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

Current through June 17, 2024
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.