S-25-0437 Richard and Ellen Slosburg (Appellants) v. Nebraska Department of Revenue and James Kamm, in his official capacity as Nebraska Tax Commissioner (Appellees).
Appeal from the District Court for Lancaster County, Judge Matthew O. Mellor
Attorneys: Andre R. Barry and Harrison J. Kratochvil (Cline Williams Wright Johnson & Oldfather for Appellants), Jonathan S. Franklin and Charlotte Kelly (Norton Rose Fulbright US LLP as pro hac vice for Appellants), and L.J. Bartel and Lincoln J. Korell (Nebraska Attorney General’s Office for Appellees)
Civil: Residency and taxation of an out-of-state limited partnership
Proceedings Below: Appellants argued that the Nebraska Tax Commissioner erred when it determined that they were Nebraska residents in 2016 and erred when it determined that they owed a tax deficiency for 2016. In an appeal to the district court, it affirmed. Appellant petitioned to bypass the Nebraska Court of Appeals, which the Nebraska Supreme Court granted and transferred this case to its docket.
Issues: Appellants assign the following errors: 1) The district court acted arbitrarily in failing to consider and give weight to evidence supporting the Appellants’ testimony that they intended to remain permanently in Texas, including their payment of taxes to the State of Nebraska as Texas residents in 2014 and 2015; 2) The district court committed an error of law in ruling that Nebraska’s differential treatment in taxation of non-Nebraska income derived from limited partnerships, on the one hand, and LLCs and S corporations, on the other hand, does not violate the prohibition against special legislation found in Art. III, § 18 of the Nebraska Constitution; and 3) The district court committed an error of law in ruling that Nebraska’s differential treatment in taxation of non-Nebraska income derived from limited partnerships, on the one hand, and LLCs and S corporations, on the other hand, does not violate guarantees of equal protection in the Nebraska and U.S. Constitutions.