Nac: Chapter 361 - Property Tax

Link to law: http://www.leg.state.nv.us/nac/NAC-361.html
Published: 2015

[Rev. 4/16/2014 11:23:45 AM]

[NAC-361 Revised Date: 4-14]

CHAPTER 361 - PROPERTY TAX

GENERAL PROVISIONS

361.004            Definitions.

REGULATIONS OF NEVADA TAX COMMISSION

361.010            Definitions.

361.012            “Actual age” defined.

361.016            “Depreciation” defined.

361.018            “Improvement” defined.

EXEMPT PROPERTY

Fine Art for Public Display

361.030            “Fine art for public display”

defined.

361.032            Interpretation of terms used in NRS 361.186.

361.034            Calculation of interest payments on

art indebtedness.

361.036            Apportionment of direct costs when

works of art consist of more than fine art.

361.038            Requirements to receive credit for

donations to certain museums.

361.040            Affidavit for claiming exemption:

Form; contents.

361.044            Provision of poster to school or

parent of child who receives in-home instruction.

Property Used for Control of Air and Water Pollution

361.046            Examples of facilities, devices to

which exemption does not apply.

361.048            Application of exemption to

additions, modifications of operational devices.

361.050            Affidavits, reports, records

required to claim exemption.

Qualified Systems for Heating, Cooling or Provision of

Electricity

361.052            Determination of value added by

qualified system.

361.054            Form for requesting valuation.

361.056            Documentation to determine

conformity to standards.

361.058            List of buildings with qualified systems.

Miscellaneous Provisions

361.065            Tangible personal property

purchased by and consumed during operation of business.

361.070            Certain property leased or rented

to Nevada System of Higher Education.

361.080            Privately owned park: “Park”

interpreted; requirement for exemption.

361.085            “Portable goods and storage sheds

and other household equipment” interpreted.

361.089            Portions of qualified low-income

housing projects.

ASSESSMENTS BY COUNTY ASSESSORS

Determination of Taxable Value of Real Property

361.106            Definitions.

361.107            “Abstraction method” defined.

361.1073          “Accrued depreciation” defined.

361.1075          “Adjustment” defined.

361.109            “Allocation method” defined.

361.1095          “Base lot method” defined.

361.111            “Capitalization of ground rents”

defined.

361.1113          “Comparative unit method” defined.

361.1115          “Cost of development method”

defined.

361.1117          “Cost of replacement” defined.

361.1125          “Expected absorption period”

defined.

361.1127          “Fixture” defined.

361.113            “Improved land” defined.

361.1133          “Improvement” defined.

361.1141          “Land” defined.

361.1145          “Land enhancements” defined.

361.115            “Land residual technique” defined.

361.1155          “Mass appraisal technique” defined.

361.116            “Obsolescence” defined.

361.1163          “Off-site enhancements” defined.

361.1165          “On-site enhancements” defined.

361.1167          “Parcel” defined.

361.117            “Qualified subdivision” defined.

361.1171          “Raw land” defined.

361.11715        “Real property” defined.

361.1172          “Regression analysis” defined.

361.1173          “Single property technique”

defined.

361.1174          “Stratify” defined.

361.11745        “Trade fixture” defined.

361.1175          “Units of comparison” defined.

361.1176          “Vacant land” defined.

361.1177          Adoption by reference and

availability of certain publications; revision of publications after adoption.

361.1178          Code of categories of land use.

361.1179          Land: Methods for determining full

cash value.

361.11795        Land: Sales comparison approach

using mass appraisal technique.

361.118            Land: Sales comparison approach

using single property technique.

361.1182          Land: General requirements for

sales comparison approach.

361.1184          Land: Stratification for purposes

of sales comparison approach.

361.1186          Land: Sales data for purposes of

sales comparison approach.

361.1188          Land: Adjustments for purposes of

sales comparison approach.

361.119            Land: Alternate methods to sales

comparison approach.

361.1192          Land: General requirements for use

of alternative methods.

361.1194          Land: Abstraction method.

361.1196          Land: Land residual technique.

361.1198          Land: Capitalization of ground

rents.

361.1202          Land: Cost of development method.

361.1204          Land: Allocation method.

361.1206          Land: Regression analysis.

361.121            Obtaining and maintaining

sufficient data regarding characteristics of property.

361.1212          Use of appropriate units of

comparison.

361.1214          Consideration of influence of

on-site and off-site enhancements.

361.1216          Development of mass appraisal model

to explain or predict market value from real estate data.

361.1218          Determination of whether sufficient

sales of comparable properties are available.

361.122            Valuation of improved land.

361.1225          Accrued depreciation: Application;

calculation.

361.123            Contaminated property: Definitions.

361.1232          Contaminated property: Burden of

proof; documentation required.

361.1234          Contaminated property:

Determination of full cash value.

361.1236          Contaminated property: Annual

review.

361.124            Determination of actual age of

improvement or newly constructed addition to improvement.

361.125            Improvement: Initial taxable value.

361.127            Improvement: Replacement.

361.128            Improvement: Calculation of cost of

replacement.

361.1285          Common-interest communities.

361.129            Appraisal of parcel as part of

qualified subdivision.

361.1295          Taxable value of land within

qualified subdivision.

361.130            Mobile or manufactured home.

361.1305          Billboards.

361.131            Taxable value exceeding full cash

value.

361.1315          Adjustment in apportionment for

school district.

Real Property Within Common-Interest Community

361.133            Definitions.

361.1332          Applicability.

361.1334          Valuation of and assessment of tax

on community units and common elements.

361.1336          Allocation of taxable value of

common elements to community units.

Determination of Taxable Value of Personal Property

361.1345          Definitions.

361.1351          “Acquisition cost” and “original

cost” defined.

361.1355          “Costs of installation” defined.

361.1361          “Personal Property Manual”

defined.

361.1365          Personal Property Manual:

Publication; contents; approval; use.

361.1371          Procedure for determination of

taxable value.

361.1375          Determination of expected life,

cost-index factors and depreciation.

361.138            Reported acquisition cost for

leased equipment.

361.139            Personal property acquired with

real property for lump sum; use of other valuation techniques.

Miscellaneous Requirements

361.144            Areas of appraisal for cycle of

reappraisal.

361.146            Records of reappraisals.

361.150            Report of appraisals by county

assessor.

361.151            Statement of valuation of property

sold.

361.152            Assessment lists: Contents;

distribution.

361.154            Assessment roll filed with

Secretary of State Board of Equalization.

361.155            Billing of real property on unsecured

roll.

ASSESSMENTS BY NEVADA TAX COMMISSION

General Provisions

361.200            Definitions.

361.202            “Accelerated amortization” defined.

361.203            “Accelerated cost recovery system”

defined.

361.204            “Accelerated depreciation” defined.

361.206            “Accrual accounting” defined.

361.208            “Accrued depreciation” defined.

361.210            “Advance payments for gas” defined.

361.212            “Allocation to states” defined.

361.214            “Allowance for funds used during

construction” defined.

361.216            “Amortization” defined.

361.218            “Annuity” defined.

361.220            “Antipollution controls” defined.

361.222            “Apportionment to intrastate

jurisdiction” defined.

361.224            “Assessment ratio” defined.

361.226            “Band-of-investment” defined.

361.228            “Bond discount” defined.

361.230            “Bond premium” defined.

361.232            “Bond rating” defined.

361.234            “Book depreciation” defined.

361.236            “Book value,” “net book” defined.

361.238            “Capital structure” defined.

361.240            “Capitalization process” defined.

361.242            “Capitalization rate” defined.

361.244            “Cash accounting” defined.

361.246            “Cash equivalent” defined.

361.248            “Cash flow,” “net cash flow” or

“after-tax cash flow” defined.

361.250            “Cash flow, before-tax” defined.

361.252            “Certificate of convenience and

necessity” defined.

361.254            “Common carrier” defined.

361.256            “Compound interest and annuity

tables” defined.

361.258            “Construction work in progress”

defined.

361.260            “Contribution in aid of

construction” defined.

361.262            “Debt” defined.

361.264            “Deferred federal income taxes”

defined.

361.266            “Depreciation” defined.

361.268            “Discount rate” defined.

361.270            “Earnings-price ratio” defined.

361.272            “Economic life” defined.

361.274            “Economic rent” defined.

361.276            “Effective rate of interest”

defined.

361.278            “Equity” defined.

361.280            “Expense” defined.

361.282            “Fair market value” defined.

361.284            “Fair return” defined.

361.285            “Final reconciliation” defined.

361.286            “Fixed expenses” defined.

361.288            “Flow-through accounting” defined.

361.290            “Form P report” defined.

361.292            “Form 2 report” defined.

361.294            “Form 10-K report” defined.

361.296            “Forms R-1 and R-2” defined.

361.298            “Fractional appraisal” defined.

361.300            “Full cash value” defined.

361.302            “Functional depreciation” defined.

361.304            “Generally accepted accounting

principles” defined.

361.306            “Gross addition” defined.

361.308            “Gross income” defined; synonymous

with “gross earnings.”

361.310            “Historical cost” defined;

synonymous with “original cost.”

361.312            “Imbedded debt cost” defined.

361.314            “Inch equivalent” defined.

361.316            “Income” defined.

361.318            “Income approach to value” defined.

361.320            “Indicator of value” defined.

361.322            “Interest rate” defined.

361.324            “Interperiod allocation” defined.

361.326            “Investment tax credit” defined.

361.328            “Inwood factor or method” defined.

361.330            “Liberalized depreciation” defined.

361.332            “Load factor” defined.

361.334            “Main track” defined.

361.336            “Market value” defined.

361.338            “Net additions” defined.

361.340            “Net operating income” defined.

361.342            “Normalization accounting” defined.

361.344            “Obsolescence” defined.

361.346            “Operating expenses” defined.

361.348            “Operating revenue” defined;

synonymous with “net revenue.”

361.350            “Original cost” defined.

361.352            “Possessory interest” defined.

361.354            “Prepayments for gas” defined.

361.356            “Present worth” defined; synonymous

with “present value.”

361.358            “Price-earnings ratio” defined.

361.360            “Rate base” defined.

361.362            “Rate of capitalization” defined.

361.364            “Rate of performance” defined.

361.366            “Rate of return” defined.

361.368            “Recapture” defined.

361.370            “Remaining economic life” defined.

361.372            “Replacement cost” defined.

361.374            “Reproduction cost” defined.

361.376            “Reserve life” defined.

361.378            “Retirement depreciation” defined.

361.380            “Return on equity” defined.

361.382            “Revenue” defined.

361.384            “Risk” defined.

361.386            “Sinking fund” defined.

361.387            “Statistical median” defined.

361.388            “Straight-line depreciation”

defined.

361.390            “Summation method of valuation”

defined.

361.392            “System” defined.

361.394            “Tariff” defined.

361.396            “Taxable value” defined.

361.398            “Times interest earned” defined.

361.400            “Uniform system of accounts”

defined.

361.402            “Unitary method of valuation”

defined.

361.404            “Variable expenses” defined.

361.406            “Yield to maturity” defined.

361.408            Indicators of value: Cost approach;

income approach; market or stock and debt approach; reconciliation.

361.410            Use of unit rule of valuation.

361.411            Reports of construction work in

progress.

Communications, Electric, Gas Transmission, Pipeline and

Railroad Companies

361.421            Cost approach indicator of value:

Determination.

361.4215          Cost approach indicator of value:

Optional cost information.

361.423            Income approach indicator of value:

Formula for determination.

361.425            Income approach indicator of value:

Capitalization rate.

361.427            Stock and debt approach indicator

of value.

361.429            Reconciliation of indicators of

value.

361.431            Allocation of value of interstate

and intercounty properties.

361.433            Deductions from taxable value.

Air Transportation Companies Generally

361.451            Applicability.

361.452            Cost approach indicator of value.

361.454            Income approach indicator of value:

Formula for determination.

361.456            Income approach indicator of value:

Capitalization rate.

361.460            Reconciliation of indicators of

value.

361.462            Deduction of depreciated cost of

nonallocable flight equipment.

361.464            Allocation of value of interstate

companies.

361.466            Development, application of factor

for property located in Nevada.

361.468            Addition of property located in

Nevada.

Certain Air Transport Companies, Airline Industry Groups, and

Unscheduled or Charter Air Carriers

361.4685          Applicability.

361.469            Formula for assessment.

361.4695          Property located in Nevada.

Private Car Line Companies

361.506            Formula for assessment.

Municipal Electric Companies

361.508            Valuation.

CERTIFICATION OF APPRAISERS

361.535            Definitions.

361.537            “Appraiser” defined.

361.539            “Appraiser’s certificate” defined.

361.541            “Appraiser’s certificate

examination” defined.

361.543            “Approved education course”

defined.

361.545            “Board” defined.

361.547            “Contact hour” defined.

361.549            “Independent contractor” defined.

361.551            “Personal property appraiser’s

certificate” defined.

361.553            “Real property appraiser’s

certificate” defined.

361.555            Temporary appraiser’s certificate.

361.557            Appraiser’s certificate.

361.559            Independent contractor’s

appraiser’s certificate: Generally.

361.561            Independent contractor’s

appraiser’s certificate: Renewal.

361.563            Appraiser’s certificate

examination.

361.565            Continuing education: Review and

approval of courses; list of approved courses.

361.567            Continuing education: Credit;

documentation; waiver of and failure to satisfy requirements.

361.569            Continuing education: Maintenance

and availability of records.

361.571            Suspension and reinstatement of

appraiser’s certificate.

361.573            Revocation and reinstatement of

appraiser’s certificate; reapplication after revocation.

361.575            Appeal of suspension or revocation

of appraiser’s certificate.

EQUALIZATION OF ASSESSMENTS AMONG THE SEVERAL COUNTIES

361.580            Ratio study.

COLLECTION OF TAXES

Collection on Certain Vehicles

361.585            Placement of stickers on mobile

homes and campers.

Delinquent Payments

361.590            Waiver or reduction of penalty or

interest.

Assignment of Tax Liens by County Treasurers

361.595            Definitions.

361.5952          “Assignee” defined.

361.5954          “Delinquent taxes” defined.

361.5956          “Parcel number” defined.

361.5958          “Tax lien” defined.

361.5959          “Tax year” defined.

361.596            Affidavit of authorization.

361.5962          Duties of county treasurer upon

receipt of affidavit of authorization; affidavit of compliance; affidavit of

exemption.

361.5964          Denial of certificate of

assignment.

361.5966          Issuance of certificate of

assignment.

361.5968          Effect of certificate of

assignment.

361.597            Release of tax lien after

assignment.

PARTIAL ABATEMENT OF TAXES

General Abatement, Primary Residential Abatement and

Residential Rental Abatement

361.601            Definitions.

361.6015          “Abatement percentage” defined.

361.602            “County tax receiver” defined.

361.6025          “General abatement” defined.

361.603            “Primary residence of the owner”

defined.

361.6035          “Primary residential abatement”

defined.

361.604            “Residential rental abatement”

defined.

361.6045          “Single-family residence” defined.

361.605            General responsibilities of

Department.

361.6055          General responsibilities of county

assessors and county tax receivers.

361.606            Claim for primary residential

abatement: Form and contents; execution; action by county assessor; change in

ownership or occupation of property.

361.6065          Eligibility of certain property for

primary residential abatement; treatment of certain property used for multiple

purposes.

361.607            Residential rental abatement:

Duties of Department, county assessor and owner of property; filing of claim

and affidavit; eligibility of property.

361.6075          General abatement: Taxable unit of

centrally assessed property; ineligible property of interstate or intercounty

company.

361.608            Calculation of amount of abatement:

Applicable amount of tax levy for immediately preceding year and current year.

361.6085          Calculation of amount of abatement:

Property which escaped taxation; effect of adjustment to valuation of property

to correct certain errors.

361.609            Summary reports of property taxes

billed on behalf of each taxing entity.

Abatement for Remainder Parcels

361.61002        Definitions.

361.61004        “Abatement percentage” defined.

361.61006        “Agricultural use” defined.

361.61008        “Commercial or industrial use”

defined.

361.6101          “Current year” defined.

361.61012        “Institutional use” defined.

361.61014        “New parcel” defined.

361.61016        “New parcel for development”

defined.

361.61018        “Open-space use” defined.

361.6102          “Partial abatement” defined.

361.61022        “Prior year” defined.

361.61024        “Recreational use” defined.

361.61026        “Remainder parcel” defined.

361.61028        “Residential use” defined.

361.6103          “Vacant land held for development”

defined.

361.61032        Scope and purpose.

361.61034        New parcels: Evaluation;

determination of change in use; effect of determination.

361.61036        Calculation of amount of abatement

and maximum amount of property taxes.

361.61038        Determination of amount of net

property taxes attributable to remainder parcel for prior year; appeal of

determination.

Improvement to or Change in Actual or Authorized Use of

Property

361.6104          Definitions.

361.610405     “Agricultural use” defined.

361.61041        “Commercial use” defined.

361.610415     “Industrial use” defined.

361.61042        “Institutional use” defined.

361.610425     “Mining use” defined.

361.61043        “Multifamily residential use”

defined.

361.610435     “On-site improvement” defined.

361.61044        “Open-space use” defined.

361.610445     “Partial abatement” defined.

361.61045        “Recreational use” defined.

361.610455     “Single-family residential use”

defined.

361.61046        “Vacant land” defined.

361.610465     Scope and purpose.

361.61047        Determination of improvement to

property.

361.610475     Determination of change in actual

use.

361.61048        Determination of change in

authorized use.

361.610485     Determination of amount of property

taxes to be added to tax roll.

361.61049        Notification of determination that

will result in exclusion of any taxes from partial abatement.

Appeal of Determination of Applicability of Certain Abatements

361.6105          Definitions.

361.61052        “Contact person” defined.

361.61054        “Hearing officer” defined.

361.61056        “Intervener” defined.

361.61058        “Party” defined.

361.6106          “Petitioner” defined.

361.61062        “Staff” defined.

361.61064        Notice of appeal of determination

of county assessor or Department.

361.61066        Hearing before hearing officer;

findings and conclusions of hearing officer.

361.61068        Proposed order of hearing officer:

Written objection; reply to objection; action by Commission.

361.6107          Hearing before Commission: Order of

argument.

361.61072        Hearing before Commission: Basis on

record before hearing officer; determination that record is inadequate.

361.61074        Hearing before Commission: Action

by Commission; issuance of written order.

Annexation of Real Property to Taxing Entity

361.6115          Definitions.

361.6117          “Combined overlapping adjusted tax

rate” defined.

361.612            “Entity-adjusted parcel tax rate”

defined.

361.6123          “Revised tax base” defined.

361.6125          “Taxing entity” defined.

361.6127          “Year of annexation” defined.

361.613            Events constituting annexation.

361.6133          Calculations required after

annexation.

361.6135          Duties of tax receiver of county

and Department.

Abatement for Certain Energy Efficient Structures

361.617            Definitions.

361.6175          “Commission” defined.

361.618            “LEED” defined.

361.6185          “LEED Green Building Rating System”

defined; availability of copies.

361.619            Application to Commission;

ineligible structures.

361.6195          Consideration of application at

meeting of Commission; notice of meeting.

361.620            Grant of abatement by Commission.

EQUALIZATION BY COUNTY BOARD OF EQUALIZATION

361.622            Scope; power of county boards to

adopt additional requirements.

361.623            List of members of additional

panel.

361.624            Duty to equalize within geographic

vicinity, whole county; limitation on adjustment of result of cyclic

reappraisal.

361.626            Duties of county clerk.

361.627            Consideration of complaints.

361.628            Summary of appraisal data.

361.630            Order of appearances; testimony to

be under oath.

361.631            Evidence of market value.

361.632            Consolidation of cases.

361.634            Notices.

361.638            Exhibits; minutes; petition forms.

361.640            Notice of action.

361.6405          Determination of percentage of

obsolescence.

361.641            Deduction of percentage of

obsolescence when taxable value exceeds cash value.

361.643            Record to support reduction of

assessed valuation.

361.645            Appeal of decision to State Board

of Equalization: Record of proceedings before county board.

EQUALIZATION BY STATE BOARD OF EQUALIZATION

361.650            Definitions.

361.651            “County board” defined.

361.652            “Equalize property valuations”

defined.

361.653            “Interested person” defined.

361.654            “Ratio study” defined.

361.655            “Secretary” defined.

361.656            “State Board” defined.

361.657            Scope.

361.658            Adoption by reference of Standard

on Ratio Studies; revision of publication after adoption.

361.659            Annual sessions of State Board:

Duties of State Board; adjournment.

361.660            Information to be considered by

State Board.

361.661            Provision of certain information by

county assessor upon request of State Board.

361.662            Ratio studies and other statistical

analyses: Performance upon request of and evaluation by State Board.

361.663            Investigation and evaluation by

Department of procedures and operation of county assessor.

361.664            Preliminary finding that class or

group of properties was not assessed uniformly in accordance with methods of

appraisal and at level of assessment required by law: Scheduling and notice of

hearing.

361.665            Hearing on preliminary finding:

Order of State Board; additional hearing following order for reappraisal.

361.666            Hearings: Provision of notice by

Department.

361.667            Hearings: Persons required to

appear; conduct.

361.668            Order of State Board increasing or

decreasing valuation of property: Duties of county assessor and Department.

361.669            Reconsideration of order of State

Board.

PROCEEDINGS BEFORE STATE BOARD OF EQUALIZATION

General Provisions

361.682            Scope; construction; deviation.

361.684            Definitions.

361.686            Meetings: Notice; telephone

conference; conduct.

361.688            Communications.

Parties to Proceedings

361.690            Classification of

parties.

361.692            Interveners.

361.698            Qualifications of attorneys.

361.700            Limitations on representation of

parties and appearance as expert witness by former employees of Department or

Attorney General.

Hearings

361.701            Petition for appeal of final

decision of county board.

361.7012          Petition for direct appeal to State

Board.

361.7014          Action upon receipt of petition;

case file.

361.7016          Consolidation of cases.

361.7018          Notice of representation by

authorized agent.

361.702            Notice of hearing; duties of county

assessor or representative of county assessor.

361.703            Briefs, memoranda and other written

explanations.

361.705            Motions by parties; action by State

Board on its own motion.

361.706            Continuances.

361.708            Appearance of parties; failure to

appear.

361.712            Subpoenas.

361.714            Testimony must be under oath.

361.720            Official notice of State Board.

361.721            Format, execution and contents of

documents.

361.723            Filing and receipt of documents;

admission of late document into evidence.

361.724            Service of documents; certificate

of service.

361.726            Additional information and

appraisal.

361.729            Testimony before State Board:

Authority to testify; person who unlawfully acts as appraiser of real estate.

361.731            Transcripts.

361.733            Direct appeal: Rights of

petitioner, respondent and staff.

361.735            Direct appeal: Burden of proof;

receipt of evidence.

361.737            Direct appeal: Rules of evidence;

depositions; exchange of names of witnesses and copies of evidence.

361.739            Appeal of decision of county board:

Introduction of new evidence.

361.741            Appeal of decision of county board:

Burden of proof; order and length of presentations.

361.745            Direct appeal: Consideration of

issues, contentions and evidence outside scope of petition.

361.747            Submission of case for decision;

decision of State Board; correction of clerical mistake in record.

361.7475          Petition for reconsideration:

Filing and contents; answer; grant or denial.

361.748            Action for redress from finding of

State Board.

Advisory Opinions

361.749            Petitions: Authority; form and

contents.

361.751            Jurisdiction.

361.753            Opinions: Form; contents; issuance;

delivery; appeals.

