County of Webster v. Nebraska Tax Equal. & Rev. Comm., 296 Neb. 751

Webster County challenged a Tax Equalization and Review Commission (TERC) order increasing the assessed value of the "Majority Land Use Grass" subclass (agricultural grassland) by 6%, raising its level of value to 72% and the countywide agricultural level to 69%.
The Nebraska Property Tax Administrator (Administrator) had recommended a 9% increase after statistical analysis of sales; the Administrator used a 3-year sales study and supplemented Webster County sales with comparable sales from surrounding counties when Webster’s sample was inadequate.
County assessor disputed inclusion of three sales used by the assessment division: two Webster County sales she had disqualified due to post-sale change of use, and one Nuckolls County sale with partial timber cover she claimed was not comparable.
At the show-cause hearing, Administrator witnesses explained sales-file procedures and why the contested sales were properly included; TERC considered additional analyses and voted for a 6% increase.
Webster County appealed, arguing (1) the Administrator’s report lacked competent evidence because it did not list every sale used and (2) some out-of-county sales were not comparable.

Issue	Plaintiff's Argument (Webster County)	Defendant's Argument (TERC/Administrator)	Held
Whether TERC may rely on the Administrator’s annual narrative/statistical reports without including the underlying sales-file entries for each transaction	Reports are incomplete under Neb. Rev. Stat. § 77-5016(4); assessment division must list each sale, selling price, assessed value, and geographic details used to support adjustments	Statutes governing equalization (§§ 77-5026, 77-5027) do not require that level of detail; assessors have access to sales files and opportunity to protest at hearing	Court held Administrator’s reports are competent evidence without reproducing every sales-file entry; counties must show at hearing why TERC should not rely on the reports
Whether assessment division improperly used noncomparable out-of-county sales (e.g., Nuckolls County parcel with timber)	Nuckolls sale was only 75% grass (25% timber) and therefore not comparable under an 80% majority-use standard	Assessment division regulations treat wooded grazing land as grassland; Nuckolls had reported the sale as 80% grass; assessor presented no contrary evidence	Court held Webster failed to show the out-of-county sale was noncomparable; inclusion was permissible

JQH La Vista Conf. Ctr. v. Sarpy Cty. Bd. of Equal., 285 Neb. 120 (statutory standard: appellate review of TERC orders for error on the record)
Brenner v. Banner Cty. Bd. of Equal., 276 Neb. 275 (administrative decisions arbitrary if made in disregard of facts)
Blakely v. Lancaster County, 284 Neb. 659 (agency action contrary to its substantive rules is arbitrary)
In re Guardianship & Conservatorship of Kaiser, 295 Neb. 532 (statutory interpretation is a question of law reviewed de novo)
Johnson v. Neth, 276 Neb. 886 (presumption that public officers perform duties faithfully)