EMERGENCY REQUEST of Assembly Minority Leader

 

Assembly Bill No. 668–Assemblymen Hettrick, Lee, Cegavske, Gibbons, Brower, Anderson, Angle, Arberry, Beers, Brown, Buckley, Carpenter, Collins, Dini, Freeman, Giunchigliani, Goldwater, Gustavson, Humke, Koivisto, Leslie, Manendo, Marvel, McClain, Nolan, Parnell, Perkins, Smith, Tiffany and Von Tobel

 

May 24, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Limits annual increase in taxable value of certain property in cases of severe economic hardship. (BDR 32‑1551)

 

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; limiting the annual increase in the taxable value of certain property for the assessment of property taxes in cases of 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 thereto a

1-2  new section to read as follows:

1-3    1.  The owner of a parcel of real property which is undeveloped land

1-4  or the site of a single-family residence may apply to the county assessor

1-5  for a limitation on the taxable value of the property, including any

1-6  improvements on the property, if a severe economic hardship exists.

1-7    2.  If the county assessor determines that it is reasonably likely that if

1-8  the limitation on the taxable value of the property is not granted, the

1-9  owner of the property will be compelled by severe economic hardship to

1-10  sell the property:

1-11    (a) Because of the amount of the increase in its taxable value without

1-12  the application of this section; or

1-13    (b) To a governmental entity or other purchaser whose ownership of

1-14  the property would cause the property to be exempt from

1-15  taxation,

2-1  the county assessor shall not increase the taxable value of the parcel by

2-2  more than 6 percent in any subsequent fiscal year during which the

2-3  owner who applied for the limitation, or a member of his family, owns

2-4  the property.

2-5    Sec. 2.  NRS 361.155 is hereby amended to read as follows:

2-6    361.155  1.  All claims for personal tax exemptions on real property,

2-7  the initial claim of an organization for a tax exemption on real property ,

2-8  the initial claim of an owner for the limitation of taxable value pursuant

2-9  to section 1 of this act and the designation of any amount to be credited to

2-10  the veterans’ home account pursuant to NRS 361.0905 must be filed on or

2-11  before June 15. All exemptions provided for pursuant to this chapter apply

2-12  on a fiscal year basis and any exemption granted pursuant to this chapter

2-13  must not be in an amount which gives the taxpayer a total exemption

2-14  greater than that to which he is entitled during any fiscal year.

2-15    2.  Each claim for an exemption provided for pursuant to this chapter

2-16  must be filed with the county assessor of:

2-17    (a) The county in which the claimant resides for personal tax

2-18  exemptions; or

2-19    (b) Each county in which property is located for the tax exemption of an

2-20  organization.

2-21    3.  After the initial claim of an organization for an exemption pursuant

2-22  to NRS 361.088 or 361.098 to 361.150, inclusive, [an] or of an owner

2-23  under section 1 of this act, the organization or owner is not required to file

2-24  annual claims if the property remains [exempt.] qualified for the relief

2-25  provided. If any portion of the property loses its exemption pursuant to

2-26  NRS 361.157 or for any other reason becomes taxable[,] at its full taxable

2-27  value, the organization or owner must notify the county assessor.

2-28    4.  If an exemption is granted or renewed in error because of an

2-29  incorrect claim or failure of an organization to give the notice required by

2-30  subsection 3, the assessor shall assess the taxable portion of the property

2-31  retroactively pursuant to NRS 361.769 and a penalty of 10 percent of the

2-32  tax due for the current year and any prior years must be added.

2-33    Sec. 3.  NRS 361.260 is hereby amended to read as follows:

2-34    361.260  1.  Each year, the county assessor, except as otherwise

2-35  required by a particular statute, shall ascertain by diligent inquiry and

2-36  examination all real and secured personal property that is in his county on

2-37  July 1 which is subject to taxation, and also the names of all persons,

2-38  corporations, associations, companies or firms owning the property. He

2-39  shall then determine the taxable value of all such property and , except as

2-40  otherwise provided in section 1 of this act, he shall then list and assess it

2-41  to the person, firm, corporation, association or company owning it on

2-42  July 1 of that fiscal year. He shall take the same action at any time between

2-43  May 1 and the following April 30, with respect to personal property which

2-44  is to be placed on the unsecured tax roll.

2-45    2.  At any time before the lien date for the following fiscal year, the

2-46  county assessor may include additional personal property and mobile

2-47  homes on the secured tax roll if the owner of the personal property or

2-48  mobile home owns real property within the same taxing district which has

2-49  an assessed value that is equal to or greater than the taxes for 3 years on

3-1  both the real property and the personal property or mobile home, plus

3-2  penalties. Personal property and mobile homes in the county on July 1, but

3-3  not on the secured tax roll for the current year, must be placed on the

3-4  unsecured tax roll for the current year.

3-5    3.  An improvement on real property in existence on July 1 whose

3-6  existence was not ascertained in time to be placed on the secured roll for

3-7  that tax year and which is not governed by subsection 4 must be placed on

3-8  the unsecured tax roll.

3-9    4.  The value of any property apportioned among counties pursuant to

3-10  NRS 361.320, 361.321 and 361.323 must be added to the central

3-11  assessment roll at the assessed value established by the Nevada tax

3-12  commission or as established pursuant to an appeal to the state board of

3-13  equalization.

3-14    5.  In addition to the inquiry and examination required in subsection 1,

3-15  for any property not reappraised in the current assessment year, the county

3-16  assessor shall determine its assessed value for that year by applying a

3-17  factor for improvements, if any, and a factor for land to the assessed value

3-18  for the preceding year. The factor for improvements must reasonably

3-19  represent the change, if any, in the taxable value of typical improvements

3-20  in the area since the preceding year, and must take into account all

3-21  applicable depreciation and obsolescence. The factor for improvements

3-22  must be adopted by the Nevada tax commission. The factor for land must

3-23  be developed by the county assessor and approved by the commission. The

3-24  factor for land must be so chosen that the median ratio of the assessed

3-25  value of the land to the taxable value of the land in each area subject to the

3-26  factor is not less than 30 percent nor more than 35 percent.

3-27    6.  The county assessor shall reappraise all real property at least once

3-28  every 5 years.

3-29    7.  Each county assessor shall submit a written request to the board of

3-30  county commissioners and the governing body of each of the local

3-31  governments located in the county which maintain a unit of government

3-32  that issues building permits for a copy of each building permit that is

3-33  issued. Upon receipt of such a request, the governing body shall direct the

3-34  unit which issues the permits to provide a copy of each permit to the

3-35  county assessor within a reasonable time after issuance.

3-36    Sec. 4.  Any overpayment of property taxes resulting from the

3-37  retroactive application of this act must be credited against future tax

3-38  liability on the property to which the overpayment applies.

3-39    Sec. 5.  This act becomes effective upon passage and approval and

3-40  applies retroactively to July 1, 2000.

 

3-41  H