Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 350 - Nebraska Department of Revenue, Property Assessment Division › Chapter 50 - Reporting Requirements and Appraisal Process › Section 350-50-001 - DEFINITIONS

Current through June 17, 2024
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.