the portion of such revenue due each local taxing entity.

(4) The Department of Revenue shall not retain any revenue collected pursuant to sections 77-6201 to 77-6204 for distribution, use, transfer, pledge, or allocation to or from the General Fund.

Source:Laws 2010, LB1048, § 15;    Laws 2015, LB424, § 7.    


77-6301. Act, how cited.

Sections 77-6301 to 77-6310 shall be known and may be cited as the Angel Investment Tax Credit Act.

Source:Laws 2011, LB389, § 1;    Laws 2014, LB836, § 6.    


77-6301.01. Legislative findings.

The Legislature hereby finds and declares that it is the policy of this state to make revisions in Nebraska's tax structure in order to encourage entrepreneurship and to increase investment in high technology industries in underserved areas of Nebraska.

Source:Laws 2014, LB836, § 7.    


77-6302. Terms, defined.

For purposes of the Angel Investment Tax Credit Act:

(1) Director means the Director of Economic Development;

(2) Family member means a family member within the meaning of section 267(c)(4) of the Internal Revenue Code of 1986, as amended;

(3) Investment date means the latest of the following:

(a) The date of a fully executed investor subscription agreement or underlying transaction document pertaining to the applicable qualified investment;

(b) The date on a check made out to a qualified small business for the applicable qualified investment or the date a wire transfer is completed for the applicable qualified investment; or

(c) The date the qualified small business deposits a check made out to such qualified small business for the applicable qualified investment or receives a wire transfer for the applicable qualified investment, as documented on the deposit slip or bank statement of the qualified small business;

(4) Pass-through entity means an organization that for the applicable taxable year is a subchapter S corporation, general partnership, limited partnership, limited liability partnership, trust, or limited liability company and that for the applicable taxable year is not taxed as a corporation;

(5) Qualified fund means a fund that has been certified by the director under section 77-6304;

(6) Qualified high-technology field includes, but is not limited to, aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biosolutions, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;

(7) Qualified investment means a cash investment in a qualified small business made in exchange for common stock, a partnership or membership interest, preferred stock, debt with mandatory conversion to equity, or an equivalent ownership interest as determined by the director of a minimum of:

(a) Twenty-five thousand dollars in a calendar year by a qualified investor; or

(b) Fifty thousand dollars in a calendar year by a qualified fund;

(8) Qualified investor means an individual, trust, or pass-through entity which has been certified by the director under section 77-6305; and

(9) Qualified small business means a business that has been certified by the director under section 77-6303.

Source:Laws 2011, LB389, § 2;    Laws 2014, LB1067, § 5;    Laws 2017, LB217, § 28.    


77-6303. Qualified small business; certification; application; form; director; duties; qualification; eligibility for tax credits.

(1) A business may apply to the director for certification as a qualified small business. The application shall be in the form and be made under the procedures specified by the director.

(2) Within thirty days after receiving an application for certification under this section, the director shall certify the business as satisfying the conditions required of a qualified small business, request additional information, or deny the application. If the director requests additional information, the director shall certify the business or deny the application within thirty days after receiving the additional information. If the director neither certifies the business nor denies the application within thirty days after receiving the original application or within thirty days after receiving the additional information requested, whichever is later, then the application is deemed approved if the business meets the qualifications in subsection (3) of this section. A business that applies for certification and is denied may reapply.

(3) To be certified, a business shall:

(a) Have its headquarters in Nebraska;

(b) Have at least fifty-one percent of its employees employed in Nebraska and have at least fifty-one percent of its total payroll paid or incurred in Nebraska;

(c) Be engaged in, or committed to engage in, innovation in Nebraska in one or more of the following activities as its primary business activity:

(i) Using proprietary technology to add value to a product, process, or service in a qualified high-technology field; or

(ii) Researching, developing, or producing a proprietary product, process, or service in a qualified high-technology field;

(d) Except for activities listed in subdivision (3)(c) of this section, not be engaged in political consulting, leisure, hospitality, or professional services provided by attorneys, accountants, physicians, or health care consultants; and

(e) Have twenty-five or fewer employees at the time the qualified investment is made.

(4) In order for a qualified investment in a qualified small business to be eligible for tax credits, the business shall have applied for and received certification for the calendar year in which the qualified investment was made prior to the date on which the qualified investment was made.

Source:Laws 2011, LB389, § 3.    


77-6304. Pass-through entity; certification as qualified fund; application; form; director; duties; qualification; eligibility for tax credits.

(1) A pass-through entity may apply to the director for certification as a qualified fund for a calendar year. The application shall be in the form and be made under the procedures specified by the director.

(2) Within thirty days after receiving an application for certification under this section, the director shall certify the pass-through entity as satisfying the conditions required of a qualified fund, request additional information, or deny the application. If the director requests additional information, the director shall certify the pass-through entity or deny the application within thirty days after receiving the additional information. If the director neither certifies the pass-through entity nor denies the application within thirty days after receiving the original application or within thirty days after receiving the additional information requested, whichever is later, then the application is deemed approved if the pass-through entity meets the qualifications in subsection (3) of this section. A pass-through entity that applies for certification and is denied may reapply.

(3) To be certified, a pass-through entity shall:

(a) Invest or intend to invest in qualified small businesses; and

(b) Have at least three separate investors who satisfy the conditions in section 77-6305.

(4) A qualified fund may consist of equity investments or notes that pay interest or other fixed amounts, or any combination of both.

(5) In order for a qualified investment in a qualified small business to be eligible for tax credits, a qualified fund that makes the qualified investment shall have applied for and received certification for the calendar year in which the qualified investment was made prior to making the qualified investment.

Source:Laws 2011, LB389, § 4;    Laws 2014, LB1067, § 6.    


77-6305. Individual, trust, or pass-through entity; certification; application; form; director; duties; qualification; eligibility for tax credits.

(1) An individual, trust, or pass-through entity may apply to the director for certification as a qualified investor for a calendar year. The application shall be in the form and be made under the procedures specified by the director. The director shall not certify the following types of individuals, trusts, or pass-through entities as qualified investors:

(a) An individual who controls fifty percent or more of the qualified small business receiving the qualified investment;

(b) A venture capital company; or

(c) Any bank, savings and loan association, insurance company, or similar entity whose normal business activities include venture capital investments.

(2) Within thirty days after receiving an application for certification under this section, the director shall certify the individual, trust, or pass-through entity as satisfying the conditions required of a qualified investor, request additional information, or deny the application. If the director requests additional information, the director shall certify the individual, trust, or pass-through entity or deny the application within thirty days after receiving the additional information. If the director neither certifies the individual, trust, or pass-through entity nor denies the application within thirty days after receiving the original application or within thirty days after receiving the additional information requested, whichever is later, then the application is deemed approved if the individual, trust, or pass-through entity meets the qualifications in subsection (1) of this section. An individual, trust, or pass-through entity which applies for certification and is denied may reapply.

(3) In order for a qualified investment in a qualified small business to be eligible for tax credits, a qualified investor who makes the qualified investment shall have applied for and received certification for the calendar year in which the qualified investment was made prior to making the qualified investment.

Source:Laws 2011, LB389, § 5;    Laws 2014, LB1067, § 7.    


77-6306. Tax credit; amount; director; allocation; limitation; reallocation; when; notice to director; tax credit certificates issued; holding period.

(1) A qualified investor or qualified fund is eligible for a refundable tax credit equal to forty percent of its qualified investment in a qualified small business. The director shall not allocate more than four million dollars in tax credits to all qualified investors or qualified funds in a calendar year, except that for calendar year 2019, the director shall not allocate more than three million nine hundred thousand dollars in tax credits in such calendar year. If the director does not allocate the entire amount of tax credits authorized for a calendar year, the tax credits that are not allocated shall not carry forward to subsequent years. The director shall not allocate any amount for tax credits for calendar years after 2019.

(2) The director shall not allocate more than a total maximum amount in tax credits for a calendar year to a qualified investor for the investor's cumulative qualified investments as an individual qualified investor and as an investor in a qualified fund as provided in this subsection. For married couples filing joint returns the maximum is three hundred fifty thousand dollars, and for all other filers the maximum is three hundred thousand dollars. The director shall not allocate more than a total of one million dollars in tax credits for qualified investments in any one qualified small business.

(3) The director shall not allocate a tax credit to a qualified investor either as an individual qualified investor or as an investor in a qualified fund if the investor receives more than forty-nine percent of the investor's gross annual income from the qualified small business in which the qualified investment is proposed. A family member of an individual disqualified by this subsection is not eligible for a tax credit under this section. For a married couple filing a joint return, the limitations in this subsection apply collectively to the investor and spouse. For purposes of determining the ownership interest of an investor under this subsection, the rules under section 267(c) and (e) of the Internal Revenue Code of 1986, as amended, apply.

(4) Tax credits shall be allocated to qualified investors or qualified funds in the order that the tax credit applications are filed with the director. Once tax credits have been approved and allocated by the director, the qualified investors and qualified funds shall implement the qualified investment specified within ninety days after allocation of the tax credits. Qualified investors and qualified funds shall notify the director no later than thirty days after the expiration of the ninety-day period that the qualified investment has been made. If the qualified investment is not made within ninety days after allocation of the tax credits, or the director has not, within thirty days following expiration of the ninety-day period, received notification that the qualified investment was made, the tax credit allocation is canceled and available for reallocation. A qualified investor or qualified fund that fails to invest as specified in the application within ninety days after allocation of the tax credits shall notify the director of the failure to invest within five business days after the expiration of the ninety-day investment period.

(5) All tax credit applications filed with the director on the same day shall be treated as having been filed contemporaneously. If two or more qualified investors or qualified funds file tax credit applications on the same day and the aggregate amount of tax credit allocation requests exceeds the aggregate limit of tax credits under this section or the lesser amount of tax credits that remain unallocated on that day, then the tax credits shall be allocated among the qualified investors or qualified funds who filed on that day on a pro rata basis with respect to the amounts requested. The pro rata allocation for any one qualified investor or qualified fund shall be the product obtained by multiplying a fraction, the numerator of which is the amount of the tax credit allocation request filed on behalf of a qualified investor or qualified fund and the denominator of which is the total of all tax credit allocation requests filed on behalf of all applicants on that day, by the amount of tax credits that remain unallocated on that day for the taxable year.

(6) A qualified investor or qualified fund, or a qualified small business acting on behalf of the investor or fund, shall notify the director when an investment for which tax credits were allocated has been made and shall furnish the director with documentation of the investment date. A qualified fund shall also provide the director with a statement indicating the amount invested by each investor in the qualified fund based on each investor's share of the assets of the qualified fund at the time of the qualified investment. After receiving notification that the qualified investment was made, the director shall issue tax credit certificates for the taxable year in which the qualified investment was made to the qualified investor or, for a qualified investment made by a qualified fund, to each qualified investor who is an investor in the fund. The certificate shall state that the tax credit is subject to revocation if the qualified investor or qualified fund does not hold the investment in the qualified small business for at least three years, consisting of the calendar year in which the investment was made and the two following calendar years. The three-year holding period does not apply if:

(a) The qualified investment by the qualified investor or qualified fund becomes worthless before the end of the three-year period;

(b) Eighty percent or more of the assets of the qualified small business are sold before the end of the three-year period;

(c) The qualified small business is sold or merges with another business before the end of the three-year period;

(d) The qualified small business's common stock begins trading on a public exchange before the end of the three-year period; or

(e) In the case of an individual qualified investor, such investor becomes deceased before the end of the three-year period.

(7) The director shall notify the Tax Commissioner that tax credit certificates have been issued, including the amount of tax credits and all other pertinent tax information.

Source:Laws 2011, LB389, § 6;    Laws 2014, LB1067, § 8;    Laws 2015, LB156, § 1;    Laws 2016, LB1022, § 12;    Laws 2017, LB217, § 29;    Laws 2019, LB334, § 6.    


77-6307. Annual report; contents; failure to file; effect; final report; when required.

(1) Each qualified small business, qualified investor, and qualified fund shall submit an annual report to the director by July 1 of each year. The report shall certify that the business, investor, or fund satisfies the requirements of the Angel Investment Tax Credit Act and shall include all information which will enable the Department of Economic Development to fulfill its reporting requirements under section 77-6309.

(2) A qualified small business that ceases all operations and becomes insolvent shall file a final report with the director in the form required by the director documenting its insolvency.

(3) To maintain the confidentiality of the qualified investor, the Department of Economic Development shall use a designated number to identify such persons or entities.

(4) A qualified small business, qualified investor, or qualified fund that fails to file a complete annual report by July 1 shall, at the discretion of the director, be subject to a fine of two hundred dollars, revocation of its certification, or both.

Source:Laws 2011, LB389, § 7;    Laws 2014, LB1067, § 9;    Laws 2015, LB156, § 2;    Laws 2017, LB217, § 30.    


77-6308. Tax credit recaptured; when; director; powers and duties.

(1) If, at any time within six years after the allocation of tax credits is made, the director determines that a qualified investor or qualified fund did not meet the three-year holding period required in section 77-6306, any tax credit allocated and certified to the investor or fund shall be recaptured. The director shall notify the Tax Commissioner of such determination, and the Tax Commissioner shall recapture the tax credits.

(2) The director shall, to the extent possible, assure that the allocation of such tax credits provides equitable access to the benefits provided by the Angel Investment Tax Credit Act by all geographic areas of the state.

(3) The director may engage in contractual relationships with a statewide public or private nonprofit organization which shall serve as the agent for the Department of Economic Development in order to effect the purposes and fulfill the requirements of the act.

Source:Laws 2011, LB389, § 8.    


77-6309. Department of Economic Development; report; contents; confidentiality of certain information.

(1) By November 15 of each odd-numbered year, the Department of Economic Development shall submit a report to the Legislature and the Governor that includes:

(a) The number and geographic location of qualified investors;

(b) The number, geographic location, and amount of qualified investment made into each qualified small business;

(c) The total amount of all grants, loans, incentives, and investments that are not qualified investments received by each qualified small business since receiving the initial qualified investment;

(d) A breakdown of the industry sectors in which qualified small businesses are involved;

(e) The number of actual tax credits issued by project under the Angel Investment Tax Credit Act on an annual basis; and

(f) The number and annual salary or wage of jobs created at each qualified small business since receiving the initial qualified investment.

The report submitted to the Legislature shall be submitted electronically.

(2) Information received, developed, created, or otherwise maintained by the Department of Economic Development and the Department of Revenue in administering and enforcing the Angel Investment Tax Credit Act, other than information required to be included in the report to be submitted by the Department of Economic Development pursuant to this section, may be deemed confidential by the respective departments and not subject to public disclosure.

Source:Laws 2011, LB389, § 9;    Laws 2012, LB782, § 147;    Laws 2014, LB1067, § 10;    Laws 2015, LB156, § 3.    


77-6310. Rules and regulations.

The Department of Economic Development and the Department of Revenue may adopt and promulgate rules and regulations to administer and enforce the Angel Investment Tax Credit Act.

Source:Laws 2011, LB389, § 10.    


77-6401. Act, how cited.

Sections 77-6401 to 77-6406 shall be known and may be cited as the Qualified Judgment Payment Act.

Source:Laws 2019, LB472, § 1.    Termination Date: January 1, 2027


77-6402. Qualified judgment, defined.

For purposes of the Qualified Judgment Payment Act, qualified judgment means a judgment that is rendered against a county by a federal court for a violation of federal law.

Source:Laws 2019, LB472, § 2.    Termination Date: January 1, 2027


77-6403. Imposition of sales and use tax; procedure; Tax Commissioner; duties.

(1) Any county that has a qualified judgment in excess of twenty-five million dollars rendered against it may, upon adoption of a resolution by the affirmative vote of at least a two-thirds majority of all elected members of the county board, impose a sales and use tax of one-half of one percent on transactions that are subject to the state sales and use tax under the Nebraska Revenue Act of 1967, as amended from time to time, and that are sourced as provided in sections 77-2703.01 to 77-2703.04 within the county. Any sales and use tax imposed pursuant to this section shall be used to pay the qualified judgment.

(2) The Tax Commissioner shall administer all sales and use taxes imposed pursuant to this section. The Tax Commissioner may prescribe forms and adopt and promulgate rules and regulations in conformity with the Nebraska Revenue Act of 1967, as amended, for the making of returns and for the ascertainment, assessment, and collection of taxes. The county shall furnish a certified copy of the resolution imposing the tax to the Tax Commissioner. The tax shall begin on the first day of the first calendar quarter which begins at least sixty days after receipt by the Tax Commissioner of the certified copy of the resolution. The Tax Commissioner shall provide at least thirty days' notice of the adoption of the tax to retailers within the county. Such notice may be provided through the website of the Department of Revenue or by other electronic means.

(3) Any sales and use tax imposed pursuant to this section shall terminate on the first day of the first calendar quarter which begins after the qualified judgment has been paid in full or after seven years, whichever is earlier. The county shall notify the Tax Commissioner of the anticipated termination date at least one hundred twenty days in advance. The Tax Commissioner shall provide at least sixty days' notice of the termination date to retailers within the county. Such notice may be provided through the website of the Department of Revenue or by other electronic means.

(4) The Tax Commissioner shall collect any sales and use tax imposed pursuant to this section concurrently with collection of a state sales and use tax in the same manner as the state tax is collected. The Tax Commissioner shall remit monthly the proceeds of the tax to the county imposing the tax, after deducting the amount of refunds made and three percent of the remainder as an administrative fee necessary to defray the cost of collecting the tax and the expenses incident thereto. The Tax Commissioner shall keep full and accurate records of all money received and distributed. All receipts from the three-percent administrative fee shall be deposited in the state General Fund.

(5) Upon any claim of illegal assessment and collection of any sales and use tax imposed pursuant to this section, the taxpayer has the same remedies provided for claims of illegal assessment and collection of the state sales and use tax.

(6) All relevant provisions of the Nebraska Revenue Act of 1967, as amended, not inconsistent with this section, shall govern transactions, proceedings, and activities related to any sales and use tax imposed pursuant to this section.

(7) For purposes of any sales and use tax imposed pursuant to this section, all retail sales, rentals, and leases, as defined and described in the Nebraska Revenue Act of 1967, shall be sourced as provided in sections 77-2703.01 to 77-2703.04.

Source:Laws 2019, LB472, § 3.    Termination Date: January 1, 2027


Cross References

77-6404. Imposition of sales and use tax; limitation.

A county shall not impose a sales and use tax pursuant to the Qualified Judgment Payment Act if such county is imposing a tax pursuant to section 13-319.

Source:Laws 2019, LB472, § 4.    Termination Date: January 1, 2027


77-6405. Property tax levy; required.

Any county that imposes a sales and use tax pursuant to the Qualified Judgment Payment Act shall set its property tax levy at the maximum levy authorized in section 77-3442 for each year that the county is imposing such sales and use tax. The county shall use any available revenue from the imposition of such levy to pay the qualified judgment.

Source:Laws 2019, LB472, § 5.    Termination Date: January 1, 2027


77-6406. Act, termination.

The Qualified Judgment Payment Act terminates on January 1, 2027.

Source:Laws 2019, LB472, § 6.    


77-6501. Act, how cited.

Sections 77-6501 to 77-6523 shall be known and may be cited as the Key Employer and Jobs Retention Act.

Source:Laws 2020, LB1107, § 44.    


77-6502. Purpose of act.

The purpose of the Key Employer and Jobs Retention Act is to provide incentives to encourage key employers to remain in the state and retain well-paid employees in the state when there is a change in ownership and control of the key employer and the new owners are considering moving some or all of the key employer's jobs to other states.

Source:Laws 2020, LB1107, § 45.    


77-6503. Definitions, where found.

For purposes of the Key Employer and Jobs Retention Act, the definitions found in sections 77-6504 to 77-6515 shall be used.

Source:Laws 2020, LB1107, § 46.    


77-6504. Additional definitions.

Any term defined in the Nebraska Revenue Act of 1967 or in the ImagiNE Nebraska Act has the same meaning in the Key Employer and Jobs Retention Act unless the context or the express language of the Key Employer and Jobs Retention Act requires a different meaning.

Source:Laws 2020, LB1107, § 47.    


Cross References

77-6505. Base year, defined.

Base year means the year immediately preceding the year during which the change in ownership and control occurred.

Source:Laws 2020, LB1107, § 48.    


77-6506. Base-year employees, defined.

Base-year employees means the number of equivalent employees employed by the taxpayer during the base year in Nebraska who (1) are paid wages at a rate equal to at least one hundred percent of the Nebraska statewide average hourly wage for the year of application and (2) receive a sufficient package of benefits as specified in the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 49.    


Cross References

77-6507. Change in ownership and control, defined.

Change in ownership and control has the same meaning as described in 34 C.F.R. 600.31, which shall mean the regulation as amended on November 1, 2019, and which took effect on July 1, 2020.

Source:Laws 2020, LB1107, § 50.    


77-6508. Equivalent employees, defined.

Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year. A salaried employee who receives a predetermined amount of compensation each pay period on a weekly or less frequent basis is deemed to have been paid for forty hours per week during the pay period.

Source:Laws 2020, LB1107, § 51.    


77-6509. Key employer, defined.

Key employer means a taxpayer that:

(1) Employs at least one thousand equivalent employees in Nebraska during the base year;

(2) Offers all full-time employees, as defined and described in section 4980H of the Internal Revenue Code of 1986, as amended, the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, as those terms are defined and described in section 5000A of the Internal Revenue Code of 1986, as amended;

(3) Offers all full-time employees, as defined and described in section 4980H of the Internal Revenue Code of 1986, as amended, a sufficient package of benefits as specified in the ImagiNE Nebraska Act;

(4) Enforces a company policy against any discrimination that is prohibited by federal or state law;

(5) Electronically verifies the work eligibility status of all new employees employed in Nebraska within ninety days after the date of hire during the entire performance period;

(6) Has gone through a change in ownership and control within the twenty-four months immediately prior to the application;

(7) Is at risk of moving more than one thousand existing equivalent employees from the state, as determined by the director;

(8) Retains at least ninety percent of its equivalent base-year employment; and

(9) Is a qualified business.

Source:Laws 2020, LB1107, § 52.    


Cross References

77-6510. Nebraska statewide average hourly wage for any year, defined.

