Request exceeds refund of $99K in county taxes

Most are familiar with the member-owned electric co-op located in Pine Bluffs. The company serves customers in Wyoming, Nebraska and Colorado. According to the Chief Financial Officer (CFO) for the company, Lindsay Forepaugh, Kimball County owes the company $99,634.01 in a refund on the 2015 taxes paid.

Kimball County Assessor, Sherry Winstrom, addressed the commissioners about the issue, during last week’s meeting.

“I have rejected the claim (from High West Energy) on my part, but it’s up to you guys now as to what you are going to do,” Winstrom said.

“They did pay the tax in full amount at the end of December,” explained Kimball County Treasurer Diana Quicke. “So, that’s the problem. If they wouldn’t have paid then we wouldn’t have a problem, because we could have corrected it and not have the schools and everyone return the money to them. And that’s what we will have to do now.”

“As you will see, the amount listed for 2014 in the original schedule is illogically higher than our historical values,” stated Forepaugh in the written request for return.

Forepaugh admits in the request to the county, that the company was at fault, as the error happened within the software program that was used to calculate their property tax evaluations.

As the county assessor, there is an obligation to the public to establish equitable market values and administer proper tax classifications in order to be both fair and thorough.

The refund request included documentation from Forepaugh which showed that there was an obvious miscalculation on the part of the company’s software program and put forward in the letter the clarification of Nebraska Statue #77-1734.01, which states:

“(2) In case of payment made of any property taxes or any payments in lieu of taxes with respect to property as a result of a clerical error or honest mistake or misunderstanding, on the part of a county or other political subdivision of the state or any taxpayer, the county treasurer to whom the tax was paid shall refund that portion of the tax paid as a result of the clerical error or honest mistake or misunderstanding. A claim for a refund pursuant to this section shall be made in writing to the county treasurer to whom the tax was paid within three years after the date the tax was due or within ninety days after filing the amended return or the correction becomes final.”

“(3) Before the refund is made, the county treasurer shall receive verification from the county assessor or other taxing official that such error or mistake was made or the amended return was filed or the correction made, and the claim for refund shall be submitted to the county board. Upon verification, the county board shall approve the claim. The refund shall be made in the manner prescribed in section 77-136.06. Such refund shall not have a dispositional effect on any similar refund for another taxpayer. This section may not be used to challenge the valuation of property, the equalization of property, or the constitutionality of a tax.”

Forepaugh added that the claim was submitted within the appropriate timeframe of the three years after the date the tax was due as noted in the statue and added that it was an “honest mistake.”

When asked if the return of the funds to High West would affect the public schools adversely, KHS Business Manager, Harold Farrar stated, “Any refund of property tax dollars would have an impact on the school system.”

“Depending upon the size of the refund, would determine the overall impact,” he added. “Then the School would have the option to refund in one year or over a period of years if it were large enough to cause a hardship.”

Farrar added that the county would inform the school if High West Energy is owed a refund and that the school would be required to pay their share based on the tax year(s) in question.

“Where Kimball Public Schools is the largest user of property tax within the county, our share would be proportionately larger than other entities within the county,” he said.

Legal council for the board of commissioners, Matt Turin, advised them to table the issue until the next meeting to allow time to gather information needed prior to deciding to deny the claim or accept it.