Property owners protest tax bills

Several property owners protested increased tax valuations at tax hearings recently before Red Willow County commissioners.

(Advertisement)

County Assessor Sandra Kotschwar said the state requires that commercial property be valued, for tax purposes, at 92 to 100 percent of fair market value.

It was in downtown commercial properties in McCook, and in some dryland and irrigated ag land, that the majority of property valuation increases occurred in 2007.

One downtown property owner told commissioners that the valuation of her property -- reduced to $75,869 from $83,446 last year -- is "still too high."

She said that a purchase offer of $50,000 supports her belief that the property should be valued at $55,000.

"I would appreciate a reconsideration," she told commissioners Monday afternoon.

The property and its inventory is listed for sale at $85,000.

Kotschwar said that sales in McCook are showing an increasing demand for commercial buildings. "Business people want to buy, rather than rent," she said.

Another owner of downtown McCook property complained to commissioners, however, that there isn't enough business in downtown McCook nor enough renters to occupy her properties.

Therefore, she is requesting that the tax valuation on her property -- six rental buildings, only three of which are occupied -- be reduced from $282,768 to $160,000.

The owner told commissioners, during a phone conference, that she feels the properties have little or no market value because of "very little business action in McCook." She said the value of the properties is also affected by their high vacancy rate and the projected high costs for roof repairs.

Another landlord commented on vacancies in his building, where only 10 of 15 offices are rented.

The landlord told commissioners, "Utilities are killing us. We're losing money on the rentals." He requested that the property's valuation be reduced from $162,409 to $124,120.

Kotschwar said that she and commissioners will weigh income and expenses, as they consider the landlord's request.

Several homeowners also requested valuation decreases at hearings Monday, July 16.

Kotschwar told one homeowner it has been difficult to assess his home because it is a modular home with extensive and expensive upgrades, although, now that it has been turned into a rental property, those upgrades -- new counter tops and high-end kitchen cabinets -- have been removed.

The homeowner is requesting that the valuation be dropped from $85,904 to $75,000.

An elderly McCook couple asked commissioners to reconsider the valuation on their 1974 mobile home because, after they moved out, a pipe broke and flooded the living room, kitchen and bedrooms. Leaks have also damaged cabinets, they said. The couple invited commissioners and Kotschwar to view the damage.

Kotschwar told the couple that interior damage "puts a whole new light" on the property's value, and she and commissioners will reconsider the situation.

Kotschwar told the couple that she and her staff perform mass appraisals of homes, not singular appraisals of individual properties. "We don't often go inside," Kotschwar said.

Another McCook home had problems, these created by a former owner and encountered by new owners.

The new owners discovered trash piled from floor to ceiling in the house and garage, rotting food in the kitchen frig and basement freezer, volunteer trees blocking the back door, and stink and stench everywhere.

Neither the house nor the garage could be saved, and were demolished and the debris hauled off at a cost of $9,000.

The couple is asking for a refund of taxes paid before the demolition, and a re-valuation of the now-empty lot.

Commissioner Leigh Hoyt, who serves as chairman of the commissioners' board of equalization, told each protester that commissioners and Kotschwar will consider each request carefully, driving by or viewing inside (with permission and an appointment) when it's necessary.

Decisions will be mailed to property owners after July 25.

A property owner dissatisfied with a ruling by commissioners may file an appeal with Nebraska's TERC -- Tax Equalization and Review Commission. Information on this process can be obtained in the county clerk's offices.

Commissioners and Kotschwar will hear only 39 tax valuation protests this year. That's close to the 10-year record low -- 38, in 2001.

Commissioners listened to 172 protests in 1997 and 226 protests in 2000.