HOW IS THE TAXABLE VALUE OF PROPERTY DETERMINED
REAL PROPERTY – Each Assessor’s office in Nevada estimates the property’s ‘taxable’ value by considering its location, zoning, actual use, etc. Land values are estimated from market sales of vacant property or other recognized appraisal methods when vacant land sales are limited or nonexistent. Because the real estate market is so volatile, we have started valuing land on an annual basis. The taxable value of buildings is the estimated replacement cost new, less depreciation. The land value is added to the improvement's value to arrive at the property's overall taxable value. Taxable value may not exceed a property’s ‘Full Cash’ or market value. Property in Nevada is required to be reappraised (revalued) at least once every five years.
During years not reappraised the values are adjusted with factors approved by the Nevada Tax Commission. Land factors recognize the trend in vacant land sales or general market conditions. Improvement factors recognize the changing costs of construction less 1 1/2% depreciation each year. Additional appraisals may occur when improvements are added, new structures are built or because of use or zoning changes.
If a structure has been removed from the property and the Assessor's office is notified, the Assessor will delete the value from the assessment. Also, if on or after the lien date there was partial or total destruction of an improvement and the property was rendered unusable for not less than 90 consecutive days, the owner of the property may be entitled to an adjustment or credit.
PERSONAL PROPERTY - The personal property tax is calculated by the Assessor’s Office using the appropriate statutes and regulations set by the Legislature and the Nevada Tax Commission. Personal property is normally billed on the unsecured roll. In certain instances it can be added to the real property billing if the owner of the personal property also owns the associated real property. Personal property assessment is determined by the Assessor based on the Nevada Tax Commission regulations that set standards for determining the "cost of replacement" of various types of property. The standards must include a separate index of factors that apply to the acquisition cost of billboards, mobile homes, business and agricultural property to determine their replacement cost.
Seven schedules of depreciation for personal property are based on the expected life of the asset. Billboards and mobile/manufactured homes have their own depreciation and cost schedules.
To determine the "cost of replacement" for the purpose of computing the taxable value, the cost of all improvements, any additions or renovations of the personal property but excluding routine maintenance and repairs, must be added to the cost of acquisition. Upon determination of the assessed value, the Assessor applies the applicable tax district’s combined property tax rate to the assessed value. The same rate is used for both the secured and unsecured rolls.