U.S. Water News Online
LINCOLN, Neb. -- A trial with millions of dollars and compliance with the Republican River compact at stake was scheduled to begin in Lancaster County District Court. A ruling in the high-stakes case was not expected soon by Lancaster County District Judge Paul Merritt, but one is possible.
Property owners along the river sued the state, arguing that property taxes they must pay to buy water to send to Kansas are unconstitutional. A state law passed last year allowed natural resources districts in the river basin to set property taxes.
The property owners argue the property taxes are for a state purpose -- getting into compliance with the Republican River compact Nebraska has struggled to meet -- and cite an article in the state constitution that says the state "shall be prohibited from levying a property tax for state purposes."
The legal brief submitted to the court by the plaintiffs contain many quotes from state senators and officials who spoke last year about how the law could help the state get in compliance with the compact.
The quotes are meant to show the law was solely designed to help meet the compact and doesn't also have local purposes, as the state has said.
"The legislative history of LB701 is replete with references to compact compliance," says the brief from the plaintiffs.
The state argues that locally elected boards of natural resources districts, not the state, set the taxes, and that the tax revenue benefits local people by increasing the amount of water. Among the things the tax revenue can be used for is removing invasive plants that suck water from the river and its tributaries.
In briefs filed with the court, the state acknowledges the law also has a state purpose -- to get into compliance with the compact -- but also says that "the fact that property taxes are used to fund activities which achieve both state and local purposes does not render the property tax unconstitutional."
The cities of McCook, Stratton and Arapahoe are supporting the lawsuit against the state. They say that it's unfair their residents are taxed because the water they use doesn't affect flows in the Republican River.
The court battle comes as Kansas is readying for a possible lawsuit against Nebraska.
Nebraska has overused its allotment of river water under the compact and Kansas has grown impatient, with officials there recently suggesting they're ready for a legal showdown and demanding both money and sharp cuts in Nebraska water use.
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