[Rev. 8/6/2022 10:28:38 PM]
[NAC-361 Revised Date: 7-22]
GENERAL PROVISIONS
361.004 Definitions.
REGULATIONS OF NEVADA TAX COMMISSION
361.010 Definitions.
361.012 “Actual age” defined.
361.016 “Depreciation” defined.
361.018 “Improvement” defined.
EXEMPT PROPERTY
Fine Art for Public Display
361.030 “Fine art for public display” defined.
361.032 Interpretation of terms used in NRS 361.186.
361.034 Calculation of interest payments on art indebtedness.
361.036 Apportionment of direct costs when works of art consist of more than fine art.
361.038 Requirements to receive credit for donations to certain museums.
361.040 Affidavit for claiming exemption: Form; contents.
361.044 Provision of poster to school or parent of child who receives in-home instruction.
Property Used for Control of Air and Water Pollution
361.046 Examples of facilities, devices to which exemption does not apply.
361.048 Application of exemption to additions, modifications of operational devices.
361.050 Affidavits, reports, records required to claim exemption.
Qualified Systems for Heating, Cooling or Provision of Electricity
361.052 Determination of value added by qualified system.
361.054 Form for requesting valuation.
361.056 Documentation to determine conformity to standards.
361.058 List of buildings with qualified systems.
Miscellaneous Provisions
361.065 Tangible personal property purchased by and consumed during operation of business.
361.070 Certain property leased or rented to Nevada System of Higher Education.
361.080 Privately owned park: “Park” interpreted; requirement for exemption.
361.085 “Portable goods and storage sheds and other household equipment” interpreted.
361.089 Portions of qualified low-income housing projects.
ASSESSMENTS BY COUNTY ASSESSORS
Determination of Taxable Value of Real Property
361.106 Definitions.
361.107 “Abstraction method” defined.
361.1073 “Accrued depreciation” defined.
361.1075 “Adjustment” defined.
361.109 “Allocation method” defined.
361.1095 “Base lot method” defined.
361.111 “Capitalization of ground rents” defined.
361.1113 “Comparative unit method” defined.
361.1115 “Cost of development method” defined.
361.1117 “Cost of replacement” defined.
361.1125 “Expected absorption period” defined.
361.1127 “Fixture” defined.
361.113 “Improved land” defined.
361.1133 “Improvement” defined.
361.1141 “Land” defined.
361.1145 “Land enhancements” defined.
361.115 “Land residual technique” defined.
361.1155 “Mass appraisal technique” defined.
361.116 “Obsolescence” defined.
361.1163 “Off-site enhancements” defined.
361.1165 “On-site enhancements” defined.
361.1167 “Parcel” defined.
361.117 “Qualified subdivision” defined.
361.1171 “Raw land” defined.
361.11715 “Real property” defined.
361.1172 “Regression analysis” defined.
361.1173 “Single property technique” defined.
361.1174 “Stratify” defined.
361.11745 “Trade fixture” defined.
361.1175 “Units of comparison” defined.
361.1176 “Vacant land” defined.
361.1177 Adoption by reference and availability of certain publications; revision of publications after adoption.
361.1178 Code of categories of land use.
361.1179 Land: Methods for determining full cash value.
361.11795 Land: Sales comparison approach using mass appraisal technique.
361.118 Land: Sales comparison approach using single property technique.
361.1182 Land: General requirements for sales comparison approach.
361.1184 Land: Stratification for purposes of sales comparison approach.
361.1186 Land: Sales data for purposes of sales comparison approach.
361.1188 Land: Adjustments for purposes of sales comparison approach.
361.119 Land: Alternate methods to sales comparison approach.
361.1192 Land: General requirements for use of alternative methods.
361.1194 Land: Abstraction method.
361.1196 Land: Land residual technique.
361.1198 Land: Capitalization of ground rents.
361.1202 Land: Cost of development method.
361.1204 Land: Allocation method.
361.1206 Land: Regression analysis.
361.121 Obtaining and maintaining sufficient data regarding characteristics of property.
361.1212 Use of appropriate units of comparison.
361.1214 Consideration of influence of on-site and off-site enhancements.
361.1216 Development of mass appraisal model to explain or predict market value from real estate data.
361.1218 Determination of whether sufficient sales of comparable properties are available.
361.122 Valuation of improved land.
361.1225 Accrued depreciation: Application; calculation.
361.123 Contaminated property: Definitions.
361.1232 Contaminated property: Burden of proof; documentation required.
361.1234 Contaminated property: Determination of full cash value.
361.1236 Contaminated property: Annual review.
361.124 Determination of actual age of improvement or newly constructed addition to improvement.
361.125 Improvement: Initial taxable value.
361.127 Improvement: Replacement.
361.128 Improvement: Calculation of cost of replacement.
361.1285 Common-interest communities.
361.129 Appraisal of parcel as part of qualified subdivision.
361.1295 Taxable value of land within qualified subdivision.
361.130 Mobile or manufactured home.
361.1305 Billboards.
361.131 Taxable value exceeding full cash value.
361.1315 Adjustment in apportionment for school district.
Real Property Within Common-Interest Community
361.133 Definitions.
361.1332 Applicability.
361.1334 Valuation of and assessment of tax on community units and common elements.
361.1336 Allocation of taxable value of common elements to community units.
Determination of Taxable Value of Personal Property
361.1345 Definitions.
361.1351 “Acquisition cost” and “original cost” defined.
361.1355 “Costs of installation” defined.
361.1361 “Personal Property Manual” defined.
361.1365 Personal Property Manual: Publication; contents; approval; use.
361.1371 Procedure for determination of taxable value.
361.1375 Determination of expected life, cost-index factors and depreciation.
361.138 Reported acquisition cost for leased equipment.
361.139 Personal property acquired with real property for lump sum; use of other valuation techniques.
Aircraft
361.1401 Definitions.
361.1402 “Aircraft” defined.
361.1403 “Commercial aircraft” defined.
361.1404 “Domicile” defined.
361.1405 “General aircraft” defined.
361.1406 “Kit aircraft” defined.
361.1407 “Light-sport aircraft” defined.
361.1408 “Small unmanned aircraft” defined.
361.1409 “Taxable situs” defined.
361.1411 “Unmanned aircraft system” defined.
361.1421 Applicability.
361.1424 Exemption for aircraft qualifying as business inventory.
361.1426 Contents of written statement to county assessor to determine taxable value.
361.1428 Determination whether aircraft has taxable situs in this State.
361.143 Certain aircraft owned by certain servicemembers or spouses do not acquire taxable situs in this State.
361.1432 Certain aircraft owned by certain foreign air carriers do not acquire taxable situs in this State.
361.1434 Claim by owner that taxable value of aircraft is subject to allocation if aircraft has taxable situs in this State and another state or country.
361.1436 Assessment of aircraft with taxable situs in this State; formula for allocating if aircraft has taxable situs in this State and another state or country.
361.1437 Period for which aircraft must be included on assessment roll of county.
361.1438 Certain exclusions from partial abatement of property taxes.
Miscellaneous Requirements
361.144 Areas of appraisal for cycle of reappraisal.
361.146 Records of reappraisals.
361.150 Report of appraisals by county assessor.
361.151 Statement of valuation of property sold.
361.152 Assessment lists: Contents; distribution.
361.154 Assessment roll filed with Secretary of State Board of Equalization.
361.155 Billing of real property on unsecured roll.
ASSESSMENTS BY NEVADA TAX COMMISSION
General Provisions
361.200 Definitions.
361.202 “Accelerated amortization” defined.
361.203 “Accelerated cost recovery system” defined.
361.204 “Accelerated depreciation” defined.
361.206 “Accrual accounting” defined.
361.208 “Accrued depreciation” defined.
361.210 “Advance payments for gas” defined.
361.212 “Allocation to states” defined.
361.214 “Allowance for funds used during construction” defined.
361.216 “Amortization” defined.
361.218 “Annuity” defined.
361.220 “Antipollution controls” defined.
361.222 “Apportionment to intrastate jurisdiction” defined.
361.224 “Assessment ratio” defined.
361.226 “Band-of-investment” defined.
361.228 “Bond discount” defined.
361.230 “Bond premium” defined.
361.232 “Bond rating” defined.
361.234 “Book depreciation” defined.
361.236 “Book value,” “net book” defined.
361.238 “Capital structure” defined.
361.240 “Capitalization process” defined.
361.242 “Capitalization rate” defined.
361.244 “Cash accounting” defined.
361.246 “Cash equivalent” defined.
361.248 “Cash flow,” “net cash flow” or “after-tax cash flow” defined.
361.250 “Cash flow, before-tax” defined.
361.252 “Certificate of convenience and necessity” defined.
361.254 “Common carrier” defined.
361.256 “Compound interest and annuity tables” defined.
361.258 “Construction work in progress” defined.
361.260 “Contribution in aid of construction” defined.
361.262 “Debt” defined.
361.264 “Deferred federal income taxes” defined.
361.266 “Depreciation” defined.
361.268 “Discount rate” defined.
361.270 “Earnings-price ratio” defined.
361.272 “Economic life” defined.
361.274 “Economic rent” defined.
361.276 “Effective rate of interest” defined.
361.278 “Equity” defined.
361.280 “Expense” defined.
361.282 “Fair market value” defined.
361.284 “Fair return” defined.
361.285 “Final reconciliation” defined.
361.286 “Fixed expenses” defined.
361.288 “Flow-through accounting” defined.
361.290 “Form P report” defined.
361.292 “Form 2 report” defined.
361.294 “Form 10-K report” defined.
361.296 “Forms R-1 and R-2” defined.
361.298 “Fractional appraisal” defined.
361.300 “Full cash value” defined.
361.302 “Functional depreciation” defined.
361.304 “Generally accepted accounting principles” defined.
361.306 “Gross addition” defined.
361.308 “Gross income” defined; synonymous with “gross earnings.”
361.310 “Historical cost” defined; synonymous with “original cost.”
361.312 “Imbedded debt cost” defined.
361.314 “Inch equivalent” defined.
361.316 “Income” defined.
361.318 “Income approach to value” defined.
361.320 “Indicator of value” defined.
361.322 “Interest rate” defined.
361.324 “Interperiod allocation” defined.
361.326 “Investment tax credit” defined.
361.328 “Inwood factor or method” defined.
361.330 “Liberalized depreciation” defined.
361.332 “Load factor” defined.
361.334 “Main track” defined.
361.336 “Market value” defined.
361.338 “Net additions” defined.
361.340 “Net operating income” defined.
361.342 “Normalization accounting” defined.
361.344 “Obsolescence” defined.
361.346 “Operating expenses” defined.
361.348 “Operating revenue” defined; synonymous with “net revenue.”
361.350 “Original cost” defined.
361.352 “Possessory interest” defined.
361.354 “Prepayments for gas” defined.
361.356 “Present worth” defined; synonymous with “present value.”
361.358 “Price-earnings ratio” defined.
361.360 “Rate base” defined.
361.362 “Rate of capitalization” defined.
361.364 “Rate of performance” defined.
361.366 “Rate of return” defined.
361.368 “Recapture” defined.
361.370 “Remaining economic life” defined.
361.372 “Replacement cost” defined.
361.374 “Reproduction cost” defined.
361.376 “Reserve life” defined.
361.378 “Retirement depreciation” defined.
361.380 “Return on equity” defined.
361.382 “Revenue” defined.
361.384 “Risk” defined.
361.386 “Sinking fund” defined.
361.387 “Statistical median” defined.
361.388 “Straight-line depreciation” defined.
361.390 “Summation method of valuation” defined.
361.392 “System” defined.
361.394 “Tariff” defined.
361.396 “Taxable value” defined.
361.398 “Times interest earned” defined.
361.400 “Uniform system of accounts” defined.
361.402 “Unitary method of valuation” defined.
361.404 “Variable expenses” defined.
361.406 “Yield to maturity” defined.
361.408 Indicators of value: Cost approach; income approach; market or stock and debt approach; reconciliation.
361.410 Use of unit rule of valuation.
361.411 Reports of construction work in progress.
Communications, Electric, Gas Transmission, Pipeline and Railroad Companies
361.421 Cost approach indicator of value: Determination.
361.4215 Cost approach indicator of value: Optional cost information.
361.423 Income approach indicator of value: Formula for determination.
361.425 Income approach indicator of value: Capitalization rate.
361.427 Stock and debt approach indicator of value.
361.429 Reconciliation of indicators of value.
361.431 Allocation of value of interstate and intercounty properties.
361.433 Deductions from taxable value.
Air Transportation Companies Generally
361.451 Applicability.
361.452 Cost approach indicator of value.
361.454 Income approach indicator of value: Formula for determination.
361.456 Income approach indicator of value: Capitalization rate.
361.460 Reconciliation of indicators of value.
361.462 Deduction of depreciated cost of nonallocable flight equipment.
361.464 Allocation of value of interstate companies.
361.466 Development, application of factor for property located in Nevada.
361.468 Addition of property located in Nevada.
Certain Air Transport Companies, Airline Industry Groups, and Unscheduled or Charter Air Carriers
361.4685 Applicability.
361.469 Formula for assessment.
361.4695 Property located in Nevada.
Private Car Line Companies
361.506 Formula for assessment.
Municipal Electric Companies
361.508 Valuation.
CERTIFICATION OF APPRAISERS
361.535 Definitions.
361.537 “Appraiser” defined.
361.539 “Appraiser’s certificate” defined.
361.541 “Appraiser’s certificate examination” defined.
361.543 “Approved education course” defined.
361.545 “Board” defined.
361.547 “Contact hour” defined.
361.549 “Independent contractor” defined.
361.551 “Personal property appraiser’s certificate” defined.
361.553 “Real property appraiser’s certificate” defined.
361.555 Temporary appraiser’s certificate.
361.557 Appraiser’s certificate.
361.559 Independent contractor’s appraiser’s certificate: Generally.
361.561 Independent contractor’s appraiser’s certificate: Renewal.
361.563 Appraiser’s certificate examination.
361.565 Continuing education: Review and approval of courses; list of approved courses.
361.567 Continuing education: Award of contact hours; documentation; waiver of and failure to satisfy requirements.
361.569 Continuing education: Maintenance and availability of records.
361.571 Suspension and reinstatement of appraiser’s certificate.
361.573 Revocation and reinstatement of appraiser’s certificate; reapplication after revocation.
361.575 Appeal of suspension or revocation of appraiser’s certificate.
EQUALIZATION OF ASSESSMENTS AMONG THE SEVERAL COUNTIES
361.580 Ratio study.
COLLECTION OF TAXES
Collection on Certain Vehicles
361.585 Placement of stickers on mobile homes and campers.
Delinquent Payments
361.590 Waiver or reduction of penalty or interest.
Assignment of Tax Liens by County Treasurers
361.595 Definitions.
361.5952 “Assignee” defined.
361.5954 “Delinquent taxes” defined.
361.5956 “Parcel number” defined.
361.5958 “Tax lien” defined.
361.5959 “Tax year” defined.
361.596 Affidavit of authorization.
361.5962 Duties of county treasurer upon receipt of affidavit of authorization; affidavit of compliance; affidavit of exemption.
361.5964 Denial of certificate of assignment.
361.5966 Issuance of certificate of assignment.
361.5968 Effect of certificate of assignment.
361.597 Release of tax lien after assignment.
PARTIAL ABATEMENT OF TAXES
General Abatement, Primary Residential Abatement and Residential Rental Abatement
361.601 Definitions.
361.6015 “Abatement percentage” defined.
361.602 “County tax receiver” defined.
361.6025 “General abatement” defined.
361.603 “Primary residence of the owner” defined.
361.6035 “Primary residential abatement” defined.
361.604 “Residential rental abatement” defined.
361.6045 “Single-family residence” defined.
361.605 General responsibilities of Department.
361.6055 General responsibilities of county assessors and county tax receivers.
361.606 Claim for primary residential abatement: Form and contents; execution; action by county assessor; change in ownership or occupation of property.
361.6065 Eligibility of certain property for primary residential abatement; treatment of certain property used for multiple purposes.
361.607 Residential rental abatement: Duties of Department, county assessor and owner of property; filing of claim and affidavit; eligibility of property.
361.6075 General abatement: Taxable unit of centrally assessed property; ineligible property of interstate or intercounty company.
361.608 Calculation of amount of abatement: Applicable amount of tax levy for immediately preceding year and current year.
361.6085 Calculation of amount of abatement: Property which escaped taxation; effect of adjustment to valuation of property to correct certain errors.
361.609 Summary reports of property taxes billed on behalf of each taxing entity.
Abatement for Remainder Parcels
361.61002 Definitions.
361.61004 “Abatement percentage” defined.
361.61006 “Agricultural use” defined.
361.61008 “Commercial or industrial use” defined.
361.6101 “Current year” defined.
361.61012 “Institutional use” defined.
361.61014 “New parcel” defined.
361.61016 “New parcel for development” defined.
361.61018 “Open-space use” defined.
361.6102 “Partial abatement” defined.
361.61022 “Prior year” defined.
361.61024 “Recreational use” defined.
361.61026 “Remainder parcel” defined.
361.61028 “Residential use” defined.
361.6103 “Vacant land” defined.
361.61032 Scope and purpose.
361.61034 New parcels for development: Evaluation; determination of change in use; effect of determination.
361.61036 Calculation of amount of abatement and maximum amount of property taxes.
361.61038 Determination of amount of net property taxes attributable to remainder parcel for prior year; appeal of determination.
Improvement to or Change in Actual or Authorized Use of Property
361.6104 Definitions.
361.610405 “Agricultural use” defined.
361.61041 “Commercial use” defined.
361.610415 “Industrial use” defined.
361.61042 “Institutional use” defined.
361.610425 “Mining use” defined.
361.61043 “Multifamily residential use” defined.
361.610435 “On-site improvement” defined.
361.61044 “Open-space use” defined.
361.610445 “Partial abatement” defined.
361.61045 “Recreational use” defined.
361.610455 “Single-family residential use” defined.
361.61046 “Vacant land” defined.
361.610465 Scope and purpose; exception.
361.61047 Determination of improvement to property.
361.610475 Determination of change in actual use.
361.61048 Determination of change in authorized use.
361.610485 Determination of amount of assessed value excluded from calculation of partial abatement and amount of property taxes to be added to tax roll.
361.61049 Notification of determination that will result in exclusion of any assessed value from calculation of partial abatement.
Appeal of Determination of Applicability of Certain Abatements
361.6105 Definitions.
361.61052 “Contact person” defined.
361.61054 “Hearing officer” defined.
361.61056 “Intervener” defined.
361.61058 “Party” defined.
361.6106 “Petitioner” defined.
361.61062 “Staff” defined.
361.61064 Notice of appeal of determination of county assessor or Department.
361.61066 Hearing before hearing officer; findings and conclusions of hearing officer.
361.61068 Proposed order of hearing officer: Written objection; reply to objection; action by Commission.
361.6107 Hearing before Commission: Order of argument.
361.61072 Hearing before Commission: Basis on record before hearing officer; determination that record is inadequate.
361.61074 Hearing before Commission: Action by Commission; issuance of written order.
Annexation of Real Property to Taxing Entity
361.6115 Definitions.
361.6117 “Combined overlapping adjusted tax rate” defined.
361.612 “Entity-adjusted parcel tax rate” defined.
361.6123 “Revised tax base” defined.
361.6125 “Taxing entity” defined.
361.6127 “Year of annexation” defined.
361.613 Events constituting annexation.
361.6133 Calculations required after annexation.
361.6135 Duties of tax receiver of county and Department.
Abatement for Certain Energy Efficient Structures
361.617 Definitions.
361.6175 “Commission” defined.
361.618 “LEED” defined.
361.6185 “LEED Green Building Rating System” defined; availability of copies.
361.619 Application to Commission; ineligible structures.
361.6195 Consideration of application at meeting of Commission; notice of meeting.
361.620 Grant of abatement by Commission.
EQUALIZATION BY COUNTY BOARD OF EQUALIZATION
361.622 Scope; practice and procedure; power of county boards to adopt additional requirements.
361.623 List of members of additional panel.
361.624 Duty to equalize within geographic vicinity, whole county; limitation on adjustment of result of cyclic reappraisal.
361.626 Duties of county clerk.
361.627 Consideration of complaints.
361.628 Summary of appraisal data.
361.630 Order of appearances; testimony to be under oath.
361.631 Evidence of market value.
361.632 Consolidation of cases.
361.634 Notices.
361.638 Exhibits; minutes; petition forms.
361.640 Notice of action.
361.6405 Determination of percentage of obsolescence.
361.641 Deduction of percentage of obsolescence when taxable value exceeds cash value.
361.643 Record to support reduction of assessed valuation.
361.645 Appeal of decision to State Board of Equalization: Record of proceedings before county board.
EQUALIZATION BY STATE BOARD OF EQUALIZATION
361.650 Definitions.
361.651 “County board” defined.
361.652 “Equalize property valuations” defined.
361.653 “Interested person” defined.
361.654 “Ratio study” defined.
361.655 “Secretary” defined.
361.656 “State Board” defined.
361.657 Scope.
361.658 Adoption by reference of Standard on Ratio Studies; revision of publication after adoption.
361.659 Annual sessions of State Board: Duties of State Board; adjournment.
361.660 Information to be considered by State Board.
361.661 Provision of certain information by county assessor upon request of State Board.
361.662 Ratio studies and other statistical analyses: Performance upon request of and evaluation by State Board.
361.663 Investigation and evaluation by Department of procedures and operation of county assessor.
361.664 Preliminary finding that class or group of properties was not assessed uniformly in accordance with methods of appraisal and at level of assessment required by law: Scheduling and notice of hearing.
361.665 Hearing on preliminary finding: Order of State Board; additional hearing following order for reappraisal.
361.666 Hearings: Provision of notice by Department.
361.667 Hearings: Persons required to appear; conduct.
361.668 Order of State Board increasing or decreasing valuation of property: Duties of county assessor and Department.
361.669 Reconsideration of order of State Board.
PROCEEDINGS BEFORE STATE BOARD OF EQUALIZATION
General Provisions
361.682 Scope; construction; deviation.
361.684 Definitions.
361.685 “Owner” and “person employed” interpreted.
361.686 Meetings: Notice; telephone conference; conduct.
361.688 Communications.
Appeals on Behalf of Owners of Property
361.6892 Direct appeal to State Board on behalf of owner of property.
361.6894 Documentation to cure objection to written authorization to file appeal.
361.6896 Scope of authority of person authorized to file appeal; information required to be included in written authorization to file appeal.
361.6898 Scope of authority of person employed by owner or affiliate of owner.
Parties to Proceedings
361.690 Classification of parties.
361.692 Interveners.
361.698 Qualifications of attorneys.
361.700 Limitations on representation of parties and appearance as expert witness by former employees of Department or Attorney General.
Hearings
361.701 Petition for appeal of final decision of county board.
361.7012 Petition for direct appeal to State Board.
361.7014 Action upon receipt of petition; case file.
361.7016 Consolidation of cases.
361.7018 Notice of representation by authorized agent.
361.702 Notice of hearing; duties of county assessor or representative of county assessor.
361.703 Briefs, memoranda and other written explanations.
361.705 Motions by parties; action by State Board on its own motion.
361.706 Continuances.
361.708 Appearance of parties; failure to appear.
361.712 Subpoenas.
361.714 Testimony must be under oath.
361.720 Official notice of State Board.
361.721 Format of documents.
361.723 Filing and receipt of documents; admission of late document into evidence.
361.724 Service of documents; certificate of service.
361.726 Additional information and appraisal.
361.729 Testimony before State Board: Authority to testify; person who unlawfully acts as appraiser of real estate.
361.731 Transcripts.
361.733 Direct appeal: Rights of petitioner, respondent and staff.
361.735 Direct appeal: Burden of proof; receipt of evidence.
361.737 Direct appeal: Rules of evidence; depositions; exchange of names of witnesses and copies of evidence.
361.738 Appeal of decision of county board: Submission of certain evidence prohibited; removal of certain evidence from record authorized.
361.739 Appeal of decision of county board: Introduction of new evidence.
361.741 Appeal of decision of county board: Burden of proof; order and length of presentations.
361.745 Direct appeal: Consideration of issues, contentions and evidence outside scope of petition.
361.747 Submission of case for decision; decision of State Board; correction of clerical mistake in record.
361.7475 Petition for reconsideration: Filing and contents; answer; grant or denial.
361.748 Action for redress from finding of State Board.
Advisory Opinions
361.749 Petitions: Authority; form and contents.
361.751 Jurisdiction.
361.753 Opinions: Form; contents; issuance; delivery; appeals.
ALLOCATION OF REDUCTIONS IN TAX REVENUE RESULTING FROM CERTAIN PARTIAL ABATEMENTS OF TAXES
General Provisions
361.760 Entity-adjusted parcel tax rate: Calculation and use.
Property Located Outside of Redevelopment Area or Tax Increment Area
361.765 Definitions.
361.767 “Combined overlapping adjusted tax rate” defined.
361.769 “Combined overlapping tax rate” defined.
361.771 “Entity-adjusted parcel tax rate” defined.
361.773 “Entity parcel tax rate increase” defined.
361.775 “Redevelopment area” defined.
361.777 “Tax increment area” defined.
361.779 “Taxing entity” defined.
361.781 Calculation of deductions from amounts taxing entities otherwise entitled to receive.
Property Located in Redevelopment Area or Tax Increment Area
361.785 Definitions.
361.787 “Combined overlapping adjusted tax rate” defined.
361.789 “Debt tax rate” defined.
361.791 “Entity-adjusted parcel tax rate” defined.
361.793 “Entity-adjusted parcel tax rate increase” defined.
361.795 “Entity parcel tax rate increase” defined.
361.797 “Entity percentage allowed parcel tax rate increase” defined.
361.799 “Parcel effective assessed value” defined.
361.801 “Parcel effective incremental value” defined.
361.803 “Parcel share of base value” defined.
361.805 “Property” defined.
361.807 “Redevelopment area” defined.
361.809 “Tax increment area” defined.
361.811 “Taxing entity” defined.
361.813 Calculations: General requirements.
361.815 Distribution of ad valorem taxes collected on property for which parcel effective incremental value is zero.
361.817 Distribution of ad valorem taxes collected on property located in redevelopment area and for which parcel effective incremental value is greater than zero.
361.819 Distribution of ad valorem taxes collected on property located in tax increment area and for which parcel effective incremental value is greater than zero.
361.821 Application of certain provisions: Limitations.
POSTPONEMENT OF PAYMENT OF TAX
361.851 Claim: Filing; form; contents; accompanying documentation.
361.853 Claim: Action by county treasurer.
361.855 Determination of eligible amount of income.
361.857 Approval of claim for taxes accrued against mobile or manufactured home.
361.859 Approval of claim for taxes accrued against single-family residence owned by trust.
361.861 Determination of amount for and period of postponement.
361.863 Certificate of eligibility: Form; exclusion of certain information.
361.865 Certificate of eligibility: Effects of recordation and filing.
361.867 Statement of amount postponed: Contents.
361.869 Application of payments made before amounts become due.
361.871 Fraudulent claims.
ALLODIAL TITLE
General Provisions
361.900 Definitions.
361.902 “Certificate” defined.
361.904 “Installment agreement” defined.
361.906 “Owns” defined.
361.908 “Program” defined.
361.910 “Property tax” defined.
361.912 “Single-family dwelling” defined.
361.914 “Titleholder” defined.
Program
361.920 Purpose; requirements for participation.
Certificate
361.926 Denial of application for failure to provide requested information.
361.928 Consequences of fraudulent misrepresentation or omission of information relating to application or installment agreement.
361.930 Cost: Determination; actuarial calculations; credit for certain property tax payments.
361.932 Cost: Payment options.
361.934 Payment in lump sum.
361.936 Payment in annual installments: Installment agreement.
361.938 Payment in annual installments: Remittance of payments; default.
361.940 Notification of State Treasurer by holder of certificate if certain changes relating to property occur.
361.942 Recalculation of cost upon addition or deletion of allodial titleholder involving transfer of interest to person other than joint tenant.
361.944 Recalculation of cost upon addition or deletion of allodial titleholder to reflect change in titleholders and taxable value.
361.946 Relinquishment; refund.
361.948 Transference to heir.
Annual Statement
361.950 Provision by State Treasurer to designee.
Allodial Title Trust Account
361.956 Efficient and secure maintenance; limitation on use of money for investment and administrative expenses.
361.958 Recommended consultation with tax professional concerning income tax liability and deductions relating to Account.
GENERAL PROVISIONS
NAC 361.004 Definitions. (NRS 361.0775) Except as otherwise provided in NAC 361.617 to 361.620, inclusive, as used in this chapter, unless the context otherwise requires:
1. “Commission” means the Nevada Tax Commission.
2. “Department” means the Department of Taxation.
3. “Executive Director” means the Executive Director of the Department.
4. “Fiscal year” means that period of time from July 1 of one year to and including June 30 of the following year.
(Supplied in codification; A by Comm’n on Econ. Development by R220-05, 9-18-2006)
REGULATIONS OF NEVADA TAX COMMISSION
NAC 361.010 Definitions. (NRS 360.090, 360.250) As used in NAC 361.010 to 361.61049, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.012, 361.016 and 361.018, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004; A by R011-06, 5-4-2006; R001-07, 3-23-2007; R183-07, 8-26-2008; R109-08, 12-17-2008)
NAC 361.012 “Actual age” defined. (NRS 360.090, 360.250) “Actual age” means the total number of years from the year of the construction of an improvement to the year of the lien date for the taxes which it affects.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)
NAC 361.016 “Depreciation” defined. (NRS 360.090, 360.250) “Depreciation” means, except as otherwise provided in NAC 361.266, a loss in the value of improvements or personal property from any cause.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.018 “Improvement” defined. (NRS 360.090, 360.250) “Improvement” means, except as otherwise provided in NAC 361.1133, all appurtenances erected upon or affixed to the land, including, without limitation, those improvements listed in paragraphs (a) and (b) of subsection 1 of NRS 361.035.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004; A by R039-10, 8-13-2010, eff. 7-1-2012)
EXEMPT PROPERTY
Fine Art for Public Display
NAC 361.030 “Fine art for public display” defined. (NRS 360.090, 361.068, 361.186) As used in NAC 361.030 to 361.044, inclusive, unless the context otherwise requires, “fine art for public display” has the meaning ascribed to it in paragraph (b) of subsection 4 of NRS 361.068.
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
NAC 361.032 Interpretation of terms used in NRS 361.186. (NRS 360.090, 361.068, 361.186) For the purposes of NRS 361.186, the Department shall interpret:
1. “Direct costs of owning and exhibiting the fine art” to:
(a) Except as otherwise provided in paragraph (a) of subsection 5 of NRS 361.186, include, without limitation:
(1) Interest payments at a rate that does not exceed the rate set forth in NRS 99.040 made by the taxpayer, or a subsidiary or affiliated entity of the taxpayer, on secured or unsecured indebtedness used to acquire the work of fine art during the fiscal year for which the taxpayer is claiming an exemption for the work of fine art if the taxpayer complies with the provisions of NAC 361.034.
(2) Insurance payments for the work of fine art, including, without limitation, insurance which provides a guaranty on the authenticity of the work of fine art.
(3) Costs related to the repair, maintenance and conservation of the work of fine art, including, without limitation, cleaning and framing.
(4) Costs related to the moving and storage of the work of fine art in the immediate area of the facility in which the work of fine art is displayed.
(5) Salaries and employee benefits for persons employed to work in the facility in which the work of fine art is displayed, including, without limitation, gallery managers, curators, security personnel, reservations agents and admissions personnel.
(6) Costs related to the operation and maintenance of the facility in which the work of fine art is displayed, including, without limitation, environmental control systems, lighting and security systems that are specific to such a facility.
(7) Rent or other lease obligations for the facility in which the work of fine art is displayed.
(8) Personal property taxes assessed for the work of art, except penalties or interest assessed on such taxes.
(9) Real and personal property taxes assessed for the facility in which the work of fine art is displayed, except penalties or interest assessed on such taxes.
(10) Allowable depreciation pursuant to subsection 4 of NRS 361.227 for furniture or fixtures in the facility in which the work of fine art is displayed.
(11) Allowable depreciation pursuant to paragraph (b) of subsection 1 of NRS 361.227 for real property on which the facility in which the work of fine art is displayed is located and improvements to such a facility.
(12) Communication devices that are used exclusively for informing visitors to the facility about the work of fine art.
(13) Costs for uniforms that persons who are employed by the facility in which the work of fine art is displayed are required to wear, including, without limitation, costs of laundering the uniforms.
(14) Costs associated with cleaning the facility in which the work of fine art is displayed.
(15) Commissions paid to credit card companies for the use of credit cards to pay admission fees.
(16) Advertising costs to notify the public of the display of the work of fine art.
(b) Not include any rent pursuant to an agreement for the lease or loan of a work of fine art for public display.
2. “Fees collected for exhibiting the fine art” to include, without limitation, fees paid by visitors to the facility for the rental of communication devices that inform them about the work of fine art.
3. “Resident” to mean a person who lives in this State and possesses a valid driver’s license or other identification issued by this State.
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
NAC 361.034 Calculation of interest payments on art indebtedness. (NRS 360.090, 361.068, 361.186)
1. For a work of fine art that was acquired with a portion of the proceeds of a secured or unsecured indebtedness, the amount of the interest on the total indebtedness that the taxpayer may claim as interest payments made on the art indebtedness pursuant to subparagraph (1) of paragraph (a) of subsection 1 of NAC 361.032 must be calculated for the fiscal year for which the taxpayer is claiming an exemption for the work of fine art by applying the applicable rate or rates of interest to the amount of the art indebtedness. The interest payments must be recalculated each time that:
(a) A payment is made towards the principal of the total indebtedness;
(b) A draw is made against the principal of the total indebtedness; or
(c) The principal of the total indebtedness is increased or decreased in any other manner.
2. For the purposes of the calculations required by subsection 1:
(a) If the principal of the total indebtedness is reduced by a principal payment or in some other manner, the principal of the art indebtedness must be reduced as follows:
|
Total amount of the art indebtedness before payment or other reduction
|
X |
Amount of principal payment made or other reduction of the principal of the total amount of the indebtedness |
= |
Reduction in the principal on the art indebtedness |
|
Total amount of the principal of the indebtedness before payment or other reduction |
(b) The amount of the interest payments for the art indebtedness must be determined as follows, after reducing the total amount of the art indebtedness by any reduction in principal calculated pursuant to paragraph (a), reducing the total amount of the principal of the indebtedness by the principal payment or other reduction and increasing the total amount of the principal of the indebtedness by the amount of any increase in the total amount of the principal of the indebtedness:
|
Total amount of the art indebtedness
|
X |
Interest accrued on the total amount of the indebtedness |
= |
Amount of interest accrued on the art indebtedness |
|
Total amount of the principal of the indebtedness |
3. If a taxpayer, or a subsidiary or affiliated entity of the taxpayer, incurs interest expenses on indebtedness, a portion of the proceeds of which were used to acquire a work of fine art, the burden for appropriately allocating the principal payments and interest expenses for the work of fine art between the taxpayer and the subsidiary or affiliated entity of the taxpayer and between the work of fine art and the other items acquired with the proceeds of the indebtedness is on the taxpayer who is claiming an exemption for the work of fine art pursuant to paragraph (j) of subsection 1 of NRS 361.068.
4. If, for the purposes of claiming an exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068, a taxpayer acquires a work of fine art using the proceeds of an indebtedness, the taxpayer must incur the indebtedness for the work of fine art within 120 days after the acquisition of the work of fine art unless the Department agrees to an extension of time.
5. To qualify or remain eligible for an exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068, a taxpayer who wishes to refinance the outstanding amount of the indebtedness incurred to purchase the work of fine art must be able to trace the new debt directly to the repayment of the prior debt.
6. As used in this section, “art indebtedness” means the amount of the principal of the total indebtedness attributable to the acquisition of the work of fine art.
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
NAC 361.036 Apportionment of direct costs when works of art consist of more than fine art. (NRS 360.090, 361.068, 361.186) If an exhibition does not consist solely of fine art for public display owned by the taxpayer, the Department will apportion the direct costs of owning and exhibiting the fine art based on the percentage that the value of the fine art for public display owned by the taxpayer bears to the value of all the works of art included in the exhibition.
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
NAC 361.038 Requirements to receive credit for donations to certain museums. (NRS 360.090, 361.068, 361.186) For a taxpayer to receive a credit for a donation to a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, such a museum must be operated by an organization that:
1. Qualifies for exemption from taxation pursuant to section 501(c)(3) of the Internal Revenue Code; and
2. The net earnings of which do not inure to the benefit of any private shareholder or other person.
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
NAC 361.040 Affidavit for claiming exemption: Form; contents. (NRS 360.090, 361.068, 361.186) The affidavit that a taxpayer who is claiming an exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068 must file pursuant to paragraph (a) of subsection 3 of NRS 361.068 with the county assessor on or before June 15 of each year in which the taxpayer claims the exemption must:
1. Be notarized;
2. Be in a form prescribed by the Department; and
3. Contain:
(a) A statement that the work of fine art will meet the criteria set forth in paragraph (b) of subsection 4 of NRS 361.068 during the following fiscal year;
(b) A description of the work of fine art for which the taxpayer is claiming an exemption;
(c) The purchase price or appraisal value of the work of fine art;
(d) The fiscal year for which the exemption is sought; and
(e) A statement in substantially the following form:
“I, ____________, state under oath and pursuant to the conditions set forth in NRS 361.185 and 361.265, that the attached claim for the property tax exemption is made in good faith and to the best of my knowledge and belief is a true, correct and complete statement that said property meets the requirements of NRS 361.068. Further, I authorize the Nevada Tax Commission or its designee to inspect the fine art for public display for which I am claiming an exemption and any supporting documents, or otherwise verify the validity of my claim.”
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
NAC 361.044 Provision of poster to school or parent of child who receives in-home instruction. (NRS 360.090, 361.068, 361.186) Upon receiving a request for a poster pursuant to paragraph (b) of subsection 3 of NRS 361.068, the taxpayer shall select which poster to provide to the school or parent.
(Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)
Property Used for Control of Air and Water Pollution
NAC 361.046 Examples of facilities, devices to which exemption does not apply. (NRS 360.090, 361.077) Examples of facilities and devices to which the exemption from taxation provided by NRS 361.077 does not apply are:
1. A mining operation or the generating facility of an electric utility which, in the treatment of water for reentry into public streams, distills and sells the water at a minor additional cost and offsets the total cost of the treatment and distilling process.
2. The installation of pollution control equipment to remove air pollutants from fuel exhausts and better utilize the fuel in manufacturing or industrial plants or where recovery of minerals in mining operations is made possible which results in a lower overall operating expense ratio.
3. Facilities or equipment, including blacktop for roadways and parking areas, water trucks and sprinkling systems, which are necessary for the normal operation of the enterprise and which are not specifically exempted by statute or the Constitution or which are not required by the appropriate environmental agencies.
[Tax Comm’n, Property Tax Reg. part No. 6, eff. 9-7-73; A 3-29-74; 11-15-77]
NAC 361.048 Application of exemption to additions, modifications of operational devices. (NRS 360.090, 361.077) If an addition is made to or a modification is made in a device whose primary purpose is operational, but the addition or modification is a “facility, device or method for the control of air or water pollution” as defined in NRS 361.077, the value of the addition or modification, but not the value of the entire device, is exempt from taxation.
[Tax Comm’n, Property Tax Reg. part No. 6, eff. 11-15-77]
NAC 361.050 Affidavits, reports, records required to claim exemption. (NRS 360.090, 361.077)
1. An affidavit on a form approved by the Department for claiming an exemption pursuant to NRS 361.077 must be supplied annually to the county assessor of the county in which the property is located or to the Department if the property is of an intercounty or interstate nature as defined in NRS 361.032.
2. Owners of property of an interstate nature, as defined in NRS 361.032, shall report only those properties physically located in Nevada.
3. The taxpayer shall maintain accurate records which will reflect the additional net revenue to the operation which results from the installation of any equipment for which an exemption is claimed pursuant to NRS 361.077.
4. Copies of any orders from regulatory agencies directing the installation of a device or equipment must be submitted upon request to the county assessor or the Department.
[Tax Comm’n, Property Tax Reg. part No. 6, eff. 9-7-73; A 11-15-77]
Qualified Systems for Heating, Cooling or Provision of Electricity
NAC 361.052 Determination of value added by qualified system. (NRS 360.090, 360.250, 361.079)
1. For the purpose of NRS 361.079, a county assessor may consider value added by a qualified system as the difference between the cost of the building with the qualified system and the cost of a building constructed in a conventional manner without a qualified system and put to the same or a similar use. For example, a building of masonry construction used to provide solar energy may be valued on the basis of frame construction.
2. The value added by that portion of a qualified system which is not used for heating or cooling or to provide electricity or is essential to a conventionally built structure, must be included in the assessed value of the building. For example, a qualified system with an enclosed area for a solarium or sun space that is also used as a limited living area may be valued as an enclosed porch if it facilitates the use of solar energy.
(Added to NAC by Tax Comm’n, eff. 4-24-84)
NAC 361.054 Form for requesting valuation. (NRS 360.090, 360.250, 361.079) A county assessor may provide an appropriate form for the owner of a building to request the valuation of a qualified system. If an owner does not complete such a form, the owner may not be precluded from appealing the valuation of the building to the county board of equalization.
(Added to NAC by Tax Comm’n, eff. 4-24-84)
NAC 361.056 Documentation to determine conformity to standards. (NRS 360.090, 360.250, 361.079) A county assessor, a county board of equalization or the State Board of Equalization may require documentation from the owner of a building who has requested the valuation of a qualified system to determine whether it conforms to the standards established by the Department and functions to conserve energy.
(Added to NAC by Tax Comm’n, eff. 4-24-84)
NAC 361.058 List of buildings with qualified systems. (NRS 360.090, 361.079) On or before April 1 of each year, each county assessor shall submit to the Department for the preceding year a written list of the buildings in his or her county which have qualified systems.
(Added to NAC by Tax Comm’n, eff. 4-24-84)
Miscellaneous Provisions
NAC 361.065 Tangible personal property purchased by and consumed during operation of business. (NRS 360.090, 361.068)
1. All tangible personal property which is purchased by a business and which is claimed to be exempt pursuant to paragraph (d) of subsection 1 of NRS 361.068 must be consumed during the operation of the business and must not be intended to become a component part of a manufactured item for sale or lease.
2. The personal property for which such an exemption is claimed must be material that is:
(a) Used up, drained, absorbed, dissipated or expended during the normal day-to-day operation of the business;
(b) Characterized by its individual low cost in relation to the other more expensive fixed assets of the business;
(c) Disposable, with a generally useful life of less than 1 year; and
(d) Not meant for resale.
3. Tangible personal property which is consumed by a business and to which this exemption applies may include, without limitation, envelopes, pens, copy paper, paper clips, toner, tape, rubber gloves, masks, cyanide, janitorial supplies, bathroom tissue, light bulbs, playing cards, dice, napkins, straws, “doggie bags,” paper bags, wrapping materials, register tape, packaging supplies, invoices, Styrofoam, tires or batteries.
4. This exemption does not apply to any tangible personal property which is required to be depreciated for federal income tax purposes.
(Added to NAC by Tax Comm’n, eff. 7-9-96; A by R031-03, 8-4-2004)
NAC 361.070 Certain property leased or rented to Nevada System of Higher Education. (NRS 360.090, 361.099)
1. Application for an exemption pursuant to NRS 361.099 must be made to the county assessor by June 15 of each year.
2. The application must include a copy of the rental agreement and documentation from the lessor that proves that the total consideration for the rental or lease of the property is less than 10 percent of the fair market value of the property. Documentation may include, but is not limited to:
(a) A copy of the lease of the previous tenants;
(b) A copy of the lease or notarized statement from owners of similar or like properties; and
(c) Statements from real estate brokers.
(Added to NAC by Tax Comm’n, eff. 7-9-96)
NAC 361.080 Privately owned park: “Park” interpreted; requirement for exemption. (NRS 360.090, 361.0605)
1. As used in NRS 361.0605, the Department shall interpret “park” to mean a detached tract of privately owned real property that is set apart and maintained for public use, generally of quite sizable proportions devoted to purposes of ornamentation and recreation, and usually platted out with trees and ornamented in a way pleasing to the eye as well as furnishing an opportunity for open-air recreation.
2. To qualify as a park for the purposes of the exemption provided by NRS 361.0605, a sign which is clearly legible and visible from ground level must be posted at each entrance to the park stating “This park is open to the public for all to use.”
(Added to NAC by Tax Comm’n, eff. 9-6-96)
NAC 361.085 “Portable goods and storage sheds and other household equipment” interpreted. (NRS 360.090, 361.069) As used in subparagraph (8) of paragraph (a) of subsection 4 of NRS 361.069, the Department shall interpret “portable goods and storage sheds and other household equipment” to include, without limitation:
1. A portable shed which is less than 120 square feet in area and which does not have a foundation;
2. A portable carport or aluminum awning which is less than 120 square feet in area and which does not have a foundation;
3. A satellite dish that is owned by the owner of the dwelling unit or a person who resides in the dwelling unit;
4. Decorative outdoor lighting;
5. A freestanding wood stove;
6. A portable spa;
7. A swamp cooler or air-conditioning unit that is attachable to the window of dwelling units;
8. Skirting on a mobile home;
9. Portable steps on a mobile home; and
10. Portable tubular panels for a corral.
(Added to NAC by Tax Comm’n by R014-98, eff. 11-20-98)
NAC 361.089 Portions of qualified low-income housing projects. (NRS 360.090, 361.082)
1. An owner of property who wishes to qualify the property for exempt status pursuant to NRS 361.082 must apply to the county assessor for the exemption not later than June 15 of each year. The application must be on a form approved by the Commission.
2. Except as otherwise provided in this section, an application for the exemption of property pursuant to NRS 361.082 must contain information showing:
(a) That the property is part of a qualified low-income housing project funded in part by federal money appropriated pursuant to 42 U.S.C. §§ 12701 et seq. for the year in which the exemption applies;
(b) That the property, including related facilities, has been occupied or used by qualified residents or will be used exclusively as low-income units as of June 15 of that year; and
(c) The total number of qualifying low-income units and the number of units rent-restricted and currently occupied by persons meeting the income limitation applicable under 26 U.S.C. § 42(g)(1).
3. The following additional documentation must also be attached to the application:
(a) Documentation showing the property is part of a qualified low-income housing project, including, without limitation:
(1) A declaration of restrictive covenants;
(2) A letter of verification from the appropriate housing agency in charge of dispensing federal funds which states that the project qualifies as a qualified low-income housing project and includes the type of federal funding granted, the date on which the funding was granted and the date of expiration of the funding; or
(3) Any other verification of the disbursement of federal funding and the date of the disbursement.
(b) Documentation showing the election of the taxpayer to qualify as a low-income housing project under the 20-50 test or the 40-60 test pursuant to 26 U.S.C. § 42(g). Such documentation may include, without limitation, a copy of that portion of a federal income tax return claiming the federal tax credit.
(c) For an initial application, a copy of:
(1) The first quarter or annual status report for the project issued by the appropriate housing agency showing the number of units, the sizes of the units, the names of the tenants occupying those units, the sizes of the households living in those units, the actual amount of rent paid by the tenants of those units, the utility allowance, the annual household incomes of the tenants of those units and the rental activity for those units; and
(2) Area median income limits published each year by the Department of Housing and Urban Development used in the determination of eligibility for Section 8 subsidized rental housing which are incorporated in the income limits for the Home Investment Partnerships Program as of March 31 of the most current year.
4. Each owner of property who receives an exemption for low-cost housing shall annually file with the county assessor:
(a) A report that includes the information and documentation identified in subsections 2 and 3; or
(b) An affidavit providing that information on a form approved by the Commission.
5. An owner of property need not include on his or her renewal form the documentation and information described in paragraph (a) of subsection 2.
6. The owner of the property shall maintain accurate records in support of the information requested.
7. The county assessor shall disallow claims for exemption on any unit that:
(a) Is not rent-restricted; or
(b) Is not a part of a qualified low-income housing project funded in part by federal money appropriated pursuant to 42 U.S.C. §§ 12701 et seq. for the year in which the exemption is sought.
