(REPRINTED WITH ADOPTED AMENDMENTS)

 

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—Temporarily limits annual increase in taxable value of property in certain areas for assessment of property taxes. (BDR 32‑1551)

 

FISCAL NOTE:    Effect on Local Government: Yes.

                                  Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxation; temporarily limiting the annual increase in the taxable value of property in certain areas for the assessment of property taxes; 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 legislature hereby finds and declares that:

1-4    (a) Section 1 of article 10 of the Nevada constitution, which governs

1-5  property taxes, requires the legislature to provide by law for a uniform

1-6  and equal rate of assessment and taxation and to prescribe such

1-7  regulations as will ensure a just valuation for the taxation of all property

1-8  within this state;

1-9    (b) The reliability of our system of assessing property to establish a

1-10  just valuation for taxation by providing for the determination of the value

1-11  of all property in the same manner, regardless of its location, on the basis

1-12  of the selling price of comparable property in the area has been called

1-13  into question because of anomalies in certain market factors that have

1-14  resulted in unprecedented increases in the selling price of property in one

1-15  particular area of the state where the average annual increase in gross

2-1  assessed valuation for the past 10 years before these spikes began was 5.6

2-2  percent per year;

2-3    (c) This anomaly in market factors appears to be related to extreme

2-4  limitations placed on the development rights of some of the property in

2-5  this area by a regional planning agency created to establish

2-6  environmental threshold carrying capacities for a region that exhibits

2-7  unique environmental and ecological values which are irreplaceable;

2-8    (d) An exception to our system of assessing property must be made to

2-9  ensure that the property located in this particular area, and other areas

2-10  in which a similar anomaly may develop in the next tax year if additional

2-11  regional planning agencies that severely restrict development are created

2-12  by state or local governments, continue to be taxed in a manner that is

2-13  fair and equitable compared with all other property in the state;

2-14    (e) The provisions of this section are necessary to ensure that extreme

2-15  spikes in the selling price of property resulting, in part, from the strict

2-16  regulation of the development in certain areas of the state do not

2-17  compromise the constitutionality of our system of assessing property; and

2-18    (f) Temporarily limiting the percentage of increase of the taxable

2-19  value of the property in areas where extreme spikes in the selling price of

2-20  property have occurred is the most fair and equitable manner of ensuring

2-21  statewide uniformity and equality in the rate of assessment and taxation

2-22  of the property of this state until this legislature is able to reevaluate the

2-23  formulas for the assessment and taxation of the property in this state and

2-24  develop an appropriate adjustment for areas in which these anomalies

2-25  occur.

2-26    2.  Except as otherwise provided in subsection 3, in listing and

2-27  assessing the taxable value of property to the owner pursuant to NRS

2-28  361.260, for the purposes of applying a tax rate, a county assessor shall

2-29  not increase by more than 6 percent per year the taxable value of

2-30  property located within a region that is covered by a regional plan

2-31  adopted by the governing body of a regional planning agency created to

2-32  establish environmental threshold carrying capacities for a region that

2-33  exhibits unique environmental and ecological values.

2-34    3.  The provisions of subsection 2 do not apply to an increase in

2-35  taxable value that is directly attributable to the addition or major

2-36  renovation of an improvement on the property.

2-37    4.  If a parcel is split for placement on the tax roll in one or more

2-38  separate pieces, the taxable value of the parcel before the split must be

2-39  equitably apportioned among the pieces and the apportioned taxable

2-40  value of each piece of the property assessed to the owner pursuant to

2-41  NRS 361.260 must not be increased by more than 6 percent per year. If

2-42  one or more parcels are combined for placement on the tax roll, the

2-43  taxable value of each of the parcels must be added together to determine

2-44  the taxable value of the combined parcel assessed to the owner pursuant

2-45  to NRS 361.260 and that taxable value must not be increased by more

2-46  than 6 percent per year.

