Justia Tax Law Opinion Summaries

The Supreme Court affirmed in part and reversed in part the judgment of the district court finding that Nancy Miles, Cheryl Bettin, and Robert Moninger would by unjustly enriched if they were not required to make reimbursement of taxes paid on the property at issue in this case during the time that Boone River, LLC and 11T NE, LLC held the tax certificate and tax deed, holding that the present lawsuit was barred by claim preclusion.Boone River purchased a tax certificate for the property owned by Miles, Bettin, and Moninger and obtained a tax deed. Boone River later transferred the property to 11T. When 11T sued to quiet title to the property the district court voided 11T's tax deed and quieted title to the property in Miles, Bettin, and Moninger. Thereafter, Boone River and 11T brought this lawsuit for unjust enrichment, seeking to be reimbursed for taxes paid on the property while they held they held the tax certificate and tax deed. The district court ruled in favor of Boone River and 11T. Miles and Bettin appealed, but Moninger did not. The Supreme Court reversed in part, holding that Miles and Bettin showed that this action was barred by claim preclusion. View "Boone River, LLC v. Miles" on Justia Law

The Supreme Court affirmed the order of the Nebraska Tax Equalization and Review Commission (TERC) reversing three decisions made by the Lincoln County Board of Equalization upholding the assessed value of certain property for tax years 2018 through 2020, holding that TERC did not err in finding the Board's decision to uphold the valuations was arbitrary and unreasonable.The property at issue was subject to rent restrictions under the Internal Revenue Code. Appellant protested the 2018, 2019, and 2020 valuations of the property, and the Board of affirmed the county assessor's valuation for each year. After a hearing, TERC reversed. The Supreme Court affirmed, holding (1) TERC correctly determined that the property's assessed value was arbitrary and unreasonable for each year; and (2) TERC was permitted to consider all evidence of actual value on appeal and was not limited to the income approach. View "Lincoln County Bd. of Equalization v. Western Tabor Ranch Apartments, LLC" on Justia Law

The Supreme Court affirmed the judgment of the district court upholding the Tax Commissioner's conclusion that Taxpayers failed to prove that they abandoned their domicile in Florida, holding that competent evidence supported the district court's factual findings and that its decision conformed to the law.The audit period in this case covered the calendar-year tax years from 2010 to 2014. Taxpayers, who filed income tax returns as married filing jointly, filed Nebraska income tax returns claiming status as nonresidents of Nebraska. The Department sent Taxpayers notices of proposed deficiency determinations for each tax year of the audit period, and the Commissioner denied Taxpayers' petitions for redetermination. The district court affirmed, determining that Taxpayers were residents of Nebraska during the audit period because they were domiciled in Nebraska in each of those years. The Supreme Court affirmed, holding that the district court's decision conformed to the law, was supported by competent evidence, and was neither arbitrary, capricious, nor unreasonable. View "Acklie v. Neb. Department of Revenue" on Justia Law

The Supreme Court reversed the decision of the Tax Equalization and Review Commission (TERC) affirming the decision of the Lancaster County Board of Equalization affirming the valuations of the agricultural land owned by Mary and Brad Moser for the tax year 2020 but reversing the County Board's decisions for the 2018 and 2019 tax years, holding that TERC erred.For the tax years 2018 and 2019, TERC reduced the value of the Mosers' irrigated acres to equalize those acres with a nearby parcel of agricultural property. The Supreme Court (1) reversed TERC's decision to the extent it ordered that irrigated cropland on certain property be valued as drylands cropland for the 2018 and 2019 tax years, holding that TERC's conclusions as to this property was factually incorrect, was not supported by competent evidence, failed to conform to the law, and was unreasonable; and (2) otherwise affirmed, holding that there was no error was to the 2020 tax year valuation. View "Lancaster County Bd. of Equalization v. Moser" on Justia Law

The Supreme Court affirmed the district court's judgment affirming the Nebraska Department of Revenue's denial of Gelco Fleet Trust's claim for a refund on sales tax it allegedly overpaid on the purchase price of a new vehicle, holding that there were no errors on the record.Gelco submitted a claim for refund of sales tax, which the Department denied. On appeal, the district court affirmed the Department's decision, determining that the Department properly included the disputed amount in the sales price and calculation of sales tax. The Supreme Court affirmed holding that the district court's determination conformed to the law, was supported by competent evidence, and was neither arbitrary capricious, nor unreasonable. View "Gelco Fleet Trust v. Neb. Dep't of Revenue" on Justia Law

