Tax correction leaves county, local entities on hook for $121K

A $6.6 million change in a property valuation means Cheyenne County and 15 other political subdivisions – such as schools and fire districts – must repay $121,700 in tax dollars already collected.

The Cheyenne County Board of Commissioners was notified of the change at its meeting on Tuesday. The county alone must repay $31,000.

After Frontier Pipeline protested the valuation assessed on its property in 2014, the state recalculated the numbers and issued a certified value of $1 million – significantly less than the original value of $7.6 million.

Cheyenne County Assessor Louella Pippitt said the valuation of the property is centrally assessed by the state. She was notified of the recertified valuation earlier this month.

Because the change affects the value determined in 2014, it has already been billed and collected, she said.

“It’s quite a difference in tax money,” Pippitt added.

Cheyenne County Treasure Diane Scott explained both the original and revised valuations were determined by the Nebraska Department of Revenue and not the county.

“Even though it happened at the state level, unfortunately it’s going to affect a lot of people in Cheyenne County,” she said.

Scott now has 30 days to notify in writing all the entities that must return tax dollars already collected. The entities will then have 30 days to determine if they want to claim a hardship – which would allow them five years to return to funds. The money can either be paid back or deducted from future collections the county pays each month.

“We don’t have a lot of corrections in Cheyenne County,” Scott said. “Usually, things go pretty smoothly.

Also at the meeting:

• Three new members were appointed the Cheyenne County Fair Board. Brad Zalesky, Jana Franzen and Jason Juracek join four existing board members.

In an interview, Cheyenne County Clerk Beth Fiegenschuh said the board still needs two additional members to meet the minimum required.

• An agenda item to open and consider bids for two lots currently owned by the county was rescheduled. Combined, the two lots encompass 16,000 square feet and have a fair market value of $8,800.

Cheyenne County Attorney Paul Schaub said no bids were received for the property. However, the lots will be advertised again and if any are submitted, they will be reviewed at the next commissioners’ meeting.

• The job description of the county planning and zoning administrator was modified. Schaub said the planning and zoning commission had suggested the updates.

“We needed to make sure we had a finalized job description because of the performance evaluation we had scheduled for [Tuesday],” he said.

• The next Cheyenne County Board of Commissioners meeting is scheduled for Monday, Nov. 2 at 8 a.m. in the Commissioners’ Room at the Cheyenne County Courthouse.