County of Douglas v. Nebraska Tax Equalization and Review Commission

Summary

Douglas County appealed a Nebraska Tax Equalization and Review Commission order increasing the assessed value of commercial property in the county by 7 percent. The Nebraska Supreme Court reviewed whether TERC's findings and adjustment were supported by competent evidence and consistent with statutory equalization requirements, including issues concerning sales chasing, assessment-sales ratios, and uniformity and proportionality of taxation.

Holdings

1. TERC's findings that sales chasing had occurred, that the prior sales data was unreliable, that the 4-percent time adjustment was unsupported, and that a 7-percent increase was necessary were supported by competent evidence and were not arbitrary, capricious, unreasonable, or contrary to law.
2. TERC did not violate Nebraska's constitutional uniformity requirement by using one year of sales data for Douglas County because substantial evidence showed that the county's longer-period data had been contaminated by sales chasing, while no such contamination was shown for the comparison counties.
3. Res judicata did not bar TERC from using prior sales data or evaluating the reliability of that data in the later tax year because tax-year assessments involve distinct issues and the relevant property values had not previously been adjudicated.

Questions Presented

1. Whether TERC's findings that Douglas County's commercial-property assessments were inequitable, that sales chasing had occurred, and that a 7-percent increase was necessary were arbitrary, unsupported by competent evidence, or contrary to law.
2. Whether TERC improperly treated Douglas County differently from other counties by relying on one year of sales data rather than a three-year period, in violation of the uniformity clause of the Nebraska Constitution.
3. Whether TERC was barred by res judicata from relying on prior-year sales data or making findings inconsistent with its prior equalization proceedings.
4. Whether TERC's order violated the Nebraska Constitution's separation-of-powers or due-process guarantees.

Disposition

affirmed