LB 681 stalled in committee

A bill that will refund property taxes that were declared unconstitutional is being held hostage in committee.

LB 681 has not advanced for full floor debate for several reasons, Dist. 44 State Sen. Mark Christensen said this morning, at the Government Affairs Legislature Conference Call at the McCook Area Chamber of Commerce.

He said the majority of objections come from eastern senators who do not want to advance the bill without some kind of guarantee that the nearly $9 million owed to the state by the Republican River Basin natural resources districts will be paid back.

Last year, the NRDs borrowed the money from the state to pay irrigators for the water they bought in 2007. That water was sent downstream to Kansas, to help comply with the Republican River Compact.

The Republican River Basin NRDs planned to use the additional property taxes allowed under LB 701 to pay for the water, but a bonding company did not issue the bonds due to a lawsuit that maintained those property taxes were unconstitutional. The Nebraska Supreme Court agreed the taxes were illegal in February. A lawsuit challenging the occupation tax in the water law created by LB 701 is currently pending in District Court in Lancaster County.

Christensen said other concerns heard in committee include that a refund of property taxes could affect potential lawsuits that are brewing against learning centers in Omaha and confusion over where the automatic refunds will go to: those on record for owning the property or those who actually paid the taxes.

Christensen has made LB 681 his priority bill, but contended that if another one of his bills moves out of committee, it would answer those senator's concerns.

LB 651, still caught in committee, keeps the occupation taxes in place and with it a mechanism the NRDs can use to pay back the $9 million, he said.

New language in the bill has removed the forced bonding and has opened up the occupation taxes to all NRDs with rivers designated as fully or over appropriated, he said.

A revised LB 651 is not currently available at the Nebraska Legislature Web site.

Without occupation taxes, Christensen said other ways the NRDs can use to pay back the money include raising the current property tax the NRDs assess or a per inch tax on irrigators.

Christensen stands by the automatic refund of property taxes and said it's the "right thing to do." The refunds should be considered a separate issue apart from the NRD repayment, he maintained.

The status of two bills concerning the Nebraska Department of Corrections Work Ethic Camp in McCook have been put on the consent agenda, Christensen said. Bills on the consent agenda are considered to be non-controversial and can be approved quickly, he said, leaving more time for floor debate on other bills.

If approved, LB 429 will allow offenders/inmates at the WEC to work with proper supervision at educational facilities.

Under LB 274, the Director of Corrections will be able to assign inmates at Nebraska correctional facilities to the WEC. Currently, inmates must appear before the Parole Board to be assigned and this bill will help to speed up the process. Felony offenders can also be assigned by District Court judges.