NTF Issue Paper: Taxplan22. 5-08.

NEBRASKA TAXPAYERS FOR FREEDOM ISSUE PAPER:
REAL PROPERTY ASSESSMENT & VALUATION.

DEFINITIONS. Real property in Nebraska includes lands, structures, fixtures, and improvements. It also includes mines, minerals, quarries, and wells.

PROPERTY VALUATION. The county assessor values at actual value all real property in a county, except that the state property tax administrator values railroads and public service entities. Actual valuation for tax purposes means the market value of property. Actual value and market value are like terms. The actual value of a parcel of real estate is the most likely price paid for it as agreed to by buyer and seller. County assessors use professionally-accepted appraisal techniques, such as comparison with sales of property, income production, and cost approach. State law requires real property assessed at between 92-100% of actual value and agricultural and horticultural land assessed at 70% of actual value (see NTF Issue Paper: Property Valuation Relief Bill).

ASSESSMENT PROCESS. Between Jan.-March of every year, the county assessor updates and revises the real property assessment roll. He examines how recent home sales impact residential values in neighborhoods and commercial sales influence commercial property types. Valuations change because of additions, improvements like remodeling or rehabilitation, fluctuations in current market trends, or order from the state property tax administrator. Between March 20 and June 1, each assessor adjusts real property values for actions by the agricultural and horticultural land valuation board and the Tax Equalization & Review Commission (TERC). By June 1, each assessor must notify the owner of each parcel of real property assessed at a value different from the previous year. The assessment roll complete, the county assessor publishes a certification of such and that he has mailed notices of valuation changes. He announces the final date for filing protests with the county board of equalization.

EQUALIZING PROPERTY. The TERC is responsible for yearly equalizing the value of all real property. The commission can raise or lower by a percentage the valuation of a class or subclass of property in a county or tax district in order to achieve intercounty equalization. This equalization action must end by August 10. The county board of equalization is supposed to equalize the valuation of individual parcels of real property in a county. The county board may petition the TERC to consider an adjustment to a class or subclass of real property within its county.

CHALLENGING YOUR ASSESSMENT. Anyone may protest the assessment of real property. For valuation data on a specific Douglas Co. property, go to the assessor web site and click on the valuation information icon at left. You must type in owner name and address. One must file a protest with a county board of equalization on or before June 30. File a protest in triplicate and include a written statement of the reason(s) why the board should change the assessment. If one requests a reduction in valuation, an owner waives notice of an increase in the valuation should the board find the property undervalued. Between June 1 and July 25, the board reviews protests. It has the authority to appoint referees to hear protests, but the board makes the final decision. For additional information on statutes, exemptions, etc., see the Property Assessment Div. of the NE Dept. of Revenue, http://pat.ne.gov/

SPECIFICS. Valuations of property have skyrocketed for homes and businesses all over Nebraska. If you think that your assessment is over 100% of market value or unfair compared to other parcels, contact the county assessor office and meet with an appraiser. If the inside of your house is in poor condition or outdated, the assessor can schedule an interior inspection with you. Contact the office of your county assessor or county clerk before June 30. In Douglas County, call 444-7060, or 444-7185 for homestead exemption information. One must file for homestead exemption between Feb. 1 and June 30. Download an appeal form from the Board of Equalization web site, http://www.boardofequalization.org, or obtain one from county clerk. File a protest by mail to: Douglas County Board of Equalization, % County Clerk, 1819 Farnam Street, Room H08, Omaha, NE. 68183-0008. Include documentation supporting your request for a lower valuation, e.g., appraisals, photos of your home inside and outside, valuation comparisons with neighboring homes of the same layout (check web site www.dcassessor.org for adjacent addresses), or sale prices of comparable houses. If your property produces income, send income and expense statements and rent rolls to document the income stream. Unless you produce evidence to the contrary, the law requires an assumption that an assessment is correct. In Sarpy County, to request a protest form, call 595-4486, go online at www.sarpy.com, or visit the county clerk office at 1210 Golden Gate Drive, #1118, in Papillion. Within 7 days after a final determination by the county board, the county clerk notifies a protestor of action taken. If dissatisfied with action taken by your county board of equalization, you may appeal its decision to the TERC on or before August 24 for a $25 fee. Appeal forms are available from the county board of equalization and county clerk offices in July. Most appeals are heard in the calendar year after filing. Those dissatisfied with TERC decisions may appeal directly to the NE State Court of Appeals in Lincoln within 30 days of the TERC decision.

Research and documentation for this issue paper done by Doug Kagan and Steve Sfiers, with express prior permission granted for its use by Citizens for Local Control, Cherry Taxpayers, Dawes County Taxpayers, and other groups in the Tax Freedom Network. 6-07.