Extension of special NRD property tax authority considered

Select natural resources districts could retain special property tax authority under a pair of bills considered by the Revenue Committee Feb. 2.

Current law allows NRDs in overappropriated or fully appropriated basins to levy an additional property tax of up to three cents per $100 of taxable value. Revenues must be used for costs of administering and implementing ground water management activities and integrated management activities under the Nebraska Ground Water Management and Protection Act that exceed the amount budgeted for such activities in fiscal year 2005-06. This taxing authority has a sunset date of FY2011-12.

LB527, introduced by Holdrege Sen. Tom Carlson, would expand this taxing authority to NRDs with basins transitioning away from a fully appropriated status. The bill also would delay the sunset date five years.

LB528, also introduced by Carlson, would not expand eligibility for the taxing authority but would extend the sunset date six years.

The state is not in a position to provide additional funding for water management needs, Carlson said, and NRDs in areas that are fully appropriated, overappropriated or transitioning from fully appropriated need revenue to ensure their situation does not deteriorate.

“We need to allow local entities to have the ability to come up with the dollars to take care of their challenges,” Carlson said.

Dennis Schueth, general manager of the Upper Elkhorn NRD, testified in support of both bills. Many NRDs have taken on more responsibility in managing and studying ground water, he said, and such efforts require funding that the state currently cannot provide. Furthermore, legislation introduced that would cut state aid to NRDs, redirect funds from the Nebraska Environmental Trust Fund and reduce funding to the state Department of Natural Resources could put additional strains on NRDs, Schueth said.

He supported expanding the taxing authority to NRDs that are transitioning out of a fully appropriated status. State law requires NRDs that are backing out of a fully appropriated status to develop rules and regulations to prevent a fully appropriated declaration, he said, and funding is needed to administer these activities.

John Miyoshi, general manager of the Lower Platte North NRD, testified in support of LB527, saying NRDs could use the taxing authority to fund the development of voluntary integrated management plans, which were authorized by legislation enacted last session.

“The only method to keep us from fully appropriated [status] is to be proactive and use this planning tool,” Miyoshi said.

Ron Bishop, general manager of the Central Platte NRD, testified in support of LB528. Between 35 and 40 percent of the state is declared fully appropriated or overappropriated, he said, and a similar percentage is close to a fully appropriated designation. The sunset date for the 3-cent levy must be extended, he said, in order for the state to address its water needs, especially pertaining to interstate compacts and agreements.

“In order for NRDs to remain meaningful partners with the state and to continue to financially help meet the needs of the commitments of the compacts and agreements … it is imperative that you extend the sunset on the 3-cent levy,” Bishop said.

No one testified in opposition and the committee took no immediate action on either bill.