EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 361.227 is hereby amended to read as follows:

1-2 361.227 1. Any person determining the taxable value of real

1-20 commission [.] ; or

2-1 (c) In the professional judgment of the person determining the taxable

2-2 value, the parcel is one of a group of parcels which should be valued as a

2-3 collective unit.

2-4 3. The taxable value of a leasehold interest, possessory interest,

2-5 beneficial interest or beneficial use for the purpose of NRS 361.157 or

2-6 361.159 must be determined in the same manner as the taxable value of the

2-7 property would otherwise be determined if the lessee or user of the

2-8 property was the owner of the property and it was not exempt from

2-9 taxation, except that the taxable value so determined must be reduced by a

2-10 percentage of the taxable value that is equal to the:

2-11 (a) Percentage of the property that is not actually leased by the lessee or

2-12 used by the user during the fiscal year; and

2-13 (b) Percentage of time that the property is not actually leased by the

2-14 lessee or used by the user during the fiscal year.

2-15 4. The taxable value of other taxable personal property, except mobile

2-16 homes, must be determined by subtracting from the cost of replacement of

2-17 the property all applicable depreciation and obsolescence. Depreciation of

2-18 a billboard must be calculated at 1.5 percent of the cost of replacement for

2-19 each year after the year of acquisition of the billboard, up to a maximum of

2-20 50 years.

2-21 5. The computed taxable value of any property must not exceed its full

2-22 cash value. Each person determining the taxable value of property shall

2-23 reduce it if necessary to comply with this requirement. A person

2-24 determining whether taxable value exceeds full cash value or whether

2-25 obsolescence is a factor in valuation may consider:

2-26 (a) Comparative sales, based on prices actually paid in market

2-27 transactions.

2-28 (b) A summation of the estimated full cash value of the land and

2-29 contributory value of the improvements.

2-30 (c) Capitalization of the fair economic income expectancy or fair

2-31 economic rent [.] , or an analysis of the discounted cash flow.

2-32 A county assessor is required to make the reduction prescribed in this

2-33 subsection if the owner calls to his attention the facts warranting it, if he

2-34 discovers those facts during physical reappraisal of the property or if he is

2-35 otherwise aware of those facts.

2-36 6. The Nevada tax commission shall by regulation establish:

2-37 (a) Standards for determining the cost of replacement of improvements

2-38 of various kinds.

2-39 (b) Standards for determining the cost of replacement of personal

2-40 property of various kinds. The standards must include a separate index of

2-41 factors for application to the acquisition cost of a billboard to determine its

2-42 replacement cost.

3-1 (c) Schedules of depreciation for personal property based on its

3-2 estimated life.

3-3 (d) Criteria for the valuation of two or more parcels as a subdivision.

3-4 7. In determining the cost of replacement of personal property for the

3-5 purpose of computing taxable value, the cost of all improvements of the

3-6 personal property, including any additions to or renovations of the personal

3-7 property but excluding routine maintenance and repairs, must be added to

3-8 the cost of acquisition of the personal property.

3-9 8. The county assessor shall, upon the request of the owner, furnish

3-10 within 15 days to the owner a copy of the most recent appraisal of the

3-11 property.

3-12 9. The provisions of this section do not apply to property which is

3-13 assessed pursuant to NRS 361.320.