Clarification of farm home site valuations passed

The comparable properties that may be used in farm home site valuations is clarified under a bill passed by the Legislature April 4.

LB750, introduced by Bellevue Sen. Abbie Cornett, clarifies the types of property that can be used as comparable lands for the purpose of valuating farm home sites. The bill specifies that residential land located within a platted and zoned residential subdivision is not comparable to land that is part of a farm home site.

The bill defines farm home site or rural residential site as land contiguous to a farm site which includes an inhabitable residence and improvements used for residential purposes and that is located outside of urban areas or outside a platted and zoned subdivision.

Sales of land that do not include a farm home site will not constitute a comparable sale when determining the actual value of farm home sites. The state Department of Revenue will be required to conduct an annual analysis on market premiums to ensure accurate valuation of farm home sites.

Senators passed the bill on a 48-0 vote.