Banks v. Heineman, 286 Neb. 390

Nebraska LB 1048 (effective July 15, 2010) replaced the personal property tax on wind facilities with a nameplate capacity excise tax and created a credit against the nameplate tax for pre-2010 personal property taxes paid on wind facilities.
Elkhorn Ridge Wind, Knox County, paid 2009 personal property taxes and claimed a §77-6203(5)(b) credit against 2010 nameplate capacity tax; the credit aimed to prevent double taxation.
The district court held the credit unconstitutional as a commutation of taxes under Neb. Const. art. VIII, §4, and did not definitively decide whether it was forbidden special legislation.
The Legislature intended to address budgetary challenges and upfront costs by shifting from a 5-year depreciation regime to a longer, predictable nameplate tax stream.
This Nebraska Supreme Court opinion independently concludes the credit is not an unconstitutional commutation and that the statute is not impermissibly special legislation, reversing and remanding to dismiss.
The case posture involved cross-appeals: the State appealed the district court’s ruling; Knox County and certain property owners cross-appealed on the special legislation issue.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the credit constitutes an unconstitutional commutation of taxes	State officials contend the nameplate tax is an excise tax and art. VIII, §4 does not apply	Knox Countians contend the credit effectively commutes taxes and violates art. VIII, §4	Credit does not violate art. VIII, §4; excise tax not within commutation scope
Whether § 77-6203(5)(b) is unconstitutional special legislation	State argues general law can address the change; no necessity for special treatment	Knox Countians argue the credit creates a closed class requiring special legislation	Credit is not unconstitutional special legislation; we uphold and remand for dismissal

Kiplinger v. Nebraska Dept. of Natural Resources, 282 Neb. 237 (2011) (addressed excise tax characterization and relation to commutation)
State ex rel. Johnson v. Gale, 273 Neb. 889 (2007) (interpretation of constitutional provisions; construction not to add words)
Tilgner v. City of North Platte, 282 Neb. 328 (2011) (constitutional interpretation and uniform taxation principles)
Galyen v. State, 221 Neb. 497 (1985) (recognizes excise tax as not tied to property value)
Macku v. Drackett Products Co., 216 Neb. 176 (1984) (legislative changes in limitations periods; reasonable provision for affected claims)
Yant v. City of Grand Island, supra note 11 (2010) (relocation of state fair; legitimate public policy and closed class considerations)