Neb. Admin. Code § 316-24-362 — Property Factor; in General

362.01 Property That Is Used; Included. The property factor of the apportionment formula includes all real and tangible personal property owned or rented and used during the tax period. Real and tangible personal property includes land, buildings, machinery, stocks of goods, equipment, and other real and tangible personal property, but does not include coins or currency. 362.01A Property is included in the property factor if it is actually used, is available for use, or capable of being used during the tax period. 362.01B Property held as reserves, standby facilities, or property held as a reserve source of materials must be included in the factor. For example, a temporarily idle plant or raw material reserves not currently being processed are included in the factor. 362.01C Property used remains in the property factor until its permanent withdrawal is established by an identifiable event or the lapse of an extended period of time (normally, five years) during which the property is held for sale. 362.01D Leasehold improvements are property owned by the taxpayer regardless of whether the taxpayer is entitled to remove the improvements or the improvements revert to the lessor upon expiration of the lease. The original cost of leasehold improvements must be included in the factor. 362.02 Property That Is Not Used; Excluded. Property used in connection with producing income that is not subject to apportionment is excluded from the property factor. 362.03 Property Under Construction. Property or equipment under construction during the tax period, except goods in process that will become inventory, are excluded from the factor until the property is actually used. If the property is used while under construction, the value of the property must be included in the property factor to the extent used. (Neb. Rev. Stat. §§ 77-2734.12, 77-2734.15, 77-2734.16, and 77-5803. December 27, 2015.)