LINCOLN — A new state audit says the Douglas County Treasurer’s Office has wrongly calculated the amount of tax revenue due to several local taxing entities, overpaying the Omaha Public Schools by nearly $6 million but underpaying the Elkhorn School District by $4 million.

Douglas County and the City of Omaha were also among those losing out on millions in tax revenue, said the audit, released earlier this week.

Instead of paying property taxes, the Omaha Public Power District pays “in-lieu” of tax payments based on 5% of its annual revenue from electric sales. Last year, that amounted to $26 million, which was then distributed to the county, cities and school districts in the county.

Douglas County Treasurer John Ewing, when contacted Monday, May 20, said the method for calculating the in-lieu-of tax distribution has remained the same since the 1960s. The office had continue its practice following a review in 2019 that included consultation with the State Auditor's Office.

“This is not a case of money being misappropriated, it’s really a case of a mistaken interpretation of the state statute that had continued up until this year’s distribution,” Ewing said.

He added that it will likely be a decision among the various taxing entities, along with the County Treasurer's Office, on how to reconcile the under- and overpayments from the past several years. Ewing said he has spoken with several of the entities involved and doesn't expect a lawsuit.

“Everyone makes mistakes,” he said, adding. “It’s a mistake versus a knowing, wrong distribution.”

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