Assembly Bill No. 442–Assemblyman Hettrick

 

March 17, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Provides for abatement of property taxes for certain residences to avoid severe economic hardship. (BDR 32‑783)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxation; authorizing county assessors to grant an abatement of property taxes for certain residences to avoid severe economic hardship; providing for the repayment of all or a portion of the abated taxes upon sale of the property or other mitigation of the severe economic hardship; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

1-2  thereto the provisions set forth as sections 2 to 13, inclusive, of this

1-3  act.

1-4  Sec. 2.  As used in sections 2 to 13, inclusive, of this act,

1-5  unless the context otherwise requires:

1-6  1.  “Occupied by the owner” means that the residence and the

1-7  appurtenant land are held for the exclusive use of the owner, or

1-8  one or more of the owners, and not rented, leased or otherwise

1-9  made available for exclusive occupancy by a person other than the

1-10  owner or owners.

1-11      2.  “Single-family residence” includes:

1-12      (a) A single dwelling unit and all land appurtenant thereto.

2-1  (b) An individually owned residential unit that is an integral

2-2  part of a larger complex and all land included in the assessed

2-3  valuation of the individually owned unit.

2-4  Sec. 3. 1.  Any owner of a single-family residence that has

2-5  been occupied by the owner for at least 6 months and is expected

2-6  to continue to be so occupied for at least the next fiscal year may

2-7  file an application with the county assessor of the county in which

2-8  the residence is located for an abatement of the property taxes that

2-9  have been or will be assessed against the property if the value of

2-10  the appurtenant land increased in the last assessment at such a

2-11  rate as to create a severe economic hardship for an owner of the

2-12  property.

2-13      2.  In determining whether the value of the appurtenant land

2-14  increased in the last assessment at such a rate as to create a severe

2-15  economic hardship for one or more owners of the property, the

2-16  county assessor may consider any information the county assessor

2-17  deems appropriate, including, without limitation, whether the

2-18  property taxes assessed as a result of the last assessment in which

2-19  the value of the appurtenant land was significantly increased are

2-20  so high as to cause no prospective purchasers to be willing to buy

2-21  the property from the owner or owners except governmental or

2-22  other purchasers who are exempt from property taxes and will not

2-23  purchase the property for a fair appraised value of the property or

2-24  pay property taxes on the property after the purchase.

2-25      3.  Any application for an abatement of property taxes

2-26  pursuant to this section must be filed on or before June 1 of any

2-27  year with the county assessor of the county in which the property

2-28  is located to be effective, if approved, for the next ensuing fiscal

2-29  year.

2-30      4.  Except as otherwise provided in this subsection, a new

2-31  application to continue the abatement is required on or before

2-32  June 1 following any change in ownership of any portion of the

2-33  property. If the property is divided, an owner who retains a portion

2-34  of that property and qualifies for an abatement is not required to

2-35  file a new application to continue the abatement on the portion

2-36  retained.

2-37      5.  The application must be made on a form prepared by the

2-38  Department and supplied by the county assessor and must include

2-39  such information as may be required to determine the entitlement

2-40  of the applicant to an abatement of the taxes on the property. Each

2-41  application must contain an affidavit or affirmation by the

2-42  applicant that the statements contained therein are true.

2-43      6.  The application must be signed by:

2-44      (a) The owner or owners of the property;

3-1  (b) Any person, of lawful age, authorized by an executed

3-2  power of attorney to sign an application on behalf of any person

3-3  described in paragraph (a); or

3-4  (c) The guardian or conservator of any person described in

3-5  paragraph (a) or the executor or administrator of such a person’s

3-6  estate.

3-7  7.  The county assessor shall not approve an application

3-8  unless each owner of record or his representative as specified in

3-9  subsection 6 signs the application. The county assessor may

3-10  require such additional information from the applicant as he

3-11  deems necessary to evaluate the application.

3-12      Sec. 4.  1.  Upon receipt of an application, the county

3-13  assessor shall make an independent determination of the owner’s

3-14  eligibility for an abatement of the property taxes on the single-

3-15  family residence.

3-16      2.  The county assessor may inspect the property and request

3-17  such evidence of use and sources of income as is necessary to

3-18  make an accurate determination of the owner’s eligibility. The

3-19  county assessor may deny the application when the owner or

3-20  occupant refuses to permit the inspection or furnish the evidence.

3-21      3.  The county assessor shall send to the applicant a written

3-22  notice of his determination within 10 days after determining the

3-23  applicant’s entitlement to an abatement of the property taxes on

3-24  the single-family residence.

3-25      4.  The county assessor shall record an application with the

3-26  county recorder within 10 days after approval.

3-27      Sec. 5.  1.  If the owner of a single-family residence is found

3-28  to be eligible for an abatement of property taxes pursuant to

3-29  sections 2 to 13, inclusive, of this act, the county assessor shall

3-30  determine the amount of increase in the assessed valuation of the

3-31  property that resulted in the increased property taxes that caused

3-32  the owner to qualify for the abatement and reduce the amount of

3-33  the current assessed valuation of the property by an amount equal

3-34  to that increase. The county assessor shall then freeze the assessed

3-35  valuation at that amount for the property for as long as the

3-36  property owner continues to qualify for the abatement.

