350 Neb. Admin. Code, ch. 17, § 002

Current through September 17, 2024

Section 350-17-002 - DEFINITIONS

002.01 Class or subclass of real property

Class or subclass of real property means a collection of properties that share one or more common characteristics that affect value, and that are not found in other properties outside the class or subclass pursuant to Neb. Rev. Stat. § 77-103.01.

002.01A For agricultural or horticultural land, class or subclass includes but is not limited to: irrigated cropland; dry cropland; grassland; wasteland; nurseries; feedlots; orchards; location; geographic characteristics; and other market characteristics that are appropriate for the assessment of the class or subclass of agricultural or horticultural land.

002.01B For all other real property, class or subclass includes, but is not limited to: improvement status; parcel type; zoning; location; city size; parcel size; geographic characteristics; or market characteristics that are appropriate for the valuation of a class or subclass of real property. For the purposes of this regulation, market characteristics means the social and economic factors in the market that affect the value of real property. Geographic characteristics means the physical characteristics of the earth, land, region, or site that may have an effect on value.

002.02 Clerical error

Clerical error means transposition of numbers, mathematical error, computer malfunction causing programming and printing errors, data entry error, items of real property other than land identified on the wrong parcel, incorrect ownership, or certification of an incorrect valuation to political subdivisions pursuant to Neb. Rev. Stat. § 77-128.

002.03 Coefficient of dispersion

Coefficient of dispersion means a measure of assessment uniformity. It is the average absolute deviation calculated about the median and expressed as a percentage of the median.

002.04 Coefficient of variation

Coefficient of variation means the measure of the relative dispersion of the sample data set about the mean. It is the standard deviation expressed in terms of a percentage of the mean

002.05 Confidence interval

Confidence interval means a calculated range of values in which the measure of central tendency is expected to fall.

002.06 Confidence level

Confidence level means the defined degree of confidence in a confidence interval which is commonly stated on a percentage basis.

002.07 Data set

Data set means the sales data pertaining to a class or subclass of real property during a study period.

002.08 Direct equalization

Division means the Nebraska Department of Revenue, Property Assessment Division.

002.09 Mean ratio

Direct equalization means the process of adjusting the assessed values of parcels of real property, usually by class or subclass, using adjustment factors or percentages, to achieve proportionate valuations among the classes or subclasses.

002.10 Measures of central tendency

Mean ratio means the result of the total of all assessment/sales ratios in the sample data set divided by the number of ratios in the sample data set, and is known as the simple average of the ratios in the data set.

002.11 Median ratio

Measures of central tendency means descriptive measures that indicate the mathematical center of a set of values, for example, mean and median.

002.12 Preliminary Statistical Report

Median ratio means the middle ratio of the sorted or arrayed assessment/sales ratios. If there is an even number of ratios, the median will be the average of the two middle ratios.

002.13 Price-related differential

Price-related differential means the statistical measure found by dividing the mean ratio by the weighted mean ratio, and then multiplying by 100 to obtain the percentage relationship. A percentage more than 100 indicates that higher-priced properties are generally assessed at lower ratios than lower-priced properties. A percentage of less than 100 indicates that lower-priced properties are generally assessed at lower ratios than higher-priced properties.

002.14 Statistical Report

Property Tax Administrator will be abbreviated to PTA throughout this regulation.

002.15 Special valuation

Qualified sale means a sale that is an arm's-length transaction included in the state sales file as determined by the county assessor or through the verification process of the Property Assessment Division.

002.16 Special valuation assessment

Report and Opinion means the report that is issued by the Property Tax Administrator each year for all 93 counties and contains a narrative correlation, statistical reports, and other reports applicable to the county.

002.17 Standard deviation

Representative sample means a sample of data from a larger data set, such that statistics calculated from the sample can be expected to represent the characteristics of the data set being studied.

002.18 Study period

Statistical report means an annual report displaying the statistical information calculated using qualified sales for each class of real property that occurred during the study period which compares the selling price with the assessed values for the current assessment year. All statistical reports must use the sales file developed by the Property Assessment Division.

002.19 Weighted

Special valuation means the actual value of the land if the land were available only for agricultural or horticultural purposes or uses, without regard to the actual value that the land has for other purposes and uses pursuant to Neb. Rev. Stat. §§ 77-1343 through 77-1347.01.

002.20 Standard deviation means the measure of data variance calculated from a set of numbers by subtracting each value from the mean and squaring each of the remainders, adding together all the squares, dividing the sum by the number that is one less than the number of values being analyzed, and taking the square root of the result.

002.21 Study period means the time frames established for each class of property by the Property Tax Administrator in which all sales used in developing an assessment to sales ratio study have occurred. The study periods used for each class of property are set forth Section 3.05 of these regulations.

002.22 Tax Commissioner means the Tax Commissioner Nebraska Department of Revenue.

002.23 Tax Equalization and Review Commission will be abbreviated to the TERC throughout this regulation.

002.24 Weighted mean ratio means a ratio determined by adding the assessed value of each parcel in a data set and dividing that number by the sum of all selling prices in the same data set. The weighted mean gives weight to each dollar value for the parcels included in the data set.

Neb. Rev. Stat. §§ 77-103.01, 77-128, 77-702, 77-1327, and 77-1343 - 77-1347.01.

350 Neb. Admin. Code, ch. 17, § 002