Nebraska statewide average hourly wage for any year means the most recent statewide average hourly wage paid by all employers in all counties in Nebraska as calculated by the Office of Labor Market Information of the Department of Labor using annual data from the Quarterly Census of Employment and Wages by October 1 of the year prior to application. Hourly wages shall be calculated by dividing the reported average annual weekly wage by forty.

Source:Laws 2020, LB1107, § 53.    


77-6511. Performance period, defined.

Performance period means the year of application plus the next nine years.

Source:Laws 2020, LB1107, § 54.    


77-6512. Qualified business, defined.

Qualified business means any business if the majority of the business activities conducted throughout Nebraska by such business meet the requirements for a qualified location as defined in subsection (1) or (2) of section 77-6818. For purposes of this section, the majority of business activities conducted shall be determined based on the number of equivalent employees working in the respective business activities.

Source:Laws 2020, LB1107, § 55.    


77-6513. Taxpayer, defined.

Taxpayer means any person subject to sales and use taxes under the Nebraska Revenue Act of 1967 and subject to withholding under section 77-2753 and any entity that is or would otherwise be a member of the same unitary group, if incorporated, that is subject to such sales and use taxes and such withholding. Taxpayer does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended. For purposes of this section, political subdivision includes any public corporation created for the benefit of a political subdivision and any group of political subdivisions forming a joint public agency, organized by interlocal agreement, or utilizing any other method of joint action.

Source:Laws 2020, LB1107, § 56.    


Cross References

77-6514. Wage retention credit, defined.

Wage retention credit means the credit described in the Key Employer and Jobs Retention Act.

Source:Laws 2020, LB1107, § 57.    


77-6515. Year, defined.

Year means calendar year.

Source:Laws 2020, LB1107, § 58.    


77-6516. Wage retention credit; amount; use.

(1) If a key employer has entered into an agreement with the state pursuant to section 77-6517, the key employer shall during each year of the performance period receive the wage retention credit approved by the director in the manner provided in the Key Employer and Jobs Retention Act.

(2) The wage retention credit shall equal five percent of the total compensation paid by the key employer in the year to all retained employees of the key employer in Nebraska who are paid wages for services rendered at a rate equal to at least one hundred percent of the Nebraska statewide average hourly wage for the year of application. The wage retention credit earned for all qualified key employers shall not exceed four million dollars in any year. If two or more key employers qualify for benefits in any given year, the one with the earlier approval will be fully funded first.

(3) The wage retention credits shall be allowed for each year in the performance period. Unused credits may carry over only to the end of the performance period.

(4) The total amount all key employers may receive in credits pursuant to the Key Employer and Jobs Retention Act shall not exceed forty million dollars. If two or more key employers qualify for benefits, the one with the earlier approval will be fully funded first. This benefit is in addition to any benefits the key employer may otherwise qualify for under the ImagiNE Nebraska Act or may have qualified for previously under the Nebraska Advantage Act or the Employment and Investment Growth Act.

(5) The wage retention credit shall be claimed by filing the forms required by the Tax Commissioner with the income tax return for the taxable year which includes the end of the year the credits were earned. The credits may be used after any other nonrefundable credits to reduce the key employer's income tax liability imposed by sections 77-2714 to 77-27,135. Credits may be used beginning with the taxable year which includes December 31 of the first year in the performance period. The last year for which credits may be used is the taxable year which includes December 31 of the last year of the performance period. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section.

(6) The key employer may use the wage retention credit to reduce the key employer's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757. To the extent of the credit used, such withholding shall not constitute public funds or state tax revenue and shall not constitute a trust fund or be owned by the state. The use by the key employer of the credit shall not change the amount that otherwise would be reported by the key employer to the employee under section 77-2754 as income tax withheld and shall not reduce the amount that otherwise would be allowed by the state as a refundable credit on an employee's income tax return as income tax withheld under section 77-2755.

Source:Laws 2020, LB1107, § 59.    


Cross References

77-6517. Wage retention credit; application; fee; confidentiality; approval of application; conditions; notice; agreement.

(1) In order for the key employer to be eligible for the wage retention credit, the key employer shall file an application for an agreement with the director.

(2) The application shall:

(a) State the exact name of the taxpayer and any related companies;

(b) Include a description, in detail, of the nature of the company's business, including the products sold and respective markets;

(c) Request that the company be considered for approval under the Key Employer and Jobs Retention Act;

(d) Acknowledge that the key employer understands and complies with the requirements for providing health insurance, providing a sufficient package of benefits, enforcing a policy against discrimination, and verifying the work eligibility status of all new employees;

(e) State the number of base-year employees; and

(f) Include a nonrefundable application fee of five thousand dollars. The fee shall be remitted to the State Treasurer for credit to the Nebraska Incentives Fund.

(3) The application and all supporting information is confidential except for the name of the taxpayer, the number of employees retained, and whether the application has been approved.

(4) The director shall determine whether to approve the application based upon whether the applicant meets the definition of a key employer which is at risk for moving more than one thousand existing full-time jobs from the state and whether the director believes the applicant would leave the state if the application is not approved.

(5) The director shall notify the applicant in writing as to whether the application has been approved or not. The director shall decide and mail the notice within thirty days after receiving the application, regardless of whether he or she approves or disapproves the application, unless the time is extended by mutual written consent of the director and the applicant.

(6) An application may be approved only if it is consistent with the legislative purposes contained in section 77-6502 and the key employer will retain at least ninety percent of the base-year employees in the state throughout the performance period. This threshold constitutes the required level of employment for purposes of the Key Employer and Jobs Retention Act.

(7) If the application is approved by the director, the key employer and the state shall enter into a written agreement, which shall be executed on behalf of the state by the director. In the agreement, the key employer shall agree to retain at least ninety percent of the base-year employees and, in consideration of the key employer's agreement, the state shall agree to allow the wage retention credits as provided in the Key Employer and Jobs Retention Act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement may contain such terms and conditions as the director specifies in order to carry out the legislative purposes of the Key Employer and Jobs Retention Act. The agreement shall contain provisions to allow the Department of Revenue to verify that the required levels of employment have been maintained.

Source:Laws 2020, LB1107, § 60.    


77-6518. Wage retention credit; recapture or disallowance; interest; penalties.

(1) If the taxpayer fails to retain the required level of employment through the entire performance period, all or a portion of the wage retention credits shall be recaptured directly by the state from the taxpayer or shall be disallowed. In no event shall any wage retention credits be required to be paid back directly or indirectly by the employees. All such credits must be repaid by the taxpayer.

(2) The recapture or disallowance shall be as follows:

(a) No wage retention credits shall be allowed, and if already allowed shall be recaptured, for the actual year or years in which the required level of employment was not maintained;

(b) For wage retention credits allowed in prior years, one-tenth of the credits shall be recaptured from the taxpayer for each year the required level of employment was not maintained; and

(c) For wage retention credits for future years, one-tenth of the credits shall be disallowed for each year the required level of employment was not maintained in previous years.

(3) Any amounts required to be recaptured shall be deemed to be an underpayment of tax, immediately due and payable, and shall constitute a lien on the assets of the taxpayer. When wage retention credits were received in more than one year, the credits received in the most recent year shall be recovered first and then the credits received in earlier years shall be recovered up to the extent of the required recapture.

(4) Interest shall accrue from the due date for the return for the year in which the taxpayer failed to maintain the required level of employment.

(5) Penalties shall not accrue until ninety days after the requirement for recapture or disallowance becomes known or should have become known to the taxpayer.

(6) The recapture or disallowance required by this section may be waived by the Tax Commissioner if he or she finds the failure to maintain the required level of employment was caused by unavoidable circumstances such as an act of God or a national emergency.

Source:Laws 2020, LB1107, § 61.    


77-6519. Wage retention credit; transferable; when; effect.

(1) The wage retention credits allowed under the Key Employer and Jobs Retention Act shall not be transferable except in the following situations:

(a) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, or an estate or trust may be distributed to the partners, members, shareholders, patrons, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities, and such partners, members, shareholders, or beneficiaries shall be deemed to have made an underpayment of their income taxes for any recapture required by section 77-6518. A credit distributed shall be considered a credit used and the partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, estate, or trust shall be liable for any repayment required by section 77-6518;

(b) The credit may be transferred to a qualified employee leasing company from a taxpayer who is a client-lessee of the qualified employee leasing company with employees performing services at the qualified location or locations of the client-lessee. The credits transferred must be designated for a specific year and cannot be carried forward by the qualified employee leasing company. The credits may only be used by the qualified employee leasing company to offset the income tax withholding liability under section 77-2756 or 77-2757 for withholding for employees performing services for the client-lessee in Nebraska. The offset to such withholding liability must be computed in accordance with subsection (6) of section 77-6516 based on wages paid to the employees by the qualified employee leasing company, and not the amount paid to the qualified employee leasing company by the client-lessee; and

(c) The credits previously allowed and future credits may be transferred when an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended.

(2) The acquiring taxpayer, as of the date of notification to the director of the completed transfer, shall be entitled to any unused credits and to any future credits allowable under the Key Employer and Jobs Retention Act.

(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer for the repayment of any credits received either before or after the transfer.

(4) If a taxpayer dies and there is a credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of the credit may be changed only after obtaining the permission of the Tax Commissioner.

(5) The director and the Tax Commissioner may disclose information to the acquiring taxpayer about the agreement and prior credits that is reasonably necessary to determine the future credits and liabilities of the taxpayer.

Source:Laws 2020, LB1107, § 62.    


77-6520. Rules and regulations.

The Department of Economic Development and the Department of Revenue, in consultation with the Governor, may adopt and promulgate rules and regulations necessary or appropriate to carry out the purposes of the Key Employer and Jobs Retention Act.

Source:Laws 2020, LB1107, § 63.    


77-6521. Reports; joint hearing.

(1) The Department of Economic Development and the Department of Revenue shall jointly submit electronically an annual report to the Legislature no later than October 31 of each year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Economic Development and the Department of Revenue shall together, on or before December 15 of each year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members must be provided within thirty days after the request.

(2) The report shall list (a) the agreements which have been signed during the previous calendar year, (b) the agreements which are still in effect, and (c) the identity of each taxpayer that is a party to an agreement.

(3) The report shall provide information on agreement-specific total credits used every two years for each agreement. The report shall disclose the identity of the taxpayer and the total credits used during the immediately preceding two years, expressed as a single, aggregated total. The information required to be reported under this subsection shall not be reported for the first year the taxpayer maintains the required employment threshold. The information on first-year credits used shall be combined with and reported as part of the second year. Thereafter, the information on credits used for succeeding years shall be reported for each agreement every two years containing information on two years of credits used.

(4) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2020, LB1107, § 64.    


77-6522. Application; valid; when; director; Tax Commissioner; powers and duties.

(1) Any complete application shall be considered a valid application on the date submitted for the purposes of the Key Employer and Jobs Retention Act.

(2) The director shall be allowed access, by the Tax Commissioner, to information associated with the Nebraska Advantage Act, the Nebraska Advantage Rural Development Act, the ImagiNE Nebraska Act, and the Employment and Investment Growth Act to meet the director's obligations under the Key Employer and Jobs Retention Act.

(3) The director may contract with the Tax Commissioner for services that the director determines are necessary to fulfill the director's responsibilities under the Key Employer and Jobs Retention Act, other than services which constitute the actual actions and decisions required to be taken or made by the director under the Key Employer and Jobs Retention Act.

Source:Laws 2020, LB1107, § 65.    


Cross References

77-6523. Applications; deadline.

There shall be no new applications under the Key Employer and Jobs Retention Act filed after May 31, 2021, without further authorization of the Legislature. All applications and all agreements pending, approved, or entered into on or before May 31, 2021, shall continue in full force and effect.

Source:Laws 2020, LB1107, § 66.    


77-6601. Act, how cited.

Sections 77-6601 to 77-6611 shall be known and may be cited as the Renewable Chemical Production Tax Credit Act.

Source:Laws 2020, LB1107, § 67.    


77-6602. Legislative findings.

The Legislature finds and declares that Nebraska is home to an emerging biotechnology and bioproducts sector that yields important innovations and collaborative opportunities with the existing agricultural sector. The Legislature further finds that advances in biotechnology and bioproducts will play a critical role in addressing global challenges, reducing our environmental footprint, and creating sustainable materials including renewable chemicals made from Nebraska-based agricultural products.

Source:Laws 2020, LB1107, § 68.    


77-6603. Terms, defined.

For purposes of the Renewable Chemical Production Tax Credit Act, unless the context otherwise requires:

(1) Biomass feedstock means sugar, starch, polysaccharide, glycerin, lignin, fat, grease, or oil derived from plants, animals, or algae or a protein capable of being converted to a building block chemical by means of a biological or chemical conversion process;

(2) Building block chemical means a molecule that is converted from biomass feedstock as a first product or a secondarily derived product that can be further refined into a higher-value chemical, material, or consumer product;

(3) Director means the Director of Economic Development;

(4) Eligible business means a business that has been certified by the director under section 77-6604;

(5) Food additive means a building block chemical that is not primarily consumed as food but which, when combined with other components, improves the taste, appearance, odor, texture, shelf life, or nutritional content of food. The director, in his or her discretion, shall determine whether or not a biobased chemical is primarily consumed as food;

(6) Pre-eligibility production threshold means, with respect to each eligible business, the number of pounds of renewable chemicals produced, if any, by an eligible business during the calendar year prior to the calendar year in which the business first qualified as an eligible business pursuant to section 77-6604; and

(7)(a) Renewable chemical means a building block chemical with a significant biobased content that can be used for products including polymers, plastics, food additives, solvents, intermediate chemicals, or other formulated products with a significant nonfossil carbon content.

(b) Renewable chemical includes:

(i) Biobased chemicals that can be a food, feed, or fuel additive; and

(ii) Supplements, vitamins, nutraceuticals, and pharmaceuticals.

(c) The director may include additional chemicals or materials in the definition of renewable chemical by rule and regulation after consulting with appropriate experts from the University of Nebraska, including, but not limited to, the Industrial Agricultural Products Center.

(d) Renewable chemical does not include a chemical sold or used as fuel.

Source:Laws 2020, LB1107, § 69.    


77-6604. Eligible business; program certification application; approval; requirements; agreement.

(1) A business may apply to the director for certification as an eligible business. The program certification application shall be in the form and be made under the procedures specified by the director.

(2) Within thirty days after receiving a program certification application under this section, the director shall certify the business as satisfying the conditions required of an eligible business, request additional information, or deny the program certification application. If the director requests additional information, the director shall certify the business or deny the program certification application within thirty days after receiving the additional information. If the director neither certifies the business nor denies the program certification application within thirty days after receiving the original program certification application or within thirty days after receiving the additional information requested, whichever is later, then the program certification application is deemed approved if the business meets the requirements in subsection (3) of this section. A business that applies for program certification and is denied may reapply.

(3) To be certified as an eligible business under the Renewable Chemical Production Tax Credit Act, a business shall meet all of the following requirements:

(a) The business produced at least one million pounds of renewable chemicals in this state during the calendar year for which tax credits are sought;

(b) The business is physically located in this state;

(c) The business organized, expanded, or located in this state on or after January 1, 2021; and

(d) The business is in compliance with all agreements entered into under the act and pursuant to any other tax credits or programs administered by the Department of Economic Development or the Department of Revenue.

(4)(a) An eligible business shall enter into an agreement with the director for the successful completion of all requirements of the act. The agreement may certify the business to receive tax credits under the act for up to four years.

(b) As part of the agreement, the eligible business shall agree to collect and provide any information reasonably required by the director or the Department of Revenue in order to allow the director and department to fulfill their reporting obligations under section 77-6610.

Source:Laws 2020, LB1107, § 70.    


77-6605. Program certification application; consideration; limitation.

The director shall consider program certification applications under section 77-6604 in the order in which they are received. The director may accept program certification applications on a continuous basis or may establish, by rule and regulation, an annual program certification application deadline. The director may approve program certification applications for eligible businesses for a total of up to three million dollars in tax credits for calendar years 2022 and 2023 and up to six million dollars per calendar year for calendar years 2024 and beyond. Program certification applications approved after such annual limit has been reached shall be placed on a wait list in the order in which they are received.

Source:Laws 2020, LB1107, § 71.    


77-6606. Tax credit; application; contents; requirements; approval; effect.

(1) An eligible business may apply to the Department of Revenue for tax credits under the Renewable Chemical Production Tax Credit Act.

(2) To receive tax credits, the eligible business shall submit a tax credit application to the Department of Revenue on a form prescribed by the department. The tax credit application shall be made during the calendar year following the calendar year in which the eligible business produced the renewable chemicals for which it seeks tax credits. The tax credit application shall include the following information:

(a) The number of pounds of renewable chemicals produced in the state by the eligible business during the calendar year for which tax credits are sought; and

(b) Any other information reasonably required by the department in order to establish and verify the amount of credits earned under the act.

(3) An eligible business shall fulfill all the requirements of the act and its agreement with the director under section 77-6604 before receiving tax credits under the act or entering into a subsequent agreement. If an agreement is not successfully fulfilled, the director may decline to enter into a subsequent agreement and the Department of Revenue may decline to issue a tax credit.

(4) If the department determines that a tax credit application is complete, that an eligible business qualifies for tax credits, and that the eligible business has fulfilled all requirements of its agreement with the director, the department shall approve the tax credit application within the limits set forth in sections 77-6605 and 77-6607 and shall certify the amount of tax credits approved to the eligible business.

Source:Laws 2020, LB1107, § 72.    


77-6607. Tax credit; amount; use; how claimed.

(1) The tax credit under the Renewable Chemical Production Tax Credit Act shall be in an amount equal to the product of seven and one-half cents multiplied by the number of pounds of renewable chemicals produced in this state by the eligible business during each calendar year in excess of the eligible business's pre-eligibility production threshold. The maximum amount of tax credits that may be issued to an eligible business under a single tax credit application shall not exceed one million five hundred thousand dollars per year.

(2) The tax credit shall be a refundable credit that may be used against any income tax imposed by the Nebraska Revenue Act of 1967. Any credit in excess of the eligible business's tax liability shall be refunded to the taxpayer.

(3) An eligible business shall not receive a tax credit for renewable chemicals produced before the date the business first qualified as an eligible business.

(4) The tax credit shall not be available for any renewable chemicals produced before the 2022 calendar year.

(5) Any tax credit allowable to a partnership, a limited liability company, a subchapter S corporation, or an estate or trust may be distributed to the partners, limited liability company members, shareholders, or beneficiaries in the same manner as income is distributed.

(6) An eligible business shall claim the tax credit by attaching the tax credit certification received from the department under section 77-6606 to its tax return for the tax year in which the credit was approved.

Source:Laws 2020, LB1107, § 73.    


Cross References

77-6608. Tax credit; reduction, termination, or rescission; repayment or recapture of tax credit.

The failure by an eligible business in fulfilling any requirement of the Renewable Chemical Production Tax Credit Act or any of the terms and obligations of an agreement entered into pursuant to section 77-6604 may result in the reduction, termination, or rescission of the tax credits under the act and may subject the eligible business to the repayment or recapture of tax credits claimed.

Source:Laws 2020, LB1107, § 74.    


77-6609. Trade secret; confidentiality.

Except for the identity of a recipient of tax credits under the Renewable Chemical Production Tax Credit Act and the amount of such credits, any information or record in the possession of the Department of Economic Development or Department of Revenue with respect to the act shall be presumed by such departments to be a trade secret and shall be kept confidential by such departments unless otherwise ordered by a court.

Source:Laws 2020, LB1107, § 75.    


77-6610. Reports.

(1) On or before January 31, 2024, and on or before each January 31 thereafter, the director and the Department of Revenue shall electronically submit a report on the Renewable Chemical Production Tax Credit Act to the Revenue Committee of the Legislature. At a minimum, the report shall include the following information regarding tax credits and the recipients of such credits:

(a) The aggregate number of pounds, and a list of each type, of renewable chemicals produced in Nebraska by all recipients (i) during the calendar year prior to the calendar year for which each recipient first received tax credits and (ii) for each calendar year thereafter;

(b) The aggregate sales of all renewable chemicals produced by all recipients in each calendar year for which there are at least five recipients;

(c) The aggregate number of pounds, and a list of each type, of biomass feedstock used in the production of renewable chemicals in Nebraska by all recipients (i) during the calendar year prior to the calendar year for which each recipient first received tax credits and (ii) for each calendar year thereafter;

(d) The number of employees located in Nebraska of all recipients (i) during the calendar year prior to the calendar year for which each recipient first received tax credits and (ii) for each calendar year thereafter;

(e) The number and aggregate amount of tax credits issued for each calendar year;

(f) The number of eligible businesses placed on the wait list for each calendar year and the total number of eligible businesses remaining on the wait list at the end of that calendar year;

(g) The dollar amount of tax credit claims placed on the wait list for each calendar year and the total dollar amount of tax credit claims remaining on the wait list at the end of that calendar year;

(h) For each eligible business which received tax credits during each calendar year: (i) The identity of the eligible business; (ii) the amount of the tax credits; and (iii) the manner in which the eligible business first qualified as an eligible business, whether by organizing, expanding, or locating in the state; and

(i) The total amount of all tax credits claimed during each calendar year, and the portion issued as refunds.

(2) In order to protect the presumption of confidentiality provided for in section 77-6609, the director and Department of Revenue shall report all information in an aggregate form to prevent, to the extent reasonably possible, information being attributable to any particular eligible business, except as provided in subdivision (1)(h) of this section.

Source:Laws 2020, LB1107, § 76.    


77-6611. Rules and regulations.

The Department of Economic Development and Department of Revenue may adopt and promulgate rules and regulations necessary to carry out the Renewable Chemical Production Tax Credit Act.

Source:Laws 2020, LB1107, § 77.    


77-6701. Act, how cited.

Sections 77-6701 to 77-6706 shall be known and may be cited as the Nebraska Property Tax Incentive Act.

Source:Laws 2020, LB1107, § 111;    Laws 2022, LB873, § 4.    


77-6702. Terms, defined.

