NEAC

Tax Protest Project

As one would guess, living near a Confined Animal Feeding Operation (CAFO) has a substantial impact on property value. According to an article in The Appraisal Journal (July 2001, pp. 301-306), the externalities caused by CAFOs, such as poor air quality, stench, visual pollution, will have a negative impact on a property. The severity of that impact depends on proximity to the CAFO and property type.

A number of cases from around the United States have illustrated the impacts of CAFOs on property values:

• NEBRASKA: Bruce Livingston successfully challenged the Nebraska Tax Equalization and Review Commission, claiming that his recently built home was worth nearly half of what the county had appraised it as, due to its proximity to a livestock operation.
• WASHINGTON: a family farm negatively impacted by a new CAFO was devalued by 50% using traditional appraisal methods.
• MICHIGAN: five rural residents of Mecosta County were awarded a reduction in the taxable value of their homes by 35% due to odors caused by a CAFO that moved into the area.
• MISSOURI: a study of Saline County, MO found that increased proximity to a CAFO caused decreased valuation at an average loss of $112 per acre.

*See www.gpelc.org/projects/tax_protest.php for full citations of above studies.

Recently, the Great Plains Environmental Law Center, with a generous grant from the Socially Responsible Agricultural Project, and cooperation of Laura Krebsbach of WPF Consulting, began to work with citizens who faced the challenge of living near CAFOs by assisting their efforts to protest the taxable value of their homes.

While the process varies in each state, the concept remains the same: a property near a CAFO will not sell for the same value that it would away from the CAFO. If an county assessor fails to take proximity to a CAFO into consideration, an individual can protest the assessed value to the county, and if need be, to the state, in order to receive a more fairly assessed and taxable value.

For a successfully protest, it is important to have well documented proof of your claim. An independent state-licensed appraisal that considers proximity to the CAFO, and is done during the tax-year in question, is excellent evidence. Additional items include a plat map with the location of your home and the CAFO, dated & location marked photos, written testimony, estimates for repairs/adjustments due to the presence of a CAFO (air filter, water purifier, window cleaning, etc.).

Presently, GPELC is finishing a free manual to Tax Protests in Nebraska that will be available soon. For more information, see www.gpelc.org/projects/tax_protest.php, or check back here frequently. While this guide will be specific to Nebraska, the process in each state is similar. More state-specific guidelines will be introduced.