Burdess v. Washington Cty. Bd. of Equal.
298 Neb. 166
Neb.2017Background
- William Burdess owned two agricultural parcels in Washington County with homesites and stipulated wasteland acreage (25.56 acres of 80; 29.12 acres of 60).
- Burdess elected special valuation for his agricultural land. Wasteland assessed at $290/acre (2013), $335/acre (2014), $450/acre (2015–2016); homesite acres assessed at $41,000 each year.
- Burdess protested to the Tax Equalization and Review Commission (TERC) for tax years 2013–2016, arguing wasteland should be valued at $0/acre and his homesite should match a nearby comparable (the Sully property, assessed at $27,000 in 2014).
- At hearing, assessor explained special valuation methodology: base special value on arm’s-length sales of comparable agricultural land (used sales from Burt County) and apply rules in 350 Neb. Admin. Code, ch. 11.
- TERC found Burdess failed to prove wasteland special value should be $0 and that homesite valuation need not equalize with Sully property because properties lie in different market areas with different physical characteristics.
- Burdess appealed to the Nebraska Supreme Court; the Supreme Court affirmed TERC’s December 2016 order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Valuation of wasteland under special valuation | Wasteland is not suitable for agriculture, so special value must be $0/acre | Special value is determined by rules and market analysis of comparable agricultural sales; wasteland can have special value > $0 | TERC’s valuation affirmed; competent evidence supported nonzero special value |
| Homesite acreage valuation equality | Homesite should be equalized to nearby Sully property (half mile away) | Properties are in different market areas with different terrain and flood characteristics; assessor used comparable sales within same market area | TERC’s homesite valuation affirmed; difference justified by market-area and physical differences |
Key Cases Cited
- Lozier Corp. v. Douglas County Board of Equalization, 285 Neb. 705 (review standard for TERC orders) (establishes standard of review for TERC decisions)