What Happens to Ted Turner’s Ranchland and $1 Million Nebraska Tax Promise Now?

Ted Turner owned 2 million acres of ranchland when he died.

In the wake of Ted Turner's death, news reports and social media comments are questioning what will happen to his 2 million acres of ranchland. Another topic of discussion is whether Turner's heirs will uphold his pledge to continue to pay property taxes on nearly 80,000 Nebraska acres owned by his nonprofit.

Who Are Turner's Heirs?

Turner started acquiring land in the 1980s, amassing more than 2 million acres by the mid-2000s. That earned him the title of the Land Report’s top U.S. landowner four times by 2010. He is currently ranked fourth. According to Forbes, his net worth was around $2.8 billion.

Turner's heirs include five children, 14 grandchildren and two great-grandchildren. All of his children and several adult grandchildren are involved with the Turner Foundation's philanthropic and conservation efforts.

Turner was not married at the time of his death. He had children with his first two wives, Judy Nye Turner and Jane Smith Turner. His third wife, actress Jane Fonda, was involved with the Turner Foundation and Turner's other philanthropic efforts during their marriage, from 1991–2001. After their divorce, she established her own organization, the Fonda Family Foundation, funded by Turner.

While no ranch-by-ranch specifics have been given, a tribute posted on the Turner Enterprises, Inc., website indicated the media mogul and fourth-largest U.S. agricultural landowner had taken steps to preserve his land. It reads in part:

“Turner’s happiest moments were spent on his lands, where he claimed to have felt most at home, surrounded by his bison, as well as numerous other animal and plant species. ... The well-being of these properties and the species present on each was of utmost importance to Turner; therefore, Turner ensured that upon his passing, his lands will continue to be protected, limiting future development and parcellation.”

No Exemption Sought

In 2021 — three years after announcing his Lewy body dementia diagnosis — Turner formed the nonprofit Turner Institute of Ecoagriculture with a donation of his 79,145-acre McGinley Ranch. Most of the ranch is in Cherry County, but it also reaches into Bennett County, South Dakota.

The Institute’s website says: "With unusual scale, biodiversity, and operational depth, the Turner lands offer a rare opportunity to study how ranching, wildlife, water, habitat, and rural resilience can be advanced together. The Institute exists to turn that opportunity into knowledge, practice, and progress." It partners with South Dakota State University and its Center of Excellence for Bison Studies plus several other universities.

Nonprofits generally don't pay property taxes, but a 2021 press release announcing the donation of McGinley Ranch read in part:

"Although the Turner Institute of Ecoagriculture could potentially qualify for property tax exemption under the current law in Nebraska and South Dakota, the Institute has no intention of applying for that exemption."

In that release, Turner said, "I believe that local property taxes provide essential support for services on which our ranches and communities depend. The Institute will continue to pay its share of taxes to support the local communities."

In a report on Omaha television station WOWT, UNL assistant law professor Paul Weitzel said there's nothing prohibiting Turner's heirs from applying for property tax exemption. "Unless there's some contractual provision, you can promise whatever you want and no one can hold you to it," he said. "If they apply for the tax exemption and the land is primarily being used for nonprofit activities, then it will probably be granted."

If the county were to lose tax revenue from McGinley Ranch, Weitzel pointed out in the report, it's likely municipal services would have to be reduced or the funds would have to be generated through bonds or higher taxes.

There is no indication anything will change, but that decision lies with the Institute's board of directors.

McGinley Ranch contributes around $960,000 of Cherry County's $22.5 million total property taxes each year, according to the Nebraska Department of Revenue.

The county is home to 5,455 people, with nearly half living in the county seat of Valentine. It is the state's largest county by area, consisting of just over 3.8 million acres, 91% of which are pasture.

While only McGinley Ranch has been donated to the Institute thus far, the 2021 press release stated: "It is contemplated that the remaining four ranches in the Sandhills area (collectively, the 'Sandhills Ranches') may be transferred to the Institute in the future."

Turner's three Cherry County ranches — Spikebox, McGinley, and Fawn Lake — comprise 284,937 acres, or approximately 7.5% of the county.

If all five of Turner's Nebraska ranches are donated to the Institute and tax exempt status is sought, the impact would be felt beyond Cherry County. Together, the ranches — including McGinley — cover 446,755 acres across the Sandhills.

EDITOR’S TAKE:

As the article points out, Ted Turner was the fourth largest land owner in the U.S. His death has obviously raised many legitimate questions about the future of those land holdings and the potential impact it could have on several rural communities. There is no guarantee Turner’s heirs will uphold any or all of Ted Turner’s previous commitments. A lot rides on the decisions going forward, and at this juncture it is only a guessing game. We will maintain a watchful eye on what happens to all this ag land!

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