Tax & Accounting Blog

Economic Downturn Reduced Value of Commercial Property in Nebraska

Blog, Commercial Real Estate, ONESOURCE, ONESOURCE Property Tax June 3, 2013

The Nebraska Tax Equalization and Review Commission has ruled that several commercial rental properties were overvalued as of January 1, 2009 because the Douglas County Assessor failed to consider the impact of the economic crisis that occurred during 2008 on the valuation of the subject properties.

 

The Douglas County Appraiser’s testimony and the Douglas County Assessment Reports indicated that:

  • The County’s mass appraisal income approach model used to value the subject properties was not reviewed or supplemented with data after the reappraisal on March 10, 2008 to account for the impact of the ongoing economic crisis on commercial properties in the competitive local market.
  • The taxpayer’s appraiser submitted a report that reflected market data and market rents as of January 1, 2009.
  • The Commission determined that the taxpayer’s appraisal for each property constituted the best evidence of value for tax year 2009 and reduced the valuations of the subject properties to those listed in the taxpayer’s appraisal report.            

(Miracle Hills I LP, Miracle Hills III LP, Miracle Hills V Ltd. Limited Partnership, Miracle Hills VI Limited Partnership, Miracle Hills VII Limited Partnership v. Douglas County Board of Equalization, Dkt. Nos. 09C-562; 09C-563; 09C-564; 09C-565; 09C-566; 09C-567, 05/16/2013 .)