Bill reducing TERC members and authorizing single-commissioner hearings advances

Changes to the Tax Equalization and Review Commission (TERC) are proposed by a bill advanced from general file April 7.

TERC hears appeals of decisions made by county boards of equalization regarding property taxes and currently comprises one member from each congressional district and an at-large commissioner, for a total of four members.

LB384, introduced by Bellevue Sen. Abbie Cornett, would eliminate the at-large commissioner and authorize TERC to conduct single-commissioner hearings.

A Revenue Committee amendment, adopted 37-1, would set Oct. 1, 2011, as the expiration date for the terms of all TERC members. Terms of the three commissioners appointed would be staggered so that one commissioner’s term expires every biennium and the governor would be given the authority to set TERC commissioners’ salaries.

The amendment would restrict single-commissioner hearings to appeals regarding parcels that are less than $1 million in valuation. After the TERC chair designates an appeal for a single-commissioner hearing and both sides agree, an informal single-commissioner hearing could be held. The usual common-law or statutory rules of evidence would not apply in single-commissioner hearings. Either party could request a rehearing before the entire commission.

Finally, beginning Jan. 1, 2013, the amendment would require counties with a population of at least 150,000 to mail or post on the county assessor’s website a preliminary notice of valuation on or before Jan. 15 of each year and provide an opportunity to real property tax protesters to meet in-person with the assessor or staff.

In addition, real property tax protesters who protest their valuation would be given an opportunity to meet in-person with the county board of equalization or a referee.

An amendment offered by Cornett and adopted 36-0 adds that taxpayers who do not request an in-person meeting with assessor staff by Feb. 1 would waive their opportunity to do so.

Cornett said the amended bill would provide budgetary savings and transform TERC hearings into “informal and taxpayer-friendly” proceedings. The preliminary notice provision of the bill replicates a Lancaster County program, she said, which has reduced the county’s caseload of protests and TERC appeals.

Sen. Kathy Campbell, a former Lancaster County commissioner, spoke in support of the bill. She said their preliminary notice program provides a forum for taxpayers to visit with assessor staff to find errors and learn why their property was assessed at that value.

“We found this system to be a great budget helper to us,” Campbell said.

Hastings Sen. Dennis Utter said informal single-commissioner hearings would make TERC more approachable to citizens. Many people are intimidated by the current hearing procedure, he said.

“TERC needs to be a taxpayer-friendly place to go to get the facts and figures regarding a property,” Utter said.

Ellsworth Sen. LeRoy Louden opposed the bill, saying it would result in a backlog of cases for TERC. The commission formerly had three commissioners, he said, but it fell behind and some cases took two years to decide.

LB384 advanced from general file 36-1.