Attorney General's News Release

March 30, 1998

Agreement between Nixon, Nebraska AG protects Missouri farmers from double taxation

Jefferson City, Mo. — Missouri farmers caught in the border dispute between Nebraska and Missouri will have protection from double taxation due to an agreement Attorney General Jay Nixon signed today with Nebraska Attorney General Don Stenberg.

The agreement protects landowners from paying back taxes on property that has been in dispute, and it prevents Nebraska from attempting to collect taxes on disputed property on the east side of the Missouri River. The agreement comes as the Nebraska legislature nears approval of a compact between the two states to permanently establish the border in the middle of the Missouri River. As the Missouri River frequently shifted prior to channelization in the 1930s, sections of land in one state would end up on the other side of the river, prompting rival claims by the states.

"Those with land that had shifted to the Missouri side were appropriately paying Missouri taxes but were also being assessed double taxes by Nebraska, a higher tax state," Nixon said. "The situation was blatantly unfair to them and had the potential to jeopardize their property title if they did not pay.

"Today's agreement is a milestone in resolving a conflict that has been going on for decades," Nixon said. "Those Missouri landowners no longer will have to worry about being assessed back taxes from a government on the other side of the river."

The two states and five counties agreed today to relinquish all claims for taxes that have accrued on property across the river prior to the final passage of the Missouri-Nebraska Boundary Compact. The compact already has been approved by the Missouri General Assembly, and passage is expected in Nebraska in the next few weeks. Otoe, Nemaha and Richardson counties in Nebraska and Holt and Atchison counties in Missouri are all affected and could have had potential claims for back taxes.

"I appreciate the hard work that has gone into this from both sides," Nixon said. "There has been legal maneuvering on this issue for many years, and we are happy to lay this controversy to rest."

The boundary compact setting the border in the middle of the Missouri River does not affect a 5,000-acre tract known as McKissick's Island. A 1904 U.S. Supreme Court decision ruled that McKissick's Island is part of Nebraska.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818