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. 1. [The] Except as otherwise provided in section 6 of this

1-10 either in Nevada or elsewhere, and shall be exempt.

2-1 3. The legislature may constitute agricultural and open-space real

2-2 property having a greater value for another use than that for which it is

2-3 being used, as a separate class for taxation purposes and may provide a

2-4 separate uniform plan for appraisal and valuation of such property for

2-5 assessment purposes. If such plan is provided, the legislature shall also

2-6 provide for retroactive assessment for a period of not less than 7 years

2-7 when agricultural and open-space real property is converted to a higher use

2-8 conforming to the use for which other nearby property is used.

2-9 4. Personal property which is moving in interstate commerce through

2-10 or over the territory of the State of Nevada, or which was consigned to a

2-11 warehouse, public or private, within the State of Nevada from outside the

2-12 State of Nevada for storage in transit to a final destination outside the State

2-13 of Nevada, whether specified when transportation begins or afterward,

2-14 shall be deemed to have acquired no situs in Nevada for purposes of

2-15 taxation and shall be exempt from taxation. Such property shall not be

2-16 deprived of such exemption because while in the warehouse the property is

2-17 assembled, bound, joined, processed, disassembled, divided, cut, broken in

2-18 bulk, relabeled or repackaged.

2-19 5. The legislature may exempt motor vehicles from the provisions of

2-20 the tax required by this section, and in lieu thereof, if such exemption is

2-21 granted, shall provide for a uniform and equal rate of assessment and

2-22 taxation of motor vehicles, which rate shall not exceed five cents on one

2-23 dollar of assessed valuation.

2-24 6. The legislature shall provide by law for a progressive reduction in

2-25 the tax upon business inventories by 20 percent in each year following the

2-26 adoption of this provision, and after the expiration of the 4th year such

2-27 inventories are exempt from taxation. The legislature may exempt any

2-28 other personal property, including livestock.

2-29 7. No inheritance tax shall ever be levied.

2-30 8. The legislature may exempt by law property used for municipal,

2-31 educational, literary, scientific or other charitable purposes, or to

2-32 encourage the conservation of energy or the substitution of other sources

2-33 for fossil sources of energy.

2-34 9. No income tax shall be levied upon the wages or personal income of

2-35 natural persons. Notwithstanding the foregoing provision, and except as

2-36 otherwise provided in subsection 1 of this section, taxes may be levied

2-37 upon the income or revenue of any business in whatever form it may be

2-38 conducted for profit in the state.

2-39 Sec. 6. 1. The maximum amount of tax ad valorem that may be

2-40 levied on real property is 1 percent of the taxable value of the property.

2-41 This limit does not apply to taxes ad valorem levied to pay the interest

2-42 and principal of any indebtedness incurred before this section became

3-1 effective or approved thereafter by two-thirds of the votes cast by voters

3-2 voting on the question in the taxing district to which it applies.

3-3 2. Except as otherwise provided in subsections 3 and 4, the taxable

3-4 value of real property is 90 percent of the taxable value from which the

3-5 assessed value for the fiscal year 1995-1996 was calculated but, if the

3-6 property was not appraised or reappraised for that fiscal year, the taxable

3-7 value determined by appraisal or reappraisal for a subsequent fiscal year

3-8 may be appropriately adjusted to determine the taxable value as of the

3-9 fiscal year 1995-1996.

3-10 3. If the ownership of real property is transferred to the extent of

3-11 one-half or more of the total interest in the property, except a transfer to

3-12 or between spouses, to or from a separate legal entity of which the

3-13 transferor is the beneficial owner, or to a child or grandchild of the

3-14 transferor, the taxable value of the property must be redetermined as of

3-15 the date of transfer of the property. If new improvements to real property

3-16 are constructed, except to replace existing improvements destroyed by

3-17 natural disaster or other casualty, or existing improvements are

3-18 materially enhanced, the taxable value of the property must be increased

3-19 by the full cash value of the new improvement or enhancement. If real

3-20 property is converted to another use, the taxable value of the property

3-21 must be redetermined after the conversion by appraisal at its full cash

3-22 value in accordance with the new use of the property.

3-23 4. The taxable value of real property must be increased from year to

3-24 year by the lesser of:

3-25 (a) The percent of increase in the Consumer Price Index for All

3-26 Urban Consumers compiled by the federal Bureau of Labor Statistics for

3-27 the preceding calendar year, if that index increases; or

3-28 (b) Two percent.

3-29 The taxable value must be decreased from year to year by the percent of

3-30 decrease in the Consumer Price Index for All Urban Consumers

3-31 compiled by the federal Bureau of Labor Statistics for the preceding

3-32 calendar year, if that index decreases. The legislature shall provide by

3-33 law for another appropriate method of determining a percentage of

3-34 increase or decrease in the average annual cost of living if the index

3-35 specified in this section ceases to be compiled.

3-36 5. The legislature may provide by law the circumstances under

3-37 which:

3-38 (a) An owner domiciled in this state who has attained the age of 62

3-39 years may replace his principal residence with another of comparable

3-40 value and transfer to the new residence the taxable value of the old

3-41 residence for the purpose of limiting the ad valorem tax on the property.

3-42 (b) A new improvement may be constructed, or an existing

3-43 improvement enhanced, without change in the taxable value of real

4-1 property if the construction or enhancement is appropriate to protect the

4-2 safety of the occupants or improve accessibility to the disabled.

4-3 (c) An owner whose real property is taken by the exercise of eminent

4-4 domain may replace that property with property of comparable value and

4-5 transfer to the new property the taxable value of the old property for the

4-6 purpose of limiting the ad valorem tax on the property.

4-7 6. No tax may be imposed on the sale or other transfer of real

4-8 property which did not exist on the date this section becomes effective.