ALLOCATION OF REDUCTIONS IN TAX REVENUE RESULTING FROM CERTAIN

PARTIAL ABATEMENTS OF TAXES

General Provisions

361.760            Entity-adjusted parcel tax rate:

Calculation and use.

Property Located Outside of Redevelopment Area or Tax

Increment Area

361.765            Definitions.

361.767            “Combined overlapping adjusted tax

rate” defined.

361.769            “Combined overlapping tax rate”

defined.

361.771            “Entity-adjusted parcel tax rate”

defined.

361.773            “Entity parcel tax rate increase”

defined.

361.775            “Redevelopment area” defined.

361.777            “Tax increment area” defined.

361.779            “Taxing entity” defined.

361.781            Calculation of deductions from

amounts taxing entities otherwise entitled to receive.

Property Located in Redevelopment Area or Tax Increment Area

361.785            Definitions.

361.787            “Combined overlapping adjusted tax

rate” defined.

361.789            “Debt tax rate” defined.

361.791            “Entity-adjusted parcel tax rate”

defined.

361.793            “Entity-adjusted parcel tax rate

increase” defined.

361.795            “Entity parcel tax rate increase”

defined.

361.797            “Entity percentage allowed parcel

tax rate increase” defined.

361.799            “Parcel effective assessed value”

defined.

361.801            “Parcel effective incremental

value” defined.

361.803            “Parcel share of base value”

defined.

361.805            “Property” defined.

361.807            “Redevelopment area” defined.

361.809            “Tax increment area” defined.

361.811            “Taxing entity” defined.

361.813            Calculations: General requirements.

361.815            Distribution of ad valorem taxes

collected on property for which parcel effective incremental value is zero.

361.817            Distribution of ad valorem taxes

collected on property located in redevelopment area and for which parcel

effective incremental value is greater than zero.

361.819            Distribution of ad valorem taxes

collected on property located in tax increment area and for which parcel

effective incremental value is greater than zero.

361.821            Application of certain provisions:

Limitations.

POSTPONEMENT OF PAYMENT OF TAX

361.851            Claim: Filing; form; contents;

accompanying documentation.

361.853            Claim: Action by county treasurer.

361.855            Determination of eligible amount of

income.

361.857            Approval of claim for taxes accrued

against mobile or manufactured home.

361.859            Approval of claim for taxes accrued

against single-family residence owned by trust.

361.861            Determination of amount for and

period of postponement.

361.863            Certificate of eligibility: Form;

exclusion of certain information.

361.865            Certificate of eligibility: Effects

of recordation and filing.

361.867            Statement of amount postponed:

Contents.

361.869            Application of payments made before

amounts become due.

361.871            Fraudulent claims.

ALLODIAL TITLE

General Provisions

361.900            Definitions.

361.902            “Certificate” defined.

361.904            “Installment agreement” defined.

361.906            “Owns” defined.

361.908            “Program” defined.

361.910            “Property tax” defined.

361.912            “Single-family dwelling” defined.

361.914            “Titleholder” defined.

Program

361.920            Purpose; requirements for

participation.

Certificate

361.926            Denial of application for failure

to provide requested information.

361.928            Consequences of fraudulent

misrepresentation or omission of information relating to application or

installment agreement.

361.930            Cost: Determination; actuarial

calculations; credit for certain property tax payments.

361.932            Cost: Payment options.

361.934            Payment in lump sum.

361.936            Payment in annual installments:

Installment agreement.

361.938            Payment in annual installments:

Remittance of payments; default.

361.940            Notification of State Treasurer by

holder of certificate if certain changes relating to property occur.

361.942            Recalculation of cost upon addition

or deletion of allodial titleholder involving transfer of interest to person

other than joint tenant.

361.944            Recalculation of cost upon addition

or deletion of allodial titleholder to reflect change in titleholders and

taxable value.

361.946            Relinquishment; refund.

361.948            Transference to heir.

Annual Statement

361.950            Provision by State Treasurer to

designee.

Allodial Title Trust Account

361.956            Efficient and secure maintenance;

limitation on use of money for investment and administrative expenses.

361.958            Recommended consultation with tax

professional concerning income tax liability and deductions relating to

Account.

 

 

GENERAL PROVISIONS

      NAC 361.004  Definitions. (NRS 361.0775)  Except

as otherwise provided in NAC 361.617 to 361.620, inclusive, as used in this chapter, unless

the context otherwise requires:

     1.  “Commission” means the Nevada Tax

Commission.

     2.  “Department” means the Department of

Taxation.

     3.  “Executive Director” means the Executive

Director of the Department.

     4.  “Fiscal year” means that period of time

from July 1 of one year to and including June 30 of the following year.

     (Supplied in codification; A by Comm’n on Econ.

Development by R220-05, 9-18-2006)

REGULATIONS OF NEVADA TAX COMMISSION

      NAC 361.010  Definitions. (NRS 360.090, 360.250)  As used in NAC 361.010 to 361.61049,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.012, 361.016

and 361.018, inclusive, have the meanings ascribed

to them in those sections.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;

A by R011-06, 5-4-2006; R001-07, 3-23-2007; R183-07, 8-26-2008; R109-08, 12-17-2008)

      NAC 361.012  “Actual age” defined. (NRS 360.090, 360.250)  “Actual age” means the

total number of years from the year of the construction of an improvement to

the year of the lien date for the taxes which it affects.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

      NAC 361.016  “Depreciation” defined. (NRS 360.090, 360.250)  “Depreciation” means,

except as otherwise provided in NAC 361.266, a loss

in the value of improvements or personal property from any cause.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;

A by R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.018  “Improvement” defined. (NRS 360.090, 360.250)  “Improvement” means,

except as otherwise provided in NAC 361.1133, all

appurtenances erected upon or affixed to the land, including, without

limitation, those improvements listed in paragraphs (a) and (b) of subsection 1

of NRS 361.035.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;

A by R039-10, 8-13-2010, eff. 7-1-2012)

EXEMPT PROPERTY

Fine Art for Public Display

      NAC 361.030  “Fine art for public display” defined. (NRS 360.090,

361.068, 361.186)  As used in NAC 361.030 to 361.044,

inclusive, unless the context otherwise requires, “fine art for public display”

has the meaning ascribed to it in paragraph (b) of subsection 4 of NRS 361.068.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

      NAC 361.032  Interpretation of terms used in NRS

361.186. (NRS 360.090, 361.068, 361.186)  For the purposes of NRS 361.186, the Department shall

interpret:

     1.  “Direct costs of owning and exhibiting

the fine art” to:

     (a) Except as otherwise provided in paragraph (a)

of subsection 5 of NRS 361.186,

include, without limitation:

          (1) Interest payments at a rate that does not

exceed the rate set forth in NRS

99.040 made by the taxpayer, or a subsidiary or affiliated entity of the

taxpayer, on secured or unsecured indebtedness used to acquire the work of fine

art during the fiscal year for which the taxpayer is claiming an exemption for

the work of fine art if the taxpayer complies with the provisions of NAC 361.034.

          (2) Insurance payments for the work of fine

art, including, without limitation, insurance which provides a guaranty on the

authenticity of the work of fine art.

          (3) Costs related to the repair, maintenance

and conservation of the work of fine art, including, without limitation,

cleaning and framing.

          (4) Costs related to the moving and storage of

the work of fine art in the immediate area of the facility in which the work of

fine art is displayed.

          (5) Salaries and employee benefits for persons

employed to work in the facility in which the work of fine art is displayed,

including, without limitation, gallery managers, curators, security personnel,

reservations agents and admissions personnel.

          (6) Costs related to the operation and

maintenance of the facility in which the work of fine art is displayed,

including, without limitation, environmental control systems, lighting and

security systems that are specific to such a facility.

          (7) Rent or other lease obligations for the

facility in which the work of fine art is displayed.

          (8) Personal property taxes assessed for the

work of art, except penalties or interest assessed on such taxes.

          (9) Real and personal property taxes assessed

for the facility in which the work of fine art is displayed, except penalties

or interest assessed on such taxes.

          (10) Allowable depreciation pursuant to

subsection 4 of NRS 361.227 for

furniture or fixtures in the facility in which the work of fine art is displayed.

          (11) Allowable depreciation pursuant to

paragraph (b) of subsection 1 of NRS

361.227 for real property on which the facility in which the work of fine

art is displayed is located and improvements to such a facility.

          (12) Communication devices that are used

exclusively for informing visitors to the facility about the work of fine art.

          (13) Costs for uniforms that persons who are

employed by the facility in which the work of fine art is displayed are

required to wear, including, without limitation, costs of laundering the

uniforms.

          (14) Costs associated with cleaning the

facility in which the work of fine art is displayed.

          (15) Commissions paid to credit card companies

for the use of credit cards to pay admission fees.

          (16) Advertising costs to notify the public of

the display of the work of fine art.

     (b) Not include any rent pursuant to an agreement

for the lease or loan of a work of fine art for public display.

     2.  “Fees collected for exhibiting the fine

art” to include, without limitation, fees paid by visitors to the facility for

the rental of communication devices that inform them about the work of fine

art.

     3.  “Resident” to mean a person who lives in

this State and possesses a valid driver’s license or other identification

issued by this State.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

      NAC 361.034  Calculation of interest payments on art indebtedness. (NRS 360.090,

361.068, 361.186)

     1.  For a work of fine art that was acquired

with a portion of the proceeds of a secured or unsecured indebtedness, the

amount of the interest on the total indebtedness that the taxpayer may claim as

interest payments made on the art indebtedness pursuant to subparagraph (1) of

paragraph (a) of subsection 1 of NAC 361.032 must

be calculated for the fiscal year for which the taxpayer is claiming an

exemption for the work of fine art by applying the applicable rate or rates of

interest to the amount of the art indebtedness. The interest payments must be

recalculated each time that:

     (a) A payment is made towards the principal of the

total indebtedness;

     (b) A draw is made against the principal of the

total indebtedness; or

     (c) The principal of the total indebtedness is increased

or decreased in any other manner.

     2.  For the purposes of the calculations

required by subsection 1:

     (a) If the principal of the total indebtedness is

reduced by a principal payment or in some other manner, the principal of the

art indebtedness must be reduced as follows:

 



Total amount of the art

indebtedness before payment or other reduction

 





X





Amount of principal payment made

or other reduction of the principal of the total amount of the indebtedness





=





Reduction in the principal on the

art indebtedness







 

Total amount of the principal of

the indebtedness before payment or other reduction





 

     (b) The amount of the interest payments for the art

indebtedness must be determined as follows, after reducing the total amount of

the art indebtedness by any reduction in principal calculated pursuant to

paragraph (a), reducing the total amount of the principal of the indebtedness

by the principal payment or other reduction and increasing the total amount of

the principal of the indebtedness by the amount of any increase in the total

amount of the principal of the indebtedness:

 



Total amount of the art indebtedness

 





X





Interest accrued on the total

amount of the indebtedness





=





Amount of interest accrued on the

art indebtedness







 

Total amount of the principal of

the indebtedness





 

     3.  If a taxpayer, or a subsidiary or

affiliated entity of the taxpayer, incurs interest expenses on indebtedness, a

portion of the proceeds of which were used to acquire a work of fine art, the

burden for appropriately allocating the principal payments and interest

expenses for the work of fine art between the taxpayer and the subsidiary or

affiliated entity of the taxpayer and between the work of fine art and the

other items acquired with the proceeds of the indebtedness is on the taxpayer

who is claiming an exemption for the work of fine art pursuant to paragraph (j)

of subsection 1 of NRS 361.068.

     4.  If, for the purposes of claiming an

exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068, a taxpayer acquires a

work of fine art using the proceeds of an indebtedness, the taxpayer must incur

the indebtedness for the work of fine art within 120 days after the acquisition

of the work of fine art unless the Department agrees to an extension of time.

     5.  To qualify or remain eligible for an

exemption pursuant to paragraph (j) of subsection 1 of NRS 361.068, a taxpayer who wishes

to refinance the outstanding amount of the indebtedness incurred to purchase

the work of fine art must be able to trace the new debt directly to the

repayment of the prior debt.

     6.  As used in this section, “art

indebtedness” means the amount of the principal of the total indebtedness

attributable to the acquisition of the work of fine art.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

      NAC 361.036  Apportionment of direct costs when works of art consist of more

than fine art. (NRS 360.090, 361.068, 361.186)  If an exhibition does not

consist solely of fine art for public display owned by the taxpayer, the

Department will apportion the direct costs of owning and exhibiting the fine

art based on the percentage that the value of the fine art for public display owned

by the taxpayer bears to the value of all the works of art included in the

exhibition.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

      NAC 361.038  Requirements to receive credit for donations to certain museums. (NRS 360.090,

361.068, 361.186)  For a taxpayer to receive

a credit for a donation to a museum that provides exhibits specifically related

to nature or a museum that provides exhibits specifically related to children,

such a museum must be operated by an organization that:

     1.  Qualifies for exemption from taxation

pursuant to section 501(c)(3) of the Internal Revenue Code; and

     2.  The net earnings of which do not inure to

the benefit of any private shareholder or other person.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

      NAC 361.040  Affidavit for claiming exemption: Form; contents. (NRS 360.090,

361.068, 361.186)  The affidavit that a

taxpayer who is claiming an exemption pursuant to paragraph (j) of subsection 1

of NRS 361.068 must file

pursuant to paragraph (a) of subsection 3 of NRS 361.068 with the county

assessor on or before June 15 of each year in which the taxpayer claims the

exemption must:

     1.  Be notarized;

     2.  Be in a form prescribed by the

Department; and

     3.  Contain:

     (a) A statement that the work of fine art will meet

the criteria set forth in paragraph (b) of subsection 4 of NRS 361.068 during the following

fiscal year;

     (b) A description of the work of fine art for which

the taxpayer is claiming an exemption;

     (c) The purchase price or appraisal value of the

work of fine art;

     (d) The fiscal year for which the exemption is

sought; and

     (e) A statement in substantially the following

form:

 

     “I, ____________, state under oath and pursuant to the

conditions set forth in NRS 361.185

and 361.265, that the attached

claim for the property tax exemption is made in good faith and to the best of

my knowledge and belief is a true, correct and complete statement that said

property meets the requirements of NRS

361.068. Further, I authorize the Nevada Tax Commission or its designee to

inspect the fine art for public display for which I am claiming an exemption

and any supporting documents, or otherwise verify the validity of my claim.”

 

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

      NAC 361.044  Provision of poster to school or parent of child who receives

in-home instruction. (NRS 360.090, 361.068, 361.186)  Upon receiving a request

for a poster pursuant to paragraph (b) of subsection 3 of NRS 361.068, the taxpayer shall

select which poster to provide to the school or parent.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)

Property Used for Control of Air and Water Pollution

      NAC 361.046  Examples of facilities, devices to which exemption does not

apply. (NRS 360.090, 361.077)  Examples of facilities and

devices to which the exemption from taxation provided by NRS 361.077 does not apply are:

     1.  A mining operation or the generating

facility of an electric utility which, in the treatment of water for reentry

into public streams, distills and sells the water at a minor additional cost

and offsets the total cost of the treatment and distilling process.

     2.  The installation of pollution control

equipment to remove air pollutants from fuel exhausts and better utilize the

fuel in manufacturing or industrial plants or where recovery of minerals in

mining operations is made possible which results in a lower overall operating

expense ratio.

     3.  Facilities or equipment, including

blacktop for roadways and parking areas, water trucks and sprinkling systems,

which are necessary for the normal operation of the enterprise and which are

not specifically exempted by statute or the Constitution or which are not

required by the appropriate environmental agencies.

     [Tax Comm’n, Property Tax Reg. part No. 6, eff. 9-7-73;

A 3-29-74; 11-15-77]

      NAC 361.048  Application of exemption to additions, modifications of

operational devices. (NRS 360.090, 361.077)  If an addition is made to

or a modification is made in a device whose primary purpose is operational, but

the addition or modification is a “facility, device or method for the control

of air or water pollution” as defined in NRS 361.077, the value of the

addition or modification, but not the value of the entire device, is exempt

from taxation.

     [Tax Comm’n, Property Tax Reg. part No. 6, eff. 11-15-77]

      NAC 361.050  Affidavits, reports, records required to claim exemption. (NRS 360.090,

361.077)

     1.  An affidavit on a form approved by the

Department for claiming an exemption pursuant to NRS 361.077 must be supplied

annually to the county assessor of the county in which the property is located

or to the Department if the property is of an intercounty or interstate nature

as defined in NRS 361.032.

     2.  Owners of property of an interstate

nature, as defined in NRS 361.032,

shall report only those properties physically located in Nevada.

     3.  The taxpayer shall maintain accurate

records which will reflect the additional net revenue to the operation which

results from the installation of any equipment for which an exemption is

claimed pursuant to NRS 361.077.

     4.  Copies of any orders from regulatory

agencies directing the installation of a device or equipment must be submitted

upon request to the county assessor or the Department.

     [Tax Comm’n, Property Tax Reg. part No. 6, eff. 9-7-73;

A 11-15-77]

Qualified Systems for Heating, Cooling or Provision of

Electricity

      NAC 361.052  Determination of value added by qualified system. (NRS 360.090,

360.250, 361.079)

     1.  For the purpose of NRS 361.079, a county

assessor may consider value added by a qualified system as the difference

between the cost of the building with the qualified system and the cost of a

building constructed in a conventional manner without a qualified system and

put to the same or a similar use. For example, a building of masonry

construction used to provide solar energy may be valued on the basis of frame

construction.

     2.  The value added by that portion of a

qualified system which is not used for heating or cooling or to provide

electricity or is essential to a conventionally built structure, must be

included in the assessed value of the building. For example, a qualified system

with an enclosed area for a solarium or sun space that is also used as a

limited living area may be valued as an enclosed porch if it facilitates the

use of solar energy.

     (Added to NAC by Tax Comm’n, eff. 4-24-84)

      NAC 361.054  Form for requesting valuation. (NRS 360.090, 360.250, 361.079)  A county

assessor may provide an appropriate form for the owner of a building to request

the valuation of a qualified system. If an owner does not complete such a form,

the owner may not be precluded from appealing the valuation of the building to

the county board of equalization.

     (Added to NAC by Tax Comm’n, eff. 4-24-84)

      NAC 361.056  Documentation to determine conformity to standards. (NRS 360.090,

360.250, 361.079)  A county

assessor, a county board of equalization or the State Board of Equalization may

require documentation from the owner of a building who has requested the

valuation of a qualified system to determine whether it conforms to the

standards established by the Department and functions to conserve energy.

     (Added to NAC by Tax Comm’n, eff. 4-24-84)

      NAC 361.058  List of buildings with qualified systems. (NRS 360.090,

361.079)  On or

before April 1 of each year, each county assessor shall submit to the

Department for the preceding year a written list of the buildings in his or her

county which have qualified systems.

     (Added to NAC by Tax Comm’n, eff. 4-24-84)

Miscellaneous Provisions

      NAC 361.065  Tangible personal property purchased by and consumed during

operation of business. (NRS 360.090, 361.068)

     1.  All tangible personal property which is

purchased by a business and which is claimed to be exempt pursuant to paragraph

(d) of subsection 1 of NRS 361.068

must be consumed during the operation of the business and must not be intended

to become a component part of a manufactured item for sale or lease.

     2.  The personal property for which such an

exemption is claimed must be material that is:

     (a) Used up, drained, absorbed, dissipated or

expended during the normal day-to-day operation of the business;

     (b) Characterized by its individual low cost in

relation to the other more expensive fixed assets of the business;

     (c) Disposable, with a generally useful life of

less than 1 year; and

     (d) Not meant for resale.

     3.  Tangible personal property which is

consumed by a business and to which this exemption applies may include, without

limitation, envelopes, pens, copy paper, paper clips, toner, tape, rubber

gloves, masks, cyanide, janitorial supplies, bathroom tissue, light bulbs,

playing cards, dice, napkins, straws, “doggie bags,” paper bags, wrapping

materials, register tape, packaging supplies, invoices, Styrofoam, tires or

batteries.

     4.  This exemption does not apply to any

tangible personal property which is required to be depreciated for federal

income tax purposes.

     (Added to NAC by Tax Comm’n, eff. 7-9-96; A by R031-03,

8-4-2004)

      NAC 361.070  Certain property leased or rented to Nevada System of Higher

Education. (NRS 360.090, 361.099)

     1.  Application for an exemption pursuant to NRS 361.099 must be made to the

county assessor by June 15 of each year.

     2.  The application must include a copy of

the rental agreement and documentation from the lessor that proves that the

total consideration for the rental or lease of the property is less than 10

percent of the fair market value of the property. Documentation may include,

but is not limited to:

     (a) A copy of the lease of the previous tenants;

     (b) A copy of the lease or notarized statement from

owners of similar or like properties; and

     (c) Statements from real estate brokers.

     (Added to NAC by Tax Comm’n, eff. 7-9-96)

      NAC 361.080  Privately owned park: “Park” interpreted; requirement for

exemption. (NRS 360.090, 361.0605)

     1.  As used in NRS 361.0605, the Department shall

interpret “park” to mean a detached tract of privately owned real property that

is set apart and maintained for public use, generally of quite sizable

proportions devoted to purposes of ornamentation and recreation, and usually

platted out with trees and ornamented in a way pleasing to the eye as well as

furnishing an opportunity for open-air recreation.

     2.  To qualify as a park for the purposes of

the exemption provided by NRS

361.0605, a sign which is clearly legible and visible from ground level

must be posted at each entrance to the park stating “This park is open to the

public for all to use.”

     (Added to NAC by Tax Comm’n, eff. 9-6-96)

      NAC 361.085  “Portable goods and storage sheds and other household equipment”

interpreted. (NRS 360.090, 361.069)  As used in subparagraph

(8) of paragraph (a) of subsection 4 of NRS 361.069, the Department shall

interpret “portable goods and storage sheds and other household equipment” to

include, without limitation:

     1.  A portable shed which is less than 120

square feet in area and which does not have a foundation;

     2.  A portable carport or aluminum awning which

is less than 120 square feet in area and which does not have a foundation;

     3.  A satellite dish that is owned by the

owner of the dwelling unit or a person who resides in the dwelling unit;

     4.  Decorative outdoor lighting;

     5.  A freestanding wood stove;

     6.  A portable spa;

     7.  A swamp cooler or air-conditioning unit

that is attachable to the window of dwelling units;

     8.  Skirting on a mobile home;

     9.  Portable steps on a mobile home; and

     10.  Portable tubular panels for a corral.

     (Added to NAC by Tax Comm’n by R014-98, eff. 11-20-98)

      NAC 361.089  Portions of qualified low-income housing projects. (NRS 360.090,

361.082)

     1.  An owner of property who wishes to

qualify the property for exempt status pursuant to NRS 361.082 must apply to the

county assessor for the exemption not later than June 15 of each year. The

application must be on a form approved by the Commission.

     2.  Except as otherwise provided in this

section, an application for the exemption of property pursuant to NRS 361.082 must contain

information showing:

     (a) That the property is part of a qualified

low-income housing project funded in part by federal money appropriated

pursuant to 42 U.S.C. §§ 12701 et seq. for the year in which the exemption

applies;

     (b) That the property, including related

facilities, has been occupied or used by qualified residents or will be used

exclusively as low-income units as of June 15 of that year; and

     (c) The total number of qualifying low-income units

and the number of units rent-restricted and currently occupied by persons

meeting the income limitation applicable under 26 U.S.C. § 42(g)(1).

     3.  The following additional documentation

must also be attached to the application:

     (a) Documentation showing the property is part of a

qualified low-income housing project, including, without limitation:

          (1) A declaration of restrictive covenants;

          (2) A letter of verification from the

appropriate housing agency in charge of dispensing federal funds which states

that the project qualifies as a qualified low-income housing project and

includes the type of federal funding granted, the date on which the funding was

granted and the date of expiration of the funding; or

          (3) Any other verification of the disbursement

of federal funding and the date of the disbursement.

