77-2708.01. Depreciable repairs or parts for agricultural machinery or equipment; refund of sales or use taxes; procedure.

(1) Any purchaser of depreciable repairs or parts for agricultural machinery or equipment used in commercial agriculture may apply for a refund of all of the Nebraska sales or use taxes and all of the local option sales or use taxes paid prior to October 1, 2014, on the repairs or parts.

(2) The purchaser shall file a claim within three years after the date of purchase with the Tax Commissioner pursuant to section 77-2708. The information provided on a tax refund claim allowed under this section may be disclosed to any other tax official of this state.

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Annotations

"[D]epreciable repairs or parts" means repairs or parts that appreciably prolong the life of the property, arrest its deterioration, or increase its value or usefulness, and are ordinarily capital expenditures for which a deduction is allowed only through the depreciation recovery allowance. Farmers Co-op v. State, 296 Neb. 347, 893 N.W.2d 728 (2017).

Section 77-101 did not require the definition of "[d]epreciable tangible personal property" in section 77-119 to be used to define "depreciable repairs or parts" in this section, because the term "repairs" in this section made the phrases contextually different. Farmers Co-op v. State, 296 Neb. 347, 893 N.W.2d 728 (2017).

The legislative intent of creating the refund for "depreciable repairs or parts" in this section was to prevent double taxation but also to ensure that all depreciable repairs and parts were subject to personal property tax. Farmers Co-op v. State, 296 Neb. 347, 893 N.W.2d 728 (2017).

The party claiming a tax refund must establish its entitlement to the refund. Farmers Co-op v. State, 296 Neb. 347, 893 N.W.2d 728 (2017).