Clarification proposed to valuation of farm home sites

A bill that seeks to clarify the types of comparable properties that could be used to valuate farm home sites was advanced from general file March 20.

LB750, introduced by Bellevue Sen. Abbie Cornett, would clarify the types of property that could be used as comparable lands for the purpose of valuating farm home sites. Cornett said the bill was the result of confusion over which properties could be used.

“An assessor was using residential land platted in a zoned subdivision to valuate a farm home sight,” Cornett said. “This bill would clarify that the two properties are not comparable.”

The bill would specify that residential land located within a platted and zoned residential subdivision is not comparable to land that is part of a farm home site.

Plattsmouth Sen. Paul Lambert said property owners in his district saw increases of up to six times the previous valuation.

“This bill would offer a solution to a problem that has existed for almost four years in my district,” he said.

A Revenue Committee amendment, adopted 32-0, further clarified that sales of land which do not include a farm home site shall not constitute a comparable sale when determining the actual value for farm home sites. The amendment also would require the state Department of Revenue to conduct an annual analysis of market premiums to ensure accurate valuations of farm home sites.

A Cornett amendment to the committee amendment, adopted 29-0, also would define a farm home site or rural residential site as land contiguous to a farm site that includes an inhabitable residence and improvements used for residential purposes and is located outside of urban areas or outside a platted and zoned subdivision.

Senators advanced the bill to select file on a 30-0 vote.