NRS 361.4724 Partial abatement of taxes levied on certain residential rental dwellings; manner of submitting claim for partial abatement.
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NRS 361.4724 Partial abatement of taxes levied on certain residential rental dwellings; manner of submitting claim for partial abatement. The Legislature hereby finds and declares that many Nevadans who cannot afford to own their own homes would be adversely affected by large unanticipated increases in property taxes, as those tax increases are passed down to renters in the form of rent increases and therefore the benefits of a charitable exemption pursuant to subsection 8 of Section 1 of Article 10 of the Nevada Constitution should be afforded to those Nevadans through an abatement granted to the owners of residential rental dwellings who charge rent that does not exceed affordable housing standards for low-income housing.
The Legislature therefore directs a partial abatement of taxes for such owners as follows:
1. Except as otherwise provided in or required to carry out the provisions of subsection 2 and NRS 361.4725 to 361.4729 , inclusive, if the amount of rent collected from each of the tenants of a residential dwelling does not exceed the fair market rent for the county in which the dwelling is located, as most recently published by the United States Department of Housing and Urban Development, the owner of the dwelling is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:
(a)The amount of all the ad valorem taxes:
(1)Levied in that county on the property for the immediately preceding fiscal year; or
(2)Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,
Ê whichever is greater; and
(b)Three percent of the amount determined pursuant to paragraph (a).
2. The provisions of subsection 1 do not apply to:
(a)Any hotels, motels or other forms of transient lodging;
(b)Any property for which no assessed valuation was separately established for the immediately preceding fiscal year; and
(c)Any property for which the provisions of subsection 1 of NRS 361.4722 provide a greater abatement from taxation.
3. Except as otherwise required to carry out the provisions of NRS 361.4732 and any regulations adopted pursuant to NRS 361.4733 , the amount of any reduction in the ad valorem taxes levied in a county for a fiscal year as a result of the application of the provisions of subsection 1 must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.
4. A claim for a partial abatement of property taxes pursuant to this section must be submitted:
(a)In the manner prescribed by regulations adopted by the Nevada Tax Commission; or
(b)If a partial abatement of property taxes pursuant to this section is claimed on the form for a declaration of value prescribed by the Nevada Tax Commission pursuant to NRS 375.060 , on the form prescribed by the Nevada Tax Commission pursuant to NRS 375.060 .
5. The Nevada Tax Commission shall adopt such regulations as it deems appropriate to carry out this section.