SB440_R2

Senate Bill No. 440–Committee on Government Affairs

CHAPTER..........

AN ACT relating to taxation; providing for the postponement of the payment of property taxes in cases of severe economic hardship under certain circumstances; providing a penalty; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 361 of NRS is hereby amended by adding

thereto the provisions set forth as sections 2 to 21, inclusive, of this

act.

Sec. 2. As used in sections 2 to 21, inclusive, of this act,

unless the context otherwise requires, the words and terms defined

in sections 3 to 8, inclusive, of this act have the meanings ascribed

to them in those sections.

Sec. 3. “Claim” means a claim for the postponement of the

payment of property tax filed pursuant to section 11 of this act.

Sec. 4. “Household” means a claimant and a spouse, parent,

child or sibling, or any combination thereof.

Sec. 5. “Income” means adjusted gross income, as defined in

the Internal Revenue Code, and includes:

1. Tax-free interest;

2. The untaxed portion of a pension or annuity;

3. Railroad retirement benefits;

4. Veterans’ pensions and compensation;

5. Payments received pursuant to the federal Social Security

Act, including supplemental security income, but excluding

hospital and medical insurance benefits for the aged and disabled;

6. Public welfare payments, including allowances for shelter;

7. Unemployment insurance benefits;

8. Payments for lost time;

9. Payments received from disability insurance;

10. Disability payments received pursuant to workers’

compensation insurance;

11. Alimony;

12. Support payments;

13. Allowances received by dependents of servicemen;

14. The amount of recognized capital gains and losses

excluded from adjusted gross income;

15. Life insurance proceeds in excess of $5,000;

16. Bequests and inheritances; and

17. Gifts of cash of more than $300 not between household

members and such other kinds of cash received by a household as

the Department specifies by regulation.

Sec. 6. “Occupied by the owner” means that a single-family

residence and the appurtenant land are held for the exclusive use

of an owner, or one or more of the owners, and not rented, leased

or otherwise made available for exclusive occupancy by a person

other than an owner or the owners.

Sec. 7. “Property tax accrued” means property taxes,

excluding special assessments, delinquent taxes and interest,

levied on a claimant’s single-family residence located in this state.

Sec. 8. “Single-family residence” includes:

1. A single dwelling unit and all land appurtenant thereto.

2. An individually owned residential unit that is an integral

part of a larger complex and all land included in the assessed

valuation of the individually owned unit.

Sec. 9. 1. The owner of a single-family residence may file a

claim to postpone the payment of all or any part of the property

tax accrued against his residence if:

(a) The residence is placed upon the secured or unsecured tax

roll and has an assessed value of not more than $175,000;

(b) He or any other owner of the residence does not own any

other real property in this state that has an assessed value of more

than $30,000;

months;

(d) The owner is not the subject of any proceeding for

bankruptcy;

(e) The owner owes no delinquent property taxes on the

residence for a year other than the year in which the application is

submitted;

(f) The owner has suffered severe economic hardship that was

caused by circumstances beyond his control including, without

limitation, an illness or a disability that is expected to last for a

continuous period of at least 12 months; and

(g) The total annual income of the members of the owner’s

household is at or below the federally designated level signifying

poverty.

2. The amount of property tax that may be postponed

pursuant to the provisions of sections 2 to 21, inclusive, of this act

may not exceed the amount of property tax that will accrue against

the single-family residence in the succeeding 3 fiscal years.

Sec. 10. If two or more members of a household are eligible

to file a claim pursuant to section 11 of this act, the members may

determine between themselves who will be the claimant. If they are

unable to agree, the matter must be referred to the Nevada Tax

Commission and its decision is final. Only one claim may be filed

for any household.

Sec. 11. 1. A claim must be filed with the county treasurer

of the county in which the claimant’s single-family residence is

located.

2. The claim must be made under oath and filed in such form

and content, and be accompanied by such information, as the

Department may prescribe to determine the eligibility of the

claimant to file the claim.

3. The claim must be signed by:

(a) The owner or owners of the property;

(b) Any person of lawful age, authorized by an executed power

of attorney to sign an application on behalf of any person

described in paragraph (a); or

paragraph (a) or the executor or administrator of such a person’s

estate.

4. The Department or county treasurer shall provide the

appropriate form for filing such a claim to each claimant.

Sec. 12. 1. A county treasurer shall, within 30 days after

receiving a claim pursuant to section 11 of this act, determine:

(a) Whether the claimant is eligible to postpone the payment of

the property taxes accrued against his single-family residence;

(b) The amount of property tax, if any, that will be postponed;

and

2. The county treasurer shall notify the claimant of his

decision by first-class mail.

