Section 77-112 requires use of applicable statutory factors, individually or in combination, to determine the actual value of real estate for tax purposes. See, US Ecology v. Boyd Cty. Bd. of Equal., 256 Neb. 7, 588 N.W.2d 575 (1999); First Nat. Bank v. Otoe Cty., 233 Neb. 412, 445 N.W.2d 880 (1989); Forney v. Box Butte Cty. Bd. of Equal., 7 Neb. App. 417, 582 N.W.2d 631 (1998). Pursuant to § 77-112, the statutory measure of actual value is not what an individual buyer may be willing to pay for property, but, rather, its market value in the ordinary course of trade.
Garvey claims that because the Board did not offer any evidence to support its valuation of the subject property, the Board was not entitled to a presumption of validity regarding the $1 million valuation. In support, Garvey relies upon First Nat. Bank v. Otoe Cty., 233 Neb. 412, 445 N.W.2d 880 (1989). At that time, an appeal from the county board of equalization was tried de novo in the district court.
Plaintiffs have appealed from the order of the district court which affirmed the action of the board of equalization of Boone County (Board) in denying plaintiffs' protest of the valuation of their hog confinement unit located on a fraction of the northeast quarter of Section 32, Township 20 North, Range 6 West of the 6th P.M., in Boone County, Nebraska, referred to as Parcel 282. This case is a consolidation of two separate appeals from the Board involving the tax years 1987 and 1988. The plaintiffs assign as error that the assessed valuation of the property which was approved by the Board and affirmed by the district court was far in excess of its actual value. An appeal from action by a county board of equalization is an equity action tried de novo in the district court. First Nat. Bank v. Otoe Cty., 233 Neb. 412, 445 N.W.2d 880 (1989). On appeal from the district court to an appellate court, an equity case is tried as to factual issues de novo on the record, requiring the appellate court to reach a conclusion independent of the findings of the trial court.
But, TERC's decision about Livingston's house, including the rejection of Livingston's $200,000 valuation for the house because it cost over $300,000 to build, ignores the concept of "overbuilding," which can be important in setting market value. This concept has been explained by the Nebraska Supreme Court in First Nat. Bank v. Otoe Cty., 233 Neb. 412, 414, 445 N.W.2d 880, 882 (1989), as follows: Physical depreciation results from deterioration of the improvements over time.
From his observations, he opined that economic depreciation of 40 percent was appropriate.First Nat. Bank v. Otoe Cty. , 233 Neb. 412, 414, 445 N.W.2d 880, 882 (1989).--------
She also included a 5-percent allowance for "locational depreciation." First Nat. Bank v. Otoe Cty., 233 Neb. 412, 445 N.W.2d 880 (1989); Cabela's, Inc. v. Cheyenne Cty. Bd. of Equal., supra note 29. The Brenners cite no authority for their argument that the assessor was legally required to use the 55-to 60-year average life utilized in the Marshall Swift depreciation schedules.
This statute does not require use of all the specified factors, but requires use of applicable statutory factors, individually or in combination, to determine actual value of real estate for tax purposes. Dowd v. Board of Equal., 240 Neb. 437, 482 N.W.2d 583 (1992); First Nat. Bank v. Otoe Cty., 233 Neb. 412, 445 N.W.2d 880 (1989). Kubert testified that he used the sales comparison approach but did not use an income analysis because "buyers and sellers of farmland do not attach great significance to the net income produced."
Section 77-112 requires use of applicable statutory factors, individually or in combination, to determine the actual value of real estate for tax purposes. See First Nat. Bank v. Otoe Cty., 233 Neb. 412, 445 N.W.2d 880 (1989). In the instant case, the appraisal of Tuttle, adopted by the Board, used the reproduction or replacement cost approach in combination with comparable sales of other properties in the general area over several years, taking into account such things as location, age, and quality of construction of the properties.