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Nebraska advaNce sheets
285 NEBRASKA REPORTS

kaapa ethaNol, l.l.c., appellee, v. the board of supervisors of k earNey couNty, Nebraska, aNd the couNty of k earNey, Nebraska, appellaNts.
___ N.W.2d ___ Filed January 25, 2013. No. S-12-035.

1. Administrative Law: Appeal and Error. In reviewing an administrative agency decision on a petition in error, both the district court and the appellate court review the decision to determine whether the agency acted within its jurisdiction and whether sufficient, relevant evidence supports the decision of the agency. 2. Statutes: Appeal and Error. Statutory interpretation is a question of law, which an appellate court resolves independently of the trial court. 3. Taxation. The general common-law rule is that taxes voluntarily paid cannot be recovered. 4. Taxation: Words and Phrases. Taxes paid under a mistake of fact are considered involuntary and thus recoverable under the common-law rule that taxes voluntarily paid cannot be recovered. A mistake of fact is an error or want of knowledge as to a fact, past or present, or such belief in the past or present existence as a fact of that which never existed, or such real and honest forgetfulness of a fact once known, as that the true recollection or knowledge of the fact, or of its existence or nonexistence, would have caused the taxpayer to refrain from making the payment. 5. Taxation: Legislature: Statutes: Words and Phrases. Taxes paid under a mistake of law are considered voluntary at common law and cannot be recovered unless the Legislature has enacted a statute authorizing recovery. A mistake of law is a mistake as to the legal consequences of an assumed state of facts, which occurs where a person is truly acquainted with the existence or nonexistence of the facts but is ignorant of or comes to an erroneous conclusion as to their legal effect. 6. Statutes. Statutes which effect a change in the common law are to be strictly construed. 7. Statutes: Intent. Generally, a statutory construction which changes an express common-law rule should not be adopted unless the plain words of the statute compel it.

Appeal from the District Court for Kearney County: stepheN r. illiNgWorth, Judge. Reversed and remanded with directions. Charles W. Campbell, of Angle, Murphy & Campbell, P.C., L.L.O., for appellants. Justin R. Herrmann and Daniel L. Lindstrom, of Jacobsen, Orr, Lindstrom & Holbrook, P.C., L.L.O., and William E. Peters, of Peters & Chunka, P.C., L.L.O., for appellee.

Nebraska advaNce sheets KAAPA ETHANOL v. BOARD OF SUPERVISORS Cite as 285 Neb. 112

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heavicaN, c.J., Wright, coNNolly, stephaN, mccormack, miller-lermaN, and cassel, JJ. stephaN, J. Kaapa Ethanol, L.L.C. (Kaapa), sought a refund from Kearney County, Nebraska, of a portion of its 2006 personal property taxes, alleging the taxes were paid as the result of an "honest mistake or misunderstanding."1 The Board of Supervisors of Kearney County (Board) denied the refund, and Kappa filed a petition in error with the district court for Kearney County. That court sustained the petition in error and ordered Kearney County to refund $480,411.50. The Board and Kearney County filed this timely appeal, and we granted their petition to bypass the Nebraska Court of Appeals. We reverse. BACKGROUND Nebraska p roperty tax laW In Nebraska, real property is taxed based upon its value as of January 1 of each year, as determined by each county assessor.2 The assessor then submits a real property tax bill to each taxpayer.3 Taxation of personal property also involves the county assessor, but only indirectly. Nebraska requires the owner of personal property to compile a list of all its tangible personal property having a tax situs in Nebraska.4 The list must be on a form prescribed by Nebraska's Tax Commissioner and must be filed as a personal property tax return by the owner of the personal property on or before May 1 of each year.5 The county assessor then reviews all personal property tax returns and changes the reported valuation of any item of personal property to conform to net book value.6 The assessor also adds any omitted personal property and assigns
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Neb. Rev. Stat.

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Nebraska Law