By Allison Peck
Mid-Plains Community College is challenging the full taxation of its former Osgood Elementary School property in Lincoln County, arguing only the portion leased to a private daycare should remain taxable.
The issue was brought before the Lincoln County Board of Equalization on Monday, where County Assessor Julie Stinger said the review is required under state statute to determine whether property owned by a governmental subdivision is being used for a public purpose.
The property, owned by Mid-Plains Community College, is currently taxed in full. Those taxes are paid by Trucks N Tiaras Academy of Discovery and Enrichment, which leases space inside the former Osgood Elementary School building. The college argues that arrangement does not reflect how the property is being used.
College officials are now challenging that full taxation, stating only the portion of the property used by the daycare—approximately 44.26 percent—should be subject to property taxes. The remaining portion of the property is not currently in use but is being held for potential future use by North Platte Community College, including possible expansion for wrestling programs.
Under Nebraska law, property owned by a governmental entity may remain tax-exempt only if it is used for a public purpose. The presence of a private tenant can make that portion of the property taxable, while portions reserved for public or future public use may still qualify for exemption.
As part of that process, the assessor’s office notified the college that the property may be considered taxable, prompting Mid-Plains Community College to file a formal protest of the termination of its tax-exempt status.
The Lincoln County Board of Equalization took action Monday to move the protest forward for further consideration. A final determination on how the property will be classified and taxed is expected at a later date.
In addition to the taxability question, college representatives also indicated there may be differences between their internal valuation of the property and the county’s assessed value, an issue that could be addressed in future proceedings.