350 Neb. Admin. Code, ch. 45, § 002

Current through September 17, 2024
Section 350-45-002 - DEFINITIONS
002.01 Average assessed value of single-family residential property

Average assessed value of single-family residential property means the average assessed value for all single-family residential properties in the county for the year for which the exemption is requested.

002.02 Change in status

Change in status means a change in: the name of the owner-occupant of the homestead; place of residence; marital status; veteran status; rating by the United States Department of Veterans Affairs; disability status; or any other change that would affect the qualification for or type of exemption granted, except the income status determined by the State Tax Commissioner.

002.03 Closely related

Closely related means the relationship of a brother, sister, child, or parent to another owner-occupant of a homestead.

002.04 Exempt amount is the amount of the property value that may be exempt from the property tax. The exempt amount depends upon the basis of the exemption and the county of residence. The exempt amount shall be the lesser of the taxable value of the homestead or the following amount:
002.04A For a qualified claimant, the larger of one hundred percent of the average assessed value of a single-family residential property in the claimant's county, or forty thousand dollars.
002.04B For a qualified disabled claimant, qualified veteran claimant, or qualified veteran's surviving spouse claimant, the larger of one hundred twenty percent of the average assessed value of a single-family residential property in the claimant's county, or fifty thousand dollars.
002.05 Home - for paraplegic or multiple amputee veterans only - means one housing unit and necessary land not to exceed one acre that is occupied by the veteran or his or her unmarried surviving spouse when the veteran or surviving spouse is the owner of record from January 1 through August 15 of each year.
002.06 Homestead

Homestead means the following residences, if actually occupied by a natural person who is the owner of record from January 1 through August 15 of each year, or is occupied by the surviving spouse and minor children, if any, during the year of the owner's death:

002.06A A residence or mobile home, and the contiguous land surrounding it, not exceeding one acre. A residence may include a detached garage and one outbuilding, for example, a tool shed;
002.06B A residence or mobile home located on leased land;
002.06C A mobile home includes every transportable or relocatable device whether or not it is permanently attached to real estate, but does not include any cabin trailer registered for highway use; or,
002.06D A residential unit in a dwelling complex, not including common areas, if the record title owner of the complex is a nonprofit corporation, and if the purchaser, for fair market value, has a life tenancy in a taxable unit of the dwelling complex, and is entitled to exclusive right of occupancy of that unit for life.
002.07 Household income

Household income means the total federal adjusted gross income, as defined in the Internal Revenue Code (IRC), plus:

(1) any Nebraska adjustments increasing the total federal adjusted gross income;
(2) any interest and dividends received by the owner for obligations of the State of Nebraska or any Nebraska political subdivision, authority, commission, or instrumentality to the extent excluded in the computation of gross income for federal income tax purposes; and
(3) any retirement benefits paid by the Social Security Administration or the Railroad Retirement Board for the taxable year immediately prior to the year for which the claim for exemption is made.
002.07A If the claimant was married, then the household income will include the income of the spouse.
002.07B Household income includes the income of any additional owner-occupants who occupied the homestead during any part of the taxable year immediately prior to the year the exemption is claimed. The holder of a remainder interest under a life estate is not an owner.
002.07C Household income may be reduced by medical expenses paid by the claimant, spouse, or additional owners that are in excess of four percent of the household income prior to the deduction for medical expenses. In general, medical expenses mean expenses that are eligible as medical expenses for itemized deductions for federal income tax purposes. Medical expenses, for the purposes of this section, include the costs of health insurance premiums, goods and services purchased from a person licensed under Chapter 71, article 1 or 47, or a health care facility or health care service licensed under the Health Care Facility Licensure Act for purposes of restoring or maintaining health, including insulin, and prescription medicines. Medical expenses do not include expenses for nonprescription medicines, whether or not prescribed.
002.07C(1) Prescription medicine means any drug or medicine requiring a prescription under the IRC definitions.
002.08 Marital status shall be the claimant's status in the year immediately prior to the year the exemption is claimed:
002.08A Single means a person who would file a federal income tax return as single or head-of-household if required to file a return.
002.08B Married means a person who would file a federal income tax return as married filing jointly or married filing separately if required to file a return.
002.09 Maximum value is the highest value of the homestead at which the full exempt amount is possible before the consideration of the income of the claimant.
002.09A For a qualified claimant, the maximum value is 200% of the average assessed value of a single-family residential property in the claimant's county, or $95,000, whichever is greater.
002.09B For a qualified disabled claimant, qualified veteran claimant, or qualified veteran's surviving spouse claimant, the maximum value is 225% of the average assessed value of a single-family residential property in the claimant's county, or $110,000, whichever is greater.
002.10 Medical condition

Medical condition means a disease, physical ailment, or injury requiring inpatient care in a hospital, hospice, or residential care facility, or involving any period of incapacity due to a condition for which treatment may not be effective.

002.11 Multiple amputee

Multiple amputee means a veteran who has undergone amputation of more than one extremity precluding locomotion (not able to walk) without the aid of braces, crutches, canes, wheelchairs, or artificial limbs, or the amputation of both upper extremities.

