Nevada's Property Tax System

How The Tax Rate is Determined

The tax rate is proposed in April of each year based on the budgets prepared by the various local governments:  counties, cities, school districts and special districts such as fire protection districts, etc.

Local government budgets, effective with FY 2005-2006, are constrained by the amount of revenue that will be generated under the partial tax abatements which limits the increase in property tax to 3% for single family residences and no more than 8% for other property.

As a result of the partial property tax abatements, a local government may determine that an additional tax rate is necessary to satisfy outstanding obligations secured by the property tax.  The local government may increase the tax rate to cover payment of the obligation as long as that portion of the rate is stated separately on the tax bill.  The local government may also go to the voters for approval to impose a rate which is exempt from the partial abatement caps.

Prior to the budget hearings, the County will publish a newspaper ad which identifies any property tax rate increases and the times and places for the different budget hearings.  These budget hearings present an opportunity for you to question expenditures and the property tax rates which will be set to cover the proposed expenditures.

The local government's budget must be adopted no later than June 1.  In June of each year, the Nevada Tax Commission approves the property tax rates based on the budgets submitted by the local governments.  A local government may not increase its total property tax rate above the rate of the previous year without approval of the Nevada Tax Commission.

How the Taxable Value of Property is Determined

Real Property -  The Assessor estimates the land's taxable (full cash) value by considering its location, zoning, actual use, etc.  Land values are estimated from market sales or other recognized appraisal methods.  The taxable value of buildings is the estimated replacement cost new less depreciation.  The land value is added to the improvement's taxable value to arrive at the property's overall taxable value.

Property in Nevada is required to be reappraised (revalued) at least once every five years.  Between reappraisal years the values are adjusted each year by factors approved by the Nevada Tax Commission.  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 were partial or total destruction of a real property improvement or personal property 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.

Buying or Selling a Home in Reno, Sparks or Fernley, Nevada?  Call Sandra For a Personal Consultation.