For purposes of the Nebraska Property Tax Incentive Act:

(1) Allowable growth percentage means the percentage increase, if any, in the total assessed value of all real property in the state from the prior year to the current year, as determined by the department;

(2) Community college taxes means property taxes levied on real property in this state by a community college area, excluding the following:

(a) Any property taxes levied for bonded indebtedness;

(b) Any property taxes levied as a result of an override of limits on property tax levies approved by voters pursuant to section 77-3444; and

(c) Any property taxes that, as of the time of payment, were delinquent for five years or more;

(3) Department means the Department of Revenue;

(4) Eligible taxpayer means any individual, corporation, partnership, limited liability company, trust, estate, or other entity that pays school district taxes or community college taxes during a taxable year; and

(5) School district taxes means property taxes levied on real property in this state by a school district or multiple-district school system, excluding the following:

(a) Any property taxes levied for bonded indebtedness;

(b) Any property taxes levied as a result of an override of limits on property tax levies approved by voters pursuant to section 77-3444; and

(c) Any property taxes that, as of the time of payment, were delinquent for five years or more.

Source:Laws 2020, LB1107, § 112;    Laws 2022, LB873, § 5;    Laws 2023, LB243, § 17;    Laws 2023, LB727, § 98.    
Operative Date: September 2, 2023


Note: The Revisor of Statutes has pursuant to section 49-769 correlated LB243, section 17, with LB727, section 98, to reflect all amendments.


77-6703. Tax credit for school district taxes paid.

(1) For taxable years beginning or deemed to begin on or after January 1, 2020, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each eligible taxpayer a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 or against the franchise tax imposed by sections 77-3801 to 77-3807. The credit shall be equal to the credit percentage for the taxable year, as set by the department under subsection (2) of this section, multiplied by the amount of school district taxes paid by the eligible taxpayer during such taxable year.

(2)(a) For taxable years beginning or deemed to begin during calendar year 2020, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be one hundred twenty-five million dollars;

(b) For taxable years beginning or deemed to begin during calendar year 2021, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be one hundred twenty-five million dollars plus either (i) the amount calculated for such calendar year under subdivision (3)(b)(ii)(B) of section 77-4602 or (ii) the amount calculated for such calendar year under subdivision (3)(c)(ii)(B) of section 77-4602, whichever is applicable;

(c) For taxable years beginning or deemed to begin during calendar year 2022, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be five hundred forty-eight million dollars;

(d) For taxable years beginning or deemed to begin during calendar year 2023, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be five hundred sixty million seven hundred thousand dollars;

(e) For taxable years beginning or deemed to begin during calendar year 2024 through calendar year 2028, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be the maximum amount of credits allowed in the prior year increased by the allowable growth percentage;

(f) For taxable years beginning or deemed to begin during calendar year 2029, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be the maximum amount of credits allowed in the prior year increased by the allowable growth percentage plus an additional seventy-five million dollars; and

(g) For taxable years beginning or deemed to begin during calendar year 2030 and each calendar year thereafter, the department shall set the credit percentage so that the total amount of credits for such taxable years shall be the maximum amount of credits allowed in the prior year increased by the allowable growth percentage.

(3) If the school district taxes are paid by a corporation having an election in effect under subchapter S of the Internal Revenue Code, a partnership, a limited liability company, a trust, or an estate, the amount of school district taxes paid during the taxable year may be allocated to the shareholders, partners, members, or beneficiaries in the same proportion that income is distributed for taxable years beginning or deemed to begin before January 1, 2021, under the Internal Revenue Code of 1986, as amended. The department shall provide forms and schedules necessary for verifying eligibility for the credit provided in this section and for allocating the school district taxes paid. For taxable years beginning or deemed to begin on or after January 1, 2021, under the Internal Revenue Code of 1986, as amended, the refundable credit shall be claimed by the corporation having an election in effect under subchapter S of the Internal Revenue Code, the partnership, the limited liability company, the trust, or the estate that paid the school district taxes.

(4) For any fiscal year or short year taxpayer, the credit may be claimed in the first taxable year that begins following the calendar year for which the credit percentage was determined. The credit shall be taken for the school district taxes paid by the taxpayer during the immediately preceding calendar year.

(5) For the first taxable year beginning or deemed to begin on or after January 1, 2021, and before January 1, 2022, under the Internal Revenue Code of 1986, as amended, for a corporation having an election in effect under subchapter S of the Internal Revenue Code, a partnership, a limited liability company, a trust, or an estate that paid school district taxes in calendar year 2020 but did not claim the credit directly or allocate such school district taxes to the shareholders, partners, members, or beneficiaries as permitted under subsection (3) of this section, there shall be allowed an additional refundable credit. This credit shall be equal to six percent, multiplied by the amount of school district taxes paid during 2020 by the eligible taxpayer.

Source:Laws 2020, LB1107, § 113;    Laws 2021, LB181, § 1;    Laws 2022, LB873, § 6;    Laws 2023, LB243, § 18.    
Operative Date: September 2, 2023


Cross References

77-6704. Tax credit; refundable; procedure for certain taxpayers.

The department shall develop a procedure which will allow eligible taxpayers who are not subject to Nebraska income tax or franchise tax to be able to claim and receive the refundable credits allowed under the Nebraska Property Tax Incentive Act.

Source:Laws 2020, LB1107, § 114.    


77-6705. Rules and regulations.

The department may adopt and promulgate rules and regulations to carry out the Nebraska Property Tax Incentive Act.

Source:Laws 2020, LB1107, § 115.    


77-6706. Tax credit for community college taxes paid.

(1) For taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each eligible taxpayer a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 or against the franchise tax imposed by sections 77-3801 to 77-3807.

(2) For taxable years beginning or deemed to begin during calendar year 2022, the credit shall be equal to the credit percentage for the taxable year, as set by the department under this subsection, multiplied by the amount of community college taxes paid by the eligible taxpayer during such taxable year. The department shall set the credit percentage so that the total amount of credits for such taxable years shall be fifty million dollars.

(3) For taxable years beginning or deemed to begin during calendar year 2023, the credit shall be equal to the credit percentage for the taxable year, as set by the department under this subsection, multiplied by the amount of community college taxes paid by the eligible taxpayer during such taxable year. The department shall set the credit percentage so that the total amount of credits for such taxable years shall be one hundred million dollars.

(4) For taxable years beginning or deemed to begin on or after January 1, 2024, the credit shall be equal to one hundred percent of the community college taxes paid by the eligible taxpayer during the taxable year.

(5) If the community college taxes are paid by a corporation having an election in effect under subchapter S of the Internal Revenue Code, a partnership, a limited liability company, a trust, or an estate, the refundable credit shall be claimed by such corporation, partnership, limited liability company, trust, or estate.

(6) For any fiscal year or short year taxpayer, the credit allowed under subsection (2) or (3) of this section may be claimed in the first taxable year that begins following the calendar year for which the credit percentage was determined. The credit shall be taken for the community college taxes paid by the taxpayer during the immediately preceding calendar year.

Source:Laws 2022, LB873, § 7;    Laws 2023, LB243, § 19.    
Operative Date: September 2, 2023


Cross References

77-6801. Act, how cited.

Sections 77-6801 to 77-6846 shall be known and may be cited as the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 1;    Laws 2023, LB92, § 81.    
Operative Date: June 7, 2023


77-6802. Policy.

The Legislature hereby finds and declares that it is the policy of this state to modernize its economic development platform in order to (1) encourage new businesses to relocate to Nebraska, (2) encourage existing businesses to remain and grow in Nebraska, (3) encourage the creation and retention of new, high-paying jobs in Nebraska, (4) attract and retain investment capital in Nebraska, (5) develop the Nebraska workforce, (6) simplify the administration of the tax incentive program created in the ImagiNE Nebraska Act for both businesses and the state, and (7) improve the transparency and accountability of such program.

Source:Laws 2020, LB1107, § 2.    


77-6803. Definitions, where found.

For purposes of the ImagiNE Nebraska Act, the definitions found in sections 77-6804 to 77-6825 shall be used.

Source:Laws 2020, LB1107, § 3.    


77-6804. Additional definitions.

Any term shall have the same meaning as used in Chapter 77, article 27, except as otherwise defined in the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 4.    


77-6805. Base year, defined.

Base year means the year immediately preceding the year of application, subject to the following exceptions:

(1) Except as otherwise provided in subdivision (2) of this section, if the year of application is 2021, the base year is either 2019 or 2020, whichever year the applicant had the larger number of equivalent employees at the qualified location or locations; and

(2) If the year of application is 2021 or 2022 and the applicant increased the number of equivalent employees at the qualified location or locations in either 2020 or 2021 in response to the COVID-19 pandemic, the base year is 2019.

Source:Laws 2020, LB1107, § 5;    Laws 2022, LB1150, § 16.    


77-6806. Base-year employee, defined.

Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the qualified location or locations.

Source:Laws 2020, LB1107, § 6.    


77-6807. Carryover period, defined.

Carryover period means the period of three years immediately following the end of the performance period.

Source:Laws 2020, LB1107, § 7.    


77-6808. Compensation, defined.

Compensation means the wages and other payments subject to the federal medicare tax.

Source:Laws 2020, LB1107, § 8.    


77-6809. Director, defined.

Director means the Director of Economic Development.

Source:Laws 2020, LB1107, § 9.    


77-6810. Equivalent employees, defined.

Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year. Only the hours paid to employees who were employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer shall be included in such computation. A salaried employee who receives a predetermined amount of compensation each pay period on a weekly or less frequent basis is deemed to have been paid for forty hours per week during the pay period.

Source:Laws 2020, LB1107, § 10;    Laws 2021, LB18, § 1.    


77-6811. Investment, defined.

Investment means the value of qualified property incorporated into or used at the qualified location or locations. For qualified property owned by the taxpayer, the value shall be the original cost of the property. Improvements to real estate qualify as investment even if the entire improvement is not finished or ready for use. The percentage of completion of the improvement determines the portion of the investment that has occurred for any given year. For qualified property rented by the taxpayer, the average net annual rent shall be multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation. For purposes of this section, original cost means the amount required to be capitalized for depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended. Any amount, including the labor of the taxpayer, that is capitalized as a part of the cost of the qualified property or that is written off under section 179 of the Internal Revenue Code of 1986, as amended, shall be considered part of the original cost.

Source:Laws 2020, LB1107, § 11;    Laws 2022, LB1150, § 17.    


77-6812. Motor vehicle, defined.

Motor vehicle means any motor vehicle, trailer, or semitrailer as defined in the Motor Vehicle Registration Act and subject to registration for operation on the highways.

Source:Laws 2020, LB1107, § 12.    


Cross References

77-6813. NAICS, defined.

NAICS means the North American Industry Classification System established by the United States Department of Commerce and applied to classify the locations owned or leased by the taxpayer, including the specific NAICS codes and code definitions in effect on January 1, 2020.

Source:Laws 2020, LB1107, § 13.    


77-6814. Nebraska statewide average hourly wage for any year, defined.

Nebraska statewide average hourly wage for any year means the most recent statewide average hourly wage paid by all employers in all counties in Nebraska as calculated by the Office of Labor Market Information of the Department of Labor using annual data from the Quarterly Census of Employment and Wages by October 1 of the year prior to application. Hourly wages shall be calculated by dividing the reported average annual weekly wage by forty.

Source:Laws 2020, LB1107, § 14.    


77-6815. Number of new employees, defined.

(1) Number of new employees, for purposes of subdivisions (1)(b), (4)(d), (5)(c), and (8)(b)(iii) of section 77-6831, means the lesser of:

(a) The number of equivalent employees that are employed at the qualified location or locations during a year that are in excess of the number of equivalent employees during the base year; or

(b) The sum of:

(i) The number of equivalent employees employed full-time at the qualified location or locations during a year who are not base-year employees, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application; and

(ii) The number of equivalent employees who were not employed full-time at the qualified location during the base year and became employed full-time at the qualified location after the base year, after subtracting the hours worked by such employees in the base year, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application.

(2) Number of new employees, for purposes of subdivisions (4)(a)(i) and (5)(a)(i) of section 77-6831, means the lesser of:

(a) The number of equivalent employees that are employed at the qualified location or locations during a year that are in excess of the number of equivalent employees during the base year; or

(b) The sum of:

(i) The number of equivalent employees employed full-time at the qualified location or locations during a year who are not base-year employees, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least ninety percent of the Nebraska statewide average hourly wage for the year of application; and

(ii) The number of equivalent employees who were not employed full-time at the qualified location during the base year and became employed full-time at the qualified location after the base year, after subtracting the hours worked by such employees in the base year, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least ninety percent of the Nebraska statewide average hourly wage for the year of application.

(3) Number of new employees, for purposes of subdivisions (4)(a)(ii) and (5)(a)(ii) of section 77-6831, means the lesser of:

(a) The number of equivalent employees that are employed at the qualified location or locations during a year that are in excess of the number of equivalent employees during the base year; or

(b) The sum of:

(i) The number of equivalent employees employed full-time at the qualified location or locations during a year who are not base-year employees, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least seventy-five percent of the Nebraska statewide average hourly wage for the year of application; and

(ii) The number of equivalent employees who were not employed full-time at the qualified location during the base year and became employed full-time at the qualified location after the base year, after subtracting the hours worked by such employees in the base year, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least seventy-five percent of the Nebraska statewide average hourly wage for the year of application.

(4) Number of new employees, for purposes of subdivisions (4)(a)(iii), (4)(e), (5)(a)(iii), and (5)(d) of section 77-6831, means the lesser of:

(a) The number of equivalent employees that are employed at the qualified location or locations during a year that are in excess of the number of equivalent employees during the base year; or

(b) The sum of:

(i) The number of equivalent employees employed full-time at the qualified location or locations during a year who are not base-year employees, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least seventy percent of the Nebraska statewide average hourly wage for the year of application; and

(ii) The number of equivalent employees who were not employed full-time at the qualified location during the base year and became employed full-time at the qualified location after the base year, after subtracting the hours worked by such employees in the base year, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least seventy percent of the Nebraska statewide average hourly wage for the year of application.

(5) Number of new employees, for all other purposes, except as otherwise provided in the ImagiNE Nebraska Act, means the lesser of:

(a) The number of equivalent employees that are employed at the qualified location or locations during a year that are in excess of the number of equivalent employees during the base year; or

(b) The sum of:

(i) The number of equivalent employees employed full-time at the qualified location or locations during a year who are not base-year employees, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least the Nebraska statewide average hourly wage for the year of application; and

(ii) The number of equivalent employees who were not employed full-time at the qualified location during the base year and became employed full-time at the qualified location after the base year, after subtracting the hours worked by such employees in the base year, who meet the health coverage requirement of subsection (7) of this section, and who are paid compensation at a rate equal to at least the Nebraska statewide average hourly wage for the year of application.

(6) For employees who work both at a qualified location and also perform services for the taxpayer at other nonqualified locations, they will be included in determining the number of new employees if more than fifty percent of the time for which they are compensated is spent at the qualified location. For any year other than the base year, employees who work at the qualified location fifty percent or less of the time for which they are compensated are not considered employed at the qualified location. For employees who work both at a qualified location and also perform services for the taxpayer at the employee's Nebraska residence, the time for which an employee is compensated for services performed at the employee's Nebraska residence will be considered spent at the qualified location.

(7) An employee meets the health coverage requirement if the taxpayer offers to that employee, for that year, the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, as those terms are defined and described in section 5000A of the Internal Revenue Code of 1986, as amended, and the regulations for such section.

(8) For purposes of this section, employed full-time means that the employee is a full-time employee as defined and described in section 4980H of the Internal Revenue Code of 1986, as amended, and the regulations for such section.

Source:Laws 2020, LB1107, § 15;    Laws 2022, LB1150, § 18.    


77-6816. Performance period, defined.

Performance period means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the sixth year after the year the required increases were met or exceeded.

Source:Laws 2020, LB1107, § 16.    


77-6817. Qualified employee leasing company, defined.

Qualified employee leasing company means a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and a client-lessee, grants to the client-lessee input into the hiring and firing of the employees leased to the client-lessee.

Source:Laws 2020, LB1107, § 17.    


77-6818. Qualified location, defined.

(1) Qualified location means a location at which the majority of the business activities conducted are within one or more of the following NAICS codes or the following descriptions:

(a) Manufacturing - 31, 32, or 33, including pre-production services;

(b) Testing Laboratories - 541380;

(c) Rail Transportation - 482;

(d) Truck Transportation - 484;

(e) Insurance Carriers - 5241;

(f) Wired Telecommunications Carriers - 517311;

(g) Wireless Telecommunications Carriers (except Satellite) - 517312;

(h) Telemarketing Bureaus and Other Contact Centers - 561422;

(i) Data Processing, Hosting, and Related Services - 518210;

(j) Computer Facilities Management Services - 541513;

(k) Warehousing and Storage - 4931;

(l) The administrative management of the taxpayer's activities, including headquarter facilities relating to such activities, or the administrative management of any of the activities of any business entity or entities in which the taxpayer or a group of its owners hold any direct or indirect ownership interest of at least ten percent, including headquarter facilities relating to such activities;

(m) Logistics Facilities - Portions of NAICS 488210, 488310, and 488490 dealing with independently operated trucking terminals, independently operated railroad and railway terminals, and waterfront terminal and port facility operations;

(n) Services provided on aircraft brought into this state by an individual who is a resident of another state or any other person who has a business location in another state when the aircraft is not to be registered or based in this state and will not remain in this state more than ten days after the service is completed;

(o) The conducting of research, development, or testing, or any combination thereof, for scientific, agricultural, animal husbandry, food product, industrial, or technology purposes;

(p) The production of electricity by using one or more sources of renewable energy to produce electricity for sale. For purposes of this subdivision, sources of renewable energy includes, but is not limited to, wind, solar, energy storage, geothermal, hydroelectric, biomass, nuclear, and transmutation of elements;

(q) Computer Systems Design and Related Services - 5415;

(r) The performance of financial services. For purposes of this subdivision, financial services includes only financial services provided by any financial institution subject to tax under Chapter 77, article 38, or any person or entity licensed by the Department of Banking and Finance or the federal Securities and Exchange Commission;

(s) Postharvest Crop Activities (except Cotton Ginning) - 115114;

(t) The processing of tangible personal property. For purposes of this subdivision, processing means to subject to a particular method, system, or technique of preparation, handling, or other treatment designed to prepare tangible personal property for market, manufacture, or other commercial use which does not result in the transformation of such property into a substantially different character; or

(u) Waste Treatment and Disposal - 5622.

(2)(a) Qualified location also includes any other business location if at least seventy-five percent of the revenue derived at the location is from sales to customers who are not related persons which are delivered or provided from the qualified location to a location that is not within Nebraska according to the sourcing rules in subsections (2) and (3) of section 77-2734.14. Intermediate sales to related persons are included as sales to customers delivered or provided to a location outside Nebraska if the related person delivers or provides the goods or services to a location outside Nebraska. Even if a location meets the seventy-five percent requirement of this subdivision, such location shall not constitute a qualified location under this subdivision if the majority of the business activities conducted at such location are within any of the following NAICS codes or any combination thereof:

(i) Agriculture, Forestry, Fishing and Hunting - 11, excluding NAICS code 115114;

(ii) Transportation and Warehousing - 48-49;

(iii) Information - 51;

(iv) Utilities - 22;

(v) Mining, Quarrying, and Oil and Gas Extraction - 21;

(vi) Public Administration - 92; or

(vii) Construction - 23.

(b) The director may adopt and promulgate rules and regulations establishing an alternative method in circumstances in which subdivision (2)(a) of this section does not accurately reflect the out-of-state sales taking place at locations within Nebraska for a particular industry.

(3) The determination of the majority of the business activities shall be made based on the number of employees working in the respective business activities. The director may adopt and promulgate rules and regulations establishing an alternative method in circumstances in which other factors provide a better reflection of business activities.

(4) The delineation of the types of business activities which enable a location to constitute a qualified location is based on the state's intention to attract certain types of business activities and to responsibly accomplish the purposes of the ImagiNE Nebraska Act by directing the state's incentive capabilities towards business activities which, due to their national nature, could locate outside of Nebraska and which therefore would, through the use of incentives, be motivated to locate in Nebraska. By listing specific types of business activities in subsection (1) of this section, the state has determined such business activities by their nature meet these objectives. By specifying the national nature of a taxpayer's revenue in subsection (2) of this section, the state has determined that certain other types of business activities can meet these objectives.

Source:Laws 2020, LB1107, § 18;    Laws 2021, LB18, § 2;    Laws 2021, LB84, § 2;    Laws 2023, LB727, § 99.    
Operative Date: June 7, 2023


77-6819. Qualified property, defined.

Qualified property means any tangible property of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property, that will be located and used at the project. Qualified property does not include (1) aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or (2) property that is rented by the taxpayer qualifying under the ImagiNE Nebraska Act to another person. Qualified property of the taxpayer located at the residence of an employee working in Nebraska from his or her residence on tasks interdependent with the work performed at the project shall be deemed located and used at the project.

Source:Laws 2020, LB1107, § 19.    


77-6820. Ramp-up period, defined.

Ramp-up period means the period of time from the date of the complete application through the end of the fourth year after the year in which the complete application was filed with the director.

Source:Laws 2020, LB1107, § 20.    


77-6821. Related persons, defined.

Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under either section 267(b) and (c) or section 707(b) of the Internal Revenue Code of 1986, as amended.

Source:Laws 2020, LB1107, § 21.    


77-6822. Taxpayer, defined.

Taxpayer means any person subject to sales and use taxes under the Nebraska Revenue Act of 1967 and subject to withholding under section 77-2753 and any entity that is or would otherwise be a member of the same unitary group, if incorporated, that is subject to such sales and use taxes and such withholding. Taxpayer does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended. For purposes of this section, political subdivision includes any public corporation created for the benefit of a political subdivision and any group of political subdivisions forming a joint public agency, organized by interlocal agreement, or utilizing any other method of joint action.

Source:Laws 2020, LB1107, § 22.    


Cross References

77-6823. Wages, defined.

Wages means compensation, not to exceed one million dollars per year for any employee.

Source:Laws 2020, LB1107, § 23.    


77-6824. Year, defined.

Year means calendar year.

Source:Laws 2020, LB1107, § 24.    


77-6825. Year of application, defined.

Year of application means the year that a completed application is filed under the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 25.    


77-6826. Qualified employee leasing company; employees; duty.

An employee of a qualified employee leasing company shall be considered to be an employee of the client-lessee for purposes of the ImagiNE Nebraska Act if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue with access to the records of employees leased to the client-lessee.

Source:Laws 2020, LB1107, § 26.    


77-6827. Incentives; application; contents; fee; approval; when; application; deadlines.

(1) In order to utilize the incentives allowed in the ImagiNE Nebraska Act, the taxpayer shall file an application with the director, on a form developed by the director, requesting an agreement.

