RR Realty Co. v. METROPOLITAN UTIL. DIST. OF OMAHA

The plaintiff filed this class action challenging the constitutionality of a one-half mill levy for what is commonly referred to as the “hydrant tax” in a metropolitan water district. § 14-1026, R. R. S. 1943. It is contended that this tax statute violates Article VIII, section 1A, Constitution of Nebraska, which provides: “The state shall be prohibited from levying a property tax for state purposes.” The tax is a property tax. The district court found that the tax was levied by the state, for a state purpose, and violated the constitutional provision. The judgment held the tax void and…