City of York v. York County Board of Equalization

Summary

The Nebraska Supreme Court reviewed a decision of the Tax Equalization and Review Commission concerning whether city-owned land leased for agricultural use was exempt from property taxation. The court held that the land’s primary use was as part of a community-development industrial park and that the agricultural lease was incidental to that public purpose. The court reversed and remanded with directions to reverse the county board’s determination that the property was taxable.

Holdings

1. The property was used for the public purpose of community development because it was public property being used in an industrial-park development project.
2. The agricultural use was incidental, and the property's primary or dominant use was for a public purpose as an industrial park for community development.
3. The court declined to reach the City's argument that TERC's decision violated article VIII, § 1, of the Nebraska Constitution because the land was tax exempt under § 77-202(1)(a).

Questions Presented

1. Whether the leased industrial-park land was being used for a public purpose and therefore qualified for exemption from taxation under Neb. Rev. Stat. § 77-202(1)(a).
2. Whether the agricultural leasing use was the primary use of the property or merely incidental to its primary use as an industrial park for community development.
3. Whether the property was exempt under Neb. Rev. Stat. § 18-2137.
4. Whether TERC's decision violated article VIII, § 1, of the Nebraska Constitution requiring uniform and proportionate taxation.

Disposition

reversed_and_remanded