(2) The application shall:

(a) Identify the taxpayer applying for incentives;

(b) Identify all locations sought to be within the agreement and the reason each such location constitutes or is expected to constitute a qualified location;

(c) State the estimated, projected amount of new investment and the estimated, projected number of new employees;

(d) Identify the required levels of employment and investment for the various incentives listed within section 77-6831 that will govern the agreement. The taxpayer may identify different levels of employment and investment until the first December 31 following the end of the ramp-up period on a form approved by the director. The identified levels of employment and investment will govern all years covered under the agreement;

(e) Identify whether the agreement is for a single qualified location, all qualified locations within a county, all qualified locations in more than one county, or all qualified locations within the state;

(f) Acknowledge that the taxpayer understands the requirements for offering health coverage, and for reporting the value of such coverage, as specified in the ImagiNE Nebraska Act;

(g) Acknowledge that the taxpayer does not violate any state or federal law against discrimination;

(h) Acknowledge that the taxpayer understands the requirements for providing a sufficient package of benefits to its employees as specified in the ImagiNE Nebraska Act; and

(i) Contain a nonrefundable application fee of five thousand dollars. The fee shall be remitted to the State Treasurer for credit to the Nebraska Incentives Fund.

(3) An application must be complete to establish the date of the application. An application shall be considered complete once it contains the items listed in subsection (2) of this section.

(4) Once satisfied that the application is consistent with the purposes stated in the ImagiNE Nebraska Act for one or more qualified locations within this state, the director shall approve the application, subject to the base authority limitations provided in section 77-6839.

(5) The director shall make his or her determination to approve or not approve an application within ninety days after the date of the application. If the director requests, by mail or by electronic means, additional information or clarification from the taxpayer in order to make his or her determination, such ninety-day period shall be tolled from the time the director makes the request to the time he or she receives the requested information or clarification from the taxpayer. The taxpayer and the director may also agree to extend the ninety-day period. If the director fails to make his or her determination within the prescribed ninety-day period, the application is deemed approved, subject to the base authority limitations provided in section 77-6839.

(6) There shall be no new applications for incentives filed under this section after December 31, 2030. All complete applications filed on or before December 31, 2030, shall be considered by the director and approved if the location or locations and taxpayer qualify for benefits, subject to the base authority limitations provided in section 77-6839. Agreements may be executed with regard to complete applications filed on or before December 31, 2030. All agreements pending, approved, or entered into before such date shall continue in full force and effect.

Source:Laws 2020, LB1107, § 27.    


77-6828. Agreement; requirements; contents; confidentiality; exceptions; duration of agreement; incentives; use.

(1) Within ninety days after approval of the application, the director shall prepare and deliver a written agreement to the taxpayer for the taxpayer's signature. The taxpayer and the director shall enter into such written agreement. Under the agreement, the taxpayer shall agree to increase employment or investment at the qualified location or locations, report compensation, wage, and hour data at the qualified location or locations to the Department of Revenue annually, and report all qualified property at the qualified location or locations to the Department of Revenue annually. The director, on behalf of the State of Nebraska, shall agree to allow the taxpayer to use the incentives contained in the ImagiNE Nebraska Act. The application, and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The qualified location or locations. If a location or locations are to be qualified under subsection (2) of section 77-6818, the agreement must include a commitment by the taxpayer that the seventy-five percent requirement of such subsection will be met;

(b) The type of documentation the taxpayer will need to supply to support its claim for incentives under the act;

(c) The date the application was complete;

(d) The E-verify number or numbers for the qualified location or locations provided by the United States Citizenship and Immigration Services;

(e) A requirement that the taxpayer provide any information needed by the director or the Tax Commissioner to perform their respective responsibilities under the ImagiNE Nebraska Act, in the manner specified by the director or Tax Commissioner;

(f) A requirement that the taxpayer provide an annually updated timetable showing the expected sales and use tax refunds and what year they are expected to be claimed, in the manner specified by the Tax Commissioner. The timetable shall include both direct refunds due to investment and credits taken as sales and use tax refunds as accurately as reasonably possible;

(g) A requirement that the taxpayer update the Tax Commissioner annually, with its income tax return or in the manner specified by the Tax Commissioner, on any changes in plans or circumstances which it reasonably expects will affect the level of new investment and number of new employees at the qualified location or locations. If the taxpayer fails to comply with this requirement, the Tax Commissioner may defer any pending incentive utilization until the taxpayer does comply;

(h) A requirement that the taxpayer provide information regarding the value of health coverage provided to employees during the year who are not base-year employees and who are paid the required compensation as needed by the director or the Tax Commissioner to perform their respective responsibilities under the ImagiNE Nebraska Act, in the manner specified by the director or Tax Commissioner;

(i) A requirement that the taxpayer not violate any state or federal law against discrimination;

(j) A requirement that the taxpayer offer a sufficient package of benefits to the employees employed full-time at the qualified location or locations during the year who are not base-year employees and who are paid the required compensation. If a taxpayer does not offer a sufficient package of benefits to any such employee for any year during the performance period, that employee shall not count toward the number of new employees for such year. For purposes of this subdivision, benefits means nonwage remuneration offered to an employee, including medical and dental insurance plans, pension, retirement, and profit-sharing plans, child care services, life insurance coverage, vision insurance coverage, disability insurance coverage, and any other nonwage remuneration as determined by the director. The director may adopt and promulgate rules and regulations to specify what constitutes a sufficient package of benefits. In determining what constitutes a sufficient package of benefits, the director shall consider (i) benefit packages customarily offered in Nebraska by private employers to full-time employees, (ii) the impact of the cost of such benefits on the ability to attract new employment and investment under the ImagiNE Nebraska Act, and (iii) the costs that employees must bear to obtain benefits not offered by an employer; and

(k) A requirement that the taxpayer provide the following information for the purpose of tax incentive performance audits:

(i) The most recent taxable valuations and levy rates for all qualified locations;

(ii) If credits are used for job training pursuant to subdivision (1)(e) of section 77-6832, a program schedule of the job training activities; and

(iii) If credits are used for talent recruitment pursuant to subdivision (1)(e) of section 77-6832, the city and state where recruited employees lived when the talent recruitment activities took place.

(2) The application, the agreement, all supporting information, and all other information reported to the director or the Tax Commissioner shall be kept confidential by the director and the Tax Commissioner, except for the name of the taxpayer, the qualified location or locations in the agreement, the estimated amounts of increased employment and investment stated in the application, the date of complete application, the date the agreement was signed, and the information required to be reported by section 77-6837. The application, the agreement, and all supporting information shall be provided by the director to the Department of Revenue. The director shall disclose, to any municipalities in which project locations exist, the approval of an application and the execution of an agreement under this section. The Tax Commissioner shall also notify each municipality of the amount and taxpayer identity for each refund of local option sales and use taxes of the municipality within thirty days after the refund is allowed or approved. Disclosures shall be kept confidential by the municipality unless publicly disclosed previously by the taxpayer or by the State of Nebraska.

(3) An agreement under the ImagiNE Nebraska Act shall have a duration of no more than fifteen years. A taxpayer with an existing agreement may apply for and receive a new agreement for any qualified location or locations that are not part of an existing agreement under the ImagiNE Nebraska Act, but cannot apply for a new agreement for a qualified location designated in an existing agreement until after the end of the performance period for the existing agreement.

(4) The incentives contained in the ImagiNE Nebraska Act shall be in lieu of the tax credits allowed by the Nebraska Advantage Rural Development Act for any project. In computing credits under the Nebraska Advantage Rural Development Act, any investment or employment which is eligible for benefits or used in determining benefits under the ImagiNE Nebraska Act shall be subtracted from the increases computed for determining the credits under section 77-27,188. New investment or employment at a project location that results in the meeting or maintenance of the employment or investment requirements, the creation of credits, or refunds of taxes under the Nebraska Advantage Act shall not be considered new investment or employment for purposes of the ImagiNE Nebraska Act. The use of carryover credits under the Nebraska Advantage Act, the Employment and Investment Growth Act, the Invest Nebraska Act, the Nebraska Advantage Rural Development Act, or the Quality Jobs Act shall not preclude investment and employment from being considered new investment or employment under the ImagiNE Nebraska Act. The use of property tax exemptions at the project under the Employment and Investment Growth Act or the Nebraska Advantage Act does not preclude investment not eligible for such property tax exemptions from being considered new investment under the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 28;    Laws 2022, LB1150, § 19.    


Cross References

77-6829. Qualified locations; base-year employment, compensation, and wage levels; review and certification; effect.

(1) The taxpayer may request the director to review and certify that the location or locations designated in the application are qualified locations under the ImagiNE Nebraska Act. The taxpayer shall describe in detail the activities taking place at the location or locations or the activities that will be taking place at the location or locations. The director shall make the determination based on the information provided by the taxpayer. The director must complete the review within ninety days after the request. If the director requests, by mail or by electronic means, additional information or clarification from the taxpayer in order to make his or her determination, the ninety-day period shall be tolled from the time the director makes the request to the time he or she receives the requested information or clarification from the taxpayer. The taxpayer and the director may also agree to extend the ninety-day period. If the director fails to make his or her determination within the prescribed ninety-day period, the certification is deemed approved for the disclosed activities.

(2) The taxpayer may request the Tax Commissioner to review and certify that the base-year employment, compensation, and wage levels are as reported by the taxpayer pursuant to subsection (1) of section 77-6828. Upon a request for such review, the Tax Commissioner shall be given access to the employment and business records of the proposed location or locations and must complete the review within one hundred eighty days after the request. If the Tax Commissioner requests, by mail or by electronic means, additional information or clarification from the taxpayer in order to make his or her determination, the one-hundred-eighty-day period shall be tolled from the time the Tax Commissioner makes the request to the time he or she receives the requested information or clarification from the taxpayer. The taxpayer and the Tax Commissioner may also agree to extend the one-hundred-eighty-day period. If the Tax Commissioner fails to make his or her determination within the prescribed one-hundred-eighty-day period, the certification is deemed approved.

(3) Upon review, the director may approve, reject, or amend the qualified locations sought in the application contingent upon the accuracy of the information or plans disclosed by the taxpayer that describe the expected activity at the qualified location or locations. Upon review, the Tax Commissioner may also approve or amend the base-year employment, compensation, or wage levels reported pursuant to subsection (1) of section 77-6828 based upon the payroll information and other financial records provided by the taxpayer. Once the director or Tax Commissioner certifies the qualified location or locations and the employment, compensation, and wage levels at the qualified location or locations, the certification is binding on the Department of Revenue when the taxpayer claims benefits on a return to the extent the activities performed at the location or locations are as described in the application, the information and plans provided by the taxpayer were accurate, and the base-year information is not affected by transfers of employees from another location in Nebraska, the acquisition of a business, or moving businesses or entities to or from the qualified location or locations.

(4) If the taxpayer does not request review and certification of whether the designated location or locations are qualified, or the base-year employment, compensation, and wage levels, those items are subject to later audit by the Department of Revenue.

Source:Laws 2020, LB1107, § 29.    


77-6830. Transactions and activities excluded.

The following transactions or activities shall not create any credits or allow any benefits under the ImagiNE Nebraska Act except as specifically allowed by this section:

(1) The acquisition of a business after the date of application which is continued by the taxpayer as a part of the agreement and which was operated in this state during the three hundred sixty-six days prior to the date of acquisition. All employees of the entities added to the taxpayer by the acquisition during the three hundred sixty-six days prior to the date of acquisition shall be considered employees during the base year. Any investment prior to the date of acquisition made by the entities added to the taxpayer by the acquisition or any investment in the acquisition of such business shall be considered as being made before the date of application;

(2) The moving of a business from one location to another, which business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such three hundred sixty-six days shall be considered base-year employees;

(3) The purchase or lease of any property which was previously owned by the taxpayer or a related person. The first purchase by either the taxpayer or a related person shall be treated as investment if the item was first placed in service in the state after the date of the application;

(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of any benefit or the meeting of any required levels under the agreement;

(5) Any purchase or lease of property from a related person, except that the taxpayer will be allowed any benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the taxpayer;

(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in the state; and

(7) Any activity that results in benefits under the Ethanol Development Act.

Source:Laws 2020, LB1107, § 30.    


Cross References

77-6831. Tax incentives; amount; conditions; fee; ImagiNE Nebraska Cash Fund; created; use; investment.

(1) A taxpayer shall be entitled to the sales and use tax incentives contained in subsection (2) of this section if the taxpayer:

(a) Attains a cumulative investment in qualified property of at least five million dollars and hires at least thirty new employees at the qualified location or locations before the end of the ramp-up period;

(b) Attains a cumulative investment in qualified property of at least two hundred fifty million dollars and hires at least two hundred fifty new employees at the qualified location or locations before the end of the ramp-up period; or

(c) Attains a cumulative investment in qualified property of at least fifty million dollars at the qualified location or locations before the end of the ramp-up period. To receive incentives under this subdivision, the taxpayer must meet the following conditions:

(i) The average compensation of the taxpayer's employees at the qualified location or locations for each year of the performance period must equal at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application;

(ii) The taxpayer must offer to its employees who constitute full-time employees as defined and described in section 4980H of the Internal Revenue Code of 1986, as amended, and the regulations for such section, at the qualified location or locations for each year of the performance period, the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, as those terms are defined and described in section 5000A of the Internal Revenue Code of 1986, as amended, and the regulations for such section; and

(iii) The taxpayer must offer a sufficient package of benefits as described in subdivision (1)(j) of section 77-6828.

(2) A taxpayer meeting the requirements of subsection (1) of this section shall be entitled to the following sales and use tax incentives:

(a) A refund of all sales and use taxes paid under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, the Qualified Judgment Payment Act, and sections 13-319, 13-324, and 13-2813 from the date of the complete application through the meeting of the required levels of employment and investment for all purchases, including rentals, of:

(i) Qualified property used at the qualified location or locations;

(ii) Property, excluding motor vehicles, based in this state and used in both this state and another state in connection with the qualified location or locations except when any such property is to be used for fundraising for or for the transportation of an elected official;

(iii) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the owner of the improvement to real estate when such property is incorporated into real estate at the qualified location or locations. The refund shall be based on fifty percent of the contract price, excluding any land, as the cost of materials subject to the sales and use tax;

(iv) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the taxpayer when such property is annexed to, but not incorporated into, real estate at the qualified location or locations. The refund shall be based on the cost of materials subject to the sales and use tax that were annexed to real estate; and

(v) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the taxpayer when such property is both (A) incorporated into real estate at the qualified location or locations and (B) annexed to, but not incorporated into, real estate at the qualified location or locations. The refund shall be based on fifty percent of the contract price, excluding any land, as the cost of materials subject to the sales and use tax; and

(b) An exemption from all sales and use taxes under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, the Qualified Judgment Payment Act, and sections 13-319, 13-324, and 13-2813 on the types of purchases, including rentals, listed in subdivision (a) of this subsection for such purchases, including rentals, occurring during each year of the performance period in which the taxpayer is at or above the required levels of employment and investment, except that the exemption shall be for the actual materials purchased with respect to subdivisions (2)(a)(iii), (iv), and (v) of this section. The Tax Commissioner shall issue such rules, regulations, certificates, and forms as are appropriate to implement the efficient use of this exemption.

(3)(a) Upon execution of the agreement, the taxpayer shall be issued a direct payment permit under section 77-2705.01, notwithstanding the three million dollars in purchases limitation in subsection (1) of section 77-2705.01, for each qualified location specified in the agreement, unless the taxpayer has opted out of this requirement in the agreement. For any taxpayer who is issued a direct payment permit, until such taxpayer makes the investment in qualified property and hires the new employees at the qualified location or locations as specified in subsection (1) of this section, the taxpayer must pay and remit any applicable sales and use taxes as required by the Tax Commissioner.

(b) If the taxpayer makes the investment in qualified property and hires the new employees at the qualified location or locations as specified in subsection (1) of this section, the taxpayer shall receive the sales tax refunds described in subdivision (2)(a) of this section. For any year in which the taxpayer is not at the required levels of employment and investment, the taxpayer shall report all sales and use taxes owed for the period on the taxpayer's tax return.

(4) The taxpayer shall be entitled to one of the following credits for payment of wages to new employees:

(a)(i) If a taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to four percent times the average wage of new employees times the number of new employees. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision;

(ii) If the taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location in a county in Nebraska with a population of one hundred thousand or greater, and at which the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to four percent times the average wage of new employees times the number of new employees. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision; or

(iii) If the taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location or locations within one or more counties in Nebraska that each have a population of less than one hundred thousand, and at which the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to six percent times the average wage of new employees times the number of new employees. For purposes of meeting the ten-employee requirement of this subdivision, the number of new employees shall be multiplied by two. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision;

(b) If a taxpayer hires at least twenty new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to five percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred percent of the Nebraska statewide average hourly wage for the year of application. The credit shall equal seven percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application. The credit shall equal nine percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least two hundred percent of the Nebraska statewide average hourly wage for the year of application. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision;

(c) If a taxpayer attains a cumulative investment in qualified property of at least five million dollars and hires at least thirty new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to five percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred percent of the Nebraska statewide average hourly wage for the year of application. The credit shall equal seven percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application. The credit shall equal nine percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least two hundred percent of the Nebraska statewide average hourly wage for the year of application. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision;

(d) If a taxpayer attains a cumulative investment in qualified property of at least two hundred fifty million dollars and hires at least two hundred fifty new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to seven percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application. The credit shall equal nine percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least two hundred percent of the Nebraska statewide average hourly wage for the year of application. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision; or

(e) If a taxpayer attains a cumulative investment in qualified property of at least two hundred fifty thousand dollars but less than one million dollars and hires at least five new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location within an economic redevelopment area, the taxpayer shall be entitled to a credit equal to six percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least seventy percent of the Nebraska statewide average hourly wage for the year of application. Wages in excess of one million dollars paid to any one employee during the year shall be excluded from the calculations under this subdivision. For purposes of this subdivision, economic redevelopment area means an area in which (i) the average rate of unemployment in the area during the period covered by the most recent federal decennial census or American Community Survey 5-Year Estimate is at least one hundred fifty percent of the average rate of unemployment in the state during the same period and (ii) the average poverty rate in the area exceeds twenty percent for the total federal census tract or tracts or federal census block group or block groups in the area.

(5) The taxpayer shall be entitled to one of the following credits for new investment:

(a)(i) If a taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations;

(ii) If the taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location in a county in Nebraska with a population of one hundred thousand or greater, and at which the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations unless the cumulative investment exceeds ten million dollars, in which case the taxpayer shall be entitled to a credit equal to seven percent of the investment made in qualified property at the qualified location or locations; or

(iii) If the taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location or locations within one or more counties in Nebraska that each have a population of less than one hundred thousand, and at which the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations unless the cumulative investment exceeds ten million dollars, in which case the taxpayer shall be entitled to a credit equal to seven percent of the investment made in qualified property at the qualified location or locations. For purposes of meeting the ten-employee requirement of this subdivision, the number of new employees shall be multiplied by two;

(b) If a taxpayer attains a cumulative investment in qualified property of at least five million dollars and hires at least thirty new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to seven percent of the investment made in qualified property at the qualified location or locations;

(c) If a taxpayer attains a cumulative investment in qualified property of at least two hundred fifty million dollars and hires at least two hundred fifty new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to seven percent of the investment made in qualified property at the qualified location or locations; or

(d) If a taxpayer attains a cumulative investment in qualified property of at least two hundred fifty thousand dollars but less than one million dollars and hires at least five new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location within an economic redevelopment area, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations. For purposes of this subdivision, economic redevelopment area means an area in which (i) the average rate of unemployment in the area during the period covered by the most recent federal decennial census or American Community Survey 5-Year Estimate is at least one hundred fifty percent of the average rate of unemployment in the state during the same period and (ii) the average poverty rate in the area exceeds twenty percent for the total federal census tract or tracts or federal census block group or block groups in the area.

(6)(a) The credit percentages prescribed in subdivisions (4)(a), (b), (c), and (d) and subdivisions (5)(a), (b), and (c) of this section shall be increased by one percentage point for wages paid and investments made at qualified locations in an extremely blighted area. For purposes of this subdivision, extremely blighted area means an area which, before the end of the ramp-up period, has been declared an extremely blighted area under section 18-2101.02.

(b) The credit percentages prescribed in subsections (4) and (5) of this section shall be increased by one percentage point if the taxpayer:

(i) Is a benefit corporation as defined in section 21-403 and has been such a corporation for at least one year prior to submitting an application under the ImagiNE Nebraska Act; and

(ii) Remains a benefit corporation as defined in section 21-403 for the duration of the taxpayer's agreement under the ImagiNE Nebraska Act.

(c) A taxpayer may, if qualified, receive one or both of the increases provided in this subsection.

(7)(a) The credits prescribed in subsections (4) and (5) of this section shall be allowable for wages paid and investments made during each year of the performance period that the taxpayer is at or above the required levels of employment and investment.

(b) The credits prescribed in subsection (5) of this section shall also be allowable during the first year of the performance period for investment in qualified property at the qualified location or locations after the date of the complete application and before the beginning of the performance period.

(8)(a) Property described in subdivision (8)(c) of this section used at the qualified location or locations, whether purchased or leased, and placed in service by the taxpayer after the date of the complete application, shall constitute separate classes of property and are eligible for exemption under the conditions and for the time periods provided in subdivision (8)(b) of this section.