8. Any claim for exemption denied by the county assessor affecting the taxable value of the property may be appealed to the county board of equalization in accordance with NRS 361.345.
9. As used in this section:
(a) The “20-50 test” means a test that requires 20 percent or more of the residential units in the low-income housing project to be both rent-restricted and occupied by natural persons whose income is 50 percent or less of the area median gross income.
(b) The “40-60 test” means a test that requires 40 percent or more of the residential units in the low-income housing project to be both rent-restricted and occupied by natural persons whose income is 60 percent or less of the area median gross income.
(c) “Low-income unit” means any unit in a building that:
(1) Is rent-restricted pursuant to 26 U.S.C. § 42(g)(2);
(2) Is occupied by persons who meet the income limitations applicable under the 20-50 test or the 40-60 test, as appropriate; and
(3) Meets all other applicable exceptions and limits pursuant to 26 U.S.C. § 42(i)(3).
(d) “Qualified low-income housing project” means any project for residential rental property meeting the 20-50 test or the 40-60 test, whichever is elected by the taxpayer pursuant to 26 U.S.C. § 42.
(e) “Related facilities” means that part of qualified low-income housing occupied or used exclusively by persons with low incomes, including, without limitation, playgrounds, community rooms, the manager’s office and the low-income unit.
(Added to NAC by Tax Comm’n by R029-03, eff. 12-4-2003)
ASSESSMENTS BY COUNTY ASSESSORS
Determination of Taxable Value of Real Property
NAC 361.106 Definitions. (NRS 360.090, 360.250) As used in NAC 361.106 to 361.1315, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.107 to 361.1176, inclusive, have the meanings ascribed to them in those sections.
(Supplied in codification; A by Tax Comm’n, 11-14-88; R013-98, 11-20-98; R031-03, 8-4-2004; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012; R068-12, 9-14-2012)
NAC 361.107 “Abstraction method” defined. (NRS 360.090, 360.250) “Abstraction method” means a method of estimating the value of land by subtracting from the sales prices of improved parcels the full contributory value of all items attributable to the value of the improvements, thus yielding estimates of the residual or remainder value of the land.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)
NAC 361.1073 “Accrued depreciation” defined. (NRS 360.090, 360.250) “Accrued depreciation” means the amount of loss in the value of an improvement relative to its replacement cost, reproduction cost or original cost as a result of physical deterioration, functional obsolescence or economic obsolescence.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1075 “Adjustment” defined. (NRS 360.090, 360.250) “Adjustment” means a modification of the reported value of a variable, such as sale price or gross income, using a model calibration technique for the purpose of estimating the full cash value of property.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.109 “Allocation method” defined. (NRS 360.090, 360.250) “Allocation method” means a method used to value land, in the absence of a sufficient number of sales of vacant land, by estimating a typical ratio of land to total value and applying that ratio to comparable improved properties to determine the value that the land contributes to the total value of the subject property.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1095 “Base lot method” defined. (NRS 360.090, 360.250) “Base lot method” means a method of appraising land pursuant to which:
1. The parcel or other area of land being appraised is compared to a base lot consisting of a parcel or hypothetical area of land having common or typical characteristics and a known value; and
2. Any differences between the parcel or other area of land being appraised and the base lot with respect to location, size, shape, topography and similar factors are analyzed by the appraiser,
Ê to estimate the value of the land being appraised.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)
NAC 361.111 “Capitalization of ground rents” defined. (NRS 360.090, 360.250) “Capitalization of ground rents” means the estimation of the value of land in the absence of comparable sales by capitalizing the revenue from market-rate leases of land.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)
NAC 361.1113 “Comparative unit method” defined. (NRS 360.090, 360.250) “Comparative unit method” means a method of appraising land pursuant to which an average or typical value is estimated for each stratum of land, using square feet, front feet, acres, buildable units or other similar units of comparison.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)
NAC 361.1115 “Cost of development method” defined. (NRS 360.090, 360.250) “Cost of development method” means a method used to estimate the value of undeveloped land in which direct and indirect costs and entrepreneurial profit are deducted from an estimate of the probable proceeds to be obtained from selling the land as developed parcels and the resulting net income is discounted to a present value at a market-derived rate.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)
NAC 361.1117 “Cost of replacement” defined. (NRS 360.090, 360.250) “Cost of replacement” means the total cost of construction required to replace an improvement with a substitute of like or equal utility using current standards of materials and design, including the cost of any pertinent labor, materials, supervision, contractors’ profit and overhead, architects’ plans and specifications, sales taxes and insurance.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1125 “Expected absorption period” defined. (NRS 360.090, 360.250) “Expected absorption period” means the length of time within which all the parcels in a qualified subdivision may reasonably be expected to be sold, rented or occupied if they are actively marketed. The period begins on July 1 of the year for which the tax on the parcels is levied and ends on the date determined by the county assessor.
(Added to NAC by Tax Comm’n, eff. 11-14-88)
NAC 361.1127 “Fixture” defined. (NRS 360.090, 360.250) “Fixture” means an item, other than a trade fixture, that was originally personal property which has been installed or attached to land or an improvement in a permanent manner. As used in this section, “installed or attached to land or an improvement in a permanent manner” means that:
1. Either:
(a) An item is attached to, imbedded in or permanently resting upon land or an improvement, or is attached by other means that are normally used for permanent installation, and cannot be removed without substantially damaging the item or the land or improvement with which it is being used; or
(b) The use or purpose of an item that is not otherwise physically annexed to land or an improvement is so adapted that it is:
(1) A necessary, integral or working part of the land or improvement;
(2) Designed or committed for use with the land or improvement; or
(3) So essential to the land or improvement that the land or improvement cannot perform its desired function without the nonattached item; and
2. A reasonable person would consider the item to be a permanent part of the land or improvement, taking into account annexation, adaptation and other objective manifestations of permanence, including, without limitation, whether:
(a) Removal of the item would destroy the item or cause significant damage to the real property to which it is installed or attached;
(b) The historic use of the item indicates an intention to leave the item in place;
(c) The terms of a written agreement between parties indicates the intention of a tenant or lessee to remove or transfer ownership of the item; or
(d) Ownership of the item would be conveyed with a transfer of the real property to which it is installed or attached.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012; A by R068-12, 9-14-2012)
NAC 361.113 “Improved land” defined. (NRS 360.090, 360.250) “Improved land” means land on which there are any improvements sufficient to allow the identification of or establish the current actual use.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 5-27-82]—(NAC A by R031-03, 8-4-2004; R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1133 “Improvement” defined. (NRS 360.090, 360.250) “Improvement” means any building, fixture or other structure erected upon or affixed to the land, including, without limitation, any of those improvements listed in paragraphs (a) and (b) of subsection 1 of NRS 361.035. The term does not include any land enhancements.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1141 “Land” defined. (NRS 360.090, 360.250) “Land” means that portion of real property which includes:
1. The surface of the earth, together with the air space above that surface and everything under that surface to the apex at the center of the earth;
2. Any natural resource in its natural state attached to the land, including, without limitation, mineral deposits, timber, water and soil; and
3. Any rights, interests, benefits and privileges belonging or attached to the land.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1145 “Land enhancements” defined. (NRS 360.090, 360.250) “Land enhancements” means:
1. Physical modifications of the land whose contribution to the value of the land is not subject to wear and tear or to exhaustion, such as, without limitation, excavation and other earthwork; and
2. Rights which allow the land to be put to any use.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.115 “Land residual technique” defined. (NRS 360.090, 360.250) “Land residual technique” means a method used to estimate the value of land from a knowledge of normal net income, the discount rate, the remaining economic life of the property and the full contributory value of any improvements and nonrealty items. The method isolates a measurable income stream attributable to the improvements and then estimates the value of the land by capitalizing the income stream attributable to the land.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)
NAC 361.1155 “Mass appraisal technique” defined. (NRS 360.090, 360.250) “Mass appraisal technique” means a procedure for the valuation of a group of properties as of a given date using either a base lot method or comparative unit method.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.116 “Obsolescence” defined. (NRS 360.090, 360.250) “Obsolescence” means an impairment to property resulting in the full cash value of the property being less than its taxable value as otherwise computed.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]
NAC 361.1163 “Off-site enhancements” defined. (NRS 360.090, 360.250) “Off-site enhancements” means improvements and land enhancements outside the boundaries of the subject property which facilitate the development of the property for any use, including, without limitation, such improvements and land enhancements that do not prepare the property for a specific use, such as streets, traffic signals, curbs, gutters and sidewalks, and such improvements and land enhancements for the provision of water service, sewer service, electricity service, natural gas service, telephone service and service for the transmission of data.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1165 “On-site enhancements” defined. (NRS 360.090, 360.250) “On-site enhancements” means land enhancements within the boundaries of the subject property which facilitate the development of the property for any use.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1167 “Parcel” defined. (NRS 360.090, 360.250) “Parcel” means a contiguous area of land which is:
1. Held under common ownership;
2. Subject to conveyance separately from other land; and
3. Identified by an assessor’s parcel number in accordance with the provisions of NRS 361.189 to 361.220, inclusive.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.117 “Qualified subdivision” defined. (NRS 360.090, 360.250) “Qualified subdivision” means a group of parcels meeting the criteria contained in NAC 361.129.
(Added to NAC by Tax Comm’n, eff. 11-14-88)
NAC 361.1171 “Raw land” defined. (NRS 360.090, 360.250) “Raw land” means land in its natural state before any human modification.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.11715 “Real property” defined. (NRS 360.090, 360.250)
1. “Real property” has the meaning ascribed to it in NRS 361.035 and includes:
(a) Land;
(b) Fixtures;
(c) Improvements;
(d) On-site enhancements; and
(e) Any rights, interests, benefits and privileges belonging or attached to the land.
2. The term does not include a trade fixture.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012; A by R068-12, 9-14-2012)
NAC 361.1172 “Regression analysis” defined. (NRS 360.090, 360.250) “Regression analysis” means a statistical technique used to analyze data to predict the value of one variable from the known values of other variables.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)
NAC 361.1173 “Single property technique” defined. (NRS 360.090, 360.250) “Single property technique” means a procedure for the valuation of a single parcel or other area of land as of a given date.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1174 “Stratify” defined. (NRS 360.090, 360.250) “Stratify” means to sort parcels of property into relatively homogeneous groups based upon use, physical characteristics, location or other relevant characteristics.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.11745 “Trade fixture” defined. (NRS 360.090, 360.250) “Trade fixture” means an item of personal property that:
1. Is installed or attached nonpermanently to real property by an owner or tenant for the purpose of conducting a business or trade and not for the enhancement of the real property to which it is installed or attached; and
2. Has a unique identity and function which is related to the business or trade for which it is installed or attached and which is distinct from the real property to which it is installed or attached.
(Added to NAC by Tax Comm’n by R068-12, eff. 9-14-2012)
NAC 361.1175 “Units of comparison” defined. (NRS 360.090, 360.250) “Units of comparison” means the components into which properties may be divided for the purpose of comparing sales, such as, without limitation, the sale price for property as a whole or for property per square foot, front foot, cubic foot, acre, lot, dwelling unit, room, bed, seat or floor-area ratio.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1176 “Vacant land” defined. (NRS 360.090, 360.250) “Vacant land” means any land other than improved land, including, without limitation:
1. Raw land; and
2. Land that has been prepared or developed for use, but on which there are not yet any improvements sufficient to allow the identification of or establish the current actual use.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1177 Adoption by reference and availability of certain publications; revision of publications after adoption. (NRS 360.090, 360.250, 361.227)
1. The Commission hereby adopts by reference:
(a) The Standard on Mass Appraisal of Real Property, January 2008 edition, as published by the International Association of Assessing Officers. A copy of that publication may be obtained from the International Association of Assessing Officers, 314 West Tenth Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store, for the price of $10. A free copy of that publication may be obtained at the Internet address http://www.iaao.org/uploads/StandardOnMassAppraisal.pdf.
(b) The Standard on Automated Valuation Models (AVMs), September 2003 edition, as published by the International Association of Assessing Officers. A copy of that publication may be obtained from the International Association of Assessing Officers, 314 West Tenth Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store, for the price of $8. A free copy of that publication may be obtained at the Internet address http://www.iaao.org/uploads/AVM_STANDARD.pdf.
(c) Property Appraisal and Assessment Administration, 1990 edition, as published by the International Association of Assessing Officers. A copy of that publication may be obtained from the International Association of Assessing Officers, 314 West Tenth Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store, for the price of $75.
(d) The Residential Cost Handbook, as published by Marshall & Swift on August 13, 2010. A copy of that publication may be obtained from Marshall & Swift, 911 Wilshire Boulevard, 16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx, for the price of $308.95.
(e) The Marshall Valuation Service, as published by Marshall & Swift on August 13, 2010. A copy of that publication may be obtained from Marshall & Swift, 911 Wilshire Boulevard, 16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx, for the price of $562.95.
(f) The Residential Estimator software, as published by Marshall & Swift on August 13, 2010. A copy of that software may be obtained from Marshall & Swift, 911 Wilshire Boulevard, 16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx, for the price of $980.95.
(g) The Commercial Estimator software, as published by Marshall & Swift on August 13, 2010. A copy of that software may be obtained from Marshall & Swift, 911 Wilshire Blvd., 16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx, for the price of $1,146.95.
2. If any of the publications adopted by reference pursuant to:
(a) Paragraph (a), (b) or (c) of subsection 1 is revised, the Commission will review the revision to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 30 days after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the pertinent publication adopted by reference pursuant to subsection 1.
(b) Paragraph (d), (e), (f) or (g) of subsection 1 is revised, the Executive Director shall review the revision to determine its suitability for this State. If the Executive Director determines that the revision is suitable for this State, the Executive Director shall notify each county assessor in this State of that determination and the revision becomes part of the pertinent publication adopted by reference pursuant to subsection 1.
3. Each county assessor shall maintain for public review a copy of each publication adopted by reference pursuant to paragraphs (a) to (e), inclusive, of subsection 1.
(Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)
NAC 361.1178 Code of categories of land use. (NRS 360.090, 360.250, 361.227)
1. The Department shall prescribe and annually publish a code of categories of land use, which:
(a) Must include and define at least the following primary categories:
(1) Vacant land.
(2) Single-family residential land.
(3) Multi-residential land.
(4) Commercial land.
(5) Industrial land.
(6) Rural land.
(7) Utilities.
(b) May include and define any secondary categories that the Department deems to be appropriate for each primary category.
2. The Department shall:
(a) Consider any recommendations submitted by any county assessor in this State regarding the amendment of the code prescribed pursuant to subsection 1; and
(b) If the Department disapproves of any such recommendation, notify each county assessor in this State of the reasons for that disapproval.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1179 Land: Methods for determining full cash value. (NRS 360.090, 360.250, 361.227)
1. If sufficient sales of comparable properties which were vacant at the time of sale are available, a county assessor shall determine the full cash value of land by applying the sales comparison approach using:
(a) A mass appraisal technique in accordance with the provisions of NAC 361.11795 to 361.1188, inclusive; or
(b) A single property technique in accordance with the provisions of NAC 361.118 to 361.1188, inclusive.
2. If insufficient sales of comparable properties which were vacant at the time of sale are available to carry out subsection 1, a county assessor shall determine the full cash value of land as provided in NAC 361.119.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.11795 Land: Sales comparison approach using mass appraisal technique. (NRS 360.090, 360.250, 361.227) A county assessor shall apply the sales comparison approach using a mass appraisal technique as follows:
1. The county assessor shall stratify the properties being appraised into groups based upon location, zoning, use or other relevant characteristics. Sufficient strata must be established to ensure that all types of property subject to appraisal are appropriately represented.
2. After stratification pursuant to subsection 1, the county assessor shall:
(a) For each stratum:
(1) Analyze sales of comparable land; and
(2) Make adjustments to the sales prices as necessary to eliminate any nonrealty components of value and any differences resulting from the real property rights conveyed, financing terms, conditions of sale, market conditions, location, physical characteristics, size, zoning, use, governmental restrictions, sales concessions and expenditures made after sales that influence sales prices; and
(b) Determine an appropriate base lot or comparative unit value to be used as a benchmark for valuing the properties in each stratum and, if appropriate, market adjustments to the base lot or comparative unit value for differences in physical characteristics, size, zoning, use, view, governmental restrictions and other attributes that affect value. The adjustments:
(1) Must be mathematical changes made to the base lot or comparative unit values to account for differences in the elements of comparison between the base lot or comparative unit and the subject property;
(2) May be made only to the base lot or comparative unit value in order to reflect the value of the subject property; and
(3) May be made by adding or subtracting lump-sum dollar values, or by applying positive or negative percentage differentials, to the base lot or comparative unit values.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.118 Land: Sales comparison approach using single property technique. (NRS 360.090, 360.250, 361.227) A county assessor shall apply the sales comparison approach using a single property technique as follows:
1. The county assessor shall adjust the sales prices or unit values of comparable properties as necessary to eliminate differences between the comparable properties and the subject property that affect value. The adjustments:
(a) Must be mathematical changes made to the sales prices or unit values of the comparable properties to account for differences in elements of comparison between the comparable properties and the subject property;
(b) May be made only to the comparable properties, and not to the subject property; and
(c) May be made by adding or subtracting lump-sum dollar values, or by applying positive or negative percentage differentials, to the sales prices or unit values of the comparable properties.
2. The elements of comparison between the comparable properties and the subject property that may be used by the county assessor include, without limitation, the real property rights conveyed, financing terms, conditions of sale, market conditions, location, physical characteristics, size, zoning or use, governmental restrictions and nonrealty components of value.
3. After adjusting the comparable properties for differences that affect value, the county assessor shall analyze the range of adjusted sales prices of the comparable properties to arrive at an estimate of value for the subject property.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC A by R031-03, 8-4-2004; R166-07, 6-17-2008)
NAC 361.1182 Land: General requirements for sales comparison approach. (NRS 360.090, 360.250, 361.227) For the purposes of carrying out the provisions of NAC 361.11795 or 361.118:
1. If the subject property is improved land, the comparable properties must have a use that is consistent with that of the improved land.
2. The elements of comparison used and adjustments made by the county assessor must be identifiable and supported by verifiable market data.
3. If it is necessary to make an adjustment to recognize the view influence or any other property attribute associated with the subject property, the county assessor shall:
(a) Make a physical determination of the view influence from the land of each respective view parcel. The county assessor shall make the view influence determination from any area on the parcel that is capable of development. This would exclude legally required setbacks or portions of the parcel subject to applicable land use restrictions or applicable deed restrictions that prohibit development.
(b) Upon the written request of the owner, provide to the owner as soon as practicable, but not later than 15 days after receiving the request, current market evidence for each adjustment for the view influence or other property attribute. In a county whose population is 40,000 or more, “current market evidence” as used in this paragraph means sales data concerning sales of improved or unimproved parcels that occurred during the 36-month period immediately preceding July 1 of the year before the lien date, unless the Commission has approved the petition of the county assessor to consider sales that occurred before that 36-month period.
(c) Upon the written request of the owner, provide to the owner as soon as practicable, but not later than 15 days after receiving the request, a comprehensive written analysis describing any mass appraisal or single property technique used, written in such a manner that the taxpayer can determine whether the value of the parcel has been appropriately adjusted by the county assessor. For an appraisal made using a:
(1) Single property technique, the written analysis must describe each adjustment, whether attributable to view influence or another property attribute, and how each adjustment was made.
(2) Mass appraisal technique, the written analysis must describe the stratum in which the parcel was included, the comparable sales and any adjustments thereto used to develop a base lot or comparative unit value for the stratum, and any adjustments made to the base lot or comparative unit value to determine the value of the property.
(d) Consider whether an adjustment is necessary because of impairments caused by obstructions or aesthetic criteria, including, without limitation, tree growth, utility lines, water tanks or the presence of other improvements.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)
NAC 361.1184 Land: Stratification for purposes of sales comparison approach. (NRS 360.090, 360.250, 361.227)
1. For the purposes of carrying out the provisions of NAC 361.11795 or 361.118, a county assessor:
(a) Must stratify comparable properties into the primary categories of land use prescribed by the Department pursuant to NAC 361.1178; and
(b) May also stratify those properties:
(1) Into any secondary categories of land use prescribed by the Department pursuant to NAC 361.1178; and
(2) If those properties are used in a similar or competitive manner, into geographic market areas. Geographic market areas must be initially defined by major natural, political or human-constructed boundaries and then further defined by areas of complementary land uses or neighborhoods, in which all the properties are similarly influenced by environmental, governmental, social and economic forces. Additional criteria may be considered for defining a geographic market area, including, without limitation, the size of the parcels or subdivisions of land.
2. For the purposes of carrying out this section, a county assessor:
(a) Must determine the number of land use categories and geographic market areas to use in the stratification of comparable properties based upon on the size and diversity of the geographic area being analyzed and the number of sales available within each proposed stratum; and
(b) May, if a geographic market area crosses county boundaries, cooperate with other county assessors in the exchange of information.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1186 Land: Sales data for purposes of sales comparison approach. (NRS 360.090, 360.250, 361.227) For the purposes of carrying out the provisions of NAC 361.11795 or 361.118:
1. In determining whether the sales price of each comparable property is representative of the full cash value of the subject property, the county assessor must acquire sufficient sales data concerning the comparable property. The sales data may include, without limitation:
(a) The total amount paid for the property and the terms of sale;
(b) The names and contact information of the buyer and seller;
(c) The relationship of the buyer and seller;
(d) The legal description, address and parcel identifier of the property;
(e) Information concerning the type of transfer that is sufficient to enable the county assessor to determine whether the transfer was at arm’s length;
(f) The length of time the property was on the market;
(g) The extent of the interest transferred to the buyer;
(h) The nature of nonrealty items; and
(i) The date of the transfer.
2. The county assessor may determine the accuracy of the sales data acquired pursuant to subsection 1 by:
(a) Contacting the buyer, seller, title company or any other knowledgeable participant in the transaction;
(b) Using sales questionnaires;
(c) Conducting personal interviews; or
(d) Reviewing declarations of value.
Ê The county assessor shall disclose to each person he or she contacts for information pursuant to this subsection that the information provided by the person will only be used to establish value for the purposes of property taxation.
3. The following types of sales may provide unreliable information regarding full cash value and require additional verification to determine whether the sale represents full cash value:
(a) Sales involving governmental agencies and public utilities;
(b) Sales involving charitable, religious or educational institutions;
(c) Sales involving financial institutions;
(d) Sales between relatives or corporate affiliates;
(e) Sales of convenience, including, without limitation, a sale intended to correct a flaw in title;
(f) Sales settling an estate;
(g) Forced sales, including, without limitation, a sale resulting from a judicial order; and
(h) Sales involving doubtful title.
4. The county assessor may sort sales and other market data into homogeneous groups to reflect different market influences and variations in zoning, other land-use controls and probable use, and to ensure that land values will reflect market data for parcels with similar or competitive uses in the same area.
(Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)
NAC 361.1188 Land: Adjustments for purposes of sales comparison approach. (NRS 360.090, 360.250, 361.227)
1. For the purposes of carrying out the provisions of NAC 361.11795 or 361.118:
(a) The amount of the adjustments to comparable sales or to the base lot or comparative unit value must be determined using paired sales analysis, sales-resales analysis, regression analysis or another model calibration technique in accordance with the provisions of chapters 6 and 15 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177.
(b) If multiple types of adjustments to comparable sales or to the base lot or comparative unit value are necessary, those adjustments must be made as follows:
(1) Any transactional adjustments must be made to the total sale price in the following sequential order:
(I) Adjustments for the real property rights conveyed.
(II) Adjustments for the financing terms.
(III) Adjustments for the conditions of sale, including any sales concessions.
(IV) Adjustments for expenditures made immediately after the purchase.
(V) Adjustments for market conditions.
(2) After making all the applicable transactional adjustments described in subparagraph (1), units of comparison must be calculated based upon the adjusted sale price, and then adjusted for differences in location and any physical, economic and other characteristics which affect value.
2. For the purposes of this section:
(a) “Adjustments for market conditions” means adjustments to reflect increases or decreases in property values in the market for property over time.
(b) Adjustments for market conditions must not be made unless property values for the same general area and classification of property have increased or decreased since the transaction dates. To make such an adjustment, the difference in sales prices of the same or similar properties over time must be measured to extract a rate of adjustment to apply to comparable sales to improve comparability.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.119 Land: Alternate methods to sales comparison approach. (NRS 360.090, 360.250, 361.227)
1. If a county assessor is not able to use the sales comparison approach for land pursuant to NAC 361.11795 or 361.118 because sufficient sales of comparable properties which were vacant at the time of sale are not available, the county assessor shall determine the full cash value of land through any of the following methods, either in combination with available land sales or as the sole method of valuation:
(a) Abstraction method;
(b) Land residual technique;
(c) Capitalization of ground rents;
(d) Cost of development method;
(e) Allocation method, if the properties are substantially similar; and
(f) Regression analysis.
2. The use of sales of comparable improved properties pursuant to subsection 1 is subject to the provisions of NAC 361.11795 or 361.118, as applicable, NAC 361.1182 to 361.1188, inclusive, and the following:
(a) Sales of comparable improved properties must be adjusted to remove the full contributory value of all items attributable to the improvements, including, without limitation, direct and indirect costs, soft costs, entrepreneurial profit, and personal property and other nonrealty components of value. The costs may be reported in a lump-sum basis per unit.
(b) The complete obsolescence of an improvement for purposes of analyzing the sales price of a comparable improved property is best determined when the improvement is demolished or removed, but may be considered when:
(1) Sufficient evidence demonstrates an intention to demolish or remove the improvement, which evidence may include, without limitation, evidence that:
(I) A permit has been issued for the demolition of the improvement;
(II) A disclosure concerning the demolition or removal of the improvement has been filed with the Securities and Exchange Commission;
(III) An order has been issued for the condemnation of the improvement; or
(IV) Construction and development financing has been obtained with respect to the comparable property which establishes that the demolition or removal of the improvement is intended; and
(2) No occupancy or no use is established before the completion of the demolition or removal of the improvement.
(c) Sales of comparable improved properties may be used in determining valuation regardless of whether the complete obsolescence of an improvement may be determined or considered pursuant to paragraph (b).
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004; A by R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1192 Land: General requirements for use of alternative methods. (NRS 360.090, 360.250, 361.227) If a county assessor uses any of the methods described in subsection 1 of NAC 361.119 to derive the value of land, the county assessor must:
1. Examine and evaluate:
(a) The reliability and accuracy of the method used;
(b) The characteristics of the subject property;
(c) The sufficiency and quantity of the data used to derive the value;
(d) The reliability and accuracy of the data used and any pertinent adjustments made to comparable property;
(e) The relative validity of each comparable sale used;
(f) The number and magnitude of any adjustments made to comparable property or the reasons why no adjustments were made; and
(g) The relative importance of individual elements of comparison; and
2. Determine whether:
(a) The derived value is accurate for the type of property being valued; or
(b) Another method must be used or additional data must be obtained to derive the value accurately.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1194 Land: Abstraction method. (NRS 360.090, 360.250, 361.227) When using the abstraction method, a county assessor must:
1. Perform that method in accordance with the provisions of chapter 7 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177.
2. Apply accrued depreciation, in accordance with the provisions of NAC 361.1225, when calculating the full contributory value of the improvements to be subtracted from the sale price of the improved parcel to derive the residual land value.
3. Analyze the residual land values obtained in the same manner as sales of vacant land to establish comparative unit or base lot values.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1196 Land: Land residual technique. (NRS 360.090, 360.250, 361.227) When using the land residual technique, a county assessor must perform that technique in accordance with the provisions of chapter 12 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1198 Land: Capitalization of ground rents. (NRS 360.090, 360.250, 361.227)
1. A county assessor may use the capitalization of ground rents to derive the value of land only when there is sufficient information regarding land rentals or leases which are independent of improvements, such as, without limitation, a rental of farmland or commercial land which is leased on a net basis where the lessee is responsible for property taxes and all other expenses.
2. When using the capitalization of ground rents to derive the value of land:
(a) A county assessor must perform that method in accordance with the provisions of chapter 7 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177.
(b) If a lease:
(1) Has been recently negotiated or is still representative of current market rents, a county assessor may directly capitalize the net rent into an indicated land value; or
(2) Is outdated or no longer representative of current market rents, a county assessor must reject the lease or adjust the lease to current market conditions using verifiable market data.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1202 Land: Cost of development method. (NRS 360.090, 360.250, 361.227) When using the cost of development method, a county assessor must:
1. Perform that method in accordance with the provisions of chapter 7 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177.
2. Deduct the following costs from an estimate of the probable proceeds to be obtained from selling the land as developed parcels:
(a) The direct costs of site preparation;
(b) The costs for utility hookups;
(c) Any other direct and indirect costs of development; and
(d) A reasonable allowance for entrepreneurial profit.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1204 Land: Allocation method. (NRS 360.090, 360.250, 361.227) When using the allocation method, a county assessor must:
1. Estimate the logical and proportionate relationship of the value of land to the total value of real property by analyzing:
(a) Historical sales of vacant land and improved land in the same geographic market area as the subject property, without limitation as to the dates of those sales;
(b) Sales of vacant land and improved land in similar or competitive geographic market areas;
(c) Sales of vacant land compared to subsequent sales of the same or substantially similar parcels after improvements have been built; or
(d) Residual land values obtained using the abstraction method;
2. Apply the resulting ratio of land to total value to sales of comparable improved land to determine the portion of the sales prices attributable to land; and
3. Analyze the land values obtained in the same manner as sales of vacant land to establish comparative unit or base lot values.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1206 Land: Regression analysis. (NRS 360.090, 360.250, 361.227) When using regression analysis to derive the value of land, a county assessor must:
1. Base that analysis on the principle of contribution to value, pursuant to which the major characteristics of a site and any improvements must be analyzed to determine how much each component characteristic contributes to value.
2. Apply that analysis in accordance with the requirements of NAC 361.1216.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.121 Obtaining and maintaining sufficient data regarding characteristics of property. (NRS 360.090, 360.250) A county assessor shall:
1. Obtain, in accordance with the provisions of section 3 of the Standard on Mass Appraisal of Real Property, as adopted by reference in NAC 361.1177, a sufficient amount of data regarding the characteristics of property to determine the appropriate classification and valuation of property in the county.
2. Maintain the data obtained pursuant to subsection 1 on electronic media.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1212 Use of appropriate units of comparison. (NRS 360.090, 360.250, 361.227) When comparing sales of properties for the purpose of property valuation, a county assessor must use units of comparison which conform to the basis upon which those properties are analyzed and sold in the market.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1214 Consideration of influence of on-site and off-site enhancements. (NRS 360.090, 360.250, 361.227) Since on-site enhancements and off-site enhancements may affect the uses to which a parcel of land is being or may lawfully be put, a county assessor shall consider the influence of on-site enhancements and off-site enhancements when determining the value of the land.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1216 Development of mass appraisal model to explain or predict market value from real estate data. (NRS 360.090, 360.250, 361.227) When developing a mass appraisal model to explain or predict the market value of properties from real estate data, a county assessor must build and calibrate the model in accordance with the provisions of chapters 14 and 15 of Property Appraisal and Assessment Administration and the provisions of the Standard on Automated Valuation Models (AVMs), as adopted by reference in NAC 361.1177.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1218 Determination of whether sufficient sales of comparable properties are available. (NRS 360.090, 360.250, 361.227) For the purposes of carrying out the provisions of NAC 361.106 to 361.1315, inclusive, a county assessor must determine whether sufficient sales of comparable properties are available based upon:
1. The nature and complexity of the subject property to which the sales are being compared;
2. The degree of homogeneity of elements of comparison between the subject property and the comparable properties;
3. Market conditions; and
4. The reliability of the information regarding each sale from which a credible conclusion may be obtained.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.122 Valuation of improved land. (NRS 360.090, 360.250, 361.227)
1. If improved land is being put to a use that is:
(a) Consistent with the zoning of the land or with the general use of land in the surrounding area, the value of the improved land must be established by using comparable sales from a stratum with similar zoning and location in accordance with NAC 361.11795 or 361.118 or, if appropriate, NAC 361.119; or
(b) Not consistent with the zoning of the land or with the general use of land in the surrounding area, the value of the improved land must be established, in accordance with NAC 361.11795 or 361.118 or, if appropriate, NAC 361.119, by using comparable sales from a stratum that:
(1) Is most comparable to the improved land;
(2) Has the same or a similar use; and
(3) Is affected by the same or similar restrictions.
2. The area of land to be valued according to the use of the improvements is the area actually covered by each improvement, plus the surrounding area necessary to support the use of the improvement, as determined in accordance with any zoning restrictions and other legally enforceable restrictions on the current use of the land. Any excess or surplus land must be valued as if vacant in accordance with NAC 361.11795 or 361.118 or, if appropriate, NAC 361.119.
3. As used in this section:
(a) “Excess land” means land that is not currently needed to serve or support an existing improvement, and which has the potential to be sold separately from any land that is needed to serve or support an existing improvement.
(b) “Surplus land” means land that is not currently needed to serve or support an existing improvement, but which does not have an independent use separate from an existing improvement and does not have the potential to be sold separately from any land that is needed to serve or support an existing improvement.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 5-27-82]—(NAC A by R031-03, 8-4-2004; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1225 Accrued depreciation: Application; calculation. (NRS 360.090, 360.250, 361.227) A county assessor:
1. Shall apply accrued depreciation when determining:
(a) The value of improvements using the abstraction method pursuant to NAC 361.1194 or paragraph (d) of subsection 1 of NAC 361.1204; and
(b) The contributory value of improvements pursuant to paragraph (b) of subsection 5 of NRS 361.227.
2. Shall calculate accrued depreciation by:
(a) The market extraction method;
(b) The economic age-life method; or
(c) The observed condition breakdown method,
Ê in accordance with the provisions of chapter 8 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177. When calculating accrued depreciation by the economic age-life method, a county assessor may use the life-expectancy tables provided in the most recent version of the Residential Cost Handbook, Marshall Valuation Service, Residential Estimator software or Commercial Estimator software, as appropriate, adopted by reference in NAC 361.1177.
3. Shall not apply accrued depreciation when determining the taxable value of any improvements pursuant to subsection 1 of NRS 361.227.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.123 Contaminated property: Definitions. (NRS 360.090, 360.250, 361.227) As used in NAC 361.123 to 361.1236, inclusive, unless the context otherwise requires:
1. “Contaminated site” means:
(a) Land on which the release of a hazardous substance has been verified pursuant to NAC 361.1232; or
(b) An improvement for which permeation or incorporation into construction by a hazardous substance has been verified pursuant to NAC 361.1232,
Ê on or before the assessment date of the property.
2. “Cost-to-cure” means the present value of the remedial work to be performed to remove, contain or treat a hazardous substance on the property being valued. The term includes the cost of continued monitoring of the site after the remedial work has been completed if such monitoring is required.
3. “Hazardous substance” means a hazardous material or hazardous waste as those terms are defined in NRS 459.428 and 459.430, respectively.
(Added to NAC by Tax Comm’n, eff. 7-16-92; A by R031-03, 8-4-2004)
NAC 361.1232 Contaminated property: Burden of proof; documentation required. (NRS 360.090, 360.250, 361.227)
1. The burden of proving that property has been contaminated and documenting the proof of contamination to support a possible reduction of the assessed value of the property lies with the owner of the property.
2. To verify the release of a hazardous substance on land or the permeation or incorporation into the construction of an improvement by a hazardous substance, the owner of the property must:
(a) Submit reliable, objective information, such as an engineering study, environmental audit, laboratory report or historical record, which proves to the satisfaction of the assessor that a hazardous substance has been released on the land or has permeated or been incorporated into the construction of an improvement;
(b) Show that the release, permeation or incorporation was reported to an appropriate governmental agency such as the National Response Center or the State Department of Conservation and Natural Resources; and
(c) Provide sufficient data to the assessor to indicate the status of a proposed or ongoing cleanup plan.
3. To document the proof of contamination to support a possible reduction of the assessed value of the property, the owner of the property must submit to the assessor:
(a) A list of available comparable sales of similarly contaminated property, if any;
(b) Any pertinent information concerning the cleanup of the hazardous substance; and
(c) Where there is an existing business operating on the contaminated site, records of income and expense necessary to allow the assessor to estimate the value of the real property, as if uncontaminated, by the income approach.
(Added to NAC by Tax Comm’n, eff. 7-16-92)
NAC 361.1234 Contaminated property: Determination of full cash value. (NRS 360.090, 360.250, 361.227) In determining, pursuant to NRS 361.227, the full cash value of property that has been determined by the assessor to be a contaminated site:
1. The sales comparison approach may be used by comparing verified sales of similarly contaminated sites;
2. Where applicable, the income approach may be used by utilizing rent, vacancy and expense data derived from a survey of similarly contaminated sites with similarly used improvements; or
3. Where no sales or rental market exists for similarly contaminated properties:
(a) The value of the property for a specific use, or a specific user, reflecting the extent to which the property contributes to the utility or profitability of the enterprise of which it is a part may be determined by using the income approach, except that the value so determined must not exceed the full cash value of the property; or
(b) The present worth of the contaminated site may be determined by:
(1) Discounting the present worth of the property if it was contaminated by an off-site source or the cost-to-cure is not being borne by the current owner, or both, on the basis of the length of the delay caused by the contamination until the property can be developed to its highest and best use, readily sold or financed on the open market; or
(2) Using the present cash equivalency which represents the future reversionary value of the contaminated site after it is cleaned up to an extent that it is usable or developable to its highest and best use less the present worth of the yearly costs-to-cure if the current owner is incurring the remedial costs and an accurate forecast of the year-to-year costs to be incurred and the estimated date of the completion of the cleanup are available.
(Added to NAC by Tax Comm’n, eff. 7-16-92; A by R031-03, 8-4-2004)
NAC 361.1236 Contaminated property: Annual review. (NRS 360.090, 360.250, 361.227) The assessor shall review annually the assessment of any property which has been valued as a contaminated site pursuant to NAC 361.123, 361.1232 and 361.1234 to ensure that the remedial work, if any, is being performed as scheduled and to verify the actual yearly cost-to-cure.
(Added to NAC by Tax Comm’n, eff. 7-16-92)
NAC 361.124 Determination of actual age of improvement or newly constructed addition to improvement. (NRS 360.090, 360.250, 361.227, 361.229) In determining the actual age of:
1. An improvement or newly constructed addition to an existing improvement, the county assessor shall use the actual year of construction, if it is available, or else an estimated year of construction.
2. An improvement that has been constructed over a period of years, the county assessor shall use the weighted average age of the improvement.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC A 10-10-83; R031-03, 8-4-2004)
NAC 361.125 Improvement: Initial taxable value. (NRS 360.090, 360.250, 361.227)
1. In determining the initial taxable value of an improvement, the rate of depreciation is set forth in NRS 361.227.
2. If obsolescence, deterioration or wear and tear causes the taxable value calculated pursuant to subsection 1 to exceed the full cash value of the improvements, the additional depreciation and obsolescence may be calculated separately.
(Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)
NAC 361.127 Improvement: Replacement. (NRS 360.090, 360.250, 361.227, 361.229)
1. If the use or quality of an existing improvement is changed by a replacement, the county assessor shall revalue the improvement according to the new use or quality as of the time the replacement occurs.
2. Each county assessor who determines the percentage of the replacement made to an improvement:
(a) May use the “Percentage Breakdown of Base Cost” published in the version of the Marshall Valuation Service adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately preceding the lien date for the current year.
(b) Must consider the total replacements made to an improvement which have been accumulated since its construction or the last computation of replacement if one has been made.
3. As used in this section, the term “replacement” includes items of remodeling or renovation which extend the useful life of an improvement, other than those items excluded by the provisions of NRS 361.229.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A 1-18-85; 5-16-86; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.128 Improvement: Calculation of cost of replacement. (NRS 360.090, 360.250, 361.227, 361.229)
1. The cost of replacement of an improvement must be calculated:
(a) Without including any costs attributable to land enhancements; and
(b) Except as otherwise provided in subsections 2, 3 and 4, using:
(1) The standards and modifiers of local costs published in the version of the Residential Cost Handbook, Marshall Valuation Service, Residential Estimator software or Commercial Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately preceding the lien date for the current year; or
(2) With the prior approval of the Executive Director, other computer programs for determining cost which are based on costs published by Marshall & Swift.
2. Except as otherwise provided in subsections 3 and 4, the cost of replacement of a farm building, a shed or another rustic structure must be calculated using the manual of rural building costs adopted by the Commission if the farm building, shed or other rustic structure:
(a) Does not conform to any applicable building code adopted by a local governmental entity; or
(b) Is constructed by a person who does not regularly perform construction work and does not earn a substantial portion of his or her income as a licensed contractor, unless the person acts only as a general contractor and the actual work is performed by a person who regularly performs construction work and earns a substantial portion of his or her income as a licensed contractor.
3. Except as otherwise provided in subsection 4, the cost of replacement of a farm building, a shed or another rustic structure constructed by a person who regularly performs construction work and earns a substantial portion of his or her income as a licensed contractor must be calculated using:
(a) The standards and modifiers of local costs published in the version of the Residential Cost Handbook, Marshall Valuation Service, Residential Estimator software or Commercial Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately preceding the lien date for the current year; or
(b) The manual of rural building costs adopted by the Commission, except that the costs therein must be adjusted upward by 33 percent.
4. If no publication or manual required to be used pursuant to the provisions of this section applies to improvements of a particular occupancy or construction type, the county assessor may apply to the Executive Director for permission to use alternative recognized cost manuals, cost determinations or subscription services. If the Executive Director finds that no publication or manual required to be used pursuant to the provisions of this section applies to such improvements and that the alternative recognized cost manuals, cost determinations or subscription services are suitable, the Executive Director shall, within 30 days after receiving an application pursuant to this subsection, approve the use of the alternative recognized cost manuals, cost determinations or subscription services and notify each county assessor of that approval. The Executive Director shall submit to the Commission annually a list of the alternative recognized cost manuals, cost determinations and subscription services that the Executive Director has approved for use.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC A 10-10-83; 7-23-84; 1-18-85; 5-16-86; R031-03, 8-4-2004; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.1285 Common-interest communities. (NRS 360.090, 360.250, 361.227, 361.233)
1. A county assessor shall determine the taxable value of any land and improvements which comprise the community units and common elements of a common-interest community as provided in NAC 361.106 to 361.1315, inclusive.
2. When determining the taxable value of a community unit, a county assessor must, in addition to any other adjustments, adjust the sales prices of, or the base lot or comparative unit values derived from, properties which are comparable to the community unit as necessary, based upon verifiable market data, to reflect the unique physical characteristics of the common-interest community and the characteristics of ownership of the community unit, including, without limitation:
(a) The relative location of the community unit within the common-interest community, including, without limitation, the floor level;
(b) The phase of development of the common-interest community within which the community unit is located; and
(c) The nature of and access to the common elements of the common-interest community, including, without limitation, any parking facilities and open-space areas.
3. As used in this section, the words and terms defined in NRS 361.233 have the meanings ascribed to them in that section.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.129 Appraisal of parcel as part of qualified subdivision. (NRS 360.090, 360.250, 361.227)
1. A parcel must be appraised as provided by paragraph (b) of subsection 2 of NRS 361.227 and NAC 361.1295 if:
(a) It is one of a group of 10 or more contiguous parcels held under common ownership;
(b) A final map, a series of final maps or one or more subdivision maps covering the area containing the parcel has been presented to the county recorder for filing in the manner provided by NRS 278.360 to 278.460, inclusive, or the parcel is assessable property in an improvement district created pursuant to chapter 271 of NRS;
(c) The owner of the parcel provides the county assessor with whatever information the assessor deems necessary to determine the taxable value of the parcel; and
(d) The county assessor determines that the group of parcels affected has an expected absorption period of more than 1 year.
2. For the purposes of this section:
(a) The owner of a parcel is the person or entity shown as such in the records of the county recorder.
(b) A parcel is contiguous with other parcels held under common ownership even if it is separated from those parcels:
(1) By an easement, right-of-way, street, highway or other obstruction; or
(2) By one or more parcels held by third persons, if the parcels so held are in the same phase or section of a development.
(c) A parcel is not contiguous with other parcels held under common ownership, though they share a common boundary, if they are in different phases or sections of a development.
(Added to NAC by Tax Comm’n, eff. 11-14-88; A 10-27-93; R031-03, 8-4-2004)
NAC 361.1295 Taxable value of land within qualified subdivision. (NRS 360.090, 360.250, 361.227)
1. In determining the taxable value of land within a qualified subdivision, the county assessor shall use, as he or she deems appropriate based upon the available information concerning the subdivision:
(a) The full cash value of the subdivision as vacant land, plus all actual costs of site preparation, including on-site enhancements and off-site enhancements;
(b) The selling price of any comparable subdivision or group of parcels, adjusting that price as appropriate to reflect differences between the land sold and the land being appraised; or
(c) The estimated retail selling price of all parcels in the subdivision which are not sold, rented or occupied, reduced by the percentage specified for the expected absorption period of the parcels:
|
Expected Absorption Period |
Percentage of Reduction |
|
(Years) |
|
|
|
|
|
1 - 3.................................... |
20 |
|
4 - 6.................................... |
30 |
|
7 - 9.................................... |
40 |
|
10 or more.......................... |
50 |
2. The taxable value determined as provided in subsection 1 must be allocated to each parcel in the subdivision which is not sold, rented or occupied according to the size and other characteristics of that parcel.
3. The taxable value of any improvements made within a qualified subdivision must be determined as provided by NRS 361.227.
(Added to NAC by Tax Comm’n, eff. 11-14-88; A by R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.130 Mobile or manufactured home. (NRS 360.090, 360.250, 361.227, 361.2445, 361.325)
1. The taxable value of a mobile home or manufactured home which constitutes real property is the cost of replacement of the mobile home or manufactured home less depreciation and obsolescence.
2. In determining the taxable value of a mobile home or manufactured home which constitutes personal property, each county assessor shall, if the mobile home or manufactured home was sold as new:
(a) Before July 1, 1982, value it at its retail selling price when sold to the original owner less depreciation at 5 percent per year, to a maximum depreciated value of 20 percent of its original retail selling price.
(b) On or after July 1, 1982, value it at replacement cost, when new, less depreciation. Replacement cost when new is the retail selling price to the original owner adjusted by factors reflected in the annual Personal Property Manual.
Ê Depreciation must be calculated pursuant to the schedule located in the annual Personal Property Manual. Additional depreciation and obsolescence may be calculated separately.
3. The retail selling price of a mobile home or manufactured home includes all charges for transportation, installation, accessories, profit and overhead.
4. If the owner of a mobile home or manufactured home which has been converted to real property wishes to convert the mobile home or manufactured home back to personal property, the county assessor shall provide the owner with a form for an affidavit of conversion which has been approved by the Commission and which must be recorded in the county recorder’s office pursuant to NRS 361.2445 before the mobile home or manufactured home may be removed from the tax rolls. The affidavit of conversion may include information concerning the cost of acquisition of the mobile home or manufactured home. All signatures required pursuant to NRS 361.2445 to effectuate the conversion must be notarized.
5. The county assessor shall value the mobile home or manufactured home as personal property upon satisfaction of all the requirements set forth in NRS 361.2445 if the mobile home or manufactured home remains within the jurisdiction of the county assessor.
6. If a mobile home or manufactured home which has been converted to real property is completely destroyed and removed from real property, the county assessor shall remove the mobile home or manufactured home from the tax roll.
[Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC A 10-10-83; 6-29-84; 5-16-86; R031-03, 8-4-2004; R166-07, 6-17-2008)
NAC 361.1305 Billboards. (NRS 360.090, 360.250, 361.227)
1. The taxable value of a billboard is the cost of replacement of the billboard less depreciation and obsolescence.
2. The cost of replacement of a billboard must be computed by multiplying the cost of acquisition to the current owner by the appropriate factor located in the annual Personal Property Manual. The factor that corresponds to the year the billboard was acquired must be used. Additional depreciation and obsolescence may be calculated separately.
