Jaksha v. State

Decision Date24 July 1992
Docket NumberNo. S-91-1111,S-91-1111
PartiesEdward JAKSHA, Plaintiff, v. STATE of Nebraska et al., Defendants.
CourtNebraska Supreme Court

Syllabus by the Court

1. Constitutional Law: Taxation: Property. Real and personal property are in the same class for purposes of the uniformity clause of article VIII, § 1, of the Nebraska Constitution.

2. Constitutional Law: Legislature: Statutes. An act of the Legislature that is forbidden by the state Constitution at the time of its passage is absolutely null and void, and is not validated by a subsequent amendment to the state Constitution authorizing it to pass such an act.

3. Constitutional Law. A state constitution is the supreme written will of the people of a state regarding the framework for their government and is subject only to the limitations found in the federal Constitution.

4. Constitutional Law. The state Constitution, as amended, must be read as a whole.

5. Constitutional Law. A constitutional amendment becomes an integral part of the instrument and must be construed 6. Constitutional Law. If inconsistent, a constitutional amendment prevails over a provision in the original instrument; but a court will find distinct constitutional provisions repugnant to each other only when they relate to the same subject, are adopted for the same purpose, and are incapable of enforcement without substantial conflict.

and harmonized, if possible, with all other provisions so as to give effect to every section and clause as well as to the whole instrument.

7. Constitutional Law: Taxation: Property. The principal concern of the uniformity clause is preventing a multiplicity of exemptions from the tax on tangible property and the resulting shift of the property tax burden to the remaining taxpayers. Neb. Const. art. VIII, § 1.

8. Constitutional Law: Taxation: Property: Statutes. In determining whether exemptions enacted pursuant to Neb. Const. art. VIII, § 2, are valid under the uniformity clause, a court must consider (1) whether the exemptions improperly shift the property tax burden to the remaining tax base, and (2) whether there is a substantial difference of situation or circumstance justifying differing legislation for the objects classified.

9. Constitutional Law: Statutes: Presumptions. A statute is presumed to be constitutional, and all reasonable doubts will be resolved in favor of its constitutionality.

10. Constitutional Law: Statutes: Proof. The burden is upon the party claiming a statute is unconstitutional to establish its unconstitutionality.

11. Constitutional Law: Taxation: Property: Statutes. The reasonableness of a classification alone will not save a legislative system of exemptions which violates the uniformity clause by improperly shifting the property tax burden to the remaining taxpayers.

12. Constitutional Law: Taxation: Property: Statutes. A statute exempting virtually all personal property from the property tax rolls improperly shifts the property tax burden to owners of real property and therefore is unconstitutional under the uniformity clause, Neb. Const. art. VIII, § 1.

13. Courts: Jurisdiction. Existence of an actual case or controversy is a prerequisite to the exercise of judicial power in Nebraska.

14. Actions: Declaratory Judgments. The case or controversy requirement applies to actions for a declaratory judgment.

15. Moot Question: Standing. The doctrine of mootness is a key component in determining whether an actual case or controversy exists.

16. Statutes. A statute passed with an emergency clause goes into effect the day following its approval by the Governor.

17. Actions: Constitutional Law: Taxation: Statutes: Moot Question. An action challenging the constitutionality of a tax statute is not moot despite subsequent repeal of the statute if the statute was utilized in calculating the challenger's taxes for a previous year and thus the challenger may be entitled to a refund.

18. Constitutional Law: Taxation: Statutes: Moot Question. Repeal of a tax statute prior to its application in any tax year moots a constitutional challenge to the statute.

19. Constitutional Law: Statutes. Generally, when part of an act is held unconstitutional the remainder must likewise fail, unless the unconstitutional portion is severable from the remaining portions.

20. Constitutional Law: Statutes: Legislature: Intent. In determining whether an unconstitutional provision is severable from the remainder of a statute, courts must take into consideration the following factors: (1) whether, absent the invalid portion, a workable plan remains; (2) whether the valid portions are independently enforceable; (3) whether the invalid portion was such an inducement to the valid parts that the valid parts would not have passed without the invalid part; (4) whether severance will do violence to the intent of the Legislature; and (5) whether a declaration of separability indicating that the 21. Constitutional Law: Legislature: Taxation. The constitutional provision prohibiting the commutation of a tax prevents the Legislature from releasing either persons or property from contributing a proportionate share of the tax. Neb. Const. art. VIII, § 4.

Legislature would have enacted the bill absent the invalid portion is included in the act.

22. Constitutional Law: Legislature: Taxation. The Legislature is prohibited from changing the method of payment of any tax once it is levied. Neb. Const. art. VIII, § 4.

23. Constitutional Law: Taxation: Statutes. A statute does not violate the constitutional provision prohibiting the commutation of a tax when it is enacted and goes into effect prior to the date the tax is levied. Neb. Const. art. VIII, § 4.

24. Constitutional Law: Statutes. If an act has but one general object, no matter how broad that object may be, and contains no matter not germane thereto, and the title fairly expresses the subject of the bill, it does not violate article III, § 14, of the Nebraska Constitution.

