[Rev. 11/21/2013 4:12:34 PM--2013]

[NAC-361A Revised Date: 5-08]

CHAPTER 361A - TAXES ON AGRICULTURAL REAL PROPERTY AND OPEN SPACE

GENERAL PROVISIONS

361A.010         Definitions.

361A.015         “Animal unit” defined.

361A.020         “Animal unit month” defined.

361A.025         “Assessing authority” defined.

361A.030         “Business venture for profit” defined.

361A.035         “Commission” defined.

361A.040         “Converted to a higher use” defined.

361A.045         “Crop” defined.

361A.050         “Department” defined.

361A.055         “Livestock” defined.

361A.060         “Operator” defined.

361A.065         “Poultry” defined.

AGRICULTURAL PROPERTY

Assessment

361A.110         Application: Date; form.

361A.120         Application: Contents.

361A.130         Application: Additional documentation.

361A.140         Application for property containing less than 20 acres: Forwarding to Department for review.

361A.150         Determination of whether activities qualify as agricultural pursuits.

361A.160         Determination of whether operator is engaged in business venture for profit.

361A.170         Categorization and valuation of land devoted to agriculture.

361A.180         Annual study of value of lands designated for agricultural use.

Conversion to Higher Use

361A.210         “Physical alteration” interpreted.

361A.220         Determination of whether final map or parcel map creates parcels not intended for agricultural use.

361A.230         Conversion of property by county assessor.

361A.240         Calculation of deferred tax when property is converted.

GOLF COURSES

361A.310         Definitions.

361A.320         “Converted to a higher use” defined.

361A.330         “Golf course” defined.

361A.340         “Golf course land” defined.

361A.350         “Golfing improvements” defined.

361A.360         “Marshall and Swift” defined.

361A.370         “Related improvements” defined.

361A.380         Applicability.

361A.390         Golf course land: Determination of taxable value for open-space use.

361A.400         Golfing improvements: Determination of taxable value for open-space use.

361A.410         Golfing improvements: Determination of replacement cost.

361A.420         Golfing improvements: Calculation of factor for obsolescence.

361A.430         Determination of taxable value of real property used as golf course and related improvements and personal property.

361A.440         Calculation of deferred tax due when property is converted to higher use.

 

 

 

GENERAL PROVISIONS

      NAC 361A.010  Definitions. (NRS 360.090, 360.250)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 361A.010 to 361A.065, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.015  “Animal unit” defined. (NRS 360.090, 360.250)  “Animal unit” has the meaning ascribed to it in paragraph (b) of subsection 1 of NRS 361.325.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.020  “Animal unit month” defined. (NRS 360.090, 360.250)  “Animal unit month” has the meaning ascribed to it in paragraph (b) of subsection 1 of NRS 361.325.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.025  “Assessing authority” defined. (NRS 360.090, 360.250)  “Assessing authority” means:

     1.  The county assessor if the property to be considered is 20 acres or more; or

     2.  The Department if the property to be considered is less than 20 acres.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.030  “Business venture for profit” defined. (NRS 360.090, 360.250)  “Business venture for profit” means an agricultural pursuit engaged in by an operator for a reasonable profit or at least upon the expectation of a reasonable profit consistent with the productive capability of the land unit.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.035  “Commission” defined. (NRS 360.090, 360.250)  “Commission” means the Nevada Tax Commission.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.040  “Converted to a higher use” defined. (NRS 360.090, 360.250)  “Converted to a higher use” has the meaning ascribed to it in NRS 361A.031.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.045  “Crop” defined. (NRS 360.090, 360.250)  “Crop” means any agricultural product, including, without limitation, alfalfa, barley, certified seed, Christmas trees, garlic, grass hay, nursery stock, oats, onions, pasturage, sod and wheat, that is grown in soil or any other medium.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.050  “Department” defined. (NRS 360.090, 360.250)  “Department” means the Department of Taxation.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.055  “Livestock” defined. (NRS 360.090, 360.250)  “Livestock” means domestic animals, including, without limitation, cattle, sheep, goats, swine, poultry, fish and equine animals, used for food, fiber, breeding, draft or profit.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.060  “Operator” defined. (NRS 360.090, 360.250)  “Operator” means a person who engages in an agricultural pursuit as a business venture for profit. The operator may be either the owner or occupant of the agricultural real property.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.065  “Poultry” defined. (NRS 360.090, 360.250)  “Poultry” means domestic and game birds produced for meat, eggs or other poultry products, including, without limitation, chickens, turkeys, ducks, geese, peafowl, ostriches, pheasants, quail and chukar.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