(Added to NAC by Tax Comm’n, eff. 8-2-90; A by R031-03, 8-4-2004)
NAC 361.131 Taxable value exceeding full cash value. (NRS 360.090, 360.250, 361.227) If the initially determined taxable value for any real property is found to exceed the full cash value of the property, the person determining taxable value shall examine the taxable value determined for the land, and if the land is properly valued, he or she shall appropriately reduce the taxable values determined for the improvements and, if appropriate, the value of the land and any pertinent personal property.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A by R031-03, 8-4-2004; R166-07, 6-17-2008)
NAC 361.1315 Adjustment in apportionment for school district. (NRS 360.090, 360.250, 387.1243)
1. To determine if a school district is eligible to receive an adjustment in apportionment pursuant to subsection 2 of NRS 387.1243, each county assessor shall, on or before March 15 of each year, submit a report to the Department on a form provided by the Department. The report must include the:
(a) Value of all possessory interest of property in the county that is subject to taxation pursuant to NRS 361.157 and 361.159;
(b) Value of such property for the current fiscal year;
(c) Amount of taxes that are due on the property; and
(d) Amount of taxes that have been paid for the current fiscal year.
Ê A copy of the report must be provided to the county treasurer.
2. After receipt of the report required by subsection 1, the Department will verify, in cooperation with the county treasurer, the amount of property taxes paid and the amount of anticipated shortfall in property taxes on any leasehold interest, possessory interest, beneficial interest or beneficial use on property that is owned by the Federal Government and subject to taxation pursuant to NRS 361.157 and 361.159. On or before April 15 of the year in which the taxes are due, the Department will provide certification of the amount of such anticipated shortfall to the Department of Education.
3. If the delinquent taxes are paid after the report required by subsection 1 is made, the county treasurer shall report the date and amount of payment to the Department within 10 days after the payment is made. The Department will report the amount of the payment to the Department of Education to facilitate repayment by the school district in accordance with subsection 2 of NRS 387.1243.
(Added to NAC by Tax Comm’n by R013-98, eff. 11-20-98)
Real Property Within Common-Interest Community
NAC 361.133 Definitions. (NRS 360.090, 360.250, 361.233) As used in NAC 361.133 to 361.1336, inclusive, unless the context otherwise requires, the words and terms defined in NRS 361.233 have the meanings ascribed to them in that section.
(Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)
NAC 361.1332 Applicability. (NRS 360.090, 360.250, 361.233) The provisions of NAC 361.133 to 361.1336, inclusive, apply to the assessment and valuation of the real property within a common-interest community.
(Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)
NAC 361.1334 Valuation of and assessment of tax on community units and common elements. (NRS 360.090, 360.250, 361.233)
1. A county assessor shall:
(a) Determine the taxable value of each community unit of a common-interest community separately and assess the tax thereon to the current owner of the community unit; and
(b) Determine the taxable value of the common elements of a common-interest community separately and assess the tax thereon to the current owners of the community units of the common-interest community as provided in NAC 361.1336.
2. If a parcel includes both a community unit and any portion of the common elements of a common-interest community, a county assessor shall:
(a) Determine the taxable value of any improvements and land that comprise that community unit separately and assess the tax thereon to the current owner of the community unit; and
(b) Determine the taxable value of any improvements and land that comprise that portion of the common elements of the common-interest community and assess the tax thereon to the current owners of the community units of the common-interest community as provided in NAC 361.1336.
3. For the purposes of:
(a) Paragraph (a) of subsection 1, the taxable value of the common elements of a common-interest community must not enhance or be reflected in the taxable value of a community unit of that common-interest community; and
(b) Paragraph (a) of subsection 2, the taxable value of any improvements and land that comprise the common elements of a common-interest community must not enhance or be reflected in the taxable value of any improvements and land that comprise a community unit of that common-interest community.
(Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)
NAC 361.1336 Allocation of taxable value of common elements to community units. (NRS 360.090, 360.250, 361.233)
1. Except as otherwise provided in subsection 3 of NAC 361.1334, a county assessor shall include in the valuation of each community unit of a common interest community an amount calculated by multiplying the taxable value of all the common elements of the common-interest community by a fraction, the numerator of which is 1 and the denominator of which is:
(a) Except as otherwise provided in paragraph (b), the total number of community units in the common-interest community; or
(b) If the common-interest community is still under development, the total number of community units planned to be constructed in the common-interest community,
Ê regardless of whether each community unit has yet been identified by a separate assessor’s parcel number.
2. If a county assessor is unable to determine from public records the information necessary to carry out the provisions of subsection 1, the county assessor shall submit to the owners of the common elements of the common-interest community a written request for such information as the county assessor determines to be necessary to carry out those provisions. Such information may include, without limitation:
(a) The total number of community units constructed or planned to be constructed in the common-interest community;
(b) The assessor’s parcel number or other identifying information for each community unit in the common-interest community; and
(c) The assessor’s parcel number or other identifying information for each portion of the common elements of the common-interest community.
3. If the owners of the common elements of a common-interest community fail to provide the information requested pursuant to subsection 2 within 60 days after receiving that request, the county assessor shall allocate the taxable value of the common elements of the common-interest community to the community units of the common-interest community based on any information available to the county assessor.
4. The Department shall provide a standard form for requesting and providing information pursuant to this section.
(Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)
Determination of Taxable Value of Personal Property
NAC 361.1345 Definitions. (NRS 360.090, 360.250, 361.227) As used in NAC 361.1345 to 361.139, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.1351, 361.1355 and 361.1361 have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.1351 “Acquisition cost” and “original cost” defined. (NRS 360.090, 360.250, 361.227) “Acquisition cost” or “original cost” means the actual cost of property to its present owner, including, without limitation, the costs of transportation and the costs of installation.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.1355 “Costs of installation” defined. (NRS 360.090, 360.250, 361.227) “Costs of installation” means the costs of direct labor, direct overhead and the capitalized expense of interest or imputed charges for interest which are necessary to make the property operational.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.1361 “Personal Property Manual” defined. (NRS 360.090, 360.250, 361.227) “Personal Property Manual” means a manual for the valuation of personal property that is published by the Department annually pursuant to NAC 361.1365.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.1365 Personal Property Manual: Publication; contents; approval; use. (NRS 360.090, 360.250, 361.227)
1. The Department will annually publish a Personal Property Manual which describes the methods and standards that must be used for the valuation of personal property. The manual must include, without limitation, annually updated:
(a) Cost-index factors that must be used in the conversion of acquisition cost into an estimate of replacement cost new;
(b) Expected-life schedules that indicate the category of expected life for each type of property or type of industry in which the property is used; and
(c) Percent-good tables which indicate the rate of depreciation that must be applied.
2. The Personal Property Manual must be approved by the Commission before publication. The Department, at least 1 month before presenting the manual to the Commission for approval, must disclose all proposed modifications to the manual and hold a public workshop on the modifications.
3. Each county assessor shall use the Personal Property Manual in determining the taxable value of personal property.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.1371 Procedure for determination of taxable value. (NRS 360.090, 360.250, 361.227)
1. The taxable value of personal property must be determined by adjusting the acquisition cost of the property by a cost-index factor and reducing the adjusted acquisition cost by an estimate of applicable depreciation. The taxable value so determined shall be deemed to be the indicator of value of replacement cost new less depreciation.
2. In determining taxable value, a county assessor shall use the schedules in the Personal Property Manual that show the cost-index factors, the rates of depreciation and the percent good by year. The assessor shall use the schedules by:
(a) Selecting the appropriate expected useful life of the personal property; and
(b) Selecting the appropriate cost-index factor, based on the year of acquisition of the property, and applying it to the acquisition cost of the property.
Ê The result shall be deemed to be the replacement cost new of the property.
3. The assessor shall select the method of applying depreciation to the personal property by either:
(a) Multiplying the adjusted acquisition cost of the property by the rate of depreciation and subtracting the result from the adjusted acquisition cost; or
(b) Multiplying the adjusted acquisition cost of the property by the percent-good factor.
Ê The result from either approach shall be deemed to be the taxable value of the property.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.1375 Determination of expected life, cost-index factors and depreciation. (NRS 360.090, 360.250, 361.227)
1. Personal property must be categorized by the specific type of property that it is or by the type of industry in which it is used. Each category must be assigned to a schedule of expected life which is based on commonly available sources of information, including, without limitation, the life expectancy guidelines published by the Marshall and Swift Valuation Service and any other sources published in the Personal Property Manual.
2. The cost-index factors published in the Personal Property Manual must be determined by calculating the average change in costs over time. The Department shall identify the sources used to calculate the average change.
3. For purposes of calculating the amount of applicable depreciation, personal property must be assigned to one of the following expected lives:
(a) Three-year life;
(b) Five-year life;
(c) Seven-year life;
(d) Ten-year life;
(e) Fifteen-year life;
(f) Twenty-year life; or
(g) Thirty-year life.
4. Depreciation must be calculated over the expected life of the personal property by using the declining balance method, except that tables which provide a method other than the declining balance method for calculating depreciation may be used if the tables have been approved by the Commission and included in the Personal Property Manual.
5. For purposes of calculating the rate of depreciation, a residual amount of 5 percent must be used. Percent-good tables using a residual amount other than 5 percent may be adopted by the Commission if the Department has conducted a market study or has otherwise obtained information which indicates that a different residual amount is appropriate for the category in which the personal property is placed pursuant to subsection 1.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)
NAC 361.138 Reported acquisition cost for leased equipment. (NRS 360.090, 360.250, 361.227) For leased equipment, the reported acquisition cost is the cost which the user of the property would incur if the equipment were purchased, less any discount customarily allowed by a seller.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A by R034-03, 12-4-2003)
NAC 361.139 Personal property acquired with real property for lump sum; use of other valuation techniques. (NRS 360.090, 360.250, 361.227)
1. In determining the taxable value of personal property which was acquired with real property for a lump sum, the assessor may refer to appropriate guides which list the cost of equipment to determine the value of the personal property in relation to the value of the real property. In addition, the assessor may estimate the age of the equipment by inspecting it or discussing the approximate value of the equipment with manufacturers, dealers or other persons in the business who have knowledge of the value of the equipment. The serial number, if it exists, may enable a manufacturer to determine the date of manufacture and the original cost.
2. If sufficient data is not otherwise available to establish acquisition cost, or if the assessor determines that a reported acquisition cost is not equal to the fair market value of the property at the time of acquisition plus any costs of transportation and costs of installation, the assessor may use any nationally recognized valuation technique to determine the acquisition cost, including, without limitation:
(a) Establishing the current cost of replacement of the property with new property by reference to current manufacturing costs. If the current cost of replacement is known, the assessor shall apply depreciation to that cost to determine the taxable value.
(b) Using a guide which lists the cost or a procedure recognized by businesses which use such equipment to determine the taxable value. Before such a guide or procedure may be used, an assessor must receive approval from the Executive Director.
(c) Using information based on current market data.
3. Upon request, the Division of Local Government Services of the Department will provide information on various guides which may be used to determine original cost.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A 6-29-84; R034-03, 12-4-2003; R068-12, 9-14-2012)
Aircraft
NAC 361.1401 Definitions. (NRS 360.090, 360.250, 361.260) As used in NAC 361.1401 to 361.1438, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.1402 to 361.1411, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1402 “Aircraft” defined. (NRS 360.090, 360.250, 361.260)
1. “Aircraft” means any contrivance used or designed for the navigation of or for flight in the air.
2. The term includes, without limitation:
(a) General aircraft;
(b) Commercial aircraft;
(c) Unmanned aircraft systems and small unmanned aircraft systems used in conjunction with a business and weighing more than 0.55 pounds but less than 55 pounds, which are commonly known as drones, other than a small unmanned aircraft system that qualifies as recreational equipment not subject to taxation pursuant to paragraph (a) of subsection 4 of NRS 361.069;
(d) Kit aircraft;
(e) Light-sport aircraft;
(f) Ultra-light aircraft;
(g) Hang gliders; and
(h) Hot air balloons.
3. The term does not include:
(a) A parachute or other similar emergency safety device; and
(b) A rocket or missile.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1403 “Commercial aircraft” defined. (NRS 360.090, 360.250, 361.260) “Commercial aircraft” means a civilian aircraft operated for compensation or hire and used to transport persons or property including, without limitation, an aircraft used in an on-demand operation, scheduled operation or supplemental operation, as those terms are defined in 14 C.F.R. § 110.2. For the purposes of this section:
1. An aircraft is not operated for compensation or hire if the use of the aircraft to transport persons or property is merely incidental to the business of the operator of the aircraft.
2. An aircraft is operated for compensation or hire if the use of the aircraft to transport persons or property is a major enterprise for profit.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1404 “Domicile” defined. (NRS 360.090, 360.250, 361.260) “Domicile” means:
1. The permanent, principal home to which a person returns or intends to return after an absence; or
2. The place where a business has its headquarters or principal place of business.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1405 “General aircraft” defined. (NRS 360.090, 360.250, 361.260) “General aircraft” means civilian aircraft that is:
1. Registered with, and has an airworthiness certificate issued by, the Federal Aviation Administration; and
2. Operated for a purpose other than the commercial transportation of passengers or property.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1406 “Kit aircraft” defined. (NRS 360.090, 360.250, 361.260) “Kit aircraft” means an aircraft:
1. Assembled by a person from a kit that is manufactured by a person who holds a production certification issued by the Federal Aviation Administration; and
2. Issued a special airworthiness certificate by the Federal Aviation Administration.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1407 “Light-sport aircraft” defined. (NRS 360.090, 360.250, 361.260) “Light-sport aircraft” has the meaning ascribed to it in 14 C.F.R. § 1.1.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1408 “Small unmanned aircraft” defined. (NRS 360.090, 360.250, 361.260) “Small unmanned aircraft” means an unmanned aircraft weighing less than 55 pounds on takeoff, including all items on board or otherwise attached to the aircraft.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1409 “Taxable situs” defined. (NRS 360.090, 360.250, 361.260) “Taxable situs” means contacts sufficient to confer on this State the power to tax an aircraft under the United States Constitution.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1411 “Unmanned aircraft system” defined. (NRS 360.090, 360.250, 361.260) “Unmanned aircraft system” means an unmanned aircraft and its associated elements, including, without limitation, communication links and the components that control the unmanned aircraft, that are required for the safe and efficient operation of the unmanned aircraft in the national airspace system.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1421 Applicability. (NRS 360.090, 360.250, 361.260)
1. Except as otherwise provided in subsection 2, the provisions of NAC 361.1401 to 361.1438, inclusive, do not apply to property of an interstate or intercounty nature used directly in the operation of a scheduled or unscheduled air transport company that is subject to valuation by the Nevada Tax Commission pursuant to NRS 361.320.
2. The provisions of NAC 361.1401 to 361.1438, inclusive, apply to a fixed-wing aircraft with a weight of less than 12,500 pounds used by an air transport company to provide transportation services if, pursuant to subsection 10 of NRS 361.320, the air transport company elects to have the property of the company assessed by a county assessor.
3. As used in this section, “scheduled or unscheduled air transport company” means a commercial operator:
(a) Engaged in the common carriage of persons or property for compensation or hire;
(b) That holds a certificate from the Federal Aviation Administration authorizing the commercial operator to operate under part 121, 125 or 135 of title 14 of the Code of Federal Regulations;
(c) That uses property of an interstate or intercounty nature directly in its operations; and
(d) The property of which is subject to valuation by the Nevada Tax Commission pursuant to NRS 361.320.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1424 Exemption for aircraft qualifying as business inventory. (NRS 360.090, 360.250, 361.068)
1. A person claiming that an aircraft is personal property held for sale by a merchant or manufacturer and is exempt from taxation pursuant to paragraph (a) or (b) of subsection 1 of NRS 361.068, as applicable, has the burden of establishing to the satisfaction of the county assessor that the aircraft qualifies for the claimed exemption.
2. A claim that an aircraft is exempt from taxation pursuant to paragraph (a) or (b) of subsection 1 of NRS 361.068 must be accompanied by the following documents as requested by the county assessor:
(a) A valid dealer’s license issued by the Federal Aviation Administration to the owner of the aircraft;
(b) A valid seller’s permit issued to the owner of aircraft by the Department pursuant to NRS 360.5973;
(c) A valid business license issued by a local government in this State;
(d) Evidence of the location of the aircraft on an airport or airfield in this State;
(e) A flight log; or
(f) Listing or consignment agreements relating to the aircraft.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1426 Contents of written statement to county assessor to determine taxable value. (NRS 360.090, 360.250, 361.265) The written statement required by NRS 361.265 for an aircraft must include information concerning the aircraft that is sufficient to enable the county assessor to determine the taxable value of the aircraft. Such information may include, without limitation:
1. The serial number, make, model and year of manufacture of the aircraft; and
2. Information concerning the engine of the aircraft and the maintenance of the aircraft, including, without limitation, the total flight hours logged for the aircraft after the last major overhaul of the engine of the aircraft.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1428 Determination whether aircraft has taxable situs in this State. (NRS 360.090, 360.250, 361.260)
1. Except as otherwise provided in NAC 361.143 and 361.1432, an aircraft has taxable situs in this State if the aircraft has a physical presence in this State that is of a permanent nature sufficient to support a determination that the aircraft has been conferred or afforded opportunities, benefits or protections by this State.
2. The determination of whether an aircraft has taxable situs in this State is a question of fact. In making such a determination, a county assessor must consider the quantity and nature of the physical presence of the aircraft in this State and the intent of the person owning or operating the aircraft in causing the aircraft to have a physical presence in this State.
3. The circumstances under which an aircraft has taxable situs in this State, include, without limitation, the following circumstances:
(a) The aircraft is used habitually in this State, whether on a regular or irregular basis.
(b) The aircraft is habitually kept or maintained in this State or habitually stored in a hangar in this State when not in use.
(c) Property taxes have been paid with respect to the aircraft in this State.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.143 Certain aircraft owned by certain servicemembers or spouses do not acquire taxable situs in this State. (NRS 360.090, 360.250, 361.260)
1. Notwithstanding the provisions of NAC 361.1428, an aircraft owned by a servicemember who is stationed in this State in compliance with military orders or the spouse of such a servicemember shall be deemed not to be located or present, or to have taxable situs, in this State unless the domicile or residence of the servicemember or his or her spouse is in this State or the aircraft is used in a trade or business.
2. A county assessor may request that a servicemember or his or her spouse provide documentation sufficient to demonstrate that an aircraft owned by the servicemember or his or her spouse is not subject to property taxes in this State pursuant to subsection 1.
3. As used in this section, “servicemember” means a person who is a member of:
(a) The active or reserve components of the uniformed services of the United States, including, without limitation, the Army, Navy, Air Force, Marine Corps, Space Force or Coast Guard of the United States who is on active duty; or
(b) The Merchant Marine, the Commissioned Corps of the Public Health Service or the Commissioned Corps of the National Oceanic and Atmospheric Administration of the United States.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1432 Certain aircraft owned by certain foreign air carriers do not acquire taxable situs in this State. (NRS 360.090, 360.250, 361.260)
1. Notwithstanding the provisions of NAC 361.1428, an aircraft that is owned by a foreign air carrier, based and registered outside of the United States and used exclusively in international commerce shall be deemed not to have taxable situs in this State.
2. As used in this section, “foreign air carrier” means any person, other than a citizen of the United States, who undertakes directly, by lease or other arrangement, to engage in air transportation.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1434 Claim by owner that taxable value of aircraft is subject to allocation if aircraft has taxable situs in this State and another state or country. (NRS 360.090, 360.250, 361.260)
1. The owner of an aircraft with taxable situs in this State may claim that the taxable value of the aircraft is subject to allocation pursuant to subsection 2 of NAC 361.1436 if the aircraft has taxable situs in this State and in another state or country. The owner of the aircraft has the burden of proving that the aircraft has taxable situs in another state or country.
2. To make a claim pursuant to subsection 1, the owner of the aircraft must submit to the county assessor sufficient information to determine whether the aircraft has taxable situs in this State and in another state or country, including, without limitation:
(a) Records kept in the normal course of business that indicate the locations to which the aircraft has traveled, the length of time the aircraft remained at those locations and the purpose of the travel to those locations, including, without limitation, mileage, flight or maintenance logs or tie-down receipts;
(b) Actual tax bills or notices of appraisal or assessment from another jurisdiction; or
(c) Reports filed with state or federal governmental agencies that indicate the locations to which the aircraft has traveled, the length of time the aircraft remained at those locations and the purpose of the travel to those locations.
3. To determine the taxable situs of an aircraft, a county assessor may request documentation indicating the domicile of the owner of the aircraft if such information is relevant to determining the nature of the physical presence of the aircraft in this State and the intent of the owner in causing the aircraft to have a physical presence in this State. Such documentation may include, without limitation, the owner’s:
(a) Utility bills;
(b) Vehicle registration;
(c) Driver’s license or identification card;
(d) Income tax returns; or
(e) Records of property ownership.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1436 Assessment of aircraft with taxable situs in this State; formula for allocating if aircraft has taxable situs in this State and another state or country. (NRS 360.090, 360.250, 361.260)
1. If an aircraft has taxable situs in this State, the aircraft must be assessed by the county assessor of the county in which the aircraft is present for the majority of the total amount of the aircraft’s ground time in this State during the fiscal year for which the aircraft is being assessed.
2. If an aircraft has taxable situs in this State and in another state or country, the taxable value of the aircraft must be allocated to this State in an amount that fairly reflects the use of the aircraft in this State. The portion of the taxable value of the aircraft allocated to this State must equal the amount determined by multiplying:
(a) The taxable value of the aircraft; and
(b) The fraction obtained by dividing the number of overnights spent by the aircraft in this State by the total number of days in the immediately preceding fiscal year.
3. Before allocating the taxable value of an aircraft to this State pursuant to subsection 2, the county assessor must determine the taxable value of the aircraft pursuant to NAC 361.1345 to 361.139, inclusive.
4. The entire amount of the taxable value of an aircraft that is allocated to this State must be apportioned to the county in this State in which the aircraft is present for the majority of total amount of the aircraft’s ground time in this State during the fiscal year for which the aircraft is being assessed. The aircraft must be assessed by that county for a full fiscal year and, if the aircraft is removed from that county before the end of a fiscal year, the taxes imposed on that aircraft may not be prorated.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1437 Period for which aircraft must be included on assessment roll of county. (NRS 360.090, 360.250, 360.260) An aircraft that has taxable situs in this State and is included on the assessment roll of a county in this State for a fiscal year must be included on the assessment role of that county for subsequent fiscal years unless the taxpayer provides:
1. Written notice to the county assessor stating that:
(a) The aircraft no longer has taxable situs in this State; or
(b) The aircraft was present in another county for the majority of the total amount of the aircraft’s ground time in this State during the preceding fiscal year; and
2. Such documentation as the county assessor deems sufficient to indicate the existence of a circumstance described in paragraph (a) or (b) of subsection 1.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
NAC 361.1438 Certain exclusions from partial abatement of property taxes. (NRS 360.090, 360.250, 361.4722) For the purposes of carrying out the provisions of NRS 361.4722, any increase in the assessed valuation of an aircraft from the immediately preceding year as a result of an increase in the taxable value of the aircraft allocated to this State pursuant to subsection 2 of NAC 361.1436 must be excluded from any partial abatement provided pursuant to NRS 361.4722.
(Added to NAC by Tax Comm’n by R001-20, eff. 1-21-2021)
Miscellaneous Requirements
NAC 361.144 Areas of appraisal for cycle of reappraisal. (NRS 360.090, 360.250, 361.260)
1. Each county assessor shall:
(a) Establish geographic boundaries for areas of appraisal or establish areas by other classifications within which all property must be reappraised at the same time; and
(b) Establish not later than July 1 of the year immediately preceding the assessment year, the standards of valuation, including data on comparable sales, to be used throughout the year’s cycle of reappraisal.
2. These areas of appraisal may be changed to alleviate problems created by growth or other circumstances if the county assessor shows good cause and receives the approval of the Commission.
[Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80; A 1-14-82]—(NAC A by R031-03, 8-4-2004)
NAC 361.146 Records of reappraisals. (NRS 360.090, 360.250, 361.260) Whenever property is reappraised, the county assessor shall indicate all the data necessary to determine the taxable value of the property, the date of the field inspection, if any, and the identity of the appraiser. The actual age and the depreciation of the existing improvements and any additions to those improvements must be clearly indicated.
[Tax Comm’n, Property Tax Reg. part No. 7, eff. 1-14-82]—(NAC A by R031-03, 8-4-2004)
NAC 361.150 Report of appraisals by county assessor. (NRS 360.090, 360.250, 361.260) Each county assessor shall file with the Department on or before April 1 of each year a report which includes:
1. A statement of the appraisals accomplished in the previous year beginning January 1 and ending December 15, including:
(a) The total number of parcels that were reappraised;
(b) The total number of parcels with newly constructed improvements to realty, not including additions to existing improvements and newly subdivided parcels that were appraised;
(c) The total number of all taxable parcels in the county; and
(d) The areas of the county that were reappraised.
2. A statement of what the county assessor proposes to appraise in the following year, including:
(a) An estimate of the percentage of all parcels in the county that the proposed reappraisals represent; and
(b) The areas of the county that the county assessor proposes to reappraise.
3. A list of the areas of appraisal, encompassing all property in the county, which were used in the prior 5-year cycle of reappraisal and a statement of the areas which were appraised in each year of that cycle.
[Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80; A 1-14-82]—(NAC A 10-10-83)
NAC 361.151 Statement of valuation of property sold. (NRS 360.090, 360.250, 361.260) On or before April 1 of each year, each county assessor shall furnish to the Department a statement of the valuation of real property which was sold in his or her county in the preceding calendar year. The statement must include:
1. The date of each sale;
2. The parcel number or a description of the real property sold;
3. The sales price; and
4. The method used to verify the sales price.
(Added to NAC by Tax Comm’n, eff. 4-24-84)
NAC 361.152 Assessment lists: Contents; distribution. (NRS 360.090, 360.250, 361.300)
1. The assessment list for a county must include:
(a) The parcel number of each property;
(b) The name of the owner of each property;
(c) The year of the last reappraisal of each property at which time the taxable value of the property was determined; and
(d) The assessed value of the land, improvements and personal property, separately stated.
2. The county assessor shall submit a copy of the assessment list to the Department immediately following publication or delivery to taxpayers pursuant to subsection 3 of NRS 361.300.
3. For the purposes of paragraph (a) of subsection 3 of NRS 361.300, the Commission will interpret the term “each taxpayer in the county” as used in that paragraph to mean each taxpayer who resides in the county. A county assessor who causes a copy of the assessment list to be delivered to each taxpayer who resides in the county shall cause a copy of the assessment list to be delivered to any other taxpayer who owns property in the county if that taxpayer requests a copy of the assessment list.
[Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80; A 1-14-82]—(NAC A by R031-03, 8-4-2004)
NAC 361.154 Assessment roll filed with Secretary of State Board of Equalization. (NRS 360.090, 360.250, 361.390)
1. The assessment roll filed with the Secretary of the State Board of Equalization must include:
(a) The parcel number of each property;
(b) The name of the owner of each property;
(c) A category of land use for each property, as prescribed by the Department pursuant to NAC 361.1178, designating the current actual or authorized use of the property;
(d) The year of the last physical reappraisal of each property at which time the taxable value of the property was determined; and
(e) The assessed value of the land, improvements and personal property, separately stated.
2. When feasible and appropriate, the entries on the assessment roll must be in order by parcel number, not alphabetically by the name of the owner.
[Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80; A 1-14-82]—(NAC A 10-10-83; R039-10, 8-13-2010, eff. 7-1-2012)
NAC 361.155 Billing of real property on unsecured roll. (NRS 360.090, 360.250, 361.480) Any billing sent to the owner of real property assessed upon the unsecured roll must include:
1. The total taxes due for the year;
2. The amount of the tax which is due as of the next date for payment if the tax is paid in quarterly installments; and
3. A statement advising the owner of such property that payment may be made in:
(a) One total payment; or
(b) One payment which includes the quarterly installments that are due and equal quarterly installments for the remaining quarters.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A 5-3-84)
ASSESSMENTS BY NEVADA TAX COMMISSION
General Provisions
NAC 361.200 Definitions. (NRS 360.090, 361.320) As used in NAC 361.200 to 361.508, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.202 to 361.406, inclusive, have the meanings ascribed to them in those sections.
(Supplied in codification; A by Tax Comm’n, 9-30-88)
NAC 361.202 “Accelerated amortization” defined. (NRS 360.090, 361.320) “Accelerated amortization” means the accruing of greater depreciation expense for income tax purposes in the early years of the property’s life and less in the later years.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.203 “Accelerated cost recovery system” defined. (NRS 360.090, 361.320) “Accelerated cost recovery system” means a tax accounting methodology whereby normalized accounting is used to reduce or defer taxes on property and income.
(Added to NAC by Tax Comm’n, eff. 9-30-88)
NAC 361.204 “Accelerated depreciation” defined. (NRS 360.090, 361.320) “Accelerated depreciation” means the accruing of greater depreciation expense in the early years of a property’s life and less in the later years. Two methods of accelerated depreciation are the:
1. Sum of the year’s digits method; and
2. Declining balance method.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.206 “Accrual accounting” defined. (NRS 360.090, 361.320) “Accrual accounting” means recording the revenues and expenses based on amounts due or owing during the report period whether received, paid or not.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.208 “Accrued depreciation” defined. (NRS 360.090, 361.320) “Accrued depreciation” means the amount of depreciation to date; when recorded as a dollar amount it may be deductible from the total plant value or investment to arrive at the rate base.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.210 “Advance payments for gas” defined. (NRS 360.090, 361.320) “Advance payments for gas” means cash payments made to producers to finance exploration for gas. If any gas is discovered, the company making the advance payment has the right to bid on or buy all or part of the discovered gas. Repayment of the advance is taken in the form of delivered gas.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.212 “Allocation to states” defined. (NRS 360.090, 361.320) “Allocation to states” means the process of assigning a portion of a unit value or system statistic to a state.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.214 “Allowance for funds used during construction” defined. (NRS 360.090, 361.320) “Allowance for funds used during construction” means the process of capitalizing interest expense on funds used during the construction period. As property does not generate earnings during construction, the capitalized interest expense represents imputed earnings. The capitalized interest becomes part of the total cost of the project.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.216 “Amortization” defined. (NRS 360.090, 361.320) “Amortization” means the orderly writing off of an investment by making periodic charges against current income or the orderly retirement of an obligation by making periodic payments to the creditor.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.218 “Annuity” defined. (NRS 360.090, 361.320) “Annuity” means a series of payments to be made at equal intervals, annual, monthly or other. The payments themselves do not have to be equal. An annuity whose payments are equal is known as a level annuity.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.220 “Antipollution controls” defined. (NRS 360.090, 361.320) “Antipollution controls” means regulations or standards set up under federal and state laws to correct abuses leading to the contamination of clean air and water supplies by smoke, smog, fumes, hazardous radiation and other emissions including those from nuclear or other electric generating plants.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.222 “Apportionment to intrastate jurisdiction” defined. (NRS 360.090, 361.320) “Apportionment to intrastate jurisdiction” means the process of assigning a portion of a state value or state statistic or company statistic to geographical areas, usually tax levying districts or codes within the State.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.224 “Assessment ratio” defined. (NRS 360.090, 361.320) “Assessment ratio” means the relationship of assessed value to market value or to some statutory value such as actual value or true cash value.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.226 “Band-of-investment” defined. (NRS 360.090, 361.320) “Band-of-investment” means a method used to compute a capitalization rate in the absence of market information. The simplest form of band-of-investment computation requires estimating the appropriate ratio of debt to equity, the interest cost of debt and, typically the most subjective element, the rate of return on equity capital. The weighted rates on debt and equity are added to obtain the band-of-investment rate.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.228 “Bond discount” defined. (NRS 360.090, 361.320) “Bond discount” means an amount in dollars subtracted from the face value of a bond because the market discount rate is greater than the coupon rate.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.230 “Bond premium” defined. (NRS 360.090, 361.320) “Bond premium” means an amount in dollars added to the face value of the bond because of issuing costs or a market discount rate less than the coupon rate.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.232 “Bond rating” defined. (NRS 360.090, 361.320) “Bond rating” means a classification assigned by financial reporting institutions reflecting relative standings as to risk. The classification may include consideration of management, revenue prospects, regulatory climate, operating costs and many other aspects of business operations.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.234 “Book depreciation” defined. (NRS 360.090, 361.320) “Book depreciation” means the total accruals recorded on the books of the owner of property summarizing the systematic and periodic expenses charged toward amortizing the investment of limited-life property over its expected life.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.236 “Book value,” “net book” defined. (NRS 360.090, 361.320) “Book value” or “net book” means the cost of a property as carried in the accounting records of the owner less the accrued depreciation reserve for that property.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.238 “Capital structure” defined. (NRS 360.090, 361.320) “Capital structure” means the manner in which an organization is financed, that is, the amount and kind of equity and debt that satisfies the need for money.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.240 “Capitalization process” defined. (NRS 360.090, 361.320) “Capitalization process” means the conversion of a stream of income having a certain duration into value by means of a capitalization rate that recognizes the degree of risk as between the property and the income it produces.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.242 “Capitalization rate” defined. (NRS 360.090, 361.320) “Capitalization rate” means a factor, used as a divisor, which converts an income stream into an indicated value. If the income stream is expected to be of limited duration, a recapture component may be included in the capitalization rate.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.244 “Cash accounting” defined. (NRS 360.090, 361.320) “Cash accounting” means recording revenues actually received and expenses actually paid during the report period. See NAC 361.206 for contra.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.246 “Cash equivalent” defined. (NRS 360.090, 361.320) “Cash equivalent” means the market value of a property expressed in terms of cash.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.248 “Cash flow,” “net cash flow” or “after-tax cash flow” defined. (NRS 360.090, 361.320) “Cash flow,” “net cash flow” or “after-tax cash flow” means the sum of depreciation (and depletion, if any) and net income after all expenses, all taxes and interest on debt. Conversely, it is gross income minus operating expenses, interest on debt, property taxes and income taxes.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.250 “Cash flow, before-tax” defined. (NRS 360.090, 361.320) “Cash flow, before-tax” means the cash flow plus income taxes. When applied to “cash flow,” the term “before-tax” refers only to income taxes.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.252 “Certificate of convenience and necessity” defined. (NRS 360.090, 361.320) “Certificate of convenience and necessity” means a grant of authority from a state or federal regulatory commission authorizing a company to render a public utility service, usually specifying the area and other conditions of service.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.254 “Common carrier” defined. (NRS 360.090, 361.320) “Common carrier” means a person, corporation or entity engaged in transporting persons, goods or messages for compensation over a regular route, on a certain schedule or at a published rate, all of which are subject usually to government regulation.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.256 “Compound interest and annuity tables” defined. (NRS 360.090, 361.320) “Compound interest and annuity tables” means the six sets of factors or coefficients that embrace the fundamentals of the mathematics of finance. The various factors are here called present worth of 1, present worth of 1 per annum, future worth of 1, future worth of 1 per annum, sinking fund and mortgage repayment. The first type of factor, present worth of 1, is derived from the formula:
1
n
___________________
(1 + r)
Where “r” is the discount (capitalization) rate and “n” is the number of periods. All other factors are derived from the mathematical manipulation of this formula. Other names are sometimes given to some of the factors such as “reversion” for present worth of 1, “Inwood” for the present worth of 1 per annum and many names for mortgage repayment.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.258 “Construction work in progress” defined. (NRS 360.090, 361.320) “Construction work in progress” means the total of the balances of work orders for plant, road and equipment including expenditures on research, development and demonstration projects for construction of facilities.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 12-20-79]
NAC 361.260 “Contribution in aid of construction” defined. (NRS 360.090, 361.320) “Contribution in aid of construction” means a plant which has been contributed to a utility by a prospective customer or which has been constructed by the utility and paid for by the prospective customer for which no reimbursement is required to be made by the utility to the prospective customer as a prerequisite to obtaining service.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 12-20-79]
NAC 361.262 “Debt” defined. (NRS 360.090, 361.320) “Debt” is money owed. In the usual case, borrowed money (debt) is considered to be a permanent part of the capital used in the business.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.264 “Deferred federal income taxes” defined. (NRS 360.090, 361.320) “Deferred federal income taxes” means the estimated income tax on the excess of net revenues, recognized for accounting purposes, over that reported for tax purposes.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.266 “Depreciation” defined. (NRS 360.090, 361.320) “Depreciation,” in an appraisal sense, means the loss in value of an item due to all causes. Sometimes it is meant to be physical deterioration, but in a strict sense it would include functional and economic obsolescence.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.268 “Discount rate” defined. (NRS 360.090, 361.320) “Discount rate” means the annual percentage rate used to select present worth factors. The discount rate is one form of capitalization rate. A discount rate can be derived in two ways:
1. By use of the band-of-investment method; or
2. From sales data using the discounted cash flow rate of return method.
Ê The discounted cash flow rate of return method consists of finding the annual rate at which future income must be discounted so that the total present worth equals the proposed investment in the sale price of a property. The present worth of a given year’s income automatically provides for recapture of capital. The difference between the income itself and its present worth provides for the return (yield) on the capital. The term “discount factor” is sometimes erroneously used instead of “discount rate.” Actually, the factors used in discounting are present worth factors.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.270 “Earnings-price ratio” defined. (NRS 360.090, 361.320) “Earnings-price ratio” means the ratio of earnings per share available to common stockholders of a specific company for an accounting period to the market price per share of the common stock of that company. See NAC 361.358.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.272 “Economic life” defined. (NRS 360.090, 361.320) “Economic life” means the useful life of a property in contrast to its physical life which could be greater.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.274 “Economic rent” defined. (NRS 360.090, 361.320) “Economic rent” means the rent currently and typically found in the open market.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.276 “Effective rate of interest” defined. (NRS 360.090, 361.320) “Effective rate of interest” means the total cost to a company for borrowing money divided by the face value of the money. The interest expense plus the cost of floating the debt or compensatory bank balance are included in calculating the total cost.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.278 “Equity” defined. (NRS 360.090, 361.320) “Equity” means the owners’ interest in the business. In monetary terms, it is the amount of money the owners have invested in common and preferred stock plus earnings of the business that have not been paid out as dividends.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.280 “Expense” defined. (NRS 360.090, 361.320) “Expense” means the gross number of dollars paid for materials or services.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.282 “Fair market value” defined. (NRS 360.090, 361.320) “Fair market value” means the highest price estimated in terms of money which a property will bring if exposed for sale in the open market allowing a reasonable time to find a purchaser who buys with full knowledge of all the uses to which it is adapted and for which it is capable of being used.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.284 “Fair return” defined. (NRS 360.090, 361.320) “Fair return” means an amount of income authorized by a regulatory agency which is considered sufficient for a utility to attract necessary additional capital while at the same time rendering adequate service.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.285 “Final reconciliation” defined. (NRS 360.090, 361.320) “Final reconciliation” means the application of the process of evaluating alternative conclusions and selecting from the indications of value derived from each of the approaches used in the appraisal process to arrive at a final estimate of value.
(Added to NAC by Tax Comm’n, eff. 9-30-88)
NAC 361.286 “Fixed expenses” defined. (NRS 360.090, 361.320) “Fixed expenses” means those expenses of a business enterprise which do not vary in relation to changes in volume of output such as interest on borrowed funds, insurance or general overhead expenses.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.288 “Flow-through accounting” defined. (NRS 360.090, 361.320) “Flow-through accounting” means the practice of charging to the current period only those expenses incurred during the period. A common example is the lesser income tax expense in a given period, due to the use of accelerated depreciation methods or guideline lives in contrast to straight-line depreciation or normal service lives, which would benefit the consumer in the form of lower cost of service if prescribed by the regulatory agency. See NAC 361.342.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.290 “Form P report” defined. (NRS 360.090, 361.320) “Form P report” means the annual report of an operation filed by a common carrier pipeline with the Surface Transportation Board.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.292 “Form 2 report” defined. (NRS 360.090, 361.320) “Form 2 report” means the annual report of an operation filed by an interstate natural gas and electric transmission company with the Federal Power Commission.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.294 “Form 10-K report” defined. (NRS 360.090, 361.320) “Form 10-K report” means an annual report to the Securities and Exchange Commission in Washington, D.C., concerning corporate operations.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.296 “Forms R-1 and R-2” defined. (NRS 360.090, 361.320) “Forms R-1 and R-2” means the annual reports of business operation filed with the Surface Transportation Board by Class I railroads (operating revenues of $5,000,000 or more) and Class II railroads (operating revenues less than $5,000,000) respectively.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.298 “Fractional appraisal” defined. (NRS 360.090, 361.320) “Fractional appraisal” means the valuation of one or more component parts without reference to the value of the whole enterprise. The sum of two or more fractional appraisals is called a summation appraisal and does not always equal unit value.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.300 “Full cash value” defined. (NRS 360.090, 361.320) “Full cash value” means the amount at which the property would be appraised if taken in payment of a just debt due from a solvent debtor.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.302 “Functional depreciation” defined. (NRS 360.090, 361.320) “Functional depreciation” means the loss of service usefulness or obsolescence due to technological advances or social requirements.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.304 “Generally accepted accounting principles” defined. (NRS 360.090, 361.320) “Generally accepted accounting principles” means those procedures adopted and endorsed by the financial accounting standards board to which auditors certify when filing an audit report.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.306 “Gross addition” defined. (NRS 360.090, 361.320) “Gross addition” means new property added to an existing plant or an improvement in the form of a betterment added to existing property and is usually reported in a dollar amount.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.308 “Gross income” defined; synonymous with “gross earnings.” (NRS 360.090, 361.320) “Gross income” means the total amount of income received by a natural person before any deductions are taken. The term is synonymous with the term “gross earnings.”
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.310 “Historical cost” defined; synonymous with “original cost.” (NRS 360.090, 361.320) “Historical cost” means the first cost of a property item of a public utility regardless of the present owner or interim sales transactions. It usually refers, in the accounting of public utilities, to the cost of a property item when first devoted to public service. For other than the accounting of public utilities, the term means the cost to the owner at the time of acquisition. The term is synonymous with the term “original cost” in public utility accounting.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.312 “Imbedded debt cost” defined. (NRS 360.090, 361.320) “Imbedded debt cost” means the average rate of interest that a company pays for its long-term debt. Basically, it is the amount of the total interest paid on long-term debt during the year divided by the face value of the long-term debt outstanding at the end of the year.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.314 “Inch equivalent” defined. (NRS 360.090, 361.320) “Inch equivalent” means the miles of various sizes of a pipeline converted into an equivalent mileage of 1-inch pipeline. For example, 1 mile of 36-inch pipe is equivalent to 36 miles of 1-inch pipe.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.316 “Income” defined. (NRS 360.090, 361.320) “Income” means money or other benefits stemming from the ownership of property, generally received on a regular monthly or annual basis. The word “income” used alone has no specific appraisal significance, but must be modified to form terms such as gross income and net operating income. Revenue is the preferred measure for business and income is the preferred measure of the salaries of persons.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.318 “Income approach to value” defined. (NRS 360.090, 361.320) “Income approach to value” means the method of appraisement that involves the analysis of the incomes and expenses of income-producing properties and the use of the capitalization of income to produce property value indicators.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.320 “Indicator of value” defined. (NRS 360.090, 361.320) “Indicator of value” means a conclusion of the worth, expressed in dollars, of a specifically identified item of property (be it a single parcel of land or piece of equipment or an extensive corporate conglomerate) based upon consideration of particular characteristics or attributes of that property. Among the most common indicators of value are those based upon cost, income and comparable sales.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.322 “Interest rate” defined. (NRS 360.090, 361.320) “Interest rate” means a promised, typically contractual annual percentage rate of interest paid on a debt such as a mortgage note or a contract. Interest is the cost of borrowing money.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.324 “Interperiod allocation” defined. (NRS 360.090, 361.320) “Interperiod allocation” means an assignment of expenses to a certain period rather than to the period in which the expenses occurred. Income tax expense is so handled in normalization accounting.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.326 “Investment tax credit” defined. (NRS 360.090, 361.320) “Investment tax credit” means a federal income tax incentive intended to encourage capital investment. It is a permanent forgiveness of income tax liability through the direct reduction of tax liability for the year in which it is utilized. The amount of tax credit has varied, but it is a percentage of the investment in the qualified plant, with limits for the amount of tax reduction including carry-back or carry-forward features. The investment tax credit was repealed for property placed in service after December 31, 1985.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.328 “Inwood factor or method” defined. (NRS 360.090, 361.320) “Inwood factor or method” means a factor or method used to determine the present value of future earnings. Those earnings are capitalized by using the same risk rate for both the return on and the return of the investment.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.330 “Liberalized depreciation” defined. (NRS 360.090, 361.320) “Liberalized depreciation” means the use of rates of depreciation on property for income tax purposes that amortizes the investment over a shorter time period than its actual useful life. See revenue proceedings 72-10 IRS.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.332 “Load factor” defined. (NRS 360.090, 361.320) “Load factor” means the ratio of the average use, during a specified time interval, to the peak use during the same time interval. It may be calculated on a daily, weekly, monthly or an annual basis.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.334 “Main track” defined. (NRS 360.090, 361.320) “Main track” means the lines or routes of a railroad, whether on the main line or a branch line, as distinguished from yard track, side track or passing track.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.336 “Market value” defined. (NRS 360.090, 361.320) “Market value” means the amount in dollars for which a specific item of property could be sold by a willing seller and be bought by a willing buyer, assuming an arm’s length transaction and reasonable exposure to the market.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.338 “Net additions” defined. (NRS 360.090, 361.320) “Net additions” means the gross additions less the retirements and is usually reported in amounts of dollars.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.340 “Net operating income” defined. (NRS 360.090, 361.320) “Net operating income” means the excess of the revenues of a business enterprise over the expenses of the enterprise, excluding the income from sources other than its regular activities, but before the deduction of debt interest or recapture of capital. In property tax appraisal, the net operating income is at a level that also includes the sum to be paid for property taxes.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.342 “Normalization accounting” defined. (NRS 360.090, 361.320) “Normalization accounting” means the practice of charging to the current period those expenses related to the current period rather than to the period in which they are actually incurred. A common example is the computation and assignment of income tax expense to a period based on a straight-line depreciation method rather than on an accelerated depreciation method actually used. The income tax expense computation may or may not have included the additional variable of normal lives versus allowable guideline lives. See NAC 361.288.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.344 “Obsolescence” defined. (NRS 360.090, 361.320) “Obsolescence” means the lessening of value due to causes other than physical causes and may be functional where circumstances internal to the property item render it less desirable or economic where circumstances external to the item and beyond the control of the owner render the property item less desirable.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.346 “Operating expenses” defined. (NRS 360.090, 361.320) “Operating expenses” means the direct expenses incurred in conducting the ordinary major activities of an enterprise, usually excluding nonoperating expenses and income deductions.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.348 “Operating revenue” defined; synonymous with “net revenue.” (NRS 360.090, 361.320) “Operating revenue” means the revenue from the operations of the primary business of an enterprise, such as the electric revenues of an electric utility, which is gross sales of goods and services, less returns, allowances and cash discounts, together with gross amounts received from any other regular income source. The term is synonymous with the term “net revenue” from sales of services.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.350 “Original cost” defined. (NRS 360.090, 361.320) “Original cost” means the cost of a property item to the present owner. At times, it is used as an equivalent to the historical cost.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.352 “Possessory interest” defined. (NRS 360.090, 361.320) “Possessory interest” means a type of ownership or partial ownership of the total fee. In financial terminology it is the portion of the equity in a business enterprise which is expressed in terms of dollars invested. In valuation it is frequently encountered where government property is rented or leased to a taxable occupant.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.354 “Prepayments for gas” defined. (NRS 360.090, 361.320) “Prepayments for gas” means payments made for gas which will be delivered in less than 1 year.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.356 “Present worth” defined; synonymous with “present value.” (NRS 360.090, 361.320) “Present worth” means the value today of something to be received in the future. It is usually calculated by a discounting process that takes into consideration the time and interest concept of the worth of the money. The term is synonymous with the term “present value.”
