§ 77-1371 — Comparable sales; use; guidelines

Comparable sales are recent sales
of properties that are similar to the property being assessed in significant
physical, functional, and location characteristics and in their contribution
to value. When using comparable sales in determining actual value of an individual
property under the sales comparison approach provided in section 77-112 , the
following guidelines shall be considered in determining what constitutes a
comparable sale:
(1) Whether the sale was financed by the seller and included
any special financing considerations or the value of improvements;
(2) Whether zoning affected the sale price of the property;
(3) For sales of agricultural land or horticultural land as
defined in section 77-1359 , whether a premium was paid to acquire property.
A premium may be paid when proximity or tax consequences cause the buyer to
pay more than actual value for agricultural land or horticultural land;
(4) Whether sales or transfers made in connection with foreclosure,
bankruptcy, or condemnations, in lieu of foreclosure, or in consideration
of other legal actions should be excluded from comparable sales analysis as
not reflecting current market value;
(5) Whether sales between family members within the third
degree of consanguinity include considerations that fail to reflect current
market value;
(6) Whether sales to or from federal or state agencies or
local political subdivisions reflect current market value;
(7) Whether sales of undivided interests in real property
or parcels less than forty acres or sales conveying only a portion of the
unit assessed reflect current market value;
(8) Whether sales or transfers of property in exchange for
other real estate, stocks, bonds, or other personal property reflect current
market value;
(9) Whether deeds recorded for transfers of convenience, transfers
of title to cemetery lots, mineral rights, and rights of easement reflect
current market value;
(10) Whether sales or transfers of property involving railroads
or other public utility corporations reflect current market value;
(11) Whether sales of property substantially improved subsequent
to assessment and prior to sale should be adjusted to reflect current market
value or eliminated from such analysis;
(12) For agricultural land or horticultural land as defined
in section 77-1359 which is or has been receiving the special valuation pursuant
to sections 77-1343 to 77-1347.01 , whether the sale price reflects a value
which the land has for purposes or uses other than as agricultural land or
horticultural land and therefor does not reflect current market value of other
agricultural land or horticultural land;
(13) Whether sales or transfers of property are in a similar
market area and have similar characteristics to the property being assessed; and
(14) For agricultural
land and horticultural land as defined in section 77-1359 which is within
a class or subclass of irrigated cropland pursuant to section 77-1363 , whether
the difference in well capacity or in water availability due to federal, state,
or local regulatory actions or limited source affected the sale price of the
property. If data on current well capacity or current water availability is
not available from a federal, state, or local government entity, this subdivision
shall not be used to determine what constitutes a comparable sale.
The Property Tax Administrator may issue guidelines for assessing
officials for use in determining what constitutes a comparable sale. Guidelines
shall take into account the factors listed in this section and other relevant
factors as prescribed by the Property Tax Administrator.

Legislative History

Source: Laws 1989, LB 361, § 4; Laws 1995, LB 490, § 142; Laws 2000, LB 968, § 56; Laws 2001, LB 170, § 16; Laws 2003, LB 295, § 3; Laws 2009, LB166, § 13; Laws 2012, LB750, § 2; Laws 2014, LB1098, § 17. Annotations: Subsection (3) of this section does not pertain to a compilation of a sales file under subsection (2) of section 77-1327. Shaul v. Lang, 263 Neb. 499, 640 N.W.2d 668 (2002).