Nebraska Revised Statute 77-120

Chapter 77

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

  • The basis as defined by section 1012 of the Internal Revenue Code in turn composes the Nebraska adjusted basis under section 77-118, which then composes the net book value under subsection (1) of this section. Mid City Bank, Inc. v. Douglas Cty. Bd. of Equal., 260 Neb. 282, 616 N.W.2d 341 (2000).