Justia Tax Law Opinion Summaries

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

The State of Nebraska Accountability and Disclosure Commission issued an advisory opinion answering the question of whether Omaha firefighters can engage in a campaign to raise funds for the Muscular Dystrophy Association (MDA) during on-duty time paid for with taxpayer funds or using city-owned uniforms and equipment. The Commission stated that such activities violated the Nebraska Political Accountability and Disclosure Act (NPADA). Appellants, the Nebraska Professional Firefighters Association, its president, and the MDA, filed an action against the Commission, asking the district court to declare the advisory opinion invalid. The district court dismissed the case, determining that it lacked subject matter jurisdiction to review a Commission advisory opinion. The court of appeals dismissed the appeal for lack of jurisdiction. The Supreme Court affirmed, holding that the district court correctly concluded that it lacked subject matter jurisdiction, and the court of appeals correctly dismissed the appeal. View "Engler v. State" on Justia Law

Appellants in this case operated restaurants in the City of Omaha subject to a municipal ordinance which became effective on October 1, 2010. The ordinance declared itself to be an "occupation tax" on restaurants and drinking places in the City in the amount of 2.5 percent of gross receipts. Appellants filed an action for declaratory judgment and injunctive relief against the City, asking the district court to declare the ordinance unconstitutional, invalid, illegal, and unenforceable. The district court granted summary judgment in favor of the City. The Supreme Court affirmed, holding (1) because the legal incidence of the tax fell on the business and not the customer, the restaurant tax was an occupation tax, not an illegal sales tax; (2) the ordinance did not violate limitations in the Nebraska Liquor Control Act on the amount of occupation tax for liquor licensees; and (3) the ordinance did not violate the constitutional prohibition against special legislation. View "Anthony Inc. v. City of Omaha" on Justia Law

The underlying cases here involved Randy and Helen Strodes' unsuccessful challenge to the valuation of certain property located in Saunders County. The court of appeals concluded that the Strodes' appeals were not timely filed and dismissed their appeals for lack of jurisdiction. The jurisdictional issued hinged on whether the Strodes' motions for rehearing filed before the Tax Equalization and Review Commission (TERC) were timely filed and therefore tolled the time during which the Strodes could thereafter petition the court of appeals to judicially review the TERC's actions. The Supreme Court reversed, holding that the motions were timely filed before the TERC, and therefore, the time to petition to the court of appeals was tolled, and the court had jurisdiction over the appeals. Remanded to the TERC with directions to consider the merits of the Strodes' motions for rehearing. View "Strode v. Saunders County Bd. of Equalization" on Justia Law

On April 30, 2010, Midwest Renewable Energy and Marquette Equipment Finance (Marquette) filed a Nebraska personal property return that reported a value of zero dollars for three items involving ethanol manufacturing equipment. The tax assessor determined that the taxable value of the property should have been $4,170,149 and changed the value on the return. Marquette appealed the action of the assessor. On July 19, 2010, the county board of equalization upheld the assessor's action. Republic Bank, which had rights in the property, did not receive a copy of the Board's decision from Marquette until August 20, 2010. Republic subsequently appealed. The Nebraska Tax Equalization and Review Commission (TERC) received the appeal on August 23, 2010. TERC dismissed the appeal as untimely under Neb. Rev. Stat. 77-12.33.06(4) because it was filed more than thirty days after the decision of the county board of equalization. The Supreme Court affirmed, holding that TERC correctly concluded that it lacked subject matter jurisdiction to consider the appeal, as it was not timely filed under section 77-1233.06(4). View "Republic Bank v. Bd. of Equalization" on Justia Law

Midwest Renewable Energy and Marquette Equipment Finance (Marquette) executed a master lease agreement for certain manufacturing equipment, including two distillation columns. Later, Marquette assigned its interest in the lease to Prime Alliance Bank and agreed to file personal property tax returns on the equipment as an agent for Prime Alliance. On April 30, 2010, Marquette filed a personal property return with the county assessor that showed the taxable value of the two distillation columns as $0. The assessor changed the value of the columns to $776,832. Prime Alliance challenged the assessor's change, and, on July 19, 2010, the county Board of Equalization upheld the change. On August 23, 2010, Prime Alliance filed an appeal from the order to the Nebraska Tax Equalization and Review Commission (TERC). TERC dismissed the appeal as untimely. The Supreme Court affirmed, holding that TERC did not err in dismissing the appeal for lack of subject matter jurisdiction, as the appeal was not timely filed under Neb. Rev. Stat. 77-1233.06(4). View "Prime Alliance Bank v. Bd. of Equalization" on Justia Law

Dwight Trumble owned property in Sarpy County and paid two levies for the support of school districts in the Learning Community of Douglas and Sarpy Counties (Learning Community). Trumble subsequently brought suit under Neb. Rev. Stat. 77-1735 against the school districts in the Learning Community, claiming the levies were unconstitutional. The district court determined it did not have jurisdiction and dismissed the case. The Supreme Court affirmed, holding (1) a suit to recover unconstitutional taxes cannot be brought under section 77-1735; (2) Trumble filed suit outside the tax year in which the challenged taxes were levied or assessed, so the district court did not have jurisdiction under Neb. Rev. Stat. 25-21,149; and (3) since the district court lacked jurisdiction, it properly dismissed the action. View "Trumble v. Sarpy County Board" on Justia Law

In 2010, the Learning Community of Douglas and Sarpy Counties established a common levy for the general fund budgets of its eleven member school districts. After Sarpy County levied this tax on real property, three taxpayers brought an action in the district court seeking a declaration that the tax was unconstitutional. The Learning Community, each of its member school districts, and the Sarpy County treasurer were named defendants in the action. The district court declared the Learning Community's common levy was unconstitutional as a property tax for state purposes. The Learning Community and two of its member school districts appealed. The Supreme Court reversed, holding (1) Neb. Rev. Stat. 77-34442(2)(b), which provides that a learning community may establish a levy for general fund budgets of its member school districts, serves a predominantly local purpose, not a state purpose; and (2) because all members of the learning community received benefits from taxes levied and the levy was uniform throughout the community, there was no violation of either the Nebraska Constitution's prohibition of commutation or the uniformity clause. Remanded with directions to dismiss. View "Sarpy County Farm Bureau v. Learning Cmty. of Douglas & Sarpy Counties" on Justia Law