2-47    Sec. 2.  NRS 361.260 is hereby amended to read as follows:

2-48    361.260  1.  Each year, the county assessor, except as otherwise

2-49  required by a particular statute, shall ascertain by diligent inquiry and

3-1  examination all real and secured personal property that is in his county on

3-2  July 1 which is subject to taxation, and also the names of all persons,

3-3  corporations, associations, companies or firms owning the property. He

3-4  shall then determine the taxable value of all such property and , except as

3-5  otherwise provided in section 1 of this act, he shall then list and assess it

3-6  to the person, firm, corporation, association or company owning it on

3-7  July 1 of that fiscal year. He shall take the same action at any time between

3-8  May 1 and the following April 30, with respect to personal property which

3-9  is to be placed on the unsecured tax roll.

3-10    2.  At any time before the lien date for the following fiscal year, the

3-11  county assessor may include additional personal property and mobile and

3-12  manufactured homes on the secured tax roll if the owner of the personal

3-13  property or mobile or manufactured home owns real property within the

3-14  same taxing district which has an assessed value that is equal to or greater

3-15  than the taxes for 3 years on both the real property and the personal

3-16  property or mobile or manufactured home, plus penalties. Personal

3-17  property and mobile and manufactured homes in the county on July 1, but

3-18  not on the secured tax roll for the current year, must be placed on the

3-19  unsecured tax roll for the current year.

3-20    3.  An improvement on real property in existence on July 1 whose

3-21  existence was not ascertained in time to be placed on the secured roll for

3-22  that tax year and which is not governed by subsection 4 must be placed on

3-23  the unsecured tax roll.

3-24    4.  [The] Except as otherwise provided in section 1 of this act, the

3-25  value of any property apportioned among counties pursuant to NRS

3-26  361.320, 361.321 and 361.323 must be added to the central assessment roll

3-27  at the assessed value established by the Nevada tax commission or as

3-28  established pursuant to an appeal to the state board of equalization.

3-29    5.  In addition to the inquiry and examination required in subsection 1,

3-30  for any property not reappraised in the current assessment year, the county

3-31  assessor shall determine its assessed value for that year by applying a

3-32  factor for improvements, if any, and a factor for land to the assessed value

3-33  for the preceding year. The factor for improvements must reasonably

3-34  represent the change, if any, in the taxable value of typical improvements

3-35  in the area since the preceding year, and must take into account all

3-36  applicable depreciation and obsolescence. The factor for improvements

3-37  must be adopted by the Nevada tax commission. The factor for land must

3-38  be developed by the county assessor and approved by the commission. The

3-39  factor for land must be so chosen that the median ratio of the assessed

3-40  value of the land to the taxable value of the land in each area subject to the

3-41  factor is not less than 30 percent nor more than 35 percent.

3-42    6.  The county assessor shall reappraise all real property at least once

3-43  every 5 years.

3-44    7.  The county assessor shall establish standards for appraising and

3-45  reappraising land pursuant to this section. In establishing the standards, the

3-46  county assessor shall consider comparable sales of land before July 1 of the

3-47  year before the lien date.

3-48    8.  Each county assessor shall submit a written request to the board of

3-49  county commissioners and the governing body of each of the local

4-1  governments located in the county which maintain a unit of government

4-2  that issues building permits for a copy of each building permit that is

4-3  issued. Upon receipt of such a request, the governing body shall direct the

4-4  unit which issues the permits to provide a copy of each permit to the

4-5  county assessor within a reasonable time after issuance.

4-6    Sec. 3.  This act first applies to the preparation of the assessment roll

4-7  which must be completed on or before January 1, 2002, and must not be

4-8  construed to affect the tax bills for any year before the fiscal year that

4-9  begins on July 1, 2002.

4-10    Sec. 4.  1.  This section and sections 1 and 3 of this act become

4-11  effective on July 1, 2001.

4-12    2.  Section 2 of this act becomes effective at 12:01 a.m. on July 1,

4-13  2001.

4-14    3.  This act expires by limitation on June 30, 2003.

 

4-15  H