Fountain II v. Douglas Cty. Bd. of Equal.
999 N.W.2d 135
Neb.2024Background
- Fountain II, a commercial real estate development company (owned by R&R Realty Group), owned a 19.9-acre parcel in Douglas County, Nebraska, originally used for farming under a farm lease.
- The property previously qualified for "greenbelt" (special agricultural valuation) status but was disqualified for 2018 following an assessor's observation of development-related activity (surveyor's stakes, grading).
- R&R applied for reinstatement of greenbelt status in May 2018, arguing the land would be planted with alfalfa post-grading under a farm lease effective January 1, 2018.
- The county assessor denied the application, stating the land was not used primarily for agriculture as of 2018. R&R's protest to the Douglas County Board of Equalization was denied; the Tax Equalization and Review Commission (TERC) affirmed.
- Witness testimony confirmed the property was fallow at the start of 2018 post-soybean harvest, and alfalfa was eventually planted in September. TERC found this was too late to satisfy eligibility for the 2018 tax year.
- The Nebraska Supreme Court reviewed whether the eligibility for greenbelt must be judged as of January 1, 2018, and whether there was competent evidence to deny greenbelt status for that year.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper eligibility date for greenbelt status | Eligibility is as of Jan 1 | Eligibility can be up to July 15 | Eligibility must be judged as of Jan 1 (statutory mandate) |
| Evidence of primary agricultural use on Jan 1 | Land was still stubble field; farm lease in effect | Development actions show non-ag use | Insufficient evidence to deny ag use as of Jan 1 |
| Relevance of post-Jan 1 actions (like grading/planting date) | Only Jan 1 condition matters | Actions after Jan 1 show intent for development | Only use as of Jan 1 is relevant; later actions not determinative |
| Effect of not protesting 2017 disqualification | Statutes allow fresh application | Failure to protest shows no intention for ag use | Not protesting does not bar later application; not dispositive |
Key Cases Cited
- Agena v. Lancaster Cty. Bd. of Equal., 276 Neb. 851 (Explains calculation of primary agricultural use for greenbelt eligibility and TERC authority)
- Burdess v. Washington Cty. Bd. of Equal., 298 Neb. 166 (Describes greenbelt statutes as protecting ag landowners from development pressures)
- Lincoln Cty. Bd. of Equal. v. Western Tabor Ranch Apts., 314 Neb. 582 (Reiterates review standards and evidence presumptions for county board decisions)
- Cain v. Custer Cty. Bd. of Equal., 298 Neb. 834 (Defines competent evidence in property tax proceedings)