AGRICULTURAL PROPERTY

Assessment

      NAC 361A.110  Application: Date; form. (NRS 360.090, 360.250, 361A.110)  An owner of property who wishes to qualify the property for the agricultural use assessment pursuant to NRS 361A.110 must apply to the assessing authority on or before the date required by NRS 361A.110. The application must be on a form approved by the Commission.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.120  Application: Contents. (NRS 360.090, 360.250, 361A.110)

     1.  An application for agricultural use assessment filed pursuant to NRS 361A.110 must contain:

     (a) The names, addresses and telephone numbers of the owner or his representative and, if applicable, the lessee;

     (b) A description of the uses to which the land is put, including residential use and other higher uses if applicable;

     (c) A description of the type of agricultural operation;

     (d) The size of the land devoted to agricultural use;

     (e) A description of any noncontiguous parcels which may qualify for agricultural use;

     (f) The number of years which the land has been devoted exclusively to agricultural use;

     (g) The gross income received from agricultural pursuits during the immediately preceding calendar year; and

     (h) Expenses and net income attributable to the agricultural pursuit.

     2.  As used in this section, “noncontiguous parcels” means parcels of land with no common boundary and completely detached from one another, including, without limitation, two portions of land connected only by a point, such as when the northeast corner of a parcel connects at the point of the southwest corner of another parcel.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.130  Application: Additional documentation. (NRS 360.090, 360.250, 361A.110, 361A.120)  Additional documentation may be requested by the assessing authority relating to a determination of agricultural pursuit or conducting a business venture for profit, including, without limitation, leases, receipts or rent paid, account balance sheets, profit and loss statements, audited financial statements and federal income tax returns. Such additional documentation must accompany the application but does not need to be recorded.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.140  Application for property containing less than 20 acres: Forwarding to Department for review. (NRS 360.090, 360.250, 361A.110)  If a county assessor receives an application for agricultural use assessment for property containing less than 20 acres, the county assessor shall forward the application within 10 days after the date on which he receives the application to the Department for review and qualification of property as agricultural real property.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

     NAC 361A.150  Determination of whether activities qualify as agricultural pursuits. (NRS 360.090, 360.250, 361A.120)

     1.  The assessing authority must determine from field inspection and other available information whether the activities conducted on the property qualify as agricultural pursuits.

     2.  In addition to the agricultural pursuits described in NRS 361A.030, including, raising crops, livestock, poultry, fur-bearing animals and bees, and dairying, the following activities qualify as an agricultural pursuit provided that the pursuit conducted is in accordance with generally accepted agricultural practices:

     (a) Aquatic agriculture, including, without limitation, hydroponic gardens;

     (b) Intensively produced fruits and vegetables, including, without limitation, fruits and vegetables produced in greenhouses; and

     (c) Experimental crop production.

     3.  Notwithstanding any specific statutory provision to the contrary, the following types of activities which may appear to be agricultural in nature do not by themselves qualify as an agricultural pursuit, including, without limitation:

     (a) Grazing on land by any animal kept as a hobby;

     (b) Harvesting shrubs or seeds that grow wild on the land; and

     (c) Hunting or harvesting game animals or birds.

Ê Such an activity may qualify as an agricultural pursuit if the activity is accompanied by other agricultural activities which would generate an expectation of profit consistent with the land.

     4.  In determining whether an activity qualifies as an agricultural pursuit, the assessing authority shall consider whether the activity occurs after the agricultural product has been raised and harvested or whether the activity is a process or step necessary and incident to the preparation and storage of products raised on the property. Processing activities, including, without limitation, pasteurizing and bottling milk, cheese making, honey or candy manufacturing, and slaughtering, dressing and packing meat, do not qualify for the agricultural use assessment.

     5.  As used in this section:

     (a) “Aquatic agriculture” means the propagation, cultivation and harvesting of plants or animals indigenous to water in a controlled or selected aquatic environment for the commercial production of food.

     (b) “Fur-bearing animals” means fur-bearing mammals, including, without limitation, mink, ermine, otter, chinchilla and fox.

