(Reprinted with amendments adopted on April 21, 2003)

 

Senate Bill No. 440–Committee on Government Affairs

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Provides for postponement of payment of property taxes in cases of severe economic hardship under certain circumstances. (BDR 32‑658)

 

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; providing for the postponement of the payment of property taxes in cases of severe economic hardship under certain circumstances; providing a penalty; 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 21, inclusive, of this

1-3  act.

1-4  Sec. 2.  As used in sections 2 to 21, inclusive, of this act,

1-5  unless the context otherwise requires, the words and terms defined

1-6  in sections 3 to 8, inclusive, of this act have the meanings ascribed

1-7  to them in those sections.

1-8  Sec. 3.  “Claim” means a claim for the postponement of the

1-9  payment of property tax filed pursuant to section 11 of this act.

1-10      Sec. 4.  “Household” means a claimant and a spouse, parent,

1-11  child or sibling, or any combination thereof.

1-12      Sec. 5.  “Income” means adjusted gross income, as defined in

1-13  the Internal Revenue Code, and includes:

1-14      1.  Tax-free interest;

1-15      2.  The untaxed portion of a pension or annuity;

1-16      3.  Railroad retirement benefits;

2-1  4.  Veterans’ pensions and compensation;

2-2  5.  Payments received pursuant to the federal Social Security

2-3  Act, including supplemental security income, but excluding

2-4  hospital and medical insurance benefits for the aged and disabled;

2-5  6.  Public welfare payments, including allowances for shelter;

2-6  7.  Unemployment insurance benefits;

2-7  8.  Payments for lost time;

2-8  9.  Payments received from disability insurance;

2-9  10.  Disability payments received pursuant to workers’

2-10  compensation insurance;

2-11      11.  Alimony;

2-12      12.  Support payments;

2-13      13.  Allowances received by dependents of servicemen;

2-14      14.  The amount of recognized capital gains and losses

2-15  excluded from adjusted gross income;

2-16      15.  Life insurance proceeds in excess of $5,000;

2-17      16.  Bequests and inheritances; and

2-18      17.  Gifts of cash of more than $300 not between household

2-19  members and such other kinds of cash received by a household as

2-20  the Department specifies by regulation.

2-21      Sec. 6.  “Occupied by the owner” means that a single-family

2-22  residence and the appurtenant land are held for the exclusive use

2-23  of an owner, or one or more of the owners, and not rented, leased

2-24  or otherwise made available for exclusive occupancy by a person

2-25  other than an owner or the owners.

2-26      Sec. 7.  “Property tax accrued” means property taxes,

2-27  excluding special assessments, delinquent taxes and interest,

2-28  levied on a claimant’s single-family residence located in this state.

2-29      Sec. 8.  “Single-family residence” includes:

2-30      1.  A single dwelling unit and all land appurtenant thereto.

2-31      2.  An individually owned residential unit that is an integral

2-32  part of a larger complex and all land included in the assessed

2-33  valuation of the individually owned unit.

2-34      Sec. 9.  1.  The owner of a single-family residence may file a

2-35  claim to postpone the payment of all or any part of the property

2-36  tax accrued against his residence if:

2-37      (a) The residence is placed upon the secured or unsecured tax

2-38  roll and has an assessed value of not more than $175,000;

2-39      (b) He or any other owner of the residence does not own any

2-40  other real property in this state that has an assessed value of more

2-41  than $30,000;

2-42      (c) The residence has been occupied by the owner for at least 6

2-43  months;

2-44      (d) The owner is not the subject of any proceeding for

2-45  bankruptcy;

3-1  (e) The owner owes no delinquent property taxes on the

3-2  residence for a year other than the year in which the application is

3-3  submitted;

3-4  (f) The owner has suffered severe economic hardship that was

3-5  caused by circumstances beyond his control including, without

3-6  limitation, an illness or a disability that is expected to last for a

3-7  continuous period of at least 12 months; and

3-8  (g) The total annual income of the members of the owner’s

3-9  household is at or below the federally designated level signifying

3-10  poverty.

3-11      2.  The amount of property tax that may be postponed

3-12  pursuant to the provisions of sections 2 to 21, inclusive, of this act

3-13  may not exceed the amount of property tax that will accrue against

3-14  the single-family residence in the succeeding 3 fiscal years.

