350 Neb. Admin. Code, ch. 12, § 002

Current through September 17, 2024

Section 350-12-002 - DEFINITIONS

002.01 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.

002.02 Assessment

Agricultural or horticultural sale means a sale of real property with a property parcel type code of 5, as listed on the property record card. See, Title 350 Neb. Admin. Code, Chapter 10.

002.03 Level of value

Arm's-length transaction means a sale between two or more parties, each seeking to maximize their positions from the transaction.

002.04 Assessment/sales ratio

Assessment means listing the description of all real property, determining whether it is exempt, determining its taxable value, and placing it on the assessment roll pursuant to Neb. Rev. Stat. § 77-126.

002.05 Assessment statistics

Assessment/sales ratio means the ratio calculated by dividing the assessed value of the parcel of real property by the selling price of that parcel. Studies utilizing the assessment/sales ratio are collectively called assessment/sales ratio studies.

002.06 Benchmark sale

Class or subclass of real property means a collection of properties that share one or more common characteristics that affect value, and that are typically not found in other properties outside the class or subclass. The characteristics that will determine a class or subclass include, but are not limited to: improvement status; parcel type; zoning; location; city size; parcel size; geographic characteristics; or market characteristics that are appropriate for the valuation of a class or subclass of real property pursuant to Neb. Rev. Stat. § 77-103.01.

002.06A For agricultural or horticultural land, class or subclass includes, but is not limited to: irrigated cropland; dry cropland; grassland; wasteland; nurseries; feedlots; and orchards.

002.06B Geographic characteristics are the physical characteristics of the earth, land, region, or site that may have an effect on value.

002.06C Market characteristics are the social and economic factors in the market that affect the value of real property.

002.07 Actual value

Commercial sale means a sale of real property with a property parcel type code of 2, 3, or 4, as listed on the property record card. See, Title 350 Neb. Admin. Code, Chapter 10.

002.08 Mean ratio

Division means the Nebraska Department of Revenue, Property Assessment Division.

002.09 Median ratio

Full actual consideration means the price paid or to be paid for the real property sold, whether paid in money or by any other thing of value, including, but not limited to: liens or mortgages assumed, or to be assumed; satisfaction of debt; and other property transferred or to be transferred as part of the selling price. Full actual consideration will be a reasonable approximation of the current market value of the real property. If significantly less than a reasonable approximation of current market value, the consideration will be treated as nominal. The amount of consideration and whether there is full actual consideration is to be determined as of the date stated on the deed.

002.10 Non-qualified sale

Level of value means the best estimate of the relationship of assessed value to actual value for a group of properties based upon an analysis of all information available to the Property Tax Administrator including, but not limited to, the assessment/sales ratio and the assessment practices study for each county for the various classes of real property.

002.11 Qualified sale

Non-qualified sale means a sale which has been identified through the sales verification process as a non-arm's-length transaction, or sales where the assessed value is affected by substantial change to the property since the sale.

002.12 Professionally-accepted mass appraisal techniques include standards recognized in the appraisal industry contained in publications of the International Association of Assessing Officers (IAAO) and Standard 6 of the Uniform Standards of Professional Appraisal Practice (USPAP). The publications referred to are available to the public for viewing during normal business hours, and are maintained at the Property Assessment Division's office in Lincoln, Nebraska. Additionally, practices or techniques may be developed from sources outside of IAAO or USPAP if these practices or techniques can be demonstrated as reliable, can be tested, and are not in conflict with existing professionally-accepted mass appraisal techniques or applicable statutory or regulatory provisions.

002.13 Sale

Property Tax Administrator will be abbreviated to PTA throughout this regulation.

002.14 Adjustment

Qualified sale means a sale which is an arm's-length transaction included in the sales file as determined by the county assessor or verification process of the Property Assessment Division.

002.15 Residential sale means a sale of real property with a property parcel type code of 1, 6, or 7, as listed on the property record card. See, Title 350 Neb. Admin. Code, Chapter 10.

002.16 Transfer

Sale means the transfer of property or an interest in property, in exchange for consideration of more than $100, or upon which more than $ 2.25 in documentary stamp taxes are paid. For the purposes of this definition, consideration means money or its equivalent.

002.17 Supplemental information

Sales roster means a listing of all sales that are in the state sales file for a specific time period.

002.18 Sale verification

Sales verification means the process of collecting, confirming, screening and documenting any nonqualification or an adjustment made to a sale relying on professional verification standards. See, Assessment Process Regulations, Chapter 50.

002.19 Qualified sales roster

Transfer means the conveyance of title or any interest in real property by a deed which requires filing a Real Estate Transfer Statement, Form 521 with the register of deeds.

002.20 Non-qualified sales roster

Valuation means the act or process of estimating actual value of real property, pursuant to Title 350 Neb. Admin. Code, Chapter 50.

002.21 Arm's length transaction

Valuation grouping means a grouping of parcels with similar characteristics that affect market value.

Neb. Rev. Stat. §§ 77-103.01, 77-112, 77-117, 77-126, 77-702, 77-705, 77-1327, and 79-1016.

002.22 Representative sample (Repealed)

002.23 Dispersion (Repealed)

002.24 Measures of central tendency (Repealed)

002.25 Coefficient of dispersion (Repealed)

002.26 [Repealed]

002.27 Class or subclass of real property (Repealed)

350 Neb. Admin. Code, ch. 12, § 002