002.12 Owner

Owner means a natural person, or surviving spouse, who either:

002.12A Holds the recorded fee simple title to the homestead; is in possession of and resides in a homestead under a bona fide contract to purchase or a deed of conveyance; resides in a homestead and holds a life estate, which is an estate limited in time by deed, will, or settlement; is one of the joint tenants or tenants in common of a homestead; resides in a mobile home and holds a title or bill of sale; is a resident of a dwelling complex, when the record title owner is a nonprofit corporation, who has, by purchase for fair market value, secured a life tenancy in a taxable unit of the complex (the resident must provide a copy of the contract as proof of life tenancy); or is a beneficiary of a trust of which the trustee is the record title owner and the beneficiary-occupant either has:
002.12A(1) A specific right to occupy the premises as stated in the trust agreement;
002.12A(2) The right to amend or revoke the trust to obtain power of occupancy or of title; or
002.12A(3) The power to withdraw the homestead premises from the trust and place the record title in such occupant's name.
002.12B Owner also means a natural person, or surviving spouse, who is a resident of any of the homesteads listed in §§002.12A above; however, if the deed, trust instrument, contract, or memorandum showing proof of ownership has not been recorded as a matter of public record as of January 1 of the year for which the homestead exemption application is made, a copy of the instrument dated prior to January 1 of the year for which the homestead exemption application is made, must be attached to the application.
002.13 Paraplegic

Paraplegic means a veteran who is paralyzed in both legs precluding locomotion, and is not able to walk without the aid of braces, crutches, canes, or a wheelchair.

002.14 Prosthetic device

Prosthetic device means a device that permanently or temporarily replaces a missing part or a nonfunctioning part of the human body.

002.15 Qualified claimant

Qualified claimant means an owner of a homestead who was 65 years of age or older before January 1 of the year for which the claim is made, and whose household income, as determined by the Tax Commissioner, is less than the maximum amount.

002.16 Qualified disabled claimant

Qualified disabled claimant means an owner of a homestead who was disabled on or before January 1 of the year for which the claim is made, and whose household income, as determined by the Tax Commissioner, is less than the maximum income amount; and 002.16A Who has a permanent physical disability and has lost all mobility precluding locomotion without the regular use of a mechanical aid or prosthetic device. (A cane used for blindness does not qualify); who has a permanent partial disability of both arms in excess of 75%; or, who has undergone amputation of both arms above the elbow.

002.17 Qualified veteran claimant
002.18 Qualified veteran's surviving spouse claimant

Qualified veteran's surviving spouse claimant means an owner of a homestead who, on or before January 1 of the year for which the claim is made:

002.18A Is the unremarried widow of a serviceman or widower of a servicewoman who died while on active duty during the dates listed in Neb. Rev. Stat. § 80-401.01 and whose household income is less than the maximum income amount determined by the Tax Commissioner;
002.18B Is the unremarried widow of a serviceman or widower of a servicewoman, including those who served during dates not listed in Neb. Rev. Stat. § 80-401.01, whose death while on active duty was service-connected and whose household income is less than the maximum income amount determined by the Tax Commissioner;
002.18C Is the unremarried widow or widower of any veteran, including those who served during dates not listed in Neb. Rev. Stat. § 80-401.01, who died because of a service-connected disability and whose household income is less than the maximum income amount determined by the Tax Commissioner;
002.18D Is the unremarried widow or widower of a veteran whose home was substantially contributed by the U.S. Department of Veterans Affairs; or
002.18E Is the unremarried widow or widower of a veteran certified as drawing compensation because of 100% disability from the U.S. Department of Veterans Affairs and whose household income is less than the maximum income amount determined by the Tax Commissioner.
002.18F If a widow or widower subsequently remarries and the subsequent marriage terminates, the widow or widower does not return to their status as unremarried.
002.19 Residence

Residence means all, or any portion, of a building, mobile home, or unlicensed cabin trailer occupied by the owner as his or her primary home.

002.19A An applicant residing in a nursing home may qualify for a homestead exemption if he or she intends to return to the residence, the household furnishings have not been removed, and the home has not been rented or leased. Placing the homestead property on the real estate market does not disqualify the applicant until the property is sold.
002.20 Single-family residential property

Single-family residential property means all real property with dwellings designed for occupancy by one family, or duplexes designed for occupancy by two families.

002.21 Veteran

Veteran means a person who has been on active duty, for other than training purposes, in the U.S. Armed Forces, or a citizen of the U.S. who served with the military forces of a government allied with the U.S. and, who has received an honorable or general (under honorable conditions) discharge, or the equivalent. Unless otherwise specified, a veteran must also have served during the dates listed:

002.21A April 21, 1898 to July 4, 1902 (Spanish-American War); April 6, 1917 to November 11, 1918 (World War I); December 7, 1941 to December 31, 1946 (World War II); June 25, 1950 to January 31, 1955 (Korean War); August 5, 1964 to May 7, 1975 (Vietnam War) or in the Republic of Vietnam between February 28, 1961 and May 7, 1975; August 25, 1982 to February 26, 1984 (Lebanon); October 23, 1983 to November 23, 1983 (Grenada); December 20, 1989 to January 31, 1990 (Panama); Persian Gulf War beginning August 2, 1990; or the Global War on Terror beginning September 14, 2001. Service dates may be certified by the county veteran service officer or by discharge documents.

350 Neb. Admin. Code, ch. 45, § 002