(b) A taxpayer shall receive the exemption of property in subdivision (8)(c) of this section if the taxpayer attains one of the following employment and investment levels: (i) Cumulative investment in qualified property of at least five million dollars and the hiring of at least thirty new employees at the qualified location or locations before the end of the ramp-up period; (ii) cumulative investment in qualified property of at least fifty million dollars at the qualified location or locations before the end of the ramp-up period, provided the average compensation of the taxpayer's employees at the qualified location or locations for the year in which such investment level was attained equals at least one hundred fifty percent of the Nebraska statewide average hourly wage for the year of application and the taxpayer offers to its employees who constitute full-time employees as defined and described in section 4980H of the Internal Revenue Code of 1986, as amended, and the regulations for such section, at the qualified location or locations for the year in which such investment level was attained, the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, as those terms are defined and described in section 5000A of the Internal Revenue Code of 1986, as amended, and the regulations for such section; or (iii) cumulative investment in qualified property of at least two hundred fifty million dollars and the hiring of at least two hundred fifty new employees at the qualified location or locations before the end of the ramp-up period. Such property shall be eligible for the exemption from the first January 1 following the end of the year during which the required levels were exceeded through the ninth December 31 after the first year property included in subdivision (8)(c) of this section qualifies for the exemption, except that for a taxpayer who has filed an application under NAICS code 518210 for Data Processing, Hosting, and Related Services and who files a separate sequential application for the same NAICS code for which the ramp-up period begins with the year immediately after the end of the previous project's performance period or a taxpayer who has a project qualifying under subdivision (1)(b)(ii) of section 77-5725 and who files a separate sequential application for NAICS code 518210 for Data Processing, Hosting, and Related Services for which the ramp-up period begins with the year immediately after the end of the previous project's entitlement period, such property described in subdivision (8)(c)(i) of this section shall be eligible for the exemption from the first January 1 following the placement in service of such property through the ninth December 31 after the year the first claim for exemption is approved.

(c) The following personal property used at the qualified location or locations, whether purchased or leased, and placed in service by the taxpayer after the date of the complete application shall constitute separate classes of personal property:

(i) All personal property that constitutes a data center if the taxpayer qualifies under subdivision (8)(b)(i) or (8)(b)(ii) of this section;

(ii) Business equipment that is located at a qualified location or locations and that is involved directly in the manufacture or processing of agricultural products if the taxpayer qualifies under subdivision (8)(b)(i) or (8)(b)(ii) of this section; or

(iii) All personal property if the taxpayer qualifies under subdivision (8)(b)(iii) of this section.

(d) In order to receive the property tax exemptions allowed by subdivision (8)(c) of this section, the taxpayer shall annually file a claim for exemption with the Tax Commissioner on or before May 1. The form and supporting schedules shall be prescribed by the Tax Commissioner and shall list all property for which exemption is being sought under this section. A separate claim for exemption must be filed for each agreement and each county in which property is claimed to be exempt. A copy of this form must also be filed with the county assessor in each county in which the applicant is requesting exemption. The Tax Commissioner shall determine whether a taxpayer is eligible to obtain exemption for personal property based on the criteria for exemption and the eligibility of each item listed for exemption and, on or before August 1, certify such determination to the taxpayer and to the affected county assessor.

(9) The taxpayer shall, on or before the receipt or use of any incentives under this section, pay to the director a fee of one-half percent of such incentives, except for the exemption on personal property, for administering the ImagiNE Nebraska Act, except that the fee on any sales tax exemption may be paid by the taxpayer with the filing of its sales and use tax return. Such fee may be paid by direct payment to the director or through withholding of available refunds. A credit shall be allowed against such fee for the amount of the fee paid with the application. All fees collected under this subsection shall be remitted to the State Treasurer for credit to the ImagiNE Nebraska Cash Fund, which fund is hereby created. The fund shall consist of fees credited under this subsection and any other money appropriated to the fund by the Legislature. The fund shall be administered by the Department of Economic Development and shall be used for administration of the ImagiNE Nebraska Act. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source:Laws 2020, LB1107, § 31;    Laws 2022, LB1150, § 20;    Laws 2022, LB1261, § 16.    


Cross References

77-6832. Income tax credits; use; tax incentive credits; use; refund claims; filing requirements; audit; director; Tax Commissioner; powers and duties; appeal.

(1)(a) The credits prescribed in section 77-6831 for a year shall be established by filing the forms required by the Tax Commissioner with the income tax return for the taxable year which includes the end of the year the credits were earned. The credits may be used and shall be applied in the order in which they were first allowable under the ImagiNE Nebraska Act. To the extent the taxpayer has credits under the Nebraska Advantage Act or the Employment and Investment Growth Act still available for use in a year or years which overlap the performance period or carryover period of the ImagiNE Nebraska Act, the credits may be used and shall be applied in the order in which they were first allowable, and when there are credits of the same age, the older tax incentive program's credits shall be applied first. The credits may be used after any other nonrefundable credits to reduce the taxpayer's income tax liability imposed by sections 77-2714 to 77-27,135. Credits may be used beginning with the taxable year which includes December 31 of the year the required minimum levels were reached. The last year for which credits may be used is the taxable year which includes December 31 of the last year of the carryover period. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section.

(b) The taxpayer may use the credit provided in subsection (4) of section 77-6831 (i) to reduce the taxpayer's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757, to the extent such liability is attributable to the number of new employees employed at the qualified location or locations, excluding any wages in excess of one million dollars paid to any one employee during the year or (ii) to reduce a qualified employee leasing company's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757, when the taxpayer is the client-lessee of such company, to the extent such liability is attributable to the number of new employees performing services for such client-lessee at the qualified location or locations, excluding any wages in excess of one million dollars paid to any one employee during the year. To the extent of the credit used, such withholding shall not constitute public funds or state tax revenue and shall not constitute a trust fund or be owned by the state. The use by the taxpayer or the qualified employee leasing company of the credit shall not change the amount that otherwise would be reported by the taxpayer, or such qualified employee leasing company, to the employee under section 77-2754 as income tax withheld and shall not reduce the amount that otherwise would be allowed by the state as a refundable credit on an employee's income tax return as income tax withheld under section 77-2755. The amount of credits used against income tax withholding shall not exceed the withholding attributable to the number of new employees employed at the qualified location or locations or, for a qualified employee leasing company, the number of new employees performing services for the applicable client-lessee at the qualified location or locations, excluding any wages in excess of one million dollars paid to any one employee during the year. If the amount of credit used by the taxpayer or the qualified employee leasing company against income tax withholding exceeds such amount, the excess withholding shall be returned to the Department of Revenue in the manner provided in section 77-2756, such excess amount returned shall be considered unused, and the amount of unused credits may be used as otherwise permitted in this section or shall carry over to the extent authorized in subdivision (1)(g) of this section.

(c) Credits may be used to obtain a refund of sales and use taxes under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, the Qualified Judgment Payment Act, and sections 13-319, 13-324, and 13-2813 that are not subject to direct refund under section 77-6831 and that are paid on purchases, including rentals, for use at a qualified location.

(d) The credits provided in subsections (4) and (5) of section 77-6831 may be used to repay a loan for job training or infrastructure development as provided in section 77-6841.

(e) Credits may be used to obtain a payment from the state equal to the amount which the taxpayer demonstrates to the director was paid by the taxpayer after the date of the complete application for job training and talent recruitment of employees who qualify in the number of new employees, to the extent that proceeds from a loan described in section 77-6841 were not used to make such payments. For purposes of this subdivision:

(i) Job training means training for a prospective or new employee that is provided after the date of the complete application by a Nebraska nonprofit college or university, a Nebraska public or private secondary school, a Nebraska educational service unit, or a company that is not a member of the taxpayer's unitary group or a related person to the taxpayer; and

(ii) Talent recruitment means talent recruitment activities that result in a newly recruited employee who is hired by the taxpayer after the date of the complete application and who is paid compensation during the year of hire at a rate equal to at least one hundred percent of the Nebraska statewide average hourly wage for the year of application, including marketing, relocation expenses, and search-firm fees. Talent recruitment payments that may be reimbursed include, without limitation, payment by the taxpayer, without repayment by the employee, of an employee's student loans, an employee's tuition, and an employee's downpayment on a primary residence in Nebraska. Talent recruitment payments that may be reimbursed shall not include payments for the recruitment of a person who constitutes a related person to the taxpayer when the taxpayer is an individual or recruitment of a person who constitutes a related person to an owner of the taxpayer when the taxpayer is a partnership, a limited liability company, or a subchapter S corporation.

(f) The credits provided in subsections (4) and (5) of section 77-6831 may be used to obtain a payment from the state equal to the amount which the taxpayer demonstrates to the director was paid for taxpayer-sponsored child care at the qualified location or locations during the performance period and the carryover period.

(g) Credits may be carried over until fully utilized through the end of the carryover period.

(2)(a) No refund claims shall be filed until after the required levels of employment and investment have been met.

(b) Refund claims shall be filed no more than once each quarter for refunds under the ImagiNE Nebraska Act, except that any claim for a refund in excess of twenty-five thousand dollars may be filed at any time.

(c) Refund claims for materials purchased by a purchasing agent shall include:

(i) A copy of the purchasing agent appointment;

(ii) The contract price; and

(iii)(A) For refunds under subdivision (2)(a)(iii) or (2)(a)(v) of section 77-6831, a certification by the contractor or repairperson of the percentage of the materials incorporated into or annexed to the qualified location on which sales and use taxes were paid to Nebraska after appointment as purchasing agent; or

(B) For refunds under subdivision (2)(a)(iv) of section 77-6831, a certification by the contractor or repairperson of the percentage of the contract price that represents the cost of materials annexed to the qualified location and the percentage of the materials annexed to the qualified location on which sales and use taxes were paid to Nebraska after appointment as purchasing agent.

(d) All refund claims shall be filed, processed, and allowed as any other claim under section 77-2708, except that the amounts allowed to be refunded under the ImagiNE Nebraska Act shall be deemed to be overpayments and shall be refunded notwithstanding any limitation in subdivision (2)(a) of section 77-2708. The refund may be allowed if the claim is filed within three years from the end of the year the required levels of employment and investment are met or within the period set forth in section 77-2708. Refunds shall be paid by the Tax Commissioner within one hundred eighty days after receipt of the refund claim. Such payments shall be subject to later recovery by the Tax Commissioner upon audit.

(e) If a claim for a refund of sales and use taxes under the Local Option Revenue Act, the Qualified Judgment Payment Act, or sections 13-319, 13-324, and 13-2813 of more than twenty-five thousand dollars is filed by June 15 of a given year, the refund shall be made on or after November 15 of the same year. If such a claim is filed on or after June 16 of a given year, the refund shall not be made until on or after November 15 of the following year. The Tax Commissioner shall notify the affected city, village, county, or municipal county of the amount of refund claims of sales and use taxes under the Local Option Revenue Act, the Qualified Judgment Payment Act, or sections 13-319, 13-324, and 13-2813 that are in excess of twenty-five thousand dollars on or before July 1 of the year before the claims will be paid under this section.

(f) For refunds of sales and use taxes under the Local Option Revenue Act, the deductions made by the Tax Commissioner for such refunds shall be delayed in accordance with section 77-27,144.

(g) Interest shall not be allowed on any taxes refunded under the ImagiNE Nebraska Act.

(3) The appointment of purchasing agents shall be recognized for the purpose of changing the status of a contractor or repairperson as the ultimate consumer of tangible personal property purchased after the date of the appointment which is physically incorporated into or annexed at a qualified location and becomes the property of the owner of the improvement to real estate or the taxpayer. The purchasing agent shall be jointly liable for the payment of the sales and use tax on the purchases with the owner of the property.

(4) The determination of whether the application is complete, whether a location is a qualified location, and whether to approve the application and sign the agreement shall be made by the director. All other interpretations of the ImagiNE Nebraska Act shall be made by the Tax Commissioner. The Commissioner of Labor shall provide the director with such information as the Department of Labor regularly receives with respect to the taxpayer which the director requests from the Commissioner of Labor in order to fulfill the director's duties under the act. The director shall use such information to achieve efficiency in the administration of the act.

(5) Once the director and the taxpayer have signed the agreement under section 77-6828, the taxpayer, and its owners or members where applicable, may report and claim and shall receive all incentives allowed by the ImagiNE Nebraska Act, subject to the base authority limitations provided in section 77-6839, without waiting for a determination by the director or the Tax Commissioner or other taxing authority that the taxpayer has met the required employment and investment levels or otherwise qualifies, has qualified, or continues to qualify for such incentives, provided that the tax return or claim has been signed by an owner, member, manager, or officer of the taxpayer who declares under penalties of perjury that he or she has examined the tax return or claim, including accompanying schedules and statements, and to the best of his or her knowledge and belief (a) the tax return or claim is correct and complete in all material respects, (b) payment of the claim has not been previously made by the state to the taxpayer, and (c) with respect to sales or use tax refund claims, the taxpayer has not claimed or received a refund of such tax from a retailer. The payment or allowance of such a claim shall not prevent the director or the Tax Commissioner or other taxing authority from recovering such payment, exemption, or allowance, within the normal period provided by law, subject to normal appeal rights of a taxpayer, if the director or Tax Commissioner or other taxing authority determines upon review or audit that the taxpayer did not qualify for such incentive or exemption.

(6) An audit of employment and investment thresholds and incentive amounts shall be made by the Tax Commissioner to the extent and in the manner determined by the Tax Commissioner. Upon request by the director or the Tax Commissioner, the Commissioner of Labor shall report to the director and the Tax Commissioner the employment data regularly reported to the Department of Labor relating to number of employees and wages paid for each taxpayer. The director and Tax Commissioner, to the extent they determine appropriate, shall use such information to achieve efficiency in the administration of the ImagiNE Nebraska Act. The Tax Commissioner may recover any refund or part thereof which is erroneously made and any credit or part thereof which is erroneously allowed by issuing a deficiency determination within three years from the date of refund or credit or within the period otherwise allowed for issuing a deficiency determination, whichever expires later. The director shall not enter into an agreement with any taxpayer unless the taxpayer agrees to electronically verify the work eligibility status of all newly hired employees employed in Nebraska within ninety days after the date of hire. For purposes of calculating any tax incentive under the act, the hours worked and compensation paid to an employee who has not been electronically verified or who is not eligible to work in Nebraska shall be excluded.

(7) A determination by the director that a location is not a qualified location or a determination by the Tax Commissioner that a taxpayer has failed to meet or maintain the required levels of employment or investment for incentives, exemptions, or recapture, or does not otherwise qualify for incentives or exemptions, may be protested by the taxpayer to the Tax Commissioner within sixty days after the mailing to the taxpayer of the written notice of the proposed determination by the director or the Tax Commissioner, as applicable. If the notice of proposed determination is not protested in writing by the taxpayer within the sixty-day period, the proposed determination is a final determination. If the notice is protested, the Tax Commissioner, after a formal hearing by the Tax Commissioner or by an independent hearing officer appointed by the Tax Commissioner, if requested by the taxpayer in such protest, shall issue a written order resolving such protest. The written order of the Tax Commissioner resolving a protest may be appealed to the district court of Lancaster County in accordance with the Administrative Procedure Act within thirty days after the issuance of the order.

Source:Laws 2020, LB1107, § 32;    Laws 2022, LB1150, § 21.    


Cross References

77-6833. Incentives; recapture or disallowance; conditions; procedure.

(1) If the taxpayer fails to maintain employment and investment levels at or above the levels required in the agreement for the entire performance period, all or a portion of the incentives set forth in the ImagiNE Nebraska Act shall be recaptured or disallowed. For purposes of this section, the average compensation and health coverage requirements of subdivision (1)(c) of section 77-6831 shall be treated as a required level of employment for each year of the performance period.

(2) In the case of a taxpayer who has failed to maintain the required levels of employment or investment for the entire performance period, any reduction in the personal property tax, any refunds in tax or exemptions from tax allowed under section 77-6831, and any refunds or reduction in tax allowed because of the use of a credit allowed under section 77-6831 shall be partially recaptured from either the taxpayer, the owner of the improvement to real estate, or the qualified employee leasing company, and any carryovers of credits shall be partially disallowed. The amount of the recapture for each benefit shall be a percentage equal to the number of years the taxpayer did not maintain the required levels of investment or employment divided by the number of years of the performance period multiplied by the refunds, exemptions, or reductions in tax allowed, reduction in personal property tax, credits used, and the remaining carryovers. In addition, the last remaining year of personal property tax exemption shall be disallowed for each year the taxpayer did not maintain the qualified location or locations at or above the required levels of employment or investment.

(3) If the taxpayer receives any refund, exemption, or reduction in tax to which the taxpayer was not entitled or which was in excess of the amount to which the taxpayer was entitled, the refund, exemption, or reduction in tax shall be recaptured separate from any other recapture otherwise required by this section. Any amount recaptured under this subsection shall be excluded from the amounts subject to recapture under other subsections of this section.

(4) Any refunds, exemptions, or reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable. When tax benefits were received in more than one year, the tax benefits received in the most recent year shall be recovered first and then the benefits received in earlier years up to the extent of the required recapture.

(5)(a) Any personal property tax that would have been due except for the exemption allowed under the ImagiNE Nebraska Act, to the extent it becomes due under this section, shall be considered delinquent and shall be immediately due and payable to the county or counties in which the property was located when exempted.

(b) All amounts received by a county under this section shall be allocated to each taxing unit levying taxes on tangible personal property in the county in the same proportion that the levy on tangible personal property of such taxing unit bears to the total levy of all of such taxing units.

(6) Notwithstanding any other limitations contained in the laws of this state, collection of any taxes deemed to be underpayments by this section shall be allowed for a period of three years after the end of the performance period or three calendar years after the benefit was allowed, whichever is later.

(7) Any amounts due under this section shall be recaptured notwithstanding other allowable credits and shall not be subsequently refunded under any provision of the ImagiNE Nebraska Act unless the recapture was in error.

(8) The recapture required by this section shall not occur if the failure to maintain the required levels of employment or investment was caused by an act of God or a national emergency.

Source:Laws 2020, LB1107, § 33.    


77-6834. Incentives; transferable; when; effect.

(1) The incentives allowed under the ImagiNE Nebraska Act shall not be transferable except in the following situations:

(a) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, or an estate or trust may be distributed to the partners, members, shareholders, patrons, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities, and such partners, members, shareholders, or beneficiaries shall be deemed to have made an underpayment of their income taxes for any recapture required by section 77-6833. A credit distributed shall be considered a credit used and the partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, estate, or trust shall be liable for any repayment required by section 77-6833;

(b) The credit prescribed in subsection (4) of section 77-6831 may be transferred to a qualified employee leasing company from a taxpayer who is a client-lessee of the qualified employee leasing company with employees performing services at the qualified location or locations of the client-lessee. The credits transferred must be designated for a specific year and cannot be carried forward by the qualified employee leasing company. The credits may only be used by the qualified employee leasing company to offset the income tax withholding liability under section 77-2756 or 77-2757 for withholding for employees performing services for the client-lessee at the qualified location or locations. The offset to such withholding liability must be computed in accordance with subdivision (1)(b) of section 77-6832 based on wages paid to the employees by the qualified employee leasing company, and not the amount paid to the qualified employee leasing company by the client-lessee; and

(c) The incentives previously allowed and the future allowance of incentives may be transferred when an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended.

(2) The acquiring taxpayer, as of the date of notification to the director of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the ImagiNE Nebraska Act.

(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer for the repayment of any benefits received either before or after the transfer.

(4) If a taxpayer dies and there is a credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of the credit may be changed only after obtaining the permission of the director.

(5) The director may disclose information to the acquiring taxpayer about the agreement and prior benefits that is reasonably necessary to determine the future incentives and liabilities of the taxpayer.

Source:Laws 2020, LB1107, § 34.    


77-6835. Refunds; interest not allowable.

Interest shall not be allowable on any refunds paid because of benefits earned under the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 35.    


77-6836. Application; valid; when; director; Tax Commissioner; powers and duties.

(1) Any complete application shall be considered a valid application on the date submitted for the purposes of the ImagiNE Nebraska Act.

(2) The director shall be allowed access, by the Tax Commissioner, to information associated with the Nebraska Advantage Act, the Nebraska Advantage Rural Development Act, and the Employment and Investment Growth Act to meet the director's obligations under the ImagiNE Nebraska Act.

(3) The director may contract with the Tax Commissioner for services that the director determines are necessary to fulfill the director's responsibilities under the ImagiNE Nebraska Act, other than services which constitute the actual actions and decisions required to be taken or made by the director under the ImagiNE Nebraska Act.

(4) The Tax Commissioner shall develop and maintain an electronic application and reporting system to be used by the director and Tax Commissioner to administer the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 36.    


Cross References

77-6837. Reports; contents; joint hearing.

(1) Beginning in 2021, the director and the Tax Commissioner shall jointly submit electronically an annual report for the previous fiscal year to the Legislature no later than October 31 of each year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Economic Development and the Department of Revenue shall together, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(2) The report shall list (a) the agreements which have been signed during the previous year, (b) the agreements which are still in effect, (c) the identity of each taxpayer who is party to an agreement, and (d) the qualified location or locations.

(3) The report shall also state, for taxpayers who are parties to agreements, by industry group (a) the specific incentive options applied for under the ImagiNE Nebraska Act, (b) the refunds and reductions in tax allowed on the investment, (c) the credits earned, (d) the credits used to reduce the corporate income tax and the credits used to reduce the individual income tax, (e) the credits used to obtain sales and use tax refunds, (f) the credits used against withholding liability, (g) the credits used for job training, (h) the credits used for infrastructure development, (i) the number of jobs created under the act, (j) the expansion of capital investment, (k) the estimated wage levels of jobs created under the act subsequent to the application date, (l) the total number of qualified applicants, (m) the projected future state revenue gains and losses, (n) the sales tax refunds owed, (o) the credits outstanding under the act, (p) the value of personal property exempted by class in each county under the act, (q) the total amount of the payments, (r) the amount of workforce training and infrastructure development loans issued, outstanding, repaid, and delinquent, and (s) the value of health coverage provided to employees at qualified locations during the year who are not base-year employees and who are paid the required compensation. The report shall include the estimate of the amount of sales and use tax refunds to be paid and tax credits to be used as were required for the October forecast under section 77-6839.

(4) In estimating the projected future state revenue gains and losses, the report shall detail the methodology utilized, state the economic multipliers and industry multipliers used to determine the amount of economic growth and positive tax revenue, describe the analysis used to determine the percentage of new jobs attributable to the ImagiNE Nebraska Act, and identify limitations that are inherent in the analysis method.

(5) The report shall provide an explanation of the audit and review processes of the Department of Economic Development and the Department of Revenue, as applicable, in approving and rejecting applications or the grant of incentives and in enforcing incentive recapture. The report shall also specify the median period of time between the date of application and the date the agreement is executed for all agreements executed by June 30 of the current year.

