77-1736.06 Property tax refund; procedure.
77-1736.06. Property taxrefund; procedure.The following procedure shallapply when making a property tax refund:(1) Within thirty days of the entry of a final nonappealableorder, an unprotested determination of a county assessor, an unappealed decisionof a county board of equalization, or other final action requiring a refundof real or personal property taxes paid or, for property valued by the state,within thirty days of a recertification of value by the Property Tax Administratorpursuant to section 77-1775 or 77-1775.01, the county assessor shall determinethe amount of refund due the person entitled to the refund, certify that amountto the county treasurer, and send a copy of such certification to the personentitled to the refund. Within thirty days from the date the county assessorcertifies the amount of the refund, the county treasurer shall notify eachpolitical subdivision, includingany school district receiving a distribution pursuant to section 79-1073 or 79-1073.01, of its respective share of the refund, except thatfor any political subdivision whose share of the refund is two hundred dollarsor less, the county board may waive this notice requirement. Notificationshall be by first-class mail, postage prepaid, to the last-known address ofrecord of the political subdivision. The county treasurer shall pay the refundfrom funds in his or her possession belonging to any political subdivision, including any school district receivinga distribution pursuant to section 79-1073 or 79-1073.01, whichreceived any part of the tax or penalty being refunded. If sufficient fundsare not available or the political subdivision, within thirty days of themailing of the notice by the county treasurer if applicable, certifies tothe county treasurer that a hardship would result and create a serious interferencewith its governmental functions if the refund of the tax or penalty is paid,the county treasurer shall register the refund or portion thereof which remainsunpaid as a claim against such political subdivision and shall issue the personentitled to the refund a receipt for the registration of the claim. The certificationby a political subdivision declaring a hardship shall be binding upon thecounty treasurer;(2) The refund of a tax or penalty or the receipt for theregistration of a claim made or issued pursuant to this section shall be satisfiedin full as soon as practicable and in no event later than five years fromthe date the final order or other action approving a refund is entered. Thegoverning body of the political subdivision shall make provisions in its budgetfor the amount of any refund or claim to be satisfied pursuant to this section.If a receipt for the registration of a claim is given:(a) Such receipt shall be applied to satisfy any tax leviedor assessed by that political subdivision next falling due from the personholding the receipt after the sixth next succeeding levy is made on behalfof the political subdivision following the final order or other action approvingthe refund; and(b) To the extent the amount of such receipt exceeds the amountof such tax liability, the unsatisfied balance of the receipt shall be paidand satisfied within the five-year period prescribed in this subdivision froma combination of a credit against taxes anticipated to be due to the politicalsubdivision during such period and cash payment from any funds expected toaccrue to the political subdivision pursuant to a written plan to be filedby the political subdivision with the county treasurer no later than thirtydays after the claim against the political subdivision is first reduced byoperation of a credit against taxes due to such political subdivision.If a political subdivision fails to fully satisfy the refundor claim prior to the sixth next succeeding levy following the entry of afinal nonappealable order or other action approving a refund, interest shallaccrue on the unpaid balance commencing on the sixth next succeeding levyfollowing such entry or action at the rate set forth in section 45-103;(3) The county treasurer shall mail the refund or the receiptby first-class mail, postage prepaid, to the last-known address of the personentitled thereto. Multiple refunds to the same person may be combined intoone refund or credit. If a refund is not claimed by June 1 of the year followingthe year of mailing, the refund shall be canceled and the resultant amountcredited to the various funds originally charged;(4) When the refund involves property valued by the state,the Tax Commissioner shall be authorized to negotiate a settlement of theamount of the refund or claim due pursuant to this section on behalf of thepolitical subdivision from which such refund or claim is due. Any politicalsubdivision which does not agree with the settlement terms as negotiated mayreject such terms, and the refund or claim due from the political subdivisionthen shall be satisfied as set forth in this section as if no such negotiationhad occurred;(5) In the event that the Legislature appropriates state fundsto be disbursed for the purposes of satisfying all or any portion of any refundor claim, the Tax Commissioner shall order the county treasurer to disbursesuch refund amounts directly to the persons entitled to the refund in partialor total satisfaction of such persons' claims. The county treasurer shalldisburse such amounts within forty-five days after receipt thereof; and(6) If all or any portion of the refund is reduced by wayof settlement or forgiveness by the person entitled to the refund, the proportionateamount of the refund that was paid by an appropriation of state funds shallbe reimbursed by the county treasurer to the State Treasurer within forty-fivedays after receipt of the settlement agreement or receipt of the forgivenrefund. The amount so reimbursed shall be credited to the General Fund. SourceLaws 1991, LB 829, § 15; Laws 1992, LB 1063, § 138; Laws 1992, Second Spec. Sess., LB 1, § 111; Laws 1993, LB 555, § 1; Laws 1995, LB 490, § 167; Laws 2007, LB334, § 82; Laws 2008, LB965, § 18; Laws 2010, LB1070, § 3.Effective Date: April 6, 2010