     (c) “Greenhouse” means a fully or partially enclosed structure that is used for the propagation, cultivation or protection of food or fiber. The term includes weather shelters and hot or cold frames.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.160  Determination of whether operator is engaged in business venture for profit. (NRS 360.090, 360.250, 361A.120)

     1.  Upon a determination that an activity on the land qualifies as an agricultural pursuit, the assessing authority must then determine whether the operator is engaged in the agricultural pursuit as a business venture for profit. When determining whether an operator is engaged in a business venture for profit, reasonable profit and the expectation of a reasonable profit are not affected by any independent intervening causes of production failure or nonproductive use that are beyond the control of the operator, including, without limitation, land idle under government programs. Property not otherwise fulfilling the requirements to be considered as land on which an agricultural pursuit is conducted may still qualify as such if there are extenuating circumstances, including, without limitation, use of the land for an orchard or other perennial crops with a long maturation period that have not yet matured.

     2.  To qualify as a business venture for profit, an agricultural pursuit must raise the expectation of profit consistent with:

     (a) The size of the property used in the operation;

     (b) The capacity of the property, including, without limitation, suitability, terrain, availability of water, soil capabilities, type of vegetation grown, growing season, animal unit months, animal units and animal unit equivalents;

     (c) The viability of the property, including, without limitation, the cost and availability of water, soil capacities, market proximity, fencing and suitability of the property for other uses; and

     (d) Any other factors or criteria that the assessing authority deems appropriate under the circumstances.

     3.  In making a determination about whether the operator is engaged in a business venture for profit, especially in cases where the size of the land appears to be too small to sustain a monetary profit from agricultural pursuits, the assessing authority may consider whether a reasonable effort has been made to care for the land sufficiently and adequately, as evaluated in time, labor, equipment, management and capital consistent with accepted agricultural practices for the type of agricultural operation involved.

     4.  Gross income derived from nonagricultural uses of the land must not be included in the requirements for the total minimum gross income, including, without limitation:

     (a) Leasing of the land for billboards;

     (b) Leasing of the land for roadside produce stands;

     (c) Leasing of the land for hunting;

     (d) Income derived from the mineral estate, whether severed or not;

     (e) Income from the extraction of sand and gravel or other operations relating to products from the earth;

     (f) Interest income from a loan or investment, royalties or dividends; and

     (g) Transfer or sale of property rights such as conservation easements or severed mineral rights.

     5.  As used in this section, “animal unit equivalent” means the equivalent to the animal unit for various kinds and sizes of animals.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.170  Categorization and valuation of land devoted to agriculture. (NRS 360.090, 360.250, 361A.130, 361A.140)  Land devoted to agriculture must be categorized and valued pursuant to the classifications in the Agricultural Instructions Bulletin that is annually prepared by the Commission in accordance with NRS 361A.140.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.180  Annual study of value of lands designated for agricultural use. (NRS 360.090, 360.250, 361A.140)

      1.  On or before the first Monday in October of each year, the Department shall conduct a study of the value of lands designated for agricultural use and present the study for approval by the Commission. The Commission will incorporate the results of the study so approved into the bulletin prepared pursuant to NRS 361A.140 for use by county assessors.

     2.  The study conducted by the Department must, in accordance with NRS 361.325, be based on the productivity of the land. Productive capability of land may be determined by the classification of land and application of a capitalized earnings approach as follows:

     (a) For cultivated and native meadow or wild hay lands:

          (1) Agricultural income for lands designated as cultivated may be projected by developing estimates of gross income based on average commodity prices. Sources of commodity prices of agricultural products which the Department may use include, without limitation, the Nevada Agricultural Statistics Service and a survey of growers and local buyers.

          (2) A net operating income must be determined by subtracting an estimated allocation for expenses from the gross income. Expenses for lands must be appropriate to the type of land being valued and may include the typical costs for water and the maintenance of irrigation systems, and loss in production due to necessary management practices, such as loss in production during the seed year or the first year of the hay stand. The expenses subtracted from the gross income results in a net operating income.

          (3) A 5-year weighted average of net operating income may be capitalized into an indication of the value of the land per acre by multiplying the yield per acre, measured in tons per acre, by the net income per ton and then dividing the result by the capitalization rate. The result must be multiplied by the level of assessment to obtain an assessed value per acre.

     (b) For pasture and grazing lands:

          (1) Agricultural income for lands designated as pasture may be projected by developing estimates of gross income based on the carrying capacity of the land as measured by rentals per animal unit months per acre. Sources of rental prices for pasture and grazing lands which the Department may use include, without limitation, the Nevada Agricultural Statistics Service and a survey of growers and local buyers.

