County of Douglas v. Nebraska Tax Equalization and Review Commission

Summary

The Nebraska Supreme Court reviewed the Nebraska Tax Equalization and Review Commission’s orders adjusting the valuation of residential property subclasses in Douglas County. The court held that the decrease for Area 2 was unsupported by competent evidence and arbitrary because the assessment data showed substantial lack of uniformity, while addressing the propriety of adjustments for Areas 3 and 4 and the denial of reconsideration. The decision affirmed in part and reversed in part.

Holdings

1. A decision by TERC on a petition for review is reviewed for error on the record. The court asks whether the decision conforms to law, is supported by competent evidence, and is neither arbitrary, capricious, nor unreasonable; questions of law are reviewed de novo.
2. TERC's order decreasing the valuation of Area 2 by 8 percent was unsupported by competent evidence and was arbitrary, capricious, and unreasonable.
3. TERC's orders increasing the valuations of Areas 3 and 4 by 7 percent were supported by competent evidence and were not arbitrary, capricious, or unreasonable.
4. The abuse-of-discretion standard applies to appellate review of an administrative agency's grant or denial of a motion to reconsider.
5. TERC did not abuse its discretion by denying Douglas County's motion to reconsider.

Questions Presented

1. Whether TERC's 8-percent decrease in the valuation of residential property in Area 2 was supported by competent evidence and was not arbitrary, capricious, or unreasonable.
2. Whether TERC's 7-percent increases in the valuations of residential property in Areas 3 and 4 were supported by competent evidence and were not arbitrary, capricious, or unreasonable.
3. What standard governs review of an administrative agency's ruling on a motion to reconsider.
4. Whether TERC abused its discretion by denying Douglas County's motion to reconsider based on alleged errors in the sales data.

Disposition

reversed