County of Webster v. Nebraska Tax Equal. & Rev. Comm.
296 Neb. 751
| Neb. | 2017Background
- Webster County challenged a TERC order that increased the assessed value of the "Majority Land Use Grass" subclass (grassland) by 6%, raising that subclass to 72% of market value and making overall agricultural land 69%.
- The Property Tax Administrator (Administrator) filed annual narrative and statistical reports with TERC recommending a 9% increase to Webster County grassland because local sales were insufficient and sales from surrounding counties were used in the sample.
- TERC issued a show-cause hearing; the county assessor contested inclusion of three sales (two Webster County sales later used as cropland, and one Nuckolls County parcel with partial timber cover) and argued the Administrator’s reports lacked sales-level detail.
- At the hearing, the Administrator’s witness explained that sales from comparable neighboring counties may be used, timbered grassland can still be classified as grassland, and the assessment division’s reports are based on the state sales file. TERC voted for a 6% increase.
- Webster County appealed, arguing (1) the Administrator’s reports were not competent evidence because they did not list each sale used, and (2) some out-of-county sales were not comparable to Webster County grassland.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether TERC may rely on Administrator's annual narrative/statistical reports without including every sale-level record | Webster: §77-5016(4) requires all records relied on be in the record; reports must list each sale, price, assessed value, and geographic details | TERC: §77-5027(3) does not require sale-by-sale detail; reports need only provide sufficient narrative/statistics and counties can contest at show-cause hearings | Held: Administrator's reports are competent evidence without listing each sale; statutes interpreted together do not mandate sale-level reporting |
| Burden at show-cause hearing to rebut Administrator's reports | Webster: Administrator must prove comparability and provide sale data; county need not disprove reports beyond absence of sales details | TERC: County must demonstrate why TERC should not rely on reports; show-cause places burden on county to rebut | Held: County bears burden at show-cause hearing to show TERC should not rely on Administrator's reports |
| Use of sales from surrounding counties to determine level of value | Webster: Borrowed sales may be noncomparable (e.g., different rainfall, partially wooded parcels) and thus should not be used | Administrator/TERC: Statute and regs allow use of comparable sales from similar market areas when local sample insufficient; classification rules permit wooded grazing to be grassland | Held: Use of neighboring-county sales permitted; Webster failed to show those sales were noncomparable |
| Whether the Nuckolls County parcel (25% timber) was improperly included | Webster: Parcel was only 75% grassland and failed an 80% majority-land-use standard | Administrator/TERC: Assessment-division definitions classify wooded grazing as grassland; county assessor in Nuckolls reported it as 80% grassland; public officers presumed to have performed duties properly | Held: Webster did not rebut inclusion; parcel inclusion was proper under division rules and presumption of proper local classification |
Key Cases Cited
- JQH La Vista Conf. Ctr. v. Sarpy Cty. Bd. of Equal., 285 Neb. 120, 825 N.W.2d 447 (Neb. 2013) (standard of appellate review for TERC final decisions)
- Brenner v. Banner Cty. Bd. of Equal., 276 Neb. 275, 753 N.W.2d 802 (Neb. 2008) (arbitrary agency action defined)
- Blakely v. Lancaster County, 284 Neb. 659, 825 N.W.2d 149 (Neb. 2012) (agency action arbitrary if disregards its own rules)
- In re Guardianship & Conservatorship of Kaiser, 295 Neb. 532, 891 N.W.2d 84 (Neb. 2017) (statutory-interpretation principles)
- In re Interest of Nizigiyimana R., 295 Neb. 324, 889 N.W.2d 362 (Neb. 2016) (plain-meaning statutory construction)
- In re Interest of Tyrone K., 295 Neb. 193, 887 N.W.2d 489 (Neb. 2016) (in pari materia construction of related statutes)
- Johnson v. Neth, 276 Neb. 886, 758 N.W.2d 395 (Neb. 2008) (presumption that public officers perform duties faithfully)