Opinion ID: 1652750
Heading Depth: 1
Heading Rank: 2

Heading: nebraska's statute for tax-exempt property

Text: Originally, the constitutional provision for property tax exemption appeared in 1875 as article IX, § 2, of the Nebraska Constitution: The property of the state, counties and municipal corporations, both real and personal, shall be exempt from taxation, and such other property as may be used exclusively for agricultural and horticultural societies, for school, religious, cemetery and charitable purposes, may be exempted from taxation, but such exemptions shall be only by general law. Hence, the initial statute for the charitable and educational exemptions from property taxation was Comp.Stat. § 4934 (1903), which provided in part: The following property shall be exempt from taxes: FirstAll property of the state, counties, and municipal corporations. SecondSuch other property as may be used exclusively for agricultural and horticultural societies, for schools, religious, cemetery and charitable purposes. As the result of a constitutional amendment in 1920, the genesis for property tax exemption is Neb. Const. art. VIII, § 2, which, pertinent to the present appeal, provides: The property of the state and its governmental subdivisions shall be exempt from taxation. The Legislature by general law may exempt ... property owned and used exclusively for educational, religious, charitable, or cemetery purposes, when such property is not owned or used for financial gain or profit to either the owner or user. Consequently, in 1921, the Legislature amended the property tax exemption statute to provide in part: The following property shall be exempt from taxes: (1) The property of the state and its governmental subdivisions. (2) Property owned by and used exclusively for agricultural and horticultural societies, and property owned and used exclusively for educational, religious, charitable or cemetery purposes, when such property is not owned or used for financial gain or profit to either the owner or user. Comp.Stat. § 5821 (1922). Insofar as questions in this appeal are concerned, Nebraska's Revised Statutes of 1943 retained the provisions of the 1921 statute: The following property shall be exempt from taxes: (1) The property of the state and its governmental subdivisions; .... (3) Property owned and used exclusively for educational, religious, charitable or cemetery purposes, when such property is not owned or used for financial gain or profit to either the owner or user.... § 77-202 (1943). In 1980, § 77-202 was amended to provide: (1) The following property shall be exempt from taxes: (a) The property of the state and its governmental subdivisions; .... (c) Property owned by educational, religious, charitable, or cemetery organizations and used exclusively for educational, religious, charitable, or cemetery purposes, when such property is not owned or used for financial gain or profit to either the owner or user.... (Amendatory new language emphasized.) § 77-202(1)(a) and (c) (Reissue 1981). The Legislature, in 1984, again amended § 77-202: (1) The following property shall be exempt from taxes: (a) The property of the state and its governmental subdivisions; .... (c) Property owned by educational, religious, charitable, or cemetery organizations and used exclusively for educational, religious, charitable, or cemetery purposes, when such property is not (i) owned or used for financial gain or profit to either the owner or user, (ii) used for the sale of alcoholic liquors for more than twenty hours per week, or (iii) owned or used by an organization which discriminates in membership or employment based on race, color, or national origin. For purposes of this subdivision, educational organization shall mean an institution operated exclusively for the purpose of offering regular courses with systematic instruction in academic, vocational, or technical subjects or a museum or historical society operated exclusively for the benefit and education of the public, and charitable organization shall mean an organization operated exclusively for the purpose of the mental, social, or physical benefit of the public or an indefinite number of persons .... (Amendatory new language emphasized.) § 77-202(1)(a) and (c) (Cum.Supp.1984). After the 1984 amendment, subparts (a) and (c) of § 77-202(1) have remained unchanged. See § 77-202 (Reissue 1990).