Section 350-15-003 - TAX STATUS003.01 Real and personal property owned by the state of Nebraska and its governmental subdivisions, to the extent used or being developed for use by the state or governmental subdivision for a public purpose, shall be exempt from property taxes.003.02 Real and personal property, leased or unleased, being used to carry out responsibilities conferred by law, with or without compensation, is deemed used for a public purpose under these regulations. Duties and responsibilities sufficient to meet the definition of public purpose may be conferred by federal or state constitution, statute, or case law or legally promulgated federal or state regulation.003.03 Unleased real and personal property owned by the state and its governmental subdivisions, which is not being used or developed for use for a public purpose, shall be subject to property taxes unless one of the following conditions is met: 003.03A A payment in lieu of taxes, pursuant to Reg-15-006, is being 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; or003.03B Other specific provisions of law prohibit taxation of such property.003.04 Real and personal property of the state and its governmental subdivisions that is leased to a private party for a public purpose shall be exempt from property taxes if such lease is at fair market value.003.05 Real and personal property of the state and its governmental subdivisions that is leased to a private party for any purpose other than a public purpose shall be subject to property taxes as if the property was owned by the lessee. Public purpose shall not include leasing of property to a private party unless the lease of the property is for a public purpose and at fair market value or unless otherwise specifically provided for by law.003.06 When the assessor or county board of equalization determines the use of property pursuant to this regulation, the dominant or primary use of property shall be considered, such that any incidental use for other purposes shall not effect the tax status of the property. For the purposes of this regulation, property obtained by a political subdivision due to failure to pay taxes or special assessments that is held by the political subdivision for sale at an amount less than or equal to the tax or special assessment liability plus interest, shall be deemed used for a public purpose.003.07 In cases where it is determined that the property, when considered as a whole, is not used entirely for a public purpose, but the property has separate and distinct use portions, an exemption from taxes for the portion used for a public purpose shall be allowed. When a parcel of governmentally owned property is used for several purposes simultaneously, the determination of taxable status should be based on the predominant use of the property. The predominant use of the property is the primary or dominant use. For example, if land adjacent to a publicly owned airport is required for a buffer zone for public safety purposes but is also leased for agricultural purposes, the predominant use of the parcel is as a buffer zone and its agricultural use is incidental in nature and the property is exempt.
003.07A In the analysis of such mixed use properties, a number of factors may be included in determining the predominant use of the property, including: 003.07A(1) Whether the use of the property assists the government entity in meeting a long term or ongoing purpose;003.07A(2) Whether the governmental entity has spent significant money in making the property ready for its public purpose use in comparison with any revenue generated by its nonpublic use; and003.07A(3) Whether the public purpose use is ongoing throughout the year as opposed to the seasonal nature of its nonpublic use.003.08 Leased properties of a public housing authority to low income individuals as a place of residence are for the authority's public purpose and shall be exempt from property tax.003.09 Aviation facilities owned by the state, an airport authority or other governmental subdivision, shall be deemed to be used for a public purpose and shall be exempt from property taxes and in lieu of taxes. 003.09A Aviation facilities leased by the state airport authority or governmental subdivision to a private party or entity are also deemed to be exempt from property taxes and in lieu of taxes provided they are leased at fair market value and are used or being developed for a public purpose.003.10 When the assessor or county board of equalization determines whether a lease to a private party for a public purpose, is at fair market value, factors other than the dollar amount of the lease payments must be taken into consideration. As long as the value of all benefits received by the state or governmental subdivision from the lessee is reasonable compensation for allowing the lessee use of the property, the lease shall be considered to be at fair market value. Such benefits may include services provided by the lessee in connection with the lessee's use of the property.003.11 Change in tax status during the year.003.11A When the tax status of property as determined by the assessor pursuant to REG-15-004.01 changes between January 1 and on or before levy date, the assessor shall modify their determination to reflect the tax status of the property as of levy date.003.11B When the State or a political subdivision purchases property for a public purpose after levy date and on or before lien date, the property shall be exempt from property tax for the current year, because as of lien date there is no taxable property upon which to attach the lien. 003.11B(1) When the State or a political subdivision purchases property for a public purpose upon which exists a lien for a prior taxes, the State or political subdivision takes the property subject to the lien. 003.11C When exempt property of the State or a political subdivision is sold to a non-exempt entity on or after January and on or before levy date, the county board of equalization shall place the property on the tax list retroactive to January 1 of the year the property is sold because as of levy date, there is taxable property upon which to levy a tax. The county board of equalization shall send notice of the assessed value to the record owner. Protests on the assessed valuation may be filed within thirty days after the mailing of the notice. The procedures for filing a protest shall be as set forth in REG-15-004. 