Tax relief available to Nebraskans following Arbor Day tornadoes, other natural disasters
A handful of natural disasters this spring across Nebraska could lead to specific tax reprieve or property tax relief, if a storm destroyed a taxpayer’s property. State Tax Commissioner James Kamm has announced that he is waiving penalties and interest for late income tax returns or tax payments for those directly impacted by the Arbor Day tornadoes in eastern Nebraska. This is an automatic waiver for taxpayers whose home or business is within 14 ZIP codes that have likely experienced significant damage if they file and pay by Sept. 3. Additional tax relief may be available for taxpayers outside of these ZIP codes. Property tax relief is also available for those whose property was destroyed by any "calamity" between Jan. 1 and July 1, such as tornadoes, earthquakes, floods, fires or other disasters. The damage must exceed 20% of the current assessed property value. Taxpayers can request that their property be reassessed through a Form 425, which must be filed before July 15 to county assessor and county clerk. State Sen. Steve Erdman of Bayard introduced legislation in 2019 to lower property values after a disaster, which he believes is meant to bring values down to what is left standing after the disaster.
Publicados : um ano atrás por Zach Wendling no Weather Environment
LINCOLN, Neb. (KOLN) - A handful of natural disasters this spring across Nebraska could lead to specific tax reprieve or property tax relief, if a storm destroyed a taxpayer’s property.
State Tax Commissioner James Kamm announced Friday he is waiving penalties and interest for late income tax returns or tax payments for those directly impacted by the Arbor Day tornadoes in eastern Nebraska. Returns and payments were due April 25, but Kamm is delaying due dates when those forms are due until Sept. 3.
An automatic waiver of penalties and interest will be granted to any taxpayer whose home or business is within 14 specific ZIP codes identified by the Nebraska Emergency Management Agency to have most likely experienced significant damage, if they file and pay by Sept. 3.
“The DOR recognizes the difficulties that these catastrophic natural disasters present with regard to tax responsibilities and wants to help those adversely impacted, including those outside of the identified areas,” the Nebraska Department of Revenue wrote in a news release.
For affected taxpayers whose businesses or homes are outside the NEMA-identified areas, additional relief might be available depending on specific circumstances.
Taxpayers in those cases should complete a Request for Abatement of Penalty (Form 21) or Request for Abatement of Interest (Form 21A) explaining the storm’s impact on them and mail the form to the Revenue Department.
Property tax relief could also be available for taxpayers whose property was destroyed by any “calamity” between Jan. 1 and July 1, such as by tornadoes, earthquakes, floods, fires or other disasters. The damage must exceed 20% of the current assessed property value as determined by the county assessor.
Destruction can’t include damage inflicted by the property owner. Crops or livestock are not counted.
Owners of destroyed real property can request that their property be reassessed through a Form 425, which must be filed before July 15 to the county assessor and county clerk. A separate form must be submitted for each parcel of property that is destroyed.
Taxpayers who disagree with a county board of equalization’s decision could protest it, and, if still unsatisfied, could appeal to the Tax Equalization and Review Commission.
State Sen. Steve Erdman of Bayard, who ushered through the destroyed property provisions in 2019, said the legislation is meant to bring values down to what is left standing after a disaster. He gave as an example a $1 million home down to $100,000 if that’s the remaining value.
“That would remain that way until they rebuilt the property, so if they don’t get it rebuilt til ‘25, there’ll be no tax except for the tax on the land,” Erdman told the Nebraska Examiner on Friday.
Erdman said that in 2007 or 2008, while he was serving as a county commissioner, a woman’s house burned down on Jan. 2, one day after property values were assessed.
The woman protested the evaluation, Erdman explained, but “the county assessor informed us that the statute says that anything that is on the property on January 1(as) of 12:01 a.m. is taxed for the whole year, even if it burns down at 12:02.”
“I thought that was inappropriate that we would tax somebody for something if they have no value or use for, or can’t use,” Erdman said. “I thought if I ever get a chance, I’m going to pass legislation to fix that.”
In 2019, amid major floods statewide, Erdman did just that in Legislative Bill 512, which passed 45-0.
Nebraska Examiner is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Nebraska Examiner maintains editorial independence. Contact Editor Cate Folsom for questions: [email protected]. Follow Nebraska Examiner on Facebook and Twitter.
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Tópicos: Tornadoes, Environment-ESG