          (2) A net operating income must be determined by subtracting an estimated allocation for expenses from the gross rent per animal unit month. Expenses for lands must be appropriate to the type of land being valued and may include typical miscellaneous costs, including costs for management, insurance, stock water and maintenance of fences. The expenses subtracted from the gross income results in a net operating income to land.

          (3) A 5-year weighted average of net operating income must be capitalized into an indication of land value per acre by multiplying the net income per acre and then dividing the result by the capitalization rate. The result must be multiplied by the level of assessment to obtain an assessed value per acre.

     3.  As used in this section, “carrying capacity” means the measure of the capacity of grazing land to provide adequate forage to sustain livestock for a given period.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

Conversion to Higher Use

      NAC 361A.210  “Physical alteration” interpreted. (NRS 360.090, 360.250, 361A.031)  The Commission will interpret the term “physical alteration,” as used in NRS 361A.031, to mean the application of man-made changes, including, without limitation, changes in the contour of the land, removal of native plant life, diversion of water channels and building site improvements intended to enable the land to be used for purposes other than agricultural uses.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.220  Determination of whether final map or parcel map creates parcels not intended for agricultural use. (NRS 360.090, 360.250)  If a final map or parcel map has been recorded, the county assessor must determine whether the map creates one or more parcels not intended for agricultural use. In making such a determination, the county assessor must consider:

     1.  The size of the parcel or parcels being created;

     2.  The capacity of the property, including, without limitation, suitability, terrain, availability of water, soil capabilities, type of vegetation grown, growing season, animal unit months and animal units;

     3.  The viability of the property, including, without limitation, cost and availability of water, soil capacities, market proximity, fencing and suitability of the property for other uses; and

     4.  Any other factors or criteria that the assessing authority deems appropriate under the circumstances.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

     NAC 361A.230  Conversion of property by county assessor. (NRS 360.090, 360.250)  If the county assessor finds that a property has been converted to a higher use or otherwise becomes aware that such a conversion has taken place, the county assessor must convert the property, or that portion of the property no longer qualifying as agricultural property, to a higher use.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

      NAC 361A.240  Calculation of deferred tax when property is converted. (NRS 360.090, 360.250, 361A.155, 361A.280)  To calculate the amount of deferred tax that must be assessed when property is converted to a higher use:

     1.  The county assessor must determine what the taxable value of the property would have been pursuant to the provisions of this chapter and NRS 361.227 for the fiscal year in which the conversion took place and for the 6 previous fiscal years. The value of the land must be established based on the taxable value of comparable property for the 6 previous fiscal years.

     2.  Using the taxable value so derived, the amount of taxes for each fiscal year in which taxes would have been due and payable must then be calculated. The tax rate to be applied to the assessed value must be the rate used in the year for which the taxable value is established.

     3.  The amount of taxes paid or payable based on the agricultural use assessment must then be subtracted from the amount of taxes calculated pursuant to subsection 2. The resulting difference is the amount of deferred tax which must be added on the next property tax statement pursuant to NRS 361A.280 if the deferred tax has not already been paid.

     (Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)

GOLF COURSES

      NAC 361A.310  Definitions. (NRS 360.090, 360.250, 361A.225)  As used in NAC 361A.310 to 361A.440, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361A.320 to 361A.370, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.320  “Converted to a higher use” defined. (NRS 360.090, 360.250, 361A.225)  “Converted to a higher use” has the meaning ascribed to it in NRS 361A.031.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.330  “Golf course” defined. (NRS 360.090, 360.250, 361A.225)  “Golf course” has the meaning ascribed to it in NRS 361A.0315.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.340  “Golf course land” defined. (NRS 360.090, 360.250, 361A.225)  “Golf course land” means the land underlying:

     1.  A golf course;

     2.  Any related improvements used in connection with that golf course; and

     3.  Any appurtenant areas that are necessary for the use of any property described in subsection 1 or 2.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.350  “Golfing improvements” defined. (NRS 360.090, 360.250, 361A.225)  “Golfing improvements” means any improvements to land which are typical and necessary for the use of the property as a golf course, including, without limitation, tees, fairways, bunkers, greens, trees, turf, irrigation, lakes, lake liners, bridges, practice ranges, cart paths, trails and service roads.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.360  “Marshall and Swift” defined. (NRS 360.090, 360.250, 361A.225)  “Marshall and Swift” means the applicable manual published or furnished by the Marshall and Swift Publication Company, as that manual existed on October 1 of the year immediately preceding the current assessment year.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.370  “Related improvements” defined. (NRS 360.090, 360.250, 361A.225)  “Related improvements” means any improvements to land, other than golfing improvements, which are used in connection with a golf course, including, without limitation, clubhouses, pro shops, restaurants, parking lots, swimming pools, tennis courts, maintenance buildings and areas, and nurseries.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.380  Applicability. (NRS 360.090, 360.250, 361A.225, 361A.280)  The provisions of NAC 361A.310 to 361A.440, inclusive, apply to the determination by a county assessor of the taxable value of real property used as a golf course for the purposes of chapter 361A of NRS.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.390  Golf course land: Determination of taxable value for open-space use. (NRS 360.090, 360.250, 361A.225)  A county assessor shall:

     1.  Determine the value of the golf course land in the same manner as the county assessor would determine the taxable value of the land for purposes other than open-space use;

     2.  Multiply the amount of acreage of the golf course land by the product obtained by multiplying $2,860 by 1 plus the percentage change in the Consumer Price Index (All Items) for July 1 immediately preceding the date of valuation as compared to July 1, 2004; and

     3.  If the value calculated pursuant to subsection 1 is:

     (a) Greater than or equal to the value calculated pursuant to subsection 2, use the value calculated pursuant to subsection 2 as the taxable value for open-space use of the golf course land; or

     (b) Less than the value calculated pursuant to subsection 2, use the product obtained by multiplying the value calculated pursuant to subsection 1 by an open-space discount factor of 0.74 as the taxable value for open-space use of the golf course land.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.400  Golfing improvements: Determination of taxable value for open-space use. (NRS 360.090, 360.250, 361A.225)  A county assessor shall:

     1.  Determine the replacement cost of the golfing improvements as provided in NAC 361A.410;

     2.  Subtract from the amount determined pursuant to subsection 1 an amount for the depreciation of the golfing improvements, calculated at 1.5 percent of the amount determined pursuant to subsection 1 for each year of the adjusted actual age of the golfing improvements, up to a maximum of 50 years; and

     3.  Multiply the remainder determined pursuant to subsection 2 by a factor for the obsolescence of the golfing improvements, calculated as provided in NAC 361A.420.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.410  Golfing improvements: Determination of replacement cost. (NRS 360.090, 360.250, 361A.225)

     1.  For the purposes of subsection 1 of NAC 361A.400, a county assessor shall determine the replacement cost of the golfing improvements for a golf course in accordance with the provisions of this section.

     2.  Except as otherwise provided in subsection 3, the class of a golf course must be determined by the sum of the number of points assigned to the golf course in accordance with the following criteria:

     (a) A golf course must be assigned the number of points which is most nearly equal to the amount calculated by:

          (1) Dividing the number 18 by the number of holes on the golf course; and

          (2) Multiplying the figure obtained pursuant to subparagraph (1) by the total acreage of the golf course land.

     (b) If the slope rating of a golf course, as designated by the United States Golf Association, exceeds 94, the golf course must be assigned the number of points which is equal to the amount calculated by subtracting 94 from that slope rating and multiplying the remainder by 5.

     (c) If the total yardage of a golf course exceeds 5,000 yards, as determined from the tee which is farthest from each hole, the golf course must be assigned the number of points which is most nearly equal to the amount calculated by subtracting 5,000 from that total yardage and multiplying the remainder by 0.05.

     (d) If par for a golf course:

          (1) Is 72 or more, the golf course must be assigned 80 points;

          (2) Is 71, the golf course must be assigned 60 points;

          (3) Is 70, the golf course must be assigned 40 points;

          (4) Is 60 or more but less than 70, the golf course must be assigned 30 points; or

          (5) Is less than 60, the golf course must be assigned 20 points.

     (e) If a golf course has:

          (1) Above-average water features, except as otherwise provided in subparagraph (2), the golf course must be assigned 10 points; or

          (2) Extensive and elaborate water features which come into play on a majority of the holes, the golf course must be assigned 30 points.

     (f) If a golf course has:

          (1) Above-average landscaping, except as otherwise provided in subparagraph (2), the golf course must be assigned 10 points; or

          (2) Extensive and elaborate landscaping, including many large, transplanted trees, the golf course must be assigned 30 points.