3. Any claimant aggrieved by a decision of the county

treasurer may submit a written petition for a review of that

decision to the Nevada Tax Commission within 30 days after the

claimant receives notice of the decision.

4. Any claimant aggrieved by a decision of the Nevada Tax

Commission is entitled to judicial review.

Sec. 13. 1. If a claim is approved, the county treasurer of

the county in which the single-family residence is located shall

issue to the claimant a certificate of eligibility. The certificate must

be in a form prescribed by the Department and include:

(a) The name of the claimant;

(b) A legal description of the single-family residence for which

the claimant filed the claim;

family residence that will be postponed;

(d) The period for which the property tax will be postponed;

and

(e) Such other information as the Department may require.

2. The county treasurer shall cause to be recorded with the

county recorder of the county in which the single-family residence

is located a copy of the certificate of eligibility issued pursuant to

subsection 1 within 10 days after the claim is approved. The

postponement of the payment of the taxes becomes effective on the

date on which the certificate is filed with the county recorder.

Sec. 14. Interest accrues on the amount of property tax

postponed pursuant to sections 2 to 21, inclusive, of this act at the

rate of 6 percent of the total amount postponed as of the date the

postponed taxes are paid or become due and payable. Except as

otherwise provided in subsection 8 of NRS 361.483, no other

penalties or interest accrue during the period of postponement.

Sec. 15. 1. Any property tax postponed pursuant to sections

2 to 21, inclusive, of this act is a perpetual lien against the single-

family residence on which it accrued until the tax and any

penalties and interest which may accrue thereon are paid.

2. The lien attaches from the date on which a certificate of

eligibility is recorded with the county recorder of the county in

which the single-family residence is located pursuant to section 13

of this act.

3. The property tax postponed must be collected in the

manner provided in this chapter for all taxable property in this

state upon becoming due and payable pursuant to sections 2 to 21,

inclusive, of this act.

Sec. 16. A claimant who has postponed the payment of

property tax pursuant to sections 2 to 21, inclusive, of this act may

submit to the county treasurer of the county in which the single-

family residence is located a request for a statement of the total

amount postponed as of the date of the request and the interest

accrued thereon. Upon the receipt of such a request, the county

treasurer shall prepare such a statement and provide the claimant

with a copy of the statement.

Sec. 17. 1. Except as otherwise provided in section 18 of

this act, the payment of property tax postponed pursuant to

sections 2 to 21, inclusive, of this act becomes due and payable:

(a) If the single-family residence ceases to be occupied by the

claimant, or the claimant sells or otherwise disposes of his

possessory interest in the residence;

(b) If the claimant allows any property tax that has not been

postponed on the single-family residence to become delinquent

during the period of postponement;

postponed expires, as indicated in the claimant’s certificate of

eligibility; or

(d) If the claimant dies. If a surviving spouse or other member

of the household is eligible to file a claim to postpone the payment

of property tax accrued on the single-family residence continues to

occupy the residence, the amounts postponed are not due unless

that member of the household dies or ceases to occupy the

residence.

2. Payments on the amount of property tax postponed may be

made before they become due and payable.

Sec. 18. A county treasurer shall deny any claim to which a

claimant is not entitled. A county treasurer may deny any claim

which he finds to have been filed with fraudulent intent. If any

such claim has been approved and is afterward revoked, the

amount of the property tax that was postponed together with a 10

percent penalty becomes due and payable. If the tax and penalty

are not paid, the amount must be assessed against any real or

personal property owned by the claimant.

Sec. 19. Any person who willfully makes a materially false

statement or uses any other fraudulent device to secure for himself

or any other person the postponed payment of property tax

pursuant to the provisions of sections 2 to 21, inclusive, of this act

is guilty of a gross misdemeanor.

Sec. 20. 1. The Department is responsible for the

administration of the provisions of sections 2 to 21, inclusive, of

this act.

2. The Department may:

(a) Prescribe the content and form of claims and approve any

form used by a county treasurer.

(b) Designate the information required to be submitted for

substantiation of claims.

which a claim may be filed by one of two eligible persons.

(d) Prescribe that a claimant’s ownership of his single-family

residence must be shown of record.

(e) Verify and audit any claims, statements or other records

made pursuant to the provisions of sections 2 to 21, inclusive, of

this act.

(f) Adopt regulations to ensure the confidentiality of

information provided by claimants.

(g) Adopt such other regulations as may be required to carry

out the provisions of sections 2 to 21, inclusive, of this act.

