County tax entities must repay $117,369 collected in 2017

When the Nebraska Supreme Court ruled Dec. 6 that Perkins County over-valued the 2017 assessed valuation of the Madrid Ethanol by $9 million, taxing entities in the county knew they faced repayment of taxes already collected and spent. 

The situation arose after the Madrid plant contested the valuation. After their protest was denied at the county level by the Board of Equalization, they appealed to the Tax Equalization and Review Commission.

TERC affirmed their protest, which was then appealed by Perkins County. The Supreme Court took over the case and affirmed that Perkins County had not shown just cause for a $16.36 million valuation of the plant. 

Thus, the valuation of the plant for the 2017 tax year stands at $7,336,042. That difference in valuation of $9,028,726 means taxing entities must repay $117,369.38. 

Wheatland Industries, owner of the plant, will receive $109,428.60 after repaying the state for $7,940.78 they received in incentive tax credits.

Five years to repay

Perkins County Schools will repay the largest amount of tax money—$44,252.13. 

The Village of Madrid will  be hit with a repayment of $31,363.45. 

Perkins County will take the next biggest hit with $19,775. 17 to be repaid. 

Due to the hardship, taxing entities will have five years in which to repay the funds. 

PCS Superintendent Phillip Picquet said it’s key to be able to repay it over five years. He noted it would present a budget issue if they would have to pay all $44,252.13 this year. 

The biggest budget impact will likely be felt by the Village of Madrid. Even though they have five years to repay, they can only spread that cost across $31.9 million of valuation compared to the school’s $1.1 billion valuation in 2017.

2018, 2019 under appeal

This issue could string out for several more years. Wheatland Industries has already appealed the plant’s valuation for the 2018 and 2019 tax years, also at $16,364,768, to TERC. 

It’s unknown how soon TERC will hear those cases.

Perkins County has already been working with appraisers to substantiate the county assessor’s basis for higher valuations on the plant.

If the county is unsuccessful in that effort, the plant will be entitled to more refunds for taxes paid those two years.