     (b) Documentation showing the election of the

taxpayer to qualify as a low-income housing project under the 20-50 test or the

40-60 test pursuant to 26 U.S.C. § 42(g). Such documentation may include,

without limitation, a copy of that portion of a federal income tax return

claiming the federal tax credit.

     (c) For an initial application, a copy of:

          (1) The first quarter or annual status report

for the project issued by the appropriate housing agency showing the number of

units, the sizes of the units, the names of the tenants occupying those units,

the sizes of the households living in those units, the actual amount of rent

paid by the tenants of those units, the utility allowance, the annual household

incomes of the tenants of those units and the rental activity for those units;

and

          (2) Area median income limits published each

year by the Department of Housing and Urban Development used in the

determination of eligibility for Section 8 subsidized rental housing which are

incorporated in the income limits for the Home Investment Partnerships Program

as of March 31 of the most current year.

     4.  Each owner of property who receives an

exemption for low-cost housing shall annually file with the county assessor:

     (a) A report that includes the information and

documentation identified in subsections 2 and 3; or

     (b) An affidavit providing that information on a

form approved by the Commission.

     5.  An owner of property need not include on

his or her renewal form the documentation and information described in

paragraph (a) of subsection 2.

     6.  The owner of the property shall maintain

accurate records in support of the information requested.

     7.  The county assessor shall disallow claims

for exemption on any unit that:

     (a) Is not rent-restricted; or

     (b) Is not a part of a qualified low-income housing

project funded in part by federal money appropriated pursuant to 42 U.S.C. §§

12701 et seq. for the year in which the exemption is sought.

     8.  Any claim for exemption denied by the

county assessor affecting the taxable value of the property may be appealed to

the county board of equalization in accordance with NRS 361.345.

     9.  As used in this section:

     (a) The “20-50 test” means a test that requires 20

percent or more of the residential units in the low-income housing project to

be both rent-restricted and occupied by natural persons whose income is 50

percent or less of the area median gross income.

     (b) The “40-60 test” means a test that requires 40

percent or more of the residential units in the low-income housing project to

be both rent-restricted and occupied by natural persons whose income is 60

percent or less of the area median gross income.

     (c) “Low-income unit” means any unit in a building

that:

          (1) Is rent-restricted pursuant to 26 U.S.C. §

42(g)(2);

          (2) Is occupied by persons who meet the income

limitations applicable under the 20-50 test or the 40-60 test, as appropriate;

and

          (3) Meets all other applicable exceptions and

limits pursuant to 26 U.S.C. § 42(i)(3).

     (d) “Qualified low-income housing project” means

any project for residential rental property meeting the 20-50 test or the 40-60

test, whichever is elected by the taxpayer pursuant to 26 U.S.C. § 42.

     (e) “Related facilities” means that part of

qualified low-income housing occupied or used exclusively by persons with low

incomes, including, without limitation, playgrounds, community rooms, the

manager’s office and the low-income unit.

     (Added to NAC by Tax Comm’n by R029-03, eff. 12-4-2003)

ASSESSMENTS BY COUNTY ASSESSORS

Determination of Taxable Value of Real Property

      NAC 361.106  Definitions. (NRS 360.090, 360.250)  As used in NAC 361.106 to 361.1315,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.107 to 361.1176,

inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification; A by Tax Comm’n, 11-14-88;

R013-98, 11-20-98; R031-03, 8-4-2004; R166-07, 6-17-2008; R039-10, 8-13-2010,

eff. 7-1-2012; R068-12, 9-14-2012)

      NAC 361.107  “Abstraction method” defined. (NRS 360.090, 360.250)  “Abstraction method” means

a method of estimating the value of land by subtracting from the sales prices

of improved parcels the full contributory value of all items attributable to

the value of the improvements, thus yielding estimates of the residual or remainder

value of the land.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

      NAC 361.1073  “Accrued depreciation” defined. (NRS 360.090, 360.250)  “Accrued depreciation”

means the amount of loss in the value of an improvement relative to its

replacement cost, reproduction cost or original cost as a result of physical

deterioration, functional obsolescence or economic obsolescence.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1075  “Adjustment” defined. (NRS 360.090, 360.250)  “Adjustment” means a

modification of the reported value of a variable, such as sale price or gross

income, using a model calibration technique for the purpose of estimating the

full cash value of property.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.109  “Allocation method” defined. (NRS 360.090, 360.250)  “Allocation method” means

a method used to value land, in the absence of a sufficient number of sales of

vacant land, by estimating a typical ratio of land to total value and applying

that ratio to comparable improved properties to determine the value that the

land contributes to the total value of the subject property.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;

A by R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.1095  “Base lot method” defined. (NRS 360.090, 360.250)  “Base lot method” means a

method of appraising land pursuant to which:

     1.  The parcel or other area of land being

appraised is compared to a base lot consisting of a parcel or hypothetical area

of land having common or typical characteristics and a known value; and

     2.  Any differences between the parcel or

other area of land being appraised and the base lot with respect to location,

size, shape, topography and similar factors are analyzed by the appraiser,

Ê to estimate

the value of the land being appraised.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

      NAC 361.111  “Capitalization of ground rents” defined. (NRS 360.090,

360.250)  “Capitalization

of ground rents” means the estimation of the value of land in the absence of

comparable sales by capitalizing the revenue from market-rate leases of land.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

      NAC 361.1113  “Comparative unit method” defined. (NRS 360.090,

360.250)  “Comparative

unit method” means a method of appraising land pursuant to which an average or

typical value is estimated for each stratum of land, using square feet, front

feet, acres, buildable units or other similar units of comparison.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

      NAC 361.1115  “Cost of development method” defined. (NRS 360.090,

360.250)  “Cost of

development method” means a method used to estimate the value of undeveloped

land in which direct and indirect costs and entrepreneurial profit are deducted

from an estimate of the probable proceeds to be obtained from selling the land

as developed parcels and the resulting net income is discounted to a present

value at a market-derived rate.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

      NAC 361.1117  “Cost of replacement” defined. (NRS 360.090, 360.250)  “Cost of replacement”

means the total cost of construction required to replace an improvement with a

substitute of like or equal utility using current standards of materials and

design, including the cost of any pertinent labor, materials, supervision,

contractors’ profit and overhead, architects’ plans and specifications, sales

taxes and insurance.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1125  “Expected absorption period” defined. (NRS 360.090,

360.250)  “Expected

absorption period” means the length of time within which all the parcels in a

qualified subdivision may reasonably be expected to be sold, rented or occupied

if they are actively marketed. The period begins on July 1 of the year for

which the tax on the parcels is levied and ends on the date determined by the

county assessor.

     (Added to NAC by Tax Comm’n, eff. 11-14-88)

      NAC 361.1127  “Fixture” defined. (NRS 360.090, 360.250)  “Fixture” means an item,

other than a trade fixture, that was originally personal property which has

been installed or attached to land or an improvement in a permanent manner. As

used in this section, “installed or attached to land or an improvement in a

permanent manner” means that:

     1.  Either:

     (a) An item is attached to, imbedded in or

permanently resting upon land or an improvement, or is attached by other means

that are normally used for permanent installation, and cannot be removed

without substantially damaging the item or the land or improvement with which

it is being used; or

     (b) The use or purpose of an item that is not

otherwise physically annexed to land or an improvement is so adapted that it

is:

          (1) A necessary, integral or working part of

the land or improvement;

          (2) Designed or committed for use with the

land or improvement; or

          (3) So essential to the land or improvement

that the land or improvement cannot perform its desired function without the

nonattached item; and

     2.  A reasonable person would consider the

item to be a permanent part of the land or improvement, taking into account

annexation, adaptation and other objective manifestations of permanence,

including, without limitation, whether:

     (a) Removal of the item would destroy the item or

cause significant damage to the real property to which it is installed or attached;

     (b) The historic use of the item indicates an

intention to leave the item in place;

     (c) The terms of a written agreement between

parties indicates the intention of a tenant or lessee to remove or transfer

ownership of the item; or

     (d) Ownership of the item would be conveyed with a

transfer of the real property to which it is installed or attached.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012; A by R068-12, 9-14-2012)

      NAC 361.113  “Improved land” defined. (NRS 360.090, 360.250)  “Improved land” means land

on which there are any improvements sufficient to allow the identification of

or establish the current actual use.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 5-27-82]—(NAC

A by R031-03, 8-4-2004; R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.1133  “Improvement” defined. (NRS 360.090, 360.250)  “Improvement” means any

building, fixture or other structure erected upon or affixed to the land,

including, without limitation, any of those improvements listed in paragraphs

(a) and (b) of subsection 1 of NRS

361.035. The term does not include any land enhancements.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1141  “Land” defined. (NRS 360.090, 360.250)  “Land” means that portion

of real property which includes:

     1.  The surface of the earth, together with

the air space above that surface and everything under that surface to the apex

at the center of the earth;

     2.  Any natural resource in its natural state

attached to the land, including, without limitation, mineral deposits, timber,

water and soil; and

     3.  Any rights, interests, benefits and

privileges belonging or attached to the land.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1145  “Land enhancements” defined. (NRS 360.090, 360.250)  “Land enhancements” means:

     1.  Physical modifications of the land whose

contribution to the value of the land is not subject to wear and tear or to exhaustion,

such as, without limitation, excavation and other earthwork; and

     2.  Rights which allow the land to be put to

any use.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.115  “Land residual technique” defined. (NRS 360.090,

360.250)  “Land

residual technique” means a method used to estimate the value of land from a

knowledge of normal net income, the discount rate, the remaining economic life

of the property and the full contributory value of any improvements and

nonrealty items. The method isolates a measurable income stream attributable to

the improvements and then estimates the value of the land by capitalizing the

income stream attributable to the land.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

      NAC 361.1155  “Mass appraisal technique” defined. (NRS 360.090,

360.250)  “Mass

appraisal technique” means a procedure for the valuation of a group of

properties as of a given date using either a base lot method or comparative

unit method.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;

A by R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.116  “Obsolescence” defined. (NRS 360.090, 360.250)  “Obsolescence” means an

impairment to property resulting in the full cash value of the property being

less than its taxable value as otherwise computed.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]

      NAC 361.1163  “Off-site enhancements” defined. (NRS 360.090, 360.250)  “Off-site enhancements”

means improvements and land enhancements outside the boundaries of the subject

property which facilitate the development of the property for any use,

including, without limitation, such improvements and land enhancements that do

not prepare the property for a specific use, such as streets, traffic signals,

curbs, gutters and sidewalks, and such improvements and land enhancements for

the provision of water service, sewer service, electricity service, natural gas

service, telephone service and service for the transmission of data.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1165  “On-site enhancements” defined. (NRS 360.090, 360.250)  “On-site enhancements”

means land enhancements within the boundaries of the subject property which

facilitate the development of the property for any use.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1167  “Parcel” defined. (NRS 360.090, 360.250)  “Parcel” means a

contiguous area of land which is:

     1.  Held under common ownership;

     2.  Subject to conveyance separately from

other land; and

     3.  Identified by an assessor’s parcel number

in accordance with the provisions of NRS

361.189 to 361.220,

inclusive.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.117  “Qualified subdivision” defined. (NRS 360.090, 360.250)  “Qualified subdivision”

means a group of parcels meeting the criteria contained in NAC 361.129.

     (Added to NAC by Tax Comm’n, eff. 11-14-88)

      NAC 361.1171  “Raw land” defined. (NRS 360.090, 360.250)  “Raw land” means land in

its natural state before any human modification.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.11715  “Real property” defined. (NRS 360.090, 360.250)

     1.  “Real property” has the meaning ascribed

to it in NRS 361.035 and

includes:

     (a) Land;

     (b) Fixtures;

     (c) Improvements;

     (d) On-site enhancements; and

     (e) Any rights, interests, benefits and privileges

belonging or attached to the land.

     2.  The term does not include a trade

fixture.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012; A by R068-12, 9-14-2012)

      NAC 361.1172  “Regression analysis” defined. (NRS 360.090, 360.250)  “Regression analysis”

means a statistical technique used to analyze data to predict the value of one

variable from the known values of other variables.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

      NAC 361.1173  “Single property technique” defined. (NRS 360.090,

360.250)  “Single

property technique” means a procedure for the valuation of a single parcel or

other area of land as of a given date.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;

A by R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.1174  “Stratify” defined. (NRS 360.090, 360.250)  “Stratify” means to sort

parcels of property into relatively homogeneous groups based upon use, physical

characteristics, location or other relevant characteristics.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.11745  “Trade fixture” defined. (NRS 360.090, 360.250)  “Trade fixture” means an

item of personal property that:

     1.  Is installed or attached nonpermanently

to real property by an owner or tenant for the purpose of conducting a business

or trade and not for the enhancement of the real property to which it is

installed or attached; and

     2.  Has a unique identity and function which

is related to the business or trade for which it is installed or attached and

which is distinct from the real property to which it is installed or attached.

     (Added to NAC by Tax Comm’n by R068-12, eff. 9-14-2012)

      NAC 361.1175  “Units of comparison” defined. (NRS 360.090, 360.250)  “Units of comparison”

means the components into which properties may be divided for the purpose of

comparing sales, such as, without limitation, the sale price for property as a

whole or for property per square foot, front foot, cubic foot, acre, lot,

dwelling unit, room, bed, seat or floor-area ratio.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1176  “Vacant land” defined. (NRS 360.090, 360.250)  “Vacant land” means any

land other than improved land, including, without limitation:

     1.  Raw land; and

     2.  Land that has been prepared or developed

for use, but on which there are not yet any improvements sufficient to allow

the identification of or establish the current actual use.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1177  Adoption by reference and availability of certain publications;

revision of publications after adoption. (NRS 360.090, 360.250, 361.227)

     1.  The Commission hereby adopts by

reference:

     (a) The Standard on Mass Appraisal of Real

Property, January 2008 edition, as published by the International

Association of Assessing Officers. A copy of that publication may be obtained

from the International Association of Assessing Officers, 314 West Tenth

Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store,

for the price of $10. A free copy of that publication may be obtained at the

Internet address http://www.iaao.org/uploads/StandardOnMassAppraisal.pdf.

     (b) The Standard on Automated Valuation Models

(AVMs), September 2003 edition, as published by the International

Association of Assessing Officers. A copy of that publication may be obtained

from the International Association of Assessing Officers, 314 West Tenth

Street, Kansas City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store,

for the price of $8. A free copy of that publication may be obtained at the

Internet address http://www.iaao.org/uploads/AVM_STANDARD.pdf.

     (c) Property Appraisal and Assessment

Administration, 1990 edition, as published by the International Association

of Assessing Officers. A copy of that publication may be obtained from the

International Association of Assessing Officers, 314 West Tenth Street, Kansas

City, Missouri 64105-1616, or at the Internet address http://www.iaao.org/store,

for the price of $75.

     (d) The Residential Cost Handbook, as

published by Marshall & Swift on August 13, 2010. A copy of that

publication may be obtained from Marshall & Swift, 911 Wilshire Boulevard,

16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,

for the price of $308.95.

     (e) The Marshall Valuation Service, as

published by Marshall & Swift on August 13, 2010. A copy of that

publication may be obtained from Marshall & Swift, 911 Wilshire Boulevard,

16th Floor, Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,

for the price of $562.95.

     (f) The Residential Estimator software, as

published by Marshall & Swift on August 13, 2010. A copy of that software

may be obtained from Marshall & Swift, 911 Wilshire Boulevard, 16th Floor,

Los Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,

for the price of $980.95.

     (g) The Commercial Estimator software, as

published by Marshall & Swift on August 13, 2010. A copy of that software

may be obtained from Marshall & Swift, 911 Wilshire Blvd., 16th Floor, Los

Angeles, California 90017-3409, or at the Internet address http://www.marshallswift.com/eCatalog.aspx,

for the price of $1,146.95.

     2.  If any of the publications adopted by

reference pursuant to:

     (a) Paragraph (a), (b) or (c) of subsection 1 is

revised, the Commission will review the revision to determine its suitability

for this State. If the Commission determines that the revision is not suitable

for this State, the Commission will hold a public hearing to review its

determination and give notice of that hearing within 30 days after the date of

the publication of the revision. If, after the hearing, the Commission does not

revise its determination, the Commission will give notice that the revision is

not suitable for this State within 30 days after the hearing. If the Commission

does not give such notice, the revision becomes part of the pertinent

publication adopted by reference pursuant to subsection 1.

     (b) Paragraph (d), (e), (f) or (g) of subsection 1

is revised, the Executive Director shall review the revision to determine its

suitability for this State. If the Executive Director determines that the

revision is suitable for this State, the Executive Director shall notify each

county assessor in this State of that determination and the revision becomes

part of the pertinent publication adopted by reference pursuant to subsection

1.

     3.  Each county assessor shall maintain for

public review a copy of each publication adopted by reference pursuant to

paragraphs (a) to (e), inclusive, of subsection 1.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 361.1178  Code of categories of land use. (NRS 360.090, 360.250, 361.227)

     1.  The Department shall prescribe and

annually publish a code of categories of land use, which:

     (a) Must include and define at least the following

primary categories:

          (1) Vacant land.

          (2) Single-family residential land.

          (3) Multi-residential land.

          (4) Commercial land.

          (5) Industrial land.

          (6) Rural land.

          (7) Utilities.

     (b) May include and define any secondary categories

that the Department deems to be appropriate for each primary category.

     2.  The Department shall:

     (a) Consider any recommendations submitted by any

county assessor in this State regarding the amendment of the code prescribed

pursuant to subsection 1; and

     (b) If the Department disapproves of any such

recommendation, notify each county assessor in this State of the reasons for

that disapproval.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1179  Land: Methods for determining full cash value. (NRS 360.090,

360.250, 361.227)

     1.  If sufficient sales of comparable

properties which were vacant at the time of sale are available, a county

assessor shall determine the full cash value of land by applying the sales comparison

approach using:

     (a) A mass appraisal technique in accordance with

the provisions of NAC 361.11795 to 361.1188, inclusive; or

     (b) A single property technique in accordance with

the provisions of NAC 361.118 to 361.1188, inclusive.

     2.  If insufficient sales of comparable

properties which were vacant at the time of sale are available to carry out

subsection 1, a county assessor shall determine the full cash value of land as

provided in NAC 361.119.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;

A by R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.11795  Land: Sales comparison approach using mass appraisal technique. (NRS 360.090,

360.250, 361.227)  A county assessor shall

apply the sales comparison approach using a mass appraisal technique as

follows:

     1.  The county assessor shall stratify the

properties being appraised into groups based upon location, zoning, use or

other relevant characteristics. Sufficient strata must be established to ensure

that all types of property subject to appraisal are appropriately represented.

     2.  After stratification pursuant to

subsection 1, the county assessor shall:

     (a) For each stratum:

          (1) Analyze sales of comparable land; and

          (2) Make adjustments to the sales prices as

necessary to eliminate any nonrealty components of value and any differences

resulting from the real property rights conveyed, financing terms, conditions

of sale, market conditions, location, physical characteristics, size, zoning,

use, governmental restrictions, sales concessions and expenditures made after

sales that influence sales prices; and

     (b) Determine an appropriate base lot or comparative

unit value to be used as a benchmark for valuing the properties in each stratum

and, if appropriate, market adjustments to the base lot or comparative unit

value for differences in physical characteristics, size, zoning, use, view,

governmental restrictions and other attributes that affect value. The

adjustments:

          (1) Must be mathematical changes made to the

base lot or comparative unit values to account for differences in the elements

of comparison between the base lot or comparative unit and the subject

property;

          (2) May be made only to the base lot or

comparative unit value in order to reflect the value of the subject property;

and

          (3) May be made by adding or subtracting

lump-sum dollar values, or by applying positive or negative percentage

differentials, to the base lot or comparative unit values.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008;

A by R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.118  Land: Sales comparison approach using single property technique. (NRS 360.090,

360.250, 361.227)  A county assessor shall

apply the sales comparison approach using a single property technique as

follows:

     1.  The county assessor shall adjust the

sales prices or unit values of comparable properties as necessary to eliminate

differences between the comparable properties and the subject property that

affect value. The adjustments:

     (a) Must be mathematical changes made to the sales

prices or unit values of the comparable properties to account for differences

in elements of comparison between the comparable properties and the subject

property;

     (b) May be made only to the comparable properties,

and not to the subject property; and

     (c) May be made by adding or subtracting lump-sum

dollar values, or by applying positive or negative percentage differentials, to

the sales prices or unit values of the comparable properties.

     2.  The elements of comparison between the

comparable properties and the subject property that may be used by the county

assessor include, without limitation, the real property rights conveyed,

financing terms, conditions of sale, market conditions, location, physical

characteristics, size, zoning or use, governmental restrictions and nonrealty

components of value.

     3.  After adjusting the comparable properties

for differences that affect value, the county assessor shall analyze the range

of adjusted sales prices of the comparable properties to arrive at an estimate

of value for the subject property.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC

A by R031-03, 8-4-2004; R166-07, 6-17-2008)

      NAC 361.1182  Land: General requirements for sales comparison approach. (NRS 360.090,

360.250, 361.227)  For the purposes of

carrying out the provisions of NAC 361.11795 or 361.118:

     1.  If the subject property is improved land,

the comparable properties must have a use that is consistent with that of the

improved land.

     2.  The elements of comparison used and

adjustments made by the county assessor must be identifiable and supported by

verifiable market data.

     3.  If it is necessary to make an adjustment

to recognize the view influence or any other property attribute associated with

the subject property, the county assessor shall:

     (a) Make a physical determination of the view

influence from the land of each respective view parcel. The county assessor

shall make the view influence determination from any area on the parcel that is

capable of development. This would exclude legally required setbacks or

portions of the parcel subject to applicable land use restrictions or

applicable deed restrictions that prohibit development.

     (b) Upon the written request of the owner, provide

to the owner as soon as practicable, but not later than 15 days after receiving

the request, current market evidence for each adjustment for the view influence

or other property attribute. In a county whose population is 40,000 or more,

“current market evidence” as used in this paragraph means sales data concerning

sales of improved or unimproved parcels that occurred during the 36-month

period immediately preceding July 1 of the year before the lien date, unless

the Commission has approved the petition of the county assessor to consider

sales that occurred before that 36-month period.

     (c) Upon the written request of the owner, provide

to the owner as soon as practicable, but not later than 15 days after receiving

the request, a comprehensive written analysis describing any mass appraisal or

single property technique used, written in such a manner that the taxpayer can

determine whether the value of the parcel has been appropriately adjusted by

the county assessor. For an appraisal made using a:

          (1) Single property technique, the written

analysis must describe each adjustment, whether attributable to view influence

or another property attribute, and how each adjustment was made.

          (2) Mass appraisal technique, the written

analysis must describe the stratum in which the parcel was included, the

comparable sales and any adjustments thereto used to develop a base lot or

comparative unit value for the stratum, and any adjustments made to the base

lot or comparative unit value to determine the value of the property.

     (d) Consider whether an adjustment is necessary

because of impairments caused by obstructions or aesthetic criteria, including,

without limitation, tree growth, utility lines, water tanks or the presence of

other improvements.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

      NAC 361.1184  Land: Stratification for purposes of sales comparison approach. (NRS 360.090,

360.250, 361.227)

     1.  For the purposes of carrying out the

provisions of NAC 361.11795 or 361.118, a county assessor:

     (a) Must stratify comparable properties into the

primary categories of land use prescribed by the Department pursuant to NAC 361.1178; and

     (b) May also stratify those properties:

          (1) Into any secondary categories of land use

prescribed by the Department pursuant to NAC 361.1178;

and

          (2) If those properties are used in a similar

or competitive manner, into geographic market areas. Geographic market areas

must be initially defined by major natural, political or human-constructed

boundaries and then further defined by areas of complementary land uses or

neighborhoods, in which all the properties are similarly influenced by

environmental, governmental, social and economic forces. Additional criteria

may be considered for defining a geographic market area, including, without

limitation, the size of the parcels or subdivisions of land.