3-15      Sec. 10.  If two or more members of a household are eligible

3-16  to file a claim pursuant to section 11 of this act, the members may

3-17  determine between themselves who will be the claimant. If they are

3-18  unable to agree, the matter must be referred to the Nevada Tax

3-19  Commission and its decision is final. Only one claim may be filed

3-20  for any household.

3-21      Sec. 11.  1.  A claim must be filed with the county assessor

3-22  of the county in which the claimant’s single-family residence is

3-23  located.

3-24      2.  The claim must be made under oath and filed in such form

3-25  and content, and be accompanied by such information, as the

3-26  Department may prescribe to determine the eligibility of the

3-27  claimant to file the claim.

3-28      3.  The claim must be signed by:

3-29      (a) The owner or owners of the property;

3-30      (b) Any person of lawful age, authorized by an executed power

3-31  of attorney to sign an application on behalf of any person

3-32  described in paragraph (a); or

3-33      (c) The guardian or conservator of any person described in

3-34  paragraph (a) or the executor or administrator of such a person’s

3-35  estate.

3-36      4.  The Department or county assessor shall provide the

3-37  appropriate form for filing such a claim to each claimant.

3-38      Sec. 12.  1.  A county assessor shall, within 30 days after

3-39  receiving a claim pursuant to section 11 of this act, determine:

3-40      (a) Whether the claimant is eligible to postpone the payment of

3-41  the property taxes accrued against his single-family residence;

3-42      (b) The amount of property tax, if any, that will be postponed;

3-43  and

3-44      (c) The period for which the property tax will be postponed.

4-1  2.   The county assessor shall notify the claimant of his

4-2  decision by first-class mail.

4-3  3.  Any claimant aggrieved by a decision of the county

4-4  assessor may submit a written petition for a review of that decision

4-5  to the Nevada Tax Commission within 30 days after the claimant

4-6  receives notice of the decision.

4-7  4.  Any claimant aggrieved by a decision of the Nevada Tax

4-8  Commission is entitled to judicial review.

4-9  Sec. 13.  1.  If a claim is approved, the county assessor of the

4-10  county in which the single-family residence is located shall issue

4-11  to the claimant a certificate of eligibility. The certificate must be in

4-12  a form prescribed by the Department and include:

4-13      (a) The name of the claimant;

4-14      (b) A legal description of the single-family residence for which

4-15  the claimant filed the claim;

4-16      (c) The amount of the property tax accrued against the single-

4-17  family residence that will be postponed;

4-18      (d) The period for which the property tax will be postponed;

4-19  and

4-20      (e) Such other information as the Department may require.

4-21      2.  The county assessor shall cause to be recorded with the

4-22  county recorder of the county in which the single-family residence

4-23  is located a copy of the certificate of eligibility issued pursuant to

4-24  subsection 1 within 10 days after the claim is approved. The

4-25  postponement of the payment of the taxes becomes effective on the

4-26  date on which the certificate is filed with the county recorder.

4-27      Sec. 14.  Interest accrues on the amount of property tax

4-28  postponed pursuant to sections 2 to 21, inclusive, of this act at the

4-29  rate of 6 percent of the total amount postponed as of the date the

4-30  postponed taxes are paid or become due and payable. Except as

4-31  otherwise provided in subsection 8 of NRS 361.483, no other

4-32  penalties or interest accrue during the period of postponement.

4-33      Sec. 15.  1.  Any property tax postponed pursuant to sections

4-34  2 to 21, inclusive, of this act is a perpetual lien against the single-

4-35  family residence on which it accrued until the tax and any

4-36  penalties and interest which may accrue thereon are paid.

4-37      2.  The lien attaches from the date on which a certificate of

4-38  eligibility is recorded with the county recorder of the county in

4-39  which the single-family residence is located pursuant to section 13

4-40  of this act.

4-41      3.  The property tax postponed must be collected in the

4-42  manner provided in this chapter for all taxable property in this

4-43  state upon becoming due and payable pursuant to sections 2 to 21,

4-44  inclusive, of this act.

5-1  Sec. 16.  A claimant who has postponed the payment of

5-2  property tax pursuant to sections 2 to 21, inclusive, of this act may

5-3  submit to the county assessor of the county in which the single-

5-4  family residence is located a request for a statement of the total

5-5  amount postponed as of the date of the request and the interest

5-6  accrued thereon. Upon the receipt of such a request, the county

5-7  assessor shall request the county treasurer of the county in which

5-8  the single-family residence is located to prepare such a statement

5-9  and deliver a copy of the statement to the county assessor. Upon

5-10  the receipt of the statement, the county assessor shall provide the

5-11  claimant with a copy of the statement.

