42-11054

42-11054. Standard appraisal methods and
techniques

A. Subject to subsection B of this section, the department shall:

1. Prescribe guidelines for applying standard appraisal methods and techniques that
shall be used by the department and county assessors in determining the valuation of
property.

2. Prepare and maintain manuals and other necessary guidelines, consistent with
this section, reflecting the standard methods and techniques to perpetuate a current
inventory of taxable property and the valuation of that property.

B. Before they are adopted, the department shall submit each substantive proposed
guideline, table and manual that is developed, amended or otherwise modified from and
after December 31, 2006 to the joint legislative oversight committee on property tax
assessment and appeals. The department shall not finally adopt, amend or otherwise
modify a substantive guideline, table or manual for at least thirty days after submitting
the measure to the committee. The committee may hold one or more informational hearings
on the proposed measure within thirty days after submission. In adopting, amending or
modifying the measure the department shall consider the committee's comments. If the
committee fails to hold a hearing within thirty days after submission, the department may
adopt, amend or modify the measure without further consideration.

C. In applying prescribed standard appraisal methods and techniques:

1. Current usage shall be included in the formula for reaching a determination of
full cash value.

2. Solar energy devices, as defined in section 44-1761, grid-tied photovoltaic
systems and any other device or system designed for the production of solar energy
primarily for on-site consumption are considered to have no value and to add no value to
the property on which such device or system is installed.

3. Energy efficient building components, renewable energy equipment and combined
heat and power systems are considered to add no value to the property, if the property
owner provides the county assessor with documentation of all elements that qualify
pursuant to this paragraph, including documents showing actual acquisition and
installation costs. The documentation must be submitted to the county assessor no later
than six months before the notice of full cash value is issued for the initial evaluation
year pursuant to section 42-15101 or, if the component is added after September 30 of the
preceding year, no later than March 31 of the initial valuation year. For the purposes of
this paragraph:

(a) "Combined heat and power system" means a system that generates electricity or
mechanical power and useful thermal energy in a single, integrated system such that the
useful power output of the facility plus one-half the useful thermal output during any
twelve-month period is no less than 42.5 per cent of the total energy input of fuel to
the facility.

(b) "Energy efficient building components" means high performance sustainable
building components installed so that the buildings or building components meet or exceed
the energy efficiencies prescribed by the United States environmental protection agency
energy star program or by a leadership in energy and environmental design green building
rating standard developed by the United States green building council, or an equivalent
green building standard, or that are at least fifteen per cent more energy efficient than
the international energy conservation code in effect at the time of building permit
issuance.

(c) "Renewable energy equipment" means equipment that is used to produce energy
primarily for on-site consumption from renewable resources, including wind, forest
thinnings, agricultural waste, biogas, biomass, geothermal, low-impact hydropower and
solar energy not included under paragraph 2 of this subsection.

D. If the methods and techniques prescribe using market data as an indication of
market value, the price paid for future anticipated property value increments shall be
excluded.

E. For purposes of determining full cash value the department and county assessors
shall use and apply the ratio standard guidelines issued by the department for tax year
1993 in the same manner as they were applied in tax year 1993. This subsection does not
apply to property that is valued according to prescribed statutory methods or to property
for which values are determined in the year after an appeal pursuant to section 42-16002.