AGO 98017.

CourtNebraska
Nebraska Attorney General Opinions 1998. AGO 98017. DATE: March 4, 1998SUBJECT: Authority of the Nebraska Corn Board to Grant Refunds of Corn Checkoff FeesREQUESTED BY: Nebraska Corn BoardWRITTEN BY: Don Stenberg, Attorney General Steve Grasz, Deputy Attorney General Pursuant to the Nebraska Corn Resources Act, a fee is levied on all corn sold through commercial channels or delivered in Nebraska. Neb. Rev. Stat. Ann. § 2-3623 (Mich. 1997 Supp.). This excise tax or "checkoff" fee is also paid when a loan is made to producers under federal programs where the corn is pledged as security for the loan. Neb. Rev. Stat. Ann. § 2-2628 (Michie 1997 Supp.). You have requested an Attorney General's Opinion as to the authority of the Nebraska Corn Board (hereinafter the "Board") with respect to the granting of certain refunds of checkoff fees to corn producers. Specifically, you have asked "what authority does the Nebraska Corn Board have in granting a refund to producers who purchase their loan corn back to feed their livestock after the thirty day deadline as described in the Corn Resource Act?" The Nebraska Corn Resources Act provides, in pertinent part: In the case of a pledge or mortgage of corn as security for a loan under the federal price support program or other government agricultural loan programs, the fee shall be deducted from the proceeds of such loan at the time the loan is made. If, within the life of the loan plus thirty days after the collection of a fee for corn that is mortgaged as security for a loan under the federal price support program or other government agricultural loan programs, the grower decides to purchase the corn and use it as feed, the grower shall be entitled to a refund of the checkoff fee previously paid. The refund shall be payable by the board upon the grower's written application to the board for a refund of the amount deducted. Each application for a refund by a grower shall have attached thereto proof of the tax deducted. Neb. Rev. Stat. Ann. § 2-3628 (Mich. Supp. 1997) (emphasis added). The wording of the above quoted statutory deadline for checkoff refunds is relatively new. Prior to July 19, 1996, the statute provided that such a refund was available only within six months of the time the loan was made. See LB 1336 (Neb. Laws 1996). The legislative history of this provision shows that the...

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