Joan Casey, a Lincoln CPA reeling (like many homeowners) at the preliminary assessed value of her home – a nearly 33% increase – decided to do some research.
She went to Zillow, a popular real estate website, and compared Zillow’s value estimates of homes to those posted by the Lancaster County Assessor’s Office.
“I kind of like data, so I looked at 128 houses around me. Of those 128 houses, 28 of them had assessed valuations greater than what Zillow said they were.”
The assessor’s value for another 24 of those homes was lower than Zillow’s, she said.
She compared what Zillow thought the value of her home was in December 2020 (the last time the assessor did a complete revaluation) to the value in December 2022. On Zillow, the value of her home increased 12%, compared to the assessor's 33% hike.
People are also reading…
All of that, the accountant said, convinced her that she should protest her valuation and that others should, too.
So how would a Zillow estimate influence appraisers in the assessor’s office?
It depends.
State law requires the assessor to set property valuations at market value (except for ag land, which is set at 75%), and sales of comparable homes is the best way to determine that, said Derrick Niederklein, chief deputy in the Lancaster County Assessor’s Office.
The state Department of Revenue measures values to make sure that counties are in compliance – between 92% and 100% of market value, he said.
Generally, the assessor's office looks at sales that have occurred over the past year or two – most often in similar parts of town – and compares sales of properties built about the same time, with similar square footage, lot size and number of bathrooms, Niederklein said.
Those factors are entered into a computer program, he said, to establish a home’s value. All those values also are reviewed by staff, he said.
So, if property owners want to file an informal protest there’s a number of factors that could make a difference.
If a home is in poorer condition than comparable properties -- based on an inspection by an appraiser -- that could result in a lower value. Or homeowners can bring in different comparable sales.
Homeowners can choose to have an appraisal done of their home, which they could offer as evidence if it is lower than the assessor’s value. Neiderklein said they’d look at the comparable sales used by the appraiser.
Sites like Zillow can also be helpful, though bringing in a Zillow value that’s different than the assessor’s won’t automatically result in a change, Niederklein said.
Sites like Zillow also use automated valuation models and the assessor will look at the comparable sales in their model. If they are different than those used in the assessor’s models it could make a difference, he said.
Property owners have until Feb. 1 to call the assessor’s office and make an appointment for an informal appeal. Those meetings can be done in person or over the phone.
Local governments are part of puzzle
If things don’t change dramatically with valuations, the county could be on track for another record increase, and then the question becomes: What will local governments do?
While the assessor’s office determines the value of property, it doesn’t determine how much your tax bill will be. That’s the purview of local governments, community colleges and other subdivisions that set rates to collect property tax revenue that help fund their budgets.
That means if a local government holds its tax rate steady – a fact touted by nearly every local subdivision as evidence they’re holding the line on spending – but the value of a home goes up, so does the homeowner’s property tax bill.
In the past couple years, state legislators passed a couple of bills to help shine a light on the fact that a stable – or even slightly lower – tax rate doesn’t necessarily mean a lower property tax bill.
In 2019, the Legislature unanimously passed Sen. Lou Ann Linehan’s LB103, which requires local governments to hold a second public hearing before they set the tax rate if they are collecting more property tax revenue than the year before.
Then legislators passed the so-called “truth in taxation” bill that went into effect last year, requiring local taxing entities to notify taxpayers -- via pink postcards -- and hold a public hearing if their budgets increase property tax revenue more than 2%.
But those truth in taxation hearings happened in November last year, and the public hearing to set the tax rate – at least for the city – happens in October.
So if you want to have a voice in how much your property tax bill increases, watch when local governments set their budgets.
Library's top 10
On a lighter note, Amor Towles’ “The Lincoln Highway” – Lincoln’s One Book One Lincoln selection and a really great 10-day adventure that starts in Nebraska – was the most checked-out book from Lincoln City Libraries last year.
The 1,243 times library patrons checked out the 588-page novel was among 2.8 million items checked out from Lincoln’s eight branches and the Lied Bookmobile. That’s a 4.3% increase in circulation of print materials over 2021.
Some other statistical trivia: Patrons visited library web pages over a million times last year and borrowed nearly 700,000 items electronically.
The top 10 most popular books in 2022 and how many times they were checked out, following “The Lincoln Highway, are (drum roll): “Sparks Like Stars” by Nadia Hashimi (805); “Sparring Partners” by John Grisham (610); “The 6:20 Man” by David Baldacci (522); “Where the Crawdads Sing” by Delia Owens (504); “Run, Rose, Run” by Dolly Parton and James Patterson (484); “The Hotel Nantucket” by Erin Hilderbrand (473); “Dream Town” by David Baldacci (471); “Shattered” by James Patterson (463); and “Diary of a Wimpy Kid: Dog Days” by Jeff Kinney (456).
If you’re into top-10 lists, the library has more at: .