Sarpy County upholds assessor's denial of Mills Eternal Family Trust parsonage tax exemption

The Sarpy County Board of Equalization voted March 25 to accept the county assessor's recommendation and deny a tax-exemption application for property owned by the Mills Eternal Family Trust, a trust that sought parsonage status for a residence in Pavilion, Nebraska. The board's decision to accept the assessor's disapproval recommendation passed 5-0.

The issue was whether the residence qualifies as a parsonage exempt from property taxation under Nebraska law and relevant court decisions. William Mills, who identified himself as a representative of the Mills Eternal Family Trust and gave his address as 608 Ruby Road, Pavilion, said the property is a church parsonage and cited Nebraska Supreme Court precedent to support the claim. "A church owned parsonage is exempt from property taxation in Nebraska," Mills told the board, adding that the trust is organized as a Nebraska religious corporation and has IRS recognition.

The board's discussion focused on whether the Mills property fits the legal definition used in prior cases. The county assessor, Dan Pittman, had recommended denial, and one commissioner summarized that the case law cited by the applicant did not clearly match the facts presented. Board members said they were "struggling" with the legal interpretation and whether the property satisfied the statutory and case-law tests for exemption. A member of the board noted that, if the board upheld the denial, the applicant could seek further review (transcript reference to taking the matter to "Turk" for a ruling).

Mills provided the board with the organization's articles of incorporation, which he said were filed Oct. 3, 2019, and described the trust's activities and membership. He said the trust holds regular meetings and that the board of the organization consists of six people (he and his wife plus four others, some of whom live out of state). Mills also described some activity the organization carries out, including donations and support for healthcare workers. Mills said he works full time as a chaplain at Bergen Mercy Medical Center and that his wife is retired.

After public comment closed, Commissioner Warren Mixon moved to accept the assessor's recommendation to deny the exemption and the motion was seconded. The board voted 5-0 to accept the disapproval recommendation; the motion carried.

The board did not adopt any further directive on the property. The applicant was told during the meeting that other appeal avenues may be available following the board's decision.