City of York v. York County Board of Equalization, 266 Neb. 297

Summary

The Supreme Court of Nebraska held that land owned by the City of York and leased for agricultural use adjacent to a municipal airport was being used for a public purpose. Because the agricultural use was incidental to the land's primary use as an airport buffer zone, and the lease was at fair market value, the property was exempt from taxation. The court reversed the Tax Equalization and Review Commission and remanded with directions to reverse the county board's taxation decision.

Holdings

1. Municipally owned land leased at fair market value for restricted agricultural use to maintain an airport buffer zone required by federal aviation requirements is used for a public purpose and is exempt from property taxation under Neb. Rev. Stat. § 77-202(1)(a).
2. The primary use of the leased land was as an airport buffer zone, and the agricultural use was incidental.
3. The court declined to reach the City's argument that taxation violated article VIII, § 1, of the Nebraska Constitution because it held the property exempt from taxation.

Questions Presented

1. Whether municipally owned land adjacent to an airport, leased at fair market value for restricted agricultural use to maintain an FAA-required airport buffer zone, was used for a public purpose and therefore exempt from property taxation under Neb. Rev. Stat. § 77-202(1)(a).
2. Whether the agricultural use was the predominant use of the property or merely incidental to its use as an airport buffer zone.
3. Whether the court needed to decide the City's argument that the taxation violated the Nebraska Constitution's uniformity and proportionality requirement.

Disposition

reversed_and_remanded