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.358 “Price-earnings ratio” defined. (NRS 360.090, 361.320) “Price-earnings ratio” means the ratio of the market price per share of the common stock of a specific company to the earnings per share of common stock of that company during a 12-month period. Typically, the ratio is based upon the current market price and the most recent 12-month period for which the earnings are known.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.360 “Rate base” defined. (NRS 360.090, 361.320) “Rate base” means the amount in dollars established by a regulatory agency upon which a return is allowed.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.362 “Rate of capitalization” defined. (NRS 360.090, 361.320) “Rate of capitalization” means the ratio of income to value. Such a rate can vary widely in quality depending upon the elements that are included such as interest, recapture, ad valorem taxes and income taxes.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.364 “Rate of performance” defined. (NRS 360.090, 361.320) “Rate of performance” means the actual income earned compared to an investment in contrast to a rate of return allowed or permitted but not necessarily accomplished.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.366 “Rate of return” defined. (NRS 360.090, 361.320) “Rate of return” is a general term that means:
1. The yield to an investor variously on the investor’s net investment or on the property value; or
2. The ratio of either the net operating income or the before-tax cash flow to either the total property value or the initial investment or the average investment during a given period.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.368 “Recapture” defined. (NRS 360.090, 361.320) “Recapture” means the recovery of a capital investment. More specifically, it is the portion of the net operating income or the cash flow that provides for the periodic repayment of invested capital. Recapture may also be achieved, wholly or in part, through the resale of the property. The words depreciation and amortization are sometimes used as synonyms for recapture. However, depreciation is also both an accounting term and a word that means a loss from original value and amortization is commonly used to signify debt retirement. Recapture does not have these multiple meanings and is more desirable for use in income appraisal.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.370 “Remaining economic life” defined. (NRS 360.090, 361.320) “Remaining economic life” means the difference between the economic life and the present effective age of an income producing property.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.372 “Replacement cost” defined. (NRS 360.090, 361.320) “Replacement cost” means the cost of acquiring or constructing, at current prices, a property which is the functional equivalent of an existing property.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.374 “Reproduction cost” defined. (NRS 360.090, 361.320) “Reproduction cost” means the cost of acquiring or constructing, at current prices, a property identical to an existing property.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.376 “Reserve life” defined. (NRS 360.090, 361.320) “Reserve life” means an estimated number of years that the gas reserves of a natural gas transmission company will last. For example, the remaining life of a natural gas transmission company would be the estimated number of years a company can deliver gas at a given annual volume of gas divided by the total gas reserves.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.378 “Retirement depreciation” defined. (NRS 360.090, 361.320) “Retirement depreciation” means a method of accounting for the total depreciation expense at the date of retirement rather than by systematic additions to a depreciation reserve during the life of the property.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.380 “Return on equity” defined. (NRS 360.090, 361.320) “Return on equity” means the ratio of earnings on the common equity divided by the book value of the common equity interests.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.382 “Revenue” defined. (NRS 360.090, 361.320) “Revenue” means the gross dollars received for materials furnished or services rendered. The term is usually used in conjunction with business sales as opposed to the earnings of a natural person.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.384 “Risk” defined. (NRS 360.090, 361.320) “Risk” means the degree of uncertainty regarding the receipt of future income, whether in the form of interest or of net operating income. The higher the risk, the greater the annual percentage rate of return demanded by investors. Interest on a government bond or on a bank deposit has a high degree of certainty of receipt and therefore offers a low rate of return compared to other investments. At the other extreme is the high risk equity portion of a commercial enterprise with a high debt equity ratio.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.386 “Sinking fund” defined. (NRS 360.090, 361.320) “Sinking fund” means the fund to which periodic cash deposits are made for ultimately repaying a debt or replacing an asset. Usually, a sinking fund receives equal periodic deposits upon which interest is compounded at a stated rate so that the fund will accumulate to a predetermined amount at the end of a stated period.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.387 “Statistical median” defined. (NRS 360.090, 361.320) “Statistical median” means the representative intermediate value calculated for a distribution or range of data usually grouped in several intervals of equal value lying between the two extreme values.
(Added to NAC by Tax Comm’n, eff. 9-30-88)
NAC 361.388 “Straight-line depreciation” defined. (NRS 360.090, 361.320) “Straight-line depreciation” means the accounting practice of recording equal annual increments of depreciation over the estimated life of an asset. In an appraisal it means equal annual increments of loss in value.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.390 “Summation method of valuation” defined. (NRS 360.090, 361.320) “Summation method of valuation” means the combining of fractional valuations into one value such as the addition of the value of a house to the value of the lot to produce a total residential value.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.392 “System” defined. (NRS 360.090, 361.320) “System” means an integrated operation of units which may be related entities or may be property elements such as machinery, buildings, land and other property used in the performance of a service or the manufacture of a product.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.394 “Tariff” defined. (NRS 360.090, 361.320) “Tariff” means the compilation of the schedules of rates applicable to each of the products or services supplied to the public and the regulations governing other aspects of the sale.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.396 “Taxable value” defined. (NRS 360.090, 361.320) “Taxable value” means the value of a property determined by using the cost, income and market approaches as described in NAC 361.200 to 361.508, inclusive.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.398 “Times interest earned” defined. (NRS 360.090, 361.320) “Times interest earned” means the ratio of earnings before the interest expense to the interest expense. The factor is an element used in determining risk by the purchaser of debt issues of a company. Generally, the lower the factor the greater the risk. Also called interest coverage, it may be the ratio of earnings before interest and income taxes to interest expense.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.400 “Uniform system of accounts” defined. (NRS 360.090, 361.320) “Uniform system of accounts” means the prescribed method of accounting adopted by a state regulatory agency, such as a public service commission, or by a federal regulatory agency such as the Department of Transportation, the Federal Communications Commission, the Federal Energy Regulatory Commission or the Surface Transportation Board.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.402 “Unitary method of valuation” defined. (NRS 360.090, 361.320) “Unitary method of valuation,” as used in the central assessment of utilities, is a method of valuation which recognizes that a utility is an integrated enterprise and that its market value is not a summation of the values of its various physical components but its value as a whole as a going concern.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.404 “Variable expenses” defined. (NRS 360.090, 361.320) “Variable expenses” means those expenses of a business enterprise which vary with changes in the volume of output such as outlays for fuel to generate electric power.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.406 “Yield to maturity” defined. (NRS 360.090, 361.320) “Yield to maturity” means the computation of the average rate of return on outstanding debt issues taking into consideration the current price, interest payments and capital gains or losses at the maturity of the issue.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)
NAC 361.408 Indicators of value: Cost approach; income approach; market or stock and debt approach; reconciliation. (NRS 360.090, 361.320)
1. The cost approach consists of that cost of all operating assets subject to the ad valorem property tax pursuant to NRS 361.315 and 361.320 that most closely reflects the taxable value of these operating assets.
2. For the income approach, the adjusted net operating income either after or before an allowance for depreciation and federal income tax will be capitalized (converted to value) through the use of an appropriate capitalization rate for the industry group. The income of the property to be capitalized will be determined as follows:
(a) With regard to those industry groups in which annual earnings are reasonably stable, the most recent year’s earnings may be capitalized.
(b) For those industry groups in which annual earnings vacillate frequently over a period of years, an average of past earnings may be used.
3. The market approach or stock and debt method of valuation is a technique that is applicable to valuing railroads and utilities, and it results initially in an enterprise value which encompasses the entire unit. The stock and debt indicator will be determined by multiplying either the average monthly, quarterly or annual high and low market price quotations of all the securities which are actively traded in the market place including common stock, preferred stock and long-term debt, by the number of shares outstanding at the end of the year. With regard to those securities which are not actively traded, computations of the present worth of the income flows may be made for the determination of their value. To this amount will be added short-term debt, together with other applicable adjustments. From this amount will be deducted the nonoperating and nonassessable assets for the indication of the value of those assets encompassed within NRS 361.315 and 361.320.
4. A review will be made of the one or more available indicators of value. These indicators of value will then be reconciled to derive the final estimate of value.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79; A 10-15-81]—(NAC A 9-30-88; R085-98, 11-23-98)
NAC 361.410 Use of unit rule of valuation. (NRS 360.090, 361.320) In the valuation of those properties which are listed in NRS 361.320, the unit rule of valuation will be used when considered applicable. The unit rule generally applies to companies which own or operate lines or roads which lie partly within and partly without Nevada. In these cases, the Department will only value and assess the property within the State. In determining the value of the portion within the State, the Department may take into consideration the value of the entire system, the mileage of the whole system and of the part within the State, together with such other information, facts and circumstances as will support a substantially just and correct determination.
[Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]
NAC 361.411 Reports of construction work in progress. (NRS 360.090, 361.321) Construction work in progress must be reported to the Department to the extent to which it provides additional capacity even though part of the new construction replaces existing property.
(Added to NAC by Tax Comm’n, eff. 10-10-83)
Communications, Electric, Gas Transmission, Pipeline and Railroad Companies
NAC 361.421 Cost approach indicator of value: Determination. (NRS 360.090, 361.320) The cost approach consists of:
1. Determining the gross book cost for financial reporting purposes of all taxable operating property, including, but not limited to, all property relating to rail transportation, utility plant in service, plant held for future use, contributed plant, nuclear fuel, construction work in progress, experimental plant, acquisition adjustments, materials and supplies, plant and other property leased from others and common plant.
2. Deducting from the gross book cost the accrued book depreciation recorded for financial reporting purposes, which may include physical, functional and economic obsolescence. Additional obsolescence must be deducted when adequately quantified.
(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98, 11-23-98)
NAC 361.4215 Cost approach indicator of value: Optional cost information. (NRS 360.090, 361.320) The taxpayer may present and the Department shall consider, in addition to the information required by NAC 361.421, one or more of the following alternative cost indicators of value:
1. A calculation of the reproduction cost new less depreciation for all taxable operating property of the collective unit being assessed. The calculation must have been performed in accordance with generally accepted appraisal methodology.
2. A calculation of the replacement cost new less depreciation for all taxable operating property of the collective unit being assessed. The calculation must have been performed in accordance with generally accepted appraisal methodology.
3. Any other relevant and verifiable information, such as rate base for regulatory purposes.
(Added to NAC by Tax Comm’n by R085-98, eff. 11-23-98)
NAC 361.423 Income approach indicator of value: Formula for determination. (NRS 360.090, 361.320)
1. The capitalized income approach consists of deducting from the normalized and annualized gross operating income any direct and indirect normalized and annualized operating expenses specifically related to the normalized and annualized gross operating income including any annualized book depreciation. Deferred income taxes will be treated as an operating expense. Normalized and annualized rental expense on operating property leased from others, less imputed depreciation, income taxes and other applicable expenses, will be disallowed as an operating expense.
2. The resulting adjusted net operating income will be capitalized (converted to value) using an appropriate capitalization rate for the industry group. The capitalization rate for the typical company will be used for the firms being appraised in each industry group. The market capitalization rate will be derived from calculations made for selected companies in each industry group.
3. The operating income to be capitalized into taxable value will be normalized and annualized based on the most recent year’s adjusted net operating income. When the most recent year’s net operating income is not a reasonable representation of a company’s net operating income, such as where a company’s net operating income tends to be cyclical, a 3- or 5-year average of adjusted net operating incomes will be normalized and annualized and may be used.
4. Construction work in progress is not a factor in applying the income approach to value.
5. Any normalization or annualization adjustments to a company’s net operating income must be based on known, measurable and experienced changes in a company’s operation or taxable property as of the current year’s reporting date.
(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98, 11-23-98)
NAC 361.425 Income approach indicator of value: Capitalization rate. (NRS 360.090, 361.320) The capitalization rate will be established from a selected number of firms to derive the rate for the typical company in each industry group when the information is available:
1. The band-of-investment method will be used in the compilation of the capitalization rate.
2. The band-of-investment method represents the cost of the money needed by the typical company in each industry group to acquire its operating plant and carry on its operations. It is composed of two factors:
(a) The capitalization ratios of the typical company; and
(b) The cost of the items which comprise the total capital structure of the typical company.
3. A “typical company” means a theoretical company which is representative of the firms within an industry group. The selected firms in the industry group will be comparable in amount of revenues, bond ratings, nature of operations and regulatory environment. Certain nonutility conglomerates which have utility operations in Nevada will be studied in the light of other similar conglomerates. Conglomerates will not be grouped with nonconglomerates where possible. The development of the typical company will reflect input by the companies within the industry group which are centrally assessed.
4. The items which comprise the total capital structure of the typical company are those amounts as recorded for financial reporting purposes that represent the sources of the money or capital funds made available to acquire the taxable operating property of the industry group. For the purposes of this subsection, “capital funds” means money obtained from:
(a) Creditors through notes or bonds;
(b) Stockholders through stocks, paid-in capital and undistributed retained earnings; and
(c) Similar financial capital accounts, except not from the Federal Government through deferred income taxes.
Ê The total capital structure of the typical company will be derived through the use of a statistical median from the selected sample of firm calculations.
5. In addition to the total capital structure of the typical company derived pursuant to subsection 4, the taxpayer may present and the Department shall consider the total capital structure of the typical company based upon common equity, preferred equity and the long-term debt percentages as developed from market information for comparable companies in the industry group. The total capital structure of the typical company must be derived from the use of market information from the selected sample of firm calculations.
6. The annual average of high-low monthly yields to maturity compiled by Moody’s Investors Service (Public Utility and Transportation), or another accepted service approved by the Executive Director of the Department, will be used for the assignment of a cost to the long-term bonded indebtedness component of the total capital structure.
7. The assignment of cost to preferred stock will be determined in a manner consistent with subsection 6.
8. The assignment of cost to that portion of the total capital structure which represents equity for the typical company in each industry group will be determined in the following manner:
(a) The Department shall develop an equity rate for each industry group based on one or more of the following models:
(1) Discounted cash-flow method.
(2) Capital asset-pricing.
(3) Risk premium analysis.
(b) The Department shall also consider the results of cost of equity studies provided by members of the industry group based on the models set forth in paragraph (a).
(c) When considered applicable, the cost of equity capital established for the industry group may be determined by using additional models, such as direct capitalization, accepted in the appraisal and financial communities and approved by the Executive Director of the Department.
9. The capitalization rate of the typical company for the industry group will be calculated by using a weighted method (band-of-investment) which is the total capital structure percentage times the component rate percentage. The weighted values are then totaled and rounded to four decimal places to get the capitalization rate.
EXAMPLE:
|
|
MEDIAN |
|
|
|
|
|
CAPITAL |
|
|
WEIGHTED |
|
TYPICAL COMPANY |
STRUCTURE |
X |
RATE = |
RETURN |
|
|
|
|
|
|
|
Common Equity |
42.50% |
|
11.20% |
4.76000% |
|
Preferred Equity |
9.25% |
|
9.35% |
.86488% |
|
Long-Term Debt |
48.25% |
|
9.45% |
4.55963% |
|
Capitalization Rate |
|
|
|
|
|
for Industry Group |
|
|
|
10.1845% |
10. The determination of the income value indicator requires the capitalization of the adjusted net operating income at the current capitalization rate. Financial data for selected companies in each industry group, as presented in the latest annual reports by Moody’s Investors Service (Public Utility and Transportation), or another accepted service approved by the Executive Director of the Department, will be used in the compilation of the capitalization rate of the typical company.
11. An alternative to the capitalization rate method in subsections 1 to 9, inclusive, may be the use of a rate for the industry group as published by the Western States Association of Tax Administrators, or another recognized tax related organization approved by the Executive Director of the Department.
(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98, 11-23-98)
NAC 361.427 Stock and debt approach indicator of value. (NRS 360.090, 361.320)
1. The stock and debt approach proposes a value for the entire firm, but is generally recognized as a less applicable methodology for determining the value of taxable property.
2. The stock and debt indicator is determined by multiplying either the average monthly, quarterly or annual high and low market price quotations, when available, for all the securities which are actively traded in the market place, including common stock, preferred stock and long-term debt, by the number of shares outstanding at the end of the year. Computations of the present worth of income flows may be made to determine values for securities which are not actively traded.
3. The value of the stock of a holding company is apportioned among its operating companies according to the ratio of:
(a) Each operating company’s property to the aggregate property of all of the operating companies, valued at historical cost and weighted at one-third; and
(b) Each operating company’s net income before income taxes to the aggregate net income of all of the operating companies, weighted at two-thirds.
Ê For the industry group of rail transportation, the direct deduction method to eliminate nonoperating assets will be used when the information is available and considered applicable.
4. To this amount will be added items such as customer advances for construction which are nontaxable for federal income tax purposes, current liabilities less dividends declared, the present worth of leased property over the period of the lease together with any other items conforming to the theory that if a person were to purchase all the stock and assume all the outstanding liabilities of a company, the person would have acquired all the assets which appear on the asset side of the balance sheet and, therefore, own the company.
5. From this amount will be deducted the market value of all exempt or nonoperating property, including, but not limited to, cash, accounts receivable, notes receivable, miscellaneous investments, temporary investments, nonoperating properties and other current and accrued assets and properties not subject to the ad valorem property tax imposed by NRS 361.315 and 361.320.
(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98, 11-23-98)
NAC 361.429 Reconciliation of indicators of value. (NRS 360.090, 361.320)
1. Immediately related to the valuation process is the reconciliation of one or more indicators of value to reach the final estimate of value for the system.
2. For multiple departmental companies, when considered applicable, the utility analyst will either reconcile the indicators of value for allocation of the value of the system to the value to the various departments, or use the adopted Western States Association of Tax Administrators formulas, approved by the Executive Director of the Department, to allocate the Department and stock and debt values based on the cost and income data.
3. The utility analyst will reconcile in writing to the taxpayer the relative significance, applicability and defensibility of the indication of value derived from each approach to arrive at, in the utility analyst’s professional judgment, the appropriate final estimate of value for the system.
4. The utility analyst will reconcile, in writing to the taxpayer, the facts, trends and observations developed in the analysis and review the conclusion and the probable validity and reliability of the conclusion.
(Added to NAC by Tax Comm’n, eff. 9-30-88)
NAC 361.431 Allocation of value of interstate and intercounty properties. (NRS 360.090, 361.320)
1. Since the unit rule of valuation will be used for all interstate and intercounty properties, an allocation of those properties operating in Nevada will be made.
2. The allocation will:
(a) Total 100 percent for all states in which the company operates; and
(b) Reflect the quantity of property in each state, as well as the use or value of the property in each state.
3. Allocation factors will be those that are readily available rather than requiring some new or additional statistic and the factor will not be an allocation in and of itself.
4. The interstate allocation will be made in proportion to the contribution to the unit value made by the property in Nevada. The allocation will be a reflection of the property value. It is the value of the existing property which is being allocated, not merely the amount of the physical property.
5. Available quantity elements such as cost and economic or use elements such as revenue will be used in the determination of the allocation.
6. The interstate allocation formulas adopted by the Western States Association of Tax Administrators will be approved by the Executive Director of the Department and used when the information is available and considered applicable.
(Added to NAC by Tax Comm’n, eff. 9-30-88)
NAC 361.433 Deductions from taxable value. (NRS 360.090, 361.320)
1. The value and not the cost of any vehicles licensed in Nevada will be deducted from the taxable value of the property which was allocated to Nevada.
2. For telecommunications companies, property on lands ceded to the United States Government before 1936 will also be deducted. Cost less depreciation as reported by the company will be used.
3. The value and not the cost of certified pollution control equipment directly related to the operation of the firm will be deducted from the taxable value to the extent allowed pursuant to statute.
(Added to NAC by Tax Comm’n, eff. 9-30-88)
Air Transportation Companies Generally
NAC 361.451 Applicability. (NRS 360.090, 361.320) Except as specifically provided in NAC 361.4685, the provisions of NAC 361.452 to 361.468, inclusive, do not apply to a taxpayer whose property is assessed pursuant to NAC 361.4685, 361.469 and 361.4695.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A by R026-99, 1-27-2000)
NAC 361.452 Cost approach indicator of value. (NRS 360.090, 361.320) The cost approach consists of:
1. Determining the gross book cost for financial reporting purposes of all taxable operating property, including, without limitation, airframes, engines, propellers, radio equipment, miscellaneous flight equipment, spare parts and assemblies, leased aircraft, improvements to leased equipment, construction work in progress, ground property and equipment, land, expendable parts, materials and supplies, and leased property; and
2. Deducting from the gross book cost the accrued book depreciation recorded for financial reporting purposes, which may include, without limitation, physical, functional and economic obsolescence. Additional obsolescence must be deducted when adequately quantified.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]—(NAC A 9-30-88; R026-99, 1-27-2000)
NAC 361.454 Income approach indicator of value: Formula for determination. (NRS 360.090, 361.320)
1. The capitalized income approach consists of deducting from the normalized and annualized gross operating income any direct and indirect normalized and annualized operating expenses specifically related to the normalized and annualized gross operating income, including, without limitation, any annualized book depreciation. Deferred income taxes will be treated as an operating expense. Normalized and annualized rental expense on operating property leased from others, less imputed depreciation, income taxes and other applicable expenses, will be disallowed as an operating expense.
2. The resulting adjusted net operating income will be capitalized (converted to value) using an appropriate capitalization rate for the airline industry group. The capitalization rate for the typical company will be used for the carriers being appraised in each airline industry group. The market capitalization rate will be derived from calculations made for selected carriers in each airline industry group.
3. The operating income to be capitalized into taxable value will be normalized and annualized based on the most recent year’s adjusted net operating income. When the most recent year’s net operating income is typically not a reasonable representation of the net operating income of an airline, such as where the net operating income of the airline tends to be cyclical, a 3- or 5-year average of adjusted net operating incomes will be normalized and annualized and may be used.
4. The net operating income may be capitalized before deducting any book depreciation or income tax if the normalized and annualized net operating income results in a negative amount. If any book depreciation or income tax is added to the net operating income before the net operating income is capitalized, the capitalization rate must include a component for that book depreciation or income tax.
5. Any normalization or annualization adjustments to the net operating income of a carrier must be based on known, measurable and experienced changes in the operation or taxable property of the carrier as of the current year’s reporting date.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79; A 10-15-81]—(NAC A 9-30-88; R026-99, 1-27-2000)
NAC 361.456 Income approach indicator of value: Capitalization rate. (NRS 360.090, 361.320) The capitalization rate will be established from a selected number of carriers and determined in the following manner to arrive at the typical company in the airline industry group when the information is available:
1. The band-of-investment method will be used in the compilation of the capitalization rate.
2. The band-of-investment method represents the cost of the money needed by the typical company in the airline industry group to acquire its operating plant and carry on its operations. It is composed of two factors:
(a) The capitalization ratios of the typical company; and
(b) The cost of the items which comprise the total capital structure of the typical company.
3. A “typical company” means a theoretical company which is representative of the carriers within an airline industry group. These carriers will be comparable in amount of revenues, bond ratings and nature of operations. Certain nonairline conglomerates which have airline operations in this State will be studied in light of other similar conglomerates. Regular carriers will not be grouped with conglomerates where possible. Development of typical company factors will reflect input by the carriers within the airline industry group which are centrally assessed. As used in this subsection, “nature of operations” includes, without limitation, the size, route structure and fleet diversification of the air carrier.
4. The items which comprise the total capital structure of the typical company are those amounts as recorded for financial reporting purposes that represent the sources of the money or capital funds made available to acquire the taxable operating property of the airline industry group. As used in this subsection, “capital funds” means money obtained from:
(a) Creditors through notes or bonds;
(b) Stockholders through stocks, paid-in capital and undistributed retained earnings; and
(c) Similar financial capital accounts except not from the Federal Government through deferred income taxes.
Ê The capital structure of the typical company will be derived through the use of a statistical median from the calculations of the selected sample carriers.
5. In addition to the total capital structure of the typical company derived by the Department pursuant to subsection 4, the taxpayer may present and the Department shall consider the total capital structure of the typical company based upon the common equity, preferred equity and the long-term debt percentages as developed from market information for comparable carriers in the airline industry group. The total capital structure of the typical company must be derived from using market information from the selected sample of carrier calculations.
6. The annual average of high-low yields to maturity compiled by Moody’s Investors Service (Public Utility and Transportation) or another acceptable service, approved by the Executive Director of the Department, will be used for the assignment of a cost to the long-term bonded indebtedness component of the total capital structure.
7. The assignment of cost to preferred stock will be determined in a manner consistent with subsection 6.
8. The assignment of cost to that portion of the total capital structure which represents equity for the typical company in each airline industry group will be determined in the following manner:
(a) The Department shall develop an equity rate for each airline industry group based on one or more of the following models:
(1) Discounted cash-flow method.
(2) Capital asset-pricing.
(3) Risk premium analysis.
(b) The Department shall also consider the results of cost of equity studies provided by a carrier of the airline industry group based on the models set forth in paragraph (a).
(c) When considered applicable, the cost of equity capital established for the airline industry group may be determined by using additional models, including, without limitation, direct capitalization, accepted in the appraisal and financial communities and approved by the Executive Director of the Department.
9. The capitalization rate of the typical company for the airline industry group will be calculated by using a weighted method (band-of-investment) which is the total capital structure percentage times the component rate percentage. The weighted values are then totaled and rounded to four decimal places to get the capitalization rate.
EXAMPLE:
|
|
MEDIAN |
|
|
|
|
|
CAPITAL |
|
|
WEIGHTED |
|
TYPICAL COMPANY |
STRUCTURE |
X |
RATE = |
RETURN |
|
|
|
|
|
|
|
Common Equity |
42.50% |
|
11.20% |
4.76000% |
|
Preferred Equity |
9.25% |
|
9.35% |
.86488% |
|
Long-Term Debt |
48.25% |
|
9.45% |
4.55963% |
|
Capitalization Rate for Industry Group |
|
|
|
10.1845% |
10. The determination of the income value indicator requires the capitalization of the adjusted net operating income at the current capitalization rate. Financial data for selected carriers in each airline industry group as presented in the latest annual reports by Moody’s Investors Service (Public Utility and Transportation) or another accepted service, approved by the Executive Director of the Department, will be used in the compilation of the capitalization rate of the typical company.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79; A 10-15-81]—(NAC A 10-10-83; 9-30-88; R026-99, 1-27-2000)
NAC 361.460 Reconciliation of indicators of value. (NRS 360.090, 361.320)
1. Immediately related to the valuation process is the reconciliation of one or more indicators of value to reach the final estimate of value for the system.
2. The analyst will reconcile in writing to the taxpayer the relative significance, applicability and defensibility of the indication of value derived from each approach to arrive at, in the professional judgment of the analyst, the appropriate final estimate of system value for the air transport company.
3. The analyst will reconcile in writing to the taxpayer the facts, trends and observations determined in the analysis and review the conclusion and the probable validity and reliability of that conclusion.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79; A 10-15-81]—(NAC A 10-10-83; 9-30-88)
NAC 361.462 Deduction of depreciated cost of nonallocable flight equipment. (NRS 360.090, 361.320)
1. The depreciated cost of the nonallocable flight equipment will be deducted from the total depreciated cost of the flight equipment.
2. For the purposes of this section:
(a) “Flight equipment” includes, without limitation, airframes, engines, propellers, radio equipment, miscellaneous flight equipment, spare parts and assemblies, leased aircraft and improvements to leased equipment.
(b) “Nonallocable flight equipment” means only that property or equipment which is not attached or required to be aboard or part of an aircraft which is ready for flight.
3. Every item of property which is required to be aboard for the operation of the aircraft will be classified as allocable flight equipment.
4. The only instances when an aircraft will be classified as nonallocable are when:
(a) The carrier purchased an aircraft which was not delivered or was delivered too late to have participated in the creation of the allocation statistics; or
(b) An aircraft which is owned by the carrier was leased to and operated by another party.
5. The percentage of the total amount of tangible personal property of the carrier which the allocable flight equipment represents will be calculated and applied to the total estimate of value of the assessable property of the carrier.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]
NAC 361.464 Allocation of value of interstate companies. (NRS 360.090, 361.320)
1. Since the unit rule of valuation will be used for the described properties, an allocation of those properties operating in Nevada will be made.
2. The allocation will:
(a) Total 100 percent for all states in which a company operates; and
(b) Reflect the quantity of property in each state, as well as the use or value of the property in each state.
3. Allocation factors will be those that are readily available rather than requiring some new or additional statistic, and a factor will not be an allocation itself.
4. The interstate allocation will be made in proportion to the contribution to the unit value made by the property in Nevada. Allocation will be made in the light of the property value. It is the value of the existing property which is being allocated, not merely the amount of the physical property.
5. Available quantity elements such as cost and economic or use elements such as revenue will be used in the determination of the allocation.
6. The following elements will be considered in the allocation of allocable flight equipment to Nevada and are assigned the following weight:
(a) Air and ground time weighted to the original cost of allocable flight equipment, 50 percent;
(b) Originating and terminating tonnage, 15 percent; and
(c) Revenue ton miles flown, 35 percent.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]
NAC 361.466 Development, application of factor for property located in Nevada. (NRS 360.090, 361.320)
1. The depreciated cost of the total tangible property of the carrier will be related to the estimate of value for the system for that same property in the form of a percentage. (This estimate of value will be determined by using the three approaches to value divided by the depreciated cost of the total tangible property.)
2. The factor so developed will be applied to that ground property having situs in Nevada.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]
NAC 361.468 Addition of property located in Nevada. (NRS 360.090, 361.320) The adjusted estimate of value for the situs property in Nevada will be added to the flight equipment which was allocated to Nevada for the final estimate of value for Nevada.
[Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]
Certain Air Transport Companies, Airline Industry Groups, and Unscheduled or Charter Air Carriers
NAC 361.4685 Applicability. (NRS 360.090, 361.320)
1. The provisions of NAC 361.469 and 361.4695 apply to each air transport company or airline industry group, including, without limitation, regional airlines or unscheduled airlines, for which information is insufficient to complete a valuation pursuant to NAC 361.451 to 361.468, inclusive.
2. The property of an unscheduled or a charter air carrier which is not domiciled in Nevada may be valued pursuant to this section and NAC 361.469 and 361.4695 and placed on the unsecured tax roll.
(Added to NAC by Tax Comm’n, eff. 10-10-83; A by R026-99, 1-27-2000)
NAC 361.469 Formula for assessment. (NRS 360.090, 361.320)
1. All allocable flight equipment may be valued in accordance with the Personal Property Manual published by the Department and approved by the Commission pursuant to NAC 361.1365 for each fiscal year or in accordance with other books or manuals that provide guidance in establishing value approved by the Executive Director.
2. A portion of the value of the flight equipment will be allocated to Nevada based on an average of the data described in subsection 3 or described in NAC 361.464 when the information is available and considered applicable.
3. The weighted ground-time ratio, as indicated by flight schedules, plane hours, originating and terminating tonnage and revenue ton miles flown in Nevada, as a percentage of the system, will be used as the statistic for allocating value to Nevada.
[Tax Comm’n, Property Tax Reg. Part No. 15N, eff. 10-30-79]—(NAC A 10-10-83; R026-99, 1-27-2000; R034-03, 12-4-2003)
NAC 361.4695 Property located in Nevada. (NRS 360.090, 361.320) To the value of the flight equipment allocated to Nevada will be added the depreciated book cost of all ground property in Nevada, including, without limitation, buildings and improvements, furniture, fixtures, machinery, equipment and nonallocable flight equipment. The value of the property which is not represented by the depreciated book cost, including, without limitation, leased and rented property, may be added to determine the total value of the operation in this State.
[Tax Comm’n, Property Tax Reg. part No. 15N, eff. 10-30-79]—(NAC A by R026-99, 1-27-2000)
Private Car Line Companies
NAC 361.506 Formula for assessment. (NRS 360.090, 361.320) The value for private car line companies will be:
1. Six thousand dollars assessed valuation for each 219,000 miles traveled in Nevada for tank cars.
2. Seven thousand dollars assessed valuation for each 255,000 miles traveled in Nevada for refrigeration cars.
3. Six thousand dollars assessed valuation for each 255,000 miles traveled in Nevada by other types of cars, including, without limitation, stock, box, hopper and flat cars.
[Tax Comm’n, Property Tax Reg. part No. 15I, eff. 10-30-79]—(NAC A 9-30-88)
Municipal Electric Companies
NAC 361.508 Valuation. (NRS 360.090, 361.320) In the valuation of municipal utilities, the depreciated book cost of all operating facilities in Nevada subject to assessment pursuant to NRS 361.315 and 361.320 will be used.
[Tax Comm’n, Property Tax Reg. part No. 15J, eff. 10-30-79]—(NAC A 10-10-83; 9-30-88)
CERTIFICATION OF APPRAISERS
NAC 361.535 Definitions. (NRS 360.090, 361.221) As used in NAC 361.535 to 361.575, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.537 to 361.553, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.537 “Appraiser” defined. (NRS 360.090, 361.221)
1. “Appraiser” means an employee of or an independent contractor with the State of Nevada or any of its political subdivisions who exercises judgment using his or her skills and knowledge of property appraisal to estimate the value of property for the purpose of taxation.
2. The term does not include a person who only collects data or manipulates computer programs to collect and organize data but does not render an estimate of the value of property.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.539 “Appraiser’s certificate” defined. (NRS 360.090, 361.221) “Appraiser’s certificate” means a certificate issued by the Department that authorizes a person to perform the duties of an appraiser.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.541 “Appraiser’s certificate examination” defined. (NRS 360.090, 361.221) “Appraiser’s certificate examination” means a comprehensive examination administered by the Department which covers the technical, legal and administrative aspects of the appraisal and assessment of property and which consists of a section that tests general knowledge and a section that tests specific knowledge.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.543 “Approved education course” defined. (NRS 360.090, 361.221, 361.223) “Approved education course” means a course of continuing education approved by the Department. The term includes, without limitation, classes, workshops and seminars.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.545 “Board” defined. (NRS 360.090, 361.221) “Board” means the Appraiser’s Certification Board established by NRS 361.221.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.547 “Contact hour” defined. (NRS 360.090, 361.221, 361.223) “Contact hour” means 1 hour of credit toward continuing education requirements awarded by the Department for attendance at or instruction of an approved education course.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.549 “Independent contractor” defined. (NRS 360.090, 361.221) “Independent contractor” means a person who contracts with, but is not otherwise employed by, the State of Nevada or any of its political subdivisions to perform the duties of an appraiser.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.551 “Personal property appraiser’s certificate” defined. (NRS 360.090, 361.221) “Personal property appraiser’s certificate” means an appraiser’s certificate that authorizes a person to perform the duties of an appraiser with respect to personal property only.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.553 “Real property appraiser’s certificate” defined. (NRS 360.090, 361.221) “Real property appraiser’s certificate” means an appraiser’s certificate that authorizes a person to perform the duties of an appraiser with respect to real property only.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.555 Temporary appraiser’s certificate. (NRS 360.090, 361.221, 361.222)
1. A person who is newly employed as an appraiser by the State of Nevada or any of its political subdivisions may apply to the Department for a temporary appraiser’s certificate.
2. The application must satisfy the requirements of NRS 361.2224 and 361.2225, be on a form approved by the Department and include:
(a) The name of the applicant;
(b) The mailing address and telephone number of the place of employment of the applicant;
(c) Verification of the employment of the applicant; and
(d) Such other information as the Department may require.
3. The Department will provide each applicant with a list of the dates on which and the locations at which the appraiser’s certificate examination will be offered.
4. The Department will issue a temporary appraiser’s certificate to a qualified applicant within 30 days after receiving the application. The certificate must include the name of the person to whom and the date on which it is issued, designate whether the holder is authorized to appraise real property or personal property, or both, and be signed by an authorized representative of the Department.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.557 Appraiser’s certificate. (NRS 360.090, 361.221)
1. A person who is employed as an appraiser by the State of Nevada or any of its political subdivisions may apply to the Department for an appraiser’s certificate.
2. The application must satisfy the requirements of NRS 361.2224 and 361.2225, be on a form approved by the Department and include:
(a) The name of the applicant;
(b) The mailing address and telephone number of the place of employment of the applicant;
(c) Verification of the employment of the applicant; and
(d) Such other information as the Department may require.
3. Except as otherwise provided in subsection 4, to be eligible for an appraiser’s certificate, the applicant must pass the appraiser’s certificate examination.
4. An applicant who submits proof satisfactory to the Department that he or she has earned a professional designation from any of the member organizations of the Appraisal Foundation is not required to take the section of the appraiser’s certificate examination that tests specific knowledge. Such professional designations include, without limitation:
(a) Member, Appraisal Institute (MAI).
(b) Certified Assessment Evaluator (CAE).
(c) Senior Real Property Appraiser (SRPA).
(d) Senior Real Estate Analyst (SREA).
(e) Residential Member (RM).
(f) Residential Evaluation Specialist (RES).
(g) Senior Residential Appraiser (SRA).
(h) Personal Property Specialist (PPS).
5. If an applicant, pursuant to subsection 4, submits proof of a professional designation that signifies specialization in the appraisal of real property or personal property, but not both, the Department, if it issues an appraiser’s certificate to the applicant, will issue a real property appraiser’s certificate or a personal property appraiser’s certificate, as applicable.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.559 Independent contractor’s appraiser’s certificate: Generally. (NRS 360.090, 361.221)
1. A person who wishes to perform the duties of an appraiser as an independent contractor with the State of Nevada or any of its political subdivisions may apply to the Department for an independent contractor’s appraiser’s certificate.
2. The application must satisfy the requirements of NRS 361.2224 and 361.2225, be on a form approved by the Department and include:
(a) The name of the applicant;
(b) The mailing address and telephone number of the applicant; and
(c) Such other information as the Department may require.
3. In addition to the requirements of subsection 2, the applicant must provide the Department with the resume of the applicant which documents the applicant’s education, his or her experience as an appraiser and any professional designations or certificates he or she holds, and which contains the names of at least two personal references. The Department may investigate the truthfulness of the information and representations set forth in the resume.
4. Except as otherwise provided in subsection 5, to be eligible for an independent contractor’s appraiser’s certificate, the applicant must pass the appraiser’s certificate examination.
5. An applicant who submits proof satisfactory to the Department that he or she has earned a professional designation from any of the member organizations of the Appraisal Foundation is not required to take the section of the appraiser’s certificate examination that tests specific knowledge. Such professional designations include, without limitation:
(a) Member, Appraisal Institute (MAI).
(b) Certified Assessment Evaluator (CAE).
(c) Senior Real Property Appraiser (SRPA).
(d) Senior Real Estate Analyst (SREA).
(e) Residential Member (RM).
(f) Residential Evaluation Specialist (RES).
(g) Senior Residential Appraiser (SRA).
(h) Personal Property Specialist (PPS).
6. If an applicant, pursuant to subsection 5, submits proof of a professional designation that signifies specialization in the appraisal of real property or personal property, but not both, the Department, if it issues an appraiser’s certificate to the applicant, will issue a real property appraiser’s certificate or a personal property appraiser’s certificate, as applicable.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.561 Independent contractor’s appraiser’s certificate: Renewal. (NRS 360.090, 361.221)
1. An independent contractor’s appraiser’s certificate must be renewed annually.
2. Except as otherwise provided in subsection 3, an application for renewal must be made in the same manner as, and is subject to the same requirements applicable to, an initial application as set forth in NAC 361.559.
3. The Department will waive the examination requirement for renewal if the applicant for renewal has satisfied the requirements for continuing education set forth in this chapter and NRS 361.223 and requests on the application for renewal that the examination requirement be waived.
4. Before an independent contractor’s appraiser’s certificate is renewed, the independent contractor must present proof satisfactory to the Department that he or she has contracted with the State of Nevada or any of its political subdivisions as an independent contractor within the immediately preceding 12 months, or that he or she has a reasonable expectation of so contracting within the next following 12 months.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.563 Appraiser’s certificate examination. (NRS 360.090, 361.221)
1. The Department will offer the appraiser’s certificate examination at least once each quarter. At least one administration of the examination each year must be at a location in northern Nevada, and at least one administration of the examination each year must be at a location in southern Nevada. A county assessor may submit to the Department a written request for an additional examination time and location. The Department will consider such a request if the budget of the Department is adequate to support the additional examination time and location.
2. The section of the appraiser’s certificate examination that tests general knowledge must, without limitation, test the knowledge and understanding of an applicant concerning:
(a) Land description and land use classifications;
(b) Principles and concepts of the appraisal of property;
(c) Relevant statutes and regulations of this State; and
(d) Principles of property tax administration.
3. The section of the appraiser’s certificate examination that tests specific knowledge must, without limitation, test the knowledge and understanding of an applicant concerning either:
(a) Principles and concepts of the appraisal of real property, which must include, without limitation:
(1) Land and land identification;
(2) Approaches to estimating the value of real property;
(3) Depreciation of real property; and
(4) Mass appraisal; or
(b) Principles and concepts of the appraisal of personal property, which must include, without limitation:
(1) Terminology;
(2) Approaches to estimating the value of personal property;
(3) Depreciation of personal property; and
(4) Analysis of financial data.
4. To pass the appraiser’s certificate examination, an applicant must receive a score of at least 70 percent on each section. The Department will mail to an applicant the results of his or her examination within 14 days after the applicant completes the examination.
5. An applicant will be given credit for each section of the examination that he or she passes. If an applicant passes only one section of the examination, the applicant may make a written request to the Department to retake the section that he or she did not pass.
6. An applicant who fails a section of the examination may request information from the Department concerning the general subject areas in that section which the applicant answered incorrectly. An applicant is not entitled to review his or her completed examination booklet or answer sheet after it is submitted for grading.
7. An applicant must direct any challenge to the content of the examination or to the validity and correctness of any question or answer to the Board. The challenge must be in writing and be postmarked not later than 10 calendar days after the receipt by the applicant of the results of the examination. The Board will not consider challenges containing mere statements of conclusion, belief or preference.
8. The Department, in consultation with the Board, may revise and update the examination at any time. The revising and updating of the examination may be performed by the personnel of the Department, or the Department may contract with a natural person or entity that specializes in the development of such examinations to revise and update the examination.
9. An applicant must submit to the Department a fee of $25 for each section of the examination that the applicant wishes to take or retake.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.565 Continuing education: Review and approval of courses; list of approved courses. (NRS 360.090, 361.221, 361.223)
1. The Board will review courses of continuing education and may recommend the approval of such a course by the Department if the Board determines that:
(a) After evaluating the contents of the course for correctness, applicability to appraisal for property tax purposes and relevance to current issues and trends concerning appraisal, the subject matter of the course is relevant to understanding and applying the standards established by the International Association of Assessing Officers or any other member organization of The Appraisal Foundation;
(b) The subject matter of the course is relevant to understanding:
(1) The application of the statutes and regulations of this State;
(2) The published appraisal and assessment standards of the Department;
(3) Laws relating to real estate, water and mining; or
(4) Administrative procedures;
(c) The subject matter of the course is relevant to understanding the concepts and applications of mass appraisal, including, without limitation, the application of technology such as geographic information systems (GIS) mapping and computer automated mass appraisal systems and the use of applied statistics in mass appraisal; or
(d) The subject matter of the course is relevant to understanding the concepts and applications of the appraisal of centrally assessed properties, including, without limitation, principles of accounting, allocation, apportionment, mining, unitary valuation, economics and finance.
2. A person who wishes to receive contact hours for a course of continuing education that has not been approved by the Department must apply to the Department for such approval before taking the course. The application must be in writing and include, without limitation, the name and address of the organization that is sponsoring the course, a list of the instructors of the course and their qualifications, and a syllabus of the course that indicates the course work and the books to be used in the course.
3. The Department will provide a list of all approved educational courses to the assessor of each county, and may provide the list to any other person who requests it in writing. The Department will update the list at least every 3 years.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003; A by R020-17, 1-30-2019)
NAC 361.567 Continuing education: Award of contact hours; documentation; waiver of and failure to satisfy requirements. (NRS 360.090, 361.221, 361.223)
1. The Department, in consultation with the Board, will determine the appropriate number of contact hours to be awarded for each approved education course. The Department will award the appropriate number of contact hours to persons who complete approved education courses and provide documentation to the Department as required by subsection 3. Contact hours may be awarded as follows:
(a) The Department may award the person the number of contact hours noted on the certificate of completion for the approved education course or on any other documentation of the approved education course provided by the person to the Department as required by subsection 3.
(b) If a person completes an approved education course offered by a university or community college, the Department may award the person 12 contact hours for each semester credit earned.
(c) If an approved education course includes an examination for the course and a person completes the instruction for the course but fails to pass the examination, the Department may award the person one-half of the contact hours that the person would have been awarded had he or she passed the examination. If the person did not complete the instruction for the course, the Department may award the person 4 contact hours for each full day of instruction that he or she completed if the person provides evidence satisfactory to the Department of his or her attendance at the course. If a person who is awarded contact hours pursuant to this paragraph subsequently passes the examination for the course, the Department may award the person a number of contact hours equal to the total contact hours approved for the course minus contact hours previously awarded to the person for the course pursuant to this paragraph.
(d) The Department will not award any contact hours for the completion of any portion of a course in real estate or the appraisal of property if the primary objective of the course is to prepare those persons taking the course to take and pass an examination for licensure in real estate or the appraisal of property.
(e) The Department will not award any contact hours for any portion of a course at a university or community college if the person taking the course does not earn a passing grade or withdraws from the course.
(f) When the Department determines the number of contact hours to be awarded for a course, the Department will not award any contact hours for any portion of the course during which the person taking the course takes an examination for the course.
(g) If a person instructs an approved education course, the Department may award the person a number of contact hours equal to the number of hours the person spent lecturing during the course or teaching as part of a group. The Department will not award contact hours:
(1) For any time the person spent on preparing for the course, grading students, or assisting students on projects or assignments outside of class; or
(2) For teaching the same course more than once in a 12-month period.
2. The number of contact hours awarded to a person who completes an approved education course must be the number of hours determined to be appropriate pursuant to subsection 1 as of the date on which the person completes the course, regardless of whether the content or length of the course changes after that date.
3. A person who holds an appraiser’s certificate and for whom the annual training requirement has not been waived pursuant to NRS 361.223 shall, on or before July 1 of each year, provide written documentation to the Department of each approved education course the person has taken, and the total contact hours he or she has earned, since July 1 of the previous year. The documentation for each course must include, without limitation, a certificate of attendance that shows the name of the person, the name of the course, the signature of the instructor of the course or the authorized representative of the organization that sponsored the course, and the dates of the person’s attendance at the course. A transcript of grades, if any, from the organization that sponsored the course must also be submitted. If the course was taken at a university or community college, a certified transcript may be submitted in lieu of a certificate of attendance.
4. If a person has:
(a) Not completed the 180 contact hours of accepted training described in paragraph (b) of subsection 3 of NRS 361.223, the Department, in consultation with the Board, may award contact hours to the person for an approved education course completed more than 5 years before the person provides to the Department the written documentation required by subsection 3. Any contact hours awarded pursuant to this paragraph must be applied to the 180 contact hours described in paragraph (b) of subsection 3 of NRS 361.223.
(b) Completed the 180 contact hours of accepted training described in paragraph (b) of subsection 3 of NRS 361.223, the Department will not award any contact hours for any course completed by the person:
(1) More than 3 years before he or she provides to the Department the written documentation required by subsection 3.
(2) During the 3-year period for which the person must satisfy the continuing education requirements set forth in NRS 361.223 if the person was awarded contact hours for the course for the immediately preceding 3-year period, unless the Department, in consultation with the Board, determines that the course materials have been significantly changed or updated.
5. To qualify for a waiver of the annual training requirement pursuant to paragraph (b) of subsection 3 of NRS 361.223, a person who holds an appraiser’s certificate must complete, as part of the 180 contact hours of accepted training required by that paragraph, at least 4 hours of training in ethical and professional standards.
6. If a person for whom the annual training requirement has been waived pursuant to NRS 361.223 accumulates more than 36 contact hours during any 3-year period thereafter, the excess contact hours will not be carried forward.
7. The Department will notify each person who holds an appraiser’s certificate and who has not satisfied the continuing education requirements for a fiscal year or a 3-year period, as applicable, that the appraiser’s certificate is subject to suspension or revocation pursuant to NRS 361.224. The notice will be sent by United States mail at least 60 days before the end of the fiscal year or 3-year period to the address of the person as listed in the files of the Department. If the Department does not receive a response to the notice within 30 days after mailing, the Department will forward the matter to the Board for consideration at its next regularly scheduled meeting. The Board will review the matter and provide its recommendation to the Department concerning whether the appraiser’s certificate should be suspended or revoked.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003; A by R020-17, 1-30-2019)
NAC 361.569 Continuing education: Maintenance and availability of records. (NRS 360.090, 361.221, 361.223)
1. The Department will maintain current records of continuing education for each person employed as an appraiser by this State or a political subdivision of this State.
