According to a recent advisory by the Nebraska state tax commissioner, any property not actually owned by a government entity is subject to property taxes. This presents a serious problem for communities that use nonprofit leasing corporations to issue tax-free bonds to fund capital projects like Omaha’s TD Ameritrade Park and Sarpy County’s Werner Park.
Using a nonprofit leasing corporation is a common practice done to expedite projects and even avoid a public vote on funding. Once the bonds are paid off, title of the property is typically transferred to the government entity that set up the leasing corporation.
One problem here is that if property taxes are imposed, the money wouldn’t simply go to the government to pay off the capital projects. It would be divided up amongst all those entites that have a stake in property tax payments, like schools, for example.
It is expected that the state legislature will take this issue up in the next session. Read more here.