Legislature OKs, governor expected to sign, law for Republican Basin occupation tax refunds on conservation program acres not irrigated in 2011

By Lori Potter

 

Alma - Landowners in the Lower Republican Natural Resources District who paid 2011 occupation taxes on land they didn't irrigate during that crop year can seek refunds from May 1 though Oct. 1.  The refunds are allowed under LB1125, which was passed by the Nebraska Legislature and is expected to be signed into law by Gov. Dave Heineman.  In a review of the legislation at Thursday's LRNRD board meeting at Alma, General Manager Mike Clements said that to qualify for the occupation tax refund, landowners must show proof that they did not irrigate land in 2011 that was certified as irrigated.  He expects that about 12,000 acres will be involved.

 

The LRNRD accepted applications for waivers of 2012 occupation taxes until March 1. The total was 10,700 acres.  The properties involved in the 2012 waivers and expected to be listed for 2011 occupation tax refunds primarily involve acres that are certified for irrigation but are now enrolled in federal conservation programs that temporarily retire irrigation use.  There was not a waiver mechanism in place for 2011 occupation taxes, so they were collected and LB1125 provides for the refunds.  From 2012 on, March 1 is the deadline to apply for a waiver so that the taxes are not collected.

 

Clements told the Hub that the LRNRD staff and directors probably will schedule town hall meetings in the district - all of Furnas, Harlan and Franklin counties and parts of Webster and Nuckolls counties - to discuss the 2011 occupation tax refund process and give updates on the Kansas v. Nebraska lawsuit before the U.S. Supreme Court.  In his written manager's report to the board, Clements said he'd recently staffed a booth at the Red Cloud Ag Expo and was "surprised at how little a lot of folks know about the lawsuit." He said a trial on the current issues is expected.

 

In May 2010, Kansas Attorney General Steve Six asked the court to require Nebraska to meet terms of the 2003 Kansas v. Nebraska settlement decree, which outlines each state's rights to water allocated by the 1943 Republican River Compact. Colorado also is part of the compact and the lawsuits.  In the filing, Kansas officials renewed their longstanding argument that Nebraskans have violated the compact by using more than their share of water, in particular 78,960 acre-feet beyond Nebraska's allocations in 2005 and 2006, and have failed to take the necessary actions to avoid future violations in inevitable dry years.  At the NARD annual meeting in Kearney in September, Nebraska Assistant Attorney General Justin Lavene, chief of the office's Natural Resources Section, said there are three main issues.

 

Kansas officials are seeking damages for Nebraska's alleged noncompliance in 2005 and 2006, and also want future water-short year compliance to include shutting down Nebraska irrigation wells within 21/2 miles of the Republican River and its tributaries.  Nebraska's concern involves water-accounting issues.

 

In other LRNRD business Thursday, the board approved a low bid of $6,300 from Olson Construction of Alma for an office remodeling project that will create two private offices.  Also approved was $1,000 to help the Nebraska Association of Resources District purchase and renovate an exhibit building on the Husker Harvest Days grounds northeast of Wood River. Clements said the total costs are $32,650. Nebraska's 23 NRDs each have been asked to contribute $1,000, and the balance will be paid from NARD and NARD Foundation funds.