2. The Department will maintain for not less than 10 years records of continuing education for each independent contractor and each person formerly employed as an appraiser by this State or a political subdivision of this State.
3. The records of continuing education for each person are confidential and must not be made available to any person other than the staff of the Department, the members of the Board or the employer of the person to whom the records pertain, unless the person to whom the records pertain has provided prior written authorization to the Department.
4. A person may request in writing a copy of the transcript of his or her records of continuing education. The Department will provide such a transcript at no charge.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.571 Suspension and reinstatement of appraiser’s certificate. (NRS 360.090, 361.221, 361.2226, 361.224)
1. The Department may suspend the appraiser’s certificate of a person under any of the following circumstances:
(a) Upon the recommendation of the Board if the person fails to satisfy the requirements for continuing education set forth in this chapter and NRS 361.223. The Department may, upon the recommendation of the Board, reinstate the appraiser’s certificate if the person subsequently satisfies the requirements for continuing education.
(b) Upon the recommendation of the Board if the person is an independent contractor and the person fails to renew his or her appraiser’s certificate annually as required by this chapter. The Department may, upon the recommendation of the Board, reinstate the appraiser’s certificate if the person subsequently satisfies the requirements for renewing his or her appraiser’s certificate.
(c) In accordance with the provisions of subsection 1 of NRS 361.2226. The Department may reinstate the appraiser’s certificate in accordance with the provisions of subsection 2 of NRS 361.2226.
2. The Board may not recommend the suspension of an appraiser’s certificate except after a meeting noticed in accordance with NRS 241.034.
3. A person whose appraiser’s certificate is suspended by the Department shall not render an opinion concerning the value of property but may collect data for use by certified appraisers to establish value.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.573 Revocation and reinstatement of appraiser’s certificate; reapplication after revocation. (NRS 360.090, 361.221, 361.224)
1. The Department may, upon the recommendation of the Board, revoke the appraiser’s certificate of a person under any of the following circumstances:
(a) The person fails to satisfy the requirements for continuing education set forth in this chapter and NRS 361.223. The Department may, upon the recommendation of the Board, reinstate the appraiser’s certificate if the person subsequently satisfies the requirements for continuing education and passes the appraiser’s certificate examination.
(b) The person is an independent contractor and the person fails to renew his or her appraiser’s certificate annually as required by this chapter. The Department may, upon the recommendation of the Board, reinstate the appraiser’s certificate if the person subsequently satisfies the requirements for renewing his or her appraiser’s certificate and passes the appraiser’s certificate examination.
(c) The person’s appraiser’s certificate has been suspended for a period of more than 1 year. The Department may, upon the recommendation of the Board, reinstate the appraiser’s certificate if the person passes the appraiser’s certificate examination.
(d) The person engages in unethical professional conduct, including, without limitation:
(1) Making oral or written public statements in the course of performing duties as an appraiser that are untrue or intended to mislead or deceive the public.
(2) Engaging in activities relating to the appraisal or assessment of property if the person has, or may reasonably be considered by the public as having, a conflict of interest with regard to that property.
(3) Accepting assignments relating to the appraisal or assessment of property which are contingent on or influenced by any condition that could impair the objectivity of the person.
(4) Failing to perform the duties of an appraiser in accordance with applicable statutes and regulations.
2. If the appraiser’s certificate of a person is revoked pursuant to paragraph (d) of subsection 1:
(a) The Department will not accept or review an application for an appraiser’s certificate from that person within 3 years after the date of the revocation.
(b) If the person files an application for an appraiser’s certificate after the expiration of the 3-year period, the applicant must:
(1) Provide the Department with the resume of the applicant which documents his or her education, his or her experience as an appraiser and any professional designations or certificates he or she holds, and which contains the names of at least two personal references. The Department may investigate the truthfulness of the information and representations set forth in the resume.
(2) Pass the appraiser’s certificate examination.
(c) The Board may recommend that the application for an appraiser’s certificate filed by the person pursuant to paragraph (b) be approved if the Board finds that the person has satisfied the requirements of paragraph (b) and that the person has not engaged in unethical professional conduct as described in paragraph (d) of subsection 1 at any time since the revocation of his or her appraiser’s certificate.
3. The Board may not recommend the revocation of an appraiser’s certificate except after a meeting noticed in accordance with NRS 241.034.
4. A person whose appraiser’s certificate is revoked by the Department shall not render an opinion concerning the value of property but may collect data for use by certified appraisers to establish value.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
NAC 361.575 Appeal of suspension or revocation of appraiser’s certificate. (NRS 360.090, 361.221) A decision of the Department to suspend or revoke an appraiser’s certificate may be appealed to the Commission pursuant to the provisions of NRS 360.245.
(Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)
EQUALIZATION OF ASSESSMENTS AMONG THE SEVERAL COUNTIES
NAC 361.580 Ratio study. (NRS 360.090, 361.333) Classes of properties sampled by the Department in conducting a ratio study pursuant to NRS 361.333 will be established and divided as the Department deems appropriate or as required by state or federal law. In addition to the criteria which NRS 361.333 specifies to be included in a ratio study, the Department will include the coefficient of dispersion.
[Tax Comm’n, Property Tax Reg. No. 12, eff. 12-8-76 (see also 1-10-77); A 10-15-81]
COLLECTION OF TAXES
Collection on Certain Vehicles
NAC 361.585 Placement of stickers on mobile homes and campers. (NRS 360.090, 361.5643) The sticker required pursuant to NRS 361.5643 must be affixed to:
1. A mobile home in such a way that the sticker is clearly visible from the street. If a mobile home is assessed as real property, the county assessor is not required to issue a sticker for it.
2. A slide-in camper or a camper shell in such a way that the sticker is clearly visible from the rear of the vehicle.
[Tax Comm’n, Property Tax Reg. No. 4, eff. 10-15-81]—(NAC A 10-10-83)—(Substituted in revision for NAC 361.600)
Delinquent Payments
NAC 361.590 Waiver or reduction of penalty or interest. (NRS 360.090, 360.419)
1. The Department may waive or reduce the penalty or interest for a delinquent payment of property tax which is imposed pursuant to NRS 361.483 and 361.535 if it finds that the proximate cause of the delinquent payment was:
(a) Circumstances completely beyond the control of the taxpayer who was required to make the payment, or the agent of the taxpayer;
(b) Justifiable neglect or justifiable inadvertence, and that the taxpayer making the payment has no history of habitually delinquent payments; or
(c) For other good cause shown.
2. Any application for waiver or reduction of the penalty or interest for delinquent payment must be filed in writing under oath with the Department within 60 days after the date the tax is due setting forth the circumstances which caused the delinquent payment. The Department shall provide a copy of the application to the county tax receiver who may, within 15 days, submit relevant information regarding the application to the Department. The Department will provide notice to the tax receiver and the taxpayer, or the agent of the taxpayer, of its determination. The notice will specify any action that the Department has directed must be taken.
3. In determining whether or not the circumstances which caused the delinquent payment in any particular case were completely beyond the control of the taxpayer required to make the payment, or the agent of the taxpayer, the Department shall consider only evidence which shows that the delinquent payment was proximately caused by fire, earthquake, flood or other acts of God, theft or similar causes not directly related to the actions of the taxpayer who was required to make the payment, or the agent of the taxpayer, whether intentional or not, and that the tax was paid as soon as reasonably possible thereafter. In these circumstances, all of the penalty or interest, or both, will be waived.
4. If the Department finds that the proximate cause of a delinquent payment was justifiable neglect or justifiable inadvertence, and that the tax was paid as soon as reasonably possible thereafter, the penalty or interest imposed for the delinquent payment will be reduced to a total of not more than 50 percent of the penalty or interest imposed.
5. In determining whether the proximate cause of the delinquent payment was for other good cause shown, the Department will require the taxpayer to submit, without limitation, evidence that the tax was paid as soon as reasonably possible and that the assessment of penalties and interest:
(a) Constitutes an extreme financial hardship; or
(b) Is extremely unfair or extremely inequitable under the circumstances.
6. As used in this section, “extreme financial hardship” means that the taxpayer who owes the tax has the present ability to pay the tax but payment of the penalties and interest will render the taxpayer insolvent.
(Added to NAC by Tax Comm’n, eff. 9-6-96)—(Substituted in revision for NAC 361.610)
Assignment of Tax Liens by County Treasurers
NAC 361.595 Definitions. (NRS 360.090, 360.250) As used in NAC 361.595 to 361.597, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.5952 to 361.5959, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5952 “Assignee” defined. (NRS 360.090, 360.250) “Assignee” has the meaning ascribed to it in NRS 361.7307.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5954 “Delinquent taxes” defined. (NRS 360.090, 360.250) “Delinquent taxes” means any real property taxes that remain unpaid after the date the last installment of the taxes becomes due pursuant to NRS 361.483.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5956 “Parcel number” defined. (NRS 360.090, 360.250) “Parcel number” means the parcel number assigned to a parcel of real property pursuant to NRS 361.189 by the county assessor of the county in which the property is located.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5958 “Tax lien” defined. (NRS 360.090, 360.250) “Tax lien” has the meaning ascribed to it in NRS 361.731.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5959 “Tax year” defined. (NRS 360.090, 360.250) “Tax year” means the 12-month period beginning on July 1 and ending on the next succeeding June 30.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.596 Affidavit of authorization. (NRS 360.090, 360.250)
1. An owner of a parcel of real property who wishes to authorize the county treasurer of the county in which the property is located to assign a tax lien on the property pursuant to NRS 361.7311, must file with the county treasurer an affidavit of authorization as provided in this section.
2. If the property is owned by more than one person:
(a) Each such person must join in the affidavit of authorization and the separate written agreement with the assignee required by subsection 2 of NRS 361.7311.
(b) The affidavit of authorization must designate one of the owners or an authorized agent of the owners to:
(1) Respond to any inquiry from the county treasurer relating to the assignment; and
(2) Receive any notice given by the county treasurer pursuant to NAC 361.5964.
3. The affidavit of authorization must be made on a form approved by the Commission, comply with the requirements of subsection 3 of NRS 247.110 and include:
(a) The name, mailing address, electronic mail address and daytime telephone number of the owner or an authorized agent of the owner;
(b) The name, mailing address, electronic mail address and daytime telephone number of the assignee;
(c) The legal description of the property and, if the description is by metes and bounds, the name and address of the entity or natural person who prepared the description;
(d) The street address, if applicable, and parcel number of the property;
(e) The total amount of all delinquent taxes assessed and owed against the property for any preceding tax year;
(f) If any installment of the taxes assessed against the property for the current tax year has not been paid, the total amount of the taxes assessed against the property for the current tax year, including, without limitation, the amount of any installment that has not yet become due;
(g) The amount of any applicable penalties, interest, fees and costs as of the date of the affidavit;
(h) If a certificate has been issued to the county treasurer with respect to the property pursuant to NRS 361.570, any other amount required to be paid pursuant to subsection 4 of that section and not otherwise described in paragraph (e), (f) or (g) of this subsection;
(i) Each preceding tax year for which delinquent taxes are owed and, if any installment of the taxes assessed against the property for the current tax year has not been paid, the current tax year;
(j) A statement that neither the owner nor the property is the subject of a pending proceeding in bankruptcy;
(k) A statement authorizing the assignee to pay:
(1) All delinquent taxes assessed and owed against the property for any preceding tax year;
(2) If any installment of the taxes assessed against the property for the current tax year has not been paid, the total amount of the taxes assessed against the property for the current tax year, including, without limitation, the amount of any installment that has not yet become due;
(3) Any applicable penalties, interest, fees and costs imposed by any local taxing entity or its agent for each tax year specified in the affidavit; and
(4) If a certificate has been issued to the county treasurer with respect to the property pursuant to NRS 361.570, any other amount required to be paid pursuant to subsection 4 of that section and not otherwise described in subparagraph (1), (2) or (3) of this paragraph;
(l) If the property is owned by more than one person, a statement that each such person has joined in the affidavit of authorization and the separate written agreement with the assignee required by subsection 2 of NRS 361.7311;
(m) A statement authorizing the county treasurer:
(1) To certify that payment has been tendered on behalf of the owner of:
(I) All delinquent taxes assessed and owed against the property for any preceding tax year;
(II) If any installment of the taxes assessed against the property for the current tax year has not been paid, the total amount of the taxes assessed against the property for the current tax year, including, without limitation, the amount of any installment that has not yet become due;
(III) Any applicable penalties, interest, fees and costs; and
(IV) If a certificate has been issued to the county treasurer with respect to the property pursuant to NRS 361.570, any other amount required to be paid pursuant to subsection 4 of that section and not otherwise described in sub-subparagraph (I), (II) or (III) of this subparagraph; and
(2) To assign the tax lien on the property to the assignee; and
(n) The signature of the owner, acknowledged before a notary public.
4. The affidavit of authorization must be accompanied by a copy of the separate written agreement between the owner and the assignee required by subsection 2 of NRS 361.7311.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5962 Duties of county treasurer upon receipt of affidavit of authorization; affidavit of compliance; affidavit of exemption. (NRS 360.090, 360.250)
1. Upon receipt of an affidavit of authorization pursuant to NAC 361.596, the county treasurer shall confirm:
(a) The last known owner or owners of record of the parcel of real property for which the affidavit is made, by inspecting:
(1) The records of the county assessor of the county in which the property is located; or
(2) Any other recorded document provided by the owner and acceptable to the county assessor;
(b) The parcel number of the property and whether the property is on the secured or unsecured tax roll, by inspecting the records of the county assessor;
(c) Whether any taxes assessed against the property or any applicable penalties, interest, fees or costs are owed for a tax year not specified in the affidavit of authorization;
(d) That the assignee has complied with the bonding requirements of NRS 361.7314 or is exempt from those requirements; and
(e) That the assignee has tendered the full amount of:
(1) All delinquent taxes assessed and owed against the property for any preceding tax year;
(2) If any installment of the taxes assessed against the property for the current tax year has not been paid, the total amount of the taxes assessed against the property for the current tax year, including, without limitation, the amount of any installment that has not yet become due;
(3) Any applicable penalties, interest, fees and costs; and
(4) If a certificate has been issued to the county treasurer with respect to the property pursuant to NRS 361.570, any other amount required to be paid pursuant to subsection 4 of that section and not otherwise described in subparagraph (1), (2) or (3) of this paragraph.
2. For any assignee who is not exempt from the bonding requirements of NRS 361.7314, the county treasurer may consider any reliable evidence that the assignee has complied with those requirements, including, without limitation:
(a) A copy of the bond posted by the assignee, certified by the surety or custodian of the bond to be a true and correct copy of the bond currently in force; or
(b) An affidavit of the assignee or an authorized representative of the assignee, filed with the county treasurer and attesting to compliance by the assignee with NRS 361.7314.
3. An affidavit of compliance filed pursuant to subsection 2 must be made on a form approved by the Commission, comply with the requirements of subsection 3 of NRS 247.110 and include:
(a) The name, mailing address and electronic mail address of the assignee;
(b) If the affidavit is made by an authorized representative of the assignee, the name and job title of the affiant;
(c) A statement that the affiant is of sound mind, competent to make the affidavit, and that the statements in the affidavit are based on the affiant’s personal knowledge of the records of the assignee;
(d) A statement that the assignee has posted and maintains a bond meeting the requirements of NRS 361.7314;
(e) A statement that true and correct copies of the bond and the annual statement most recently filed with the Secretary of State pursuant to NRS 361.7314 are attached to the affidavit; and
(f) The signature of the affiant, acknowledged before a notary public.
4. An affidavit of compliance filed pursuant to subsection 2 must be accompanied by copies of the bond posted by the assignee and the annual statement most recently filed with the Secretary of State pursuant to NRS 361.7314.
5. An assignee who claims to be exempt from the requirements of NRS 361.7314 because of a familial relationship with the owner must make and file with the county treasurer an affidavit of exemption. The affidavit of exemption must be made on a form approved by the Commission, comply with the requirements of subsection 3 of NRS 247.110 and include:
(a) The name, mailing address, electronic mail address and daytime telephone number of the assignee;
(b) A statement that the assignee is exempt from the requirements of NRS 361.7314 because of the assignee’s familial relationship with the owner;
(c) A statement of the nature of the relationship, showing that the assignee is related to the owner within the third degree of consanguinity;
(d) A statement that the assignee is of sound mind, competent to make the affidavit and that the statements in the affidavit are based on personal knowledge; and
(e) The signature of the assignee, acknowledged before a notary public.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5964 Denial of certificate of assignment. (NRS 360.090, 360.250)
1. The county treasurer shall not issue a certificate of assignment of a tax lien if the county treasurer:
(a) Believes that any information included in the affidavit of authorization filed pursuant to NAC 361.596 is inaccurate or incomplete;
(b) Determines that the property is on the unsecured tax roll;
(c) Except as otherwise ordered by the federal bankruptcy court in which the proceeding is pending, determines that an owner of the property or the property itself is the subject of a pending proceeding in bankruptcy;
(d) Determines that any taxes assessed against the property or any applicable penalties, interest, fees or costs are owed for a tax year not specified in the affidavit of authorization;
(e) Determines that the assignee has failed to tender any part of the amount required to be tendered pursuant to NRS 361.7312 and NAC 361.5962; or
(f) Determines that an owner of the property or the assignee has not complied with any requirement of:
(1) NRS 361.7303 to 361.733, inclusive; or
(2) NAC 361.595 to 361.597, inclusive.
2. If, pursuant to subsection 1, the county treasurer is unable to issue a certificate of assignment, he or she shall give written notice of that fact to the assignee and:
(a) The owner of the property; or
(b) If the provisions of subsection 2 of NAC 361.596 are applicable, the owner or authorized agent designated pursuant to that subsection.
3. The notice given pursuant to subsection 2 must:
(a) State the reason for the inability of the county treasurer to issue the certificate;
(b) Describe any additional document or information or state the amount of any additional payment required to approve the assignment and state the date by which, pursuant to subsection 4, the document, information or payment must be received by the county treasurer; and
(c) Be sent by first-class mail to the owner and assignee at the mailing addresses set forth in the affidavit of authorization.
4. If notice is given by the county treasurer as provided in subsections 2 and 3 and the county treasurer does not, within 30 days after the date of the notice, receive from the owner or assignee:
(a) The additional document, information or payment required to approve the assignment; or
(b) Any other evidence sufficient to show that the assignment complies with the requirements of NRS 361.7303 to 361.733, inclusive, and NAC 361.595 to 361.597, inclusive,
Ê as applicable, the assignment shall be deemed to be denied. The county treasurer shall give written notice of the denial in the manner provided for a notice given pursuant to subsection 2 and return to the assignee the documents received from the assignee and the payment tendered by the assignee.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5966 Issuance of certificate of assignment. (NRS 360.090, 360.250)
1. If the assignment complies with the requirements of NRS 361.7303 to 361.733, inclusive, and NAC 361.595 to 361.597, inclusive, the county treasurer shall promptly issue a certificate of assignment of the tax lien to the assignee.
2. The certificate of assignment must be on a form approved by the Commission and must include, in addition to the information required by NRS 361.7318:
(a) The name, mailing address and electronic mail address of the assignee;
(b) The parcel number of the property;
(c) The street address of the property, if applicable;
(d) The full amount of:
(1) All delinquent taxes assessed and owed against the property for any preceding tax year;
(2) If any installment of the taxes assessed against the property for the current tax year has not been paid, the total amount of the taxes assessed against the property for the current tax year, including, without limitation, the amount of any installment that has not yet become due;
(3) Any applicable penalties, interest, fees and costs; and
(4) If a certificate has been issued to the county treasurer with respect to the property pursuant to NRS 361.570, any other amount required to be paid pursuant to subsection 4 of that section and not otherwise described in subparagraph (1), (2) or (3) of this paragraph;
(e) A statement certifying that the assignee has paid the amount described in paragraph (d);
(f) A statement that the county treasurer has duly received:
(1) An affidavit of authorization made by the owner of the property;
(2) A copy of the separate written agreement between the owner and the assignee; and
(3) A copy of the bond posted by the assignee, affidavit of compliance or affidavit of exemption, as applicable,
Ê and that a true and correct copy of each document so received is attached as an exhibit to the certificate; and
(g) A statement that in consideration of the receipt of the payment in full of the amount described in paragraph (d), the tax lien is assigned and transferred to the assignee.
3. A true and correct copy of each of the documents described in paragraph (f) of subsection 2 and received by the county treasurer must be attached as an exhibit to the certificate.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.5968 Effect of certificate of assignment. (NRS 360.090, 360.250) A certificate of assignment of a tax lien does not:
1. Entitle the assignee to the assignment of a tax lien for any tax year not enumerated in the affidavit of authorization;
2. Change the date upon which any unpaid taxes become delinquent; or
3. If taxes assessed against the property or any applicable penalties, interest, fees and costs are not paid:
(a) Affect the duty of the county treasurer to:
(1) Mail notice of the delinquency pursuant to NRS 361.5648; or
(2) Issue a certificate to the county treasurer as trustee pursuant to NRS 361.570; or
(b) Change the period of redemption provided by NRS 361.570.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
NAC 361.597 Release of tax lien after assignment. (NRS 360.090, 360.250) A release of a tax lien issued by an assignee to the owner of the property must be made on a form approved by the Commission, comply with the requirements of subsection 3 of NRS 247.110 and include, in addition to the information required by NRS 361.7326:
1. The name and mailing address of the assignee;
2. The name and mailing address of the owner;
3. The date of issuance of the release;
4. The street address of the property, if applicable;
5. The name and address of the entity or natural person who prepared the legal description of the property, if the description is by metes and bounds;
6. A statement that all right, title and interest of the assignee in the tax lien are released; and
7. The signature of the assignee or a representative of the assignee, acknowledged before a notary public.
(Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)
PARTIAL ABATEMENT OF TAXES
General Abatement, Primary Residential Abatement and Residential Rental Abatement
NAC 361.601 Definitions. (NRS 360.090) As used in NAC 361.601 to 361.609, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.6015 to 361.6045, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6015 “Abatement percentage” defined. (NRS 360.090) “Abatement percentage” has the meaning ascribed to it in NRS 361.4711.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.602 “County tax receiver” defined. (NRS 360.090) “County tax receiver” means the county official who collects property taxes.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6025 “General abatement” defined. (NRS 360.090) “General abatement” means a partial abatement of property taxes pursuant to NRS 361.4722.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.603 “Primary residence of the owner” defined. (NRS 360.090) “Primary residence of the owner” has the meaning ascribed to it in NRS 361.4723.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6035 “Primary residential abatement” defined. (NRS 360.090) “Primary residential abatement” means a partial abatement of property taxes pursuant to NRS 361.4723.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.604 “Residential rental abatement” defined. (NRS 360.090) “Residential rental abatement” means a partial abatement of property taxes pursuant to NRS 361.4724.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6045 “Single-family residence” defined. (NRS 360.090) “Single-family residence” has the meaning ascribed to it in NRS 361.4723.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.605 General responsibilities of Department. (NRS 360.090, 361.4722)
1. The Department shall:
(a) Determine the appropriate abatement percentage for the application of a general abatement in each county each year and provide that information to the appropriate county tax receiver.
(b) Determine whether any property of an interstate or intercounty nature is:
(1) Eligible for a general abatement; or
(2) Ineligible for a general abatement,
Ê and calculate and apply the appropriate amount of any general abatement to which the property is determined to be eligible.
(c) Determine whether any property valued pursuant to paragraph (b) of subsection 1 of NRS 362.100 is:
(1) Eligible for a general abatement; or
(2) Ineligible for a general abatement,
Ê and provide that information to the county assessor of the county in which the property is located.
2. If the Department determines that:
(a) Any property of an interstate or intercounty nature has been erroneously designated as eligible for a general abatement, the Department may appropriately revise that designation and transmit an appropriately revised tax bill to the taxpayer.
(b) Any property valued pursuant to paragraph (b) of subsection 1 of NRS 362.100 has been erroneously designated as eligible for a general abatement, the Department may appropriately revise that designation and the county tax receiver may transmit an appropriately revised tax bill to the taxpayer.
Ê If a change in the designation of any property pursuant to this subsection results in an increase in the liability of the taxpayer for property taxes, the Department shall inform the taxpayer of the change in the designation of the property and the reasons for that change.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6055 General responsibilities of county assessors and county tax receivers. (NRS 360.090, 361.4722, 361.4723, 361.4724)
1. A county assessor shall:
(a) Receive claims for primary residential abatements and residential rental abatements and identify each parcel or other taxable unit of property for which such a claim is received; and
(b) Before delivering the tax roll to the county tax receiver each year, determine whether each parcel or other taxable unit of property designated on the tax roll is:
(1) Eligible for a primary residential abatement;
(2) Eligible for a residential rental abatement;
(3) Eligible for a general abatement; or
(4) Ineligible for any of those partial abatements of property taxes.
2. A county assessor:
(a) Except as otherwise provided in NRS 361.773, may correct the tax roll not later than June 30 of each year to indicate that a parcel or other taxable unit of property is eligible for a primary residential abatement, a residential rental abatement or a general abatement for that year.
(b) Shall notify the county tax receiver of each claim for a primary residential abatement or residential rental abatement for the current year which the county assessor receives after the tax roll has been delivered to the county tax receiver. The county tax receiver shall process such a claim for a primary residential abatement in accordance with NRS 361.773.
3. A county tax receiver shall calculate and apply the appropriate amount of any:
(a) Primary residential abatement or residential rental abatement to which a parcel or other taxable unit of property is determined to be eligible; and
(b) General abatement, in accordance with the applicable abatement percentage provided by the Department pursuant to NAC 361.605, to which a parcel or other taxable unit of property is determined to be eligible.
4. If a county assessor or county tax receiver determines that a parcel or other taxable unit of property has been erroneously designated as eligible for a primary residential abatement, a residential rental abatement or a general abatement, the county assessor may appropriately revise that designation and the county tax receiver may transmit an appropriately revised tax bill to the taxpayer. If a change in the designation of any property pursuant to this subsection results in an increase in the liability of the taxpayer for property taxes, the county assessor shall inform the taxpayer of the change in the designation of the property and the reasons for that change.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.606 Claim for primary residential abatement: Form and contents; execution; action by county assessor; change in ownership or occupation of property. (NRS 360.090, 361.4722, 361.4723)
1. A claim for a primary residential abatement must be:
(a) Submitted on a form provided by the county assessor of the county in which the property is located; and
(b) Signed by:
(1) Any owner of record of the property;
(2) Any person of lawful age who is authorized by an executed power of attorney to sign the claim on behalf of an owner of record of the property;
(3) The legal guardian or conservator of an owner of record of the property; or
(4) The executor or administrator of the estate of an owner of record of the property.
2. The form for claiming a primary residential abatement may require the claimant to state that:
(a) The claimant is the owner of the property;
(b) The property is a single-family residence;
(c) The property is the primary residence of the owner of the property, exclusive of any other residence in Nevada;
(d) The property is not rented, leased or otherwise made available for exclusive occupancy by any person other than the owner of the property and members of the family of the owner of the property;
(e) The claimant agrees to notify the county assessor if the property is no longer used as:
(1) A single-family residence; or
(2) The primary residence of the owner of the property, exclusive of any other residence in Nevada; and
(f) The claim is affirmed and certified by the owner of the property under any penalties provided by law.
3. The county assessor shall:
(a) If the county assessor determines it to be necessary, verify whether the property is eligible for a primary residential abatement.
(b) If the county assessor determines that the property is not eligible for a primary residential abatement, determine whether the property is eligible for a general abatement.
4. A claim for a primary residential abatement may be amended to reflect changes in the ownership or occupation of the property. If such a change occurs after July 1, the change must not be indicated on either the secured or unsecured tax roll, as applicable, until the next fiscal year.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6065 Eligibility of certain property for primary residential abatement; treatment of certain property used for multiple purposes. (NRS 360.090, 361.4722, 361.4723, 361.4724)
1. For the purpose of determining the eligibility of property for a primary residential abatement:
(a) A single-family residence which is the primary residence of the owner shall be deemed to include any buildings or other structures that are appurtenant to that residence, including, without limitation, a detached garage, if the building or other structure:
(1) Is of a type which is typically associated with a single-family residence;
(2) Exists for the use, enjoyment and benefit of the occupants of the residence;
(3) Is not used in furtherance of any business, except for the operation of a home business as provided in paragraph (a) of subsection 5 of NRS 361.4723; and
(4) Is not rented, leased or otherwise made available for exclusive occupancy by any person other than the owner of the residence and members of the family of the owner of the residence.
(b) If a single-family residence which is the primary residence of the owner, including all appurtenant buildings and other structures described in paragraph (a), is located on:
(1) More than one parcel of property; or
(2) One or more parcels of property otherwise used for agricultural purposes,
Ê that residence may be treated as a separate taxable unit.
2. If a taxable unit of real property contains both:
(a) A single-family residence which is the primary residence of the owner; and
(b) Other property used for agricultural, commercial or other purposes,
Ê the county assessor may determine the separate portions of that taxable unit which are respectively described in paragraphs (a) and (b), and apply to each such portion any appropriate partial abatement from property taxes.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.607 Residential rental abatement: Duties of Department, county assessor and owner of property; filing of claim and affidavit; eligibility of property. (NRS 360.090, 361.4724)
1. A county assessor shall annually mail to the owner of each residential rental dwelling in the county a written notice of the right to claim a residential rental abatement.
2. A claim for a residential rental abatement must be:
(a) Filed annually with the county assessor of the county in which the property is located not later than June 15 of each year; and
(b) Accompanied by an affidavit which states:
(1) That the amount of rent collected from each of the tenants of the property is equal to or less than the applicable fair market rent published by the United States Department of Housing and Urban Development. For the purpose of determining the applicable fair market rent, a studio apartment must be considered to be a single room.
(2) The greatest amount of rent charged a tenant of the property for the period from April 1 of the year immediately preceding the lien date for the current year until March 31 of the current year.
3. The Department shall annually notify each county assessor of:
(a) The amounts of the applicable fair market rents for the current year, as published for March 31 of that year by the Department of Housing and Urban Development, excluding the amounts of utility allowances.
(b) The amounts of applicable utility allowances, based upon the information reported by the appropriate Nevada regional housing authority to the Department of Housing and Urban Development.
4. For the purpose of determining the eligibility of property for a residential rental abatement, the county assessor shall compare:
(a) The greatest amount of rent charged a tenant of the property for the period from April 1 of the year immediately preceding the lien date for the current year until March 31 of the current year, excluding any amount paid for utilities; and
(b) The amount of the applicable fair market rent for the current year, as provided by the Department pursuant to subsection 3, excluding the amount of the applicable utility allowance. For the purposes of this section, the county assessor shall use as the applicable utility allowance:
(1) The typical utility allowance for the pertinent category of property, as provided by the Department pursuant to subsection 3; or
(2) A utility allowance calculated by the county assessor for the specific property from the information reported by the appropriate Nevada regional housing authority to the Department of Housing and Urban Development.
5. A residential rental dwelling is not eligible for a residential rental abatement if the rent received for any rental unit of the property for the period from April 1 of the year immediately preceding the lien date for the current year until March 31 of the current year, excluding any amount included in the rent for the payment of utilities, exceeds the amount of the applicable fair market rent for the current year, excluding the amount of the applicable utility allowance.
6. The owner of any property for which a claim for a residential rental abatement is filed:
(a) Has the burden of proving that the property is not transient lodging; and
(b) Must:
(1) Provide to the county assessor such information as the county assessor requires to determine the eligibility of the property for a residential rental abatement and to ascertain the continuing eligibility of the property for a residential rental abatement; and
(2) Maintain accurate records in support of that information and allow the county assessor to audit those records at any time.
7. For the purposes of this section and NRS 361.4724, the Commission interprets the term:
(a) “Residential rental dwelling” to mean a residential dwelling:
(1) For which consideration is paid for its temporary use and occupancy; or
(2) Which is occupied by a member of the family of the owner of the dwelling for no consideration.
(b) “Transient lodging” to:
(1) Mean, except as otherwise provided in subparagraph (2), any facility or structure, or any portion thereof, which is occupied or intended or designed for occupancy and which is held out for use by transient guests who pay rent for the temporary privilege of dwelling, lodging or sleeping therein. For the purposes of this subparagraph, “facility or structure” includes any hotel, resort hotel, motel, bed and breakfast, lodging house, time-share project, vacation home, apartment house, recreational vehicle park or campground, and any similar facility or structure.
(2) Exclude any:
(I) Hospital, sanitarium, medical clinic, convalescent home, nursing home, home for aged persons, foster home or similar facility operated for the care or treatment of human beings;
(II) Asylum, jail, prison, orphanage or other facility in which human beings are detained and housed under legal restraint; or
(III) Housing owned or controlled by an educational institution and used exclusively to house students, faculty or other employees of the institution.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6075 General abatement: Taxable unit of centrally assessed property; ineligible property of interstate or intercounty company. (NRS 360.090, 361.4722)
1. For the purposes of NRS 361.4722, the value of any centrally assessed property which is allocated and apportioned to a taxing district shall be deemed to constitute a taxable unit of real or personal property in that taxing district.
2. Property of an interstate or intercounty company valued pursuant to NRS 361.320 which is not eligible for a general abatement for the current year includes, without limitation:
(a) That portion of the unit valuation of such property for which there was no allocation or apportionment within Nevada for the immediately preceding year;
(b) New property placed on the unsecured tax roll and classified as construction work in progress; and
(c) That portion of the unit valuation of such property for which there is an increase in the cost indicator of value from the immediately preceding year, unless it has already been reported to the Department as construction work in progress and the taxpayer certifies that the pertinent capital expenditures will be reported as part of construction work in progress before being transferred to the accounting records of the company for plant in service.
3. For the purposes of this section, “construction work in progress” has the meaning ascribed to it in NAC 361.258.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.608 Calculation of amount of abatement: Applicable amount of tax levy for immediately preceding year and current year. (NRS 360.090, 361.4722, 361.4723, 361.4724) For the purpose of calculating the amount of any general abatement, primary residential abatement or residential rental abatement for the current year, the amount of the tax levy that would have resulted for the immediately preceding year without the application of any other tax abatements or exemptions must be compared to the tax levy that would result for the current year without the application of any other tax abatements or exemptions.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.6085 Calculation of amount of abatement: Property which escaped taxation; effect of adjustment to valuation of property to correct certain errors. (NRS 360.090, 361.4722, 361.4723, 361.4724) For the purposes of NRS 361.4722, 361.4723 and 361.4724:
1. If any property is found pursuant to NRS 361.325, 361.767 or 361.769 to have partially or entirely escaped taxation for a fiscal year:
(a) The property shall be deemed to be property for which no assessed valuation was separately established for the fiscal year immediately preceding that fiscal year; and
(b) Any general abatement, primary residential abatement or residential rental abatement for which the property is eligible for each fiscal year following the fiscal year for which the property escaped taxation must be calculated as if the property had been on the tax roll for the fiscal year for which the property escaped taxation.
2. If the valuation of any property is adjusted pursuant to NRS 361.765 or 361.768 to correct a clerical, typographical, mathematical or factual error, any general abatement, primary residential abatement or residential rental abatement for which the property is eligible for each fiscal year following the fiscal year for which that correction of the valuation of the property is made must be calculated and, if necessary, adjusted in conformity with the correct valuation of the property.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
NAC 361.609 Summary reports of property taxes billed on behalf of each taxing entity. (NRS 360.090) A county tax receiver shall, not later than:
1. September 1 of each year, submit to the Department and each taxing entity a summary report of the total amount of property taxes billed on behalf of each taxing entity for the current tax year for property on the secured tax roll. The report must separately state for each taxing entity:
(a) The total number of parcels or other taxable units of property for which the property taxes were billed;
(b) The total assessed value of the property for which the property taxes were billed;
(c) The total amount of the property taxes that would have been billed if not for the application of any general abatement, primary residential abatement or residential rental abatement;
(d) The total amount of any reduction in billable property taxes as a result of the application of any general abatement, primary residential abatement or residential rental abatement;
(e) The total amount of any reduction in billable property taxes as a result of the application of any exemptions from taxation other than a general abatement, a primary residential abatement or a residential rental abatement;
(f) The total amount of any taxes billed pursuant to NRS 361.4725;
(g) The total amount of any taxes exempted from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; and
(h) The total amount of property taxes actually billed.
2. June 1 of each year, submit to the Department and each taxing entity a summary report of the total amount of property taxes billed on behalf of each taxing entity for the current tax year for property on the unsecured tax roll. The report must separately state for each taxing entity:
(a) The total assessed value of the property for which the property taxes were billed;
(b) The total amount of the property taxes that would have been billed if not for the application of any general abatement, primary residential abatement or residential rental abatement;
(c) The total amount of any reduction in billable property taxes as a result of the application of any general abatement, primary residential abatement or residential rental abatement;
(d) The total amount of any reduction in billable property taxes as a result of the application of any exemptions from taxation other than a general abatement, a primary residential abatement or a residential rental abatement;
(e) The total amount of any taxes billed pursuant to NRS 361.4725;
(f) The total amount of any taxes exempted from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; and
(g) The total amount of property taxes actually billed.
(Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)
Abatement for Remainder Parcels
NAC 361.61002 Definitions. (NRS 360.090, 361.4722) As used in NAC 361.61002 to 361.61038, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.61004 to 361.6103, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61004 “Abatement percentage” defined. (NRS 360.090, 361.4722) “Abatement percentage” means the percentage determined pursuant to paragraph (b) of subsection 2 of NRS 361.4722.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61006 “Agricultural use” defined. (NRS 360.090, 361.4722) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61008 “Commercial or industrial use” defined. (NRS 360.090, 361.4722) “Commercial or industrial use” means:
1. Any use conducted primarily for profit, except for any agricultural use, open-space use, residential use, institutional use, recreational use or use as vacant land; or
2. Any other use that does not constitute any agricultural use, open-space use, residential use, institutional use, recreational use or use as vacant land.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007; A by R021-17, 1-30-2019)
NAC 361.6101 “Current year” defined. (NRS 360.090, 361.4722) “Current year” means the fiscal year for which a determination of the application of the partial abatement of taxes for any new parcel is being made.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61012 “Institutional use” defined. (NRS 360.090, 361.4722) “Institutional use” means any civic, charitable or religious use, including, without limitation, use as a church, cemetery or hospital.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61014 “New parcel” defined. (NRS 360.090, 361.4722) “New parcel” means a parcel for which a new or different assessor parcel number has been assigned from the prior year.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007; A by R021-17, 1-30-2019)
NAC 361.61016 “New parcel for development” defined. (NRS 360.090, 361.4722) “New parcel for development” means each new parcel which results from the division of any previously existing parcel or parcels, the combination of any previously existing parcels, or any change in the configuration of any parcels or of lot size or lot boundaries, by means of a parcel map, subdivision map, certificate of land division, long-term lease, action of any governmental entity or any other means.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007; A by R021-17, 1-30-2019)
NAC 361.61018 “Open-space use” defined. (NRS 360.090, 361.4722) “Open-space use” has the meaning ascribed to it in NRS 361A.050.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.6102 “Partial abatement” defined. (NRS 360.090, 361.4722) “Partial abatement” means the partial abatement of taxes provided pursuant to subsection 2 of NRS 361.4722.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61022 “Prior year” defined. (NRS 360.090, 361.4722) “Prior year” means the fiscal year immediately preceding the current year.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61024 “Recreational use” defined. (NRS 360.090, 361.4722) “Recreational use” means any active or passive recreational use, including, without limitation, use as a trail, park, community garden, playground or athletic field.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61026 “Remainder parcel” defined. (NRS 360.090, 361.4722) “Remainder parcel” means each new parcel which is eligible for the partial abatement in the current year.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61028 “Residential use” defined. (NRS 360.090, 361.4722) “Residential use” means use as a dwelling or for personal, family or household purposes, whether rented to particular persons or not, including, without limitation, use as a single-family detached housing unit, townhouse, condominium unit, mobile home or multifamily unit. The term includes the use of lots in a residential subdivision for which a final map has been recorded and on which residential improvements will be constructed, but does not include the use of parcels which are not yet divided into individual residential lots by the filing of a final map.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.6103 “Vacant land” defined. (NRS 360.090, 361.4722) “Vacant land” means land which does not have improvements sufficient to determine a residential use, commercial or industrial use, institutional use or recreational use.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007; A by R021-17, 1-30-2019)
NAC 361.61032 Scope and purpose. (NRS 360.090, 361.4722) The provisions of NAC 361.61002 to 361.61038, inclusive, set forth the methodology that must be followed to carry out the provisions of subsection 2 of NRS 361.4722 in evaluating each new parcel for the purposes of applying the partial abatement of taxes provided by that subsection.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61034 New parcels for development: Evaluation; determination of change in use; effect of determination. (NRS 360.090, 361.4722)
1. Each new parcel for development must be separately evaluated to determine whether there has been any change in the use of the property that comprises the parcel.
2. A determination that there is a change in the use of the property must be based on a finding that:
(a) The property was being used as vacant land as of the commencement of the prior year and:
(1) As the result of the recording of a subdivision map creating individual lots for residential development, the property is held for residential use as of the commencement of the current year;
(2) As the result of the recording of a subdivision map creating a new commercial or industrial subdivision or the creation of new parcels within such a subdivision, the property is held for commercial or industrial use as of the commencement of the current year; or
(3) As the result of new construction on the parcel sufficient to allow for an identification of the use of the property, the property is in agricultural use, open-space use, residential use, commercial or industrial use, institutional use or recreational use as of the commencement of the current year; or
(b) The use of the property as of the commencement of the current year for agricultural use, open-space use, residential use, commercial or industrial use, institutional use or recreational use is different from the use of the property as of the commencement of the prior year.
3. For the purpose of determining whether there has been a change in the use of the property that comprises a new parcel for development that was created from an existing parcel that had more than one use in the prior year, the use of the portion of the existing parcel from which the new parcel for development was created must be determined to be the use of the property that comprises the new parcel for development in the current year.
4. If the use of the property:
(a) Has not changed, the parcel is a remainder parcel.
(b) Has changed, the parcel is a new parcel for development which is not eligible for the partial abatement of taxes provided by subsection 2 of NRS 361.4722.
5. The provisions of this section apply to the determination of whether a new parcel or other taxable unit of property is a remainder parcel for the tax year beginning on July 1, 2015, and each subsequent tax year.
6. As used in this section, “use of the property” means the principal use of the property for one of the following purposes:
(a) Agricultural use;
(b) Open-space use;
(c) Residential use;
(d) Commercial or industrial use;
(e) Institutional use;
(f) Recreational use; or
(g) Use as vacant land.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007; A by R021-17, 1-30-2019)
NAC 361.61036 Calculation of amount of abatement and maximum amount of property taxes. (NRS 360.090, 361.4722)
1. The partial abatement for a remainder parcel must be calculated as follows:
(a) Determine the amount of net property taxes attributable to the land area of and any improvements to the remainder parcel for the prior year as provided in NAC 361.61038.
(b) Multiply the net property taxes determined in accordance with subsection 1 by the abatement percentage applicable to the remainder parcel for the current year.
(c) Add the amounts determined pursuant to paragraphs (a) and (b). If the sum is:
(1) Less than the amount of taxes that would have been assessed on the remainder parcel for the current year without the abatement, the difference constitutes the amount of the partial abatement for the remainder parcel for the current year.
(2) Greater than or equal to the amount of taxes that would have been assessed on the remainder parcel for the current year without the abatement, then there is no partial abatement for the remainder parcel for the current year.
2. The maximum amount of property taxes which may be levied on a remainder parcel for the current year must be calculated as follows:
(a) Determine the amount of property taxes to be added to the tax roll in the current year attributable to:
(1) An incremental change in land value resulting from a change in the actual or authorized use of the remainder parcel; or
(2) A new improvement to the remainder parcel,
Ê that would not have been included in the calculation of the assessed value of the remainder parcel for the prior year had a separate valuation for the remainder parcel been established in the prior year.
(b) Add the amounts determined pursuant to paragraph (a) and paragraphs (a) and (b) of subsection 1 to determine that maximum amount.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)
NAC 361.61038 Determination of amount of net property taxes attributable to remainder parcel for prior year; appeal of determination. (NRS 360.090, 361.4722, 361.4734)
1. Except as otherwise provided in subsection 2, the amount of net property taxes attributable to the land area of and any improvements to a remainder parcel for the prior year must be determined as follows:
(a) Identify each of the parcels which contained the land area of the remainder parcel in the prior year.
(b) Determine the taxable value of each of the parcels identified in paragraph (a) for the prior year.
(c) Determine the total amount of taxes levied, or which would have been levied but for any exemptions from taxation, in the prior year on each of the parcels identified in paragraph (a) for the prior year.
(d) Calculate the effective tax rate for the remainder parcel for the prior year by dividing the total amount of taxes determined pursuant to paragraph (c) by the total of the taxable values identified pursuant to paragraph (b).
(e) Determine the taxable value that the remainder parcel would have had if a taxable value for the remainder parcel had been separately established for the prior year based upon all the assumptions, costs, values, calculations and other factors and considerations that would have been used for the valuation of that property for that prior fiscal year.
(f) The amount of net property taxes attributable to the remainder parcel for the prior year is the amount obtained by multiplying the effective tax rate for the remainder parcel calculated pursuant to paragraph (d) by the taxable value of the remainder parcel determined pursuant to paragraph (e).
2. The owner of a remainder parcel may appeal to the Nevada Tax Commission pursuant to NRS 361.4734 and any regulations adopted to carry out that section to show that the method prescribed in subsection 1 produces an inequitable result. Pursuant to such an appeal, the Nevada Tax Commission may use an alternative method that provides an equitable result.
3. As used in this section, “total amount of taxes levied” means the lower of the total amount of property taxes assessed to a parcel or the total amount of property taxes assessed as the result of a final decision on an appeal, less the amount of any partial abatement of property taxes applied to that parcel pursuant to NRS 361.4722, 361.4723 or 361.4724.
(Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007; A by R021-17, 1-30-2019)
Improvement to or Change in Actual or Authorized Use of Property
NAC 361.6104 Definitions. (NRS 360.090, 361.4722, 361.4723, 361.4724) As used in NAC 361.6104 to 361.61049, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.610405 to 361.61046, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610405 “Agricultural use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61041 “Commercial use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Commercial use” means the current employment of property for any use other than agricultural use, industrial use, institutional use, mining use, multifamily residential use, open-space use, recreational use, single-family residential use or use as vacant land.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610415 “Industrial use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Industrial use” means the current employment of property for the purpose of:
1. Manufacturing, assembly, processing, fabricating, machining or warehousing; or
2. Extracting sand and gravel, unless the net proceeds thereof are subject to taxation pursuant to chapter 362 of NRS.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61042 “Institutional use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Institutional use” has the meaning ascribed to it in NAC 361.61012.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610425 “Mining use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Mining use” means the current employment of property for the development or extraction of any mineral on or beneath the surface of land, including metal ores, oil, gas and other hydrocarbons, and geothermal resources.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61043 “Multifamily residential use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Multifamily residential use” means the current employment of property for any residential purpose other than single-family residential use.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610435 “On-site improvement” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “On-site improvement” means a physical change to the land area of any property which makes the site ready for its intended use or development, such as grading or landscaping or the addition of fencing, curbing, paving or walkways. The term does not include:
1. Any off-site improvements, including, but not limited to, sewer or drainage lines, utility hookups, sidewalks or roads which are not located on the property; or
2. Any change in the intensity of use of the property.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61044 “Open-space use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Open-space use” has the meaning ascribed to it in NRS 361A.050.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610445 “Partial abatement” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Partial abatement” means a partial abatement of taxes provided pursuant to NRS 361.4722, 361.4723 or 361.4724.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61045 “Recreational use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Recreational use” has the meaning ascribed to it in NAC 361.61024.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610455 “Single-family residential use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Single-family residential use” means the current employment of property as a single-family residence, as that term is defined in NRS 361.4723.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61046 “Vacant land” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724) “Vacant land” means any land other than land on which there is an improvement sufficient to allow the identification of or establish actual use.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610465 Scope and purpose; exception. (NRS 360.090, 361.4722, 361.4723, 361.4724) The provisions of NAC 361.6104 to 361.61049, inclusive:
1. Except as otherwise provided in subsection 2, set forth the methodology required to carry out the provisions of NRS 361.4722, 361.4723 and 361.4724 in determining the amount of any assessed value to be excluded from the calculation of each partial abatement and the amount of any property taxes to be added to the tax roll for the current fiscal year attributable to any incremental increase in the assessed value of any property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property.