003.11C(1) The decision of the county board of equalization on a protest must be made within thirty days after the date the protest was filed.003.11C(2) The county clerk shall mail notice of the board's decision to the protestor within seven days after the date of the decision.003.11C(3) The decision of the county board of equalization, may be appealed within thirty days after the date of the decision to the Tax Equalization and Review Commission pursuant to Neb. Rev. Stat. Section 77-5013.003.12 When the assessor makes a change in the tax status of the property, notice shall be sent to the owner of record. The owner or lessee may protest such change in tax status to the county board of equalization within thirty days after the date of the notice. Decisions of the county board of equalization on protests must be made within thirty days after the date the protest was filed. 003.12A The county clerk shall mail notice of the board's decision to the protestor within seven days after the date of the decision.003.13 The decision of the county board of equalization may be appealed within thirty days after the date of the decision to the Tax Equalization and Review Commission pursuant to Neb. Rev. Stat. Section 77-5013.003.14 When property of the state and governmental subdivisions is deemed taxable after March 1, the assessor shall report such property for taxation purposes to the county board of equalization on or before July 25. 003.14A If the property is deemed taxable after March 1 and on or before June 1, only the notice of intent to tax shall be sent to the affected state agency or governmental subdivision by the county board of equalization. The county board of equalization shall send the valuation change notice after June 1 and on or before July 25.003.14B If the property is deemed taxable after June 1 and on or before July 25, the notice of intent to tax and valuation change notice shall be sent on or before July 25 to the affected state agency or governmental subdivision by the county board of equalization.003.15 When leased taxable property of the state and governmental subdivisions is discovered as not having been reported to the assessor pursuant to REG-15-004.02, for the current year or any former year or years, such property shall be reported immediately to the county board of equalization. 003.15A If the leased taxable property is discovered after March 1 and on or before June 1 for the current year, only the notice of intent to tax shall be sent to the affected state agency or governmental subdivision by the county board of equalization. The county board of equalization shall send the valuation change notice after June 1, for the current year. For any former year or years the notice of intent to tax along with the valuation change notice shall be sent immediately by the county board of equalization.003.15B If the leased taxable property is discovered after June 1 for the current year and any former year or years, the county board of equalization shall immediately send the notice of intent to tax along with the valuation change notice to the affected state agency or governmental subdivision.003.16 The owner or lessee, if applicable, may protest any notice received from the county board of equalization pursuant to REG-15-003.15 to the county board of equalization within thirty days after the date of the notice. Decisions of the county board of equalization on protests must be made within thirty days after the date the protest was filed. 003.16A The county clerk shall mail notice of the board's decision to the protestor within seven days after the date of the decision.003.17 The decision of the county board of equalization may be appealed within thirty days after the date of the decision to the Tax Equalization and Review Commission pursuant to Neb. Rev. Stat. Section 77-5013.003.18 If failure to give notice pursuant to REG-15-003.11C, REG-15-003.11C(2)(2), REG 15-003.12, REG-15-003.12A, REG-003.14A, REG-15-003.14B, REG-15-003.15B and REG-15-003.16A prevented the timely filing of a protest or appeal, an owner, agent or the lessee that is responsible for paying the property taxes pursuant to Neb. Rev. Stat. Section 77-202.11 and has a right to protest or appeal may petition the Tax Equalization and Review Commission pursuant to Neb. Rev. Stat. Section 77-5013, on or before December 31 of the year in which the notice should have been sent, for a determination of the taxability, the actual valuation or the special valuation assessment.003.19 No petition or appeal shall in any manner suspend the collection of tax or the duties of officers relating thereto during the pendency of the petition or appeal, and all taxes affected thereby, which may be collected, shall be distributed as though no petition or appeal were pending.003.20 If by final order of the Commission, it is determined that such tax or a part thereof should be refunded, the county treasurer is authorized to make the refund upon receiving a certified copy of such final order.350 Neb. Admin. Code, ch. 15, § 003