Justia Nebraska Supreme Court Opinion Summaries

Kerford Limestone Co. purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase. The State Tax Commissioner concluded that Kerford had failed to prove the motor grader was exempt manufacturing machinery and equipment. The district court (1) reversed the Commissioner’s determination that to qualify for an exemption, Kerford was required to show that the motor grader was used in manufacturing at least fifty percent of the time; (2) affirmed the Commissioner’s determination that Kerford’s use of the motor grader to maintain “haul roads” was not an exempt use; and (3) remanded for a determination of whether use of the motor grader to maintain inventory stockpile areas qualified Kerford for an exemption. The Supreme Court reversed the portion of the district court’s order that remanded the cause for further proceedings, holding (1) Kerford’s use of the motor grader to maintain inventory stockpile areas was a use in manufacturing; and (2) therefore, Kerford was entitled to an exemption from sales and use tax on its purchase of the motor grader. Remanded to the district court with direction to enter an order granting Kerford the exemption. View "Kerford Limestone Co. v. Neb. Dep't of Revenue" on Justia Law

The Harold Warp Pioneer Village Foundation (Foundation) owned and operated a museum, motel, and campground. The motel and campground were primarily used by museum visitors. The museum, motel, and campground were all granted property tax exemptions for many years, but in 2011, state tax officials challenged the exemptions granted to the motel and campground. The Nebraska Tax Equalization and Review Commission determined that because the motel and campground were not used exclusively for educational purposes, neither was entitled to tax exemptions under Nebraska law. The Supreme Court reversed, holding that the motel and campground were beneficial to the museum and reasonably necessary to further its educational mission, and were therefore entitled to property tax exemptions. View "Harold Warp Pioneer Village Found. v. Ewald" on Justia Law

Employee was injured during the scope and course of his employment with Employer, the Burlington Northern Santa Fe Railway Company. Because he was a railroad employee, Employee filed a claim for personal injury damages pursuant to the Federal Employers' Liability Act. The district court entered judgment in favor of Employee for $145,000. Employer paid the judgment but withheld $6,202 as Employee's share of Railroad Retirement Tax Act (RRTA) payroll taxes on the entire general verdict award. The district court (1) overruled BNSF's motion for satisfaction and discharge of judgment and directed BNSF to pay $6,202 directly to Employee, and (2) directed the parties to agree in writing that no amount of the award would be considered lost wages so as to avoid any obligations under the RRTA. The Supreme Court reversed, holding that the general verdict award in favor of Employee was an award of compensation from which Employer was required to withhold a portion of in order to pay RRTA payroll taxes. Remanded with directions that the district court enter a satisfaction and discharge of the judgment upon proof of payment of $6,202 by BNSF to the IRS on account of the lost wages paid to Employee. View "Heckman v. Burlington N. Santa Fe Ry. Co." on Justia Law

Effective in 2010, the Legislature changed the manner in which wind energy generation facilities are taxed. The change (1) exempted personal property used by wind energy generation facilities from the personal property tax and imposed a new tax based upon the facility's nameplate capacity, and (2) allowed taxpayers who had paid personal property tax prior to 2010 to claim a credit against nameplate capacity taxes assessed for the year 2010 and onward. Plaintiffs, Nebraska taxpayers, challenged the constitutionality of the credit. The district court determined that the credit provision of the new statute constituted an improper commutation of taxes and was therefore unconstitutional and void. The Supreme Court reversed, holding (1) the nameplate capacity tax credit did not violate the constitutional prohibition against commutation of taxes because the prohibition does not apply to an excise tax, and the tax in this case was an excise tax; and (2) the statute authorizing the credit was not special legislation prohibited by the state constitution. Remanded with directions to dismiss. View "Banks v. Heineman" on Justia Law