5-12      Sec. 17.  1.  Except as otherwise provided in section 18 of

5-13  this act, the payment of property tax postponed pursuant to

5-14  sections 2 to 21, inclusive, of this act becomes due and payable:

5-15      (a) If the single-family residence ceases to be occupied by the

5-16  claimant, or the claimant sells or otherwise disposes of his

5-17  possessory interest in the residence;

5-18      (b) If the claimant allows any property tax that has not been

5-19  postponed on the single-family residence to become delinquent

5-20  during the period of postponement;

5-21      (c) When the period for which the property tax will be

5-22  postponed expires, as indicated in the claimant’s certificate of

5-23  eligibility; or

5-24      (d) If the claimant dies. If a surviving spouse or other member

5-25  of the household is eligible to file a claim to postpone the payment

5-26  of property tax accrued on the single-family residence continues to

5-27  occupy the residence, the amounts postponed are not due unless

5-28  that member of the household dies or ceases to occupy the

5-29  residence.

5-30      2.  Payments on the amount of property tax postponed may be

5-31  made before they become due and payable.

5-32      Sec. 18. A county assessor shall deny any claim to which a

5-33  claimant is not entitled. A county assessor may deny any claim

5-34  which he finds to have been filed with fraudulent intent. If any

5-35  such claim has been approved and is afterward revoked, the

5-36  amount of the property tax that was postponed together with a 10

5-37  percent penalty becomes due and payable. If the tax and penalty

5-38  are not paid, the amount must be assessed against any real or

5-39  personal property owned by the claimant.

5-40      Sec. 19. Any person who willfully makes a materially false

5-41  statement or uses any other fraudulent device to secure for himself

5-42  or any other person the postponed payment of property tax

5-43  pursuant to the provisions of sections 2 to 21, inclusive, of this act

5-44  is guilty of a gross misdemeanor.

6-1  Sec. 20. 1.  The Department is responsible for the

6-2  administration of the provisions of sections 2 to 21, inclusive, of

6-3  this act.

6-4  2.  The Department may:

6-5  (a) Prescribe the content and form of claims and approve any

6-6  form used by a county assessor.

6-7  (b) Designate the information required to be submitted for

6-8  substantiation of claims.

6-9  (c) Establish criteria for determining the circumstances under

6-10  which a claim may be filed by one of two eligible persons.

6-11      (d) Prescribe that a claimant’s ownership of his single-family

6-12  residence must be shown of record.

6-13      (e) Verify and audit any claims, statements or other records

6-14  made pursuant to the provisions of sections 2 to 21, inclusive, of

6-15  this act.

6-16      (f) Adopt regulations to ensure the confidentiality of

6-17  information provided by claimants.

6-18      (g) Adopt such other regulations as may be required to carry

6-19  out the provisions of sections 2 to 21, inclusive, of this act.

6-20      Sec. 21. Except as otherwise provided by specific statute, no

6-21  person may publish, disclose or use any personal or confidential

6-22  information contained in a claim except for purposes connected

6-23  with the administration of the provisions of sections 2 to 20,

6-24  inclusive, of this act.

6-25      Sec. 22.  NRS 361.450 is hereby amended to read as follows:

6-26      361.450  1.  Except as otherwise provided in subsection 3,

6-27  every tax levied under the provisions of or authority of this chapter

6-28  is a perpetual lien against the property assessed until the tax and any

6-29  penalty charges and interest which may accrue thereon are paid.

6-30      2.  Except as otherwise provided in this subsection[,] and

6-31  section 15 of this act, the lien attaches on July 1 of the year for

6-32  which the taxes are levied, upon all property then within the county.

6-33  The lien attaches upon all migratory property, as described in NRS

6-34  361.505, on the day it is moved into the county. If real and personal

6-35  property are assessed against the same owner, a lien attaches upon

6-36  such real property also for the tax levied upon the personal property

6-37  within the county . [; and a] A lien for taxes on personal property

6-38  also attaches upon real property assessed against the same owner in

6-39  any other county of the State from the date on which a certified copy

6-40  of any unpaid property assessment is filed for record with the county

6-41  recorder in the county in which the real property is situated.

