350 Neb. Admin. Code, ch. 11, § 009

Current through September 17, 2024

Section 350-11-009 - DISQUALIFICATION AND TAX CALCULATION

009.01 Each year through 2008, the assessor shall maintain the assessment roll to show the recapture valuation assessment and special valuation assessment on all land receiving the special valuation assessment.

009.02 Upon disqualification by the assessor or after protest to the county board of equalization, the assessor shall determine the total additional taxes due. This determination of the additional taxes shall be calculated as the difference from the recapture valuation assessment, minus the special valuation assessment, times the levies accrued during the applicable past years for which the property received the special valuation assessment. The total of these tax liabilities shall constitute the additional taxes and first liens on the disqualified land.

009.02A The assessor shall on certain dates issue tax list corrections to the county treasurer for the applicable years showing the amounts of additional taxes due and payable, and the periods during which the taxes accrued.

009.02A(1) Any date that the applicant wishes to pay the additional taxes and accrued interest during the thirty day appeal period of the notice of disqualification.

009.02A(2) The date following the expiration of the thirty day appeal period of the notice of disqualification if no protest was filed.

009.02A(3) The date the county board of equalization decides the disqualification protest and the decision is in agreement with the assessor's determination.

009.02B The assessor shall on the dates set out in Regs- 11-009.02A(1) through 11-009.02A(3), mail or provide written notification to the applicant that all or a portion of the land receiving the special valuation assessment, has become disqualified and state the amount of additional taxes and interest due for the past number of applicable years for which the property received the special valuation assessment.

009.02B(1) The notice shall also state that the additional taxes for the past number of applicable years for which the property received the special valuation assessment have become a first lien on the property, will accrue interest at the annual rate of six percent (6%) for sixty (60) days after the date of the notice of disqualification pursuant to Reg-11-007 and after the expiration of the sixty (60) days the additional taxes and interest combined shall be considered delinquent and subject to interest at the annual rate of fourteen percent (14%). For the current tax year, all taxes levied against the land shall become due and payable on December 31, in the same manner as all other real property taxes.

009.02C The county treasurer shall compute interest at the annual rate of six percent on the additional taxes from December 31 of the year such tax would have become payable had the special valuation assessment not been granted. Interest shall continue to accrue at the annual rate of six percent for sixty days after the date of disqualification pursuant to Reg-11-007. Upon the expiration of the sixty-day period the additional taxes and interest shall be considered delinquent. The combined delinquent taxes and interest shall become subject to interest at the annual rate of fourteen percent.

009.03 The total amount of additional taxes and interest collected by the county treasurer shall be distributed by tax year to the political subdivisions levying the tax in the same manner as other property taxes. If a subdivision no longer exists that was a part of a prior levy, that subdivision's tax shall be distributed to the subdivision or subdivisions with which it merged or consolidated.

009.04 If eligibility for the special valuation assessment is lost in 2007, the land shall be assessed and taxed at the recapture valuation assessment (75% of the recapture valuation) for that year. The additional taxes accrued during the prior two or lesser years shall be collected and are considered a lien against the property as of December 31 of each tax year in which the special valuation assessment was allowed. The additional taxes for 2006 and 2005 shall be calculated as the difference from the recapture valuation assessment, (80% of the recapture valuation) minus the special valuation assessment, times the levies accrued during the applicable past years.

009.05 If eligibility for the special valuation assessment is lost in 2008, the land shall be assessed and taxed at the recapture valuation assessment (75% of the recapture valuation) for that year. The additional taxes accrued during the prior year if the special valuation was in effect shall be collected and are considered a lien against the property as of December 31 of the prior year if the special valuation assessment was allowed. The additional taxes for 2007 shall be calculated as the difference from the recapture valuation assessment, (75% of the recapture valuation) minus the special valuation assessment, times the applicable levy from the past year.

009.05A Recapture valuation assessment is no longer applicable after 2008. No additional taxes and interest on the additional taxes will be collected after 2008.

009.06 If eligibility for the special valuation assessment is lost in 2009 or any year thereafter, the land will remain assessed at its special valuation assessment for that year. In the years following the year of ineligibility the land shall be assessed according to its classification pursuant to Neb. Rev. Stat. Section 77-201.

009.07 When eligibility is lost in 2007 or 2008 and the land is acquired by an owner who may make application for exemption from property taxes pursuant to Neb. Rev. Stat. Section 77-202.03(3) or acquired by the state or its political subdivisions by means other than those outlined in REG-11-009.08, (a) (b) (c) the lien for additional taxes for the current year shall attach as of the day preceding the day the exemption was granted. The lien for any previous years shall attach as of December 31, of each year, in which the special valuation assessment was allowed.

009.08 No additional taxes are due for any previous tax year when eligibility is lost as a result of:

(a) a sale or transfer to an entity, which did or has authority to acquire land through eminent domain; or

(b) the land is owned by a public entity and is disqualified because it is being used or is being developed for a public purpose use or is exchanged for other property to be used or developed for a public purpose use; or

(c) when the land is donated to an organization exempt from taxation under section 501(c)((3) of the Internal Revenue Code, state of Nebraska or a political subdivision of the State of Nebraska and will be used by the organization, state or political subdivision for a public, educational, religious, charitable, or cemetery purposes; or

(d) when the land was disqualified due to the change in the definition of agricultural and horticultural land pursuant to Neb. Rev. Stat. Section 77-1359.

