001.01 Actual value Actual value means the market value of real property in the ordinary course of trade. It is the typical amount the property will sell for, either when on sale in the open market or in an arm's-length transaction between a willing seller and a willing buyer, both of whom are knowledgeable about the property and its current and possible uses. Actual value may be determined using professionally accepted mass appraisal methods, including, but not limited, to the (1) sales comparison approach, (2) income approach, and (3) cost approach.
001.02 Appraisal Appraisal means a written opinion of value of real property based on an adequate description of the property, on a specified date, and supported by relevant data analysis. While appraisal, reappraisal, and mass appraisal are interchangeable terms for property taxation purposes, reappraisal may also mean performing an additional appraisal to correct an error in an earlier appraisal. For this Chapter, the term appraisal is used, unless the context requires otherwise. All appraisals must meet the standards as promulgated by the Appraisal Standards Board of the Appraisal Foundation in the Uniform Standards of Professional Appraisal Practice, effective as currently updated, including Standard 6, Mass Appraisal and Reporting in conjunction with existing "Statements on Appraisal Standards" and "Advisory Opinions". A copy of the Uniform Standards of Professional Appraisal Practice is on file at the office of the Tax Commissioner.
001.03 Appraisal process Appraisal firm means any individual or company that contracts with a county to do an appraisal, an appraisal update, or an appraisal maintenance project. Any firm that submits a proposal to provide appraisal services must comply with the requirements in this regulation
001.04 Appraisal firm Appraisal or assessed value adjustment means an action taken by the county assessor, Tax Equalization and Review Commission, or other lawful body that changes the valuation of a class or subclass of property by a percentage. The adjustment is based primarily on an assessment sales ratio study analysis
001.05 Appraisal update Appraisal process means a systematic analysis and documentation of the factors that affect the value of real property. It defines the problem, creates a plan to solve the problem, and gathers, classifies, analyzes, and interprets the necessary data into a written opinion of value. It must group similar properties so that all properties in a class or subclass are examined and valued together.
001.06 Appraisal maintenance, or pick-up work, is the collection of specific data related to new construction, remodeling, additions, alterations, and removals of existing buildings or structures. Pick-up work may also include: changes in zoning, use, or annexation; the addition, deletion, or change in characteristics of encumbrances such as leases, easements, or special programs (for example, the Conservation Reserve Program); and the addition, deletion, or change in characteristics external to the property, including, but not limited to, amenities such as paving, utilities and proximity to favorable or unfavorable influences, such as schools, libraries, city dumps, sewage treatment facilities, or meatpacking plants. The data must be gathered in a systematic process so that all properties are treated uniformly. The value of property analyzed in an appraisal maintenance project must be equalized with comparable properties.001.07 Appraiser Appraisal update or limited appraisal means an appraisal in which all or part of the data collection process is not necessary for an appraisal, but is needed for making adjustments on property values in a defined class or subclass. This includes, but is not limited to, recalibrating a market or cost model to implement current cost data, or adjusting value by a percentage, and then applying it uniformly to all property in a defined class or subclass.
001.08 Appraiser means a person who has the necessary qualifications, ability, and experience to estimate the value of real property. An appraiser is expected to perform valuation services competently and in a manner that is independent, impartial, and objective. 001.08A Appraisers employed by a county assessor are exempt from the Real Property Appraiser Act under Neb. Rev. Stat. § 76-2221.001.09 Assessment process for real property Assessment process for real property means the act of listing the description of all real property, determining its taxability, taxable value, and placing it on the assessment roll.
001.10 General data Comparative data means data used to compare unit values of similar or competing properties such as: replacement cost estimates; local or historic costs; sales information; and rental and expense data.
001.11 Specific Data Cost approach is the approach to value based on the principle of substitution, where an informed purchaser would pay no more for a property than what a substitute property with the same utility would cost to produce.
001.12 Comparative Data Data analysis is a process which organizes, develops, and displays the data in such a manner that derived values are supported, illustrated, and defended.
001.13 Data collection is a process to gather data relevant to the appraisal and assessment of property.001.14 Depreciation Division means the Nebraska Department of Revenue, Property Assessment Division.