     2.  For the purposes of carrying out this

section, a county assessor:

     (a) Must determine the number of land use

categories and geographic market areas to use in the stratification of

comparable properties based upon on the size and diversity of the geographic

area being analyzed and the number of sales available within each proposed

stratum; and

     (b) May, if a geographic market area crosses county

boundaries, cooperate with other county assessors in the exchange of

information.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1186  Land: Sales data for purposes of sales comparison approach. (NRS 360.090,

360.250, 361.227)  For the purposes of

carrying out the provisions of NAC 361.11795 or 361.118:

     1.  In determining whether the sales price of

each comparable property is representative of the full cash value of the

subject property, the county assessor must acquire sufficient sales data

concerning the comparable property. The sales data may include, without

limitation:

     (a) The total amount paid for the property and the

terms of sale;

     (b) The names and contact information of the buyer

and seller;

     (c) The relationship of the buyer and seller;

     (d) The legal description, address and parcel

identifier of the property;

     (e) Information concerning the type of transfer

that is sufficient to enable the county assessor to determine whether the

transfer was at arm’s length;

     (f) The length of time the property was on the

market;

     (g) The extent of the interest transferred to the

buyer;

     (h) The nature of nonrealty items; and

     (i) The date of the transfer.

     2.  The county assessor may determine the

accuracy of the sales data acquired pursuant to subsection 1 by:

     (a) Contacting the buyer, seller, title company or

any other knowledgeable participant in the transaction;

     (b) Using sales questionnaires;

     (c) Conducting personal interviews; or

     (d) Reviewing declarations of value.

Ê The county

assessor shall disclose to each person he or she contacts for information

pursuant to this subsection that the information provided by the person will

only be used to establish value for the purposes of property taxation.

     3.  The following types of sales may provide

unreliable information regarding full cash value and require additional

verification to determine whether the sale represents full cash value:

     (a) Sales involving governmental agencies and

public utilities;

     (b) Sales involving charitable, religious or

educational institutions;

     (c) Sales involving financial institutions;

     (d) Sales between relatives or corporate

affiliates;

     (e) Sales of convenience, including, without

limitation, a sale intended to correct a flaw in title;

     (f) Sales settling an estate;

     (g) Forced sales, including, without limitation, a

sale resulting from a judicial order; and

     (h) Sales involving doubtful title.

     4.  The county assessor may sort sales and

other market data into homogeneous groups to reflect different market

influences and variations in zoning, other land-use controls and probable use,

and to ensure that land values will reflect market data for parcels with

similar or competitive uses in the same area.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008)

      NAC 361.1188  Land: Adjustments for purposes of sales comparison approach. (NRS 360.090,

360.250, 361.227)

     1.  For the purposes of carrying out the

provisions of NAC 361.11795 or 361.118:

     (a) The amount of the adjustments to comparable

sales or to the base lot or comparative unit value must be determined using

paired sales analysis, sales-resales analysis, regression analysis or another

model calibration technique in accordance with the provisions of chapters 6 and

15 of Property Appraisal and Assessment Administration, as adopted by

reference in NAC 361.1177.

     (b) If multiple types of adjustments to comparable

sales or to the base lot or comparative unit value are necessary, those

adjustments must be made as follows:

          (1) Any transactional adjustments must be made

to the total sale price in the following sequential order:

               (I) Adjustments for the real property

rights conveyed.

               (II) Adjustments for the financing terms.

               (III) Adjustments for the conditions of

sale, including any sales concessions.

               (IV) Adjustments for expenditures made

immediately after the purchase.

               (V) Adjustments for market conditions.

          (2) After making all the applicable

transactional adjustments described in subparagraph (1), units of comparison

must be calculated based upon the adjusted sale price, and then adjusted for

differences in location and any physical, economic and other characteristics

which affect value.

     2.  For the purposes of this section:

     (a) “Adjustments for market conditions” means

adjustments to reflect increases or decreases in property values in the market

for property over time.

     (b) Adjustments for market conditions must not be

made unless property values for the same general area and classification of

property have increased or decreased since the transaction dates. To make such

an adjustment, the difference in sales prices of the same or similar properties

over time must be measured to extract a rate of adjustment to apply to

comparable sales to improve comparability.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.119  Land: Alternate methods to sales comparison approach. (NRS 360.090,

360.250, 361.227)

     1.  If a county assessor is not able to use

the sales comparison approach for land pursuant to NAC

361.11795 or 361.118 because sufficient sales

of comparable properties which were vacant at the time of sale are not

available, the county assessor shall determine the full cash value of land

through any of the following methods, either in combination with available land

sales or as the sole method of valuation:

     (a) Abstraction method;

     (b) Land residual technique;

     (c) Capitalization of ground rents;

     (d) Cost of development method;

     (e) Allocation method, if the properties are

substantially similar; and

     (f) Regression analysis.

     2.  The use of sales of comparable improved

properties pursuant to subsection 1 is subject to the provisions of NAC 361.11795 or 361.118,

as applicable, NAC 361.1182 to 361.1188, inclusive, and the following:

     (a) Sales of comparable improved properties must be

adjusted to remove the full contributory value of all items attributable to the

improvements, including, without limitation, direct and indirect costs, soft

costs, entrepreneurial profit, and personal property and other nonrealty

components of value. The costs may be reported in a lump-sum basis per unit.

     (b) The complete obsolescence of an improvement for

purposes of analyzing the sales price of a comparable improved property is best

determined when the improvement is demolished or removed, but may be considered

when:

          (1) Sufficient evidence demonstrates an

intention to demolish or remove the improvement, which evidence may include,

without limitation, evidence that:

               (I) A permit has been issued for the

demolition of the improvement;

               (II) A disclosure concerning the

demolition or removal of the improvement has been filed with the Securities and

Exchange Commission;

               (III) An order has been issued for the

condemnation of the improvement; or

               (IV) Construction and development

financing has been obtained with respect to the comparable property which

establishes that the demolition or removal of the improvement is intended; and

          (2) No occupancy or no use is established

before the completion of the demolition or removal of the improvement.

     (c) Sales of comparable improved properties may be

used in determining valuation regardless of whether the complete obsolescence

of an improvement may be determined or considered pursuant to paragraph (b).

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004;

A by R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.1192  Land: General requirements for use of alternative methods. (NRS 360.090,

360.250, 361.227)  If a county assessor uses

any of the methods described in subsection 1 of NAC

361.119 to derive the value of land, the county assessor must:

     1.  Examine and evaluate:

     (a) The reliability and accuracy of the method

used;

     (b) The characteristics of the subject property;

     (c) The sufficiency and quantity of the data used

to derive the value;

     (d) The reliability and accuracy of the data used

and any pertinent adjustments made to comparable property;

     (e) The relative validity of each comparable sale

used;

     (f) The number and magnitude of any adjustments

made to comparable property or the reasons why no adjustments were made; and

     (g) The relative importance of individual elements

of comparison; and

     2.  Determine whether:

     (a) The derived value is accurate for the type of

property being valued; or

     (b) Another method must be used or additional data

must be obtained to derive the value accurately.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1194  Land: Abstraction method. (NRS 360.090, 360.250, 361.227)  When using the abstraction

method, a county assessor must:

     1.  Perform that method in accordance with

the provisions of chapter 7 of Property Appraisal and Assessment

Administration, as adopted by reference in NAC

361.1177.

     2.  Apply accrued depreciation, in accordance

with the provisions of NAC 361.1225, when

calculating the full contributory value of the improvements to be subtracted

from the sale price of the improved parcel to derive the residual land value.

     3.  Analyze the residual land values obtained

in the same manner as sales of vacant land to establish comparative unit or

base lot values.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1196  Land: Land residual technique. (NRS 360.090, 360.250, 361.227)  When using the land

residual technique, a county assessor must perform that technique in accordance

with the provisions of chapter 12 of Property Appraisal and Assessment

Administration, as adopted by reference in NAC 361.1177.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1198  Land: Capitalization of ground rents. (NRS 360.090,

360.250, 361.227)

     1.  A county assessor may use the

capitalization of ground rents to derive the value of land only when there is

sufficient information regarding land rentals or leases which are independent

of improvements, such as, without limitation, a rental of farmland or

commercial land which is leased on a net basis where the lessee is responsible

for property taxes and all other expenses.

     2.  When using the capitalization of ground

rents to derive the value of land:

     (a) A county assessor must perform that method in

accordance with the provisions of chapter 7 of Property Appraisal and

Assessment Administration, as adopted by reference in NAC 361.1177.

     (b) If a lease:

          (1) Has been recently negotiated or is still

representative of current market rents, a county assessor may directly

capitalize the net rent into an indicated land value; or

          (2) Is outdated or no longer representative of

current market rents, a county assessor must reject the lease or adjust the

lease to current market conditions using verifiable market data.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1202  Land: Cost of development method. (NRS 360.090,

360.250, 361.227)  When using the cost of

development method, a county assessor must:

     1.  Perform that method in accordance with

the provisions of chapter 7 of Property Appraisal and Assessment

Administration, as adopted by reference in NAC

361.1177.

     2.  Deduct the following costs from an

estimate of the probable proceeds to be obtained from selling the land as

developed parcels:

     (a) The direct costs of site preparation;

     (b) The costs for utility hookups;

     (c) Any other direct and indirect costs of

development; and

     (d) A reasonable allowance for entrepreneurial

profit.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1204  Land: Allocation method. (NRS 360.090, 360.250, 361.227)  When using the allocation

method, a county assessor must:

     1.  Estimate the logical and proportionate

relationship of the value of land to the total value of real property by

analyzing:

     (a) Historical sales of vacant land and improved

land in the same geographic market area as the subject property, without

limitation as to the dates of those sales;

     (b) Sales of vacant land and improved land in

similar or competitive geographic market areas;

     (c) Sales of vacant land compared to subsequent

sales of the same or substantially similar parcels after improvements have been

built; or

     (d) Residual land values obtained using the abstraction

method;

     2.  Apply the resulting ratio of land to

total value to sales of comparable improved land to determine the portion of

the sales prices attributable to land; and

     3.  Analyze the land values obtained in the

same manner as sales of vacant land to establish comparative unit or base lot

values.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1206  Land: Regression analysis. (NRS 360.090, 360.250, 361.227)  When using regression

analysis to derive the value of land, a county assessor must:

     1.  Base that analysis on the principle of

contribution to value, pursuant to which the major characteristics of a site

and any improvements must be analyzed to determine how much each component

characteristic contributes to value.

     2.  Apply that analysis in accordance with

the requirements of NAC 361.1216.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.121  Obtaining and maintaining sufficient data regarding

characteristics of property. (NRS 360.090, 360.250)  A county assessor shall:

     1.  Obtain, in accordance with the provisions

of section 3 of the Standard on Mass Appraisal of Real Property, as

adopted by reference in NAC 361.1177, a sufficient

amount of data regarding the characteristics of property to determine the

appropriate classification and valuation of property in the county.

     2.  Maintain the data obtained pursuant to

subsection 1 on electronic media.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1212  Use of appropriate units of comparison. (NRS 360.090,

360.250, 361.227)  When comparing sales of

properties for the purpose of property valuation, a county assessor must use

units of comparison which conform to the basis upon which those properties are

analyzed and sold in the market.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1214  Consideration of influence of on-site and off-site enhancements. (NRS 360.090,

360.250, 361.227)  Since on-site enhancements

and off-site enhancements may affect the uses to which a parcel of land is

being or may lawfully be put, a county assessor shall consider the influence of

on-site enhancements and off-site enhancements when determining the value of the

land.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1216  Development of mass appraisal model to explain or predict market

value from real estate data. (NRS 360.090, 360.250, 361.227)  When developing a mass

appraisal model to explain or predict the market value of properties from real

estate data, a county assessor must build and calibrate the model in accordance

with the provisions of chapters 14 and 15 of Property Appraisal and

Assessment Administration and the provisions of the Standard on

Automated Valuation Models (AVMs), as adopted by reference in NAC 361.1177.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.1218  Determination of whether sufficient sales of comparable

properties are available. (NRS 360.090, 360.250, 361.227)  For the purposes of

carrying out the provisions of NAC 361.106 to 361.1315, inclusive, a county assessor must determine

whether sufficient sales of comparable properties are available based upon:

     1.  The nature and complexity of the subject

property to which the sales are being compared;

     2.  The degree of homogeneity of elements of

comparison between the subject property and the comparable properties;

     3.  Market conditions; and

     4.  The reliability of the information

regarding each sale from which a credible conclusion may be obtained.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.122  Valuation of improved land. (NRS 360.090, 360.250, 361.227)

     1.  If improved land is being put to a use

that is:

     (a) Consistent with the zoning of the land or with

the general use of land in the surrounding area, the value of the improved land

must be established by using comparable sales from a stratum with similar

zoning and location in accordance with NAC 361.11795

or 361.118 or, if appropriate, NAC 361.119; or

     (b) Not consistent with the zoning of the land or

with the general use of land in the surrounding area, the value of the improved

land must be established, in accordance with NAC

361.11795 or 361.118 or, if appropriate, NAC 361.119, by using comparable sales from a stratum

that:

          (1) Is most comparable to the improved land;

          (2) Has the same or a similar use; and

          (3) Is affected by the same or similar

restrictions.

     2.  The area of land to be valued according

to the use of the improvements is the area actually covered by each

improvement, plus the surrounding area necessary to support the use of the

improvement, as determined in accordance with any zoning restrictions and other

legally enforceable restrictions on the current use of the land. Any excess or

surplus land must be valued as if vacant in accordance with NAC 361.11795 or 361.118

or, if appropriate, NAC 361.119.

     3.  As used in this section:

     (a) “Excess land” means land that is not currently

needed to serve or support an existing improvement, and which has the potential

to be sold separately from any land that is needed to serve or support an

existing improvement.

     (b) “Surplus land” means land that is not currently

needed to serve or support an existing improvement, but which does not have an

independent use separate from an existing improvement and does not have the

potential to be sold separately from any land that is needed to serve or

support an existing improvement.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 5-27-82]—(NAC

A by R031-03, 8-4-2004; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.1225  Accrued depreciation: Application; calculation. (NRS 360.090,

360.250, 361.227)  A county assessor:

     1.  Shall apply accrued depreciation when

determining:

     (a) The value of improvements using the abstraction

method pursuant to NAC 361.1194 or paragraph (d)

of subsection 1 of NAC 361.1204; and

     (b) The contributory value of improvements pursuant

to paragraph (b) of subsection 5 of NRS

361.227.

     2.  Shall calculate accrued depreciation by:

     (a) The market extraction method;

     (b) The economic age-life method; or

     (c) The observed condition breakdown method,

Ê in accordance

with the provisions of chapter 8 of Property Appraisal and Assessment

Administration, as adopted by reference in NAC

361.1177. When calculating accrued depreciation by the economic age-life

method, a county assessor may use the life-expectancy tables provided in the

most recent version of the Residential Cost Handbook, Marshall

Valuation Service, Residential Estimator software or Commercial

Estimator software, as appropriate, adopted by reference in NAC 361.1177.

     3.  Shall not apply accrued depreciation when

determining the taxable value of any improvements pursuant to subsection 1 of NRS 361.227.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.123  Contaminated property: Definitions. (NRS 360.090,

360.250, 361.227)  As used in NAC 361.123 to 361.1236,

inclusive, unless the context otherwise requires:

     1.  “Contaminated site” means:

     (a) Land on which the release of a hazardous

substance has been verified pursuant to NAC 361.1232;

or

     (b) An improvement for which permeation or

incorporation into construction by a hazardous substance has been verified

pursuant to NAC 361.1232,

Ê on or before

the assessment date of the property.

     2.  “Cost-to-cure” means the present value of

the remedial work to be performed to remove, contain or treat a hazardous

substance on the property being valued. The term includes the cost of continued

monitoring of the site after the remedial work has been completed if such

monitoring is required.

     3.  “Hazardous substance” means a hazardous

material or hazardous waste as those terms are defined in NRS 459.428 and 459.430, respectively.

     (Added to NAC by Tax Comm’n, eff. 7-16-92; A by R031-03,

8-4-2004)

      NAC 361.1232  Contaminated property: Burden of proof; documentation required. (NRS 360.090,

360.250, 361.227)

     1.  The burden of proving that property has

been contaminated and documenting the proof of contamination to support a possible

reduction of the assessed value of the property lies with the owner of the

property.

     2.  To verify the release of a hazardous

substance on land or the permeation or incorporation into the construction of

an improvement by a hazardous substance, the owner of the property must:

     (a) Submit reliable, objective information, such as

an engineering study, environmental audit, laboratory report or historical

record, which proves to the satisfaction of the assessor that a hazardous

substance has been released on the land or has permeated or been incorporated

into the construction of an improvement;

     (b) Show that the release, permeation or

incorporation was reported to an appropriate governmental agency such as the

National Response Center or the State Department of Conservation and Natural

Resources; and

     (c) Provide sufficient data to the assessor to

indicate the status of a proposed or ongoing cleanup plan.

     3.  To document the proof of contamination to

support a possible reduction of the assessed value of the property, the owner

of the property must submit to the assessor:

     (a) A list of available comparable sales of

similarly contaminated property, if any;

     (b) Any pertinent information concerning the

cleanup of the hazardous substance; and

     (c) Where there is an existing business operating

on the contaminated site, records of income and expense necessary to allow the

assessor to estimate the value of the real property, as if uncontaminated, by

the income approach.

     (Added to NAC by Tax Comm’n, eff. 7-16-92)

      NAC 361.1234  Contaminated property: Determination of full cash value. (NRS 360.090,

360.250, 361.227)  In determining, pursuant

to NRS 361.227, the full cash

value of property that has been determined by the assessor to be a contaminated

site:

     1.  The sales comparison approach may be used

by comparing verified sales of similarly contaminated sites;

     2.  Where applicable, the income approach may

be used by utilizing rent, vacancy and expense data derived from a survey of

similarly contaminated sites with similarly used improvements; or

     3.  Where no sales or rental market exists

for similarly contaminated properties:

     (a) The value of the property for a specific use,

or a specific user, reflecting the extent to which the property contributes to

the utility or profitability of the enterprise of which it is a part may be

determined by using the income approach, except that the value so determined

must not exceed the full cash value of the property; or

     (b) The present worth of the contaminated site may

be determined by:

          (1) Discounting the present worth of the

property if it was contaminated by an off-site source or the cost-to-cure is

not being borne by the current owner, or both, on the basis of the length of

the delay caused by the contamination until the property can be developed to

its highest and best use, readily sold or financed on the open market; or

          (2) Using the present cash equivalency which

represents the future reversionary value of the contaminated site after it is

cleaned up to an extent that it is usable or developable to its highest and

best use less the present worth of the yearly costs-to-cure if the current

owner is incurring the remedial costs and an accurate forecast of the

year-to-year costs to be incurred and the estimated date of the completion of

the cleanup are available.

     (Added to NAC by Tax Comm’n, eff. 7-16-92; A by R031-03,

8-4-2004)

      NAC 361.1236  Contaminated property: Annual review. (NRS 360.090,

360.250, 361.227)  The assessor shall review

annually the assessment of any property which has been valued as a contaminated

site pursuant to NAC 361.123, 361.1232 and 361.1234 to

ensure that the remedial work, if any, is being performed as scheduled and to

verify the actual yearly cost-to-cure.

     (Added to NAC by Tax Comm’n, eff. 7-16-92)

      NAC 361.124  Determination of actual age of improvement or newly constructed

addition to improvement. (NRS 360.090, 360.250, 361.227, 361.229)  In determining the actual

age of:

     1.  An improvement or newly constructed

addition to an existing improvement, the county assessor shall use the actual

year of construction, if it is available, or else an estimated year of

construction.

     2.  An improvement that has been constructed

over a period of years, the county assessor shall use the weighted average age of

the improvement.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC

A 10-10-83; R031-03, 8-4-2004)

      NAC 361.125  Improvement: Initial taxable value. (NRS 360.090,

360.250, 361.227)

     1.  In determining the initial taxable value

of an improvement, the rate of depreciation is set forth in NRS 361.227.

     2.  If obsolescence, deterioration or wear

and tear causes the taxable value calculated pursuant to subsection 1 to exceed

the full cash value of the improvements, the additional depreciation and

obsolescence may be calculated separately.

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004)

      NAC 361.127  Improvement: Replacement. (NRS 360.090, 360.250, 361.227, 361.229)

     1.  If the use or quality of an existing

improvement is changed by a replacement, the county assessor shall revalue the

improvement according to the new use or quality as of the time the replacement

occurs.

     2.  Each county assessor who determines the

percentage of the replacement made to an improvement:

     (a) May use the “Percentage Breakdown of Base Cost”

published in the version of the Marshall Valuation Service adopted by

reference pursuant to NAC 361.1177 as of January 1

of the year immediately preceding the lien date for the current year.

     (b) Must consider the total replacements made to an

improvement which have been accumulated since its construction or the last

computation of replacement if one has been made.

     3.  As used in this section, the term

“replacement” includes items of remodeling or renovation which extend the

useful life of an improvement, other than those items excluded by the

provisions of NRS 361.229.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A 1-18-85;

5-16-86; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.128  Improvement: Calculation of cost of replacement. (NRS 360.090,

360.250, 361.227, 361.229)

     1.  The cost of replacement of an improvement

must be calculated:

     (a) Without including any costs attributable to

land enhancements; and

     (b) Except as otherwise provided in subsections 2,

3 and 4, using:

          (1) The standards and modifiers of local costs

published in the version of the Residential Cost Handbook, Marshall

Valuation Service, Residential Estimator software or Commercial

Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately

preceding the lien date for the current year; or

          (2) With the prior approval of the Executive

Director, other computer programs for determining cost which are based on costs

published by Marshall & Swift.

     2.  Except as otherwise provided in

subsections 3 and 4, the cost of replacement of a farm building, a shed or

another rustic structure must be calculated using the manual of rural building

costs adopted by the Commission if the farm building, shed or other rustic

structure:

     (a) Does not conform to any applicable building

code adopted by a local governmental entity; or

     (b) Is constructed by a person who does not

regularly perform construction work and does not earn a substantial portion of

his or her income as a licensed contractor, unless the person acts only as a

general contractor and the actual work is performed by a person who regularly

performs construction work and earns a substantial portion of his or her income

as a licensed contractor.

     3.  Except as otherwise provided in

subsection 4, the cost of replacement of a farm building, a shed or another

rustic structure constructed by a person who regularly performs construction

work and earns a substantial portion of his or her income as a licensed

contractor must be calculated using:

     (a) The standards and modifiers of local costs

published in the version of the Residential Cost Handbook, Marshall

Valuation Service, Residential Estimator software or Commercial

Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately

preceding the lien date for the current year; or

     (b) The manual of rural building costs adopted by

the Commission, except that the costs therein must be adjusted upward by 33

percent.

