Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 350 - Nebraska Department of Revenue, Property Assessment Division
Chapter 40 - Property Tax Exemption Regulations
Section 350-40-007 - PROPERTY TRANSFERS OR USE CONVERSIONS DURING TAX YEAR

007.01 When an organization or society seeks an exemption for property, except motor vehicles, acquired or converted to exempt use after January 1, but on or before July 1 of any year, the organization or society must file an Exemption Application for Tax Exemption on Real and Personal Property by Qualifying Organizations, Form 451, with the county assessor on or before July 1 and comply with all application procedures and requirements. To qualify for an exemption, the property must be used for exempt purposes as of the date of application. Failure to file the application on or before July 1 disqualifies the property for an exemption for that tax year. The county board of equalization must review the application for exemption by August 15 following the date of application, as prescribed in REG-40-006.07 and REG-40-006.08.

007.02 All nonexempt property, except motor vehicles, acquired or converted to exempt use after July 1 by an organization or society will not be allowed an exemption for that tax year. If an application is timely filed pursuant to Reg-40-006, the organization may be allowed an exemption for the next tax year.

007.03 When exempt property is sold to a nonexempt entity on or after January 1 and on or before levy date, the property will be taxable retroactive to January 1 of the year the property is sold because, as of the levy date, there is taxable property upon which to levy a tax. The levy date is determined by each county board of equalization per Neb. Rev. Stat. § 77-1601 on or before October 15.

007.04 When exempt property is sold between levy date and December 31, it will remain exempt for that year because no levy had been made upon the property.

007.05 When exempt property is sold to another educational, religious, charitable, or cemetery organization; any organization for the exclusive benefit of an educational, religious, charitable, or cemetery organization; or an agricultural or horticultural society on or before July 1, the property may be exempt only if the new owner files an application for exemption on or before July 1 of that year.

007.06 When an educational, religious, charitable, or cemetery organization; any organization for the exclusive benefit of an educational, religious, charitable, or cemetery organization; or an agricultural or horticultural society purchases property that was exempt from taxes between July 1 and the levy date, and the property continues to qualify for exemption, the purchaser must make application (Form 451) to the county assessor on or before November 15 as provided in REG-40-006.01. The county board of equalization must review the application for exemption by December 15 as prescribed in REG-40-006.07 and REG-40-006.08. The county clerk will also electronically send all decisions of the county board of equalization regarding exemptions to the Department within seven days of the board's decision pursuant to Neb. Rev. Stat. § 77-202.04.

007.07 When a federal governmental entity that is exempt from paying property taxes purchases taxable property on or after January 1 and on or before the levy date, the property will be exempt for that tax year because, as of the levy date on or before October 15, there was no taxable property upon which to levy a tax.

007.08 When a federal governmental entity that is exempt from paying property taxes, purchases taxable property between levy date and on or before December 31, such property will be exempt from taxation for that year because, as of the lien date (December 31), there is no taxable property upon which to attach a lien.

007.09 When a state agency or a political subdivision of the state, purchases property on or after January 1 and on or before levy date, and is using or developing the property for a public purpose, the property will be exempt for that year because as of levy date, there was no taxable property upon which to levy a tax. If in the years following the purchase, the property is not being used for a public purpose or being developed for a public purpose it will be subject to assessment for property tax purposes or an in lieu of tax.

007.10 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.

007.11 When exempt property is transferred or converted to a non-exempt use on or before levy date, resulting in the property no longer qualifying for exemption, the county board of equalization shall hold a public hearing in the manner prescribed in REG-40-006.07. The county board of equalization shall place the property on the tax list retroactive to January 1 of the year the exemption is lost.