Nebraska Administrative Code › Topic - TAX EQUALIZATION AND REVIEW COMMISSION › Title 442 - TAX EQUALIZATION AND REVIEW COMMISSION › Chapter 9 - EQUALIZATION DUTIES › Section 442-9-002 - Definitions

Current through June 17, 2024
The following definitions apply whenever the defined term is
				  used in this chapter or the Commission's orders unless the context of a term's
				  use requires use of a different definition.
002.01 Applicable Time Frame
An applicable time frame is the period from which sales may
				  be drawn for statistical studies.
002.02 Assessment/Sales Ratio
An assessment/sales ratio is a tool used under professionally
				  accepted mass appraisal methods to measure and evaluate the level and
				  uniformity of assessed values. The ratio is determined by dividing the assessed
				  value of a parcel of real property by the sales price of that parcel. The
				  phrase may also refer to the total assessed value of all real property parcels
				  of a particular class or subclass of real property sold during a particular
				  time frame divided by the total sales price of all real property parcels of
				  that class or subclass sold during that same time frame. The assessment/sales
				  ratio is expressed in terms of a percentage.
002.03 Class or Subclass of Real Property
A group of properties that share one or more characteristics
				  typically common to all properties in the class or subclass, but are not
				  typically found in the properties outside the class or subclass. Class or
				  subclass includes, but is not limited to classifications of agricultural land
				  and horticultural land in section
				  77-1363
				  (irrigated cropland, dryland cropland, grassland, wasteland, nurseries,
				  feedlots and orchards), parcel use, parcel type, location, geographic
				  characteristics, zoning, city size, and market characteristics for all
				  classifications of land so that the categories reflect uses appropriate for the
				  valuation of such land, a class or subclass based on market characteristics
				  shall be based on characteristics that affect the actual value in a different
				  manner than it affects the actual value of properties not within the market
				  characteristic class or subclass. Neb. Rev. Stat. 77-103.01
002.04 Coefficient of Dispersion
The Coefficient of Dispersion ("COD") is a tool used under
				  professionally accepted mass appraisal methods to measure the uniformity of
				  assessments. The COD is the average absolute deviation from the median stated
				  as a percentage. The COD is calculated by dividing the average absolute
				  deviation by the median assessment/sales price ratio and multiplying by 100 to
				  convert the ratio to a percentage.
002.05 Coefficient of Variation (COV)
A standard statistical measure of the relative dispersion of
				  the sample data about the mean of the data; the standard deviation expressed as
				  a percentage of the mean.
002.06 Confidence Interval
A range of values, calculated from the sample observations
				  that are believed, with a probability, to contain the true population parameter
				  (mean, median, COD). The confidence interval is not a measure of precision of
				  the sample statistic or point estimate, but a measure of the precision of the
				  sampling process (See Reliability).
002.07 Confidence level
The degree of probability associated with a statistical test
				  or confidence interval. For example, a 95 percent confidence interval implies
				  that were the estimation process repeated again and again, then 95 percent of
				  the calculated intervals would be expected to contain the true measure of a
				  parameter(such as the median, mean, or COD). A stated probability level refers
				  to the properties of the interval and not to the parameter
				  itself.
002.08 Established
				Indicator of Central Tendency
An indicator of central tendency utilized in generally
				  accepted professional mass appraisal techniques
002.09 Generally Accepted Mass Appraisal
				Techniques
Those techniques and methods described as professionally
				  accepted mass appraisal techniques and methods. See Chapter 2, § 001.46 of
				  these rules.
002.10 Indicator of
				Central Tendency
The result of measuring the tendency of most kinds of data to
				  cluster around some typical or central value. Indicators of central tendency
				  include the mean, median, and mode.
002.11 Level of Assessment
The common or overall ratio of assessed values to market
				  values.
002.12 Mean
The mean is a measure of central tendency. The mean is the
				  result of adding all of the values of an array and dividing by the number of
				  values.
002.13 Median
The median is a measure of central tendency. The median is
				  the value of the middle item in an uneven number of items arranged or arrayed
				  according to size; the arithmetic average of the two central items in an even
				  number of items similarly arranged; a positional average that is not affected
				  by the size of extreme values.
002.14 Mode
The mode is a measure of central tendency. In an array of
				  values the mode is the most frequently occurring value.
002.15 Price Related Differential
The Price Related Differential ("PRD") is a tool used under
				  professionally accepted mass appraisal methods to determine whether properties
				  of differing values are treated uniformly. The Price Related Differential may
				  indicate assessment bias and inequity between lower valued properties and
				  higher valued properties. A PRD that is under 1.00 indicates higher valued
				  properties are valued at a higher assessment level than lower valued
				  properties. When the PRD is over 1.00 it indicates lower valued properties are
				  valued at a higher level than higher valued properties.
002.16 Property Valued By the State
Property whose taxable value is determined by the Property
				  Tax Administrator and/or the Tax Commissioner.
002.17 Reliability
In a sampling process, the extent to which the process yields
				  consistent population estimates. Ratio studies are typically based on samples.
				  Statistics derived from these samples may be more or less likely to reflect the
				  true condition in the population depending on the precision or reliability of
				  the sample.
Representativeness, sample size, and sample uniformity all
				  contribute to reliability. Formally reliability is measure by sampling error or
				  the width of the confidence interval at a specific confidence level relative to
				  the central tendency.
002.18
				Representative sample
A sample of observations from a larger population of
				  observations, such that statistics calculated from the sample can be expected
				  to represent the characteristics of the population being
				  studied.
002.19 Sales ratio
				study
A ratio study that uses sales prices as proxies for market
				  values.
002.20 Sample
A set of observations selected from a population. If the
				  sample was randomly selected, basic concepts of probability may be
				  applied.
002.21 Sampling
				error
The error reflected in ratio study statistics that results
				  solely from the fact that a sample population is used rather than a census of
				  the population.
002.22
				Standard deviation
The statistic calculated from a set of numbers by subtracting
				  the mean from each value and squaring the remainders, adding together all of
				  the squares, dividing by the size of the sample less one, and taking the square
				  root of the result. When the data are normally distributed, one can calculate
				  the percentage of observations within any number of standard deviations of the
				  mean from normal probability tables. When the data are not normally
				  distributed, the standard deviation is less meaningful.
002.23 Standard error
A measure of the precision of a measure of central tendency;
				  the smaller the standard error, the more reliable the measure of central
				  tendency. Standard errors are used in calculation of a confidence interval
				  about the arithmetic mean and the weighted mean.
002.24 Statistics
Numerical descriptive data calculated from a sample, for
				  example, the median, mean, or coefficient of dispersion. Statistics are used to
				  estimate corresponding measures termed parameters, for the
				  population.
002.25 Taxing
				Authority
Counties, townships, cities, villages, school districts, and
				  all other subdivisions of the state and all governmental agencies having the
				  power to levy or to provide for the levy of general or special
				  taxes.
002.26 Time
				Adjustments
Changes made to the sales price of real property sold during
				  a particular time frame in order to account for general changes in market
				  value.