     4.  If no publication or manual required to

be used pursuant to the provisions of this section applies to improvements of a

particular occupancy or construction type, the county assessor may apply to the

Executive Director for permission to use alternative recognized cost manuals,

cost determinations or subscription services. If the Executive Director finds

that no publication or manual required to be used pursuant to the provisions of

this section applies to such improvements and that the alternative recognized

cost manuals, cost determinations or subscription services are suitable, the

Executive Director shall, within 30 days after receiving an application

pursuant to this subsection, approve the use of the alternative recognized cost

manuals, cost determinations or subscription services and notify each county

assessor of that approval. The Executive Director shall submit to the

Commission annually a list of the alternative recognized cost manuals, cost

determinations and subscription services that the Executive Director has

approved for use.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC

A 10-10-83; 7-23-84; 1-18-85; 5-16-86; R031-03, 8-4-2004; R166-07, 6-17-2008;

R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.1285  Common-interest communities. (NRS 360.090, 360.250, 361.227, 361.233)

     1.  A county assessor shall determine the

taxable value of any land and improvements which comprise the community units

and common elements of a common-interest community as provided in NAC 361.106 to 361.1315,

inclusive.

     2.  When determining the taxable value of a

community unit, a county assessor must, in addition to any other adjustments,

adjust the sales prices of, or the base lot or comparative unit values derived

from, properties which are comparable to the community unit as necessary, based

upon verifiable market data, to reflect the unique physical characteristics of

the common-interest community and the characteristics of ownership of the

community unit, including, without limitation:

     (a) The relative location of the community unit

within the common-interest community, including, without limitation, the floor

level;

     (b) The phase of development of the common-interest

community within which the community unit is located; and

     (c) The nature of and access to the common elements

of the common-interest community, including, without limitation, any parking

facilities and open-space areas.

     3.  As used in this section, the words and

terms defined in NRS 361.233

have the meanings ascribed to them in that section.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.

7-1-2012)

      NAC 361.129  Appraisal of parcel as part of qualified subdivision. (NRS 360.090,

360.250, 361.227)

     1.  A parcel must be appraised as provided by

paragraph (b) of subsection 2 of NRS

361.227 and NAC 361.1295 if:

     (a) It is one of a group of 10 or more contiguous

parcels held under common ownership;

     (b) A final map, a series of final maps or one or

more subdivision maps covering the area containing the parcel has been

presented to the county recorder for filing in the manner provided by NRS 278.360 to 278.460, inclusive, or the parcel

is assessable property in an improvement district created pursuant to chapter 271 of NRS;

     (c) The owner of the parcel provides the county

assessor with whatever information the assessor deems necessary to determine

the taxable value of the parcel; and

     (d) The county assessor determines that the group

of parcels affected has an expected absorption period of more than 1 year.

     2.  For the purposes of this section:

     (a) The owner of a parcel is the person or entity

shown as such in the records of the county recorder.

     (b) A parcel is contiguous with other parcels held

under common ownership even if it is separated from those parcels:

          (1) By an easement, right-of-way, street,

highway or other obstruction; or

          (2) By one or more parcels held by third

persons, if the parcels so held are in the same phase or section of a

development.

     (c) A parcel is not contiguous with other parcels

held under common ownership, though they share a common boundary, if they are

in different phases or sections of a development.

     (Added to NAC by Tax Comm’n, eff. 11-14-88; A 10-27-93;

R031-03, 8-4-2004)

      NAC 361.1295  Taxable value of land within qualified subdivision. (NRS 360.090,

360.250, 361.227)

     1.  In determining the taxable value of land

within a qualified subdivision, the county assessor shall use, as he or she

deems appropriate based upon the available information concerning the

subdivision:

     (a) The full cash value of the subdivision as

vacant land, plus all actual costs of site preparation, including on-site

enhancements and off-site enhancements;

     (b) The selling price of any comparable subdivision

or group of parcels, adjusting that price as appropriate to reflect differences

between the land sold and the land being appraised; or

     (c) The estimated retail selling price of all

parcels in the subdivision which are not sold, rented or occupied, reduced by

the percentage specified for the expected absorption period of the parcels:

 



Expected

Absorption Period





Percentage

of Reduction







(Years)





 







 





 







                               1

- 3.........................................





                                            20







                               4

- 6.........................................





                                            30







                               7

- 9.........................................





                                            40







                               10

or more...............................





                                            50





 

     2.  The taxable value determined as provided

in subsection 1 must be allocated to each parcel in the subdivision which is

not sold, rented or occupied according to the size and other characteristics of

that parcel.

     3.  The taxable value of any improvements

made within a qualified subdivision must be determined as provided by NRS 361.227.

     (Added to NAC by Tax Comm’n, eff. 11-14-88; A by R039-10,

8-13-2010, eff. 7-1-2012)

      NAC 361.130  Mobile or manufactured home. (NRS 360.090, 360.250, 361.227, 361.2445, 361.325)

     1.  The taxable value of a mobile home or

manufactured home which constitutes real property is the cost of replacement of

the mobile home or manufactured home less depreciation and obsolescence.

     2.  In determining the taxable value of a

mobile home or manufactured home which constitutes personal property, each

county assessor shall, if the mobile home or manufactured home was sold as new:

     (a) Before July 1, 1982, value it at its retail

selling price when sold to the original owner less depreciation at 5 percent

per year, to a maximum depreciated value of 20 percent of its original retail

selling price.

     (b) On or after July 1, 1982, value it at

replacement cost, when new, less depreciation. Replacement cost when new is the

retail selling price to the original owner adjusted by factors reflected in the

annual Personal Property Manual.

Ê Depreciation

must be calculated pursuant to the schedule located in the annual Personal

Property Manual. Additional depreciation and obsolescence may be calculated

separately.

     3.  The retail selling price of a mobile home

or manufactured home includes all charges for transportation, installation,

accessories, profit and overhead.

     4.  If the owner of a mobile home or

manufactured home which has been converted to real property wishes to convert

the mobile home or manufactured home back to personal property, the county

assessor shall provide the owner with a form for an affidavit of conversion

which has been approved by the Commission and which must be recorded in the

county recorder’s office pursuant to NRS

361.2445 before the mobile home or manufactured home may be removed from

the tax rolls. The affidavit of conversion may include information concerning

the cost of acquisition of the mobile home or manufactured home. All signatures

required pursuant to NRS 361.2445

to effectuate the conversion must be notarized.

     5.  The county assessor shall value the

mobile home or manufactured home as personal property upon satisfaction of all

the requirements set forth in NRS

361.2445 if the mobile home or manufactured home remains within the jurisdiction

of the county assessor.

     6.  If a mobile home or manufactured home

which has been converted to real property is completely destroyed and removed

from real property, the county assessor shall remove the mobile home or

manufactured home from the tax roll.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC

A 10-10-83; 6-29-84; 5-16-86; R031-03, 8-4-2004; R166-07, 6-17-2008)

      NAC 361.1305  Billboards. (NRS 360.090, 360.250, 361.227)

     1.  The taxable value of a billboard is the

cost of replacement of the billboard less depreciation and obsolescence.

     2.  The cost of replacement of a billboard

must be computed by multiplying the cost of acquisition to the current owner by

the appropriate factor located in the annual Personal Property Manual.

The factor that corresponds to the year the billboard was acquired must be

used. Additional depreciation and obsolescence may be calculated separately.

     (Added to NAC by Tax Comm’n, eff. 8-2-90; A by R031-03,

8-4-2004)

      NAC 361.131  Taxable value exceeding full cash value. (NRS 360.090,

360.250, 361.227)  If the initially

determined taxable value for any real property is found to exceed the full cash

value of the property, the person determining taxable value shall examine the

taxable value determined for the land, and if the land is properly valued, he

or she shall appropriately reduce the taxable values determined for the

improvements and, if appropriate, the value of the land and any pertinent

personal property.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A by R031-03,

8-4-2004; R166-07, 6-17-2008)

      NAC 361.1315  Adjustment in apportionment for school district. (NRS 360.090,

360.250, 387.1243)

     1.  To determine if a school district is

eligible to receive an adjustment in apportionment pursuant to subsection 2 of NRS 387.1243, each county assessor

shall, on or before March 15 of each year, submit a report to the Department on

a form provided by the Department. The report must include the:

     (a) Value of all possessory interest of property in

the county that is subject to taxation pursuant to NRS 361.157 and 361.159;

     (b) Value of such property for the current fiscal

year;

     (c) Amount of taxes that are due on the property;

and

     (d) Amount of taxes that have been paid for the

current fiscal year.

Ê A copy of the

report must be provided to the county treasurer.

     2.  After receipt of the report required by

subsection 1, the Department will verify, in cooperation with the county

treasurer, the amount of property taxes paid and the amount of anticipated

shortfall in property taxes on any leasehold interest, possessory interest,

beneficial interest or beneficial use on property that is owned by the Federal

Government and subject to taxation pursuant to NRS 361.157 and 361.159. On or before April 15 of

the year in which the taxes are due, the Department will provide certification

of the amount of such anticipated shortfall to the Department of education.

     3.  If the delinquent taxes are paid after

the report required by subsection 1 is made, the county treasurer shall report

the date and amount of payment to the Department within 10 days after the

payment is made. The Department will report the amount of the payment to the

Department of Education to facilitate repayment by the school district in

accordance with subsection 2 of NRS

387.1243.

     (Added to NAC by Tax Comm’n by R013-98, eff. 11-20-98)

Real Property Within Common-Interest Community

      NAC 361.133  Definitions. (NRS 360.090, 360.250, 361.233)  As used in NAC 361.133 to 361.1336,

inclusive, unless the context otherwise requires, the words and terms defined

in NRS 361.233 have the meanings

ascribed to them in that section.

     (Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)

      NAC 361.1332  Applicability. (NRS 360.090, 360.250, 361.233)  The provisions of NAC 361.133 to 361.1336,

inclusive, apply to the assessment and valuation of the real property within a

common-interest community.

     (Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)

      NAC 361.1334  Valuation of and assessment of tax on community units and common

elements. (NRS 360.090, 360.250, 361.233)

     1.  A county assessor shall:

     (a) Determine the taxable value of each community

unit of a common-interest community separately and assess the tax thereon to

the current owner of the community unit; and

     (b) Determine the taxable value of the common

elements of a common-interest community separately and assess the tax thereon

to the current owners of the community units of the common-interest community

as provided in NAC 361.1336.

     2.  If a parcel includes both a community

unit and any portion of the common elements of a common-interest community, a

county assessor shall:

     (a) Determine the taxable value of any improvements

and land that comprise that community unit separately and assess the tax

thereon to the current owner of the community unit; and

     (b) Determine the taxable value of any improvements

and land that comprise that portion of the common elements of the

common-interest community and assess the tax thereon to the current owners of

the community units of the common-interest community as provided in NAC 361.1336.

     3.  For the purposes of:

     (a) Paragraph (a) of subsection 1, the taxable

value of the common elements of a common-interest community must not enhance or

be reflected in the taxable value of a community unit of that common-interest

community; and

     (b) Paragraph (a) of subsection 2, the taxable value

of any improvements and land that comprise the common elements of a

common-interest community must not enhance or be reflected in the taxable value

of any improvements and land that comprise a community unit of that

common-interest community.

     (Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)

      NAC 361.1336  Allocation of taxable value of common elements to community

units. (NRS 360.090, 360.250, 361.233)

     1.  Except as otherwise provided in

subsection 3 of NAC 361.1334, a county assessor

shall include in the valuation of each community unit of a common interest

community an amount calculated by multiplying the taxable value of all the

common elements of the common-interest community by a fraction, the numerator

of which is 1 and the denominator of which is:

     (a) Except as otherwise provided in paragraph (b),

the total number of community units in the common-interest community; or

     (b) If the common-interest community is still under

development, the total number of community units planned to be constructed in

the common-interest community,

Ê regardless of

whether each community unit has yet been identified by a separate assessor’s

parcel number.

     2.  If a county assessor is unable to

determine from public records the information necessary to carry out the

provisions of subsection 1, the county assessor shall submit to the owners of

the common elements of the common-interest community a written request for such

information as the county assessor determines to be necessary to carry out

those provisions. Such information may include, without limitation:

     (a) The total number of community units constructed

or planned to be constructed in the common-interest community;

     (b) The assessor’s parcel number or other

identifying information for each community unit in the common-interest

community; and

     (c) The assessor’s parcel number or other

identifying information for each portion of the common elements of the

common-interest community.

     3.  If the owners of the common elements of a

common-interest community fail to provide the information requested pursuant to

subsection 2 within 60 days after receiving that request, the county assessor

shall allocate the taxable value of the common elements of the common-interest

community to the community units of the common-interest community based on any

information available to the county assessor.

     4.  The Department shall provide a standard

form for requesting and providing information pursuant to this section.

     (Added to NAC by Tax Comm’n by R183-07, eff. 8-26-2008)

Determination of Taxable Value of Personal Property

      NAC 361.1345  Definitions. (NRS 360.090, 360.250, 361.227)  As used in NAC 361.1345 to 361.139,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.1351, 361.1355

and 361.1361 have the meanings ascribed to them in

those sections.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.1351  “Acquisition cost” and “original cost” defined. (NRS 360.090,

360.250, 361.227)  “Acquisition cost” or

“original cost” means the actual cost of property to its present owner,

including, without limitation, the costs of transportation and the costs of

installation.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.1355  “Costs of installation” defined. (NRS 360.090, 360.250, 361.227)  “Costs of installation”

means the costs of direct labor, direct overhead and the capitalized expense of

interest or imputed charges for interest which are necessary to make the

property operational.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.1361  “Personal Property Manual” defined. (NRS 360.090,

360.250, 361.227)  “Personal Property

Manual” means a manual for the valuation of personal property that is

published by the Department annually pursuant to NAC

361.1365.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.1365  Personal Property Manual: Publication; contents; approval;

use. (NRS

360.090, 360.250, 361.227)

     1.  The Department will annually publish a Personal

Property Manual which describes the methods and standards that must be used

for the valuation of personal property. The manual must include, without

limitation, annually updated:

     (a) Cost-index factors that must be used in the

conversion of acquisition cost into an estimate of replacement cost new;

     (b) Expected-life schedules that indicate the

category of expected life for each type of property or type of industry in

which the property is used; and

     (c) Percent-good tables which indicate the rate of

depreciation that must be applied.

     2.  The Personal Property Manual must

be approved by the Commission before publication. The Department, at least 1

month before presenting the manual to the Commission for approval, must

disclose all proposed modifications to the manual and hold a public workshop on

the modifications.

     3.  Each county assessor shall use the Personal

Property Manual in determining the taxable value of personal property.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.1371  Procedure for determination of taxable value. (NRS 360.090,

360.250, 361.227)

     1.  The taxable value of personal property

must be determined by adjusting the acquisition cost of the property by a

cost-index factor and reducing the adjusted acquisition cost by an estimate of

applicable depreciation. The taxable value so determined shall be deemed to be

the indicator of value of replacement cost new less depreciation.

     2.  In determining taxable value, a county

assessor shall use the schedules in the Personal Property Manual that

show the cost-index factors, the rates of depreciation and the percent good by

year. The assessor shall use the schedules by:

     (a) Selecting the appropriate expected useful life

of the personal property; and

     (b) Selecting the appropriate cost-index factor,

based on the year of acquisition of the property, and applying it to the

acquisition cost of the property.

Ê The result

shall be deemed to be the replacement cost new of the property.

     3.  The assessor shall select the method of

applying depreciation to the personal property by either:

     (a) Multiplying the adjusted acquisition cost of

the property by the rate of depreciation and subtracting the result from the

adjusted acquisition cost; or

     (b) Multiplying the adjusted acquisition cost of

the property by the percent-good factor.

Ê The result

from either approach shall be deemed to be the taxable value of the property.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.1375  Determination of expected life, cost-index factors and

depreciation. (NRS 360.090, 360.250, 361.227)

     1.  Personal property must be categorized by

the specific type of property that it is or by the type of industry in which it

is used. Each category must be assigned to a schedule of expected life which is

based on commonly available sources of information, including, without

limitation, the life expectancy guidelines published by the Marshall and Swift

Valuation Service and any other sources published in the Personal Property

Manual.

     2.  The cost-index factors published in the Personal

Property Manual must be determined by calculating the average change in

costs over time. The Department shall identify the sources used to calculate

the average change.

     3.  For purposes of calculating the amount of

applicable depreciation, personal property must be assigned to one of the

following expected lives:

     (a) Three-year life;

     (b) Five-year life;

     (c) Seven-year life;

     (d) Ten-year life;

     (e) Fifteen-year life;

     (f) Twenty-year life; or

     (g) Thirty-year life.

     4.  Depreciation must be calculated over the

expected life of the personal property by using the declining balance method,

except that tables which provide a method other than the declining balance

method for calculating depreciation may be used if the tables have been

approved by the Commission and included in the Personal Property Manual.

     5.  For purposes of calculating the rate of

depreciation, a residual amount of 5 percent must be used. Percent-good tables

using a residual amount other than 5 percent may be adopted by the Commission

if the Department has conducted a market study or has otherwise obtained

information which indicates that a different residual amount is appropriate for

the category in which the personal property is placed pursuant to subsection 1.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)

      NAC 361.138  Reported acquisition cost for leased equipment. (NRS 360.090,

360.250, 361.227)  For leased equipment, the

reported acquisition cost is the cost which the user of the property would

incur if the equipment were purchased, less any discount customarily allowed by

a seller.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A by R034-03,

12-4-2003)

      NAC 361.139  Personal property acquired with real property for lump sum; use

of other valuation techniques. (NRS 360.090, 360.250, 361.227)

     1.  In determining the taxable value of

personal property which was acquired with real property for a lump sum, the

assessor may refer to appropriate guides which list the cost of equipment to

determine the value of the personal property in relation to the value of the

real property. In addition, the assessor may estimate the age of the equipment

by inspecting it or discussing the approximate value of the equipment with

manufacturers, dealers or other persons in the business who have knowledge of

the value of the equipment. The serial number, if it exists, may enable a

manufacturer to determine the date of manufacture and the original cost.

     2.  If sufficient data is not otherwise

available to establish acquisition cost, or if the assessor determines that a

reported acquisition cost is not equal to the fair market value of the property

at the time of acquisition plus any costs of transportation and costs of

installation, the assessor may use any nationally recognized valuation

technique to determine the acquisition cost, including, without limitation:

     (a) Establishing the current cost of replacement of

the property with new property by reference to current manufacturing costs. If

the current cost of replacement is known, the assessor shall apply depreciation

to that cost to determine the taxable value.

     (b) Using a guide which lists the cost or a

procedure recognized by businesses which use such equipment to determine the

taxable value. Before such a guide or procedure may be used, an assessor must

receive approval from the Executive Director.

     (c) Using information based on current market data.

     3.  Upon request, the Division of Local Government

Services of the Department will provide information on various guides which may

be used to determine original cost.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A 6-29-84;

R034-03, 12-4-2003; R068-12, 9-14-2012)

Miscellaneous Requirements

      NAC 361.144  Areas of appraisal for cycle of reappraisal. (NRS 360.090,

360.250, 361.260)

     1.  Each county assessor shall:

     (a) Establish geographic boundaries for areas of

appraisal or establish areas by other classifications within which all property

must be reappraised at the same time; and

     (b) Establish not later than July 1 of the year

immediately preceding the assessment year, the standards of valuation,

including data on comparable sales, to be used throughout the year’s cycle of

reappraisal.

     2.  These areas of appraisal may be changed

to alleviate problems created by growth or other circumstances if the county

assessor shows good cause and receives the approval of the Commission.

     [Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80;

A 1-14-82]—(NAC A by R031-03, 8-4-2004)

      NAC 361.146  Records of reappraisals. (NRS 360.090, 360.250, 361.260)  Whenever property is reappraised,

the county assessor shall indicate all the data necessary to determine the

taxable value of the property, the date of the field inspection, if any, and

the identity of the appraiser. The actual age and the depreciation of the

existing improvements and any additions to those improvements must be clearly

indicated.

     [Tax Comm’n, Property Tax Reg. part No. 7, eff. 1-14-82]—(NAC

A by R031-03, 8-4-2004)

      NAC 361.150  Report of appraisals by county assessor. (NRS 360.090,

360.250, 361.260)  Each county assessor shall

file with the Department on or before April 1 of each year a report which

includes:

     1.  A statement of the appraisals

accomplished in the previous year beginning January 1 and ending December 15,

including:

     (a) The total number of parcels that were

reappraised;

     (b) The total number of parcels with newly

constructed improvements to realty, not including additions to existing

improvements and newly subdivided parcels that were appraised;

     (c) The total number of all taxable parcels in the

county; and

     (d) The areas of the county that were reappraised.

     2.  A statement of what the county assessor

proposes to appraise in the following year, including:

     (a) An estimate of the percentage of all parcels in

the county that the proposed reappraisals represent; and

     (b) The areas of the county that the county

assessor proposes to reappraise.

     3.  A list of the areas of appraisal,

encompassing all property in the county, which were used in the prior 5-year

cycle of reappraisal and a statement of the areas which were appraised in each

year of that cycle.

     [Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80;

A 1-14-82]—(NAC A 10-10-83)

      NAC 361.151  Statement of valuation of property sold. (NRS 360.090,

360.250, 361.260)  On or before April 1 of

each year, each county assessor shall furnish to the Department a statement of

the valuation of real property which was sold in his or her county in the

preceding calendar year. The statement must include:

     1.  The date of each sale;

     2.  The parcel number or a description of the

real property sold;

     3.  The sales price; and

     4.  The method used to verify the sales

price.

     (Added to NAC by Tax Comm’n, eff. 4-24-84)

      NAC 361.152  Assessment lists: Contents; distribution. (NRS 360.090,

360.250, 361.300)

     1.  The assessment list for a county must

include:

     (a) The parcel number of each property;

     (b) The name of the owner of each property;

     (c) The year of the last reappraisal of each

property at which time the taxable value of the property was determined; and

     (d) The assessed value of the land, improvements

and personal property, separately stated.

     2.  The county assessor shall submit a copy

of the assessment list to the Department immediately following publication or

delivery to taxpayers pursuant to subsection 3 of NRS 361.300.

     3.  For the purposes of paragraph (a) of

subsection 3 of NRS 361.300, the

Commission will interpret the term “each taxpayer in the county” as used in

that paragraph to mean each taxpayer who resides in the county. A county

assessor who causes a copy of the assessment list to be delivered to each

taxpayer who resides in the county shall cause a copy of the assessment list to

be delivered to any other taxpayer who owns property in the county if that

taxpayer requests a copy of the assessment list.

     [Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80;

A 1-14-82]—(NAC A by R031-03, 8-4-2004)

      NAC 361.154  Assessment roll filed with Secretary of State Board of

Equalization. (NRS 360.090, 360.250, 361.390)

     1.  The assessment roll filed with the

Secretary of the State Board of Equalization must include:

     (a) The parcel number of each property;

     (b) The name of the owner of each property;

     (c) A category of land use for each property, as

prescribed by the Department pursuant to NAC 361.1178,

designating the current actual or authorized use of the property;

     (d) The year of the last physical reappraisal of

each property at which time the taxable value of the property was determined;

and

     (e) The assessed value of the land, improvements

and personal property, separately stated.

     2.  When feasible and appropriate, the

entries on the assessment roll must be in order by parcel number, not

alphabetically by the name of the owner.