(6) The report shall provide information on agreement-specific total incentives used every two years for each agreement. The report shall disclose (a) the identity of the taxpayer, (b) the qualified location or locations, and (c) the total credits used and refunds approved during the immediately preceding two years expressed as a single, aggregated total. The incentive information required to be reported under this subsection shall not be reported for the first year the taxpayer attains the required employment and investment thresholds. The information on first-year incentives used shall be combined with and reported as part of the second year. Thereafter, the information on incentives used for succeeding years shall be reported for each agreement every two years containing information on two years of credits used and refunds approved. The incentives used shall include incentives which have been approved by the director or Tax Commissioner, as applicable, but not necessarily received, during the previous two years.

(7) The report shall include an executive summary which shows aggregate information for all agreements for which the information on incentives used in subsection (6) of this section is reported as follows: (a) The total incentives used by all taxpayers for agreements detailed in subsection (6) of this section during the previous two years; (b) the number of agreements; (c) the new jobs at the qualified location or locations for which credits have been granted; (d) the average compensation paid to employees in the state in the year of application and for the new jobs at the qualified location or locations; and (e) the total investment for which incentives were granted. The executive summary shall summarize the number of states which grant investment tax credits, job tax credits, sales and use tax refunds for qualified investment, and personal property tax exemptions and the investment and employment requirements under which they may be granted.

(8) No information shall be provided in the report or in supplemental information that is protected by state or federal confidentiality laws.

Source:Laws 2020, LB1107, § 37;    Laws 2022, LB1150, § 22.    


77-6838. Rules and regulations.

Except as otherwise stated in the ImagiNE Nebraska Act, the director, with input from the Tax Commissioner, may adopt and promulgate all procedures and rules and regulations necessary to carry out the purposes of the ImagiNE Nebraska Act.

Source:Laws 2020, LB1107, § 38.    


77-6839. Tax incentives; estimates required; when; exceed base authority; limit on applications.

(1) The Department of Economic Development and the Department of Revenue shall jointly, on or before the fifteenth day of October and February of every year and the fifteenth day of April in odd-numbered years, make an estimate of the amount of sales and use tax refunds to be paid and tax credits to be used under the ImagiNE Nebraska Act during the fiscal years to be forecast under section 77-27,158. The estimate shall be based on the most recent data available, including pending and approved applications and updates thereof as are required by subdivision (1)(f) of section 77-6828. The estimate shall be forwarded to the Legislative Fiscal Analyst and the Nebraska Economic Forecasting Advisory Board and made a part of the advisory forecast required by section 77-27,158.

(2)(a) In addition to the estimates required under subsection (1) of this section, the Department of Economic Development shall, on or before the fifteenth day of October and February of every year, make an estimate of the amount of sales and use tax refunds to be paid and tax credits to be used under the ImagiNE Nebraska Act for each of the upcoming three calendar years and shall report such estimate to the Governor. The estimate shall be based on the most recent data available, including pending and approved applications and updates thereof as are required by subdivision (1)(f) of section 77-6828. If the estimate for any such calendar year exceeds the base authority:

(i) The Department of Economic Development shall prepare an analysis explaining why the estimate exceeds the base authority. The department shall include such analysis in the report it submits to the Governor under this subsection; and

(ii) The director shall not approve any additional applications under the ImagiNE Nebraska Act that would include refunds or credits in the calendar year in which the base authority is projected to be exceeded. Applications shall be considered in the order in which they are received. Any applications that are not approved because the base authority has been exceeded shall be placed on a wait list in the order in which they were received and shall be given first priority once applications may again be approved. Applications on the wait list retain the same application date and base year as if they had been approved within the time set forth in section 77-6827.

(b) For purposes of this section, base authority means the total amount of refunds and credits that may be approved in any calendar year. Notwithstanding any other provision of the ImagiNE Nebraska Act to the contrary, no refunds may be paid and no credits may be used in any calendar year in excess of the base authority for such calendar year. The base authority shall be equal to twenty-five million dollars for calendar years 2021 and 2022, one hundred million dollars for calendar years 2023 and 2024, and one hundred fifty million dollars for calendar year 2025. Beginning with calendar year 2026 and every three years thereafter, the director shall adjust the base authority to an amount equal to three percent of the actual General Fund net receipts for the most recent fiscal year for which such information is available. Any amount of base authority that is unused in a calendar year shall carry forward to the following calendar year and shall be added to the limit applicable to such following calendar year, except that in no case shall the base authority for any calendar year prior to 2026 exceed four hundred million dollars.

Source:Laws 2020, LB1107, § 39;    Laws 2022, LB1150, § 23.    


77-6840. Employment and wage data information; Department of Labor; duty.

The Department of Labor shall, as requested, provide to the director and the Tax Commissioner the employment and wage data information necessary to meet the responsibilities of the director and Tax Commissioner under the ImagiNE Nebraska Act, to the extent the Department of Labor collects such information.

Source:Laws 2020, LB1107, § 40.    


77-6841. Workforce training and infrastructure development; revolving loan program; legislative findings; Department of Economic Development; duties; ImagiNE Nebraska Revolving Loan Fund; created; use; investment.

(1) The Legislature finds that providing job training is critical to the public purpose of attracting and retaining businesses and that the growth of high-paying jobs in Nebraska is limited by an unmet need for workforce training and infrastructure development. The Legislature further finds that many communities in Nebraska lack the infrastructure, including broadband access, necessary to provide high-paying jobs for residents. The Legislature further finds that workforce training and infrastructure development help businesses and improve the quality of life for workers and communities in Nebraska. Because there is a statewide benefit from workforce training and infrastructure development, the Legislature intends to provide a revolving loan program as a rational means to address these needs.

(2) The Department of Economic Development shall establish and administer a revolving loan program for workforce training and infrastructure development expenses to be incurred by applicants for incentives under the ImagiNE Nebraska Act.

(3) The ImagiNE Nebraska Revolving Loan Fund is hereby created. The fund shall receive money from appropriations from the Legislature, grants, private contributions, repayment of loans, and all other sources. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. It is the intent of the Legislature to transfer five million dollars from the General Fund to the ImagiNE Nebraska Revolving Loan Fund for fiscal years 2022-23 and 2023-24 for purposes of carrying out the workforce training and infrastructure development revolving loan program pursuant to the ImagiNE Nebraska Act. It is the intent of the Legislature to appropriate five million dollars for fiscal years 2022-23 and 2023-24 for purposes of carrying out the workforce training and infrastructure development revolving loan program pursuant to the ImagiNE Nebraska Act.

(4) The Department of Economic Development, as part of its comprehensive business development strategy, shall administer the ImagiNE Nebraska Revolving Loan Fund and may loan funds to applicants under the ImagiNE Nebraska Act to secure new, high-paying jobs in Nebraska based on the criteria established in sections 77-6842 and 77-6843. Loans made to applicants under the ImagiNE Nebraska Act and interest on such loans may be repaid using credits earned under the ImagiNE Nebraska Act. If that occurs, the Department of Revenue shall certify the credit usage to the State Treasurer, who shall, within thirty days, transfer the amount of the credit used from the General Fund to the ImagiNE Nebraska Revolving Loan Fund.

(5) If a taxpayer with an agreement under the ImagiNE Nebraska Act obtains a loan under this section and fails to attain the required minimum number of new employees, minimum compensation, and minimum required cumulative investment necessary for that taxpayer to earn a credit, the principal and interest of the loan shall be considered an underpayment of tax and may be recovered by the Department of Revenue.

(6) Whether repaid using credits or repaid directly by the recipient of the loan, loans made from the ImagiNE Nebraska Revolving Loan Fund shall be repaid with interest at the rate established in section 45-102.

Source:Laws 2020, LB1107, § 41.    


Cross References

77-6842. Workforce training loan; application; partnering entities; loan approval; factors considered.

(1) A taxpayer with an application under the ImagiNE Nebraska Act may apply for a workforce training loan by submitting an application to the Department of Economic Development which includes, but is not limited to:

(a) The number of jobs to be created that will require training or the number of existing positions that will be trained;

(b) The nature of the business and the type of jobs to be created that will require training or positions to be trained;

(c) The estimated wage levels of the jobs to be created or positions to be trained; and

(d) A program schedule for the workforce training project.

(2) A taxpayer may partner with a postsecondary educational institution in Nebraska, a private, nonprofit educational organization in Nebraska holding a certificate of exemption under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, a Nebraska educational service unit, or a school district in Nebraska to assist in providing the workforce training. The application shall specify the role of the partnering entity in identifying and training potential job applicants for the applicant business.

(3) The director shall determine whether to approve the taxpayer's application for a workforce training loan under the ImagiNE Nebraska Act based upon the director's determination as to whether the loan will help enable the state to accomplish the purposes stated in section 77-6841. The director shall be governed by and shall take into consideration all of the following factors in making such determination:

(a) The department's comprehensive business development strategy;

(b) The necessity of the loan to assure that the applicant will expand employment in Nebraska;

(c) The number of jobs to be created; and

(d) The expected pay of the jobs to be created.

Source:Laws 2020, LB1107, § 42.    


77-6843. Infrastructure development loan; application; approval; factors considered.

(1) A taxpayer with an application under the ImagiNE Nebraska Act may apply for an infrastructure development loan by submitting an application to the Department of Economic Development which includes, but is not limited to:

(a) The nature of the business and the type and number of jobs to be created or retained;

(b) The estimated wage levels of the jobs to be created or retained; and

(c) A brief description of the infrastructure need that the loan is intended to fill.

(2) The director shall determine whether to approve the taxpayer's application for an infrastructure development loan under the ImagiNE Nebraska Act based upon the director's determination as to whether the loan will help enable the state to accomplish the purposes stated in section 77-6841. The director shall be governed by and shall take into consideration all of the following factors in making such determination:

(a) The department's comprehensive business development strategy;

(b) The necessity of the loan to assure that the applicant will expand employment in Nebraska;

(c) The number of jobs to be created; and

(d) The expected pay of the jobs to be created.

Source:Laws 2020, LB1107, § 43.    


77-6844. Nebraska-based covered entity under federal law; application; approval; conditions; director; issue agreement, when.

(1) It is the intent of the Legislature that an application made by a taxpayer that is a Nebraska-based covered entity as defined in 15 U.S.C. 4651 under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283, be approved upon receipt if:

(a) The taxpayer's application contains the items listed in subsection (2) of section 77-6827; and

(b) The taxpayer's application meets the federal eligibility requirements of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283.

(2) Not more than thirty days after receipt and approval of an application under subsection (1) of this section, the director shall issue to such taxpayer a written agreement conforming to the requirements of sections 77-6828, 77-6845, and 77-6846.

Source:Laws 2023, LB92, § 82.    
Operative Date: June 7, 2023


77-6845. Nebraska-based covered entity under federal law; agreement; contents; limitations.

(1) An agreement issued pursuant to section 77-6844 shall contain total incentives, refunds, and credits earned through the ImagiNE Nebraska Act sufficient to equal twenty-five percent of the taxpayer's investment in qualified property for the fabrication, assembly, testing, advanced packaging, or production of semiconductors or technologies with extensive microelectronic content. The director shall ensure that such agreement creates no additional obligation upon the General Fund.

(2) With respect to an application or agreement with a taxpayer that is a Nebraska-based covered entity as defined in 15 U.S.C. 4651 under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283:

(a) The provisions of section 77-6839 shall not apply, except that the annual credits and incentives redeemed by the taxpayer may be limited to one-fifteenth of the total credits and incentives eligible to be earned during a fifteen-year performance period, as defined by section 77-6816; and

(b) The taxpayer may not carryover earned but unused incentives past the performance period.

Source:Laws 2023, LB92, § 83.    
Operative Date: June 7, 2023


77-6846. Nebraska-based covered entity under federal law; incentives or credits; use.

A taxpayer that is also a Nebraska-based covered entity as described in 15 U.S.C. 4651 that qualifies under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283, may use earned incentives or credits under the ImagiNE Nebraska Act:

(1) To obtain a refund from the state equal to the amount that the taxpayer demonstrates to the director was paid by the taxpayer after the date of the complete application to repay the principal or interest on revenue bonds issued by an inland port authority pursuant to section 13-3308;

(2) To provide financial assistance to public and private sector initiatives that are intended to improve Nebraska's ability to attract microelectronic-based enterprises, especially those incentivized under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283, by making necessary investments in the semiconductor industry and technologies with extensive microelectronic content, including, but not limited to, grants for the establishment of private sector entities for such purposes within eligible economically disadvantaged areas in Nebraska, as set forth in section 9902(a)(2)(B) of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283;

(3) To provide financial assistance to a community college located in a city of the metropolitan class working in collaboration with private sector partners and any interested university, college, other community college, and technical school located in this state to support education expansion and curricula development in order to meet the needs of the domestic semiconductor workforce in Nebraska as set forth in section 9902(a)(2)(B) of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, Public Law 116-283; and

(4) For any other eligible use authorized pursuant to the ImagiNE Nebraska Act.

Source:Laws 2023, LB92, § 84.    
Operative Date: June 7, 2023


77-6901. Act, how cited.

Sections 77-6901 to 77-6928 shall be known and may be cited as the Urban Redevelopment Act.

Source:Laws 2021, LB544, § 1.    


77-6902. Definitions, where found.

For purposes of the Urban Redevelopment Act, the definitions found in sections 77-6903 to 77-6918 shall be used.

Source:Laws 2021, LB544, § 2.    


77-6903. Additional definitions.

Any term has the same meaning as used in the Nebraska Revenue Act of 1967.

Source:Laws 2021, LB544, § 3.    


77-6904. Base year, defined.

Base year means the year immediately preceding the year of application, except that if the year of application is 2021, the base year is either 2019 or 2020, whichever year the applicant had the larger number of equivalent employees at the qualified location.

Source:Laws 2021, LB544, § 4.    


77-6905. Base-year employee, defined.

Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the qualified location.

Source:Laws 2021, LB544, § 5.    


77-6906. Economic redevelopment area, defined.

Economic redevelopment area means an area in the State of Nebraska in which:

(1) The average rate of unemployment in the area during the period covered by the most recent federal decennial census or American Community Survey 5-Year Estimate by the United States Bureau of the Census is at least one hundred fifty percent of the average rate of unemployment in the state during the same period; and

(2) The average poverty rate in the area is twenty percent or more for the federal census tract in the area.

Source:Laws 2021, LB544, § 6.    


77-6907. Equivalent employees, defined.

Equivalent employees means the number of employees computed by dividing the total hours paid in a year to employees by the product of forty times the number of weeks in a year. Only the hours paid to employees who are residents of this state shall be included in such computation. A salaried employee who receives a predetermined amount of compensation each pay period on a weekly or less frequent basis is deemed to have been paid for forty hours per week during the pay period.

Source:Laws 2021, LB544, § 7.    


77-6908. Investment, defined.

Investment means the value of qualified property incorporated into or used at the qualified location. For qualified property owned by the taxpayer, the value shall be the original cost of the property. For qualified property rented by the taxpayer, the average net annual rent shall be multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation. For purposes of this section, original cost means the amount required to be capitalized for depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended. Any amount, including the labor of the taxpayer, that is capitalized as a part of the cost of the qualified property or that is written off under section 179 of the Internal Revenue Code of 1986, as amended, shall be considered part of the original cost.

Source:Laws 2021, LB544, § 8.    


77-6909. Nebraska statewide average hourly wage for any year, defined.

Nebraska statewide average hourly wage for any year means the most recent statewide average hourly wage paid by all employers in all counties in Nebraska as calculated by the Office of Labor Market Information of the Department of Labor using annual data from the Quarterly Census of Employment and Wages by October 1 of the year prior to application. Hourly wages shall be calculated by dividing the reported average annual weekly wage by forty.

Source:Laws 2021, LB544, § 9.    


77-6910. Number of new employees, defined.

Number of new employees means the number of equivalent employees that are employed at the qualified location during a year that are in excess of the number of base-year employees.

Source:Laws 2021, LB544, § 10.    


77-6911. Performance period, defined.

Performance period means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the third year after the year the required increases were met or exceeded.

Source:Laws 2021, LB544, § 11.    


77-6912. Qualified location, defined.

Qualified location means any location in a city of the metropolitan class or a city of the primary class that is used or will be used by the taxpayer to conduct business activities and that is located within an economic redevelopment area. More than one qualified location may be part of the same agreement.

Source:Laws 2021, LB544, § 12;    Laws 2022, LB1261, § 17.    


77-6913. Qualified property, defined.

Qualified property means any tangible property of a type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property, that will be located and used at the qualified location. Qualified property does not include (1) aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or (2) property that is rented by the taxpayer qualifying under the Urban Redevelopment Act to another person.

Source:Laws 2021, LB544, § 13.    


77-6914. Ramp-up period, defined.

Ramp-up period means two years from the date the complete application was filed with the Director of Economic Development.

Source:Laws 2021, LB544, § 14.    


77-6915. Related taxpayers, defined.

Related taxpayers shall include any corporations that are part of a unitary business under the Nebraska Revenue Act of 1967 but are not part of the same corporate taxpayer, any business entities that are not corporations but which would be a part of the unitary business if they were corporations, and any business entities if at least fifty percent of such entities are owned by the same persons or related taxpayers and family members as defined in the ownership attribution rules of the Internal Revenue Code of 1986, as amended.

Source:Laws 2021, LB544, § 15.    


Cross References

77-6916. Taxpayer, defined.

Taxpayer means any person subject to sales and use taxes under the Nebraska Revenue Act of 1967 and subject to withholding under section 77-2753 and any entity that is or would otherwise be a member of the same unitary group, if incorporated, that is subject to such sales and use taxes and such withholding. Taxpayer does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended. For purposes of this section, political subdivision includes any public corporation created for the benefit of a political subdivision and any group of political subdivisions forming a joint public agency, organized by interlocal agreement, or utilizing any other method of joint action.

Source:Laws 2021, LB544, § 16.    


Cross References

77-6917. Wages, defined.

Wages means the wages and other payments subject to the federal medicare tax.

Source:Laws 2021, LB544, § 17.    


77-6918. Year, defined.

Year means the taxable year of the taxpayer.

Source:Laws 2021, LB544, § 18.    


77-6919. Incentives; application; contents; fee; approval; conditions; agreement; confidentiality; limitation on new applications.

(1) To earn the incentives set forth in the Urban Redevelopment Act, the taxpayer shall file an application for an agreement with the Director of Economic Development.

(2) The application shall:

(a) Identify the taxpayer applying for incentives;

(b) Identify the location or locations where the new investment and employment will occur, including documentation to show that each such location is a qualified location;

(c) State the estimated, projected amount of new investment and the estimated, projected number of new equivalent employees; and

(d) Include an application fee of five hundred dollars. The fee shall be remitted to the State Treasurer for credit to the Nebraska Incentives Fund.

(3) Subject to the limit in subsection (4) of this section, the director shall approve the application and authorize the total amount of incentives expected to be earned if he or she is satisfied that the qualified location or locations meet the requirements established in section 77-6920 and such requirements will be reached within the required time period.

(4) The director shall not approve further applications once the expected incentives from the approved projects total eight million dollars. All but one hundred dollars of the application fee shall be refunded to the applicant if the application is not approved for any reason.

(5) Applications for incentives shall be considered in the order in which they are received.

(6) The director has ninety days to approve a complete application.

(7) After approval, the taxpayer and the director shall enter into a written agreement. As part of such agreement, the taxpayer shall agree to increase the levels of employment and investment required by the act and the director, on behalf of the State of Nebraska, shall, in consideration of the taxpayer's agreement, agree to allow the taxpayer to use the incentives contained in the Urban Redevelopment Act up to the total amount that were authorized by the director at the time of approval. The application and all supporting documentation, to the extent approved, shall be considered a part of the agreement. The agreement shall state:

(a) The levels of employment and investment required by the act for the project;

(b) The time period under the act in which the required levels must be met;

(c) The documentation the taxpayer will need to supply when claiming an incentive under the act;

(d) The date the application was filed; and

(e) The maximum amount of incentives authorized.

(8) The application, the agreement, all supporting information, and all other information reported to the Director of Economic Development shall be kept confidential by the director, except for the name of the taxpayer, the location of the project, the estimated amounts of increased employment and investment stated in the application, the date of the complete application, the date the agreement was signed, and the information required to be reported by section 77-6928. The application, the agreement, and all supporting information shall be provided by the director to the Department of Revenue. The director shall disclose, to any municipalities in which project locations exist, the approval of an application and the execution of an agreement under this section. The Tax Commissioner shall also notify each municipality of the amount and taxpayer identity for each refund of local option sales and use taxes of the municipality within thirty days after the refund is allowed or approved. Disclosures shall be kept confidential by the municipality unless publicly disclosed previously by the taxpayer or by the State of Nebraska.

(9) There shall be no new applications for incentives filed under this section after December 31, 2031.

Source:Laws 2021, LB544, § 19;    Laws 2022, LB1261, § 18.    


77-6920. Tax credits; conditions; amounts; teleworker; treatment.

(1) A tax credit shall be allowed to any taxpayer who has an approved application pursuant to the Urban Redevelopment Act if the taxpayer:

(a) Attains a cumulative investment in qualified property of at least one hundred fifty thousand dollars and hires at least five new employees at the qualified location or locations before the end of the ramp-up period; and

(b) Pays a minimum qualifying wage of seventy percent of the Nebraska statewide average hourly wage to the new equivalent employees for whom tax incentives are sought under the Urban Redevelopment Act.

(2) A tax credit shall be allowed to any taxpayer who has an approved application pursuant to the Urban Redevelopment Act if the taxpayer attains a cumulative investment in qualified property of at least fifty thousand dollars at the qualified location or locations before the end of the ramp-up period.

(3) Subject to subsection (5) of this section, the amount of the credit allowed under subsection (1) of this section shall be:

(a) Three thousand dollars for each new equivalent employee, except that such amount shall be increased by one thousand dollars for each equivalent employee who lives in an economic redevelopment area; and

(b) Two thousand seven hundred fifty dollars for each fifty thousand dollars of increased investment.

(4) Subject to subsection (5) of this section, the amount of the credit allowed under subsection (2) of this section shall be five percent of the investment.

(5) A taxpayer may qualify for a credit under either subsection (1) or (2) of this section, but cannot qualify for a credit under both such subsections. The credit shall not exceed fifty thousand dollars. The taxpayer shall receive such credit for each year of the performance period that the taxpayer is at or above the required levels of employment and cumulative investment.

(6) A taxpayer shall not qualify for any credits under the Urban Redevelopment Act if the taxpayer is receiving any benefits under any other tax incentive program offered by the State of Nebraska.

