Cheyenne County Could See Lower Property Valuations

A recommendation by the Cheyenne County Assessor has been accepted by the Nebraska Department of Revenue to be forwarded to potentially lower the level at which properties are taxed.

Cheyenne County Assessor Sybil Prosser last week sent the office’s annual review to the Department of Revenue, proposing value changes based on property sales. Prosser was informed Friday that the Department of Revenue approved the proposal and forwarded it on to the Nebraska Tax Equalization and Review Commission, which has the final say.

Properties are taxed based on their market value, from 92-100 percent for residential properties, and from 69-75 percent for agricultural land. Cheyenne County’s recommendation was that county properties be taxed at 92 percent for residential and 71 percent for agricultural land.

In Sidney, that would be a reduction of 10-14 percent, while villages and small town properties would be nine percent lower. Rural residential could drop five percent. Taxing of agricultural land in Area 1, generally the southern parts of the county, could go down 13 to 20 percent for dry land, and 20 percent for CRP. Area 2, generally the northern parts of the county, could go down approximately 12 percent for both dry and CRP. Irrigated land sales have for the most part remained the same and would not change.

Prosser said this year’s recommendation is based on a review of sales within the county. Lower sales prices have gone down enough to make the suggestion.

In the case of ag land, Prosser said dry land had previously been selling in Area 1 in a $575-755 per acre range and now sells for $604-460 per acre. Area 3 was $940-825 and is most recently in the $827-726 per acre range. Homes sale prices have also dropped significantly.

Prosser said the tax percentage is just one part of the valuation formula. Another is a property’s individual market value, established by either the sale of a home or property, or similar properties. The assessor’s office performs physical reviews of properties every six years (on a rotating basis).