     [Tax Comm’n, Property Tax Reg. part No. 7, eff. 9-17-80;

A 1-14-82]—(NAC A 10-10-83; R039-10, 8-13-2010, eff. 7-1-2012)

      NAC 361.155  Billing of real property on unsecured roll. (NRS 360.090,

360.250, 361.480)  Any billing sent to the

owner of real property assessed upon the unsecured roll must include:

     1.  The total taxes due for the year;

     2.  The amount of the tax which is due as of

the next date for payment if the tax is paid in quarterly installments; and

     3.  A statement advising the owner of such

property that payment may be made in:

     (a) One total payment; or

     (b) One payment which includes the quarterly

installments that are due and equal quarterly installments for the remaining

quarters.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A 5-3-84)

ASSESSMENTS BY NEVADA TAX COMMISSION

General Provisions

      NAC 361.200  Definitions. (NRS 360.090, 361.320)  As used in NAC 361.200 to 361.508,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.202 to 361.406,

inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification; A by Tax Comm’n, 9-30-88)

      NAC 361.202  “Accelerated amortization” defined. (NRS 360.090,

361.320)  “Accelerated

amortization” means the accruing of greater depreciation expense for income tax

purposes in the early years of the property’s life and less in the later years.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.203  “Accelerated cost recovery system” defined. (NRS 360.090,

361.320)  “Accelerated

cost recovery system” means a tax accounting methodology whereby normalized

accounting is used to reduce or defer taxes on property and income.

     (Added to NAC by Tax Comm’n, eff. 9-30-88)

      NAC 361.204  “Accelerated depreciation” defined. (NRS 360.090,

361.320)  “Accelerated

depreciation” means the accruing of greater depreciation expense in the early

years of a property’s life and less in the later years. Two methods of

accelerated depreciation are the:

     1.  Sum of the year’s digits method; and

     2.  Declining balance method.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.206  “Accrual accounting” defined. (NRS 360.090, 361.320)  “Accrual accounting” means

recording the revenues and expenses based on amounts due or owing during the

report period whether received, paid or not.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.208  “Accrued depreciation” defined. (NRS 360.090, 361.320)  “Accrued depreciation”

means the amount of depreciation to date; when recorded as a dollar amount it

may be deductible from the total plant value or investment to arrive at the

rate base.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.210  “Advance payments for gas” defined. (NRS 360.090,

361.320)  “Advance

payments for gas” means cash payments made to producers to finance exploration

for gas. If any gas is discovered, the company making the advance payment has

the right to bid on or buy all or part of the discovered gas. Repayment of the

advance is taken in the form of delivered gas.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.212  “Allocation to states” defined. (NRS 360.090, 361.320)  “Allocation to states”

means the process of assigning a portion of a unit value or system statistic to

a state.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.214  “Allowance for funds used during construction” defined. (NRS 360.090,

361.320)  “Allowance

for funds used during construction” means the process of capitalizing interest

expense on funds used during the construction period. As property does not

generate earnings during construction, the capitalized interest expense

represents imputed earnings. The capitalized interest becomes part of the total

cost of the project.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.216  “Amortization” defined. (NRS 360.090, 361.320)  “Amortization” means the

orderly writing off of an investment by making periodic charges against current

income or the orderly retirement of an obligation by making periodic payments

to the creditor.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.218  “Annuity” defined. (NRS 360.090, 361.320)  “Annuity” means a series

of payments to be made at equal intervals, annual, monthly or other. The

payments themselves do not have to be equal. An annuity whose payments are

equal is known as a level annuity.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.220  “Antipollution controls” defined. (NRS 360.090,

361.320)  “Antipollution

controls” means regulations or standards set up under federal and state laws to

correct abuses leading to the contamination of clean air and water supplies by

smoke, smog, fumes, hazardous radiation and other emissions including those

from nuclear or other electric generating plants.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.222  “Apportionment to intrastate jurisdiction” defined. (NRS 360.090,

361.320)  “Apportionment

to intrastate jurisdiction” means the process of assigning a portion of a state

value or state statistic or company statistic to geographical areas, usually

tax levying districts or codes within the State.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.224  “Assessment ratio” defined. (NRS 360.090, 361.320)  “Assessment ratio” means

the relationship of assessed value to market value or to some statutory value

such as actual value or true cash value.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.226  “Band-of-investment” defined. (NRS 360.090, 361.320)  “Band-of-investment” means

a method used to compute a capitalization rate in the absence of market

information. The simplest form of band-of-investment computation requires

estimating the appropriate ratio of debt to equity, the interest cost of debt

and, typically the most subjective element, the rate of return on equity

capital. The weighted rates on debt and equity are added to obtain the

band-of-investment rate.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.228  “Bond discount” defined. (NRS 360.090, 361.320)  “Bond discount” means an

amount in dollars subtracted from the face value of a bond because the market

discount rate is greater than the coupon rate.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.230  “Bond premium” defined. (NRS 360.090, 361.320)  “Bond premium” means an

amount in dollars added to the face value of the bond because of issuing costs

or a market discount rate less than the coupon rate.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.232  “Bond rating” defined. (NRS 360.090, 361.320)  “Bond rating” means a

classification assigned by financial reporting institutions reflecting relative

standings as to risk. The classification may include consideration of

management, revenue prospects, regulatory climate, operating costs and many

other aspects of business operations.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.234  “Book depreciation” defined. (NRS 360.090, 361.320)  “Book depreciation” means

the total accruals recorded on the books of the owner of property summarizing

the systematic and periodic expenses charged toward amortizing the investment

of limited-life property over its expected life.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.236  “Book value,” “net book” defined. (NRS 360.090,

361.320)  “Book

value” or “net book” means the cost of a property as carried in the accounting

records of the owner less the accrued depreciation reserve for that property.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.238  “Capital structure” defined. (NRS 360.090, 361.320)  “Capital structure” means

the manner in which an organization is financed, that is, the amount and kind

of equity and debt that satisfies the need for money.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.240  “Capitalization process” defined. (NRS 360.090,

361.320)  “Capitalization

process” means the conversion of a stream of income having a certain duration

into value by means of a capitalization rate that recognizes the degree of risk

as between the property and the income it produces.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.242  “Capitalization rate” defined. (NRS 360.090, 361.320)  “Capitalization rate”

means a factor, used as a divisor, which converts an income stream into an

indicated value. If the income stream is expected to be of limited duration, a

recapture component may be included in the capitalization rate.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.244  “Cash accounting” defined. (NRS 360.090, 361.320)  “Cash accounting” means

recording revenues actually received and expenses actually paid during the

report period. See NAC 361.206 for contra.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.246  “Cash equivalent” defined. (NRS 360.090, 361.320)  “Cash equivalent” means

the market value of a property expressed in terms of cash.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.248  “Cash flow,” “net cash flow” or “after-tax cash flow” defined. (NRS 360.090,

361.320)  “Cash

flow,” “net cash flow” or “after-tax cash flow” means the sum of depreciation

(and depletion, if any) and net income after all expenses, all taxes and

interest on debt. Conversely, it is gross income minus operating expenses,

interest on debt, property taxes and income taxes.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.250  “Cash flow, before-tax” defined. (NRS 360.090, 361.320)  “Cash flow, before-tax”

means the cash flow plus income taxes. When applied to “cash flow,” the term

“before-tax” refers only to income taxes.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.252  “Certificate of convenience and necessity” defined. (NRS 360.090,

361.320)  “Certificate

of convenience and necessity” means a grant of authority from a state or

federal regulatory commission authorizing a company to render a public utility

service, usually specifying the area and other conditions of service.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.254  “Common carrier” defined. (NRS 360.090, 361.320)  “Common carrier” means a

person, corporation or entity engaged in transporting persons, goods or

messages for compensation over a regular route, on a certain schedule or at a

published rate, all of which are subject usually to government regulation.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.256  “Compound interest and annuity tables” defined. (NRS 360.090,

361.320)  “Compound

interest and annuity tables” means the six sets of factors or coefficients that

embrace the fundamentals of the mathematics of finance. The various factors are

here called present worth of 1, present worth of 1 per annum, future worth of

1, future worth of 1 per annum, sinking fund and mortgage repayment. The first

type of factor, present worth of 1, is derived from the formula:

 

                                                                             1

                                                                                        n

                                                                 ______________________

                                                                         (1

+ r)

 

Where “r” is the discount (capitalization) rate and “n” is the

number of periods. All other factors are derived from the mathematical

manipulation of this formula. Other names are sometimes given to some of the

factors such as “reversion” for present worth of 1, “Inwood” for the present

worth of 1 per annum and many names for mortgage repayment.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.258  “Construction work in progress” defined. (NRS 360.090,

361.320)  “Construction

work in progress” means the total of the balances of work orders for plant,

road and equipment including expenditures on research, development and

demonstration projects for construction of facilities.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 12-20-79]

      NAC 361.260  “Contribution in aid of construction” defined. (NRS 360.090,

361.320)  “Contribution

in aid of construction” means a plant which has been contributed to a utility

by a prospective customer or which has been constructed by the utility and paid

for by the prospective customer for which no reimbursement is required to be

made by the utility to the prospective customer as a prerequisite to obtaining

service.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 12-20-79]

      NAC 361.262  “Debt” defined. (NRS 360.090, 361.320)  “Debt” is money owed. In

the usual case, borrowed money (debt) is considered to be a permanent part of

the capital used in the business.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.264  “Deferred federal income taxes” defined. (NRS 360.090,

361.320)  “Deferred

federal income taxes” means the estimated income tax on the excess of net

revenues, recognized for accounting purposes, over that reported for tax

purposes.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.266  “Depreciation” defined. (NRS 360.090, 361.320)  “Depreciation,” in an

appraisal sense, means the loss in value of an item due to all causes.

Sometimes it is meant to be physical deterioration, but in a strict sense it

would include functional and economic obsolescence.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.268  “Discount rate” defined. (NRS 360.090, 361.320)  “Discount rate” means the

annual percentage rate used to select present worth factors. The discount rate

is one form of capitalization rate. A discount rate can be derived in two ways:

     1.  By use of the band-of-investment method;

or

     2.  From sales data using the discounted cash

flow rate of return method.

Ê The discounted

cash flow rate of return method consists of finding the annual rate at which

future income must be discounted so that the total present worth equals the

proposed investment in the sale price of a property. The present worth of a

given year’s income automatically provides for recapture of capital. The

difference between the income itself and its present worth provides for the

return (yield) on the capital. The term “discount factor” is sometimes

erroneously used instead of “discount rate.” Actually, the factors used in

discounting are present worth factors.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.270  “Earnings-price ratio” defined. (NRS 360.090, 361.320)  “Earnings-price ratio”

means the ratio of earnings per share available to common stockholders of a

specific company for an accounting period to the market price per share of the

common stock of that company. See NAC 361.358.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.272  “Economic life” defined. (NRS 360.090, 361.320)  “Economic life” means the

useful life of a property in contrast to its physical life which could be

greater.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.274  “Economic rent” defined. (NRS 360.090, 361.320)  “Economic rent” means the

rent currently and typically found in the open market.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.276  “Effective rate of interest” defined. (NRS 360.090,

361.320)  “Effective

rate of interest” means the total cost to a company for borrowing money divided

by the face value of the money. The interest expense plus the cost of floating

the debt or compensatory bank balance are included in calculating the total

cost.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.278  “Equity” defined. (NRS 360.090, 361.320)  “Equity” means the owners’

interest in the business. In monetary terms, it is the amount of money the

owners have invested in common and preferred stock plus earnings of the

business that have not been paid out as dividends.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.280  “Expense” defined. (NRS 360.090, 361.320)  “Expense” means the gross

number of dollars paid for materials or services.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.282  “Fair market value” defined. (NRS 360.090, 361.320)  “Fair market value” means

the highest price estimated in terms of money which a property will bring if

exposed for sale in the open market allowing a reasonable time to find a

purchaser who buys with full knowledge of all the uses to which it is adapted

and for which it is capable of being used.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.284  “Fair return” defined. (NRS 360.090, 361.320)  “Fair return” means an

amount of income authorized by a regulatory agency which is considered

sufficient for a utility to attract necessary additional capital while at the

same time rendering adequate service.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.285  “Final reconciliation” defined. (NRS 360.090, 361.320)  “Final reconciliation”

means the application of the process of evaluating alternative conclusions and

selecting from the indications of value derived from each of the approaches

used in the appraisal process to arrive at a final estimate of value.

     (Added to NAC by Tax Comm’n, eff. 9-30-88)

      NAC 361.286  “Fixed expenses” defined. (NRS 360.090, 361.320)  “Fixed expenses” means

those expenses of a business enterprise which do not vary in relation to

changes in volume of output such as interest on borrowed funds, insurance or

general overhead expenses.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.288  “Flow-through accounting” defined. (NRS 360.090,

361.320)  “Flow-through

accounting” means the practice of charging to the current period only those

expenses incurred during the period. A common example is the lesser income tax

expense in a given period, due to the use of accelerated depreciation methods

or guideline lives in contrast to straight-line depreciation or normal service

lives, which would benefit the consumer in the form of lower cost of service if

prescribed by the regulatory agency. See NAC 361.342.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.290  “Form P report” defined. (NRS 360.090, 361.320)  “Form P report” means the

annual report of an operation filed by a common carrier pipeline with the

Surface Transportation Board.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.292  “Form 2 report” defined. (NRS 360.090, 361.320)  “Form 2 report” means the

annual report of an operation filed by an interstate natural gas and electric

transmission company with the Federal Power Commission.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.294  “Form 10-K report” defined. (NRS 360.090, 361.320)  “Form 10-K report” means

an annual report to the Securities and Exchange Commission in Washington, D.C.,

concerning corporate operations.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.296  “Forms R-1 and R-2” defined. (NRS 360.090, 361.320)  “Forms R-1 and R-2” means

the annual reports of business operation filed with the Surface Transportation

Board by Class I railroads (operating revenues of $5,000,000 or more) and Class

II railroads (operating revenues less than $5,000,000) respectively.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.298  “Fractional appraisal” defined. (NRS 360.090, 361.320)  “Fractional appraisal”

means the valuation of one or more component parts without reference to the

value of the whole enterprise. The sum of two or more fractional appraisals is

called a summation appraisal and does not always equal unit value.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.300  “Full cash value” defined. (NRS 360.090, 361.320)  “Full cash value” means

the amount at which the property would be appraised if taken in payment of a

just debt due from a solvent debtor.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.302  “Functional depreciation” defined. (NRS 360.090,

361.320)  “Functional

depreciation” means the loss of service usefulness or obsolescence due to

technological advances or social requirements.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.304  “Generally accepted accounting principles” defined. (NRS 360.090,

361.320)  “Generally

accepted accounting principles” means those procedures adopted and endorsed by

the financial accounting standards board to which auditors certify when filing

an audit report.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.306  “Gross addition” defined. (NRS 360.090, 361.320)  “Gross addition” means new

property added to an existing plant or an improvement in the form of a

betterment added to existing property and is usually reported in a dollar

amount.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.308  “Gross income” defined; synonymous with “gross earnings.” (NRS 360.090,

361.320)  “Gross

income” means the total amount of income received by a natural person before

any deductions are taken. The term is synonymous with the term “gross

earnings.”

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.310  “Historical cost” defined; synonymous with “original cost.” (NRS 360.090,

361.320)  “Historical

cost” means the first cost of a property item of a public utility regardless of

the present owner or interim sales transactions. It usually refers, in the

accounting of public utilities, to the cost of a property item when first

devoted to public service. For other than the accounting of public utilities,

the term means the cost to the owner at the time of acquisition. The term is

synonymous with the term “original cost” in public utility accounting.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.312  “Imbedded debt cost” defined. (NRS 360.090, 361.320)  “Imbedded debt cost” means

the average rate of interest that a company pays for its long-term debt.

Basically, it is the amount of the total interest paid on long-term debt during

the year divided by the face value of the long-term debt outstanding at the end

of the year.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.314  “Inch equivalent” defined. (NRS 360.090, 361.320)  “Inch equivalent” means

the miles of various sizes of a pipeline converted into an equivalent mileage

of 1-inch pipeline. For example, 1 mile of 36-inch pipe is equivalent to 36

miles of 1-inch pipe.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.316  “Income” defined. (NRS 360.090, 361.320)  “Income” means money or

other benefits stemming from the ownership of property, generally received on a

regular monthly or annual basis. The word “income” used alone has no specific

appraisal significance, but must be modified to form terms such as gross income

and net operating income. Revenue is the preferred measure for business and

income is the preferred measure of the salaries of persons.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.318  “Income approach to value” defined. (NRS 360.090,

361.320)  “Income

approach to value” means the method of appraisement that involves the analysis

of the incomes and expenses of income-producing properties and the use of the

capitalization of income to produce property value indicators.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.320  “Indicator of value” defined. (NRS 360.090, 361.320)  “Indicator of value” means

a conclusion of the worth, expressed in dollars, of a specifically identified

item of property (be it a single parcel of land or piece of equipment or an

extensive corporate conglomerate) based upon consideration of particular

characteristics or attributes of that property. Among the most common indicators

of value are those based upon cost, income and comparable sales.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.322  “Interest rate” defined. (NRS 360.090, 361.320)  “Interest rate” means a

promised, typically contractual annual percentage rate of interest paid on a

debt such as a mortgage note or a contract. Interest is the cost of borrowing

money.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.324  “Interperiod allocation” defined. (NRS 360.090,

361.320)  “Interperiod

allocation” means an assignment of expenses to a certain period rather than to

the period in which the expenses occurred. Income tax expense is so handled in

normalization accounting.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.326  “Investment tax credit” defined. (NRS 360.090, 361.320)  “Investment tax credit”

means a federal income tax incentive intended to encourage capital investment.

It is a permanent forgiveness of income tax liability through the direct reduction

of tax liability for the year in which it is utilized. The amount of tax credit

has varied, but it is a percentage of the investment in the qualified plant,

with limits for the amount of tax reduction including carry-back or

carry-forward features. The investment tax credit was repealed for property

placed in service after December 31, 1985.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.328  “Inwood factor or method” defined. (NRS 360.090,

361.320)  “Inwood

factor or method” means a factor or method used to determine the present value

of future earnings. Those earnings are capitalized by using the same risk rate

for both the return on and the return of the investment.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.330  “Liberalized depreciation” defined. (NRS 360.090,

361.320)  “Liberalized

depreciation” means the use of rates of depreciation on property for income tax

purposes that amortizes the investment over a shorter time period than its

actual useful life. See revenue proceedings 72-10 IRS.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.332  “Load factor” defined. (NRS 360.090, 361.320)  “Load factor” means the

ratio of the average use, during a specified time interval, to the peak use

during the same time interval. It may be calculated on a daily, weekly, monthly

or an annual basis.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.334  “Main track” defined. (NRS 360.090, 361.320)  “Main track” means the

lines or routes of a railroad, whether on the main line or a branch line, as

distinguished from yard track, side track or passing track.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.336  “Market value” defined. (NRS 360.090, 361.320)  “Market value” means the

amount in dollars for which a specific item of property could be sold by a

willing seller and be bought by a willing buyer, assuming an arm’s length

transaction and reasonable exposure to the market.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.338  “Net additions” defined. (NRS 360.090, 361.320)  “Net additions” means the

gross additions less the retirements and is usually reported in amounts of

dollars.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.340  “Net operating income” defined. (NRS 360.090, 361.320)  “Net operating income”

means the excess of the revenues of a business enterprise over the expenses of

the enterprise, excluding the income from sources other than its regular

activities, but before the deduction of debt interest or recapture of capital.

In property tax appraisal, the net operating income is at a level that also

includes the sum to be paid for property taxes.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.342  “Normalization accounting” defined. (NRS 360.090,

361.320)  “Normalization

accounting” means the practice of charging to the current period those expenses

related to the current period rather than to the period in which they are

actually incurred. A common example is the computation and assignment of income

tax expense to a period based on a straight-line depreciation method rather

than on an accelerated depreciation method actually used. The income tax

expense computation may or may not have included the additional variable of

normal lives versus allowable guideline lives. See NAC

361.288.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.344  “Obsolescence” defined. (NRS 360.090, 361.320)  “Obsolescence” means the

lessening of value due to causes other than physical causes and may be

functional where circumstances internal to the property item render it less

desirable or economic where circumstances external to the item and beyond the

control of the owner render the property item less desirable.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.346  “Operating expenses” defined. (NRS 360.090, 361.320)  “Operating expenses” means

the direct expenses incurred in conducting the ordinary major activities of an

enterprise, usually excluding nonoperating expenses and income deductions.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.348  “Operating revenue” defined; synonymous with “net revenue.” (NRS 360.090,

361.320)  “Operating

revenue” means the revenue from the operations of the primary business of an

enterprise, such as the electric revenues of an electric utility, which is

gross sales of goods and services, less returns, allowances and cash discounts,

together with gross amounts received from any other regular income source. The

term is synonymous with the term “net revenue” from sales of services.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.350  “Original cost” defined. (NRS 360.090, 361.320)  “Original cost” means the

cost of a property item to the present owner. At times, it is used as an

equivalent to the historical cost.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.352  “Possessory interest” defined. (NRS 360.090, 361.320)  “Possessory interest”

means a type of ownership or partial ownership of the total fee. In financial

terminology it is the portion of the equity in a business enterprise which is

expressed in terms of dollars invested. In valuation it is frequently

encountered where government property is rented or leased to a taxable

occupant.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.354  “Prepayments for gas” defined. (NRS 360.090, 361.320)  “Prepayments for gas”

means payments made for gas which will be delivered in less than 1 year.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.356  “Present worth” defined; synonymous with “present value.” (NRS 360.090,

361.320)  “Present

worth” means the value today of something to be received in the future. It is

usually calculated by a discounting process that takes into consideration the

time and interest concept of the worth of the money. The term is synonymous

with the term “present value.”

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.358  “Price-earnings ratio” defined. (NRS 360.090, 361.320)  “Price-earnings ratio”

means the ratio of the market price per share of the common stock of a specific

company to the earnings per share of common stock of that company during a 12-month

period. Typically, the ratio is based upon the current market price and the

most recent 12-month period for which the earnings are known.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.360  “Rate base” defined. (NRS 360.090, 361.320)  “Rate base” means the

amount in dollars established by a regulatory agency upon which a return is

allowed.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.362  “Rate of capitalization” defined. (NRS 360.090,

361.320)  “Rate of

capitalization” means the ratio of income to value. Such a rate can vary widely

in quality depending upon the elements that are included such as interest,

recapture, ad valorem taxes and income taxes.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.364  “Rate of performance” defined. (NRS 360.090, 361.320)  “Rate of performance”

means the actual income earned compared to an investment in contrast to a rate

of return allowed or permitted but not necessarily accomplished.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.366  “Rate of return” defined. (NRS 360.090, 361.320)  “Rate of return” is a

general term that means:

     1.  The yield to an investor variously on the

investor’s net investment or on the property value; or

     2.  The ratio of either the net operating

income or the before-tax cash flow to either the total property value or the

initial investment or the average investment during a given period.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.368  “Recapture” defined. (NRS 360.090, 361.320)  “Recapture” means the

recovery of a capital investment. More specifically, it is the portion of the

net operating income or the cash flow that provides for the periodic repayment

of invested capital. Recapture may also be achieved, wholly or in part, through

the resale of the property. The words depreciation and amortization are

sometimes used as synonyms for recapture. However, depreciation is also both an

accounting term and a word that means a loss from original value and

amortization is commonly used to signify debt retirement. Recapture does not

have these multiple meanings and is more desirable for use in income appraisal.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.370  “Remaining economic life” defined. (NRS 360.090,

361.320)  “Remaining

economic life” means the difference between the economic life and the present

effective age of an income producing property.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.372  “Replacement cost” defined. (NRS 360.090, 361.320)  “Replacement cost” means

the cost of acquiring or constructing, at current prices, a property which is

the functional equivalent of an existing property.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.374  “Reproduction cost” defined. (NRS 360.090, 361.320)  “Reproduction cost” means

the cost of acquiring or constructing, at current prices, a property identical

to an existing property.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.376  “Reserve life” defined. (NRS 360.090, 361.320)  “Reserve life” means an

estimated number of years that the gas reserves of a natural gas transmission

company will last. For example, the remaining life of a natural gas

transmission company would be the estimated number of years a company can

deliver gas at a given annual volume of gas divided by the total gas reserves.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.378  “Retirement depreciation” defined. (NRS 360.090,

361.320)  “Retirement

depreciation” means a method of accounting for the total depreciation expense

at the date of retirement rather than by systematic additions to a depreciation

reserve during the life of the property.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.380  “Return on equity” defined. (NRS 360.090, 361.320)  “Return on equity” means

the ratio of earnings on the common equity divided by the book value of the

common equity interests.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.382  “Revenue” defined. (NRS 360.090, 361.320)  “Revenue” means the gross

dollars received for materials furnished or services rendered. The term is

usually used in conjunction with business sales as opposed to the earnings of a

natural person.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.384  “Risk” defined. (NRS 360.090, 361.320)  “Risk” means the degree of

uncertainty regarding the receipt of future income, whether in the form of

interest or of net operating income. The higher the risk, the greater the

annual percentage rate of return demanded by investors. Interest on a

government bond or on a bank deposit has a high degree of certainty of receipt

and therefore offers a low rate of return compared to other investments. At the

other extreme is the high risk equity portion of a commercial enterprise with a

high debt equity ratio.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.386  “Sinking fund” defined. (NRS 360.090, 361.320)  “Sinking fund” means the

fund to which periodic cash deposits are made for ultimately repaying a debt or

replacing an asset. Usually, a sinking fund receives equal periodic deposits

upon which interest is compounded at a stated rate so that the fund will

accumulate to a predetermined amount at the end of a stated period.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.387  “Statistical median” defined. (NRS 360.090, 361.320)  “Statistical median” means

the representative intermediate value calculated for a distribution or range of

data usually grouped in several intervals of equal value lying between the two

extreme values.