6-42      3.  All liens for taxes levied under this chapter which have

6-43  already attached to a mobile or manufactured home expire on the

6-44  date when the mobile or manufactured home is sold, except the liens

6-45  for personal property taxes due in the county in which the mobile or

7-1  manufactured home was situate at the time of sale, for any part of

7-2  the 12 months immediately preceding the date of sale.

7-3  4.  All special taxes levied for city, town, school, road or other

7-4  purposes throughout the different counties of this state are a lien on

7-5  the property so assessed, and must be assessed and collected by the

7-6  same officer at the same time and in the same manner as the state

7-7  and county taxes are assessed and collected.

7-8  Sec. 23.  NRS 361.483 is hereby amended to read as follows:

7-9  361.483  1.  Except as otherwise provided in subsection 5[,]

7-10  and sections 2 to 21, inclusive, of this act, taxes assessed upon the

7-11  real property tax roll and upon mobile or manufactured homes are

7-12  due on the third Monday of August.

7-13      2.  Taxes assessed upon the real property tax roll may be paid in

7-14  four approximately equal installments if the taxes assessed on the

7-15  parcel exceed $100.

7-16      3.  Taxes assessed upon a mobile or manufactured home may

7-17  be paid in four installments if the taxes assessed exceed $100.

7-18      4.  Except as otherwise provided in NRS 361.505, taxes

7-19  assessed upon personal property may be paid in four approximately

7-20  equal installments if:

7-21      (a) The total personal property taxes assessed exceed $10,000;

7-22      (b) Not later than July 31, the taxpayer returns to the county

7-23  assessor the written statement of personal property required

7-24  pursuant to NRS 361.265;

7-25      (c) The taxpayer files with the county assessor, or county

7-26  treasurer if the county treasurer has been designated to collect taxes,

7-27  a written request to be billed in quarterly installments and includes

7-28  with the request a copy of the written statement of personal property

7-29  required pursuant to NRS 361.265; and

7-30      (d) The business has been in existence for at least 3 years if the

7-31  personal property assessed is the property of a business.

7-32      5.  If a person elects to pay in installments, the first installment

7-33  is due on the third Monday of August, the second installment on the

7-34  first Monday of October, the third installment on the first Monday

7-35  of January, and the fourth installment on the first Monday of March.

7-36      6.  If any person charged with taxes which are a lien on real

7-37  property fails to pay:

7-38      (a) Any one installment of the taxes on or within 10 days

7-39  following the day the taxes become due, there must be added thereto

7-40  a penalty of 4 percent.

7-41      (b) Any two installments of the taxes, together with accumulated

7-42  penalties, on or within 10 days following the day the later

7-43  installment of taxes becomes due, there must be added thereto a

7-44  penalty of 5 percent of the two installments due.

8-1  (c) Any three installments of the taxes, together with

8-2  accumulated penalties, on or within 10 days following the day the

8-3  latest installment of taxes becomes due, there must be added thereto

8-4  a penalty of 6 percent of the three installments due.

8-5  (d) The full amount of the taxes, together with accumulated

8-6  penalties, on or within 10 days following the first Monday of

8-7  March, there must be added thereto a penalty of 7 percent of the full

8-8  amount of the taxes.

8-9  7.  Any person charged with taxes which are a lien on a mobile

8-10  or manufactured home who fails to pay the taxes within 10 days

8-11  after an installment payment is due is subject to the following

8-12  provisions:

8-13      (a) A penalty of 10 percent of the taxes due; and

8-14      (b) The county assessor may proceed under NRS 361.535.

8-15      8.  If any property tax postponed pursuant to sections 2 to 21,

8-16  inclusive, of this act becomes due and payable and the person

8-17  charged with that tax fails to make the required payment within 10

8-18  days after it becomes due, there must be added thereto a penalty of

8-19  7 percent of the amount of the tax that is due. If the required

8-20  payment is not paid within 30 days after it becomes due, there

8-21  must be added thereto all penalties and interest that would have

8-22  accrued had the property tax not been postponed pursuant to

8-23  sections 2 to 21, inclusive, of this act.

8-24      9.  The ex officio tax receiver of a county shall notify each

8-25  person in the county who is subject to a penalty pursuant to this

8-26  section of the provisions of NRS 360.419 and 361.4835.

8-27      Sec. 24.  This act becomes effective on July 1, 2003.

 

8-28  H