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      Court Rules in Kearney County vs. KAAPA Ethanol Dispute

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      The Nebraska Supreme Court has ruled in Kearney County's favor in a long-running dispute with KAAPA Ethanol Plant.

      The state supreme court ruled that Kearney County does not have to return money to KAAPA Ethanol for overpaid taxes.

      Previously, the Kearney County District Court ruled that Kearney County taxed KAAPA Ethanol twice for processing equipment in 2006.

      KAAPA's equipment was taxed by the county as both personal property and real property. The court ruled that Kearney County refund KAAPA over $480,000.

      However, the county appealed the decision. And although the Nebraska Supreme Court agreed that KAAPA was unfairly taxed twice, they say the county followed the law.

      The court says it is not fair to KAAPA to pay taxes twice on the same equipment, but it would also not be fair to punish Kearney County when it followed state law.

      The supreme court says that legislature may need to clarify the law to prevent these situations in the future.

      And while thestate supreme court says it's not fair to KAAPA to pay taxes twice on the sameequipment...

      The court alsosays it's not fair to punish Buffalo County when it followed state law.

      The supremecourt says the legislature may need to clarify the law to prevent thesesituations in the future.

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