     (Added to NAC by Tax Comm’n, eff. 9-30-88)

      NAC 361.388  “Straight-line depreciation” defined. (NRS 360.090,

361.320)  “Straight-line

depreciation” means the accounting practice of recording equal annual

increments of depreciation over the estimated life of an asset. In an appraisal

it means equal annual increments of loss in value.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.390  “Summation method of valuation” defined. (NRS 360.090,

361.320)  “Summation

method of valuation” means the combining of fractional valuations into one

value such as the addition of the value of a house to the value of the lot to

produce a total residential value.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.392  “System” defined. (NRS 360.090, 361.320)  “System” means an

integrated operation of units which may be related entities or may be property

elements such as machinery, buildings, land and other property used in the

performance of a service or the manufacture of a product.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.394  “Tariff” defined. (NRS 360.090, 361.320)  “Tariff” means the

compilation of the schedules of rates applicable to each of the products or

services supplied to the public and the regulations governing other aspects of

the sale.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.396  “Taxable value” defined. (NRS 360.090, 361.320)  “Taxable value” means the

value of a property determined by using the cost, income and market approaches

as described in NAC 361.200 to 361.508, inclusive.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.398  “Times interest earned” defined. (NRS 360.090, 361.320)  “Times interest earned”

means the ratio of earnings before the interest expense to the interest

expense. The factor is an element used in determining risk by the purchaser of

debt issues of a company. Generally, the lower the factor the greater the risk.

Also called interest coverage, it may be the ratio of earnings before interest

and income taxes to interest expense.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.400  “Uniform system of accounts” defined. (NRS 360.090,

361.320)  “Uniform

system of accounts” means the prescribed method of accounting adopted by a

state regulatory agency, such as a public service commission, or by a federal

regulatory agency such as the Department of Transportation, the Federal

Communications Commission, the Federal Energy Regulatory Commission or the

Surface Transportation Board.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.402  “Unitary method of valuation” defined. (NRS 360.090,

361.320)  “Unitary

method of valuation,” as used in the central assessment of utilities, is a

method of valuation which recognizes that a utility is an integrated enterprise

and that its market value is not a summation of the values of its various

physical components but its value as a whole as a going concern.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.404  “Variable expenses” defined. (NRS 360.090, 361.320)  “Variable expenses” means

those expenses of a business enterprise which vary with changes in the volume

of output such as outlays for fuel to generate electric power.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.406  “Yield to maturity” defined. (NRS 360.090, 361.320)  “Yield to maturity” means

the computation of the average rate of return on outstanding debt issues taking

into consideration the current price, interest payments and capital gains or

losses at the maturity of the issue.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC

A 9-30-88)

      NAC 361.408  Indicators of value: Cost approach; income approach; market or

stock and debt approach; reconciliation. (NRS 360.090, 361.320)

     1.  The cost approach consists of that cost

of all operating assets subject to the ad valorem property tax pursuant to NRS 361.315 and 361.320 that most closely reflects

the taxable value of these operating assets.

     2.  For the income approach, the adjusted net

operating income either after or before an allowance for depreciation and

federal income tax will be capitalized (converted to value) through the use of

an appropriate capitalization rate for the industry group. The income of the

property to be capitalized will be determined as follows:

     (a) With regard to those industry groups in which

annual earnings are reasonably stable, the most recent year’s earnings may be

capitalized.

     (b) For those industry groups in which annual

earnings vacillate frequently over a period of years, an average of past

earnings may be used.

     3.  The market approach or stock and debt

method of valuation is a technique that is applicable to valuing railroads and

utilities, and it results initially in an enterprise value which encompasses

the entire unit. The stock and debt indicator will be determined by multiplying

either the average monthly, quarterly or annual high and low market price

quotations of all the securities which are actively traded in the market place

including common stock, preferred stock and long-term debt, by the number of

shares outstanding at the end of the year. With regard to those securities

which are not actively traded, computations of the present worth of the income

flows may be made for the determination of their value. To this amount will be

added short-term debt, together with other applicable adjustments. From this

amount will be deducted the nonoperating and nonassessable assets for the

indication of the value of those assets encompassed within NRS 361.315 and 361.320.

     4.  A review will be made of the one or more

available indicators of value. These indicators of value will then be

reconciled to derive the final estimate of value.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79;

A 10-15-81]—(NAC A 9-30-88; R085-98, 11-23-98)

      NAC 361.410  Use of unit rule of valuation. (NRS 360.090, 361.320)  In the valuation of those

properties which are listed in NRS

361.320, the unit rule of valuation will be used when considered

applicable. The unit rule generally applies to companies which own or operate

lines or roads which lie partly within and partly without Nevada. In these

cases, the Department will only value and assess the property within the State.

In determining the value of the portion within the State, the Department may

take into consideration the value of the entire system, the mileage of the

whole system and of the part within the State, together with such other

information, facts and circumstances as will support a substantially just and

correct determination.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

      NAC 361.411  Reports of construction work in progress. (NRS 360.090,

361.321)  Construction

work in progress must be reported to the Department to the extent to which it

provides additional capacity even though part of the new construction replaces

existing property.

     (Added to NAC by Tax Comm’n, eff. 10-10-83)

Communications, Electric, Gas Transmission, Pipeline and

Railroad Companies

      NAC 361.421  Cost approach indicator of value: Determination. (NRS 360.090,

361.320)  The cost

approach consists of:

     1.  Determining the gross book cost for

financial reporting purposes of all taxable operating property, including, but

not limited to, all property relating to rail transportation, utility plant in

service, plant held for future use, contributed plant, nuclear fuel,

construction work in progress, experimental plant, acquisition adjustments,

materials and supplies, plant and other property leased from others and common

plant.

     2.  Deducting from the gross book cost the

accrued book depreciation recorded for financial reporting purposes, which may

include physical, functional and economic obsolescence. Additional obsolescence

must be deducted when adequately quantified.

     (Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,

11-23-98)

      NAC 361.4215  Cost approach indicator of value: Optional cost information. (NRS 360.090,

361.320)  The

taxpayer may present and the Department shall consider, in addition to the

information required by NAC 361.421, one or more of

the following alternative cost indicators of value:

     1.  A calculation of the reproduction cost

new less depreciation for all taxable operating property of the collective unit

being assessed. The calculation must have been performed in accordance with

generally accepted appraisal methodology.

     2.  A calculation of the replacement cost new

less depreciation for all taxable operating property of the collective unit

being assessed. The calculation must have been performed in accordance with

generally accepted appraisal methodology.

     3.  Any other relevant and verifiable

information, such as rate base for regulatory purposes.

     (Added to NAC by Tax Comm’n by R085-98, eff. 11-23-98)

      NAC 361.423  Income approach indicator of value: Formula for determination. (NRS 360.090,

361.320)

     1.  The capitalized income approach consists

of deducting from the normalized and annualized gross operating income any

direct and indirect normalized and annualized operating expenses specifically

related to the normalized and annualized gross operating income including any

annualized book depreciation. Deferred income taxes will be treated as an

operating expense. Normalized and annualized rental expense on operating

property leased from others, less imputed depreciation, income taxes and other

applicable expenses, will be disallowed as an operating expense.

     2.  The resulting adjusted net operating

income will be capitalized (converted to value) using an appropriate

capitalization rate for the industry group. The capitalization rate for the

typical company will be used for the firms being appraised in each industry

group. The market capitalization rate will be derived from calculations made

for selected companies in each industry group.

     3.  The operating income to be capitalized

into taxable value will be normalized and annualized based on the most recent

year’s adjusted net operating income. When the most recent year’s net operating

income is not a reasonable representation of a company’s net operating income,

such as where a company’s net operating income tends to be cyclical, a 3- or

5-year average of adjusted net operating incomes will be normalized and

annualized and may be used.

     4.  Construction work in progress is not a

factor in applying the income approach to value.

     5.  Any normalization or annualization

adjustments to a company’s net operating income must be based on known,

measurable and experienced changes in a company’s operation or taxable property

as of the current year’s reporting date.

     (Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,

11-23-98)

      NAC 361.425  Income approach indicator of value: Capitalization rate. (NRS 360.090,

361.320)  The

capitalization rate will be established from a selected number of firms to

derive the rate for the typical company in each industry group when the

information is available:

     1.  The band-of-investment method will be

used in the compilation of the capitalization rate.

     2.  The band-of-investment method represents

the cost of the money needed by the typical company in each industry group to

acquire its operating plant and carry on its operations. It is composed of two

factors:

     (a) The capitalization ratios of the typical

company; and

     (b) The cost of the items which comprise the total

capital structure of the typical company.

     3.  A “typical company” means a theoretical

company which is representative of the firms within an industry group. The

selected firms in the industry group will be comparable in amount of revenues,

bond ratings, nature of operations and regulatory environment. Certain

nonutility conglomerates which have utility operations in Nevada will be

studied in the light of other similar conglomerates. Conglomerates will not be

grouped with nonconglomerates where possible. The development of the typical

company will reflect input by the companies within the industry group which are

centrally assessed.

     4.  The items which comprise the total

capital structure of the typical company are those amounts as recorded for

financial reporting purposes that represent the sources of the money or capital

funds made available to acquire the taxable operating property of the industry

group. For the purposes of this subsection, “capital funds” means money

obtained from:

     (a) Creditors through notes or bonds;

     (b) Stockholders through stocks, paid-in capital and

undistributed retained earnings; and

     (c) Similar financial capital accounts, except not

from the Federal Government through deferred income taxes.

Ê The total

capital structure of the typical company will be derived through the use of a

statistical median from the selected sample of firm calculations.

     5.  In addition to the total capital

structure of the typical company derived pursuant to subsection 4, the taxpayer

may present and the Department shall consider the total capital structure of

the typical company based upon common equity, preferred equity and the

long-term debt percentages as developed from market information for comparable

companies in the industry group. The total capital structure of the typical

company must be derived from the use of market information from the selected

sample of firm calculations.

     6.  The annual average of high-low monthly

yields to maturity compiled by Moody’s Investors Service (Public Utility and

Transportation), or another accepted service approved by the Executive Director

of the Department, will be used for the assignment of a cost to the long-term

bonded indebtedness component of the total capital structure.

     7.  The assignment of cost to preferred stock

will be determined in a manner consistent with subsection 6.

     8.  The assignment of cost to that portion of

the total capital structure which represents equity for the typical company in

each industry group will be determined in the following manner:

     (a) The Department shall develop an equity rate for

each industry group based on one or more of the following models:

          (1) Discounted cash-flow method.

          (2) Capital asset-pricing.

          (3) Risk premium analysis.

     (b) The Department shall also consider the results

of cost of equity studies provided by members of the industry group based on

the models set forth in paragraph (a).

     (c) When considered applicable, the cost of equity

capital established for the industry group may be determined by using

additional models, such as direct capitalization, accepted in the appraisal and

financial communities and approved by the Executive Director of the Department.

     9.  The capitalization rate of the typical

company for the industry group will be calculated by using a weighted method

(band-of-investment) which is the total capital structure percentage times the

component rate percentage. The weighted values are then totaled and rounded to

four decimal places to get the capitalization rate.

 

     EXAMPLE:

 



 





MEDIAN





 





 





 







 





CAPITAL





 





 





WEIGHTED







     TYPICAL

COMPANY





STRUCTURE





X





RATE =





      RETURN







 





 





 





 





 







     Common Equity





42.50%





 





11.20%





4.76000%







     Preferred Equity





9.25%





 





9.35%





.86488%







     Long-Term Debt





48.25%





 





9.45%





4.55963%







     Capitalization Rate





 





 





 





 







          for Industry Group





 





 





 





10.1845%





 

     10.  The determination of the income value

indicator requires the capitalization of the adjusted net operating income at

the current capitalization rate. Financial data for selected companies in each

industry group, as presented in the latest annual reports by Moody’s Investors

Service (Public Utility and Transportation), or another accepted service

approved by the Executive Director of the Department, will be used in the

compilation of the capitalization rate of the typical company.

     11.  An alternative to the capitalization

rate method in subsections 1 to 9, inclusive, may be the use of a rate for the

industry group as published by the Western States Association of Tax

Administrators, or another recognized tax related organization approved by the

Executive Director of the Department.

     (Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,

11-23-98)

      NAC 361.427  Stock and debt approach indicator of value. (NRS 360.090,

361.320)

     1.  The stock and debt approach proposes a

value for the entire firm, but is generally recognized as a less applicable

methodology for determining the value of taxable property.

     2.  The stock and debt indicator is

determined by multiplying either the average monthly, quarterly or annual high

and low market price quotations, when available, for all the securities which

are actively traded in the market place, including common stock, preferred

stock and long-term debt, by the number of shares outstanding at the end of the

year. Computations of the present worth of income flows may be made to

determine values for securities which are not actively traded.

     3.  The value of the stock of a holding

company is apportioned among its operating companies according to the ratio of:

     (a) Each operating company’s property to the

aggregate property of all of the operating companies, valued at historical cost

and weighted at one-third; and

     (b) Each operating company’s net income before

income taxes to the aggregate net income of all of the operating companies,

weighted at two-thirds.

Ê For the

industry group of rail transportation, the direct deduction method to eliminate

nonoperating assets will be used when the information is available and

considered applicable.

     4.  To this amount will be added items such

as customer advances for construction which are nontaxable for federal income

tax purposes, current liabilities less dividends declared, the present worth of

leased property over the period of the lease together with any other items

conforming to the theory that if a person were to purchase all the stock and

assume all the outstanding liabilities of a company, the person would have

acquired all the assets which appear on the asset side of the balance sheet

and, therefore, own the company.

     5.  From this amount will be deducted the

market value of all exempt or nonoperating property, including, but not limited

to, cash, accounts receivable, notes receivable, miscellaneous investments,

temporary investments, nonoperating properties and other current and accrued

assets and properties not subject to the ad valorem property tax imposed by NRS 361.315 and 361.320.

     (Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,

11-23-98)

      NAC 361.429  Reconciliation of indicators of value. (NRS 360.090,

361.320)

     1.  Immediately related to the valuation

process is the reconciliation of one or more indicators of value to reach the

final estimate of value for the system.

     2.  For multiple departmental companies, when

considered applicable, the utility analyst will either reconcile the indicators

of value for allocation of the value of the system to the value to the various

departments, or use the adopted Western States Association of Tax

Administrators formulas, approved by the Executive Director of the Department,

to allocate the Department and stock and debt values based on the cost and

income data.

     3.  The utility analyst will reconcile in

writing to the taxpayer the relative significance, applicability and

defensibility of the indication of value derived from each approach to arrive

at, in the utility analyst’s professional judgment, the appropriate final

estimate of value for the system.

     4.  The utility analyst will reconcile, in

writing to the taxpayer, the facts, trends and observations developed in the

analysis and review the conclusion and the probable validity and reliability of

the conclusion.

     (Added to NAC by Tax Comm’n, eff. 9-30-88)

      NAC 361.431  Allocation of value of interstate and intercounty properties. (NRS 360.090,

361.320)

     1.  Since the unit rule of valuation will be

used for all interstate and intercounty properties, an allocation of those

properties operating in Nevada will be made.

     2.  The allocation will:

     (a) Total 100 percent for all states in which the

company operates; and

     (b) Reflect the quantity of property in each state,

as well as the use or value of the property in each state.

     3.  Allocation factors will be those that are

readily available rather than requiring some new or additional statistic and

the factor will not be an allocation in and of itself.

     4.  The interstate allocation will be made in

proportion to the contribution to the unit value made by the property in

Nevada. The allocation will be a reflection of the property value. It is the

value of the existing property which is being allocated, not merely the amount

of the physical property.

     5.  Available quantity elements such as cost

and economic or use elements such as revenue will be used in the determination

of the allocation.

     6.  The interstate allocation formulas

adopted by the Western States Association of Tax Administrators will be

approved by the Executive Director of the Department and used when the

information is available and considered applicable.

     (Added to NAC by Tax Comm’n, eff. 9-30-88)

      NAC 361.433  Deductions from taxable value. (NRS 360.090, 361.320)

     1.  The value and not the cost of any

vehicles licensed in Nevada will be deducted from the taxable value of the

property which was allocated to Nevada.

     2.  For telecommunications companies,

property on lands ceded to the United States Government before 1936 will also

be deducted. Cost less depreciation as reported by the company will be used.

     3.  The value and not the cost of certified

pollution control equipment directly related to the operation of the firm will

be deducted from the taxable value to the extent allowed pursuant to statute.

     (Added to NAC by Tax Comm’n, eff. 9-30-88)

Air Transportation Companies Generally

      NAC 361.451  Applicability. (NRS 360.090, 361.320)  Except as specifically

provided in NAC 361.4685, the provisions of NAC 361.452 to 361.468,

inclusive, do not apply to a taxpayer whose property is assessed pursuant to NAC 361.4685, 361.469 and

361.4695.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A by R026-99,

1-27-2000)

      NAC 361.452  Cost approach indicator of value. (NRS 360.090,

361.320)  The cost

approach consists of:

     1.  Determining the gross book cost for

financial reporting purposes of all taxable operating property, including,

without limitation, airframes, engines, propellers, radio equipment,

miscellaneous flight equipment, spare parts and assemblies, leased aircraft,

improvements to leased equipment, construction work in progress, ground

property and equipment, land, expendable parts, materials and supplies, and

leased property; and

     2.  Deducting from the gross book cost the

accrued book depreciation recorded for financial reporting purposes, which may

include, without limitation, physical, functional and economic obsolescence.

Additional obsolescence must be deducted when adequately quantified.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]—(NAC

A 9-30-88; R026-99, 1-27-2000)

      NAC 361.454  Income approach indicator of value: Formula for determination. (NRS 360.090,

361.320)

     1.  The capitalized income approach consists

of deducting from the normalized and annualized gross operating income any

direct and indirect normalized and annualized operating expenses specifically

related to the normalized and annualized gross operating income, including,

without limitation, any annualized book depreciation. Deferred income taxes

will be treated as an operating expense. Normalized and annualized rental expense

on operating property leased from others, less imputed depreciation, income

taxes and other applicable expenses, will be disallowed as an operating

expense.

     2.  The resulting adjusted net operating

income will be capitalized (converted to value) using an appropriate

capitalization rate for the airline industry group. The capitalization rate for

the typical company will be used for the carriers being appraised in each

airline industry group. The market capitalization rate will be derived from

calculations made for selected carriers in each airline industry group.

     3.  The operating income to be capitalized

into taxable value will be normalized and annualized based on the most recent

year’s adjusted net operating income. When the most recent year’s net operating

income is typically not a reasonable representation of the net operating income

of an airline, such as where the net operating income of the airline tends to

be cyclical, a 3- or 5-year average of adjusted net operating incomes will be

normalized and annualized and may be used.

     4.  The net operating income may be

capitalized before deducting any book depreciation or income tax if the

normalized and annualized net operating income results in a negative amount. If

any book depreciation or income tax is added to the net operating income before

the net operating income is capitalized, the capitalization rate must include a

component for that book depreciation or income tax.

     5.  Any normalization or annualization

adjustments to the net operating income of a carrier must be based on known,

measurable and experienced changes in the operation or taxable property of the

carrier as of the current year’s reporting date.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79;

A 10-15-81]—(NAC A 9-30-88; R026-99, 1-27-2000)

      NAC 361.456  Income approach indicator of value: Capitalization rate. (NRS 360.090,

361.320)  The

capitalization rate will be established from a selected number of carriers and

determined in the following manner to arrive at the typical company in the

airline industry group when the information is available:

     1.  The band-of-investment method will be

used in the compilation of the capitalization rate.

     2.  The band-of-investment method represents

the cost of the money needed by the typical company in the airline industry

group to acquire its operating plant and carry on its operations. It is

composed of two factors:

     (a) The capitalization ratios of the typical

company; and

     (b) The cost of the items which comprise the total

capital structure of the typical company.

     3.  A “typical company” means a theoretical

company which is representative of the carriers within an airline industry

group. These carriers will be comparable in amount of revenues, bond ratings

and nature of operations. Certain nonairline conglomerates which have airline

operations in this State will be studied in light of other similar

conglomerates. Regular carriers will not be grouped with conglomerates where

possible. Development of typical company factors will reflect input by the

carriers within the airline industry group which are centrally assessed. As

used in this subsection, “nature of operations” includes, without limitation,

the size, route structure and fleet diversification of the air carrier.

     4.  The items which comprise the total

capital structure of the typical company are those amounts as recorded for

financial reporting purposes that represent the sources of the money or capital

funds made available to acquire the taxable operating property of the airline

industry group. As used in this subsection, “capital funds” means money

obtained from:

     (a) Creditors through notes or bonds;

     (b) Stockholders through stocks, paid-in capital

and undistributed retained earnings; and

     (c) Similar financial capital accounts except not

from the Federal Government through deferred income taxes.

Ê The capital

structure of the typical company will be derived through the use of a statistical

median from the calculations of the selected sample carriers.

     5.  In addition to the total capital

structure of the typical company derived by the Department pursuant to

subsection 4, the taxpayer may present and the Department shall consider the total

capital structure of the typical company based upon the common equity,

preferred equity and the long-term debt percentages as developed from market

information for comparable carriers in the airline industry group. The total

capital structure of the typical company must be derived from using market

information from the selected sample of carrier calculations.

     6.  The annual average of high-low yields to

maturity compiled by Moody’s Investors Service (Public Utility and

Transportation) or another acceptable service, approved by the Executive

Director of the Department, will be used for the assignment of a cost to the

long-term bonded indebtedness component of the total capital structure.

     7.  The assignment of cost to preferred stock

will be determined in a manner consistent with subsection 6.

     8.  The assignment of cost to that portion of

the total capital structure which represents equity for the typical company in

each airline industry group will be determined in the following manner:

     (a) The Department shall develop an equity rate for

each airline industry group based on one or more of the following models:

          (1) Discounted cash-flow method.

          (2) Capital asset-pricing.

