Current through March 20, 2024
The appraisal process shall contain, but not be limited to,
the following steps:
002.01 Definition
of the problem
The appraisal process must contain the following steps:
definition of the project; preliminary survey and planning; data collection;
data analysis; application of the data; and final value
estimates.
002.02
Preliminary Survey and Planning
The county assessor must conduct an annual review of the
quality of appraisal within the county through the use of assessment/sales
ratios, coefficients of dispersion, price related differentials, confidence
intervals, and on-going cost, income, and market analyses.
002.02A After completing the appraisal
quality review, the county assessor must determine the appraisal needs of the
county for the following year and inform the county board and the Division by
developing a Plan of Assessment.
002.02B The county assessor must design,
document, and initiate a process to systematically inspect and review each
parcel of real property at least once every six years. Classes and subclasses
that are not subject to inspection in a given year, must be analyzed and if
necessary, adjusted based on market analysis and indicators of the level of
value to arrive at assessments that reflect market value.
002.03 Data Collection and Analysis
The county assessor must identify and document the resources
necessary to complete the appraisal project. Planning documents can include the
following: the development of appraisal specifications; obtaining the necessary
materials; and hiring, training, or contracting for any personnel necessary to
accomplish the needed appraisal. All appraisal contracts must comply with this
Chapter.
002.04 Application
of the data
Methods of data collection can include items A-F
below.
002.04A Interviews or
questionnaires about replacement cost, age of the property, sale price,
circumstances and financing of sold properties, and income or expense data for
properties which are rented.
002.04B Field visit and inspection of the
actual property amenities. The inspection process must take place within view
of the property being inspected. The degree of the inspection is determined
primarily by the county assessor and described in the plan of assessment, or at
the discretion of the inspector during the course of the inspection.
002.04C Digital imagery technology. Any
changes discovered with these technological tools must be followed up with an
on-site inspection. Each digital review must be noted on 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.
002.04D Federal, state, or local government
entity data including the Farm Service Agency's current land use maps, the
Natural Resources Conservation Service's soil information, Nebraska Department
of Natural Resource's well registration information, and local Natural Resource
District's water and irrigation information.
002.04E Existing property record files
including appraisal maintenance and pick-up work. The data must be accurate,
current, and relevant to the date of the appraisal.
002.04F Any forms filed with the
County.
002.05 Data
Analysis must be included in the valuation methodology to show how the county
assessor arrived at value.
002.05A To analyze
a property's uses and restrictions, the analysis must consider the full
description of the physical characteristics of the property and the property
rights being valued. Actual value may be determined using professionally
accepted mass appraisal methods, including the (1) sales comparison approach,
(2) income approach, and (3) cost approach.
002.05B The ultimate selection of a
predominant approach for use in a mass appraisal should be discussed and
defended in the valuation methodology and any deviations from the predominant
narrative conclusions should be noted and briefly discussed on an individual
basis.
002.06 Final
Value Estimate
Application of the data must include processing, review, and
starting value phases for each parcel. The processing phase consists of
displaying all relevant data in an organized fashion for each individual parcel
on appropriate worksheets and record files. The review phase consists of
examining each parcel and the data relevant to that parcel to prepare an
estimate of value. The starting value is prepared for each individual
parcel.
002.06A Land must be valued as
though vacant and available to develop to its highest and best use. Land
valuation must be conducted in the manner described in the sales comparison
approach. When insufficient market data is available, an income approach such
as a land residual technique can be used.
002.06B The application of the sales
comparison approach includes the comparison and valuation on a unit basis to
properties that have not sold but are otherwise physically, functionally, and
economically similar. Any necessary adjustments to that base value must be made
for dissimilarities.
002.06C The
application of the cost approach includes the development of a replacement cost
new using the prescribed manuals and applying all applicable forms of
depreciation developed in the data analysis portion of the appraisal.
002.06D The application of the income
approach includes comparing all or portions of properties with known rental
levels, expenses, and lease terms, to properties which are physically,
functionally, and economically similar but are not presently rented or at
economic rent. An estimate of economic rent is made, using appropriate rates,
multipliers, and adjustments developed in the data analysis portion of the
appraisal.
002.06E Whether applying
the sales comparison, cost, or income approach, an inspection of the property
must be completed to assure that all variables and adjustments have been
property considered and that equalization with similar properties has been
accomplished by using the chosen approach. The final step is the calculation of
the value indicated by the application of the chosen approach.
002.07 The narrative appraisal
report
In correlating and reconciling the final values the county
assessor or appraiser must examine the preliminary value for every parcel and
select the most logical, best supported, and most defendable indication of
value based upon the following:
002.07A The amount and reliability of the
data collected in each approach to value;
002.07B The inherent strengths and weaknesses
of each approach to value; and
002.07C The relevancy of each approach to the
appraisal subject.
002.08 The county assessor or appraiser must
present a final value estimate at the end of the correlation and reconciliation
process. The final value estimate indicates land value, improvement value, a
leasehold value if applicable, and the total value.
002.09 Informal hearing process. Between
January 15 and March 1 counties with a population of at least 150,000
inhabitants, must conduct informal hearings to solicit any undiscovered data
relevant to the valuation of the individual property being appraised or to the
appraisal in general. To facilitate the informal hearing process a county
assessor may choose to employ a referee or referees to act on behalf of the
county assessor and/or appraiser.
002.09A The
county assessor must send a notice of the estimate of final value or post to
the county assessor website the estimate of final value notifying the owner or
lessee who is responsible for paying property taxes.
002.09B The county assessor or appraiser must
analyze the impact of any recommended adjustments resulting from informal
hearings and extend the adjustments to similar properties to ensure
equalization. A supplemental valuation methodology amending the original
valuation methodology must be added to the report. The supplemental valuation
methodology must describe the changes made as a result of the hearings and
further describe general changes made to maintain equalization.
002.09C For counties with less than 150,000
inhabitants, the county assessor may conduct informational hearings to solicit
any undiscovered data relevant to the valuation of the individual property
being appraised or to the appraisal in general.
002.10 The county assessor is responsible for
implementing these regulations regardless of whether the appraiser is the
county assessor, a member of the county assessor's staff, a contracted or
shared employee, or an independent contractor.
Neb. Rev. Stat. §§
77-202.11,
77-702,
77-1301.01,
77-1311,
and
77-1311.03.