001.15 Income Approach Depreciation means the loss of value from deterioration and/or obsolescence. Deterioration, or physical depreciation, is evidenced by wear and tear, decay, dry rot, cracks, encrustations, or structural defects. There are two types of obsolescence: functional obsolescence, which is shown by conditions within the property due to poor interior design, mechanical inadequacy or overadequacy, and inadequacy or overadequacy due to size, design, etc.; and locational obsolescence which is a component of economic obsolescence due to a suboptimal siting of an improvement and is shown by changes external to the property, such as neighborhood changes, environmental or use changes, legislation, and the like.
001.16 Sales Comparison (Market) Approach Digital imagery technology tools include current high-resolution street-view images, orthophoto images, and low-level oblique images. Geographic Information System (GIS) is an additional technological tool that may be used in certain circumstances to review property as specified in this regulation. This technology may incorporate change detection techniques that compare building dimension data and identify potential sketch discrepancies for further investigation.
001.16A Orthophoto images must collected at a minimum of 6 inch pixel resolution in urban areas. Rural areas must be collected at a minimum of 12 inch pixel resolution.001.16B Digital images must be no older than three years to be used in lieu of a field review or on-site inspection for assessment purposes.001.16C Each review using digital imagery technology must be detailed in the property record card and incorporated into the county assessor's six-year inspection and review cycle. As new technology becomes available in the appraisal and assessment field it must be approved by the Property Tax Administrator prior to use in the six-year inspection and review cycle.001.17 Field review means any inspection and review conducted at a property location. This review includes on-site inspections, interior inspections, listing, measuring, and taking updated photographs of the property.001.18 Income approach means the approach to value which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process.001.19 Inspection means the in-person review or examination of property. 012.19A Systematic inspection and review means the orderly, methodical, and planned process of inspecting and reviewing all parcels prioritized by neighborhood, market area, or assessor location. The planned process must include all sold and unsold property within the area identified for inspection. 001.19B Interior inspection means the on-site inspection and review that includes entering the buildings to inspect the interior details and condition of the interior components.001.20 Narrative Appraisal Report Listing means an on-site data gathering process that involves gathering all of the specific data necessary for the appraisal of each individual parcel.
001.21 Referee Market area means an area with defined characteristics within which similar properties are equally competitive in the minds of buyers and sellers.
001.22 Appraisal or assessed value adjustment Market analysis is a study of general real estate market conditions that affect the competitive supply, demand, and prices for particular types of facilities or properties.
001.23 Office review means any review conducted in the office without physical inspection of a property. This review may include a review of data collected regarding the property, digital imagery technology, and information obtained from the owner, lessee, or a third party knowledgeable about the property.001.24 Referee means an impartial credentialed appraiser or county assessor or deputy county assessor certificate holder who conducts protest hearings as the representative of, and under the direction of, the county board of equalization.001.25 Sales comparison approach means a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. Market approach, market data approach, and direct sales comparison approach are synonymous terms.001.26 Specific data means data which relates only to the specific parcel being appraised. This can include measurements, perimeter sketches, age determination, site plans, photos, building elevation sketches, the presence or absence of utilities, street and sidewalk improvements, floor plans, room counts, physical and functional condition observations, and any descriptive information necessary to develop a replacement cost new utilizing the prescribed cost manuals.001.27 Tax Commissioner means the Tax Commissioner of the Nebraska Department of Revenue.001.28 Valuation methodology means a formal written document which clearly communicates the elements, results, opinions, and value conclusions of the review. This report contains: the date of the review; the certification and signature of the reviewer; the purpose of the review; the qualifying conditions; information which defines the various neighborhoods, towns, or property groups which will be considered during the review process; a summary of market and income data; analysis, interpretation, and explanation of conclusions drawn from the data; explanation of the processing of the data; and, any maps, plans, charts, or other data which was used to support the review. Neb. Rev. Stat. §§ 77-112, 77-702, 77-1301.01, 77-1311, 77-1311.03, 77-1327, 77-1501, and 77-5027.
001.33 Inspect (Repealed)001.34 Inspection is the active process of inspecting or looking at, or examining critically (Repealed)350 Neb. Admin. Code, ch. 50, § 001