Date of this Version
Property Valuation May Be Reduced by Proximity to Livestock Operation
In Nebraska, land and buildings are valued at their fair market value for purposes of property taxation. Residential and commercial real estate is valued at 92-100% of actual value (i.e. farm market value) and agricultural real estate is valued at 74-80% of actual value. NRS 77- 5023(3). Fair market value for property tax valuation purposes may be determined by (1) comparative sales, (2) income or (3) cost. NRS 77-112. In Livingston v Jefferson County Board of Equalization, 10 Neb App 934 (2002), the Nebraska Court of Appeals ruled that the county board of equalization erred in not considering a rural residence’s proximity to a swine farrowing facility in determining the residence’ s valuation.
The taxpayer started a swine farrowing operation in 1990. In 1999 the taxpayer built a house approximately 3/4 of a mile from his farrowing facility at a cost of $328,649. In 2000 the county valued the house (excluding the land) at $399,321. The taxpayer objected to this valuation for three reasons. First, the house was approximately 3/4 of a mile from a swine farrowing facility with 5,200 sows. Second, the tax payer had obtained an easement to apply hog manure to cropland across the road from the house. Third, the house was not served by a public road but by a private road that at times could be used only with a four-wheel drive vehicle. The taxpayer’s appraiser discounted the value of the house (based on comparable sales) by 30% for livestock odors and 10% for its remote location.