3-37      2.  A statement of the amount of the abatement must be

3-38  maintained in the records of the assessor and must be made

3-39  available to any person upon request. The information used by the

3-40  county assessor to determine whether to grant an abatement, such

3-41  as financial information relating to the owner or owners of the

3-42  property is confidential and must not be released by the county

3-43  assessor except in defense of his actions in a civil action brought

3-44  in a court of competent jurisdiction to challenge the denial of an

4-1  abatement. The owner must be notified of the assessment in the

4-2  manner provided for notification of taxable valuation assessments.

4-3  Sec. 6. 1.  The county assessor shall enter on the

4-4  assessment roll the assessed valuation of a single-family residence

4-5  based on the reduction in its assessed valuation granted pursuant

4-6  to sections 2 to 13, inclusive, of this act until the owner of the

4-7  property is disqualified for the abatement.

4-8  2.  Within 30 days after any owner is disqualified for a

4-9  reduction in the assessed valuation of a single-family residence,

4-10  the county assessor shall send a written notice of disqualification

4-11  by certified mail with return receipt requested to each owner of

4-12  record. The notice must contain the assessed valuation for the

4-13  next ensuing fiscal year calculated in accordance with the

4-14  provisions of section 7 of this act.

4-15      Sec. 7. When the owner of a single-family residence is no

4-16  longer qualified for a reduction in the assessed valuation of the

4-17  property, the county assessor shall determine the assessed

4-18  valuation of the property by assessing it anew in the same manner

4-19  that all like property in the county is assessed.

4-20      Sec. 8. The determination of a county assessor as to whether

4-21  an owner of property is eligible to receive an abatement of

4-22  property taxes pursuant to sections 2 to 13, inclusive, of this act in

4-23  each year is final unless appealed in the manner provided in

4-24  chapter 361 of NRS for complaints of overvaluation, excessive

4-25  valuation or undervaluation.

4-26      Sec. 9. Within 30 days after determining that the owner of a

4-27  single-family residence is no longer qualified for an abatement of

4-28  the property taxes on that residence, the county assessor shall send

4-29  a written notice of that determination by certified mail, return

4-30  receipt requested, to each owner of record. The notice must

4-31  contain the taxable and assessed valuations for the next tax roll

4-32  and all prior years for which a deferred tax or penalty is owed

4-33  pursuant to section 11 or 12 of this act.

4-34      Sec. 10.  1.  An owner of a single-family residence who

4-35  receives a notice pursuant to section 9 of this act that is

4-36  postmarked on or after July 1 and before December 16 may appeal

4-37  in the manner provided in NRS 361.355:

4-38      (a) The determination that the owner is no longer qualified for

4-39  an abatement of property taxes on the residence; and

4-40      (b) The valuations for the years described in the notice,

4-41  to the board of equalization of the county in which the property is

4-42  located.

4-43      2.  An owner who receives such a notice which is postmarked

4-44  on or after December 16 and before July 1 may appeal, not later

4-45  than July 15 of the ensuing fiscal year:

5-1  (a) The determination that the owner is no longer qualified for

5-2  an abatement of the property taxes on the residence; and

5-3  (b) The valuations for the years described on the notice,

5-4  directly to the State Board of Equalization.

5-5  Sec. 11.  If the county assessor is notified or otherwise

5-6  becomes aware that an owner of a single-family residence

5-7  transferred ownership or otherwise disposed of the property or for

5-8  some other reason is no longer qualified for an abatement on the

5-9  property taxes on that residence, the county assessor shall add to

5-10  the tax extended against that residence on the next property tax

5-11  statement the deferred tax, which is the difference between the

5-12  taxes that would have been paid or payable if the assessed

5-13  valuation had not been reduced and the taxes which would have

5-14  been paid or payable on the basis of the taxable valuation

5-15  calculated pursuant to section 6 of this act, for each year in which

5-16  the reduction was in effect for the property during the first fiscal

5-17  year in which the owner was no longer qualified for the abatement

5-18  of property taxes and the preceding 6 fiscal years or such portion

5-19  thereof as the owner of the property qualified for an abatement of

5-20  the taxes. The county assessor shall assess the property pursuant

5-21  to NRS 361.227 for the next fiscal year following the date on

5-22  which the owner is no longer qualified for the abatement.

5-23      Sec. 12.  1.  If the county assessor determines that the

5-24  deferred tax for any fiscal year or years was not assessed in the

5-25  year it became due, he may assess it anytime within 5 fiscal years

5-26  after the end of the fiscal year in which an owner of a single-

5-27  family residence is no longer qualified for a reduced assessment

5-28  pursuant to sections 2 to 13, inclusive, of this act.

5-29      2.  If the county assessor determines that a single-family

5-30  residence was assessed at a reduced rate rather than at full taxable

5-31  value for any fiscal year in which the owner thereof was not

5-32  qualified for such a reduction, he may assess the deferred tax for

5-33  that year anytime within 5 years after the end of that fiscal year.

5-34      Sec. 13.  1.  The deferred tax and penalty assessed pursuant

5-35  to sections 11 and 12 of this act are a perpetual lien against the

5-36  single-family residence until paid as provided in NRS 361.450.

5-37      2.  Each year, the county assessor shall record a list of parcel

5-38  numbers and owners’ names for single-family residences on

5-39  which a lien exists pursuant to subsection 1.

5-40      Sec. 14.  This act becomes effective on July 1, 2003.

 

5-41  H