(7) A teleworker working from his or her residence shall not be considered an equivalent employee of the taxpayer for purposes of the Urban Redevelopment Act unless the teleworker's residence is located in the economic redevelopment area in which the taxpayer's qualified location is located.

Source:Laws 2021, LB544, § 20;    Laws 2022, LB1261, § 19.    


77-6921. Existing business acquisition, disposal, reorganization, or relocation; computation; certain transactions excluded.

(1)(a) If the taxpayer acquires an existing business, the increases in investment and employment shall be computed as though the taxpayer had owned the business for the entire taxable year preceding the date of application.

(b) If the taxpayer disposes of an existing business and the new owner maintains the minimum increases in investment and employment required to create incentives, the taxpayer shall not be required to make any repayment under section 77-6923 solely because of the disposition of the business.

(2) If the structure of a business is reorganized, the taxpayer shall compute the increases on a consistent basis for all periods.

(3) If the taxpayer moves a business from one qualified location to another qualified location and the business was operated in a qualified location during the taxable year preceding the date of application, the increases in investment and employment shall be computed as though the taxpayer had operated the business at the new location for the entire taxable year preceding the date of application.

(4) If the taxpayer enters into any of the following transactions, the transaction shall be presumed to be a transaction entered into for the purpose of generating benefits under the Urban Redevelopment Act and shall not be allowed in the computation of any benefit or the meeting of any required levels under the agreement except as specifically provided in this subsection:

(a) The purchase or lease of any property that was previously owned by the taxpayer who filed the application or a related taxpayer unless the first purchase by either the taxpayer who filed the application or a related taxpayer was first placed in service at a qualified location after the beginning of the taxable year the application was filed;

(b) The renegotiation of any lease in existence during the taxable year the application was filed which does not materially change any of the terms of the lease other than the expiration date;

(c) The purchase or lease of any property from a related taxpayer, except that the taxpayer who filed the application will be allowed any benefits under the act to which the related taxpayer would have been entitled on the purchase or lease of the property if the related taxpayer was considered the taxpayer; and

(d) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in the state.

Source:Laws 2021, LB544, § 21.    


77-6922. Tax credits; use.

(1) The credits allowed under section 77-6920 may be used:

(a) To obtain a refund of sales and use taxes paid under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, the Qualified Judgment Payment Act, and sections 13-319, 13-324, and 13-2813;

(b) As a refundable income tax credit claimed on an income tax return of the taxpayer. The return need not reflect any income tax liability owed by the taxpayer;

(c) To reduce the taxpayer's income tax withholding employer or payor tax liability under section 77-2756 or 77-2757. To the extent of the credit used, such withholding shall not constitute public funds or state tax revenue and shall not constitute a trust fund or be owned by the state. The use by the taxpayer of the credit shall not change the amount that otherwise would be reported by the taxpayer to the employee under section 77-2754 as income tax withheld and shall not reduce the amount that otherwise would be allowed by the state as a refundable credit on an employee's income tax return as income tax withheld under section 77-2755. The amount of credits used against income tax withholding shall not exceed the withholding attributable to the number of new equivalent employees employed by the taxpayer. If the amount of credit used by the taxpayer against income tax withholding exceeds such amount, the excess withholding shall be returned to the Department of Revenue in the manner provided in section 77-2756, such excess amount returned shall be considered unused, and the amount of unused credits may be used as otherwise permitted in this section; and

(d) To obtain a payment from the state equal to the real property taxes due after the year the required levels of employment and investment were met, for real property at a qualified location that is acquired by the taxpayer after the date the application was filed. The payment from the state shall be made only after payment of the real property taxes have been made to the county as required by law. Payments shall not be allowed for any taxes paid on real property for which the taxes are divided under section 18-2147 or 58-507.

(2) A claim for the credit may be filed quarterly for refund of the sales and use taxes paid, either directly or indirectly, after the filing of the income tax return for the taxable year in which the credit was first allowed.

(3) Once the taxpayer attains the required levels of employment and investment, the taxpayer shall be entitled to a refund of all sales and use taxes paid, either directly or indirectly, under the Local Option Revenue Act, the Nebraska Revenue Act of 1967, the Qualified Judgment Payment Act, and sections 13-319, 13-324, and 13-2813 on the qualifying investment.

(4) For purposes of subsections (2) and (3) of this section, the taxpayer shall be deemed to have paid indirectly any sales or use taxes paid by a contractor with a purchasing agent agreement on building materials annexed to an improvement to real estate built for the taxpayer. The contractor shall certify to the taxpayer the amount of the sales and use taxes paid on the building materials, or the taxpayer, with the permission of the Director of Economic Development and a certification from the contractor that sales and use taxes were paid on all building materials, may presume that fifty percent of the cost of the improvement was for building materials annexed to real estate on which the tax was paid.

(5) Credits distributed to a partner, limited liability company member, shareholder, or beneficiary under section 77-6925 may be used against the income tax liability of the partner, member, shareholder, or beneficiary receiving the credits.

Source:Laws 2021, LB544, § 22.    


Cross References

77-6923. Tax credits; recapture; amount; deadline.

(1) If the taxpayer fails to maintain employment and investment levels at or above the levels required in the agreement for the entire performance period, any refunds or reduction in tax allowed under the Urban Redevelopment Act shall be partially recaptured from the taxpayer. The amount of the recapture for each incentive shall be a percentage equal to the number of years the taxpayer did not maintain the required levels of investment or employment divided by the number of years of the performance period, with such percentage then multiplied by the refunds or reductions in tax allowed.

(2) Any refund or reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable. When tax incentives were received in more than one year, the incentives received in the most recent year shall be recovered first and then the incentives received in earlier years up to the extent of the required recapture.

(3) Notwithstanding any other limitations contained in the laws of this state, collection of any taxes deemed to be underpayments by this section shall be allowed for a period of three years after the end of the performance period or three calendar years after the incentive was allowed, whichever is later.

(4) The recapture required by this section shall not occur if the failure to maintain the required levels of employment or investment was caused by an act of God or a national emergency.

Source:Laws 2021, LB544, § 23.    


77-6924. Employees; verification of status required; exclusions.

(1) The Director of Economic Development shall not approve or grant to any person any tax incentive under the Urban Redevelopment Act unless the taxpayer provides evidence satisfactory to the director that the taxpayer electronically verified the work eligibility status of all newly hired employees employed in Nebraska.

(2) For purposes of calculating any tax incentive available under the act, the director shall exclude hours worked and compensation paid to an employee that is not eligible to work in Nebraska as verified under subsection (1) of this section.

Source:Laws 2021, LB544, § 24.    


77-6925. Incentives; transfer; when.

The incentives allowed under the Urban Redevelopment Act shall not be transferable except in the following situations:

(1) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, or an estate or trust may be distributed to the partners, limited liability company members, shareholders, patrons, limited cooperative association members, or beneficiaries. Any credit distributed shall be distributed in the same manner as income is distributed. A credit distributed shall be considered a credit used and the partnership, limited liability company, subchapter S corporation, cooperative, limited cooperative association, estate, or trust shall be liable for any repayment under section 77-6923;

(2) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended. The acquiring taxpayer, as of the date of notification of the Director of Economic Development of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the act. The acquiring taxpayer shall be liable for any repayment that becomes due after the date of the transfer with respect to any benefits received either before or after the transfer; and

(3) If a taxpayer allowed a credit under section 77-6920 dies and there is credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit with the initial fiduciary return filed for the estate. The determination of the distribution of the credit may be changed only after obtaining the permission of the director.

Source:Laws 2021, LB544, § 25.    


77-6926. Refunds; interest not allowable.

Interest shall not be allowable on any refunds paid because of benefits earned under the Urban Redevelopment Act.

Source:Laws 2021, LB544, § 26.    


77-6927. Base-year employment levels; review and certification; effect.

(1) The taxpayer may request the Tax Commissioner to review and certify the taxpayer's base-year employment levels. Upon a request for such review, the Tax Commissioner shall be given access to the employment and business records of the taxpayer and must complete the review within ninety days after the request. If the Tax Commissioner requests, by mail or by electronic means, additional information or clarification from the taxpayer in order to make his or her determination, the ninety-day period shall be tolled from the time the Tax Commissioner makes the request to the time he or she receives the requested information or clarification from the taxpayer. The taxpayer and the Tax Commissioner may also agree to extend the ninety-day period. If the Tax Commissioner fails to make his or her determination within the prescribed ninety-day period, the certification is deemed approved.

(2) Upon review, the Tax Commissioner may approve or amend the taxpayer's base-year employment levels based upon the employment and business records provided by the taxpayer. Once the Tax Commissioner certifies the employment levels, the certification is binding on the Department of Revenue when the taxpayer claims benefits on a return to the extent the information provided by the taxpayer was accurate and to the extent such information is not affected by any of the situations described in section 77-6921.

(3) If the taxpayer does not request review and certification of employment levels under this section, such levels are subject to later audit by the Department of Revenue.

Source:Laws 2021, LB544, § 27.    


77-6928. Reports.

(1) On or before July 15, 2024, and on or before July 15 of each year thereafter, the Director of Economic Development shall prepare a report that includes:

(a) The total amount of investment at qualified locations in the previous calendar year by taxpayers who are receiving incentives pursuant to the Urban Redevelopment Act;

(b) The total number of equivalent employees added in the previous calendar year by taxpayers who are receiving incentives pursuant to the act; and

(c) The total amount of credits claimed and refunds approved in the previous calendar year under the act.

(2) The report shall also provide information on project-specific total incentives used every two years for each approved project, including (a) the identity of the taxpayer, (b) the qualified location of the project, and (c) the total credits used and refunds approved during the immediately preceding two years expressed as a single, aggregated total. The incentive information required to be reported under this subsection shall not be reported for the first year the taxpayer attains the required employment and investment thresholds. The information on first-year incentives used shall be combined with and reported as part of the second year. Thereafter, the information on incentives used for succeeding years shall be reported for each project every two years and shall include information on two years of credits used and refunds approved. The incentives used shall include incentives that have been approved by the Director of Economic Development, but not necessarily received, during the previous two calendar years.

(3) On or before September 1, 2024, and on or before September 1 of each year thereafter, the Department of Economic Development shall present the report electronically to the Appropriations Committee of the Legislature. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.

(4) No information shall be provided in the report that is protected by state or federal confidentiality laws.

Source:Laws 2021, LB544, § 28.    


77-7001. Act, how cited.

Sections 77-7001 to 77-7008 shall be known and may be cited as the Nebraska Higher Blend Tax Credit Act.

Source:Laws 2022, LB1261, § 1.    


77-7002. Terms, defined.

For purposes of the Nebraska Higher Blend Tax Credit Act:

(1) Department means the Department of Revenue;

(2) E-15 means ethanol blended gasoline formulated with a percentage of more than ten percent but no more than fifteen percent by volume of ethanol;

(3) E-25 means ethanol blended gasoline formulated with a percentage of twenty-five percent by volume of ethanol;

(4) E-30 means ethanol blended gasoline formulated with a percentage of thirty percent by volume of ethanol;

(5) E-85 means ethanol blended gasoline formulated with a percentage of fifty-one percent to eighty-three percent by volume of ethanol;

(6) Motor fuel pump means a meter or similar commercial weighing and measuring device used to measure and dispense motor fuel originating from a motor fuel storage tank;

(7) Retail dealer means a person engaged in the business of storing and dispensing motor fuel from a motor fuel pump for sale on a retail basis;

(8) Retail motor fuel site means a geographic location in this state where a retail dealer sells and dispenses motor fuel from a motor fuel pump on a retail basis; and

(9) Taxpayer means any natural person or any limited liability company, partnership, private domestic or private foreign corporation, or domestic or foreign nonprofit corporation certified pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

Source:Laws 2022, LB1261, § 2;    Laws 2023, LB562, § 20.    
Effective Date: September 2, 2023


77-7003. Tax credit; eligibility; amount; use; application.

(1) Any taxpayer who is a retail dealer and who sold and dispensed E-15 or higher blend on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site shall be eligible to receive tax credits under the Nebraska Higher Blend Tax Credit Act.

(2)(a) Through calendar year 2023, the tax credit shall be in an amount equal to (i) five cents multiplied by the total number of gallons of E-15 sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site and (ii) eight cents multiplied by the total number of gallons of E-25 or higher blend sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(b) For calendar year 2024, the tax credit shall be in an amount equal to eight cents multiplied by the total number of gallons of E-15 or higher blend sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(c) For calendar year 2025, the tax credit shall be in an amount equal to nine cents multiplied by the total number of gallons of E-15 or higher blend sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(d) For calendar year 2026, the tax credit shall be in an amount equal to eight cents multiplied by the total number of gallons of E-15 or higher blend sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(e) For calendar year 2027, the tax credit shall be in an amount equal to seven cents multiplied by the total number of gallons of E-15 or higher blend sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(f) For calendar year 2028, the tax credit shall be in an amount equal to five cents multiplied by the total number of gallons of E-15 or higher blend sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(3) The tax credit shall be a refundable credit that may be used against any income tax imposed by the Nebraska Revenue Act of 1967 or any tax imposed pursuant to sections 77-907 to 77-918 or 77-3801 to 77-3807.

(4) Tax credits allowed under this section may be claimed for taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended.

(5) To receive tax credits, a taxpayer shall submit an application to the department on a form prescribed by the department. The application shall include the following information:

(a) The name and address of the taxpayer;

(b) The total number of gallons of E-15 sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site;

(c) The total number of gallons of E-25 sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site;

(d) The total number of gallons of E-30 sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site;

(e) The total number of gallons of E-85 sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site; and

(f) Any other documentation required by the department.

Source:Laws 2022, LB1261, § 3;    Laws 2023, LB562, § 21.    
Effective Date: September 2, 2023


Cross References

77-7004. Tax credit; application; approval; limitation; department; duties.

(1) If the department determines that an application is complete and that the taxpayer qualifies for tax credits, the department shall approve the application within the limits set forth in this section and shall certify the amount of tax credits approved to the taxpayer.

(2) The department shall consider applications in the order in which they are received and may approve tax credits until the annual limit for the calendar year has been reached. For calendar year 2022, the annual limit on tax credits shall be two million dollars. For calendar year 2023, the annual limit on tax credits shall be calculated by taking the annual limit from the prior calendar year and then multiplying such amount by (a) two hundred percent if the amount of tax credits approved in the prior calendar year exceeded ninety percent of the annual limit applicable to that calendar year or (b) one hundred percent if the amount of tax credits approved in the prior calendar year did not exceed ninety percent of the annual limit applicable to that calendar year. For calendar years 2024 through 2028, the annual limit on tax credits shall be five million dollars.

Source:Laws 2022, LB1261, § 4;    Laws 2023, LB562, § 22.    
Effective Date: September 2, 2023


77-7005. Tax credit; how claimed; excess; how treated.

(1) A taxpayer shall claim the tax credit by attaching the tax credit certification received from the department under section 77-7004 to the taxpayer's tax return.

(2) Any credit in excess of the taxpayer's tax liability shall be refunded to the taxpayer. In lieu of claiming a refund, the taxpayer may elect to have the excess carried forward to subsequent taxable years. A taxpayer may carry forward the excess tax credits until fully utilized.

Source:Laws 2022, LB1261, § 5.    


77-7006. Tax credit; distribution.

Any tax credit allowable to a partnership, a limited liability company, a subchapter S corporation, or an estate or trust may be distributed to the partners, limited liability company members, shareholders, or beneficiaries in the same manner as income is distributed.

Source:Laws 2022, LB1261, § 6.    


77-7007. Limitation on new applications.

There shall be no new applications filed under the Nebraska Higher Blend Tax Credit Act after December 31, 2028. All applications and all tax credits pending or approved before such date shall continue in full force and effect.

Source:Laws 2022, LB1261, § 7;    Laws 2023, LB562, § 23.    
Effective Date: September 2, 2023


77-7008. Rules and regulations.

The department may adopt and promulgate rules and regulations to carry out the Nebraska Higher Blend Tax Credit Act.

Source:Laws 2022, LB1261, § 8.    


77-7009. Nebraska Biodiesel Tax Credit Act, how cited.

Sections 77-7009 to 77-7016 shall be known and may be cited as the Nebraska Biodiesel Tax Credit Act.

Source:Laws 2023, LB727, § 1.    
Operative Date: September 2, 2023


77-7010. Terms, defined.

For purposes of the Nebraska Biodiesel Tax Credit Act:

(1) Biodiesel means mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats which conform to American Society for Testing and Materials D6751 specifications for use in diesel engines. Biodiesel refers to the pure fuel with less than one percent blended with diesel fuel;

(2) Department means the Department of Revenue;

(3) Motor fuel pump means a meter or similar commercial weighing and measuring device used to measure and dispense motor fuel originating from a motor fuel storage tank;

(4) Retail dealer means a person engaged in the business of storing and dispensing motor fuel from a motor fuel pump for sale on a retail basis;

(5) Retail motor fuel site means a geographic location in this state where a retail dealer sells and dispenses motor fuel from a motor fuel pump on a retail basis, including a permanent or mobile location; and

(6) Taxpayer means any natural person or any limited liability company, partnership, private domestic or private foreign corporation, or domestic or foreign nonprofit corporation certified pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

Source:Laws 2023, LB727, § 2.    
Operative Date: September 2, 2023


77-7011. Tax credit; eligibility; amount; use; application.

(1) Any taxpayer who is a retail dealer and who sold and dispensed biodiesel on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site shall be eligible to receive tax credits under the Nebraska Biodiesel Tax Credit Act.

(2) The tax credit shall be in an amount equal to fourteen cents multiplied by the total number of gallons of biodiesel sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site.

(3) The tax credit shall be a refundable credit that may be used against the income tax imposed by the Nebraska Revenue Act of 1967.

(4) Tax credits allowed under this section may be claimed for taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended.

(5) To receive tax credits, a taxpayer shall submit an application to the department on a form prescribed by the department. Applications may be submitted from January 1 to April 15 of each calendar year beginning in 2024. The application shall include the following information:

(a) The name and address of the taxpayer;

(b) The total number of gallons of biodiesel sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site; and

(c) Any other documentation required by the department.

Source:Laws 2023, LB727, § 3.    
Operative Date: September 2, 2023


Cross References

77-7012. Tax credit; application; approval; limitation; department; duties.

(1) If the department determines that an application is complete and that the taxpayer qualifies for tax credits, the department shall approve the application within the limits set forth in this section and shall certify the amount of tax credits approved to the taxpayer.

(2) The department may approve up to one million dollars in tax credits in any calendar year. If the total amount of tax credits requested in any calendar year exceeds such limit, the department shall allocate the tax credits proportionally based upon amounts requested.

Source:Laws 2023, LB727, § 4.    
Operative Date: September 2, 2023


77-7013. Tax credit; how claimed; excess; how treated.

(1) A taxpayer shall claim the tax credit by attaching the tax credit certification received from the department under section 77-7012 to the taxpayer's tax return.

(2) Any credit in excess of the taxpayer's tax liability shall be refunded to the taxpayer. In lieu of claiming a refund, the taxpayer may elect to have the excess carried forward to subsequent taxable years. A taxpayer may carry forward the excess tax credits until fully utilized.

Source:Laws 2023, LB727, § 5.    
Operative Date: September 2, 2023


77-7014. Tax credit; distribution.

Any tax credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative corporation, or an estate or trust may be distributed to the partners, limited liability company members, shareholders, cooperative members, or beneficiaries in the same manner as income is distributed.

Source:Laws 2023, LB727, § 6.    
Operative Date: September 2, 2023


77-7015. Limitation on new applications.

There shall be no new applications filed under the Nebraska Biodiesel Tax Credit Act after December 31, 2028. All applications and all tax credits pending or approved before such date shall continue in full force and effect.

Source:Laws 2023, LB727, § 7.    
Operative Date: September 2, 2023


77-7016. Rules and regulations.

The department may adopt and promulgate rules and regulations to carry out the Nebraska Biodiesel Tax Credit Act.

Source:Laws 2023, LB727, § 8.    
Operative Date: September 2, 2023


77-7101. Act, how cited.

Sections 77-7101 to 77-7113 shall be known and may be cited as the Opportunity Scholarships Act.

Source:Laws 2023, LB753, § 1.    
Operative Date: January 1, 2024


77-7102. Legislative findings.

The Legislature finds that:

(1) Enabling the greatest number of parents and legal guardians to choose among quality educational opportunities for children will improve the quality of education available to all children;

(2) Privately operated elementary and secondary schools in Nebraska satisfy the state's requirements for legal operation and provide quality educational opportunities for children;

(3) Parents and legal guardians of limited means are less able to choose among quality educational opportunities for their children;

(4) Making it possible for more parents and legal guardians to be able to choose privately operated schools benefits Nebraska parents and taxpayers; and

(5) It is in the best interests of the State of Nebraska and its citizens to encourage individuals and businesses to support organizations that financially assist parents and legal guardians who want to enroll their children in privately operated elementary and secondary schools, and such encouragement can be accomplished through the use of tax credits.

Source:Laws 2023, LB753, § 2.    
Operative Date: January 1, 2024


77-7103. Terms, defined.

For purposes of the Opportunity Scholarships Act:

(1) Department means the Department of Revenue;

(2) Education scholarship means a financial grant-in-aid to be used to pay all or part of the tuition and fees for attending a qualified school and includes any tuition grants;

(3) Eligible student means a resident of Nebraska who:

(a) Is receiving an education scholarship for the first time and is (i) entering kindergarten or ninth grade in a qualified school or (ii) transferring from a public school at which the student was enrolled for at least one semester immediately preceding the first semester for which the student receives an education scholarship to a qualified school and is entering any of grades kindergarten through twelve;

(b) Has previously received an education scholarship and is continuing education at a qualified school until such student graduates from high school or reaches twenty-one years of age, whichever comes first; or

(c) Is the sibling of a student who is receiving an education scholarship and resides in the same household as such student;

(4) Qualified school means any nongovernmental, privately operated elementary or secondary school located in this state that (a) is operated not for profit, (b) complies with the antidiscrimination provisions of 42 U.S.C. 1981 as such section existed on January 1, 2023, (c) complies with all health and life safety laws or codes that apply to privately operated schools, and (d) fulfills the applicable accreditation or approval requirements established by the State Board of Education pursuant to section 79-318;

(5) Scholarship-granting organization means a charitable organization in this state that is (a) exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and (b) certified pursuant to section 77-7104 to provide tax-credit-supported education scholarships to eligible students to assist them in attending qualified schools; and

(6) Tuition means any amount charged by a qualified school for enrollment in its instructional program. Tuition shall not exceed the full cost of educating an eligible student at such qualified school.

