Dakota Bank & Trust Co. Fargo v. Chester

The goodyear Tire & Rubber Company (goodyear) appeals from the district courts order affirming the decision by the Nebraska State Tax Commissioner (the Commissioner) to deny a portion of goodyears claim for a tax refund under the employment and Investment growth Act, commonly referred to as "L.B. 775." goodyear sought a refund for components used to repair or replace parts of equipment utilized in the project covered by the L.B. 775 agreement entered into between goodyear and the Nebraska department of Revenue (the department). The Commissioners order states that the "parties have stipulated that the sole issue to be decided is whether the transactions listed on exhibits 9 and 10 are for the purchase of qualified property pursuant to Neb. Rev. Stat. §77-4105(3)(a)(i)(Reissue 2003)." Pursuant to the stipulation, both the Commissioner and the district court reviewed this sole issue. The district court, in its de novo review, concurred with the Commissioners interpretation of the term "qualified property." The court found that the "parts used to repair equipment after such equipment was placed in service at the project are not qualified property as defined in Section 77-4103(13)." The district court also determined that the Commissioner was not required to adopt and promulgate rules or regulations with regard to the Commissioners interpretation of L.B. 775.