009.09 Examples of recapture tax calculation

This process is applicable only to the agricultural or horticultural land on any parcel that received the special valuation assessment. Any nonagricultural or nonhorticultural land and improvements are not part of this process.

Example A

On September 17, 2007, 160 acres of unimproved agricultural land became disqualified and no longer will be eligible to receive the agricultural or horticultural land special valuation assessment. The additional taxes and interest that became due on September 17, 2007 for any applicable previous years were paid on September 17, 2007

The following is the history of the valuations and consolidated tax rates applied to this land for the current year and the applicable past years.

2007 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00

Recapture Valuation Assessment $600,000.00 (75% of Recapture Valuation)

Tax due date will be 12/31/07

2006 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00

Recapture Valuation Assessment $640,000.00 (80% of Recapture Valuation)

2006 Additional Taxable Valuation $512,000.00 = ($640,000.00 - $128,000.00)

2006 Consolidated Tax Rate .02

Tax due date was 12/31/06

2005 Special Valuation Assessment $112,000.00 Recapture Valuation $720,000.00

Recapture Valuation Assessment $576,000.00 (80% of Recapture Valuation)

2005 Additional Taxable Valuation $464,000.00 = ($576,000.00 - $112,000.00)

2005 Consolidated Tax Rate .0215

Tax due date was 12/31/05

Calculation of Additional Real Property Taxes and Interest

2007

For 2007, the taxable valuation for the 160 acres will be the recapture valuation assessment of $600,000.00No additional taxes and interest will be collected for the current year because of disqualification.

2006

Additional real property taxes = $512,000.00 x .02 = $10,240.00.

Additional interest @ .06 from the tax due date 12/31/06 through 9/17/07 = 260 days.

$10,240.00 x .06 = $ 614.40÷365 = $ 1.68 x 260 = $ 436.80.

Total additional taxes and interest $10,240.00 + $ 436.80 = $10,676.80.

If the additional taxes and .06 interest had not been paid on September 17, 2007 they would continue to accrue interest at $ 1.68 per day thru November 16, 2007 after which interest of .14 would be charged against the total additional taxes and interest until paid.

2005

Additional real property taxes = $464,000.00 x .0215 = $9,976.00.

Additional interest @ .06 from the tax due date 12/31/05 through 9/17/07 = 625 day.

$9,976.00 x .06 = $ 598.56÷5 = $ 1.64 x 625 = $1,025.00.

Total additional taxes and interest $9,976.00 + $1,025.00 = $11,001.00.

If the additional taxes and .06 interest had not been paid on September 17, 2007 they would continue to accrue interest at $ 1.64 per day thru November 16, 2007 after which interest of .14 would be charged against the total additional taxes and interest until paid.

2004

There are no additional taxes and interest collected for year 2004 on land that became disqualified for special valuation assessment at any time in 2007.

Example B

On April 25, 2008, 160 acres of unimproved agricultural land became disqualified and no longer was eligible to receive the agricultural or horticultural land special valuation assessment. The additional taxes and interests for 2007 that became due on April 25, 2008 were paid on September 17, 2008. There are no additional taxes and interest for 2006.

The following is the history of the valuations and consolidated tax rates applied to this land for the current year and the past three years.

2008 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00

2008 Recapture Valuation Assessment $600,000 (75% of Recapture Valuation)

Tax due date will be 12/31/08

2007 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00

2007 Recapture Valuation Assessment $600,000 (75% of Recapture Valuation)

2007 Additional Taxable Valuation $472,000.00 = ($600,000.00 - $128,000.00)

2007 Consolidated Tax Rate .02

Tax due date was 12/31/07

Calculation of Additional Real Property Taxes and Interest

2008

For 2008, the taxable valuation for the 160 acres will be the recapture valuation assessment of $600,000.00. No additional taxes and interest will be collected for the current year because of disqualification.

2007

Additional real property taxes = $472,000.00 x .02 = $9,440.00.

Additional interest @ .06 from the tax due date 12/31/07 thru 6/24/08 = 175 days.

$9,440.00 x .06 = $ 566.40÷365 = $ 1.55 x 175 = $ 271.25.

Additional interest @ .14 from 6/25/08 thru 9/17/08 = 85 days.

$9,440.00 + $ 271.25 = $9,711.25 x .14 = $1,359.58÷5 = $ 3.73 x 85 = $ 317.05

Total additional taxes and interest $9,440.00 + $ 271.25 + $ 317.05 = $10,028.30.

If the additional taxes and interest had not been paid on September 17, 2008, they would continue to accrue interest at $ 3.73 per day, until paid.

2006

There are no additional taxes and interest collected for 2006 on land that became disqualified for special the valuation assessment in 2008.

Starting January 1, 2009 and forward, no additional taxes and interest will be collected on land that becomes disqualified for the special valuation assessment.

350 Neb. Admin. Code, ch. 11, § 009