Source:Laws 2023, LB753, § 3.    
Operative Date: January 1, 2024


77-7104. Scholarship-granting organization; certification; application; procedure.

(1) An organization may apply to the department to become certified as a scholarship-granting organization under the Opportunity Scholarships Act. An organization shall obtain such certification prior to providing any education scholarships to eligible students under the act. The applicant shall provide the department with sufficient information to show:

(a) That the applicant is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended;

(b) That the applicant will offer one or more education scholarship programs for eligible students;

(c) That the applicant will be able to comply with the requirements of section 77-7110;

(d) That the applicant will provide education scholarships for eligible students without limiting education scholarship availability to only one qualified school;

(e) That the applicant will:

(i) Give first priority to:

(A) Eligible students who received an education scholarship from a scholarship-granting organization during the previous school year; and

(B) The sibling of a student who is receiving an education scholarship, so long as the sibling resides in the same household as such student;

(ii) Give second priority to:

(A) Eligible students whose household income levels do not exceed one hundred percent of the federal poverty level;

(B) Eligible students whose application for the enrollment option program established in section 79-234 has been denied;

(C) Eligible students who have an individualized education plan;

(D) Eligible students who are experiencing bullying, harassment, hazing, assault, battery, kidnapping, robbery, sexual offenses, threat or intimidation, or fighting at school;

(E) Eligible students who are in foster care; and

(F) Eligible students who are in a family with a parent or guardian actively serving in a branch of the armed forces of the United States or in the National Guard, or whose parent or guardian was killed serving in the line of duty;

(iii) Give third priority to eligible students whose household income levels exceed one hundred percent of the federal poverty level but do not exceed one hundred eighty-five percent of the federal poverty level;

(iv) Give fourth priority to eligible students whose household income levels exceed one hundred eighty-five percent of the federal poverty level but do not exceed two hundred thirteen percent of the federal poverty level; and

(v) Give fifth priority to eligible students whose household income levels exceed two hundred thirteen percent of the federal poverty level but do not exceed three hundred percent of the income indicated in the income eligibility guidelines for reduced price meals under the National School Lunch Program in 7 C.F.R. part 210;

(f) That the applicant will limit the maximum scholarship amount awarded to any student to the cost of tuition and fees at the qualified school such student attends; and

(g) That the applicant will limit scholarship amounts awarded to students in a manner that assures that the average of the scholarship amounts awarded per student does not exceed seventy-five percent of the statewide average general fund operating expenditures per formula student for the most recently available complete data year as such terms are defined in section 79-1003.

(2) If the applicant meets the requirements of this section, the department shall certify it as a scholarship-granting organization for tax-credit purposes under the Opportunity Scholarships Act. Such certification is subject to revocation by the department if the scholarship-granting organization subsequently fails to fulfill the requirements of this section or section 77-7110.

Source:Laws 2023, LB753, § 4.    
Operative Date: January 1, 2024


77-7105. Income tax credits; individual taxpayer; joint return; amounts.

(1) An individual taxpayer who makes one or more cash contributions to one or more scholarship-granting organizations during a tax year shall be eligible for a credit against the income tax due under the Nebraska Revenue Act of 1967. Except as otherwise provided in the Opportunity Scholarships Act, the amount of the credit shall be equal to whichever of the following amounts is the lowest: (a) The total amount of such contributions made during the tax year; (b) fifty percent of the income tax liability of such taxpayer for the tax year; or (c) one hundred thousand dollars. A taxpayer may only claim a credit pursuant to this section for the portion of the contribution that was not claimed as a charitable contribution under the Internal Revenue Code.

(2) Taxpayers who are married but file separate returns for a tax year in which they could have filed a joint return may each claim only one-half of the tax credit that would otherwise have been allowed for a joint return.

(3) The tax credit allowed under this section shall be a nonrefundable credit. Any amount of the credit that is unused may be carried forward and applied against the taxpayer's income tax liability for the next five years immediately following the tax year in which the credit is first allowed. The tax credit cannot be carried back.

(4) The taxpayer may not designate all or any part of the contribution to a scholarship-granting organization for the benefit of any eligible student specifically identified by the taxpayer.

(5) The tax credit allowed under this section is subject to section 77-7109.

Source:Laws 2023, LB753, § 5.    
Operative Date: January 1, 2024


Cross References

77-7106. Income tax credits; partnership, limited liability company, or subchapter S corporation; amounts.

(1) Any partnership, limited liability company, or corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, that is carrying on any trade or business for which deductions would be allowed under section 162 of the Internal Revenue Code of 1986, as amended, or is carrying on any rental activity and that makes one or more cash contributions to one or more scholarship-granting organizations during a tax year shall be eligible for a credit against the income tax due under the Nebraska Revenue Act of 1967. Except as otherwise provided in the Opportunity Scholarships Act, the amount of the credit shall be equal to whichever of the following amounts is the lowest: (a) The total amount of such contributions made during the tax year; (b) fifty percent of the income tax liability of such taxpayer for the tax year; or (c) one hundred thousand dollars. A taxpayer may only claim a credit pursuant to this section for the portion of the contribution that was not claimed as a charitable contribution under the Internal Revenue Code. The credit shall be attributed to each partner, member, or shareholder in the same proportion used to report the partnership's, limited liability company's, or subchapter S corporation's income or loss for income tax purposes.

(2) The tax credit allowed under this section shall be a nonrefundable credit. Any amount of the tax credit that is unused may be carried forward and applied against the taxpayer's income tax liability for the next five years immediately following the tax year in which the credit is first allowed. The tax credit cannot be carried back.

(3) The taxpayer may not designate all or any part of the contribution to a scholarship-granting organization for the benefit of any eligible student specifically identified by the taxpayer.

(4) The tax credit allowed under this section is subject to section 77-7109.

Source:Laws 2023, LB753, § 6.    
Operative Date: January 1, 2024


Cross References

77-7107. Income tax credits; estate or trust; amounts.

(1) An estate or trust which makes one or more cash contributions to one or more scholarship-granting organizations during a tax year shall be eligible for a credit against the income tax due under the Nebraska Revenue Act of 1967. Except as otherwise provided in the Opportunity Scholarships Act, the amount of the credit shall be equal to whichever of the following amounts is the lowest: (a) The total amount of such contributions made during the tax year; (b) fifty percent of the income tax liability of such taxpayer for the tax year; or (c) one million dollars. A taxpayer may only claim a credit pursuant to this section for the portion of the contribution that was not claimed as a charitable contribution under the Internal Revenue Code. Any credit not used by the estate or trust may be attributed to each beneficiary of the estate or trust in the same proportion used to report the beneficiary's income from the estate or trust for income tax purposes.

(2) The tax credit allowed under this section shall be a nonrefundable credit. Any amount of the tax credit that is unused may be carried forward and applied against the taxpayer's income tax liability for the next five years immediately following the tax year in which the credit is first allowed. The tax credit cannot be carried back.

(3) The taxpayer may not designate all or any part of the contribution to a scholarship-granting organization for the benefit of any eligible student specifically identified by the taxpayer.

(4) The tax credit allowed under this section is subject to section 77-7109.

Source:Laws 2023, LB753, § 7.    
Operative Date: January 1, 2024


Cross References

77-7108. Income tax credits; corporate taxpayer; amounts.

(1) A corporate taxpayer as defined in section 77-2734.04 which makes one or more cash contributions to one or more scholarship-granting organizations during a tax year shall be eligible for a credit against the income tax due under the Nebraska Revenue Act of 1967. Except as otherwise provided in the Opportunity Scholarships Act, the amount of the credit shall be equal to whichever of the following amounts is the lowest: (a) The total amount of such contributions made during the tax year; (b) fifty percent of the income tax liability of such taxpayer for the tax year; or (c) one hundred thousand dollars. A taxpayer may only claim a credit pursuant to this section for the portion of the contribution that was not claimed as a charitable contribution under the Internal Revenue Code.

(2) The tax credit allowed under this section shall be a nonrefundable credit. Any amount of the tax credit that is unused may be carried forward and applied against the taxpayer's income tax liability for the next five years immediately following the tax year in which the credit is first allowed. The tax credit cannot be carried back.

(3) The taxpayer may not designate all or any part of the contribution to a scholarship-granting organization for the benefit of any eligible student specifically identified by the taxpayer.

(4) The tax credit allowed under this section is subject to section 77-7109.

Source:Laws 2023, LB753, § 8.    
Operative Date: January 1, 2024


Cross References

77-7109. Tax credit; contributions; procedure; annual limit.

(1) Prior to making a contribution to a scholarship-granting organization, any taxpayer desiring to claim a tax credit under the Opportunity Scholarships Act shall notify the scholarship-granting organization of the taxpayer's intent to make a contribution and the amount to be claimed as a tax credit. Upon receiving each such notification, the scholarship-granting organization shall notify the department of the intended tax credit amount. If the department determines that the intended tax credit amount in the notification would exceed the limit specified in subsection (3) of this section, the department shall notify the scholarship-granting organization of its determination within thirty days after receipt of the notification. The scholarship-granting organization shall then promptly notify the taxpayer of the department's determination that the intended tax credit amount in the notification is not available. If an amount less than the amount indicated in the notification is available for a tax credit, the department shall notify the scholarship-granting organization of the available amount and the scholarship-granting organization shall notify the taxpayer of the available amount within three business days.

(2) In order to be allowed a tax credit as provided by the act, the taxpayer shall make its contribution between thirty-one and sixty days after notifying the scholarship-granting organization of the taxpayer's intent to make a contribution. If the scholarship-granting organization does not receive the contribution within the required time period, it shall notify the department of such fact and the department shall no longer include such amount when calculating whether the limit prescribed in subsection (3) of this section has been exceeded. If the scholarship-granting organization receives the contribution within the required time period, it shall provide the taxpayer with a receipt for the contribution. The receipt shall show the name and address of the scholarship-granting organization, the date the scholarship-granting organization was certified by the department in accordance with section 77-7104, the name, address, and, if available, tax identification number of the taxpayer making the contribution, the amount of the contribution, and the date the contribution was received.

(3) The department shall consider notifications regarding intended tax credit amounts in the order in which they are received to ascertain whether the intended tax credit amounts are within the annual limit provided in this subsection. The annual limit on the total amount of tax credits for calendar years 2024, 2025, and 2026 shall be twenty-five million dollars. The annual limit on the total amount of tax credits for calendar year 2027 and each calendar year thereafter shall be calculated by taking the annual limit from the prior calendar year and then multiplying such amount by (a) one hundred twenty-five percent if the intended tax credit amounts in the prior calendar year exceeded ninety percent of the annual limit applicable to that calendar year or (b) one hundred percent if the intended tax credit amounts in the prior calendar year did not exceed ninety percent of the annual limit applicable to that calendar year. The annual limit may be increased as provided in this subsection until it reaches one hundred million dollars. Thereafter, no further increases shall be allowed.

(4) The State Department of Education and the Department of Revenue shall publish on their respective websites information identifying the annual limit when it is increased pursuant to subsection (3) of this section.

(5) Once credits have reached the designated annual limit for any calendar year, no additional credits shall be allowed for such calendar year. Credits shall be prorated among the notifications received on the day the annual limit is exceeded.

Source:Laws 2023, LB753, § 9.    
Operative Date: January 1, 2024


77-7110. Scholarship-granting organization; certification; requirements.

(1) For purposes of this section:

(a) Net revenue means the total amount of revenue received by a scholarship-granting organization during a state fiscal year minus the amount of such revenue that is used or reserved for the administrative costs of such organization for the same state fiscal year;

(b) Revenue means all grants, donations, and contributions received by a scholarship-granting organization for the purpose of providing education scholarships; and

(c) State fiscal year means the period of time commencing on July 1 and ending on June 30 of the following year.

(2) In order for a scholarship-granting organization to remain certified under the Opportunity Scholarships Act, the scholarship-granting organization shall allocate its revenue as follows:

(a) If the annual limit on tax credits under section 77-7109 is less than thirty-five million dollars, the scholarship-granting organization shall allocate at least ninety percent of its revenue for education scholarships and no more than ten percent of its revenue shall be used or reserved for administrative costs; or

(b) If the annual limit on tax credits under section 77-7109 is thirty-five million dollars or more, the scholarship-granting organization shall allocate at least ninety-five percent of its revenue for education scholarships, and no more than five percent of its revenue shall be used or reserved for administrative costs.

(3) For purposes of subsection (2) of this section, revenue is allocated when it is expended or otherwise irrevocably encumbered for expenditure. The percentage of revenue allocated for education scholarships shall be measured as a monthly average over the most recent twenty-four-month period or, for a scholarship-granting organization that has been certified for less than twenty-four months, over the period of time that the scholarship-granting organization has been certified.

(4) Beginning January 1, 2028:

(a) A scholarship-granting organization shall carry forward no more than twenty-five percent of its net revenue from one state fiscal year to the following state fiscal year. Any amount carried forward shall be expended for annual or partial-year education scholarships in the following state fiscal year; and

(b) Any amount of net revenue remaining on June 30 of any state fiscal year that is in excess of the amount that may be carried forward under subdivision (a) of this subsection shall be used to provide education scholarships to eligible students or transferred to one or more other scholarship-granting organizations to provide education scholarships to eligible students by no later than the following September 30. Any amount of such net revenue that is not used or transferred by the following September 30 shall be remitted to the State Treasurer for credit to the General Fund. Any scholarship-granting organization receiving a transfer pursuant to this subdivision shall place the transferred funds into its scholarship account and shall separately disclose the transfer in its annual financial audit.

Source:Laws 2023, LB753, § 10.    
Operative Date: January 1, 2024


77-7111. Scholarship-granting organization; audited financial information report; summary descriptions; submission; department; report.

(1) Each scholarship-granting organization shall annually submit to the department no later than December 1 of each year an audited financial information report for its most recent fiscal year certified by an independent public accountant.

(2) Each scholarship-granting organization shall include with the report submitted under subsection (1) of this section a summary description of (a) its policies and procedures for awarding education scholarships, (b) the number of eligible students receiving education scholarships in the most recent fiscal year, (c) the total amount of contributions received for education scholarships in the most recent fiscal year, and (d) the total amount of education scholarships awarded in the most recent fiscal year.

(3) The department shall electronically forward such reports and summary descriptions to the Governor and the Legislature no later than December 31 of each year.

(4) By June 30, 2027, and by June 30 of each odd-numbered year thereafter, the department shall electronically submit a report to the chairperson of the Appropriations Committee of the Legislature, the chairperson of the Education Committee of the Legislature, and the chairperson of the Revenue Committee of the Legislature. The report shall include, but not be limited to, the following:

(a) A review of the progress of the Opportunity Scholarships Act;

(b) The number of students currently wait-listed or denied from receiving an education scholarship and the reason for the wait-listing or denial;

(c) The dollar amount of education scholarships given by scholarship-granting organizations; and

(d) The demographic information of students receiving education scholarships, including, but not limited to:

(i) Income level;

(ii) Grade level; and

(iii) Geographic location.

Source:Laws 2023, LB753, § 11.    
Operative Date: January 1, 2024


77-7112. Act; how construed.

The Opportunity Scholarships Act shall not be construed as granting any expanded or additional authority to the State of Nebraska to control or influence the governance or policies of any qualified school due to the fact that the qualified school admits and enrolls students who receive education scholarships or as requiring any such qualified school to admit or, once admitted, to continue the enrollment of any student receiving an education scholarship.

Source:Laws 2023, LB753, § 12.    
Operative Date: January 1, 2024


77-7113. Rules and regulations.

The department may adopt and promulgate rules and regulations to carry out the Opportunity Scholarships Act.

Source:Laws 2023, LB753, § 13.    
Operative Date: January 1, 2024


77-7201. Act, how cited.

Sections 77-7201 to 77-7205 shall be known and may be cited as the Child Care Tax Credit Act.

Source:Laws 2023, LB754, § 1.    
Effective Date: June 1, 2023


77-7202. Terms, defined.

For purposes of the Child Care Tax Credit Act:

(1) Child means an individual who is five years of age or less;

(2) Department means the Department of Revenue;

(3) Eligible program means a program that is licensed as a family child care home I, family child care home II, child care center, or preschool and operates as a for-profit child care business or is a nonprofit organization under the Internal Revenue Code of 1986, as amended;

(4) Intermediary means any organization that distributes funds for the purpose of supporting an eligible program;

(5) Parent or legal guardian means an individual who claims a child as a dependent for federal income tax purposes;

(6) Qualifying contribution means a contribution in the form of cash, check, cash equivalent, agricultural commodity, livestock, or publicly traded security that is made:

(a) For the establishment or operation of an eligible program;

(b) For the establishment of a grant or loan program for parents requiring financial assistance for an eligible program;

(c) To an early childhood collaborative or another intermediary to provide training, technical assistance, or mentorship to child care providers;

(d) For the establishment or ongoing costs of an information dissemination program that assists parents with information and referral services for child care;

(e) To a for-profit child care business, including family home providers. The for-profit child care business must use the proceeds of a qualifying contribution for (i) the acquisition or improvement of child care facilities, (ii) the acquisition of equipment, (iii) providing services, or (iv) employee retention; or

(f) To an intermediary for the establishment or operation of an eligible program or for the establishment of a grant or loan program for parents requiring financial assistance for an eligible program;

(7) Taxpayer means any person subject to the income tax imposed by the Nebraska Revenue Act of 1967. The term includes resident and nonresident individuals, estates, trusts, and corporations; and

(8) Total household income means federal modified adjusted gross income.

Source:Laws 2023, LB754, § 2.    
Effective Date: June 1, 2023


Cross References

77-7203. Parent or legal guardian; tax credit; eligibility; amount; application; approval, conditions.

(1) For taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended, a parent or legal guardian shall be eligible to receive a credit against the income tax imposed by the Nebraska Revenue Act of 1967 if:

(a) The parent's or legal guardian's child is enrolled in a child care program licensed pursuant to the Child Care Licensing Act;

(b) The parent's or legal guardian's child receives care from an approved license-exempt provider enrolled in the child care subsidy program pursuant to sections 68-1202 and 68-1206; or

(c) The parent's or legal guardian's total household income is less than or equal to one hundred percent of the federal poverty level.

(2) The credit provided in this section shall be a refundable tax credit equal to:

(a) Two thousand dollars per child if the parent's or legal guardian's total household income is no more than seventy-five thousand dollars; or

(b) One thousand dollars per child if the parent's or legal guardian's total household income is more than seventy-five thousand dollars but no more than one hundred fifty thousand dollars.

(3) A parent or legal guardian shall not be eligible for a credit under this section if the parent's or legal guardian's total household income is more than one hundred fifty thousand dollars.

(4) A parent or legal guardian shall apply for the credit provided in this section by submitting an application to the department with the following information:

(a) The number of children for which the parent or legal guardian is claiming a credit;

(b) Documentation of the parent's or legal guardian's total household income; and

(c) Any other documentation required by the department.

(5) Subject to subsection (6) of this section, if the department determines that the parent or legal guardian qualifies for tax credits under this section, the department shall approve the application and certify the amount of credits approved to the parent or legal guardian.

(6) The department shall consider applications in the order in which they are received and may approve tax credits under this section each year until the total amount of credits approved for the year equals fifteen million dollars.

Source:Laws 2023, LB754, § 3.    
Effective Date: June 1, 2023


Cross References

77-7204. Taxpayer; qualifying contribution; tax credit; amount; eligibility; application; approval, conditions.

(1) For taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended, any taxpayer who makes a qualifying contribution during the taxable year shall be eligible to receive a credit against the income tax imposed by the Nebraska Revenue Act of 1967.

(2) The credit provided in this section shall be a nonrefundable credit equal to either one hundred percent or seventy-five percent of the taxpayer's qualifying contribution made during the taxable year, except that the credit for a taxpayer shall not exceed one hundred thousand dollars for any single taxable year.

(3) The credit shall be equal to one hundred percent of the qualifying contribution if:

(a) The eligible program that receives the contribution has a physical presence in an opportunity zone in this state designated pursuant to the federal Tax Cuts and Jobs Act, Public Law 115-97; or

(b) The eligible program that receives the contribution has at least one child enrolled in the child care subsidy program established pursuant to sections 68-1202 and 68-1206 and the child care provider is actively caring and billing for the child as verified by the Department of Health and Human Services. Attracting child care providers into the child care subsidy program and retaining providers in the program are directly connected to the administration of the program. Verifying that the child care provider is actively caring and billing for an eligible child is in furtherance of the child care subsidy program. The Department of Revenue shall not use any verification information obtained from the Department of Health and Human Services except for purposes directly connected with the administration of the Child Care Tax Credit Act.

(4) The credit shall be equal to seventy-five percent of the qualifying contribution if subsection (3) of this section does not apply.

(5) A taxpayer shall not be eligible for the credit provided in this section if the taxpayer claimed a charitable contribution deduction for the qualifying contribution on the taxpayer's federal income tax return.

(6) A taxpayer shall apply for the credit provided in this section by submitting an application to the department with the following information:

(a) Documentation to show that the contribution is a qualifying contribution; and

(b) Any other documentation required by the department.

(7) Subject to subsection (8) of this section, if the department determines that the taxpayer qualifies for tax credits under this section, the department shall approve the application and certify the amount of credits approved to the taxpayer.

(8) The department shall consider applications in the order in which they are received and may approve tax credits under this section each year until the total amount of credits approved for the year equals two million five hundred thousand dollars.

(9) If a taxpayer's credit under this section exceeds the total tax due, the taxpayer may carry forward the excess credit for up to five taxable years after the taxable year in which the credit was first allowed, but the taxpayer must use the carryover credit in the earliest taxable year possible.

(10) A contribution shall not qualify for a credit under this section if the contribution is made to a child care provider in which the taxpayer or a person related to the taxpayer has a financial interest, unless the contribution is part of a bona fide arm's length transaction.

Source:Laws 2023, LB754, § 4.    
Effective Date: June 1, 2023


Cross References

77-7205. Rules and regulations.

The department may adopt and promulgate rules and regulations to carry out the Child Care Tax Credit Act.

Source:Laws 2023, LB754, § 5.    
Effective Date: June 1, 2023