The Nebraska Supreme Court will decide whether the city of Omaha can continue to assess a 2.5 percent dining tax on all restaurants within city limits.
The appeal comes from two Omaha restaurants and an owner who sued to stop the tax, saying it amounts to a sales tax that the city does not have the authority to enact without a referendum. The restaurants say that even as an occupation tax, it exceeds what state law allows.
In April, Douglas County District Judge Marlon Polk dismissed
the lawsuit, upholding the tax.
The tax, imposed on restaurant, bar and catering bills, went
into effect in October 2010 and has raised millions of dollars for
The Nebraska Supreme Court will hear arguments in the case on