“Property Owners Aren’t Completely Wrong – At Times the Assessor Actually IS the Problem”

Just last month I authored an article outlining why property owners should not be blaming the assessor’s office for increases in their property taxes.

That remains true at the community-wide level.

Increased spending is the sole reason that more money is being taken out of taxpayers’ pockets every year. Valuations are simply the mechanism used to allocate the spending to property owners.

An increase in valuation should not automatically drive an increase in property taxes. If total government remained flat from year 1 to year 2, levy rates would decline as valuations increase. Unfortunately that isn’t the reality we experience.

That said, many property owners have raised legitimate concerns regarding inexplicable changes in valuations. Some properties have experienced dramatic increases, while others have seen decreases, with no explanation. These types of changes do, in fact, disproportionately and unfairly impact individual property owners.

It is important to remember the Assessor’s actual responsibility.

Nebraska Constitution, Article VIII, Section 1

“Taxes shall be levied by valuation uniformly and proportionately upon all real property…

Nebraska Department of Revenue Guidance

“Real property must be valued uniformly and proportionately in Nebraska.”

I believe this is where taxpayers’ frustration and anger originates.

And there’s really no way around this.

Whatever system, software, or methodology the Assessor’s Office is using isn’t working.

In the recent Pink Postcard Meeting, a clear example was provided:

“In ’22, we paid $281,000 for this townhome… and in four years, the valuation increased $90,000.”

On what theory did the Assessor’s Office determine that the property that changed hands between a willing buyer and a willing seller – for $281k in 2022, was so significantly undervalued.

By 2026, the property’s assessed value had increased nearly 32% above its 2022 purchase price, far beyond what would be expected if it had simply tracked the Assessor’s reported average growth rates.

That level of increase demands an explanation. And this is not an isolated example.

My own research has uncovered numerous instances of inexplicable valuation changes:

  • Side-by-side properties showing dramatically different changes in valuation despite appearing highly comparable.
  • Properties experiencing significant increases in one year, followed by reductions in subsequent years.
  • Properties with valuation changes that appear disconnected from observable market activity.

Which raises a fundamental question:

If prior valuations were accurate and properties were being assessed “uniformly and proportionately,” why would taxpayers routinely experience these kinds of dramatic swings?