Sarpy County denies two tax-exemption requests from 50 Mile March Foundation

The Sarpy County Board of Equalization and later the Board of Commissioners denied two tax-exemption and waiver requests from the 50 Mile March Foundation, a Bellevue-based nonprofit, after county staff concluded the property did not qualify and the organization missed statutory filing deadlines.

The denial matters because the applications sought property-tax-exempt status for parcels used in part as boat and RV storage and small rental units; county staff said those uses do not meet the statutory "exclusive use" test required for the exemption. County attorneys also advised the boards they had no legal authority to extend the 2024 filing deadline and that the 2025 extension window had closed when the application arrived late.

At a public hearing on the parcels (011046945 and 011046929) the foundation’s representatives, including Jay Morales and Brianne Schuler, described the organization’s mission to provide veteran housing and community services and said revenue from on-site rentals or storage is used to support programming. Morales said the organization had spent substantial sums on planning and that the property currently supports limited programming and volunteer activity while the group develops a longer-term project.

Deputy Assessor Jackie Moorhead told the board the property must pass a five-part test for the exemption and that "currently it does not pass the exclusive use. The property must be used exclusively for the purposes of the qualifying organization, which right now as of January 1, it is an RV park storage facility. So that does not qualify for the exemption." County staff also noted the parcel was purchased in December 2024 and no timely application was received for 2024 (the deadline for filing for 2024 was Dec. 31, 2023). The county attorney added that there is no statutory mechanism to extend the 2024 filing deadline and the procedure to extend the 2025 application required filing by July 1; the county received the 2025 paperwork on July 3.

Board members asked questions about how the foundation uses the site and whether revenue from storage or leases could be treated as donations or incidental income. County legal counsel said the relevant standard looks to whether the "predominant or primary purpose of the property is for that charitable organization" and recommended the group seek outside counsel if it wants to restructure operations to meet NDOR (Nebraska Department of Revenue) guidance on permissive uses.

Commissioners voted to accept the assessor’s recommendation of denial for the first set of parcels; the motion carried 3–2, with Commissioners Kelly and Warren recorded as voting against. The follow-up hearing on a second year’s request produced the same outcome (denial of the exemption), again carried 3–2 with Kelly and Warren voting no. County staff noted the 2024 tax bill for the parcels was about $9,000, which the foundation said it would pay but called an administrative burden.

County officials said their explanations and guidance during the hearing were intended to help the foundation refile under the correct legal framework in future years. The boards closed the public hearings after the votes; the county advised the group to consult legal counsel and the assessor’s office about property-use changes that might satisfy the exemption criteria in future filings.

The foundation representatives said they understood and will pursue counsel and operational changes; they also emphasized that current on-site revenue is a small portion of their overall funding and is reinvested into the nonprofit’s programs.

Votes at a glance: two tax-exemption applications (parcels 011046945 and 011046929) were denied after county staff found the property did not meet exclusive-use standards and statutory filing deadlines were missed. Both denials carried 3–2 (Kelly and Warren recorded as voting no).