Section 316-36-006 - STATE TAX LIENS006.01 If any person liable to pay any tax under any tax program administered by the Tax Commissioner neglects or refuses to pay any delinquency after a demand for payment, the amount of the tax, including any interest, penalty, and costs that may accrue, is a lien in favor of the state upon all property and rights to property, then owned by the person or acquired before the expiration of the state tax lien. 006.01A Unless another date is specifically provided by law, the state tax lien arises on the date of assessment and remains in effect: 006.01A(1) For three years after that date if the notice of state tax lien is not recorded with the Secretary of State;006.01A(2) For ten years after the date the notice of state tax lien or continuation statement is recorded with the Secretary of State;006.01A(3) Until the amounts have been paid or a judgment against the taxpayer arising out of the liability has been satisfied; or006.01A(4) Until the state tax lien has expired, unless a continuation statement is recorded prior to the lapse. 006.01B A state tax lien may be continued for additional consecutive ten-year periods.006.01C A state tax lien expires and becomes unenforceable if the Department does not record the state tax lien or continuation statement within the three or ten-year period.006.02 The notice of state tax lien may be recorded with the Secretary of State if any of the following conditions exist:006.02A There is a balance due as a result of non-payment or partial payment, after a demand for payment has been made;006.02B There is a balance due as a result of a notice of proposed deficiency determination that has become final; or006.02C There is a balance due as a result of a notice of jeopardy determination, in which case the notice of state tax lien should be recorded at the time the notice of jeopardy determination and demand for payment is mailed or delivered to the taxpayer.006.03 A notice of state tax lien will not be recorded: 006.03A Before a demand for payment has been issued to the taxpayer.006.03B While the taxpayer is under the jurisdiction of the Bankruptcy Court, unless relief or permission is granted by the court;006.03C When the statute of limitations for recording state tax liens has expired;006.03D When a notice of proposed deficiency determination is still open to protest, unless the proposed deficiency determination was issued as a jeopardy assessment;006.03E Before a corporate officer or responsible person has been properly notified and the demand for payment has become final; or006.03F Before a transferee or successor has been properly notified and the assessment has become final.006.04 The notice of state tax lien recorded with the Secretary of State must include: the names of the taxpayers responsible for the tax; the amount of tax, penalty, interest, and costs through the date of the state tax lien; the tax periods and tax programs involved; and a statement that the state tax lien will become unenforceable by operation of law ten years after the date of recording if no continuation statement is recorded on or before the expiration of the most recent notice of state tax lien or continuation statement. The taxpayers responsible for the tax are: 006.04A For a sole proprietorship, the taxpayer responsible for the tax is the individual who owns the business based on the records of the Department;006.04B For a corporation, the taxpayer responsible for the tax is the corporation as its name appears in the records of the Secretary of State;006.04C For a general partnership, the taxpayers responsible for the tax are all the partners as jointly and severally liable, and if there is property held in the partnership name, the partnership;006.04D For a limited partnership, the taxpayers responsible for the tax are all the general partners as jointly and severally liable, and if there is property held in the partnership name, the partnership; or006.04E For a limited liability company (LLC), Subchapter S corporation, cooperative, joint venture, or any other entity, the taxpayer responsible for the tax is the business as its name appears in the records of the Secretary of State.006.05 The Priority of a State Tax Lien 006.05A With regard to the Internal Revenue Service, the priority of a state tax lien is determined from the date of assessment.006.05B With regard to all other creditors, the priority of a state tax lien is determined when the notice of state tax lien was recorded with the Secretary of State or, in the case of real property, the date the notice of state tax lien was recorded with the register of deeds of the appropriate county.006.05C Unless otherwise provided by law, a state tax lien is valid against any purchaser, successor to business property, holder of a security interest, holder of a mechanic's lien, or judgment lien creditor as of the date the notice of state tax lien is recorded with the Secretary of State, or in the case of real property, the register of deeds of the appropriate county. 006.05D The state tax lien is valid against any subsequent creditor, but is subject to a prior lien.006.05E In the case of a prior mortgage on real property, or a secured transaction covering personal property written to secure a present debt and future advances, the state tax lien is subject to the prior lien unless the Tax Commissioner has notified the lienholder in writing of the recording of the state tax lien. In this case, any subsequent indebtedness created under the mortgage or secured transaction is junior to the state tax lien.006.06 Termination of State Tax Liens A state tax lien will be terminated by the Department if the delinquency is paid, abated, adjusted, or reduced to less than $50. The Department must record a termination statement upon the termination of any state tax lien.
006.07 A state tax lien may be released in whole or in part with respect to particular persons or property by the Department if: 006.07A The tax amount and any interest, penalties, and costs have been secured sufficiently by a lien on other property;006.07B A surety bond or other satisfactory security has been posted, deposited, or pledged with the Tax Commissioner in an amount sufficient to secure the payment of the taxes and any interest, penalties, and costs; or006.07C The release, or partial release of the state tax lien, will not jeopardize the collection of the taxes and any interest, penalties, and costs.006.07D The Department must record a release statement upon the release, in whole or in part, of any state tax lien.006.08 A state tax lien may be subordinated to other liens and encumbrances by the Department if subordination of the state tax lien will not jeopardize the collection of the taxes and any interest, penalties, and costs. To subordinate a state tax lien, the Department must record a subordination statement with the Secretary of State.006.09 The Department will send a demand for payment notifying the taxpayer that a tax lien may be recorded. This demand for payment and notice must state that the taxpayer may request in writing, a determination that a state tax lien is not valid against the taxpayer's interest in property within 20 days after the demand for payment and notice is mailed to the taxpayer.006.09A If the taxpayer requests a determination that a state tax lien is not valid against the taxpayer's interest in property, the Department must respond to the taxpayer's request in writing within ten days of receipt of the request, and mail its response by first class mail.006.09B The taxpayer may appeal the decision as provided in Neb. Rev. Stat. § 84-917.316 Neb. Admin. Code, ch. 36, § 006
Neb. Rev. Stat. §§ 77-27,103 and 77-3904. July 3, 2013