Property Tax Relief for Disaster Victims
Nebraskans who’ve suffered damage to real property as a result of flooding or other natural disasters can now seek a reduction in the value of damaged real property for tax purposes due to a recent change in state law. Nebraskans whose real property was destroyed on or after January 1 and before July 1 can file a “Report of Destroyed Real Property – Form 425” with the county assessor and county clerk to apply for reassessment.
Property owners must file the report by July 15.
Application Process
Who May File. An owner of real property that became destroyed on or after January 1 and before July 1 of the current assessment year.
When and Where to File. On or before July 15 of the current assessment year, the Report of Destroyed Real Property Form must be filed with both the county assessor and county clerk in the county where the property is located. Complete a separate report for each parcel of land.
Dismissal. Failure to adequately identify the destroyed real property or not describing the damage may result in dismissal of the report.
Review Process
Notice of Reassessment Value for Destroyed Property. The county board of equalization must act upon this report on or after June 1 and on or before July 25, or on or before August 10 if the board has adopted a resolution to extend the deadline to hear protests under Neb. Rev. Stat § 77-1502, and must send a notice of the reassessment value for destroyed real property to the owner.
Appeal Process
Protest to the County Board of Equalization. If you disagree with the reassessment value for destroyed real property you must file a valuation protest with the county clerk within 30 days of the notice of the reassessment value for destroyed real property. The county board of equalization must act upon the valuation protest within 30 days after the filing of the protest. Within seven days after the county board of equalization’s final decision, the county clerk must mail a written notice of the decision to the protester.
Appeal to the Tax Equalization and Review Commission. An appeal of the county board of equalization action regarding the valuation protest of the reassessment value for destroyed real property may be appealed to the Tax Equalization and Review Commission within thirty days after the board’s final decision.
Definitions
Destroyed real property means real property that suffered significant property damage as a result of a calamity occurring on or after January 1 and before July 1 of the current assessment year.
Destroyed real property does not include property suffering significant property damage that is caused by the owner of the property or an occupant of leased property.
Calamity means a disastrous event, including but not limited to, a fire, an earthquake, a flood, a tornado, or other natural event which significantly affects the assessed value of the real property.
Significant property damage means:
- Damage to an improvement exceeding 20% of the improvement’s assessed value in the current tax year as determined by the county assessor;
- Damage to the land exceeding 20% of a parcel’s assessed land value in the current tax year as determined by the county assessor;
- Damage exceeding 20% of the property’s assessed value in the current tax year as determined by the county assessor if:
a. Such property is located in an area that has been declared a disaster area by the Governor, and
b. A housing inspector or health inspector has determined the property is uninhabitable or unlivable.
Resources
News Release: Report of Destroyed Real Property
Destroyed Real Property – FAQ County Assessors
Destroyed Real Property – County Board Suggested Practices
