350 Neb. Admin. Code, ch. 23, § 003

Current through September 17, 2024

Section 350-23-003 - VALUATION

003.01 The base valuation for historically significant property is the value for the property last certified by the assessor at the time of the property owner's application for a preliminary certificate of rehabilitation from the State Historic Preservation Officer.

003.01A The property owner shall contact the assessor to obtain a certification of the last certified value at the time of the application for a preliminary certificate of rehabilitation. Such certification shall be provided in writing to the property owner, who will attach it to the application filed with the State Historic Preservation Officer.

003.01B If the request for a certification of the base value is received by the assessor prior to August 20, the value certified by the assessor would be the value certified by the assessor for the prior year. If the request for the certified value is received by the assessor after August 20, the certified value will be for the current valuation year.

003.01C When the assessor receives a request for a certified value from a property owner for the purposes of an application for a preliminary certificate of rehabilitation, he or she shall note the base value in the record file for the property so that in the event a final certificate of rehabilitation is issued, the assessor shall have a record of the base value to be applied.

003.02 Until the assessor receives a copy of a final certificate of rehabilitation from the State Historic Preservation Officer, the property shall be valued at its actual value each year.

003.03 The issuance of a final certificate of rehabilitation by the State Historic Preservation Officer shall trigger the application of the base valuation. When a final certificate is issued for the property, the State Historic Preservation Officer shall send a copy to the assessor within seven days of the issuance of the certificate.

003.03A Upon receipt of the final certificate of rehabilitation, the assessor shall apply the base value to the property in the assessment year following the issuance of the final certificate of rehabilitation.

003.03B When the final certificate of rehabilitation is issued, the assessor shall value the property at no more than the base value for eight years, beginning in the assessment year following the issuance by the State Historic Preservation Officer of the final certificate of rehabilitation.

003.03C During the historically significant valuation period the property shall be assessed at no more than the base value, even if increases to the property's actual value occur, e.g. reappraisal or increased ordered by the Tax Equalization and Review Commission.

003.03D During the historically significant valuation period, if the property's actual value declines below the base value, it shall be assessed at it's actual value for that particular year, and at such time the actual value increases the property shall be assessed at no more than the base value.

003.03E The assessor shall determine the actual value of the property each year and maintain both the actual value and certified base value for the property in his or her records. The base value is used for taxation purposes during the historically significant valuation period. The base value and a portion of the actual value are used during the actual value phase-in period.

003.03F In the event that a final certificate of rehabilitation is revoked by the State Historic Preservation Officer, the property shall be assessed at its actual value in the assessment year following revocation.

003.04 After the historically significant valuation period has expired, the actual valuation for historically significant property shall be phased in over a four year period as follows:

003.04A In the first year of the phase-in, the assessed valuation shall be the base value plus twenty-five (25) percent of the difference between the base value and the actual value of the property.

003.04B In the second year of the phase-in, the assessed valuation shall be the base value plus fifty (50) percent of the difference between the base value and the actual value of the property.

003.04C In the third year of the phase-in, the assessed valuation shall be the base value plus seventy-five (75) percent of the difference between the base value and the actual value of the property.

003.04D In the fourth year of the phase-in, the assessed valuation of the property shall be its actual value.

003.05 Example of assessment process

Year 1-Assessor certifies a base value of $50,000.00 for a property on the National Register of Historic Places.

Year 2-Assessor values property on January 1 at $60,000.00 and the property owner applies for and obtains a preliminary certificate of rehabilitation in June from the State Historic Preservation Officer. Renovation begins on the property.

Year 3-Assessor values property on January 1 at $65,000.00. Renovation continues on the property.

Year 4-Assessor values property on January 1 at $65,000.00 but also applies a 10% increase ordered by the Tax Equalization and Review Commission. The assessed value of the property is now $71,500.00. The renovation work is completed and a final rehabilitation certificate is issued by the State Historic Preservation Officer.

Years 5-12 -Assessor values the property at no more than $50,000.00 (base value from year one). (The assessor shall determine the actual value of the property each year and maintain records for both the actual value and certified base value for the property.)

Year 13-Assessor values property at base value plus 25% of the difference between the base value and actual value. If actual value is $140,000.00, then the assessed value for this year should be $72,500.00. ($50,000.00 base value + $22,500.00 (140, 000.00 - 50, 000.00 = 90, 000.00 x .25 = 22, 500.00) = $72,500.00.

Year 14-Assessor values property at base value plus 50% of the difference between the base value and actual value. If actual value is still $140,000.00, then the assessed value for this year should be $95,000.00

Year 15-Assessor values property at base value and actual value. If actual value has increased to $150,000.00, then the assessed value for this year should be $125,000.00.

Year 16-Assessor values the property at its full actual valuation of $150,000.00.

003.06 Whenever the assessed valuation changes for historically significant property, a notice of valuation change is required to be issued by the assessor. For example, when the assessed valuation of the property changes from actual value to base value following the issuance of a final certificate of rehabilitation, the assessor shall issue a notice of valuation change as required by Neb. Rev. Stat. Section 77-1315. During the period in which the property is assessed at its base value with no change, a notice of valuation change is not required. If the actual value of the property declines and is less than the base value, a valuation change notice is required. If the actual value of the parcel subsequently increases, the value of the property shall go back to the base value and a notice of valuation change is required. A notice of valuation change is required if the final certificate of rehabilitation is revoked and the property assessed value changes from the base value to actual value. Notice of valuation change shall be required in each year of the four year period in which the assessed value of the property goes from the base value to actual value.

003.07 The assessed valuation for historically significant property may be protested in the same manner as other real property pursuant to Neb. Rev. Stat. Section 77-1502

350 Neb. Admin. Code, ch. 23, § 003