This appeal involved a declaratory judgment action challenging the constitutionality of a municipal ordinance creating an offstreet parking district adjoining a Cabela's store. Plaintiff, a resident of the City, filed a complaint against the City and its mayor and city council members, seeking a declaration of the unconstitutionality of the ordinance. The district court found the action was barred by the general four-year statute of limitations because it was commenced more than four years after the ordinance was adopted. At issue on appeal was when the statute of limitations began to run. The Supreme Court reversed without reaching the constitutionality of the ordinance because the Court could not tell from the face of Plaintiff's complaint when Plaintiff's cause of action accrued for purposes of the running of the statute of limitations. Remanded. View "Lindner v. Kindig" on Justia Law

Appellee, an LLC, sought a refund from Kearney County of a portion of its 2006 personal property taxes, alleging the taxes were paid as the result of an honest mistake or misunderstanding. The County Board of Supervisors denied the refund. The district court sustained Appellee's petition in error and ordered the County to refund $480,411 to Appellee pursuant to Neb. Rev. Stat. 77-1734.01, concluding that Appellee had paid the taxes as the result of an honest mistake or misunderstanding. The Supreme Court reversed, holding that because Appellee paid the 2006 personal property taxes based upon a mistake of law, section 77-1734.01 afforded it no relief, and therefore, the district court erred in determining that Appellee was entitled to a refund. View "Kaapa Ethanol, LLC v. Kearney County Bd. of Supervisors" on Justia Law

Appellant owned a convention center. In the 2009 and 2010 tax years, the conference center was valued by the Sarpy County assessor at $23,400,000. Appellant protested that valuation to the Sarpy County Board of Equalization, which denied the request. The Tax Equalization and Review Commission (TERC) denied Appellant's appeal and valued the conference center at the amount previously valued by the county assessor. The Supreme Court affirmed, holding that TERC did not err in affirming the valuation of the property because Appellant failed to meet its burden of showing that the county's valuation was unreasonable and arbitrary, and therefore, TERC's decision was lawful, was supported by competent evidence, and was not arbitrary or capricious. View "JQH La Vista Conference Ctr. Dev. LLC v. Sarpy County Bd. of Equalization" on Justia Law

After Claimant's attempt to obtain a refund of sales tax on building materials used in the construction of an ethanol production plant was administratively denied in part, Claimant sought judicial review. This appeal turned on a statutory limitation of the exemption for manufacturing machinery and equipment and the limited statutory authority for appointment of a purchasing agent. The Supreme Court affirmed, holding (1) the statute limited the exemption to purchases by the manufacturer; and (2) a contractual provision purporting to entitle the manufacturer to all tax credits for taxes paid by a construction contractor was not effective as a purchasing agent appointment. View "Bridgeport Ethanol v. Neb. Dep't of Revenue" on Justia Law

The Lincoln County Board of Equalization (Board) determined that Midwest Renewable Energy, LLC (Midwest) failed to timely file its 2009 personal property tax return and was therefore subject to a penalty. Midwest appealed this determination to the Tax Equalization and Review Commission (TERC), which affirmed. Midwest then appealed to the Court of Appeals, which also affirmed. The Supreme Court reversed, concluding that TERC erred in affirming the assessment of the penalty, as (1) the Board applied the wrong law when it decided Midwest's appeal; and (2) TERC erred on the record when it failed to analyze the effects of the Board's error and when it failed to recognize that the record before it contained evidence not presented to the Board. Remanded with directions to TERC to determine whether the return was timely mailed and filed. View "Midwest Renewable Energy, LLC v. Bd. of Equalization" on Justia Law

The district court dissolved the marriage of Jennifer Dalbey, Appellant, and Matthew Bock. At issue on appeal was whether a trial court in a martial dissolution action has the discretion to order the parties to file a joint income tax return. The court of appeals affirmed the trial court's order requiring the parties to file a joint tax return, concluding that trial courts do have such discretion. The Supreme Court reversed, holding that because a trial court can equitably adjust its division of the marital estate to account for a spouse's unreasonable refusal to file a joint return, resort to a coercive remedy that carries potential liability is unnecessary. Remanded. View "Bock v. Dalbey" on Justia Law