VALUATION TRIVIA – MYTH OR FACT

• The Assessor change your value for no reason? True or False?
  False
  
  

• Does the Assessor set what your taxes are going to be? True or False?
  False   -  The Assessor sets valuation as of January 1^st each year.  The tax rates are set by October 20^th each year.  The taxing entities that use your tax dollars establish what your taxes will be.  The new taxes will be posted after the November 22nd Certification to the Treasurer.
  
  

• Who controls the valuation process in the State of Nebraska?
  The Assessor’s practices are governed by laws passed by the Nebraska Legislature.  The State of Nebraska, Department of Revenue, Property Assessment Division oversees the Assessors. 
  
  

• Why did my valuation change/increase this year?
  a) If your property was due for the 6-year inspection and reappraisal. State Statute 77-1311.03.
  
  b) A change in your property due to a building permit, removal of buildings, reported and unreported changes. Agricultural changes such as dry to irrigated, etc.
  
  c) A change in the market. This is dictated by the sellers and buyers in the market.  Property values in relationship to the selling prices.
  
  

• Will my valuation ever decrease? 
  Yes, if the market (the selling prices of homes) decreases.  It does not happen overnight since there are 2 years of sales in the study period required to be used for analysis by the State.
  
  

• If that’s what the house sold for, isn’t that what it’s worth?
  Not necessarily.  The sale price is an indicator of market value…but not exact “Proof” of market value.  Sale prices for property reflect the fact that some buyers are better negotiators than others are, some are more educated about the local market than others are, or some may have quick money to spend.  The Assessor uses sale prices to develop a mass appraisal model, which establishes the “most probable” selling price in individual properties in the entire area.  An appraisal is only an estimate of value.  Professionally accepted mass appraisal standards highlight that the market differs from a single sale price, and that the price a property brings today is not likely the same price it will bring tomorrow because of market variability.
  
  

• What happens if the Assessor does not change values to reflect what the market is doing? 
  If the Assessor is out of compliance with the required statistics, the State’s Tax Equalization and Review Commission (TERC) will adjust the county’s values for the Assessor so they are compliant.
  

If you have any other questions, please feel free to contact the Assessor’s Office and ask.  Thank you.

To learn more about the valuation process in Nebraska, please watch the short video prepared by Nebraska Association of County Officals titled:  Nebraska County Assessors.

DISCLAIMER:  This legal description should not be used to prepare legal documents.  Please verify legal descriptions with the County Clerk's office.  Thank you.