     (g) If the total number of points assigned to a golf course pursuant to paragraphs (a) to (f), inclusive:

          (1) Does not exceed 300, the golf course must be designated as a class I course;

          (2) Is greater than 300 and does not exceed 450, the golf course must be designated as a class II course;

          (3) Is greater than 450 and does not exceed 540, the golf course must be designated as a class III course;

          (4) Is greater than 540 and does not exceed 610, the golf course must be designated as a class IV standard course;

          (5) Is greater than 610 and does not exceed 650, the golf course must be designated as a class IV good championship course; or

          (6) Is greater than 650, the golf course must be designated as a class IV excellent championship course.

     3.  If any information necessary to determine the class of a golf course pursuant to subsection 2 is unavailable, a county assessor shall use his best judgment to determine the class of the golf course.

     4.  A county assessor shall assign a cost per hole to a golf course which, except as otherwise provided in this subsection, must be within the cost range per hole for the class of the golf course, as specified in the recreational facilities section for golf courses in Marshall and Swift. The county assessor may assign a cost per hole which exceeds the maximum amount of that cost range only by:

     (a) A maximum amount of 3 percent, as appropriate, to account for any excessive grading required for the golf course land; and

     (b) The appropriate recreational facilities multiplier and local cost multiplier, as specified in Marshall and Swift.

     5.  The replacement cost of the golfing improvements must be calculated by:

     (a) Multiplying the appropriate cost per hole, as determined pursuant to subsection 4 for the class of the golf course, by the number of holes on the golf course; and

     (b) Adding the amount of any additional unit costs for bridges, man-made water features and special drainage requirements, as specified in Marshall and Swift, to the amount determined pursuant to paragraph (a).

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.420  Golfing improvements: Calculation of factor for obsolescence. (NRS 360.090, 360.250, 361A.225)  For the purposes of subsection 3 of NAC 361A.400, a county assessor shall:

     1.  Determine the number of rounds of golf played on a golf course during the 12-month period ending on June 30 immediately preceding the date of valuation;

     2.  Determine the number of rounds of golf played on that golf course during the busiest month of that period;

     3.  Multiply the number determined pursuant to subsection 2 by 12;

     4.  Divide the number determined pursuant to subsection 1 by the number determined pursuant to subsection 3; and

     5.  Apply the figure determined pursuant to subsection 4 as the factor for the obsolescence of the golfing improvements.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.430  Determination of taxable value of real property used as golf course and related improvements and personal property. (NRS 360.090, 360.250, 361A.225)  A county assessor shall:

     1.  Except as otherwise provided in subsection 3:

     (a) Determine the taxable value for open-space use of real property used as a golf course by adding the amounts determined pursuant to subsection 3 of NAC 361A.390 and subsection 3 of NAC 361A.400;

     (b) Determine the taxable value of any related improvements used in connection with that golf course in the same manner as the county assessor would determine the value of similar improvements that are not used in connection with a golf course; and

     (c) Determine the taxable value of any personal property used in connection with that golf course in the same manner as the county assessor would determine the value of similar property that is not used in connection with a golf course;

     2.  Add the amounts determined pursuant to subsection 1; and

     3.  If the sum determined pursuant to subsection 2 exceeds the full cash value of the golf course and any related improvements and personal property used in connection with that golf course, when valued as a single unit, reduce the total taxable value of the golf course and any related improvements and personal property used in connection with that golf course to that full cash value.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)

      NAC 361A.440  Calculation of deferred tax due when property is converted to higher use. (NRS 360.090, 360.250, 361A.225, 361A.280)  If a golf course or any portion thereof is converted to a higher use, the county assessor shall calculate the deferred tax due on the real property converted to a higher use on the basis of the difference between:

     1.  The taxable value of that property for each pertinent fiscal year as determined in accordance with NAC 361A.390 to 361A.430, inclusive; and

     2.  The taxable value of that property for each pertinent fiscal year as determined by adding:

     (a) The applicable amount determined pursuant to subsection 1 of NAC 361A.390; and

     (b) The applicable product determined pursuant to subsection 3 of NAC 361A.400,

Ê except that for the purposes of this subsection, the taxable value of that property must not exceed its full cash value.

     (Added to NAC by Tax Comm’n by R010-07, eff. 10-31-2007)