Tax-exemption status is being questioned for the Nebraska Department of Motor Vehicle's State Driver Licensing Office in Grand Island at 3529 S. Locust St., as well as locations in Douglas and Lancaster Counties. The Grand Island State Driver Licensing Office is shown in this photo. (Carol Bryant, Central Nebraska Today)
GRAND ISLAND – The Nebraska Auditor of Public Accounts is questioning whether tax-exempt status should have been granted for the State Driver Licensing Office in Grand Island, one location in Lincoln (Lancaster County), and two locations in Omaha (Douglas County).
The Nebraska Department of Motor Vehicles leases the buildings. The Grand Island location is at 3529 S. Locust St., just south of the south Walmart, and the ribbon-cutting for the building was in August 2025.
The Nebraska Auditor of Public Accounts (APA) obtained financial records and other documents from the counties.
“Based on the outcome of the preliminary planning work, including an analysis of the information obtained, the APA has determined that a separate financial audit or attestation is unnecessary at this time, as the Counties are audited on an annual basis,” according to a March 18 letter from the APA office. The letter is 20 pages long.
“The APA noted a certain issue that merits corrective action,” the letter said.
The Department of Motor Vehicle leases for the buildings are tied to two organizations: the H.E.L.P. Foundation of Omaha (Foundation), a charitable non-profit entity, and White Lotus Group, a real estate developer based out of Omaha. According to the Hall County GIS website, the owner of the property at 3529 S. Locust St. is NEDMV GI, LLC.
The H.E.L.P Foundation describes its mission as follows:
“The H.E.L.P. Foundation of Omaha is a non-profit organization with a noble cause. We believe that we all have an innate social responsibility to help others, especially those who may have fallen on hard times or are under served. We aim to understand those individual’s needs through compassion and sensitivity in order to enable them to achieve a better life. Our mission is to be a link in this process by providing health care and healthy living practices, education, affordable housing and, ultimately, love for all people,” according to the Foundation’s website.
The Foundation’s President is Sudha Agarwal, and its registered office address is 10404 Essex Court, Suite 101, in Omaha.
The building in which the Foundation’s office is located displays signage for White Lotus Group. According to the Nebraska Secretary of State’s website, White Lotus Group’s registered office shares the same address – 10404 Essex Court, Suite 101, in Omaha, Nebraska – as that of the Foundation. The CEO for White Lotus Group is Arun Agarwal, the son of Sudha Agarwal, the Foundation’s President.
The White Lotus Group’s website lists all four of the above Department-leased properties in the company’s government portfolio.
Three of the four properties leased by the DMV are receiving, at least, a partial tax exemption based on the Foundation’s charitable nonprofit status. Only the property located at 4606 N 56th St. in Omaha appears to have been assessed its full valuation.
“The usage of the properties appears to fall outside of the strict statutory requirements for tax exemption eligibility,” the APA letter said.
On Oct. 28, 2024, shortly after construction had started on the office building housing Hall County’s Driver Licensing Office, the Foundation transferred ownership of that property to NEDMV GI, LLC for $0.
“Following the completion of this new construction, NEDMV GI, LLC entered into a lease agreement with the State beginning July 1, 2025, and continuing until June 30, 2045. The State has made lease payments, totaling $293,557.36, as of February 3, 2026,” the APA letter said.
The Hall County property received a $1,033 tax exemption in 2024. The APA contacted the Hall County Assessor’s office regarding the issue.
According to the APA letter, the Hall County Assessor’s office responded “We only approved this exemption after speaking with the State of Nebraska Department of Revenue because we also questioned it. They reviewed the lease and told us to grant it.”
The Douglas County Assessor’s office was the only assessor’s office to submit a letter in response to the APA inquiry.
The letter from the Douglas County Assessor’s office is dated March 13. It says that according to state statute, one of the conditions for categorizing property as tax-exempt is because of charitable and/or educational organizational nature and that the property is not used for financial gain by the owner.
The Douglas County letter says that the DMV provides at least, in part, technical educational services.
“If the proceeds are determined by the APA to be a ‘financial gain or profit’ to White Lotus Group, our office agrees that the exemption should be denied,” the Douglas County letter said.
“If the LLC’s proceeds from the lease proceeds stay within the LLC, our office would respectfully request that the APA reconsider its proposition that the DMV parcel lease is subject to property taxation,” the Douglas County letter said.
According to the APA letter, the monthly rent amounts for the Grand Island site since July 2025 have been (listed by date posted):
*Aug. 5, 2025: $73,389.34 for July and August.
*Aug. 27, 2025: $36,694.67 for September rent.
*Sept. 26, 2025: $36,694.67 for October rent.
*Oct. 29, 2025: $36,694.67 for November rent.
*Nov. 15, 2025: $36,694.67 for December rent.
*Dec. 29, 2025: $36,694.67 for January 2026 rent
*Jan. 28, 2026: $36,694.67 for February 2026 rent.