Sec. 21. Except as otherwise provided by specific statute, no

person may publish, disclose or use any personal or confidential

information contained in a claim except for purposes connected

with the administration of the provisions of sections 2 to 20,

inclusive, of this act.

Sec. 22. NRS 361.450 is hereby amended to read as follows:

361.450 1. Except as otherwise provided in subsection 3,

every tax levied under the provisions of or authority of this chapter

is a perpetual lien against the property assessed until the tax and any

penalty charges and interest which may accrue thereon are paid.

2. Except as otherwise provided in this subsection[,] and

section 15 of this act, the lien attaches on July 1 of the year for

which the taxes are levied, upon all property then within the county.

The lien attaches upon all migratory property, as described in NRS

361.505, on the day it is moved into the county. If real and personal

property are assessed against the same owner, a lien attaches upon

such real property also for the tax levied upon the personal property

within the county . [; and a] A lien for taxes on personal property

also attaches upon real property assessed against the same owner in

any other county of the State from the date on which a certified copy

of any unpaid property assessment is filed for record with the county

recorder in the county in which the real property is situated.

3. All liens for taxes levied under this chapter which have

already attached to a mobile or manufactured home expire on the

date when the mobile or manufactured home is sold, except the liens

for personal property taxes due in the county in which the mobile or

manufactured home was situate at the time of sale, for any part of

the 12 months immediately preceding the date of sale.

4. All special taxes levied for city, town, school, road or other

purposes throughout the different counties of this state are a lien on

the property so assessed, and must be assessed and collected by the

same officer at the same time and in the same manner as the state

and county taxes are assessed and collected.

Sec. 23. NRS 361.483 is hereby amended to read as follows:

361.483 1. Except as otherwise provided in subsection 5[,]

and sections 2 to 21, inclusive, of this act, taxes assessed upon the

real property tax roll and upon mobile or manufactured homes are

due on the third Monday of August.

2. Taxes assessed upon the real property tax roll may be paid in

four approximately equal installments if the taxes assessed on the

parcel exceed $100.

3. Taxes assessed upon a mobile or manufactured home may

be paid in four installments if the taxes assessed exceed $100.

4. Except as otherwise provided in NRS 361.505, taxes

assessed upon personal property may be paid in four approximately

equal installments if:

(a) The total personal property taxes assessed exceed $10,000;

(b) Not later than July 31, the taxpayer returns to the county

assessor the written statement of personal property required

pursuant to NRS 361.265;

treasurer if the county treasurer has been designated to collect taxes,

a written request to be billed in quarterly installments and includes

with the request a copy of the written statement of personal property

required pursuant to NRS 361.265; and

(d) The business has been in existence for at least 3 years if the

personal property assessed is the property of a business.

5. If a person elects to pay in installments, the first installment

is due on the third Monday of August, the second installment on the

first Monday of October, the third installment on the first Monday

of January, and the fourth installment on the first Monday of March.

6. If any person charged with taxes which are a lien on real

property fails to pay:

(a) Any one installment of the taxes on or within 10 days

following the day the taxes become due, there must be added thereto

a penalty of 4 percent.

(b) Any two installments of the taxes, together with accumulated

penalties, on or within 10 days following the day the later

installment of taxes becomes due, there must be added thereto a

penalty of 5 percent of the two installments due.

accumulated penalties, on or within 10 days following the day the

latest installment of taxes becomes due, there must be added thereto

a penalty of 6 percent of the three installments due.

(d) The full amount of the taxes, together with accumulated

penalties, on or within 10 days following the first Monday of

March, there must be added thereto a penalty of 7 percent of the full

amount of the taxes.

7. Any person charged with taxes which are a lien on a mobile

or manufactured home who fails to pay the taxes within 10 days

after an installment payment is due is subject to the following

provisions:

(a) A penalty of 10 percent of the taxes due; and

(b) The county assessor may proceed under NRS 361.535.

8. If any property tax postponed pursuant to sections 2 to 21,

inclusive, of this act becomes due and payable and the person

charged with that tax fails to make the required payment within 10

days after it becomes due, there must be added thereto a penalty of

7 percent of the amount of the tax that is due. If the required

payment is not paid within 30 days after it becomes due, there

must be added thereto all penalties and interest that would have

accrued had the property tax not been postponed pursuant to

sections 2 to 21, inclusive, of this act.

9. The ex officio tax receiver of a county shall notify each

person in the county who is subject to a penalty pursuant to this

section of the provisions of NRS 360.419 and 361.4835.

Sec. 24. This act becomes effective on July 1, 2003.

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