Neb. Admin. Code § 350-11-009.09 — Examples of recapture tax calculation

This process is applicable only to the agricultural or horticultural land on any parcel that rec eived the special valuation assessment. Any nonagricultural or nonhorticultural land and improvements are not part of this process. Example A On September 17, 2007, 160 acres of unimproved agricultural land became disqualified and no longer will be eligible to receive the agricultural or horticultural land special valuation assessment. The additional taxes and interest that became due on September 17, 2007 for any applicable previous years were paid on September 17, 2007 The following is the history of the valuations and consolidated tax rates applied to this land for the current year and the applicable past years. 2007 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00 Recapture Valuation Assessment $600,000.00 (75% of Recapture Valuation) Tax due date will be 12/31/07 2006 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00 Recapture Valuation Assessment $640,000.00 (80% of Recapture Valuation) 2006 Additional Taxable Valuation $512,000.00 = ($640,000.00 - $128,000.00) 2006 Consolidated Tax Rate .02 Tax due date was 12/31/06 2005 Special Valuation Assessment $112,000.00 Recapture Valuation $720,000.00 Recapture Valuation Assessment $576,000.00 (80% of Recapture Valuation) 2005 Additional Taxable Valuation $464,000.00 = ($576,000.00 - $112,000.00) 2005 Consolidated Tax Rate .0215 Tax due date was 12/31/05 Calculation of Additional Real Property Taxes and Interest 2007 For 2007, the taxable valuation for the 160 acres will be the recapture valuation assessment of $600,000.00 No additional taxes and interest will be collected for the current year because of disqualification. Nebraska Department of Revenue Title 350, Chapter 11, Rev. 3/15/09 Property Assessment Division Agricultural or Horticultural Land Special Valuation Regulations 16 2006 Additional real property taxes = $512,000.00 x .02 = $10,240.00. Additional interest @ .06 from the tax due date 12/31/06 through 9/17/07 = 260 days. $10,240.00 x .06 = $614.40 ÷ 365 = $1.68 x 260 = $436.80 . Total additional taxes and interest $10,240.00 + $436.80 = $10,676.80 . If the additional taxes and .06 interest had not been paid on September 17, 2007 they would continue to accrue interest at $1.68 per day thru November 16, 2007 after which interest of .14 would be charged against the total additional taxes and interest until paid. 2005 Additional real property taxes = $464,000.00 x .0215 = $9,976.00. Additional interest @ .06 from the tax due date 12/31/05 through 9/17/07 = 625 day. $9,976.00 x .06 = $598.56 ÷ 365 = $1.64 x 625 = $1,025.00. Total additional taxes and interest $9,976.00 + $1,025.00 = $11,001.00. If the additional taxes and .06 interest had not been paid on September 17, 2007 they would continue to accrue interest at $1.64 per day thru November 16, 2007 after which interest of .14 would be charged against the total additional taxes and interest until paid. 2004 There are no additional taxes and int erest collected for year 2004 on land that became disqualified for special valuation assessment at any time in 2007. Example B On April 25, 2008, 160 acres of unimproved agricultural land became disqualified and no longer was eligible to receive the agricultural or horticultural land special valuation assessment. The additional taxes and interests for 2007 that became due on April 25, 2008 were paid on September 17, 2008. There are no additional taxes and interest for 2006. The following is the history of the valuations and consolidated tax rates applied to this land for the current year and the past three years. 2008 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00 2008 Recapture Valuation Assessment $600,000 (75% of Recapture Valuation) Tax due date will be 12/31/08 2007 Special Valuation Assessment $128,000.00 Recapture Valuation $800,000.00 2007 Recapture Valuation Assessment $600,000 (75% of Recapture Valuation) 2007 Additional Taxable Valuation $472,000.00 = ($600,000.00 - $128,000.00) 2007 Consolidated Tax Rate .02 Tax due date was 12/31/07 Calculation of Additional Real Property Taxes and Interest 2008 For 2008, the taxable valuation for the 160 acres will be the recapture valuation assessment of $600,000.00. No additional taxes and interest will be collected for the current year because of disqualification . Nebraska Department of Revenue Title 350, Chapter 11, Rev. 3/15/09 Property Assessment Division Agricultural or Horticultural Land Special Valuation Regulations 17 2007 Additional real property taxes = $472,000.00 x .02 = $9,440.00. Additional interest @ .06 from the tax due date 12/31/07 thru 6/24/08 = 175 days. $9,440.00 x .06 = $566.40 ÷ 365 = $1.55 x 175 = $271.25. Additional interest @ .14 from 6/25/08 thru 9/17/08 = 85 days. $9,440.00+ $271.25 = $9,711.25 x .14 = $1,359.58 ÷ 365 = $3.73 x 85 = $317.05 Total additional taxes and interest $9,440.00 + $271.25 + $317.05 = $10,028.30. If the additional taxes and interest had not been paid on September 17, 2008, they would continue to accrue interest at $3.73 per day, until paid. 2006 There are no additional taxes and interest collected for 2006 on land that became disqualified for special the valuation assessment in 2008. Starting January 1, 2009 and forward, no additional taxes and interest will be collected on land that becomes disqualified for the special valuation assessment. (Neb. Rev. Stat. Sections 77-702, 77-1344 and 77-1346, R.S. Supp., 2007.)