Single-commissioner TERC hearings proposed

Taxpayers who believe a parcel of land is valued incorrectly by their county board of equalization could receive a single-commissioner hearing from the Tax Equalization and Review Commission (TERC) under a bill heard by the Revenue Committee Feb. 17.

LB405, introduced by Bellevue Sen. Abbie Cornett, would authorize single-commissioner hearings for 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 at single-commissioner hearings. Either party could request a rehearing before the entire commission.

Cornett said the purpose of the bill is to help TERC manage its caseload and streamline its operations.

TERC chairperson Bob Wickersham testified in support of the bill, saying it would provide a process used by seven other states. He said the bill would address concerns that full hearings before the commission are too formal and require oaths, marked exhibits and adherence to limited rules of evidence.

TERC commissioner Bill Warnes also testified in support of the bill, saying the purpose of the single-commissioner hearings is not to reduce the number of appeals, but to match resources to needs.

“There is no sense in having three or four commissioners sitting before mom and pop on the average, uncomplicated residential appeal,” he said.

Warnes said a similar process in Kansas suggests that 75 percent of hearings before a single commissioner will not result in a hearing of the full commission.

Jarel Vinduska of Gretna, a supporter of LB405, said his hearing before TERC lasted 6.5 hours due to the formality. The rules of evidence often require that parties prove the most basic points, he said.

Representing the Douglas County Assessor’s Office, Mike Goodwillie testified in a neutral capacity. The committee should reduce the valuation limit for single-commissioner appeals, he said, because landowners with parcels valued near $1 million likely will have more complicated cases.

Goodwillie also suggested that single-commissioner hearings offer both parties a waiver to agree not to request a rehearing after the commissioner’s decision. He said this would add some finality to single-commissioner hearings and prevent duplicative full-commission hearings.

The committee took no immediate action on the bill.