Tax refunds on nonirrigated land advanced

Landowners would be eligible for occupation tax refunds under a bill advanced from general file April 4.

Currently, natural resource districts (NRDs) with integrated management plans can levy occupation taxes on irrigated lands. Owners of nonirrigated land can have their land certified as nonirrigated by March 1 each year to receive an exemption from the tax.

LB1125, introduced by Imperial Sen. Mark Christensen, would allow landowners with nonirrigated land to receive a refund of incorrectly levied taxes.

A Natural Resources Committee amendment, adopted 30-0, would establish a formal mechanism for landowners to receive the tax refund. Under the amendment, any acre that is enrolled in a local, state or federal temporary irrigation retirement program that prohibits the application of irrigation water would be exempt from the occupation tax levied during that year.

Under the amendment, any landowner that has been incorrectly taxed may present evidence of nonirrigation to the natural resource district within 12 months after the tax has been levied. If the occupation tax has been levied and paid within the previous year, the landowner would not be eligible for an exemption.

The amendment establishes a sunset date of Oct 1, 2012.

Christensen brought an amendment that would have prohibited districts from providing occupation tax exemptions in certain cases. The amendment failed 7-18.

LB1125 advanced to select file on a 33-0 vote.