R-R Realty Company v. Metropolitan

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 enjoined its collection. Section 14-1026, R. R. S. 1943, defines the water fund of a metropolitan water district as including a "water tax" levied
by a municipality or county at the same time and in the same manner as other funds for municipal or county purposes, and then
provides: "The amount of the tax shall be certified * * * by the board of directors of the metropolitan water district * *
* and shall not exceed * * * the sum produced by computing each fire hydrant now or hereafter installed in the streets or
alleys of said municipality or precinct at the following rates per hydrant: Regular fire hydrants, sixty dollars; intermediate
fire hydrants, ten dollars. The gross amount of such tax shall not exceed the sum of three mills on the dollar upon the assessed
value of all the taxable property in such water district, except intangible property, and it shall be mandatory upon such
municipal authorities or county commissioners to levy same as above provided."