25. Constitutional Law: Courts. The judicial power in Nebraska is vested solely in the courts. Neb. Const. art. II, § 1.

26. Constitutional Law: Administrative Law: Courts: Legislature. Administrative agencies have no general judicial powers and, unless permitted by the state Constitution, the Legislature may not authorize them to exercise powers which are essentially judicial in nature, or to interfere with the exercise of such powers by the courts.

27. Constitutional Law: Courts: Statutes. Construction and interpretation of the state Constitution are judicial functions, and it is the duty of the judicial branch to determine whether an act of the Legislature contravenes the provisions of the Constitution.

28. Constitutional Law: Statutes. The duty to determine the constitutionality of legislative enactments necessarily includes the authority to determine what effect, if any, an unconstitutional statute shall have upon the rights of parties which may have been affected by it.

29. Administrative Law: Appeal and Error. Delegation of quasi-judicial functions to administrative agencies is allowable when the duties relate to matters peculiarly within the public interest and provision is made for appeal to the courts.

30. Constitutional Law: Taxation: Statutes: Judgments: Appeal and Error. Determination of the prospective or retroactive effect of a judgment declaring a statute unconstitutional is essentially judicial in nature, and therefore a statute vesting the Tax Commissioner with authority to determine whether judicial decisions holding a tax or penalty unconstitutional should apply prospectively, subject only to review by the court rendering the decision in the same manner as a motion for rehearing, is unconstitutional.

David A. Domina and Denise E. Frost of Domina & Copple, P.C., Norfolk, for plaintiff.

Don Stenberg, Atty. Gen. and L. Jay Bartel, Lincoln, for defendants.

BOSLAUGH, WHITE, CAPORALE, SHANAHAN, GRANT, and FAHRNBRUCH, JJ., and COLWELL, District Judge, Retired.

PER CURIAM.

The plaintiff, Edward Jaksha, a Nebraska resident and owner of taxable personal and real property in the state, seeks a declaratory judgment as to the constitutionality of 1991 Neb.Laws, L.B. 829, which the Legislature passed with an emergency clause, and the Governor signed into law on June 10, 1991. He brings this action against the State of Nebraska, Governor E. Benjamin Nelson, State Treasurer Dawn Rockey, Tax Commissioner M. Berri Balka, and Attorney General Donald Stenberg (State). In his petition and briefs the plaintiff asserts several grounds in support of his claim that L.B. 829 is unconstitutional.

I. SECTION 7

The plaintiff argues that § 7 of L.B. 829 violates the uniformity and special legislation clauses of the Nebraska Constitution, Neb. Const. art. VIII, § 1, and art. III, § 18, as well as the Equal Protection Clause of the federal Constitution, U.S. Const. amend. XIV. In order to address these arguments it is necessary to separately discuss § 7 as it relates to the 1991 tax year and as it relates to subsequent tax years.

1. 1991 TAX YEAR

For tax year 1991 only, § 7 of L.B. 829 exempts from the property tax rolls all personal property except motor vehicles registered for use on the state's highways. 1991 Neb.Laws, L.B. 829, § 7 (codified at Neb.Rev.Stat. § 77-202(12) (Supp.1991)). The plaintiff argues that by exempting virtually all personal property from taxation, yet retaining the tax on real property, L.B. 829 violates the mandate of article VIII, § 1, that real and personal property be equalized and taxed uniformly. See Grainger Brothers. Co. v. Bd. of Equalization, 180 Neb. 571, 144 N.W.2d 161 (1966) (real and personal property are in the same class for purposes of the uniformity clause). Though recognizing that a 1970 amendment to the state Constitution authorizes the Legislature to classify and exempt any or all personal property from taxation "in such manner as it sees fit," Neb....

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  • Calabro v. City of Omaha
    • United States
    • Supreme Court of Nebraska
    • 12 Mayo 1995
    ...principle of constitutional law that the construction and interpretation of the Constitution is a judicial function. Jaksha v. State, 241 Neb. 106, 486 N.W.2d 858 (1992); Davis v. General Motors Acceptance Corp., 176 Neb. 865, 127 N.W.2d 907 (1964). The Nebraska Constitution prohibits one b......
  • Jones v. Gale
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    ...indicating that the Legislature would have enacted the bill absent the invalid portion is included in the act. Jaksha v. State, 241 Neb. 106, 486 N.W.2d 858, 873 (1992). Where an initiative for an amendment to the state constitution is concerned, however, the Nebraska Supreme Court has said......
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    ...457, 111 S.Ct. 2395, 115 L.Ed.2d 410 (1991) ("The Constitution created a Federal Government of limited powers."); Jaksha v. State, 241 Neb. 106, 486 N.W.2d 858, 863 (1992) ("A state constitution is the supreme written will of the people of a state regarding the framework for their governmen......
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33 provisions
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    ...under the uniformity clause because it improperly shifts the property tax burden to real property owners. Jaksha v. State, 241 Neb. 106, 486 N.W.2d 858 Personal property and real property are both "tangible property" and must be equalized and taxed uniformly pursuant to this provision. MAPC......
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