2. Do not apply to any property of an interstate or intercounty nature regarding which the Commission establishes the valuation thereof for assessment purposes pursuant to subsection 1 of NRS 361.320 or NRS 361.321.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008; A by R018-17, 2-27-2018)
NAC 361.61047 Determination of improvement to property. (NRS 360.090, 361.4722, 361.4723, 361.4724) Any determination by a county assessor or the Department, as applicable, that there is any improvement to the subject property must be based on a finding that:
1. There is an appurtenance erected upon or affixed to the land, including any on-site improvement, in the current fiscal year that did not exist in the immediately preceding fiscal year; or
2. The subject property consists in whole or in part of a community unit in a common-interest community and there is:
(a) A common element in that common-interest community; or
(b) An appurtenance erected upon or affixed to a common element in that common-interest community, including any on-site improvement,
Ê that did not exist in the immediately preceding fiscal year.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610475 Determination of change in actual use. (NRS 360.090, 361.4722, 361.4723, 361.4724)
1. Any determination by a county assessor or the Department, as applicable, that there is any change in the actual use of the subject property must be based on a finding that, upon the commencement of the immediately preceding fiscal year:
(a) The property was vacant land and, as the result of new construction on the property sufficient to allow for an identification of the use of the property, the primary use of the property upon the commencement of the current fiscal year is agricultural use, commercial use, industrial use, institutional use, mining use, multifamily residential use, open-space use, recreational use or single-family residential use;
(b) The primary use of the property as vacant land, agricultural use, commercial use, industrial use, institutional use, mining use, multifamily residential use, open-space use, recreational use or single-family residential use is different from the primary use of the property as vacant land, agricultural use, commercial use, industrial use, institutional use, mining use, multifamily residential use, open-space use, recreational use or single-family residential use upon the commencement of the current fiscal year; or
(c) The property was assessed and taxed as part of a qualified subdivision but is no longer part of that qualified subdivision upon the commencement of the current fiscal year. The amount of any partial abatement that applies to the property must be calculated as if the property had not been assessed and taxed as part of a qualified subdivision during the immediately preceding or any other prior fiscal year. As used in this paragraph, “qualified subdivision” has the meaning ascribed to it in NAC 361.117.
2. If any improvements from which the actual use of the subject property was determined for the purposes of subparagraph (2) of paragraph (a) of subsection 1 of NRS 361.227 are destroyed or otherwise removed from the property, the county assessor or the Department, as applicable, shall consider whether the actual use of the property, as determined from the destroyed or removed improvements, still exists for the current fiscal year.
3. If the subject property has more than one use, the county assessor may determine a single use for each individual portion of the property that is being used for only one use for the purpose of determining whether there is any change in the actual use of that portion of the property.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.61048 Determination of change in authorized use. (NRS 360.090, 361.4722, 361.4723, 361.4724)
1. Any determination by a county assessor or the Department, as applicable, that there is any change in the authorized use of the subject property must be based on a finding that:
(a) Between the commencement of the immediately preceding fiscal year and the commencement of the current fiscal year, there has been a change in the legal or governmental restrictions on the use of the property;
(b) The change in the legal or governmental restrictions on the use of the property allows the property to be put to a use that was not an allowed use upon the commencement of the immediately preceding fiscal year; and
(c) Either:
(1) The property was vacant land upon the commencement of both the immediately preceding fiscal year and the current fiscal year; or
(2) All the improvements to the property were removed from the property before the commencement of the current fiscal year. No finding may be made pursuant to this subparagraph if the taxpayer shows to the satisfaction of the county assessor or the Department, as applicable, that a reasonably diligent effort is being made to build new improvements to the property that would provide for the same use of the property as was authorized when the former improvements were removed.
2. If a combination of applications or approvals is required for any changes in the legal or governmental restrictions on the use of the subject property, no finding may be made pursuant to subsection 1 until all such applications and approvals have been obtained.
3. For the purposes of each partial abatement, no change in the authorized use of any property may be determined to occur as a result of any change by a governmental entity in:
(a) The categorization or classification of the zoning designation for the property if there is no change in the allowed use of the property; or
(b) Any procedure to apply for an authorized use of the property.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)
NAC 361.610485 Determination of amount of assessed value excluded from calculation of partial abatement and amount of property taxes to be added to tax roll. (NRS 360.090, 361.4722, 361.4723, 361.4724)
1. If a county assessor or the Department, as applicable, does not make a determination in compliance with the provisions of NAC 361.61047, 361.610475 or 361.61048 that there has been any improvement to or change in the actual or authorized use of the subject property, no amount of property taxes may be added to the tax roll for the current fiscal year attributable to any incremental increase in the assessed value of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property.
2. If a county assessor or the Department, as applicable, makes a determination in compliance with the provisions of NAC 361.61047, 361.610475 or 361.61048 that there has been any improvement to or change in the actual or authorized use of the subject property, the county assessor or the Department, as applicable, in cooperation with the county treasurer, must:
(a) Determine the assessed value for the current fiscal year of any new improvements made on the land of the subject property, as determined for that fiscal year pursuant to NAC 361.61047, by determining the taxable value of such improvements in accordance with the provisions of paragraph (b) of subsection 1 of NRS 361.227 and multiplying that taxable value by 0.35.
(b) Determine the incremental increase in the assessed value of the land of the subject property by:
(1) Determining the full cash value of the land of the subject property in accordance with the provisions of paragraph (a) of subsection 1 of NRS 361.227, NRS 362.095 and paragraph (b) of subsection 1 of NRS 362.100, as applicable, considering any improvement to or change in the actual or authorized use of the property, as determined pursuant to NAC 361.61047, 361.610475 or 361.61048.
(2) Determining the full cash value of the land of the subject property in accordance with the provisions of paragraph (a) of subsection 1 of NRS 361.227, NRS 362.095 and paragraph (b) of subsection 1 of NRS 362.100, as applicable, without considering any improvement to or change in the actual or authorized use of the property determined pursuant to NAC 361.61047, 361.610475 or 361.61048.
(3) Subtracting the amount determined pursuant to subparagraph (2) from the amount determined pursuant to subparagraph (1). If the remainder is zero or a negative number, the amount determined pursuant to this subparagraph shall be deemed to be zero.
(4) Multiplying the amount determined pursuant to subparagraph (3) by the effective tax rate calculated for the subject parcel.
(5) Dividing the amount calculated pursuant to subparagraph (4) by the total rate of all property taxes imposed on the subject parcel in the prior fiscal year.
(c) Apply the sum of the amounts determined pursuant to paragraphs (a) and (b) as the amount of assessed value to be excluded from the calculation of any partial abatement and the amount of any taxes to be added to the tax roll for the current fiscal year attributable to any incremental increase in the assessed value of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property.
3. In carrying out the provisions of this section, a county assessor and the Department, as applicable, shall ensure that the amount of any assessed value excluded from the calculation of any partial abatement and the amount of any property taxes added to the tax roll for the current fiscal year attributable to any incremental increase in the assessed value of any property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property:
(a) Is due solely to an incremental increase in the assessed value of the property which is directly attributable to the improvement to or change in the actual or authorized use of the property;
(b) Is not due to any increase in the assessed value of the property as a result of any other cause, including, but not limited to, a general appreciation in the market value of property in the area; and
(c) Is assessed only to the specific property for which the assessed valuation has increased as a result of any improvement to or change in the actual or authorized use of that property.
4. As used in this section, “effective tax rate” means a rate determined for a subject property by dividing the total amount of taxes assessed to the subject property, or which would have been assessed to the subject parcel but for any exemptions from taxation, in the fiscal year prior to any improvement to, or change in the actual or authorized use of, the subject parcel, by the taxable value of the subject parcel for that fiscal year.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008; A by R018-17, 2-27-2018)
NAC 361.61049 Notification of determination that will result in exclusion of any assessed value from calculation of partial abatement. (NRS 360.090, 361.4722, 361.4723, 361.4724) A county assessor shall include with each notice of assessed valuation or amended notice of assessed valuation provided to a taxpayer or an owner of property pursuant to NRS 361.300 a statement of whether any determination has been made that will result in the exclusion of any assessed value from the calculation of any partial abatement that applies to the subject property attributable to any incremental increase in the assessed value of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property. If the statement indicates that such a determination has been made, the statement must:
1. Set forth that determination;
2. Specify the amount of that incremental increase in the assessed value of the property; and
3. Describe the manner in which detailed instructions may be obtained for appealing the matter to the county board of equalization or the Commission.
(Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008; A by R018-17, 2-27-2018)
Appeal of Determination of Applicability of Certain Abatements
NAC 361.6105 Definitions. (NRS 360.090, 361.4734) As used in NAC 361.6105 to 361.61074, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.61052 to 361.61062, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61052 “Contact person” defined. (NRS 360.090, 361.4734) “Contact person” means a person designated by a party to receive communications concerning a proceeding before a hearing officer.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61054 “Hearing officer” defined. (NRS 360.090, 361.4734) “Hearing officer” has the meaning ascribed to it in NAC 360.035.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61056 “Intervener” defined. (NRS 360.090, 361.4734) “Intervener” has the meaning ascribed to it in NAC 360.065.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61058 “Party” defined. (NRS 360.090, 361.4734) “Party” means a person, government, governmental agency or political subdivision of a government entitled to appear in a proceeding of the Commission. The term includes an intervener.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.6106 “Petitioner” defined. (NRS 360.090, 361.4734) “Petitioner” has the meaning ascribed to it in NAC 360.065.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61062 “Staff” defined. (NRS 360.090, 361.4734) “Staff” has the meaning ascribed to it in NAC 360.040.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61064 Notice of appeal of determination of county assessor or Department. (NRS 360.090, 361.4734)
1. A petitioner who wishes to appeal a determination of a county assessor described in paragraph (a) of subsection 1 of NRS 361.4734 or a determination of the Department described in paragraph (b) of subsection 1 of NRS 361.4734 must file a written notice of appeal with the Commission on a form provided by the Department within the period prescribed in subsection 2 of NRS 361.4734.
2. In addition to the information required by subsection 4 of NAC 360.045, the notice of appeal must include:
(a) The name and mailing address of the petitioner and the petitioner’s contact person, if any;
(b) The telephone number for daytime business hours and facsimile number of the petitioner and the petitioner’s contact person, if any;
(c) The electronic mail address, if available, of the petitioner and the petitioner’s contact person, if any;
(d) The tax year being appealed;
(e) A description of the property and the assessor’s parcel number or the identifying number of the property that is the subject of the appeal;
(f) A copy of the decision of the county assessor or the Department for the tax year in question on the property that is the subject of the appeal; and
(g) A statement of the relief requested.
3. Not later than 10 business days after receiving the notice of appeal of a determination issued pursuant to paragraph (a) of subsection 1 of NRS 361.4734, the Department shall provide a copy of the notice of appeal to the county assessor.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61066 Hearing before hearing officer; findings and conclusions of hearing officer. (NRS 360.090, 361.4734)
1. After receipt of a notice of appeal filed in compliance with subsection 2 of NRS 361.4734 and NAC 361.61064, the Commission will assign a hearing officer to hear the appeal.
2. The hearing officer shall conduct the hearing in the manner prescribed in NAC 360.100 to 360.155, inclusive.
3. Notice of the hearing must be provided in the manner prescribed in NAC 360.095.
4. A person who wishes to intervene in a hearing must comply with the provisions set forth in NAC 360.070.
5. At any evidentiary hearing, the petitioner and the county assessor or the Department may exercise the rights set forth in NAC 360.080.
6. Appearances and representation of the parties must be made in the manner prescribed in NAC 360.085.
7. After the close of the evidentiary hearing, the hearing officer shall file with the Commission within 60 calendar days a proposed order that sets forth the findings and conclusions of the hearing officer and the reasons and bases for those findings and conclusions. The proposed order must be served on each party.
8. The findings of fact and conclusions of law made by a hearing officer are not required to be included in a stipulated agreement.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61068 Proposed order of hearing officer: Written objection; reply to objection; action by Commission. (NRS 360.090, 361.4734)
1. Except as otherwise provided in this subsection, a party may file a written objection to the proposed order with the Commission within 20 calendar days after receipt of the proposed order. The written objection must state with particularity the issues presented, the points of law or fact which are relied on and the relief requested. The Commission may allow a party, upon good cause shown, to file a written objection with the Commission more than 20 days after receipt of a proposed order.
2. A party who files a written objection shall serve a copy of its objection on all parties.
3. Except as otherwise provided in this subsection, a party may reply to the written objection within 15 days after receipt of the written objection. A reply must be served on all parties. The Executive Director may grant an extension of time for the responding party to reply upon good cause shown.
4. If no party files a written objection with the Commission pursuant to subsection 1, the Commission will place the proposed order on the appropriate agenda for its next scheduled meeting for action by the Commission.
5. If a party files a written objection to the proposed order with the Commission within 20 days after receipt of the proposed order or if the Commission chooses to take any action concerning the review of the proposed order, other than to remand the proposed order to the hearing officer for clarification of the order, the Commission will hold a hearing on the proposed order. The Commission will provide to the parties at least 15 days’ notice of the hearing, unless the parties waive the notice in writing or on the record before the Commission.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.6107 Hearing before Commission: Order of argument. (NRS 360.090, 361.4734) In a hearing held before the Commission pursuant to NAC 361.61068, the order in which argument will ordinarily be received from the parties is:
1. Orientation by staff;
2. Argument by the petitioner;
3. Argument by interveners;
4. Argument by any other party; and
5. Rebuttal by the petitioner.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61072 Hearing before Commission: Basis on record before hearing officer; determination that record is inadequate. (NRS 360.090, 361.4734) The hearing held before the Commission pursuant to NAC 361.61068 must be based on the record made before the hearing officer. If the Commission determines the record is inadequate, the Commission may remand the matter to the hearing officer for further proceedings or open the record and hear new evidence.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
NAC 361.61074 Hearing before Commission: Action by Commission; issuance of written order. (NRS 360.090, 361.4734)
1. After the close of oral argument, the Commission shall:
(a) Make a final order that adopts, reverses or modifies, in whole or in part, the proposed order of the hearing officer; or
(b) Remand the matter to the hearing officer for further proceedings.
2. The Executive Director shall issue the written order on behalf of the Commission within 60 calendar days after a final order is made or a matter is remanded pursuant to subsection 1.
(Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)
Annexation of Real Property to Taxing Entity
NAC 361.6115 Definitions. (NRS 361.4732, 361.4733) As used in NAC 361.6115 to 361.6135, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.6117 to 361.6127, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.6117 “Combined overlapping adjusted tax rate” defined. (NRS 361.4732, 361.4733) “Combined overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.612 “Entity-adjusted parcel tax rate” defined. (NRS 361.4732, 361.4733) “Entity-adjusted parcel tax rate” has the meaning ascribed to it in NAC 361.760.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.6123 “Revised tax base” defined. (NRS 361.4732, 361.4733) “Revised tax base” means the amount of ad valorem taxes which, after a parcel or other taxable unit of real property is annexed to a taxing entity, would have been levied on the property for the immediately preceding fiscal year if the annexation had occurred 1 year earlier, based upon the tax rates that would have applied to the property for the immediately preceding fiscal year if the annexation had occurred 1 year earlier and without regard to any exemptions from taxation that applied to the property for the immediately preceding fiscal year but do not apply to the property for the current fiscal year.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.6125 “Taxing entity” defined. (NRS 361.4732, 361.4733) “Taxing entity” has the meaning ascribed to it in NRS 361.4721.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.6127 “Year of annexation” defined. (NRS 361.4732, 361.4733) “Year of annexation” means the first fiscal year in which a taxing entity that annexes a parcel or other taxable unit of real property is entitled to levy or require the levy on its behalf of any ad valorem taxes on that property as a result of that annexation of the property.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.613 Events constituting annexation. (NRS 361.4732, 361.4733) For the purpose of carrying out the provisions of NRS 361.4732 and NAC 361.6115 to 361.6135, inclusive, the annexation of a parcel or other taxable unit of real property to a taxing entity includes:
1. The inclusion of the property within the boundaries of an existing taxing entity as a result of a change in the boundaries of that taxing entity;
2. The inclusion of the property within the boundaries of a new taxing entity; and
3. The assumption by a taxing entity of the functions of another taxing entity that:
(a) Was entitled to levy or require the levy on its behalf of any ad valorem taxes on the property during the immediately preceding fiscal year; and
(b) Has been dissolved.
(Added to NAC by Com. on Local Gov’t Finance by R044-06, eff. 5-4-2006; A by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.6133 Calculations required after annexation. (NRS 361.4732, 361.4733)
1. Except as otherwise provided in subsections 2 and 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the annexation of a parcel or other taxable unit of real property to a taxing entity, the tax receiver of the county in which that property is located after that annexation shall, when making any calculations pursuant to the provisions of this chapter for the year of annexation of that property and each subsequent fiscal year which require a determination of:
(a) The entity-adjusted parcel tax rates applicable to the property for the fiscal year immediately preceding the year of annexation:
(1) Disregard the entity-adjusted parcel tax rate for that prior fiscal year of any taxing entity which, as a result of that annexation, is no longer entitled to levy or require the levy on its behalf of any ad valorem taxes on the property; and
(2) Include as an entity-adjusted parcel tax rate applicable to that property for that prior fiscal year:
(I) The ad valorem tax rate for that prior fiscal year of the taxing entity annexing that property; or
(II) If that taxing entity did not exist in that prior fiscal year, the ad valorem tax rate of that taxing entity for the year of annexation.
(b) The combined overlapping adjusted tax rate applicable to the property for the fiscal year immediately preceding the year of annexation:
(1) Exclude from that determination the entity-adjusted parcel tax rate for that prior fiscal year of any taxing entity which, as a result of that annexation, is no longer entitled to levy or require the levy on its behalf of any ad valorem taxes on the property; and
(2) Include in that determination, as an entity-adjusted parcel tax rate applicable to that property for that prior fiscal year:
(I) The ad valorem tax rate for that prior fiscal year of the taxing entity annexing that property; or
(II) If that taxing entity did not exist in that prior fiscal year, the ad valorem tax rate of that taxing entity for the year of annexation.
2. Except as otherwise provided in subsection 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the annexation of a parcel or other taxable unit of real property to a taxing entity, the tax receiver of the county in which that property is located after that annexation shall:
(a) Calculate the revised tax base for that property as follows:
(1) Subtract the combined overlapping adjusted tax rate which actually applied to the property for the fiscal year immediately preceding the year of annexation, as determined without regard to the provisions of subsection 1, from the combined overlapping adjusted tax rate applicable to that property for that prior fiscal year, as determined in accordance with the provisions of subsection 1;
(2) Divide the result obtained pursuant to subparagraph (1) by the combined overlapping adjusted tax rate which actually applied to the property for the fiscal year immediately preceding the year of annexation, as determined without regard to the provisions of subsection 1;
(3) Multiply the result obtained pursuant to subparagraph (2) by the actual amount of ad valorem taxes applicable to the property for the fiscal year immediately preceding the year of annexation, as determined after the deduction of any partial abatement of taxes that applied to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any tax exemptions that applied to the property for that prior fiscal year; and
(4) Add the result obtained pursuant to subparagraph (3) to the actual amount of ad valorem taxes applicable to the property for the fiscal year immediately preceding the year of annexation, as determined after the deduction of any partial abatement of taxes that applied to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any tax exemptions that applied to the property for that prior fiscal year.
(b) Except as otherwise required to carry out the provisions of NRS 361.4729, use the revised tax base for that property, as calculated pursuant to paragraph (a), in lieu of the amount otherwise required to be determined pursuant to paragraph (a) of subsection 1 of NRS 361.4722, paragraph (a) of subsection 2 of NRS 361.4722, paragraph (a) of subsection 1 of NRS 361.4723 or paragraph (a) of subsection 1 of NRS 361.4724 for the purpose of determining the amount of any partial abatement of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the year of annexation.
3. The provisions of this section must not be applied in any manner that:
(a) Would provide for the abatement of any increase in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or
(b) Would not allocate the revenue from any increase in ad valorem taxes described in paragraph (a) to the taxing entity which levies that increase or on behalf of which that increase is levied.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
NAC 361.6135 Duties of tax receiver of county and Department. (NRS 361.4732, 361.4733)
1. The tax receiver of a county and the Department, as applicable, shall ensure that the amount of any property taxes which are excluded from any partial abatement of taxes provided pursuant to NRS 361.4722, 361.4723 or 361.4724 and added to the tax roll for the current fiscal year as a result of the annexation of a parcel or other taxable unit of real property to a taxing entity:
(a) Is due solely to an incremental increase in the rate of property taxes applicable to the property which is directly attributable to the annexation of the property to the taxing entity; and
(b) Is not due to any increase in the assessed value of the property as a result of any other cause, including, but not limited to, a general appreciation in the market value of property in the area.
2. The tax receiver of a county shall:
(a) Provide on a website or other Internet site, if any, that is operated or administered by or on behalf of the county or tax receiver:
(1) A description of each taxing district and taxing entity in the county; and
(2) The ad valorem tax rate of each taxing entity in the county for the current fiscal year and the immediately preceding 2 fiscal years; and
(b) Make readily available to any person, upon request:
(1) A description of each taxing district and taxing entity in the county; and
(2) The ad valorem tax rate of each taxing entity in the county for the current fiscal year and each prior fiscal year which commenced on or after July 1, 2004.
3. The Department shall provide on its website or other Internet site concerning property taxes a worksheet for performing the calculations required to carry out the provisions of NAC 361.6115 to 361.6135, inclusive.
(Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)
Abatement for Certain Energy Efficient Structures
NAC 361.617 Definitions. (NRS 361.0775) As used in NAC 361.617 to 361.620, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.6175, 361.618 and 361.6185 have the meanings ascribed to them in those sections.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
NAC 361.6175 “Commission” defined. (NRS 361.0775) “Commission” means the Commission on Economic Development.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
NAC 361.618 “LEED” defined. (NRS 361.0775) “LEED” means Leadership in Energy and Environmental Design.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
NAC 361.6185 “LEED Green Building Rating System” defined; availability of copies. (NRS 361.0775)
1. “LEED Green Building Rating System” means those portions of the Leadership in Energy and Environmental Design Green Building Rating System developed by the U.S. Green Building Council that are adopted by the Director of the Office of Energy or otherwise deemed to be appropriate for use in this State pursuant to NRS 701.217 and the regulations adopted pursuant thereto.
2. A copy of the LEED Green Building Rating System may be obtained at no cost from the U.S. Green Building Council, 1015 18th Street, N.W., Suite 508, Washington, D.C. 20036, or on the Internet at http://www.usgbc.org/.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
NAC 361.619 Application to Commission; ineligible structures. (NRS 361.0775)
1. A person may apply to the Commission for a partial abatement of the taxes on real property payable each year pursuant to chapter 361 of NRS for property which has a building or other structure that:
(a) Is not a public building or structure; and
(b) Is not a single-family house, multifamily structure with three stories or fewer above grade, or a mobile or manufactured home.
2. The application must be made on a form prescribed by the Executive Director of the Commission.
3. The application:
(a) Must include a letter of verification from the Director of the Office of Energy which states that the real property for which the abatement is sought has a building or other structure that meets or exceeds the certification requirements for the abatement as set forth in NRS 361.0775 and NAC 361.620 and which sets forth the number of LEED points earned;
(b) Must specify the desired term and amount of the abatement in accordance with the table set forth in NAC 361.620; and
(c) If the real property for which the abatement is sought is located in a redevelopment area created pursuant to chapter 279 of NRS, must include proof that the application has been submitted to the redevelopment agency or legislative body with jurisdiction over the redevelopment area.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
NAC 361.6195 Consideration of application at meeting of Commission; notice of meeting. (NRS 361.0775)
1. The Commission will consider an application for the partial abatement of property taxes:
(a) At the next regularly scheduled meeting of the Commission following receipt of the application if the application is received by the Commission at least 15 working days before the meeting; or
(b) At the next regularly scheduled meeting of the Commission following the meeting described in paragraph (a) in all other cases.
2. The Commission will, not less than 10 working days before a meeting at which it will consider an application for the partial abatement of property taxes, provide written notice of the date, time and location of the meeting to each local government and redevelopment agency within whose jurisdiction the real property that is the subject of the application is located.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
NAC 361.620 Grant of abatement by Commission. (NRS 361.0775)
1. Except as otherwise provided in subsection 2, if the Commission determines that the application satisfies all requirements of NAC 361.617 to 361.620, inclusive, the Commission will grant a partial abatement of the taxes on real property payable each year pursuant to chapter 361 of NRS in accordance with the following table:
|
LEED Level |
LEED-NC Points |
LEED-EB Points |
Term of Abatement |
Amount of Abatement |
|
Silver |
33 to 36 |
40 to 45 |
10 years |
35 to 42 percent |
|
|
|
|
5 to 7 years |
50 percent |
|
|
37 or 38 |
46 or 47 |
10 years |
43 to 48 percent |
|
|
|
|
8 or 9 years |
50 percent |
|
Gold |
39 or more |
48 or more |
10 years |
49 or 50 percent |
2. The Commission will reduce the partial abatement of real property taxes authorized by subsection 1 to the extent necessary to ensure that:
(a) If the real property for which the partial abatement is sought is located in a redevelopment area created pursuant to chapter 279 of NRS, the partial abatement authorized by subsection 1 together with any partial abatement of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 does not exceed 82 percent of the assessed value of the property; and
(b) The partial abatement authorized by subsection 1 does not result in the inability of a local government to pay debt service on any obligation or of a redevelopment agency created pursuant to chapter 279 of NRS to pay any outstanding indebtedness.
3. If the Commission grants a partial abatement of real property taxes, the abatement applies beginning July 1 of the next following fiscal year, unless the applicant and the governing body of the local government whose tax revenue will be affected by the abatement agree upon a different date and the governing body provides written authorization for the different date.
4. Upon granting a partial abatement of real property taxes, the Commission will issue a certificate of eligibility for the abatement that sets forth all parcel numbers of the affected property and the percentage of the taxes on real property payable each year pursuant to chapter 361 of NRS and duration for which the abatement is granted.
5. As used in this section, unless the context otherwise requires:
(a) “LEED-EB” means the LEED Green Building Rating System for Existing Buildings, Upgrades, Operations and Maintenance; and
(b) “LEED-NC” means the LEED Green Building Rating System for New Construction & Major Renovations.
(Added to NAC by Comm’n on Econ. Development by R220-05, eff. 9-18-2006)
EQUALIZATION BY COUNTY BOARD OF EQUALIZATION
NAC 361.622 Scope; practice and procedure; power of county boards to adopt additional requirements. (NRS 361.340)
1. NAC 361.622 to 361.645, inclusive, are the minimum requirements governing procedures before each county board of equalization and elected officers serving that board.
2. With the prior approval of the State Board of Equalization, each county board of equalization may:
(a) Require petitioners to attach additional information to the petition form; and
(b) Adopt more detailed rules of procedure.
3. The provisions of NAC 361.682 to 361.753, inclusive, that govern the practice and procedure in contested cases before the State Board of Equalization shall, to the extent practicable, be deemed to apply to the practice and procedure in contested cases before a county board of equalization except that a petition filed with a county board:
(a) Must include a citation to each section of NRS that authorizes the county board to hear the appeal; and
(b) Is not required to include the name of the county board, the hearing or case number or the date the case was heard by the county board.
[St. Bd. of Equalization, Intro. to Reg. No. 2, eff. 12-29-75; A 1-1-77; A and renumbered as Intro. to Reg. No. 1, 10-14-77; + Intro. to Reg. No. 3, eff. 12-29-75; A and renumbered as Intro. to Reg. No. 2, 10-14-77]—(NAC A 1-6-84; R097-15, 1-27-2017)
NAC 361.623 List of members of additional panel. (NRS 361.340) If an additional panel is added to a county board of equalization, the county clerk shall send to the Secretary of the State Board of Equalization a list of the names and addresses of the members and the chair of the panel. The list must be sent by January 25.
(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)
NAC 361.624 Duty to equalize within geographic vicinity, whole county; limitation on adjustment of result of cyclic reappraisal. (NRS 361.340) The county board of equalization shall seek to equalize taxable valuation within the geographic vicinity of the subject property, as well as the whole county. Unequal valuations resulting solely from the effect of cyclic reappraisal authorized by law does not justify an adjustment to a valuation.
[St. Bd. of Equalization, Reg. No. 2 part § 9, eff. 12-29-75; A and renumbered as Reg. No. 2 part § 10, 1-1-77; A and renumbered as Reg. No. 1 part § 10, 10-14-77]
NAC 361.626 Duties of county clerk. (NRS 361.335, 361.340)
1. Each county clerk shall:
(a) In addition to giving notice as required by chapters 241 and 361 of NRS, post a notice for each meeting of the county board of equalization at the meeting room and the clerk’s office.
(b) Publish a notice in a newspaper of general circulation in the county at least 5 days before the first meeting by using a display advertisement which is no smaller than 2 by 4 inches and includes the deadline for filing petitions.
2. The county clerk or a representative of the county clerk shall attend all meetings of each panel of the county board of equalization.
[St. Bd. of Equalization, Reg. No. 2 part § 1, eff. 12-29-75; A 1-1-77; renumbered as Reg. No. 1 part § 1, 10-14-77; Reg. No. 2 part § 2, eff. 12-29-75; A and renumbered as Reg. No. 1 part § 2, 10-14-77; + Reg. No. 3 §§ 1 & 2, eff. 12-29-75; A 1-1-77; A and renumbered as Reg. No. 2 §§ 1 & 2, 10-14-77]—(NAC A 1-6-84)
NAC 361.627 Consideration of complaints. (NRS 361.340, 361.375)
1. A county board of equalization shall hear each complaint properly brought before it and make an independent determination of the valuation of the property assessed. The State Board of Equalization will remand to a county board any complaint which was denied because it was too complex or based on a method of appraisal required by law or for which evidence of taxable value was not reviewed.
2. A county board shall give each petitioner sufficient time to submit the petitioner’s evidence. No complaint may be denied solely on the basis of insufficient time in which to hear the evidence.
(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)
NAC 361.628 Summary of appraisal data. (NRS 361.340) Each county assessor shall prepare and submit to the county board of equalization a summary of appraisal data for each property which is the subject of a complaint alleging that taxable value is in excess of full cash value. The summary must:
1. Include the method used to value the property and the sales price of comparable property which supports the valuation; and
2. Be accompanied by a map of the area showing the location of the property and all comparable property.
[St. Bd. of Equalization, Reg. No. 2 § 7, eff. 12-2-75; A and renumbered as Reg. No. 2 § 8, 1-1-77; renumbered as Reg. No. 1 § 8, 10-14-77]—(NAC A 1-6-84)
NAC 361.630 Order of appearances; testimony to be under oath. (NRS 361.340)
1. Unless modified by the county board of equalization, the order of appearances must be as follows:
(a) Assessing authority’s briefing-orientation;
(b) Petitioner’s presentation;
(c) Assessing authority’s presentation; and
(d) Petitioner’s rebuttal.
2. All persons shall testify under oath.
[St. Bd. of Equalization, Reg. No. 2 § 5, eff. 12-29-75; A and renumbered as Reg. No. 1 § 5, 10-14-77; Reg. No. 2 § 6, eff. 12-29-75; renumbered as Reg. No. 2 § 7, 1-1-77; renumbered as Reg. No. 1 § 7, 10-14-77]
NAC 361.631 Evidence of market value. (NRS 361.340) At a hearing before a county board of equalization, the following information may be submitted as evidence of the market value of the property:
1. The amount derived from the capitalization of fair economic income;
2. The full cash value of the land plus the depreciated replacement cost of any improvements; and
3. Prices paid in market transactions for comparable property.
(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)
NAC 361.632 Consolidation of cases. (NRS 361.340)
1. A county board of equalization may consolidate for hearing at one time and place all cases raising similar questions of law or fact.
2. All petitioners must be afforded the opportunity to be heard and may raise issues of law or fact which are different from those issues raised in the consolidated hearing.
[St. Bd. of Equalization, Reg. No. 2 § 6, eff. 1177; renumbered as Reg. No. 1 § 6, 10-14-77]
NAC 361.634 Notices. (NRS 361.340) The county clerk shall maintain adequate proof of mailing or personal delivery of all letters or notices scheduling appearances before the county board of equalization. The proof may be a certificate of mailing or other reliable evidence. The letter or notice must advise the petitioner he or she is to pay for a court reporter and transcript if a transcript is desired and that one copy of the transcript must be provided to the county and one provided to the State Board of Equalization. A courtesy copy of such letters or notices must be delivered to the county assessor.
[St. Bd. of Equalization, Reg. No. 3 part §§ 3 & 4, eff. 12-29-75; A and renumbered as Reg. No. 3 § 3, 1-1-77; renumbered as Reg. No. 2 § 3, 10-14-77]
NAC 361.638 Exhibits; minutes; petition forms. (NRS 361.340, 361.365) Each county clerk shall:
1. Mark, record and file all exhibits submitted to the county board of equalization. A list of exhibits must be included on each petition at the place designated therefor.
2. Prepare complete minutes of each hearing, including any action taken by the board and the specific reasons for that action.
3. Complete each petition form to reflect the action taken by the board and the specific reasons for that action.
4. Submit petitions, exhibits, minutes, certificates of mailing and other material deemed pertinent by the county board of equalization to the Secretary of the State Board of Equalization no later than the fourth Monday in February.
[St. Bd. of Equalization, Reg. No. 3 §§ 5-7 & 9, eff. 12-29-75; A and renumbered as Reg. No. 3 §§ 4-6 & 8, 1-1-77; renumbered as Reg. No. 2 §§ 4-6 & 8, 10-14-77]—(NAC A 1-6-84)
REVISER’S NOTE.
NRS 361.340, on which the date in subsection 4 depends, was amended twice in that respect between 1977 and the time when NAC 361.638 was originally codified: See Stats. 1979 at page 1 and Stats. 1981 at page 795. The date in subsection 4 was changed by the reviser to accommodate the later of these amendments and NRS 361.380.
NAC 361.640 Notice of action. (NRS 361.340) Each county board of equalization shall notify:
1. All petitioners of its actions; and
2. Any other property owner whose property values were affected.
[St. Bd. of Equalization, Reg. No. 2 § 14, eff. 1-1-77; renumbered as Reg. No. 1 § 14, 10-14-77]
NAC 361.6405 Determination of percentage of obsolescence. (NRS 361.340, 361.375) The State Board of Equalization will or a county board of equalization shall, in fixing a percentage of obsolescence to be deducted from the taxable value of any improvements subject to its jurisdiction, consider the total value of land and improvements to determine whether taxable value exceeds full cash value.
(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)
NAC 361.641 Deduction of percentage of obsolescence when taxable value exceeds cash value. (NRS 361.340, 361.375) If it is determined that the computed total taxable value of any property exceeds its full cash value, the State Board of Equalization will or a county board of equalization shall instruct the county assessor to annually deduct the percentage of obsolescence fixed by the board from the computed total taxable value of the improvements until the property is physically reappraised.
(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)
NAC 361.643 Record to support reduction of assessed valuation. (NRS 361.340, 361.360, 361.375)
1. If a county board of equalization reduces the assessed valuation of any property, the record of the case must contain the reasons for the reduction including, when applicable:
(a) An incorrect measurement of square footage.
(b) The reduction of the valuation of that class of property.
(c) A deduction for depreciation or obsolescence.
(d) Evidence of comparative sales or fair economic income which proves that the taxable value of the property exceeded its full cash value.
2. If the State Board of Equalization determines that the record of any case on appeal from a county board of equalization is inadequate, the Board will remand the case to the county board before October 1. If the county board holds a hearing anew on the complaint, it must be held and a decision must be rendered within 30 days after the remand.
(Added to NAC by St. Bd. of Equalization, eff. 1-6-84)
NAC 361.645 Appeal of decision to State Board of Equalization: Record of proceedings before county board. (NRS 361.340)
1. Within 15 calendar days after a county clerk receives notice from the State Board of Equalization that an appeal of a decision of the county board of equalization has been docketed for a hearing at the State Board, the county clerk shall:
(a) Prepare a record of the proceedings before the county board in the decision on appeal, including a general index in a format prescribed by the State Board of Equalization. The index must clearly identify each exhibit, paper, report or other documentary, audio or video evidence included in the record.
(b) Certify the record as complete except as shortened pursuant to subsection 3.
(c) Transmit the certified record to the State Board of Equalization.
(d) Serve a copy of the general index on each party to the appeal.
2. If a petitioner has delivered a certified transcript of the hearing before the county board to the county clerk pursuant to NRS 361.365, the clerk shall include a copy of the transcript in the record. The transcript delivered to the clerk must be prepared by a certified court reporter.
3. Except as otherwise provided in this subsection, the record submitted to the State Board of Equalization must be complete. The record may be shortened:
(a) By written stipulation of all parties to the appeal; and
(b) By the omission of duplicate copies of any exhibit, paper, report or other documentary evidence submitted at the hearing before the county board. The clerk shall include original documents rather than copies of all documentary evidence, if possible.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
EQUALIZATION BY STATE BOARD OF EQUALIZATION
NAC 361.650 Definitions. (NRS 361.375, 361.395) As used in NAC 361.650 to 361.669, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.651 to 361.656, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by St. Bd. of Equalization by R153-09, eff. 4-20-2010)
NAC 361.651 “County board” defined. (NRS 361.375, 361.395) “County board” means a county board of equalization.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.652 “Equalize property valuations” defined. (NRS 361.375, 361.395) “Equalize property valuations” means to ensure that the property in this State is assessed uniformly in accordance with the methods of appraisal and at the level of assessment required by law.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.653 “Interested person” defined. (NRS 361.375, 361.395) “Interested person” means an owner of any relevant property, as indicated in the records of the county assessor of the county in which the property is located or, if the Commission establishes the valuation of the property, as indicated in the records of the Department.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.654 “Ratio study” defined. (NRS 361.375, 361.395) “Ratio study” means an evaluation of the quality and level of assessment of a class or group of properties in a county which compares the assessed valuation established by the county assessor for a sampling of those properties to:
1. An estimate of the taxable value of the property by the Department or an independent appraiser; or
2. The sales price of the property,
Ê as appropriate.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.655 “Secretary” defined. (NRS 361.375, 361.395) “Secretary” means the Secretary of the State Board.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.656 “State Board” defined. (NRS 361.375, 361.395) “State Board” means the State Board of Equalization.
(Added to NAC by St. Bd. of Equalization by R153-09, eff. 4-20-2010)
NAC 361.657 Scope. (NRS 361.375, 361.395) The provisions of NAC 361.650 to 361.669, inclusive, govern the practice and procedure for proceedings before the State Board to carry out the provisions of NRS 361.395.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.658 Adoption by reference of Standard on Ratio Studies; revision of publication after adoption. (NRS 361.375, 361.395)
1. The State Board hereby adopts by reference the Standard on Ratio Studies, July 2007 edition, published by the International Association of Assessing Officers. The Standard on Ratio Studies may be obtained from the International Association of Assessing Officers, 314 West 10th Street, Kansas City, Missouri 64105-1616, or on the Internet at http://www.iaao.org/store, for the price of $10.
2. If the publication adopted by reference in subsection 1 is revised, the State Board will review the revision to determine its suitability for this State. If the State Board determines that the revision is not suitable for this State, the State Board will hold a public hearing to review its determination and give notice of that hearing within 30 days after the date of the publication of the revision. If, after the hearing, the State Board does not revise its determination, the State Board will give notice that the revision is not suitable for this State within 30 days after the hearing. If the State Board does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.
(Added to NAC by St. Bd. of Equalization by R153-09, eff. 4-20-2010)
NAC 361.659 Annual sessions of State Board: Duties of State Board; adjournment. (NRS 361.375, 361.395)
1. During each annual session of the State Board, the State Board will hold one or more hearings to:
(a) Review the tax roll of each county, as corrected by the county board;
(b) Determine whether the property in this State has been assessed uniformly in accordance with the methods of appraisal and at the level of assessment required by law;
(c) Determine whether the taxable values specified in the tax roll of any county must be increased or decreased to equalize property valuations in this State; and
(d) Take such additional actions as it deems necessary to carry out the provisions of NRS 361.395.
2. Subject to the time limitations specified in NRS 361.380, the State Board may adjourn its annual session from time to time until it has completed its duties pursuant to NRS 361.395 for the applicable fiscal year.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.660 Information to be considered by State Board. (NRS 361.375, 361.395) In determining whether the property in this State has been assessed uniformly in accordance with the methods of appraisal and at the level of assessment required by law, the State Board will consider:
1. The tax roll of each county, as corrected by the county board and filed with the Secretary pursuant to NRS 361.390;
2. The central assessment roll prepared pursuant to NRS 361.3205;
3. The results of any relevant ratio study conducted by the Department pursuant to NRS 361.333;
4. The results of any relevant audit of the work practices of a county assessor performed by the Department pursuant to NRS 361.333 to determine whether a county has adequate procedures to ensure that all property subject to taxation is being assessed in a correct and timely manner;
5. Any relevant evidence submitted to a county board or the State Board pursuant to NRS 361.355;
6. Any information provided to the State Board pursuant to NAC 361.661, 361.662 and 361.663; and
7. Any other information the State Board deems relevant.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.661 Provision of certain information by county assessor upon request of State Board. (NRS 361.375, 361.395)
1. In addition to the information contained in the tax roll filed with the Secretary pursuant to NRS 361.390, a county assessor shall, upon the request of the State Board, provide any information the State Board deems necessary to carry out the provisions of NRS 361.395, including, without limitation:
(a) The assessor’s parcel number for any parcel of property.
(b) The taxable value and assessed value determined for any land, improvements or personal property before and after any adjustments to those values by the county board.
(c) The value per unit determined for any land or personal property before and after any adjustments to that value by the county board.
(d) Land use codes for the county.
(e) Market areas in the county.
(f) The year in which any improvements were built.
(g) The classification of quality for any improvements.
(h) The size of any improvements.
(i) The size of any lot.
(j) The zoning of any property.
(k) The date of the most recent sale of any property and the sales price of the property.
(l) Summary statistics concerning taxable values and assessed values for tax districts, market areas, neighborhoods and land use codes, including, without limitation, the applicable medians and modes.
2. If the State Board desires a county assessor to provide any information pursuant to this section, the State Board will require the Department to send to the county assessor by regular mail a notice of the request which describes the information requested and the format and type of media in which the information is requested. The county assessor shall submit the information to the State Board, in the format and type of media requested, within 10 business days after the date of the postmark on the notice of the request or such a longer period as the State Board, upon the request of the county assessor, may allow.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.662 Ratio studies and other statistical analyses: Performance upon request of and evaluation by State Board. (NRS 361.375, 361.395)
1. Upon the request of the State Board, the Department or county assessor shall perform and submit to the State Board any ratio study or other statistical analysis that the State Board deems appropriate to assist it in determining the quality and level of assessment of any class or group of properties in a county.
2. Each ratio study or other statistical analysis requested by the State Board pursuant to this section must:
(a) Be performed in accordance with the provisions of the Standard on Ratio Studies adopted by reference in NAC 361.658, except any specific provision of the Standard on Ratio Studies that conflicts or is inconsistent with the laws of this State or any regulations adopted by the State Board or the Commission;
(b) Identify the statistical population that is the subject of the ratio study or statistical analysis, which may be divided into two or more strata according to neighborhood, age, type of construction or any other appropriate criterion or set of criteria; and
(c) Include an adequate sampling of each stratum into which the statistical population that is the subject of the ratio study or statistical analysis is divided, and such statistical criteria as may be required, to indicate an accurate ratio of assessed value to taxable value and an accurate measure of equality in assessment.
3. The State Board will determine the appropriate time frame from which sales of property may be considered in any ratio study or statistical analysis requested pursuant to this section. If the State Board determines that the appropriate time frame is any period other than the 36 months immediately preceding July 1 of the year before the applicable lien date, the State Board will provide the reasons for that determination to the Department or county assessor.
4. The State Board will evaluate each ratio study and statistical analysis performed pursuant to this section to determine whether the ratio study or statistical analysis reliably indicates the quality and level of assessment for the applicable class or group of properties. In making that determination, the State Board will consider:
(a) Whether the Department or county assessor used a sufficient number of sales or appraisals in performing the ratio study or statistical analysis;
(b) Whether the samples of property selected by the Department or county assessor adequately represent the total makeup of the applicable class or group of properties;
(c) Whether the Department or county assessor correctly adjusted the samples of property for market conditions;
(d) Whether any variations among sales or appraisal ratios affect the reliability of the ratio study or statistical analysis; and
(e) Any other matters the State Board deems relevant.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.663 Investigation and evaluation by Department of procedures and operation of county assessor. (NRS 361.375, 361.395) Before making any determination concerning whether the property in a county has been assessed uniformly in accordance with the methods of appraisal required by law, the State Board will require the Department to:
1. Conduct a systematic investigation and evaluation of the procedures and operations of the county assessor; and
2. Report to the State Board its findings concerning whether the county assessor has appraised the property in the county in accordance with the methods of valuation prescribed by statute and the regulations of the Commission.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.664 Preliminary finding that class or group of properties was not assessed uniformly in accordance with methods of appraisal and at level of assessment required by law: Scheduling and notice of hearing. (NRS 361.375, 361.395)
1. If the State Board, after considering the information described in NAC 361.660, makes a preliminary finding that any class or group of properties in this State was not assessed uniformly in accordance with the methods of appraisal and at the level of assessment required by law, the State Board will:
(a) Schedule a hearing concerning that preliminary finding on a date which is not less than 10 business days after the notice of the hearing is mailed pursuant to paragraph (b).
(b) Require the Department to send by registered or certified mail a notice of the hearing to the county clerk, county assessor, district attorney and chair of the county board of each county in which any of the property is located. A legal representative of the county may waive the receipt of such notice.
(c) Require the Secretary to provide a copy of the notice of the hearing to the Commission and to the board of county commissioners of each county in which any of the property is located.
2. The notice of the hearing must state:
(a) The date, time and location of the hearing;
(b) The information on which the State Board relied to make its preliminary finding that the class or group of properties was not assessed uniformly in accordance with the methods of appraisal and at the level of assessment required by law; and
(c) The proposed order of the State Board.
3. The Department shall include with each notice provided pursuant to paragraph (b) of subsection 1, and upon the request of any interested person, provide to that person, a copy of any analysis or other information considered by the State Board in making its preliminary finding that the class or group of properties was not assessed uniformly in accordance with the methods of appraisal and at the level of assessment required by law.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.665 Hearing on preliminary finding: Order of State Board; additional hearing following order for reappraisal. (NRS 361.375, 361.395)
1. Upon the completion of a hearing scheduled pursuant to NAC 361.664, the State Board will issue:
(a) An order stating that the State Board will take no action on the matter and specifying the reasons that no action will be taken;
(b) An order referring the matter to the Commission for the Commission to take such action within its jurisdiction as the Commission deems to be appropriate;
(c) An order requiring the reappraisal by the county assessor of a class or group of properties in a county; or
(d) Except as otherwise provided in this paragraph, if a ratio study or other statistical analysis performed pursuant to NRS 361.333 or NAC 361.662 indicates with a confidence level of at least 95 percent that the median assessment ratio for any class or group of properties is less than 32 percent or more than 36 percent, an order increasing or decreasing the assessed valuation of that class or group of properties by such a factor as the State Board deems to be appropriate to cause the median assessment ratio to be not less than 32 percent and not more than 36 percent. The State Board will not issue such an order if the application of the factor would cause the coefficient of dispersion calculated for the class or group of properties to fail to meet the recommendations set forth in the Standard on Ratio Studies adopted by reference in NAC 361.658.
