Supreme Court Reverses Ruling, Saving Kearney County $480K

The Nebraska Supreme Court of Friday reversed a decision by Kearney County District Court Judge Stephen Illingworth from December of 2011. The Supreme Court said that Kearney County did not have to pay back KAAPA Ethanol $480,411.50 in personal property taxes.

KAAPA sought a refund from Kearney County for a portion of its 2006 personal property taxes, alleging the taxes were paid as a result of “an honest mistake or misunderstanding”. KAAPA argued that it had paid taxes twice in 2006 on processing equipment because it was classified by KAAPA as personal property and Kearney County Assessor Linda Larsen had classified it as real property.

This resulted in the Kearney County Board of Supervisors denying the refund request to the Kearney County Treasurer Barb Lynn and KAAPA filed a petition in error with the district court and the county should have to repay a portion back to KAAPA.

The Supervisors retained the services of attorney Charles W. Campbell of Angle, Murphy & Campbell from York to file an appeal with the Nebraska Supreme Court on the county’s behalf.

The Supreme Court documents did indeed say KAAPA did pay in 2006 twice. But in the opinion of the court the refund could not be given back because it was one of law and not fact and the county did not have to refund the twice taxed property.

The full article can be found in the January 30, 2013, edition of the Minden Courier.