Douglas County Board of Equalization tables one tax-penalty protest, denies others over late personal-property filings

The Douglas County Board of Equalization on Sept. 23 heard protests from businesses and a church over a mandatory 25% late-filing penalty on business personal property taxes and voted to table one protest for two weeks while declining the others.

Douglas County Assessor Mike Goodwillie told the board that Nebraska law imposes a mandatory late-filing penalty for business personal property and that the assessor is authorized to issue estimate assessments when a taxpayer fails to file. "There is also a late filing penalty that is mandatory under 77 12 33.04," he said, and added that "after July 1, property added either through an estimate assessment or a personal property late filed return represents 25% of the taxes due, not the value reported." The assessor said the board's authority to provide relief is limited to penalties that were wrongly applied or incorrectly calculated.

The board considered four protests. The first involved Apostolic Life Center at 4001 South 40 Second Street, which the assessor said is newly located in the Center Mall and had been sent a new-business letter on March 17. The pastor emailed March 27 asking whether the congregation was exempt; assessor staff replied that an exemption application (Form 451) was required but, Goodwillie said, the application was not filed by the June 30 deadline. The assessor said an estimate assessment of about $10,000 was issued and that, at a roughly 2% tax rate, the tax-plus-penalty would be in the low hundreds. Goodwillie told the board he had suggested the congregation work with the assessor's business personal property staff to establish the net book value of equipment such as sound gear and computers but had not received a filing from the church.

The board voted to table the Apostolic Life Center protest for two weeks to allow direct outreach from county staff. The motion to table was made by Commissioner Morgan, seconded by Commissioner Rogers, and passed 5-0.

Two other protests were discussed but, according to Goodwillie, were effectively resolved by taxpayer filings. A business identified in the file as "Aquinas" filed a return reporting $1,964 in value; Goodwillie calculated the tax and penalty and said the business responded that it accepted the calculation and asked how to pay, leading the assessor to recommend dismissal of that protest. Another protested account, Bauer Built, filed a return showing $183,707 in personal property value; Goodwillie described how that filing reduced the assessor's earlier estimate and said he had asked Bauer Built to point to statutory language it had cited but had not received a substantive reply.

The board followed the assessor's recommendations for those two items. Commissioner Morgan moved, and Commissioner Rogers seconded, to decline the protests for the two businesses; the motion passed 5-0.

Goodwillie also described a separate protest by Brower Brothers LLC, which the assessor said had filed late this year after extensive outreach the prior year. The board voted to decline that protest as well. The motion to decline Brower Brothers’ protest was made by Commissioner Rogers, seconded by Commissioner Morgan, and passed 5-0.

Separately, the board took three resolutions together (items F, G and H on the Board of Equalization agenda). Commissioner Rogers moved and Commissioner Morgan seconded a motion to take the resolutions together; the motion passed 5-0.

The board’s decisions reflect the assessor’s explanation that the county’s estimate assessments are intended to prompt filing and that the county has limited authority to forgive penalties except where a penalty was imposed incorrectly. The board scheduled the Apostolic Life Center matter to return in two weeks for further follow-up by county staff.

Details recorded at the meeting show county staff notified the Apostolic Life Center in March, the assessor issued an estimate assessment Sept. 5, and the exemption application deadline was June 30; the board’s two-week tabling gives staff time to contact the congregation and report back.