2. If the State Board orders the reappraisal of a class or group of properties pursuant to this section, the State Board will:
(a) Schedule an additional hearing to determine whether to issue an order:
(1) Stating that the State Board will take no further action on the matter and specifying the reasons that no further action will be taken;
(2) Referring the matter to the Commission for the Commission to take such action within its jurisdiction as the Commission deems to be appropriate; or
(3) Increasing or decreasing the taxable valuation of the class or group of properties in accordance with the reappraisal or in such other manner as the State Board deems appropriate to equalize property valuations.
(b) Require the Department to send by registered or certified mail, not less than 10 business days before the date of the additional hearing, notice of the date, time and location of the hearing to the county clerk, county assessor, district attorney and chair of the county board of the county in which the property is located. A legal representative of the county may waive the receipt of such notice.
(c) Require the Secretary to notify the Commission and the board of county commissioners of the county in which the property is located, of the date, time and location of the hearing.
3. Each order issued pursuant to this section must include a statement of any pertinent findings of fact made by the State Board. If the State Board issues an order pursuant to this section:
(a) Requiring the reappraisal of a class or group of properties, the order must specify:
(1) The class or group of properties affected;
(2) The purpose and objectives of the reappraisal; and
(3) The procedures required for the reappraisal, including the particular methods of appraisal prescribed by the regulations of the Commission.
(b) Increasing or decreasing the valuation of any class or group of properties, the order must specify:
(1) The class or group of properties affected; and
(2) The amount of or the formula to be used to calculate the amount of that increase or decrease.
4. Upon the issuance of any order pursuant to this section:
(a) The Department shall send a copy of the order:
(1) By certified mail to the county assessor of each affected county; and
(2) By regular mail to the county clerk and chair of the county board of each affected county; and
(b) The Secretary shall provide:
(1) A copy of the order to the Commission; and
(2) Any certification and notice required to carry out the provisions of NRS 361.405.
5. As used in this section, “assessment ratio” means the ratio of assessed value to taxable value.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.666 Hearings: Provision of notice by Department. (NRS 361.375, 361.395)
1. The State Board will require the Department to place on the Internet website maintained by the Department, not less than 10 business days before the date of each hearing scheduled pursuant to NAC 361.664 or 361.665, a copy of the notice of the hearing and of the agenda for the meeting at which the State Board will conduct the hearing.
2. If the State Board proposes to issue an order increasing the valuation of any class or group of properties at any hearing scheduled pursuant to NAC 361.664 or 361.665, the State Board will require the Department to provide to each interested person the notice of the hearing required by subsection 2 of NRS 361.395. If the notice is not provided to an interested person by personal service and the mailing address of that person is not available, the Department must send the notice of the hearing by registered or certified mail to the address of the relevant property or, if the interested person has designated a resident agent pursuant to chapter 77 of NRS, the address of that resident agent as it appears in the records of the Secretary of State. For the purposes of subsection 2 of NRS 361.395, the State Board construes the term “interested person” to have the meaning ascribed to it in NAC 361.653.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.667 Hearings: Persons required to appear; conduct. (NRS 361.375, 361.395)
1. The following persons shall appear at each hearing scheduled pursuant to NAC 361.664 or 361.665:
(a) The county assessor of each county in which any of the property that is the subject of the hearing is located or a representative of the county assessor.
(b) A representative of the county board of each county in which any of the property that is the subject of the hearing is located.
2. At each hearing scheduled pursuant to NAC 361.664 or 361.665:
(a) The State Board will receive testimony under oath from interested persons.
(b) The county assessor or his or her representative, the representative of the county board and a representative of the board of county commissioners of each county in which any of the property that is the subject of the hearing is located may:
(1) Provide additional information and analysis in support of or in opposition to any proposed order of the State Board; and
(2) Show cause why the State Board should not increase or decrease the valuation, or require a reappraisal, of the pertinent class or group of properties in the county.
3. A hearing scheduled pursuant to NAC 361.664 or 361.665 may be held by means of a video teleconference between two or more locations if the video technology used at the hearing provides the persons present at each location with the ability to hear and communicate with the persons present at each other location.
4. The presiding member of the State Board may exclude any disruptive person from the hearing room.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.668 Order of State Board increasing or decreasing valuation of property: Duties of county assessor and Department. (NRS 361.375, 361.395) If the State Board orders any increase or decrease in the valuation of any property in a county pursuant to NAC 361.665:
1. The county assessor of the county shall, on or before June 30 immediately following the issuance of the order or such a later date as the State Board may require, file with the Department the assessment roll for the county, as adjusted to carry out that order; and
2. The Department shall, on or before August 1 immediately following the issuance of the order or such a later date as the State Board may require:
(a) Audit the records of the county assessor of the county to the extent necessary to determine whether that order has been carried out; and
(b) Report to the State Board its findings concerning whether the county assessor has carried out that order.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.669 Reconsideration of order of State Board. (NRS 361.375, 361.395) The State Board may reconsider any order issued pursuant to NAC 361.665 in the manner provided in NAC 361.7475, except that:
1. A petition for reconsideration must be filed with the Secretary within 5 business days after the date on which the order was mailed to the petitioner; and
2. If the State Board takes no action on the petition within 10 business days after the date the petition was filed with the Secretary, the petition shall be deemed to be denied.
(Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010, eff. 10-1-2010)
PROCEEDINGS BEFORE STATE BOARD OF EQUALIZATION
General Provisions
NAC 361.682 Scope; construction; deviation. (NRS 361.375, 361.395)
1. The provisions of NAC 361.682 to 361.753, inclusive:
(a) Govern the practice and procedure in contested cases before the State Board.
(b) Except where inconsistent with the provisions of NAC 361.650 to 361.669, inclusive, apply to proceedings before the State Board to carry out the provisions of NRS 361.395.
(c) Will be liberally construed to secure the just, speedy and economical determination of all issues presented to the State Board.
2. In special cases, where good cause appears, not contrary to statute, deviation from these rules, if stipulated to by all parties of record, will be permitted.
[St. Bd. of Equalization, Practice Rules 1, 3 & 4, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006; R153-09, 4-20-2010, eff. 10-1-2010)
NAC 361.684 Definitions. (NRS 361.375, 361.395) As used in NAC 361.682 to 361.753, inclusive, unless the context otherwise requires:
1. “Affiliate” means a person, including, without limitation, a business entity, who, directly or indirectly controls, is controlled by or is under common control with another person.
2. “Assessor’s parcel number” means the number assigned by a county assessor to each piece of real property separately owned as it appears on the county assessment roll.
3. “Authorized agent” means a person who is authorized by:
(a) A party to represent him or her in a proceeding before the State Board, including, without limitation, an attorney; or
(b) The owner of any real or personal property placed on a tax roll, or a person employed by the owner or by an affiliate of the owner who is acting within the scope of his or her employment, to file an appeal with the State Board on behalf of the owner.
4. “Business entity” includes, without limitation, a sole proprietorship, a corporation, a general partnership, a limited partnership or a limited-liability company.
5. “Conclusion of law” means a determination of the law applicable to a finding of fact.
6. “Contact person” means a person designated by a party to receive communications concerning a proceeding before the State Board.
7. “County board” means a county board of equalization.
8. “Day” means a calendar day.
9. “Direct appeal” means an appeal from an assessment by a county assessor, the Department or the Commission directly to the State Board without appearing before or requesting relief from a county board. The term includes, without limitation, an appeal authorized in NRS 361.360, 361.402, 361.403, 361.769, 361A.273 or 362.135.
10. “Finding of fact” means a brief statement of the determination of issues of fact supported by evidence in the record or matters officially noticed.
11. “Identifying number” means the number assigned to each piece of personal property separately owned as represented by the county assessment rolls.
12. “Owner” has the meaning ascribed to it in NRS 361.334.
13. “Party” means a person, government, governmental agency or political subdivision of a government entitled to appear in a proceeding of the State Board. The term includes an intervener.
14. “Property” has the meaning ascribed to it in NRS 361.334.
15. “Secretary” means the Secretary of the State Board who is the Executive Director of the Department.
16. “Staff” means the staff of the Department. The term includes the Attorney General and the duly appointed deputies of the Attorney General when acting as legal advisers to the Department pursuant to NRS 228.110.
17. “State Board” means the State Board of Equalization.
[St. Bd. of Equalization, Practice Rules 5, 12 & 13, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006; R097-15, 1-27-2017)
NAC 361.685 “Owner” and “person employed” interpreted. (NRS 361.362, 361.375, 361.395) For the purposes of NRS 361.362 and NAC 361.682 to 361.753, inclusive, the State Board interprets the term:
1. “Owner” to include, without limitation:
(a) A partner of a general or limited partnership that owns a property;
(b) A member of a limited-liability company that owns a property; and
(c) A trustor of a trust that owns a property, if allowed under the terms of the trust.
2. “Person employed” to include, without limitation:
(a) A manager of a limited-liability company;
(b) An officer, director or incorporator of a corporation;
(c) A trustee of a trust, if allowed under the terms of the trust; and
(d) Any person, other than an owner of an entity, who is named in an initial or annual list that the entity is required to file with the Secretary of State in accordance with title 7 of NRS.
(Added to NAC by St. Bd. of Equalization by R097-15, eff. 1-27-2017)
NAC 361.686 Meetings: Notice; telephone conference; conduct. (NRS 361.375, 361.380)
1. The State Board will post notices for each meeting at the Carson City, Reno, Las Vegas and Elko offices of the Department 3 working days in advance of the meeting.
2. The State Board may conduct a meeting or any part thereof by means of a telephone conference call so long as it complies with the applicable provisions of chapter 241 of NRS.
3. A person appearing in a proceeding shall conform to the recognized standards of ethical and courteous conduct.
[St. Bd. of Equalization, Practice Rules 17 & 28, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
NAC 361.688 Communications. (NRS 361.375)
1. Informal communications must be addressed or delivered to the Secretary.
2. Informal communications from the staff or State Board must be signed by the responsible staff or member of the State Board.
3. Each communication must be limited to one subject and contain the name and address of the communicant and the appropriate assessor’s parcel number or legal description of any property pertaining to the subject of the communication.
[St. Bd. of Equalization, Practice Rules 14 & 16, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
Appeals on Behalf of Owners of Property
NAC 361.6892 Direct appeal to State Board on behalf of owner of property. (NRS 361.375, 361.395) The provisions of NRS 361.362, which are applicable to an appeal from a county board to the State Board pursuant to NRS 361.360 shall be deemed to apply to a direct appeal to the State Board.
(Added to NAC by St. Bd. of Equalization by R097-15, eff. 1-27-2017)
NAC 361.6894 Documentation to cure objection to written authorization to file appeal. (NRS 361.375, 361.395) A person who wishes to submit documentation to cure an objection to a written authorization from the owner of a property that authorizes the person to file an appeal with the State Board on behalf of the owner may submit, without limitation:
1. A current lease, contract or other agreement concerning the occupancy or use of the property;
2. A current management agreement concerning the property; or
3. The articles of incorporation, articles of organization, operating agreement, initial or annual list or other document that is filed with the Secretary of State pursuant to title 7 of NRS.
(Added to NAC by St. Bd. of Equalization by R097-15, eff. 1-27-2017)
NAC 361.6896 Scope of authority of person authorized to file appeal; information required to be included in written authorization to file appeal. (NRS 361.375, 361.395)
1. Unless the terms of a written authorization from the owner of a property that authorizes a person to file an appeal with the State Board on behalf of the owner provide otherwise, the person shall be deemed to have the authority on behalf of the owner to:
(a) Appear before the State Board;
(b) Represent the owner in all related hearings and matters;
(c) Receive all notices and decision letters related to the appeal;
(d) Enter into a stipulation or other agreement with the State Board or a party; and
(e) Withdraw the appeal.
2. A written authorization from the owner of a property that authorizes a person to file an appeal with the State Board on behalf of the owner of a property must identify the property, fiscal year and type of assessment roll to which the authorization applies. A person may not file an appeal with the State Board on behalf of the owner of a property for any property, fiscal year or type of assessment roll that is not identified in the written authorization.
(Added to NAC by St. Bd. of Equalization by R097-15, eff. 1-27-2017)
NAC 361.6898 Scope of authority of person employed by owner or affiliate of owner. (NRS 361.375, 361.395)
1. A person employed by the owner or an affiliate of the owner who is acting within the scope of his or her employment, in addition to the provisions of NRS 361.362:
(a) May:
(1) File an appeal from a county board or a direct appeal with the State Board on behalf of the owner concerning a valuation of the property;
(2) Sign a written authorization from the owner of a property that authorizes a person to file a direct appeal with the State Board on behalf of the owner concerning a valuation of the property; and
(3) Exercise any authority set forth in NAC 361.6896.
(b) Shall not be deemed an authorized agent of the owner.
2. For the purposes of this section, the valuation of a property includes the determination of a claim of exemption pursuant to NRS 361.155.
(Added to NAC by St. Bd. of Equalization by R097-15, eff. 1-27-2017)
Parties to Proceedings
NAC 361.690 Classification of parties. (NRS 361.375)
1. “Intervener” means a person, government, governmental agency or political subdivision of a government, other than an original party to a proceeding, who has been granted leave to intervene in a proceeding pursuant to NAC 361.692.
2. “Petitioner” means a party who initiates or commences an administrative proceeding before the State Board pursuant to the provisions of chapter 361 of NRS.
3. “Respondent” means a party who responds to an administrative proceeding initiated or commenced by a petitioner.
[St. Bd. of Equalization, Practice Rules 8-10, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.692 Interveners. (NRS 361.375)
1. A person, government, governmental agency or political subdivision of a government, other than an original party to any proceeding, who is directly and substantially affected by the proceeding must secure an order from the Secretary or the State Board granting leave to intervene before being allowed to participate. For the purposes of review by a court or an appeal, leave to intervene in any matter or proceeding is not a finding or determination of the Secretary or the State Board that the party will or may be a party aggrieved by any ruling, order or decision.
2. A petition for leave to intervene must be in writing and clearly identify the proceeding in which intervention is sought. The petition must include all the information required of a petition for a direct appeal pursuant to NAC 361.7012 and contain a clear and concise statement of the direct and substantial interest of the intervener in the proceeding, stating the manner in which the intervener will be affected by the proceeding and outlining the matters relied upon by him or her as a basis for the petition for leave to intervene. If affirmative relief is sought, the petition must contain a clear and concise statement of the relief sought and the basis for that relief, together with a statement as to the nature and quantity of evidence the intervener will present if his or her petition is granted.
3. A petition for leave to intervene must be filed with the Secretary and served on each party of record not less than 15 days before the date set for the commencement of the hearing.
4. If a petition for leave to intervene shows a direct and substantial interest in the subject matter of the proceeding or any part of the proceeding and does not unduly broaden the issues, the Secretary or the State Board may grant leave to intervene or otherwise appear and participate in the proceeding with respect to the matters set forth in the petition, subject to any reasonable conditions that may be prescribed.
5. If it appears during the course of a proceeding that an intervener has no direct or substantial interest in the proceeding, and that the public interest does not require his or her participation in the proceeding, the State Board may dismiss the intervener from the proceeding.
[St. Bd. of Equalization, Practice Rules 43-46, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.698 Qualifications of attorneys. (NRS 361.375, 361.385) If a party chooses to be represented by an attorney, the attorney must be one who is admitted to practice and in good standing before the highest court of any state of the United States.
[St. Bd. of Equalization, Practice Rule 27, eff. 10-14-77]
NAC 361.700 Limitations on representation of parties and appearance as expert witness by former employees of Department or Attorney General. (NRS 361.375, 361.385)
1. No former employee of the Department or member of the Attorney General’s staff may, at any time after severing his or her employment with the Department or the Attorney General, appear, except with the written permission of the State Board, in a representative capacity on behalf of other parties in a proceeding in which he or she previously took an active part as a representative of the State Board or Department.
2. No former employee of the Department may at any time after severing his or her employment with the Department, appear, except with the written permission of the State Board, as an expert witness on behalf of other parties in a proceeding in which he or she previously took an active part in the investigation or preparation as a representative of the Department.
[St. Bd. of Equalization, Practice Rules 29 & 30, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
Hearings
NAC 361.701 Petition for appeal of final decision of county board. (NRS 361.375, 361.395)
1. A person, including, without limitation, a county assessor, entitled to appeal the final decision of a county board to the State Board pursuant to NRS 361.155, 361.360, 361A.160, 361A.240 or 361A.273 must file a petition requesting the State Board to hear his or her appeal.
2. The petition must be on the form prescribed by the State Board and must include for the property on which the petitioner is appealing the valuation:
(a) The name of the property owner as it appears on the assessment roll that sets forth the valuation being appealed;
(b) The name, title, if any, and mailing address of the petitioner and the petitioner’s contact person, if any;
(c) The telephone number for daytime business hours, an alternate telephone number and facsimile transmission number, if available, of the petitioner and the petitioner’s contact person, if any;
(d) The electronic mail address of the petitioner and the petitioner’s contact person, if any;
(e) If the property owner is not a natural person:
(1) The organizational type of the entity that is the property owner, such as a sole proprietorship, trust, corporation, limited-liability company, general or limited partnership, government or governmental agency;
(2) The name of the state under the laws of which the entity was organized; and
(3) Whether the entity is a nonprofit organization;
(f) The physical address of the property or, in the case of personal property, of the place where the property is located, including the county and, if applicable, the city;
(g) The assessor’s parcel number or identifying number of the property;
(h) An indication of whether the appeal involves more than one property and, if so, the assessor’s parcel number or identifying number of each such property included in the appeal;
(i) The category of use of the property that best describes the primary use to which the property is put, including, without limitation:
(1) Vacant land;
(2) Residential property;
(3) Multifamily residential property;
(4) Possessory interest in real or personal property;
(5) Mobile home treated as personal property;
(6) Commercial property;
(7) Agricultural property;
(8) Mining property;
(9) Industrial property; or
(10) Personal property;
(j) The fiscal year and type of the assessment roll that sets forth the valuation being appealed;
(k) The taxable value and the assessed value established by the county board and the taxable value and assessed value sought by the petitioner for each component of the parcel such as land, improvements or personal property;
(l) A citation to each section of NRS that authorizes the State Board to hear the appeal;
(m) A brief description of the issues and contentions that constitute the basis of the appeal; and
(n) The name of the county board, the hearing or case number and the date the case was heard by the county board.
3. A petition submitted by a person other than a county assessor must include, in addition to the requirements of subsection 2:
(a) A description of the petitioner’s relationship to the owner of the property, such as that the petitioner is:
(1) The owner of the property;
(2) A co-owner of the property;
(3) A partner of a general or limited partnership that owns the property;
(4) A member of a limited-liability company that owns the property;
(5) A trustee of the trust that owns the property;
(6) An officer or director of a corporation that owns the property;
(7) A person employed by the owner of the property or an affiliate of the owner who is acting within the scope of his or her employment; or
(8) An employee or officer of a management company under a written agreement with the property owner that satisfies the conditions of NRS 361.362;
(b) If the petition includes the appointment of one of more authorized agents:
(1) A statement that expressly authorizes each authorized agent to perform some or all of the following:
(I) File a petition with the State Board on behalf of the owner of the property to contest the value or exemption, or both, established by the county board for the property for the fiscal year named in the petition;
(II) Receive all notices and decision letters related to the appeal; and
(III) Represent the petitioner in all related hearings and other matters related to the appeal, including, without limitation, the entry into a stipulation or the withdrawal of the appeal;
(2) The name, title, company name, if applicable, mailing address, telephone number for daytime business hours, alternate telephone number, facsimile transmission number and electronic mail address of each authorized agent; and
(3) An acknowledgment signed by each authorized agent expressly accepting the appointment and setting forth the date on which the authorized agent accepted the appointment; and
(c) A verification signed by a person who declares under penalty of perjury that:
(1) The information contained in the petition, including any accompanying statements or documents, is true, correct and complete to the best of his or her knowledge and belief;
(2) If the petition includes the appointment of one or more authorized agents pursuant to paragraph (b), the signatory is authorized to make the appointment; and
(3) The signatory is:
(I) The owner of the property, including, without limitation, a person who owns, controls or possesses in its entirety taxable property, including a leasehold interest, possessory interest, beneficial interest or beneficial use in the property;
(II) A person employed by the owner or an affiliate of the owner who is acting within the scope of his or her employment; or
(III) An authorized agent who is appointed pursuant to NAC 361.7018 and for whom the form described in that section is timely submitted to the State Board. An authorized agent appointed pursuant to paragraph (b) may not sign the verification.
Ê A person who verifies a petition pursuant to this paragraph must include his or her signature, title and the date on which he or she signs the verification.
4. A petition submitted by a county assessor must include, in addition to the requirements of subsection 2:
(a) The name and mailing address of the respondent and the respondent’s contact person, if any;
(b) The telephone number for daytime business hours, alternate telephone number and facsimile transmission number, if available, of the respondent or the respondent’s contact person, if any;
(c) The electronic mail address, if available, of the respondent or the respondent’s contact person, if any; and
(d) A verification signed by a person who declares under penalty of perjury that:
(1) The information contained in the petition, including any accompanying statements or documents, is true, correct and complete to the best of his or her knowledge and belief; and
(2) The signatory is the county assessor or the authorized representative of the assessor.
Ê A person who verifies a petition pursuant to this paragraph must include his or her signature, title and the date on which he or she signs the verification.
5. The State Board will provide a form of the petition to each county assessor and county clerk. The county assessor and county clerk shall make available a copy of the form to any person.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006; A by R097-15, 1-27-2017)
NAC 361.7012 Petition for direct appeal to State Board. (NRS 361.375, 361.395)
1. A person, including, without limitation, a county assessor or the Department, entitled to file a direct appeal must file a petition with the State Board requesting the State Board to hear the appeal.
2. The petition must be on the form prescribed by the State Board and must include for the property on which the petitioner is appealing the valuation:
(a) The name of the property owner as it appears on the assessment roll that sets forth the valuation being appealed;
(b) The name, title, if any, and mailing address of the petitioner and the petitioner’s contact person, if any;
(c) The telephone number for daytime business hours, an alternate telephone number and facsimile transmission number, if available, of the petitioner and the petitioner’s contact person, if any;
(d) The electronic mail address of the petitioner and the petitioner’s contact person, if any;
(e) If the property owner is not a natural person:
(1) The organizational type of the entity that is the property owner, such as a sole proprietorship, trust, corporation, limited-liability company, general or limited partnership, government or governmental agency;
(2) The name of the state under the laws of which the entity was organized; and
(3) Whether the entity is a nonprofit organization;
(f) The physical address of the property or, in the case of personal property, of the place where the property is located, including the county and, if applicable, the city;
(g) The assessor’s parcel number or other identifying number of the property;
(h) An indication of whether the appeal involves more than one property and, if so, the assessor’s parcel number or identifying number of each such property included in the appeal;
(i) The category of use of the property that best describes the primary use to which the property is put, including, without limitation:
(1) Vacant land;
(2) Residential property;
(3) Multifamily residential property;
(4) Possessory interest in real or personal property;
(5) Mobile home treated as personal property;
(6) Commercial property;
(7) Agricultural property;
(8) Mining property;
(9) Industrial property; or
(10) Personal property;
(j) The fiscal year and type of the assessment roll that sets forth the valuation being appealed;
(k) The taxable value and the assessed value established by the county assessor or the Department, as applicable, and the taxable value and assessed value sought by the petitioner for each component of the parcel such as land, improvements or personal property;
(l) A citation to each section of NRS that authorizes the State Board to hear the appeal; and
(m) A brief description of the issues and contentions that constitute the basis of the appeal.
3. A petition submitted by a person other than a county assessor or the Department must include, in addition to the requirements of subsection 2:
(a) A description of the petitioner’s relationship to the owner of the property, such as that the petitioner is:
(1) The owner of the property;
(2) A co-owner of the property;
(3) A partner of a general or limited partnership that owns the property;
(4) A member of a limited-liability company that owns the property;
(5) A trustee of the trust that owns the property;
(6) An officer or director of a corporation that owns the property;
(7) A person employed by the owner of the property or an affiliate of the owner who is acting within the scope of his or her employment; or
(8) An employee or officer of a management company under a written agreement with the property owner that satisfies the conditions of NRS 361.362;
(b) If the petition includes the appointment of one or more authorized agents:
(1) A statement that expressly authorizes each authorized agent to perform some or all of the following:
(I) File a petition with the State Board on behalf of the owner of the property to contest the value or exemption, or both, established by the county board for the property for the fiscal year named in the petition;
(II) Receive all notices and decision letters related to the appeal; and
(III) Represent the petitioner in all related hearings and other matters related to the appeal, including, without limitation, the entry into a stipulation or the withdrawal of the appeal;
(2) The name, title, company name, if applicable, mailing address, telephone number for daytime business hours, alternate telephone number, facsimile transmission number and electronic mail address of each authorized agent; and
(3) An acknowledgment signed by each authorized agent expressly accepting the appointment and setting forth the date on which the authorized agent accepted the appointment; and
(c) A verification signed by a person who declares under penalty of perjury that:
(1) The information contained in the petition, including any accompanying statements or documents, is true, correct and complete to the best of his or her knowledge and belief;
(2) If the petition includes the appointment of one or more authorized agents pursuant to paragraph (b), the signatory is authorized to make the appointment; and
(3) The signatory is:
(I) The owner of the property, including, without limitation, a person who owns, controls or possesses in its entirety taxable property, including a leasehold interest, possessory interest, beneficial interest or beneficial use in the property;
(II) A person employed by the owner or an affiliate of the owner who is acting within the scope of his or her employment; or
(III) An authorized agent who is appointed pursuant to NAC 361.7018 and for whom the form described in that section is timely submitted to the State Board. An authorized agent appointed pursuant to paragraph (b) may not sign the verification.
Ê A person who verifies a petition pursuant to this paragraph must include his or her signature, title and the date on which he or she signs the verification.
4. A petition submitted by a county assessor or the Department must include, in addition to the requirements of subsection 2:
(a) The name and mailing address of the respondent and the respondent’s contact person, if any;
(b) The telephone number for daytime business hours, alternate telephone number and facsimile transmission number, if available, of the respondent or the respondent’s contact person, if any;
(c) The electronic mail address, if available, of the respondent or the respondent’s contact person, if any; and
(d) A verification signed by a person who declares under penalty of perjury that:
(1) The information contained in the petition, including any accompanying statements or documents, is true, correct and complete to the best of his or her knowledge and belief; and
(2) The signatory is the county assessor or the authorized representative of the assessor or of the Department.
Ê A person who verifies a petition pursuant to this paragraph must include his or her signature, title and the date on which he or she signs the verification.
5. The State Board will annually provide a form of each type of petition to the Department, and each county assessor, who shall provide a copy of the form to any person upon request.
6. In addition to the information required pursuant to subsection 2 and subsection 3 or 4, a petitioner must submit:
(a) A statement reciting the facts, reasons and statutory basis relied upon to support the claim that the State Board should order a change in the taxable value or classification of the subject property;
(b) All evidence upon which the petition is based and which supports the claims therein;
(c) A copy of the final tax assessment notice for the year in question on the property that is the subject of the appeal; and
(d) A statement of the relief sought.
Ê This information must be submitted on the date of filing of the petition, if available, and if not available on the date of filing, not later than 20 days before the date established for the hearing.
7. If the appeal is from a valuation established pursuant to NRS 361.320 or 361.325, the petition must be filed not later than January 15 of the year immediately following the year in which the valuation was made.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006; A by R097-15, 1-27-2017)
NAC 361.7014 Action upon receipt of petition; case file. (NRS 361.375)
1. The State Board will acknowledge the receipt of each petition in writing.
2. The Secretary shall examine each petition upon receipt.
3. If the Secretary’s examination reveals that:
(a) The petition is untimely filed; or
(b) It appears that the State Board lacks jurisdiction to hear the appeal,
Ê the Secretary shall recommend to the State Board that it order the appeal to be dismissed. The recommended order must be placed on the consent agenda of the next meeting of the State Board for which public notice pursuant to NRS 241.020 has not yet been given, and the Secretary shall notify the petitioner, or the petitioner’s authorized agent, of the time and place of the meeting at which the recommended order will be considered.
4. If the Secretary’s examination reveals that:
(a) The petition is timely filed;
(b) The appeal appears to be within the jurisdiction of the State Board; and
(c) The petition satisfies the applicable requirements of NAC 361.701 or 361.7012,
Ê the Secretary shall assign a case number to the appeal, place the appeal on the State Board’s hearing docket and notify the petitioner and respondent that the case has been docketed for a hearing.
5. The Secretary shall, for each docketed case:
(a) Establish a case file;
(b) As each petition, exhibit, report, paper, pleading or other documentary evidence is received, mark it with the case number and place it in the case file; and
(c) If the appeal is from the final decision of a county board, notify the county clerk that the case has been docketed for a hearing and request the transmission of a certified copy of the record as set forth in NAC 361.645.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
NAC 361.7016 Consolidation of cases. (NRS 361.375)
1. If two or more docketed cases present substantially the same issues of fact, law or valuation, the State Board may, on its own motion or upon the request of a party, consolidate the cases for purposes of a hearing or written decision.
2. The State Board may move to consolidate cases at any time. A request for consolidation from a party must be filed with the State Board and served on all other parties not later than 30 days before the date established for the hearing.
3. A party who objects to the proposed consolidation of his or her case may request that his or her case be heard separately. The State Board will not proceed with a consolidated hearing until after it has ruled on the request for a separate hearing.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
NAC 361.7018 Notice of representation by authorized agent. (NRS 361.375, 361.395)
1. A petitioner who desires to be represented by an authorized agent must notify the State Board in writing. The notice may be filed with the State Board at any time before the commencement of the hearing. The State Board will accept a notice filed by facsimile transmission, but the original document must be filed with the State Board before the commencement of the hearing.
2. The written notification must be on the form prescribed by the State Board. The notice must include, for the property on which the petitioner is appealing the valuation and in connection with which the agent is being appointed:
(a) The name of the property owner as it appears on the assessment roll that sets forth the valuation being appealed;
(b) If the property owner is not a natural person:
(1) The organizational type of the entity that is the property owner, such as a sole proprietorship, trust, corporation, limited-liability company, general or limited partnership, government or governmental agency;
(2) The name of the state under the laws of which the entity was organized; and
(3) Whether the entity is a nonprofit organization;
(c) A statement to the effect that the agent is authorized to sign and file petitions, to receive all notices and decision letters related to the appeal and to represent the petitioner in all related hearings and matters, including, without limitation, the entry into a stipulation or the withdrawal of the appeal;
(d) Contact information, including the daytime telephone number, alternate telephone number, facsimile transmission number, mailing address and electronic mail address of the petitioner;
(e) A description of the petitioner’s relationship to the owner of the property, such as that the petitioner is:
(1) The owner of the property;
(2) A co-owner of the property;
(3) A partner of a general or limited partnership that owns the property;
(4) A member of a limited-liability company that owns the property;
(5) A trustee of the trust that owns the property;
(6) An officer or director of a corporation that owns the property;
(7) A person employed by the owner of the property or an affiliate of the owner who is acting within the scope of his or her employment; or
(8) An employee or officer of a management company under a written agreement with the property owner that satisfies the conditions of NRS 361.362;
(f) The physical address of the property or, in the case of personal property, of the place where the property is located, including the county and, if applicable, the city;
(g) The assessor’s parcel number or identifying number of the property;
(h) An indication of whether the appeal involves more than one property and, if so, the assessor’s parcel number or identifying number of each such property included in the appeal;
(i) The fiscal year and type of the assessment roll that sets forth the valuation being appealed;
(j) The name, title, company name, if applicable, mailing address, telephone number for daytime business hours, alternate telephone number, facsimile transmission number and electronic mail address of the authorized agent;
(k) The signature and title of the agent acknowledging that he or she has accepted the appointment as the authorized agent and the date on which he or she accepted the appointment; and
(l) A verification signed by a person who declares under penalty of perjury that:
(1) The information contained in the authorization, including any accompanying statements or documents, is true, correct and complete to the best of his or her knowledge and belief;
(2) The signatory has appointed the authorized agent named in the form and is authorized to make the appointment; and
(3) The signatory is:
(I) The owner of the property, including, without limitation, a person who owns, controls or possesses in its entirety taxable property, including a leasehold interest, possessory interest, beneficial interest or beneficial use in the property; or
(II) A person employed by the owner or an affiliate of the owner who is acting within the scope of his or her employment.
Ê A person who verifies an authorization pursuant to this paragraph must include his or her signature, title and the date on which he or she signs the verification.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006; A by R097-15, 1-27-2017)
NAC 361.702 Notice of hearing; duties of county assessor or representative of county assessor. (NRS 361.375)
1. The State Board will give reasonable notice of any hearing held before it to each party or the authorized agent of a party at the address of each of those persons as those addresses appear in the records of the Department.
2. The State Board will notify the appropriate county assessor of a hearing relating to any property in his or her county or which may have a direct effect upon his or her county. The county assessor or a representative of the county assessor shall:
(a) Attend any hearing specified in this subsection, unless otherwise directed by the State Board; and
(b) Make any presentation prescribed by the State Board.
[St. Bd. of Equalization, Practice Rules 19-21, eff. 10-14-77]—(NAC A 1-6-84; R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.703 Briefs, memoranda and other written explanations. (NRS 361.375)
1. The State Board may, at any time, require a party to submit a brief, memorandum or other written explanation. The State Board will prescribe:
(a) The time for filing;
(b) The number of copies that must be filed with the State Board; and
(c) The parties that must be served, if any.
2. If the State Board does not require submission of a brief, memorandum or other written explanation, a party may submit such a written explanation on his or her own initiative. Unless the State Board otherwise directs, the written explanation must be filed with the State Board and served on the other parties at least 20 days before the date established for the hearing.
3. A party may respond in writing to a brief, memorandum or other written explanation filed by another party. Unless the State Board otherwise directs, the written explanation must be filed with the State Board and served on the other parties not later than 10 days before the date established for the hearing.
4. A party served with a response to a brief, memorandum or other written explanation may reply in writing. Unless the State Board otherwise directs, the written explanation must be filed with the State Board and served on the other parties not later than 3 days after service of the response.
5. A party must not include in or attach to his or her brief, memorandum or other written explanation an exhibit, paper, report or other documentary evidence that is included in the record submitted to the State Board.
6. A brief, memorandum or other written explanation filed with the State Board pursuant to this section may be filed electronically, but the State Board may require a party to file the original document.
7. Unless otherwise provided by the State Board, the Secretary may perform any administrative function of the State Board set forth in this section.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
NAC 361.705 Motions by parties; action by State Board on its own motion. (NRS 361.375)
1. A party may make a motion orally during a hearing or in writing.
2. A motion must state with particularity the relief or order sought and identify the reason or authority pursuant to which the motion is made.
3. A written motion must be filed with the State Board and served on all parties not later than 20 days before the date established for the hearing.
4. A party against whom a motion is directed may respond to the motion:
(a) Orally, if the motion is made during the hearing; or
(b) In writing, if the motion is made before the hearing. A written response must be filed with the State Board and served on all parties within 10 days after service of the motion.
5. A party who has made a motion in writing and been served with a written response may, within 7 days after service of the response, reply to the response in a writing filed with the State Board and served on all parties.
6. The State Board may, for good cause, take action on its own motion. Unless its motion is made orally during the hearing, the State Board will serve each party with notice of its intent to take action and the reasons therefore. A party who receives the State Board’s notice of intent and wishes to object to it must file his or her objection in writing with the State Board within 10 days after service of the notice. The State Board’s notice of intent must advise a party of his or her right to file a written objection.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
NAC 361.706 Continuances. (NRS 361.375)
1. The State Board may, upon good cause shown, grant a continuance:
(a) To defer a hearing to another day or time; or
(b) To extend the time for a pleading, motion or other document to be filed or served.
2. Unless otherwise provided by the State Board, the Secretary may perform any function of the State Board set forth in this section.
[St. Bd. of Equalization, Practice Rule 37, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.708 Appearance of parties; failure to appear. (NRS 361.375, 361.395)
1. A party may appear in person or by his or her authorized agent. The appearance of a person employed by the party or an affiliate of the party who is acting within the scope of his or her employment shall be deemed the appearance of the party.
2. If the property the valuation of which is the subject of a hearing is owned by more than one person, the appearance of any owner or person employed by any owner or an affiliate of any owner who is acting within the scope of his or her employment shall be deemed the appearance of the party.
3. If a party is a business entity, it may appear by any owner or person employed by any owner or an affiliate of any owner who is acting within the scope of his or her employment or by an authorized agent.
4. At the time and place set for the hearing, if a party fails to appear, the State Board may:
(a) Proceed with the hearing;
(b) Dismiss the proceeding with or without prejudice; or
(c) Recess the hearing for a period to be set by the State Board to enable the party to attend.
[St. Bd. of Equalization, Practice Rule 31, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006; R097-15, 1-27-2017)
NAC 361.712 Subpoenas. (NRS 360.240, 361.375)
1. Subject to the restrictions imposed by NRS 360.240, the Secretary may, on his or her own initiative or at the request of a party, issue a subpoena requiring the attendance of a witness for the purpose of taking the testimony of the witness orally before the State Board or compelling the production of books, papers or other documents.
2. A petitioner or respondent desiring a subpoena must submit an application in writing to the Secretary stating the reasons why the subpoena is requested. If the application is for a subpoena for the production of books, papers or other documents, the application must identify, as clearly as may be, the books, papers or other documents desired.
3. The application must be filed with the Secretary and served on all parties at least 20 days before the date established for the hearing.
4. The Secretary, not later than 5 days after he or she receives an application for a subpoena, shall:
(a) Grant the application and issue the subpoena;
(b) Modify the application and issue the subpoena; or
(c) Deny the application.
5. The person to whom the subpoena is directed may request in writing that the Secretary modify or quash the subpoena. The Secretary shall grant this request if he or she determines that the subpoena is unreasonable or oppressive.
6. If the Secretary issues a subpoena at the request of a party, the party must arrange for service of the subpoena and bear the expense of such service.
7. If the Secretary denies the request of a party for a subpoena, the party may appeal the denial to the State Board.
[St. Bd. of Equalization, Practice Rule 23, eff. 12-9-77]—(NAC A by R029-05, 6-28-2006)
NAC 361.714 Testimony must be under oath. (NRS 361.375)
1. Oral evidence will be taken only upon oath or affirmation administered by:
(a) The Secretary;
(b) A member of the State Board; or
(c) A member of the staff who has been designated for that purpose by the State Board.
2. Before testifying, each person must swear or affirm that the testimony he or she is about to give will be the truth, the whole truth and nothing but the truth.
[St. Bd. of Equalization, Practice Rule 25, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.720 Official notice of State Board. (NRS 361.375) The State Board may take official notice of the following matters:
1. Rules, regulations, official reports, decisions and orders of the Commission, the State Board or any agency of the State.
2. Matters of common knowledge and technical or scientific facts of established character.
3. Official documents, if pertinent, when properly introduced into the record of formal proceedings by reference if proper and definite reference to the document is made by the party offering it and it is published and generally circulated so that all of the parties of interest at the hearing have an opportunity to examine it and present rebuttal evidence.
4. Matters which may be judicially noticed by the courts of the State.
[St. Bd. of Equalization, Practice Rule 38, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
NAC 361.721 Format of documents. (NRS 361.375, 361.395) All petitions, pleadings, briefs, correspondence, notices and other written documents filed with the State Board must be on white paper that is 8 1/2 by 11 inches in size and must be legibly written, printed or typewritten on one side of the paper only.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006; A by R097-15, 1-27-2017)
NAC 361.723 Filing and receipt of documents; admission of late document into evidence. (NRS 361.375)
1. Any petition, pleading, brief, correspondence, notice or other written document required or authorized to be filed with the State Board may be filed in person or by facsimile machine, United States mail or third-party delivery service.
2. A document filed in person or by facsimile machine must be received by the State Board not later than 5 p.m. on the last day for filing the document set forth in the applicable statute or regulation. The State Board will stamp each document filed with the date and time it is received. A document is presumed to have been received at the date and time shown on the stamp.
3. Except as otherwise provided in this subsection, a document filed by mail or third-party delivery service is timely filed if it is deposited with the post office or delivery service, correctly addressed, postage prepaid and postmarked not later than the last day for filing the document set forth in the applicable statute or regulation. A postmark provided by a postage meter does not establish that a document is timely filed.
4. If the last day set forth in a statute or regulation for the performance of an act falls on a Saturday, Sunday or legal holiday, the act is timely if it is performed on the next business day. For the purposes of this section, the performance of an act includes, without limitation, filing a document with the State Board and serving a document on a party.
5. The State Board will not admit into evidence a document that is not timely filed as set forth in this section except upon a motion for its admission pursuant to NAC 361.705.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
NAC 361.724 Service of documents; certificate of service. (NRS 361.375)
1. A document that is required to be served on another party may be served on the party or authorized agent of the party.
2. A document that is required to be served on a party may be served in person or by regular mail.
3. If service is made by mail, the document must be deposited in the post office, properly addressed to the person being served, with postage prepaid, not later than the date set forth in the applicable regulation or order of the State Board.
4. With all documents required to be served, an acknowledgment of service or substantially the following certificate must be included:
CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document upon all parties of record in this proceeding (by delivering a copy thereof in person to .........................) (by mailing a copy thereof, properly addressed, with postage prepaid to .........................).
Dated at this ............. day of the month of ........... of the year .........
...................................
Signature
[St. Bd. of Equalization, Practice Rule 15, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
NAC 361.726 Additional information and appraisal. (NRS 361.375) The State Board will order any additional information it deems necessary to determine the correct taxable value of any property under consideration and, if necessary, order the Department’s appraisers to view or appraise the property and to prepare for the State Board an estimate of its value or other relevant testimony and evidence.
[St. Bd. of Equalization, Practice Rule 35, eff. 10-14-77]—(NAC A 1-6-84; R029-05, 6-28-2006)
NAC 361.729 Testimony before State Board: Authority to testify; person who unlawfully acts as appraiser of real estate. (NRS 361.375)
1. Any person may testify before the State Board on behalf of a party.
2. If a person testifying before the State Board represents to the State Board that he or she is an appraiser of real estate but has not obtained a certificate, license or permit required by chapter 645C of NRS, the State Board will, unless the circumstances of the case otherwise require, give the person’s testimony the same weight given to the testimony of a person who is not an appraiser.
3. If a person specified in subsection 2 receives or expects to receive any form of compensation for an analysis, opinion or conclusion concerning the nature, quality, value or use of property the value of which is before the State Board, the State Board will inform the person that:
(a) It is unlawful to act or assume to act as an appraiser of real estate in this State without first obtaining the appropriate certificate, license or permit pursuant to chapter 645C of NRS; and
(b) The State Board may notify the Real Estate Division of the Department of Business and Industry of his or her conduct.
4. Upon informing a person pursuant to subsection 3, the State Board may notify the Real Estate Division of the Department of Business and Industry of the conduct specified in that subsection.
(Added to NAC by St. Bd. of Equalization by R018-97, eff. 12-19-97; A by R029-05, 6-28-2006)
NAC 361.731 Transcripts. (NRS 361.375) If a party wishes to obtain a transcript of any hearing conducted before the State Board, the party must:
1. Provide a reporter, if a reporter is not provided by the State Board for the hearing;
2. Pay for the transcript or obtain a copy from the reporter provided by the State Board at the party’s expense; and
3. Provide a copy of the transcript to the Secretary, if requested.
(Added to NAC by St. Bd. of Equalization by R018-97, eff. 12-19-97; A by R029-05, 6-28-2006)
NAC 361.733 Direct appeal: Rights of petitioner, respondent and staff. (NRS 361.375) During any hearing of a direct appeal, the petitioner, respondent and staff, through the presiding member of the State Board, may:
1. Call and examine witnesses concerning any matter relevant to the issues of the case.
2. Introduce exhibits relevant to the issues of the case.
3. Direct any question to an opposing witness that the State Board determines is relevant to the issues of the case.
4. Impeach any witness, regardless of which party first called the witness to testify.
5. Offer rebuttal evidence.
6. Call any person who, because of his or her relationship to any other party, may be an adverse witness and examine the person as an adverse witness.
[St. Bd. of Equalization, Practice Rule 26, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.735 Direct appeal: Burden of proof; receipt of evidence. (NRS 361.375) In any hearing of a direct appeal:
1. The petitioner has the burden of proof.
2. Evidence will ordinarily be received from the parties in the following order:
(a) A brief orientation by the county assessor or the county assessor’s staff;
(b) The petitioner;
(c) The respondent;
(d) Interveners;
(e) Rebuttal by the petitioner; and
(f) Rebuttal by the respondent.
3. The Secretary or a person the Secretary has designated shall mark, record and file all exhibits submitted at the hearing.
[St. Bd. of Equalization, Practice Rules 33 & 36, eff. 10-14-77]—(NAC A 1-6-84; R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.737 Direct appeal: Rules of evidence; depositions; exchange of names of witnesses and copies of evidence. (NRS 361.375) In any hearing of a direct appeal:
1. The hearing will not be conducted according to the technical rules of evidence and procedure as practiced in civil actions. Except as otherwise provided in NAC 361.745 or by a specific statute, any relevant evidence may be admitted, if it is of a type commonly relied upon by reasonable and prudent persons in the conduct of their affairs, regardless of whether the evidence is subject to objection in civil actions.
2. Hearsay evidence, as that term is used in civil actions, may be admitted to supplement or explain other evidence, but it is not sufficient by itself to support findings of fact unless it is admissible over objection in civil actions.
3. The rules of privilege will be applied as they are applied in civil actions.
4. Irrelevant, cumulative and unduly repetitious evidence is not admissible, nor is incompetent evidence, as that term is used in civil trials, with the exception of hearsay evidence as provided in subsection 2.
5. The parties or their counsel may, by written stipulation, agree that certain specified evidence may be admitted, regardless of whether the evidence is otherwise subject to objection.
6. The State Board may:
(a) Cause the depositions of witnesses to be taken in the manner prescribed by law and the rules of the court for depositions in civil actions.
(b) Upon the motion of a party or the person from whom the deposition is sought, and upon a showing of good cause, prohibit, restrict or modify the scope of the deposition.
Ê Unless the State Board otherwise directs, all depositions conducted pursuant to this section must be completed not later than 10 days before the date established for the hearing. A party may file a motion with the State Board asking that depositions be completed earlier or later. The State Board will grant such a motion on a showing of good cause.
7. A party that objects to the admission or exclusion of any piece of evidence must, at the time the party makes his or her objection, briefly state the grounds on which he or she objects.
8. If the State Board sustains an objection to the admission of certain evidence, the party offering the evidence may make an offer of proof for the record. An offer of proof must consist of a statement of the substance of the evidence to which objection has been sustained. An offer of proof must be included in the record.
9. The failure of a party to enter a timely objection to the admission or exclusion of a piece of evidence constitutes a waiver of the party’s right to object.
10. Not later than 10 days before the date established for the hearing, a party shall provide all other parties with:
(a) The names of each witness that the party expects to call to offer testimony at the hearing.
(b) A copy of each exhibit, paper or other documentary evidence that the party expects to introduce at the hearing.
[St. Bd. of Equalization, Practice Rules 32 & 39, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.738 Appeal of decision of county board: Submission of certain evidence prohibited; removal of certain evidence from record authorized. (NRS 361.375, 361.395)
1. A person who files with the State Board an appeal from the final decision of a county board shall not submit to the State Board a copy of any exhibit, paper, report or other documentary, audio or video evidence that was submitted to the county board in the proceedings that are the subject of the appeal.
2. The staff of the State Board may remove from the record of the State Board any material submitted in violation of subsection 1.
(Added to NAC by St. Bd. of Equalization by R097-15, eff. 1-27-2017)
NAC 361.739 Appeal of decision of county board: Introduction of new evidence. (NRS 361.360, 361.375, 361.400)
1. In a hearing of an appeal of a decision of a county board, a party that wishes to introduce evidence that was not submitted to the county board in the first instance must:
(a) Satisfy the State Board that the new evidence could not, by due diligence, have been discovered or secured before the final adjournment of the county board; and
(b) Submit the evidence in writing to the State Board and all parties of record not less than 7 business days before the hearing on the matter.
2. For the purposes of this section:
(a) A new summary or extract prepared from evidence that was submitted to a county board in the first instance is not new evidence.
(b) The State Board interprets “days” as used in NRS 361.360 to mean calendar days.