The Supreme Court affirmed the judgment of the district court finding that Plaintiff did not qualify for an extended redemption period under Neb. Rev. Stat. 77-1827 and that the tax certificate sale process at issue in this case did not violate Plaintiff's constitutional rights, holding that there was no error.Because Plaintiff did not pay her 2013 property taxes the Lancaster County treasurer to a private party. Three years later, the tax certificate holder applied for and obtained a tax deed to the property. Plaintiff subsequently brought this action seeking to quiet title to the property in her name, arguing that the issuance of the tax deed had violated her rights under the state and federal constitutions and that she had a statutory right to a five-year redemption period under Neb. Rev. Stat. 77-1827. The district court dismissed all claims. The Supreme Court affirmed, holding that the district court did not err when it determined that Plaintiff was not entitled to the statutory extended redemption period or when it dismissed her constitutional claims. View "Nieveen v. TAX 106" on Justia Law

The Supreme Court affirmed the judgment of the district court granting summary judgment for Continental Resources in this quiet title action against Kevin and Terry Fair, holding that the district court did not err in granting Continental's summary judgment motion to quiet title.At issue on appeal was the constitutionality of the statute that authorize the process allowing the county in which a property is located to sell a tax certificate for the property to a private party if the property owner fails to pay property taxes. If the owner fails to pay the taxes owed after a period of time and the tax certificate purchaser complies with certain requirements, the purchaser can obtain a deed to the property free of encumbrances. The Supreme Court affirmed, holding that Nebraska's tax certificate sale statutes are not unconstitutional in the manner assigned by Fair. View "Continental Resources v. Fair" on Justia Law

The Supreme Court affirmed the decision of the Tax Commission affirming the deficiency assessment imposed by the Nebraska Department of Revenue upon a Nebraska corporation, which purchased an interest in an airplane from a Kansas seller without paying Nebraska sales or use taxes, holding that there was no error.The Department issued a notice of deficiency determination to the corporation in the total amount of $161,373. The corporation appealed, claiming that no taxes were owed because the airplane purchase was a "sale for resale." The Tax Commission found that the purchase was not a sale for resale and affirmed the Department's deficiency assessment. The district court affirmed. The Supreme Court affirmed, holding that the district court's finding that the corporation's airplane purchase did not qualify as a nontaxable sale for resale was supported by sufficient competent evidence and was not contrary to law. View "Big Blue Express v. Nebraska Department of Revenue" on Justia Law

The Supreme Court affirmed the judgment of the district court concluding that income taxpayers did not meet their burden of proof that they abandoned their domicile in Nebraska and acquired a domicile in the United Kingdom (U.K.), holding that competent evidence supported the district court's factual findings.The Department of Revenue issued to Appellants a notice of proposed deficiency determination for individual income tax for tax years 2012 to 2014. Appellants requested a redetermination that no money was due, claiming that the U.K. was their domicile. The Tax Commissioner determined that Appellants failed to sustain their burden of proof. The district court affirmed. The Supreme Court affirmed, holding that the district court's ultimate decision to affirm the Tax Commissioner's order was not in error. View "Houghton v. Nebraska Department of Revenue" on Justia Law

The Supreme Court affirmed the order of the district court finding that the production of aggregate by Ash Grove Cement Company qualified as "processing" under the Nebraska Advantage Act (NAA), Neb. Rev. Stat. 77-5701 to 77-5735, and finding that Ash Grove's aggregate production did not qualify as "manufacturing" under the NAA, holding that the appeals in this case were without merit.Because Lyman-Richey, which sold aggregate products used for things like manufacturing concrete, was wholly owned by Ash Grove, Ash Grove was eligible to include Lyman-Richey in its application for NAA tax incentives. At issue in this case was whether the district court erred in (1) finding that aggregate production locations were not engaged in "manufacturing" under the NAA; (2) denying Lyman-Richey's claims for overpayment of sales and use tax based on the manufacturing machinery or equipment exemption; and (3) finding the aggregate production locations were engaged in "processing" under the NAA. The Supreme Court affirmed, holding (1) although Ash Grove did not engage in "manufacturing" when it produced aggregate without crushing, it did engage in the qualified business of "processing" under the NAA; and (2) Lyman-Richey failed to prove entitlement to overpayment of sales and use tax based on the manufacturing machinery and equipment exemption. View "Ash Grove Cement Co. v. Nebraska Department of Revenue" on Justia Law