(Added to NAC by St. Bd. of Equalization by R018-97, eff. 12-19-97; A by R029-05, 6-28-2006)
NAC 361.741 Appeal of decision of county board: Burden of proof; order and length of presentations. (NRS 361.375) In a hearing concerning an appeal from a decision of a county board:
1. The petitioner has the burden of proof.
2. The order and length of presentations will ordinarily be:
(a) A brief orientation by the county assessor or the county assessor’s staff;
(b) A presentation of not more than 15 minutes by the petitioner;
(c) A presentation of not more than 15 minutes by the respondent; and
(d) A rebuttal of not more than 5 minutes by the petitioner.
3. If the State Board allows a party, pursuant to NRS 361.360 and 361.400 and NAC 361.739, to present new evidence, the State Board will extend the length of the party’s presentation by the time required to present the evidence and, in the case of new testimony, for the State Board to question the witness.
(Added to NAC by St. Bd. of Equalization by R018-97, eff. 12-19-97; A by R029-05, 6-28-2006)
NAC 361.745 Direct appeal: Consideration of issues, contentions and evidence outside scope of petition. (NRS 361.375)
1. Except as otherwise provided in this section, in a direct appeal, the State Board will limit its consideration to the issues and contentions set forth in the petition for a hearing before the State Board.
2. Issues, contentions and evidence beyond the scope of the petition may be considered by the State Board if:
(a) New issues, contentions and evidence are discovered which could not by due diligence have been discovered and presented in the petition; and
(b) The issues, contentions and evidence are set forth in an addendum to the petition.
3. The addendum to the petition must be submitted in writing to the State Board and each party not less than 15 days before the hearing of the appeal. The addendum must include:
(a) A statement reciting the facts, reasons and statutory basis relied upon to support each claim raised in the addendum;
(b) All evidence upon which the addendum to the petition is based and which supports the claims therein; and
(c) A statement of the relief sought.
4. Each party is entitled to respond to any such issue, contention or evidence:
(a) In a brief, memorandum or other written document as set forth in NAC 361.703; and
(b) Orally, at the hearing.
[St. Bd. of Equalization, Practice Rule 34, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)
NAC 361.747 Submission of case for decision; decision of State Board; correction of clerical mistake in record. (NRS 361.375)
1. After the hearing of a contested case, and the receipt by the State Board of all posthearing briefs or the expiration of the time prescribed by the State Board for submitting such briefs, if any, the case shall stand submitted for decision.
2. In reaching its decision in a contested case, the State Board:
(a) Will make an independent valuation of the property that is the subject of the appeal. This valuation may be different from any valuation proposed by a party to the appeal.
(b) May sustain, reverse or modify, in whole or in part, any decision appealed to it.
(c) If the appeal is brought pursuant to subsection 1 of NRS 361.360, may determine the question of whether real or personal property is exempt from taxation pursuant to any provision of NRS 361.045 to 361.187, inclusive.
3. The staff shall prepare the State Board’s final decision on the issues presented in the hearing pursuant to the direction and with the approval of the State Board. The draft of each decision must be approved by the Chair of the State Board before being issued.
4. The State Board’s final decision in a contested case will be written and will include separate findings of fact and conclusions of law based upon substantial evidence or matters officially noticed. After a case stands submitted for decision, the State Board may request proposed findings of fact and conclusions of law from a party.
5. The Department shall serve a copy of the State Board’s decision upon each party of record, any representative of a party of record and each member of the State Board, in person or by certified mail, within 60 days after the date of the decision.
6. Except as otherwise provided in this subsection, a clerical mistake in a decision, order or any other part of the record of the State Board may be corrected by the staff on its own initiative or on the motion of a party. If the record of the State Board is before a court pursuant to NRS 361.410 to 361.435, inclusive, a clerical mistake may be corrected only as directed by the court.
[St. Bd. of Equalization, Practice Rules 41, 42 & part Practice Rule 50, eff. 10-14-77]—(NAC A 1-6-84; R029-05, 6-28-2006)
NAC 361.7475 Petition for reconsideration: Filing and contents; answer; grant or denial. (NRS 361.375, 361.420)
1. A party who believes that a decision or order of the State Board, or any portion thereof, is:
(a) Unlawful;
(b) Unreasonable; or
(c) Based on findings of fact or conclusions of law that are erroneous,
Ê may file a petition for reconsideration. The petition must be filed with the State Board and served on all parties within 15 days after the date of service of the decision or order.
2. A petition for reconsideration must:
(a) Identify with precision each portion of the decision or order that the party alleges is unlawful, unreasonable or erroneous.
(b) Cite with specificity those portions of the record, the statutes or regulations that support the allegations in the petition. The petition must not include additional evidence or request the submission or taking of new evidence.
3. A party may submit an answer in opposition to a petition for reconsideration. The answer must be filed with the State Board and served on all other parties within 5 days after the date of service of the petition for reconsideration. The answer must be limited to the issues raised in the petition for reconsideration.
4. The State Board will grant or deny, in whole or in part, a timely filed petition for reconsideration within 60 days after the date of service of the final decision. If the State Board takes no action within the 60 days, the petition shall be deemed to be denied.
5. Unless otherwise provided by the State Board, the filing of a petition for reconsideration or the granting of such a petition by the State Board does not excuse compliance with or suspend the effectiveness of the challenged decision or order.
6. If the State Board grants a petition for reconsideration, it will reexamine the decision or order and the record with regard to the issues on which it granted reconsideration. After this reexamination, the State Board will issue a modified final order or reaffirm its original order.
7. A modified final decision or order incorporates all portions of the original decision or order not modified. A modified final decision or order, or the original decision or order if reaffirmed, is the final decision of the State Board.
8. For the purposes of NRS 361.420, the date of the issuance of the decision of the State Board denying relief is:
(a) If the State Board grants a petition for reconsideration, the date the State Board issues its modified final decision or order or reaffirms its original decision or order; or
(b) If the State Board denies a petition for reconsideration, the date the petition is denied or deemed to be denied.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
NAC 361.748 Action for redress from finding of State Board. (NRS 361.375) A person who commences an action pursuant to NRS 361.410 to 361.435, inclusive, for redress from a finding of the State Board shall serve a copy of the summons, complaint or petition on the Department.
(Added to NAC by St. Bd. of Equalization by R029-05, eff. 6-28-2006)
Advisory Opinions
NAC 361.749 Petitions: Authority; form and contents. (NRS 361.375)
1. Any person may petition for an advisory opinion concerning matters within the jurisdiction of the Department or State Board.
2. All petitions must be in writing, be addressed to the Secretary and set forth at least the following:
(a) A statement that an advisory opinion is requested;
(b) A succinct statement of all the facts and circumstances necessary to dispose of the petition;
(c) A clear, simple statement of the issue or question to be resolved;
(d) A statement of all statutes, rules, agency decisions or other authorities which the petitioner believes may be relevant in disposing of the petition; and
(e) A statement with supporting arguments and authorities of the petitioner’s opinion of a proper disposition of the petition.
[St. Bd. of Equalization, Practice Rule 48, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
NAC 361.751 Jurisdiction. (NRS 361.375) Since the State Board’s jurisdiction is limited to the equalization of the assessed valuation of property, the Secretary may respond to any request for an advisory opinion as being directed to the Commission.
[St. Bd. of Equalization, part Practice Rule 49, eff. 10-14-77]—(NAC A 1-6-84; R029-05, 6-28-2006)
NAC 361.753 Opinions: Form; contents; issuance; delivery; appeals. (NRS 361.375)
1. Advisory opinions must:
(a) Be written;
(b) Include a statement of facts, question, analysis and opinion;
(c) Be issued by the Secretary within 45 days after filing of the petition unless the Secretary, in writing, orders an extension of time up to a maximum of 60 days after filing; and
(d) Be delivered to the petitioner in person or by certified mail.
2. Advisory opinions of the Secretary are appealable to the State Board in the same manner as any other valuation decision.
[St. Bd. of Equalization, part Practice Rules 49 & 50, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)
ALLOCATION OF REDUCTIONS IN TAX REVENUE RESULTING FROM CERTAIN PARTIAL ABATEMENTS OF TAXES
General Provisions
NAC 361.760 Entity-adjusted parcel tax rate: Calculation and use. (NRS 361.4733)
1. For the purpose of calculating any amount required to be deducted pursuant to subsection 4 of NRS 361.4722, subsection 3 of NRS 361.4723 or subsection 3 of NRS 361.4724 for a fiscal year from the amount any taxing entity would otherwise be entitled to receive from the ad valorem taxation of a parcel or other taxable unit of property, the entity-adjusted parcel tax rate of each taxing entity must be used to determine:
(a) The rate of ad valorem taxes levied in the county on that property by or on behalf of each taxing entity for that fiscal year; and
(b) The combined rate of all ad valorem taxes levied in the county on that property by or on behalf of all taxing entities for that fiscal year.
2. For the purposes of this section, the “entity-adjusted parcel tax rate” of a taxing entity means the rate of ad valorem taxes imposed by or on behalf of that taxing entity upon a parcel or other taxable unit of property for a fiscal year, as calculated by:
(a) Multiplying the actual rate of ad valorem taxes levied by or on behalf of that taxing entity for that fiscal year by the assessed value of that property for that fiscal year;
(b) Subtracting from the amount determined pursuant to paragraph (a) any amount deducted for that fiscal year pursuant to paragraph (c) of subsection 1 of NAC 361.781 from the amount that taxing entity would otherwise be entitled to receive from the ad valorem taxation of that property; and
(c) Dividing the amount determined pursuant to paragraph (b) by the assessed value of that property for that fiscal year to determine that entity-adjusted parcel tax rate.
(Added to NAC by Com. on Local Gov’t Finance by R044-06, eff. 5-4-2006; A by R023-08, 4-17-2008)—(Substituted in revision for NAC 361.611)
Property Located Outside of Redevelopment Area or Tax Increment Area
NAC 361.765 Definitions. (NRS 361.4733) As used in NAC 361.765 to 361.781, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.767 to 361.779, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.767 “Combined overlapping adjusted tax rate” defined. (NRS 361.4733) “Combined overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.769 “Combined overlapping tax rate” defined. (NRS 361.4733) “Combined overlapping tax rate” has the meaning ascribed to it in NRS 361.4715.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.771 “Entity-adjusted parcel tax rate” defined. (NRS 361.4733) “Entity-adjusted parcel tax rate” has the meaning ascribed to it in NAC 361.760.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.773 “Entity parcel tax rate increase” defined. (NRS 361.4733) “Entity parcel tax rate increase” means:
1. Except as otherwise provided in subsection 2, the remainder obtained by subtracting the entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the rate of ad valorem taxes imposed by or on behalf of that taxing entity on that parcel or other taxable unit of property for the current fiscal year; or
2. If the remainder determined pursuant to subsection 1 is a negative number, zero.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.775 “Redevelopment area” defined. (NRS 361.4733) “Redevelopment area” means a redevelopment area, as defined in NRS 279.410, regarding which any taxes levied on property in that area are distributed as provided in NRS 279.676.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.777 “Tax increment area” defined. (NRS 361.4733) “Tax increment area” means a tax increment area, as defined in NRS 278C.130, regarding which any taxes levied on property in that area are distributed as provided in NRS 278C.250.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.779 “Taxing entity” defined. (NRS 361.4733) “Taxing entity” has the meaning ascribed to it in NRS 361.4721.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
NAC 361.781 Calculation of deductions from amounts taxing entities otherwise entitled to receive. (NRS 361.4733)
1. Except as otherwise provided in subsection 2 or required to carry out the provisions of NRS 361.4732:
(a) On or before August 1 of each fiscal year, the tax receiver of each county shall determine for each parcel or other taxable unit of property located in that county, other than any property to which paragraph (b) applies, for which the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year, the amount which equals the lesser of:
(1) The amount of any partial abatement of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the current fiscal year; or
(2) The product of the assessed value of the property for the current fiscal year and the difference between:
(I) The combined overlapping tax rate applicable to the property for the current fiscal year; and
(II) The combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year.
(b) On or before August 1 of each fiscal year, the Department shall determine for each parcel or other taxable unit of property which is valued pursuant to NRS 361.320 or 361.323 and for which the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year, the amount which equals the lesser of:
(1) The amount of any partial abatement of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the current fiscal year; or
(2) The product of the assessed value of the property for the current fiscal year and the difference between:
(I) The combined overlapping tax rate applicable to the property for the current fiscal year; and
(II) The combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year.
(c) That portion of the amount of any reduction in the ad valorem taxes levied on any parcel or other taxable unit of property as a result of the application of NRS 361.4722, 361.4723 and 361.4724 which is determined pursuant to paragraph (a) or (b) must be deducted from the amount of ad valorem taxes that would otherwise be distributed to the taxing entities whose entity parcel tax rate increase is greater than zero in proportion to their respective entity parcel tax rate increases.
(d) Each calculation required pursuant to this section must be:
(1) Calculated separately for each parcel or other taxable unit of property; and
(2) Recalculated for each fiscal year.
2. The provisions of this section must not be applied in any manner that:
(a) Would provide for the abatement of any increase in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or
(b) Would not allocate the revenue from any increase in ad valorem taxes described in paragraph (a) to the taxing entity who levies that increase or on behalf of whom that increase is levied.
3. As used in this section, “property” means property which is located outside of any redevelopment area or tax increment area.
(Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)
Property Located in Redevelopment Area or Tax Increment Area
NAC 361.785 Definitions. (NRS 361.4733) As used in NAC 361.785 to 361.821, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.787 to 361.811, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.787 “Combined overlapping adjusted tax rate” defined. (NRS 361.4733) “Combined overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.789 “Debt tax rate” defined. (NRS 361.4733) “Debt tax rate” means the rate of ad valorem taxes levied by or on behalf of a taxing entity in a fiscal year for the payment of the bonded indebtedness of that taxing entity, as included in the combined tax rate certified by the Commission for that fiscal year in accordance with NRS 361.4547.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.791 “Entity-adjusted parcel tax rate” defined. (NRS 361.4733) “Entity-adjusted parcel tax rate” has the meaning ascribed to it in NAC 361.760.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.793 “Entity-adjusted parcel tax rate increase” defined. (NRS 361.4733) “Entity-adjusted parcel tax rate increase” means:
1. Except as otherwise provided in subsection 2, the remainder obtained by subtracting the entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the entity-adjusted parcel tax rate of that taxing entity applicable to that property for the current fiscal year; or
2. If the remainder determined pursuant to subsection 1 is a negative number, zero.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.795 “Entity parcel tax rate increase” defined. (NRS 361.4733) “Entity parcel tax rate increase” means:
1. Except as otherwise provided in subsection 2, the remainder obtained by subtracting the entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the rate of ad valorem taxes imposed by or on behalf of that taxing entity on that property for the current fiscal year; or
2. If the remainder determined pursuant to subsection 1 is a negative number, zero.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.797 “Entity percentage allowed parcel tax rate increase” defined. (NRS 361.4733) “Entity percentage allowed parcel tax rate increase” means:
1. Except as otherwise provided in subsection 2, the percentage obtained by dividing the entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property by the entity parcel tax rate increase of that taxing entity applicable to that property; or
2. If the entity parcel tax rate increase of a taxing entity applicable to a parcel or other taxable unit of property is zero, 100 percent.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.799 “Parcel effective assessed value” defined. (NRS 361.4733) “Parcel effective assessed value” means the amount calculated by dividing the dollar amount of ad valorem taxes levied on a parcel or other taxable unit of property, after taking into account any applicable partial abatement of taxes pursuant to NRS 361.4722, 361.4723 or 361.4724, by the combined overlapping adjusted tax rate applicable to that property.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.801 “Parcel effective incremental value” defined. (NRS 361.4733) “Parcel effective incremental value” means:
1. Except as otherwise provided in subsection 2, the remainder obtained by subtracting the parcel share of base value of a parcel or other taxable unit of property from the parcel effective assessed value of that property; or
2. If the remainder determined pursuant to subsection 1 is a negative number, zero.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.803 “Parcel share of base value” defined. (NRS 361.4733) “Parcel share of base value” means, for a parcel or other taxable unit of property located in a:
1. Redevelopment area, the product obtained by multiplying the base value of the taxable property in the redevelopment area, as determined in accordance with the provisions of paragraph (a) of subsection 1 of NRS 279.676, by the quotient obtained by dividing the parcel effective assessed value of that parcel or other taxable unit of property by the sum of the parcel effective assessed values of all the parcels and other taxable units of property in that redevelopment area.
2. Tax increment area, the product obtained by multiplying the base value of the taxable property in the tax increment area, as determined in accordance with the provisions of subparagraph (1) of paragraph (a) of subsection 1 of NRS 278C.250, by the quotient obtained by dividing the parcel effective assessed value of that parcel or other taxable unit of property by the sum of the parcel effective assessed values of all the parcels and other taxable units of property in that tax increment area.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.805 “Property” defined. (NRS 361.4733) “Property” means property located in a redevelopment area or tax increment area.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.807 “Redevelopment area” defined. (NRS 361.4733) “Redevelopment area” means a redevelopment area, as defined in NRS 279.410, regarding which any taxes levied on property in that area are distributed as provided in NRS 279.676.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.809 “Tax increment area” defined. (NRS 361.4733) “Tax increment area” means a tax increment area, as defined in NRS 278C.130, regarding which any taxes levied on property in that area are distributed as provided in NRS 278C.250.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.811 “Taxing entity” defined. (NRS 361.4733) “Taxing entity” has the meaning ascribed to it in NRS 361.4721.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.813 Calculations: General requirements. (NRS 361.4733)
1. Except as otherwise provided in NAC 361.785 to 361.821, inclusive, each calculation required pursuant to those provisions must be:
(a) Calculated separately for each parcel or other taxable unit of property; and
(b) Recalculated for each fiscal year.
2. For the purposes of NAC 361.785 to 361.821, inclusive, the entity-adjusted parcel tax rate applicable to a parcel or other taxable unit of property must be calculated in the same manner as if the property was not located in a redevelopment area or tax increment area.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.815 Distribution of ad valorem taxes collected on property for which parcel effective incremental value is zero. (NRS 361.4733) The ad valorem taxes collected on a parcel or other taxable unit of property for which the parcel effective incremental value is zero must be distributed in the same manner as if the property was not located in a redevelopment area or tax increment area.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.817 Distribution of ad valorem taxes collected on property located in redevelopment area and for which parcel effective incremental value is greater than zero. (NRS 361.4733)
1. Except as otherwise provided in subsection 2 of NRS 279.676 and NAC 361.821, the ad valorem taxes collected on a parcel or other taxable unit of property which is located in a redevelopment area and for which the parcel effective incremental value is greater than zero must be distributed as follows:
(a) The amount of taxes determined by multiplying the parcel share of base value by the combined overlapping adjusted tax rate applicable to that property must be distributed to the entities entitled to receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 279.676 in proportion to their respective entity adjusted parcel tax rates;
(b) The amount of taxes determined by multiplying the combined overlapping post-1996 adjusted parcel tax rate by the parcel effective incremental value applicable to that property must be distributed to the entities described in paragraphs (c) and (d) of subsection 1 of NRS 279.676 in proportion to their respective post-1996 adjusted parcel tax rates; and
(c) After deducting the amount of taxes required to be distributed pursuant to paragraphs (a) and (b), any remaining amount must be distributed to the redevelopment agency as provided in paragraph (b) of subsection 1 of NRS 279.676.
2. For the purposes of this section:
(a) “Combined overlapping post-1996 adjusted parcel tax rate” means the sum of all the post-1996 adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.
(b) “Post-1996 adjusted parcel tax rate” means:
(1) For the fiscal year beginning on July 1, 2004, the post-1996 debt tax rate of a taxing entity applicable to a parcel or other taxable unit of property for that fiscal year; and
(2) For each subsequent fiscal year, the sum obtained by adding:
(I) The post-1996 adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year; and
(II) The product obtained by multiplying the post-1996 parcel tax rate increase of that taxing entity applicable to that property for the current fiscal year by the entity percentage allowed parcel tax rate increase of that taxing entity applicable to that property.
(c) “Post-1996 debt tax rate” means the portion of the debt tax rate of a taxing entity which is levied to pay any bonded indebtedness approved by the voters of the taxing entity on or after November 5, 1996, as described in paragraph (c) of subsection 1 of NRS 279.676. The post-1996 debt tax rate of a taxing entity for a fiscal year must be determined by multiplying the debt tax rate of that taxing entity for that fiscal year by a fraction, the numerator of which is the total amount of principal and interest coming due in that fiscal year on all the bonded indebtedness of that taxing entity which was approved by the voters of that taxing entity on or after November 5, 1996, and is to be paid with ad valorem taxes, and the denominator of which is the total amount of principal and interest coming due in that fiscal year on all the bonded indebtedness of that taxing entity for which the debt tax rate is being levied. For the purposes of this paragraph, the amount of principal and interest on the bonded indebtedness of a taxing entity coming due in a fiscal year for which the debt tax rate is being levied, and the amount of such indebtedness coming due in a fiscal year to be paid with ad valorem taxes approved by the voters of that taxing entity on or after November 5, 1996, must be determined by reference to the approved final budget of that taxing entity which was used by the Commission to certify the combined tax rate in accordance with NRS 361.4547, and must not be adjusted thereafter despite the occurrence of any event that changes the amount of bonded indebtedness of the taxing entity coming due in that fiscal year to be paid with ad valorem taxes.
(d) “Post-1996 parcel tax rate increase” means the remainder obtained by subtracting the post-1996 adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the post-1996 tax rate of that taxing entity applicable to that property for the current fiscal year.
(e) “Post-1996 tax rate” means the portion of the rate of ad valorem taxes of a taxing entity which is equal to the sum obtained by adding the post-1996 debt tax rate of that taxing entity to the rate of ad valorem taxes of that taxing entity attributable to a new or increased tax rate which is approved by the voters of that taxing entity on or after November 5, 1996, as described in paragraph (d) of subsection 1 of NRS 279.676.
(f) “Property” means property located in a redevelopment area.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.819 Distribution of ad valorem taxes collected on property located in tax increment area and for which parcel effective incremental value is greater than zero. (NRS 361.4733)
1. Except as otherwise provided in subsection 2, NAC 361.821 and subsections 4 and 5 of NRS 278C.250, the ad valorem taxes collected on a parcel or other taxable unit of property which is located in a tax increment area and for which the parcel effective incremental value is greater than zero must be distributed as follows:
(a) The amount of taxes determined by multiplying the parcel share of base value by the combined overlapping adjusted tax rate applicable to that property must be distributed to the entities entitled to receive those taxes pursuant to subparagraph (1) of paragraph (a) of subsection 1 of NRS 278C.250 in proportion to their respective entity-adjusted parcel tax rates;
(b) The amount of taxes determined by multiplying the combined overlapping debt and override adjusted parcel tax rate by the parcel effective incremental value applicable to that property must be distributed to the entities described in paragraphs (a), (b) and (c) of subsection 6 of NRS 278C.250 in proportion to their respective debt and override adjusted parcel tax rates;
(c) The amount of taxes determined by multiplying the tax rate specified in subsection 1 of NRS 387.195 by the parcel effective incremental value applicable to that property must be distributed as provided in paragraph (d) of subsection 6 of NRS 278C.250;
(d) After deducting the amount of taxes required to be distributed pursuant to paragraphs (a), (b) and (c), any remaining amount which does not exceed the combined total amount required for annual debt service on any bonds that have been issued by the entity that created that tax increment area and regarding which any revenues of that tax increment area have been pledged, must be distributed to that entity as provided in subparagraph (2) of paragraph (a) of subsection 1 and subsection 2 of NRS 278C.250; and
(e) After deducting the amount of taxes required to be distributed pursuant to paragraphs (a) to (d), inclusive, any remaining amount must be distributed:
(1) Except as otherwise provided in subparagraph (2), to the taxing entities that impose a nonschool, nondebt and nonoverride adjusted parcel tax rate in proportion to their respective nonschool, nondebt and nonoverride adjusted parcel tax rates as provided in subsection 3 of NRS 278C.250; or
(2) If the taxes are collected on property located in a tax increment area created pursuant to NRS 278C.155, to the entity that created the tax increment area.
2. Paragraph (c) of subsection 1 does not apply to any taxes levied on property located in a tax increment area created pursuant to NRS 278C.155.
3. For the purposes of this section:
(a) “Combined overlapping debt and override adjusted parcel tax rate” means the sum of all the debt and override adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.
(b) “Debt and override adjusted parcel tax rate” means:
(1) For the fiscal year beginning on July 1, 2004, the debt and override tax rate of a taxing entity applicable to a parcel or other taxable unit of property for that fiscal year; and
(2) For each subsequent fiscal year, the sum obtained by adding:
(I) The debt and override adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year; and
(II) The product obtained by multiplying the debt and override parcel tax rate increase of that taxing entity applicable to that property for the current fiscal year by the entity percentage allowed parcel tax rate increase of that taxing entity applicable to that property.
(c) “Debt and override parcel tax rate increase” means the remainder obtained by subtracting the debt and override adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the debt and override tax rate of that taxing entity applicable to that property for the current fiscal year.
(d) “Debt and override tax rate” means the portion of the rate of ad valorem taxes of a taxing entity which is equal to the sum obtained by adding:
(1) The debt tax rate of that taxing entity which is levied to pay any bonded indebtedness approved by a majority of the registered voters within the area of that taxing entity voting upon the question;
(2) The portion of the rate of ad valorem taxes of that taxing entity attributable to any increase in that rate since the creation of the tax increment area which was approved by a majority of the registered voters within the area of that taxing entity voting upon the question; and
(3) The portion of the rate of ad valorem taxes of that taxing entity which is levied pursuant to NRS 387.3285 or 387.3287, and which was approved by a majority of the registered voters within the area of that taxing entity voting upon the question,
Ê as respectively described in paragraphs (a), (b) and (c) of subsection 6 of NRS 278C.250.
(e) “Nonschool, nondebt and nonoverride adjusted parcel tax rate” means the remainder obtained by subtracting from the entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property:
(1) If included in that entity-adjusted parcel tax rate, the tax rate mandated by subsection 1 of NRS 387.195; and
(2) The debt and override adjusted parcel tax rate of that taxing entity applicable to that property.
(f) “Property” means property located in a tax increment area.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
NAC 361.821 Application of certain provisions: Limitations. (NRS 361.4733) The provisions of NAC 361.817 and 361.819 must not be applied in any manner that:
1. Would provide for the abatement of any increase in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or
2. Would not allocate the revenue from any increase in ad valorem taxes described in subsection 1 to the taxing entity who levies that increase or on behalf of whom that increase is levied.
(Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)
POSTPONEMENT OF PAYMENT OF TAX
NAC 361.851 Claim: Filing; form; contents; accompanying documentation. (NRS 361.7374, 361.738)
1. The owner of a single-family residence who wishes to file a claim to postpone the payment of the property taxes accrued against his or her residence must file the claim with the county treasurer of the county in which the residence is located not later than 10 days after the date on which the last installment of those taxes is due for the current fiscal year. A claim:
(a) Must be filed for each fiscal year in which property taxes to be postponed are accrued.
(b) May not be filed for more than 3 consecutive fiscal years.
2. A claim may not include a request to postpone the payment of any fees, special assessments, delinquent taxes, interest or other charges included on the tax bill for the residence.
3. A claim must be filed on a form that has been approved by the Commission.
4. A claim must contain:
(a) The name, mailing address and daytime telephone number of the claimant.
(b) The names and mailing addresses of all other owners of the residence.
(c) The names and ages of all other members of the claimant’s household and the relationship of each member to the claimant.
(d) The street address of the residence and the parcel number or identification number assigned to the residence by the county assessor of the county in which the residence is located.
(e) The length of time the claimant has occupied the residence.
(f) The current assessed value of the residence.
(g) A list of any other real property in this State owned by the claimant and a list of any other real property in this State owned by any other owner of the residence. Each list must include, without limitation:
(1) The county in which the real property is located;
(2) The street address of the real property;
(3) The parcel number or identification number assigned to the real property by the county assessor of the county in which the property is located; and
(4) The current assessed value of the real property.
(h) A statement indicating whether or not the claimant or any other owner of the residence is the subject of any proceeding for bankruptcy and, if so, the name and social security number used to identify that owner for the proceeding.
(i) A statement indicating that the residence is occupied by the claimant.
(j) A statement indicating whether or not the claimant or any other owner of the residence owes delinquent property taxes on the residence for a year other than the year in which the claim is filed.
(k) A description of the circumstances that were beyond the control of the claimant and caused the claimant to suffer severe economic hardship.
(l) The total annual income of the members of the claimant’s household.
(m) The length of time the claimant expects the severe economic hardship to continue.
(n) A statement indicating whether or not the property taxes are paid by a mortgage company.
5. Except as otherwise provided in NAC 361.853 to 361.871, inclusive, a claim must be accompanied by:
(a) A copy of the tax bill for the residence.
(b) A copy of the federal individual income tax return for the preceding taxable year for each owner of the residence and each member of the household. If an owner or member of the household did not file a federal individual income tax return, the claim must be accompanied by a copy of the most recent “Form W-2” received by the owner or member of the household from each of his or her employers and a copy of each “Form 1099” and each “Schedule K-1” received by the owner or member of the household in the taxable year in which the “Form W-2” was received. The county treasurer with whom the claim is filed may request a copy of any other supporting forms or schedules that are filed with the tax returns and are required to determine whether the claimant is eligible to postpone the payment of the property taxes.
(c) Evidence which indicates that the claimant has occupied the residence for the 6 months immediately preceding the filing of the claim. A driver’s license is not sufficient evidence of occupancy. Such evidence:
(1) May include copies of utility bills for each month of the immediately preceding 6-month period.
(2) Must include the name of the claimant or another owner of the residence, the address of the residence and a date that can be used to determine whether the residence has been occupied by the claimant for the 6 months immediately preceding the filing of the claim.
(d) Documentation that describes the circumstances causing the severe economic hardship suffered by the claimant. Such documentation may include, without limitation, a statement from an attending physician describing the nature of an illness or injury and the estimated time needed for recovery or a letter indicating that the claimant’s employment has been terminated.
6. The information required to be submitted with a claim pursuant to paragraphs (b) and (d) of subsection 5 shall be deemed to be confidential information for the purposes of NRS 361.7384.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.853 Claim: Action by county treasurer. (NRS 361.7374, 361.7382)
1. Upon the receipt of a claim for the postponement of the payment of property tax, a county treasurer shall verify:
(a) The last known owner of record of the single-family residence for which the claim is made, by inspecting public records containing such information.
(b) The parcel number or identification number assigned to the residence by the county assessor of the county in which the residence is located, the land use and total assessed value of the residence, and whether the residence is on the secured or unsecured tax roll, by inspecting the records of the county assessor.
(c) Whether the claimant or any other owner of the residence is the subject of any proceeding in bankruptcy, by inspecting the records of the United States Bankruptcy Courts located in this State.
(d) Whether the claimant or any other owner of the residence owes delinquent property taxes on the residence for a year other than the year in which the claim is filed.
(e) The total assessed value of any other real property in this State owned by the claimant and the total assessed value of any other real property in this State owned by any other owner of the residence.
2. Based upon the information verified pursuant to subsection 1, the county treasurer shall determine whether:
(a) The assessed value of the residence exceeds $175,000.
(b) The claimant or any other owner of the residence owns any other real property in this State that has an assessed value of more than $30,000. For this purpose, the claimant or other owner may own multiple parcels of real property in this State so long as the total assessed value of all of his or her parcels, excluding the single-family residence that is the subject of the claim, does not exceed $30,000.
(c) The residence has been occupied by the claimant for the 6 months immediately preceding the filing of the claim.
(d) The claimant or any other owner of the residence is the subject of any proceeding in bankruptcy.
(e) Delinquent property taxes are owed on the residence for a year other than the year in which the claim is filed, including taxes owed because of any changes made to the boundary of the parcel or to the parcel map.
(f) The total annual income of the members of the claimant’s household is at or below the federally designated level signifying poverty. This determination must be based on income received for the 365 days immediately preceding the filing of the claim.
(g) There is sufficient evidence to indicate that the claimant suffered a severe economic hardship that was caused by circumstances beyond his or her control.
3. The county treasurer shall deny the claim if he or she determines that the claimant does not comply with the requirements for eligibility set forth in NRS 361.7376.
4. If the county treasurer does not receive sufficient information to determine whether the claimant is eligible to postpone the payment of the property taxes accrued against the residence, the county treasurer shall:
(a) Deny the claim until such time as the claimant provides sufficient information that indicates he or she is eligible to postpone the payment of those taxes; and
(b) Include in the notice of his or her decision a description of the additional information that is needed to approve the claim.
5. If the county treasurer denies a claim pursuant to subsection 4, the claimant may request the county treasurer to reconsider his or her determination by submitting the additional information that is needed to approve the claim not later than May 30 of the current fiscal year.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.855 Determination of eligible amount of income. (NRS 361.7374, 361.7382)
1. The Department will annually provide to the county treasurers of this State the amount of income for the current fiscal year that is at or below the federally designated level signifying poverty, based on the guidelines established in the Federal Register by the United States Department of Health and Human Services pursuant to 42 U.S.C. § 9902(2).
2. Each county treasurer shall use the amount of income provided by the Department pursuant to subsection 1 to determine whether a claimant is eligible to postpone the payment of the property taxes accrued against his or her single-family residence.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.857 Approval of claim for taxes accrued against mobile or manufactured home. (NRS 361.7374) A county treasurer may approve a claim to postpone the property taxes accrued against a mobile home or manufactured home if:
1. That home is a single-family residence as defined in NRS 361.7372; and
2. The claimant is otherwise eligible to postpone the payment of those taxes.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.859 Approval of claim for taxes accrued against single-family residence owned by trust. (NRS 361.7374) A county treasurer may approve a claim to postpone the payment of the property taxes accrued against a single-family residence that is owned by a trust if:
1. The claimant or any other owner of the residence is one of the trustors;
2. The claim is accompanied by a certificate of trust which indicates that the claimant or another owner of the residence is a trustor; and
3. The claimant is otherwise eligible to postpone the payment of those taxes.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.861 Determination of amount for and period of postponement. (NRS 361.7374, 361.7382)
1. If a county treasurer approves a claim to postpone the payment of property taxes accrued against a single-family residence, the county treasurer shall determine the amount of property tax that will be postponed and the period for which the property tax will be postponed based on the information contained in the claim.
2. If the claimant is in arrears in the payment of any installment of the property taxes due for the current fiscal year, the county treasurer may postpone the payment of the taxes for the entire fiscal year or for any portion of that year.
3. The period for which property tax accrued in a fiscal year will be postponed may not exceed 1 year.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.863 Certificate of eligibility: Form; exclusion of certain information. (NRS 361.7374, 361.7386)
1. The form for a certificate of eligibility prescribed by the Department will be:
(a) Submitted to the Commission for its approval.
(b) Designed to comply with the recording requirements of the county recorders in this State.
2. Except as otherwise provided in NRS 361.7386, information that is contained in or that accompanies a claim to postpone the payment of property taxes accrued against a single-family residence may not be included in a certificate of eligibility.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.865 Certificate of eligibility: Effects of recordation and filing. (NRS 361.7374, 361.7386)
1. The recordation of a copy of a certificate of eligibility pursuant to NRS 361.7386 does not:
(a) Confer upon the claimant a right to a refund of property taxes already paid.
(b) Waive the duties of the county treasurer of the county in which the single-family residence is located to:
(1) Mail a notice of delinquency as required by NRS 361.5648; or
(2) Issue a trustee’s certificate as required by NRS 361.570.
(c) Change the date upon which the property taxes become delinquent or the period of redemption set forth in NRS 361.570.
2. If a certificate of eligibility is filed, the county treasurer of the county in which the single-family residence is located may postpone the publication of the notice of delinquency required by NRS 361.565 during the period for which the payment of the property tax will be postponed. If the publication of the notice of delinquency is postponed, the county treasurer shall not charge the claimant with the cost of publication until such notice is published.
3. If the property taxes for a single-family residence for which a certificate of eligibility is recorded are paid by a mortgage company, the claimant is responsible for making arrangements with the mortgage company for the postponement of the payment of the taxes and for any adjustments that may be needed to an impound account for the payment of the taxes.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.867 Statement of amount postponed: Contents. (NRS 361.7374, 361.7392) A statement of the total amount of property tax postponed that is provided pursuant to NRS 361.7392 must include:
1. The total amount of taxes owed as of the date of the statement. This amount must include penalties incurred for the current fiscal year and before the period of postponement becomes effective.
2. The total amount of interest accrued as of the date of the statement.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.869 Application of payments made before amounts become due. (NRS 361.7374, 361.7394) If a claimant makes payments on the amount of property tax postponed before they become due and payable, the county treasurer of the county in which the single-family residence is located shall apply those payments to the taxes that have been postponed for the longest time.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
NAC 361.871 Fraudulent claims. (NRS 361.7374) If a county treasurer determines that any person has willfully made a materially false statement or used any other fraudulent device to secure for himself or herself or any other person the postponed payment of property tax pursuant to the provisions of NRS 361.736 to 361.7398, inclusive, the county treasurer shall refer the claim to the district attorney for prosecution.
(Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)
ALLODIAL TITLE
General Provisions
NAC 361.900 Definitions. (NRS 361.920) As used in NAC 361.900 to 361.958, inclusive, unless the context otherwise requires, the words and terms defined in NAC 361.902 to 361.914, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.902 “Certificate” defined. (NRS 361.920) “Certificate” means a certificate of allodial title issued by the State Treasurer, which is evidence that the titleholder has qualified for allodial title.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.904 “Installment agreement” defined. (NRS 361.920) “Installment agreement” means a contract:
1. Pursuant to which a titleholder establishes allodial title by the payment of all required installment payments; and
2. Which consists of the provisions of an application for allodial title and an agreement and schedule for installment payments provided by the State Treasurer.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.906 “Owns” defined. (NRS 361.920) “Owns” means that title is held by a natural person as his or her sole property, or by more than one natural person as joint tenants or tenants in common.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.908 “Program” defined. (NRS 361.920) “Program” means the program for allodial title established pursuant to NRS 361.900 to 361.920, inclusive, and NAC 361.900 to 361.958, inclusive.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.910 “Property tax” defined. (NRS 361.920) “Property tax” means the combined ad valorem taxes levied by all governmental entities on a single-family dwelling, its appurtenances and the land on which it is located. The term does not include the tax levied upon the net proceeds of minerals, which is determined pursuant to NRS 362.140.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.912 “Single-family dwelling” defined. (NRS 361.920) “Single-family dwelling” means a single-family residence which is used as the primary living quarters of a titleholder and which is not used for a commercial purpose.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.914 “Titleholder” defined. (NRS 361.920) “Titleholder” means a natural person who holds title to, owns and occupies a single-family dwelling, its appurtenances and the land on which it is located free and clear of all encumbrances, except any unpaid assessment for a public improvement. The term does not include a corporation or other business entity, or a trust.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
Program
NAC 361.920 Purpose; requirements for participation. (NRS 361.920)
1. The program for allodial title allows qualified titleholders to pay their property taxes for a period equal to the life expectancy of the youngest titleholder of the property on which a single-family dwelling is located. A titleholder:
(a) Must occupy the single-family dwelling as his or her primary residence; and
(b) Is ineligible to hold allodial title on more than one single-family dwelling at the same time.
2. The program will provide for the payment of property taxes for holders of certificates of allodial title. The State Treasurer, on behalf of the titleholders of a specific parcel of property, will make payment of future property taxes for that property once the titleholders have been issued a certificate and so long as the titleholders are qualified for allodial title.
3. The program will not provide for the payment of any special assessment, service charge or fee that is included on a property tax bill.
4. The program applies and is restricted to the surface rights of residential property, and does not include the mineral rights of property. The program is intended to protect families from losing family homes, not mining businesses, because of tax liens.
5. The State Treasurer will avoid, to the extent possible, the unequal collection of property taxes by properly determining the cost of a certificate.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
Certificate
NAC 361.926 Denial of application for failure to provide requested information. (NRS 361.900, 361.920) The State Treasurer may deny an application if a titleholder fails to provide to the State Treasurer any information requested by the State Treasurer relating to the application or an installment agreement within a reasonable period prescribed by the State Treasurer. The titleholder is not prohibited from submitting another application in the future.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.928 Consequences of fraudulent misrepresentation or omission of information relating to application or installment agreement. (NRS 361.900, 361.920)
1. If the State Treasurer determines that a titleholder has fraudulently misrepresented or omitted any information relating to an application or installment agreement, the State Treasurer may deny the application, cancel the installment agreement or revoke the certificate.
2. If the State Treasurer cancels the installment agreement, the State Treasurer will so notify the titleholder and:
(a) Prepare a refund in the manner and subject to the provisions set forth in NRS 361.900 for a refund upon the rescission of an installment agreement; and
(b) Remit the refund to the titleholder within 90 days.
3. If the State Treasurer revokes the certificate, the State Treasurer will so notify the titleholder and:
(a) Prepare a refund in the manner and subject to the provisions set forth in NRS 361.915 for a refund upon the relinquishment of allodial title; and
(b) Remit the refund to the titleholder within 90 days.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.930 Cost: Determination; actuarial calculations; credit for certain property tax payments. (NRS 361.900, 361.920)
1. The State Treasurer will determine the cost of a certificate in accordance with the provisions of NRS 361.900.
2. An actuarial calculation will be used to project the life expectancy of the titleholders of the property, the income that will be earned on the money in the Allodial Title Trust Account, and changes in the assessed valuation of the property, including, without limitation, the results of inflation and changes in taxable value resulting from the construction, remodeling or rebuilding of improvements.
3. If the titleholder has made any property tax payments that cover a period after the effective date of the certificate, the titleholder will be provided credit for those property tax payments against the cost of the certificate.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.932 Cost: Payment options. (NRS 361.900, 361.920) The cost of the certificate may be paid by the titleholder:
1. In one lump sum; or
2. In annual installments over a period not to exceed 10 years.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.934 Payment in lump sum. (NRS 361.900, 361.920) If a titleholder chooses to pay in a lump sum:
1. The titleholder shall remit payment within 90 days after the State Treasurer provides notice of the amount of the lump sum. If the lump sum is not received by the State Treasurer within that period, the State Treasurer will recalculate the cost of the certificate.
2. The titleholder will have the option of signing an agreement that the lump-sum cost may be recalculated if improvements are made which increase the taxable value of the property at least 20 percent over the taxable value of the property at the time the lump-sum cost was determined. If the titleholder signs such an agreement, the State Treasurer will reduce the lump-sum cost.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.936 Payment in annual installments: Installment agreement. (NRS 361.900, 361.920) If a titleholder chooses to pay in annual installments:
1. The titleholder must enter into an installment agreement with the State of Nevada.
2. The installment agreement must contain a provision that the State Treasurer will adjust the final installment payment to reflect any increase or decrease in the assessed valuation of the property since the date of the application in accordance with subsection 8 of NRS 361.900.
3. The State Treasurer may:
(a) Calculate varying annual installments so that the final installment payment will not be extraordinarily high.
(b) Estimate a projected rate of change in the assessed valuation of the property so that each annual installment will include a portion of the change and the final installment will not include the entire amount of the change.
4. During the period of the installment agreement, the titleholder remains liable for payment of his or her property taxes until the final payment pursuant to the installment agreement has been paid and the titleholder has been issued a certificate.
5. The titleholder may prepay the annual installments without penalty.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.938 Payment in annual installments: Remittance of payments; default. (NRS 361.900, 361.920)
1. If a titleholder chooses to pay in annual installments, the titleholder shall remit payments pursuant to the installment agreement on the dates and in the amounts set forth in the schedule for participation and payment provided to the titleholder by the State Treasurer.
2. If a titleholder fails to remit a payment required by the installment agreement within 30 days after the due date, the titleholder shall be deemed to be in default of the installment agreement.
3. If a titleholder is deemed to be in default, the State Treasurer will so notify the titleholder and:
(a) Prepare a refund in the manner and subject to the provisions set forth in NRS 361.900 for a refund upon the rescission of an installment agreement; and
(b) Remit the refund to the titleholder within 90 days.
4. A titleholder who is deemed to be in default may reapply for allodial title in the future in accordance with NRS 361.900 and NAC 361.900 to 361.958, inclusive.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.940 Notification of State Treasurer by holder of certificate if certain changes relating to property occur. (NRS 361.915, 361.920)
1. A titleholder of property for which a certificate has been issued shall notify the State Treasurer within 60 days after:
(a) The titleholder sells or transfers the property;
(b) The titleholder rents or leases the property;
(c) The titleholder converts the residence, appurtenances or land to use by or as a commercial business;
(d) The titleholder moves or otherwise fails to live in the residence;
(e) The titleholder encumbers or applies for a mortgage or loan, using the property as collateral;
(f) A titleholder is added to or deleted from the deed for the property; or
(g) A titleholder of the property dies.
2. Upon receipt of notification pursuant to subsection 1, the State Treasurer will conduct a review to determine if the titleholder qualifies to continue the allodial title on the property and, if so, whether a recalculation of the cost of the certificate is necessary.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.942 Recalculation of cost upon addition or deletion of allodial titleholder involving transfer of interest to person other than joint tenant. (NRS 361.915, 361.920) Upon the addition or deletion of an allodial titleholder that involves a transfer of interest to a person other than a joint tenant, the State Treasurer will recalculate the cost of the certificate using revised actuarial assumptions reflecting the transfer. The actuarial calculation will be performed in the same manner as the original actuarial calculation, using the new data supplied by the titleholder and county assessor.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.944 Recalculation of cost upon addition or deletion of allodial titleholder to reflect change in titleholders and taxable value. (NRS 361.915, 361.920)
1. The addition or deletion of an allodial titleholder may require a recalculation by the State Treasurer of the cost of the certificate to reflect the actuarial assumptions of the life expectancy of the allodial titleholders and the taxable value of the specific property.
2. Upon receipt of an application to add or delete an allodial titleholder, the county treasurer shall notify the State Treasurer, who will recalculate the actuarial assumptions based on the change in titleholders and change in taxable value.
3. The State Treasurer will determine if any additional amount needs to be paid for the cost of the certificate for that property and notify the titleholders and the county treasurer.
4. A recalculation may not be needed if a deletion occurs solely through the death of a titleholder without transfer of the decedent’s interest to another person, including, without limitation, the death of a joint tenant with survivorship rights.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.946 Relinquishment; refund. (NRS 361.915, 361.920)
1. If the titleholder relinquishes the certificate, or the State Treasurer determines the titleholder no longer qualifies, the State Treasurer will prepare a refund in accordance with NRS 361.915.
2. A refund must be requested in writing from the State Treasurer, who will process the request within 90 days after receiving the request.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.948 Transference to heir. (NRS 361.910, 361.920)
1. The certificate may be transferred to the heir of an allodial titleholder in accordance with NRS 361.910.
2. The State Treasurer will review the information set forth in the application and determine if any additional information is needed to process the transfer of the allodial title to the heir.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
Annual Statement
NAC 361.950 Provision by State Treasurer to designee. (NRS 361.920) Each application for allodial title must list the first titleholder as the designee. The State Treasurer will provide the designee with an annual statement listing:
1. The proper share of income earned on the account of the titleholder in the Allodial Title Trust Account, with any appropriate adjustments thereto; and
2. The amount of tax actually paid each year with respect to the property, and other information relating to the program.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
Allodial Title Trust Account
NAC 361.956 Efficient and secure maintenance; limitation on use of money for investment and administrative expenses. (NRS 361.920)
1. The State Treasurer will ensure that the Allodial Title Trust Account is efficiently and securely maintained.
2. Not more than 2 percent of the money in the Allodial Title Trust Account will be used by the State Treasurer to cover investment and administrative expenses, which will be deducted annually.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
NAC 361.958 Recommended consultation with tax professional concerning income tax liability and deductions relating to Account. (NRS 361.920) The State Treasurer recommends that an allodial titleholder consult with a tax professional concerning:
1. The income tax liability of the titleholder with regard to the income and interest earned on the money in the Allodial Title Trust Account attributable to the money paid into the Allodial Title Trust Account by the titleholder; and
2. Whether and to what extent the property taxes paid by the State Treasurer from the Allodial Title Trust Account with respect to the property of the titleholder are deductible by the titleholder.
(Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)