          (3) Risk premium analysis.

     (b) The Department shall also consider the results

of cost of equity studies provided by a carrier of the airline industry group

based on the models set forth in paragraph (a).

     (c) When considered applicable, the cost of equity

capital established for the airline industry group may be determined by using

additional models, including, without limitation, direct capitalization,

accepted in the appraisal and financial communities and approved by the

Executive Director of the Department.

     9.  The capitalization rate of the typical

company for the airline industry group will be calculated by using a weighted

method (band-of-investment) which is the total capital structure percentage

times the component rate percentage. The weighted values are then totaled and

rounded to four decimal places to get the capitalization rate.

 

     EXAMPLE:



 





MEDIAN





 





 





 







 





CAPITAL





 





 





WEIGHTED







     TYPICAL COMPANY





STRUCTURE





X





RATE =





RETURN







 





 





 





 





 







     Common Equity





42.50%





 





11.20%





4.76000%







     Preferred Equity





9.25%





 





9.35%





.86488%







     Long-Term Debt





48.25%





 





9.45%





4.55963%







     Capitalization Rate

          for Industry Group





 





 





 





10.1845%







 

     10.  The determination of the income value

indicator requires the capitalization of the adjusted net operating income at

the current capitalization rate. Financial data for selected carriers in each

airline industry group as presented in the latest annual reports by Moody’s

Investors Service (Public Utility and Transportation) or another accepted

service, approved by the Executive Director of the Department, will be used in

the compilation of the capitalization rate of the typical company.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79;

A 10-15-81]—(NAC A 10-10-83; 9-30-88; R026-99, 1-27-2000)

      NAC 361.460  Reconciliation of indicators of value. (NRS 360.090,

361.320)

     1.  Immediately related to the valuation

process is the reconciliation of one or more indicators of value to reach the

final estimate of value for the system.

     2.  The analyst will reconcile in writing to

the taxpayer the relative significance, applicability and defensibility of the

indication of value derived from each approach to arrive at, in the

professional judgment of the analyst, the appropriate final estimate of system

value for the air transport company.

     3.  The analyst will reconcile in writing to

the taxpayer the facts, trends and observations determined in the analysis and

review the conclusion and the probable validity and reliability of that

conclusion.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79;

A 10-15-81]—(NAC A 10-10-83; 9-30-88)

      NAC 361.462  Deduction of depreciated cost of nonallocable flight equipment. (NRS 360.090,

361.320)

     1.  The depreciated cost of the nonallocable

flight equipment will be deducted from the total depreciated cost of the flight

equipment.

     2.  For the purposes of this section:

     (a) “Flight equipment” includes, without

limitation, airframes, engines, propellers, radio equipment, miscellaneous

flight equipment, spare parts and assemblies, leased aircraft and improvements

to leased equipment.

     (b) “Nonallocable flight equipment” means only that

property or equipment which is not attached or required to be aboard or part of

an aircraft which is ready for flight.

     3.  Every item of property which is required

to be aboard for the operation of the aircraft will be classified as allocable

flight equipment.

     4.  The only instances when an aircraft will

be classified as nonallocable are when:

     (a) The carrier purchased an aircraft which was not

delivered or was delivered too late to have participated in the creation of the

allocation statistics; or

     (b) An aircraft which is owned by the carrier was

leased to and operated by another party.

     5.  The percentage of the total amount of tangible

personal property of the carrier which the allocable flight equipment

represents will be calculated and applied to the total estimate of value of the

assessable property of the carrier.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

      NAC 361.464  Allocation of value of interstate companies. (NRS 360.090,

361.320)

     1.  Since the unit rule of valuation will be used

for the described properties, an allocation of those properties operating in

Nevada will be made.

     2.  The allocation will:

     (a) Total 100 percent for all states in which a

company operates; and

     (b) Reflect the quantity of property in each state,

as well as the use or value of the property in each state.

     3.  Allocation factors will be those that are

readily available rather than requiring some new or additional statistic, and a

factor will not be an allocation itself.

     4.  The interstate allocation will be made in

proportion to the contribution to the unit value made by the property in

Nevada. Allocation will be made in the light of the property value. It is the

value of the existing property which is being allocated, not merely the amount

of the physical property.

     5.  Available quantity elements such as cost

and economic or use elements such as revenue will be used in the determination

of the allocation.

     6.  The following elements will be considered

in the allocation of allocable flight equipment to Nevada and are assigned the

following weight:

     (a) Air and ground time weighted to the original

cost of allocable flight equipment, 50 percent;

     (b) Originating and terminating tonnage, 15

percent; and

     (c) Revenue ton miles flown, 35 percent.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

      NAC 361.466  Development, application of factor for property located in

Nevada. (NRS 360.090, 361.320)

     1.  The depreciated cost of the total

tangible property of the carrier will be related to the estimate of value for

the system for that same property in the form of a percentage. (This estimate

of value will be determined by using the three approaches to value divided by

the depreciated cost of the total tangible property.)

     2.  The factor so developed will be applied

to that ground property having situs in Nevada.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

      NAC 361.468  Addition of property located in Nevada. (NRS 360.090,

361.320)  The

adjusted estimate of value for the situs property in Nevada will be added to

the flight equipment which was allocated to Nevada for the final estimate of

value for Nevada.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]

Certain Air Transport Companies, Airline Industry Groups,

and Unscheduled or Charter Air Carriers

      NAC 361.4685  Applicability. (NRS 360.090, 361.320)

     1.  The provisions of NAC

361.469 and 361.4695 apply to each air

transport company or airline industry group, including, without limitation,

regional airlines or unscheduled airlines, for which information is

insufficient to complete a valuation pursuant to NAC

361.451 to 361.468, inclusive.

     2.  The property of an unscheduled or a

charter air carrier which is not domiciled in Nevada may be valued pursuant to

this section and NAC 361.469 and 361.4695 and placed on the unsecured tax roll.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A by R026-99,

1-27-2000)

      NAC 361.469  Formula for assessment. (NRS 360.090, 361.320)

     1.  All allocable flight equipment may be

valued in accordance with the Personal Property Manual published by the

Department and approved by the Commission pursuant to NAC

361.1365 for each fiscal year or in accordance with other books or manuals

that provide guidance in establishing value approved by the Executive Director.

     2.  A portion of the value of the flight

equipment will be allocated to Nevada based on an average of the data described

in subsection 3 or described in NAC 361.464 when

the information is available and considered applicable.

     3.  The weighted ground-time ratio, as

indicated by flight schedules, plane hours, originating and terminating tonnage

and revenue ton miles flown in Nevada, as a percentage of the system, will be

used as the statistic for allocating value to Nevada.

     [Tax Comm’n, Property Tax Reg. Part No. 15N, eff. 10-30-79]—(NAC

A 10-10-83; R026-99, 1-27-2000; R034-03, 12-4-2003)

      NAC 361.4695  Property located in Nevada. (NRS

360.090, 361.320)  To the

value of the flight equipment allocated to Nevada will be added the depreciated

book cost of all ground property in Nevada, including, without limitation,

buildings and improvements, furniture, fixtures, machinery, equipment and

nonallocable flight equipment. The value of the property which is not

represented by the depreciated book cost, including, without limitation, leased

and rented property, may be added to determine the total value of the operation

in this State.

     [Tax Comm’n, Property Tax Reg. part No. 15N, eff. 10-30-79]—(NAC

A by R026-99, 1-27-2000)

Private Car Line Companies

      NAC 361.506  Formula for assessment. (NRS 360.090, 361.320)  The value for private car

line companies will be:

     1.  Six thousand dollars assessed valuation

for each 219,000 miles traveled in Nevada for tank cars.

     2.  Seven thousand dollars assessed valuation

for each 255,000 miles traveled in Nevada for refrigeration cars.

     3.  Six thousand dollars assessed valuation

for each 255,000 miles traveled in Nevada by other types of cars, including,

without limitation, stock, box, hopper and flat cars.

     [Tax Comm’n, Property Tax Reg. part No. 15I, eff. 10-30-79]—(NAC

A 9-30-88)

Municipal Electric Companies

      NAC 361.508  Valuation. (NRS 360.090, 361.320)  In the valuation of

municipal utilities, the depreciated book cost of all operating facilities in

Nevada subject to assessment pursuant to NRS 361.315 and 361.320 will be used.

     [Tax Comm’n, Property Tax Reg. part No. 15J, eff. 10-30-79]—(NAC

A 10-10-83; 9-30-88)

CERTIFICATION OF APPRAISERS

      NAC 361.535  Definitions. (NRS 360.090, 361.221)  As used in NAC 361.535 to 361.575,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.537 to 361.553,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.537  “Appraiser” defined. (NRS 360.090, 361.221)

     1.  “Appraiser” means an employee of or an

independent contractor with the State of Nevada or any of its political

subdivisions who exercises judgment using his or her skills and knowledge of

property appraisal to estimate the value of property for the purpose of

taxation.

     2.  The term does not include a person who

only collects data or manipulates computer programs to collect and organize

data but does not render an estimate of the value of property.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.539  “Appraiser’s certificate” defined. (NRS 360.090,

361.221)  “Appraiser’s

certificate” means a certificate issued by the Department that authorizes a

person to perform the duties of an appraiser.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.541  “Appraiser’s certificate examination” defined. (NRS 360.090,

361.221)  “Appraiser’s

certificate examination” means a comprehensive examination administered by the

Department which covers the technical, legal and administrative aspects of the

appraisal and assessment of property and which consists of a section that tests

general knowledge and a section that tests specific knowledge.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.543  “Approved education course” defined. (NRS 360.090,

361.221, 361.223)  “Approved education

course” means a course of continuing education approved by the Department. The

term includes, without limitation, classes, workshops and seminars.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.545  “Board” defined. (NRS 360.090, 361.221)  “Board” means the

Appraiser’s Certification Board established by NRS 361.221.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.547  “Contact hour” defined. (NRS 360.090, 361.221, 361.223)  “Contact hour” means 1

hour of credit toward continuing education requirements awarded by the

Department for attendance at or instruction of an approved education course.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.549  “Independent contractor” defined.

(NRS 360.090, 361.221)  “Independent contractor”

means a person who contracts with, but is not otherwise employed by, the State

of Nevada or any of its political subdivisions to perform the duties of an

appraiser.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.551  “Personal property appraiser’s certificate” defined. (NRS 360.090,

361.221)  “Personal

property appraiser’s certificate” means an appraiser’s certificate that authorizes

a person to perform the duties of an appraiser with respect to personal

property only.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.553  “Real property appraiser’s certificate” defined. (NRS 360.090,

361.221)  “Real

property appraiser’s certificate” means an appraiser’s certificate that

authorizes a person to perform the duties of an appraiser with respect to real

property only.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.555  Temporary appraiser’s certificate. (NRS 360.090,

361.221, 361.222)

     1.  A person who is newly employed as an

appraiser by the State of Nevada or any of its political subdivisions may apply

to the Department for a temporary appraiser’s certificate.

     2.  The application must satisfy the

requirements of NRS 361.2224

and 361.2225, be on a form

approved by the Department and include:

     (a) The name of the applicant;

     (b) The mailing address and telephone number of the

place of employment of the applicant;

     (c) Verification of the employment of the

applicant; and

     (d) Such other information as the Department may

require.

     3.  The Department will provide each

applicant with a list of the dates on which and the locations at which the

appraiser’s certificate examination will be offered.

     4.  The Department will issue a temporary

appraiser’s certificate to a qualified applicant within 30 days after receiving

the application. The certificate must include the name of the person to whom

and the date on which it is issued, designate whether the holder is authorized

to appraise real property or personal property, or both, and be signed by an

authorized representative of the Department.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.557  Appraiser’s certificate. (NRS 360.090, 361.221)

     1.  A person who is employed as an appraiser

by the State of Nevada or any of its political subdivisions may apply to the

Department for an appraiser’s certificate.

     2.  The application must satisfy the

requirements of NRS 361.2224

and 361.2225, be on a form

approved by the Department and include:

     (a) The name of the applicant;

     (b) The mailing address and telephone number of the

place of employment of the applicant;

     (c) Verification of the employment of the

applicant; and

     (d) Such other information as the Department may

require.

     3.  Except as otherwise provided in

subsection 4, to be eligible for an appraiser’s certificate, the applicant must

pass the appraiser’s certificate examination.

     4.  An applicant who submits proof

satisfactory to the Department that he or she has earned a professional

designation from any of the member organizations of the Appraisal Foundation is

not required to take the section of the appraiser’s certificate examination

that tests specific knowledge. Such professional designations include, without

limitation:

     (a) Member, Appraisal Institute (MAI).

     (b) Certified Assessment Evaluator (CAE).

     (c) Senior Real Property Appraiser (SRPA).

     (d) Senior Real Estate Analyst (SREA).

     (e) Residential Member (RM).

     (f) Residential Evaluation Specialist (RES).

     (g) Senior Residential Appraiser (SRA).

     (h) Personal Property Specialist (PPS).

     5.  If an applicant, pursuant to subsection

4, submits proof of a professional designation that signifies specialization in

the appraisal of real property or personal property, but not both, the

Department, if it issues an appraiser’s certificate to the applicant, will

issue a real property appraiser’s certificate or a personal property

appraiser’s certificate, as applicable.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.559  Independent contractor’s appraiser’s certificate: Generally. (NRS 360.090,

361.221)

     1.  A person who wishes to perform the duties

of an appraiser as an independent contractor with the State of Nevada or any of

its political subdivisions may apply to the Department for an independent

contractor’s appraiser’s certificate.

     2.  The application must satisfy the requirements

of NRS 361.2224 and 361.2225, be on a form approved by

the Department and include:

     (a) The name of the applicant;

     (b) The mailing address and telephone number of the

applicant; and

     (c) Such other information as the Department may

require.

     3.  In addition to the requirements of

subsection 2, the applicant must provide the Department with the resume of the

applicant which documents the applicant’s education, his or her experience as

an appraiser and any professional designations or certificates he or she holds,

and which contains the names of at least two personal references. The

Department may investigate the truthfulness of the information and

representations set forth in the resume.

     4.  Except as otherwise provided in

subsection 5, to be eligible for an independent contractor’s appraiser’s

certificate, the applicant must pass the appraiser’s certificate examination.

     5.  An applicant who submits proof

satisfactory to the Department that he or she has earned a professional

designation from any of the member organizations of the Appraisal Foundation is

not required to take the section of the appraiser’s certificate examination

that tests specific knowledge. Such professional designations include, without

limitation:

     (a) Member, Appraisal Institute (MAI).

     (b) Certified Assessment Evaluator (CAE).

     (c) Senior Real Property Appraiser (SRPA).

     (d) Senior Real Estate Analyst (SREA).

     (e) Residential Member (RM).

     (f) Residential Evaluation Specialist (RES).

     (g) Senior Residential Appraiser (SRA).

     (h) Personal Property Specialist (PPS).

     6.  If an applicant, pursuant to subsection

5, submits proof of a professional designation that signifies specialization in

the appraisal of real property or personal property, but not both, the

Department, if it issues an appraiser’s certificate to the applicant, will

issue a real property appraiser’s certificate or a personal property

appraiser’s certificate, as applicable.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.561  Independent contractor’s appraiser’s certificate: Renewal. (NRS 360.090,

361.221)

     1.  An independent contractor’s appraiser’s

certificate must be renewed annually.

     2.  Except as otherwise provided in

subsection 3, an application for renewal must be made in the same manner as,

and is subject to the same requirements applicable to, an initial application

as set forth in NAC 361.559.

     3.  The Department will waive the examination

requirement for renewal if the applicant for renewal has satisfied the

requirements for continuing education set forth in this chapter and NRS 361.223 and requests on the

application for renewal that the examination requirement be waived.

     4.  Before an independent contractor’s

appraiser’s certificate is renewed, the independent contractor must present

proof satisfactory to the Department that he or she has contracted with the

State of Nevada or any of its political subdivisions as an independent

contractor within the immediately preceding 12 months, or that he or she has a

reasonable expectation of so contracting within the next following 12 months.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.563  Appraiser’s certificate examination. (NRS 360.090,

361.221)

     1.  The Department will offer the appraiser’s

certificate examination at least once each quarter. At least one administration

of the examination each year must be at a location in northern Nevada, and at

least one administration of the examination each year must be at a location in

southern Nevada. A county assessor may submit to the Department a written

request for an additional examination time and location. The Department will

consider such a request if the budget of the Department is adequate to support

the additional examination time and location.

     2.  The section of the appraiser’s

certificate examination that tests general knowledge must, without limitation,

test the knowledge and understanding of an applicant concerning:

     (a) Land description and land use classifications;

     (b) Principles and concepts of the appraisal of

property;

     (c) Relevant statutes and regulations of this

State; and

     (d) Principles of property tax administration.

     3.  The section of the appraiser’s

certificate examination that tests specific knowledge must, without limitation,

test the knowledge and understanding of an applicant concerning either:

     (a) Principles and concepts of the appraisal of

real property, which must include, without limitation:

          (1) Land and land identification;

          (2) Approaches to estimating the value of real

property;

          (3) Depreciation of real property; and

          (4) Mass appraisal; or

     (b) Principles and concepts of the appraisal of

personal property, which must include, without limitation:

          (1) Terminology;

          (2) Approaches to estimating the value of

personal property;

          (3) Depreciation of personal property; and

          (4) Analysis of financial data.

     4.  To pass the appraiser’s certificate

examination, an applicant must receive a score of at least 70 percent on each

section. The Department will mail to an applicant the results of his or her

examination within 14 days after the applicant completes the examination.

     5.  An applicant will be given credit for

each section of the examination that he or she passes. If an applicant passes

only one section of the examination, the applicant may make a written request

to the Department to retake the section that he or she did not pass.

     6.  An applicant who fails a section of the

examination may request information from the Department concerning the general

subject areas in that section which the applicant answered incorrectly. An

applicant is not entitled to review his or her completed examination booklet or

answer sheet after it is submitted for grading.

     7.  An applicant must direct any challenge to

the content of the examination or to the validity and correctness of any

question or answer to the Board. The challenge must be in writing and be

postmarked not later than 10 calendar days after the receipt by the applicant

of the results of the examination. The Board will not consider challenges

containing mere statements of conclusion, belief or preference.

     8.  The Department, in consultation with the

Board, may revise and update the examination at any time. The revising and

updating of the examination may be performed by the personnel of the

Department, or the Department may contract with a natural person or entity that

specializes in the development of such examinations to revise and update the

examination.

     9.  An applicant must submit to the

Department a fee of $25 for each section of the examination that the applicant

wishes to take or retake.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.565  Continuing education: Review and approval of courses; list of

approved courses. (NRS 360.090, 361.221, 361.223)

     1.  The Board will review courses of

continuing education and may recommend the approval of such a course by the

Department if the Board determines that:

     (a) After evaluating the contents of the course for

correctness, applicability to appraisal for property tax purposes and relevance

to current issues and trends concerning appraisal, the subject matter of the

course is relevant to understanding and applying the standards established by

the International Association of Assessing Officers or any other member

organization of the Appraisal Foundation;

     (b) The subject matter of the course is relevant to

understanding:

          (1) The application of the statutes and

regulations of this State;

          (2) The published appraisal and assessment

standards of the Department;

          (3) Laws relating to real estate, water and

mining; or

          (4) Administrative procedures;

     (c) The subject matter of the course is relevant to

understanding the concepts and applications of mass appraisal, including,

without limitation, the application of technology such as geographic

information systems (GIS) mapping and computer automated mass appraisal

systems; or

     (d) The subject matter of the course is relevant to

understanding the concepts and applications of the appraisal of centrally

assessed properties, including, without limitation, principles of accounting

and finance.

     2.  A person who wishes to receive contact

hours for a course of continuing education that has not been approved by the

Department must apply to the Department for such approval before taking the

course. The application must be in writing and include, without limitation, the

name and address of the organization that is sponsoring the course, a list of

the instructors of the course and their qualifications, and a syllabus of the

course that indicates the coursework and the books to be used in the course.

     3.  The Department will provide a list of all

approved educational courses to the assessor of each county, and may provide

the list to any other person who requests it in writing. The Department will

update the list at least every 3 years.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.567  Continuing education: Credit; documentation; waiver of and

failure to satisfy requirements. (NRS 360.090, 361.221, 361.223)

     1.  The Department, in consultation with the

Board, will determine the appropriate number of contact hours to be awarded for

each approved education course. The Department will award the appropriate

number of contact hours to persons who complete approved education courses and

provide documentation to the Department as required by subsection 2. Unless

otherwise noted on the certificate of completion for an approved course of

education, contact hours may be awarded as follows:

     (a) If a person completes an approved education

course that consists of 4 days of instruction or less, the Department may award

the person 8 contact hours for each day of the course.

     (b) If a person completes an approved education

course that consists of 4 days of instruction and an examination on the fifth

day, the Department may award the person 36 contact hours.

     (c) If a person completes an approved education

course that consists of 5 days of instruction the first week and 4 1/2 days of

instruction the second week, the Department may award the person 76 contact

hours.

     (d) If a person completes an approved education

course offered by a university or community college, the Department may award

the person 12 contact hours for each semester credit earned.

     (e) If an approved education course includes an

examination for the course and a person completes the instruction for the

course but fails to pass the examination, the Department may award the person

one-half of the contact hours that the person would have been awarded had he or

she passed the examination. If the person did not complete the instruction for

the course, the Department may award the person 4 contact hours for each full

day of instruction that he or she completed if the person provides evidence satisfactory

to the Department of his or her attendance at the course. If a person who is

awarded contact hours pursuant to this paragraph subsequently passes the

examination for the course, the Department may award the person a number of

contact hours equal to the total contact hours approved for the course minus

contact hours previously awarded to the person for the course pursuant to this

paragraph.

     (f) The Department will not award any contact hours

for the completion of any portion of a course in real estate or the appraisal

of property if the primary objective of the course is to prepare those persons

taking the course to take and pass an examination for licensure in real estate

or the appraisal of property.

     (g) The Department will not award any contact hours

for any portion of a course at a university or community college if the person

taking the course does not earn a passing grade or withdraws from the course.

     (h) If a person instructs an approved education

course, the Department may award the person a number of contact hours equal to

the number of hours the person spent lecturing during the course or teaching as

part of a group. The Department will not award contact hours:

          (1) For any time the person spent on preparing

for the course, grading students, or assisting students on projects or

assignments outside of class; or

          (2) For teaching the same course more than

once in a 12-month period.

     2.  A person who holds an appraiser’s

certificate and for whom the annual training requirement has not been waived

pursuant to NRS 361.223 shall,

on or before July 1 of each year, provide written documentation to the

Department of each approved education course the person has taken, and the total

contact hours he or she has earned, since July 1 of the previous year. The

documentation for each course must include, without limitation, a certificate

of attendance that shows the name of the person, the name of the course, the

signature of the instructor of the course or the authorized representative of

the organization that sponsored the course, and the dates of the person’s

attendance at the course. A transcript of grades, if any, from the organization

that sponsored the course must also be submitted. If the course was taken at a

university or community college, a certified transcript may be submitted in

lieu of a certificate of attendance.

     3.  The Department, in consultation with the

Board, may consider granting a person full credit towards the annual training

requirement of 36 contact hours set forth in NRS 361.223 for approved education

courses previously taken if:

     (a) The person makes a request to the Department

for such credit;

     (b) At least 3 years have elapsed since the person

last attended the course;

     (c) The person has not previously received contact

hours for the course; and

     (d) No other training is available to enable the

person to comply with the annual training requirement of 36 contact hours.

     4.  To qualify for a waiver of the annual

training requirement pursuant to paragraph (b) of subsection 2 of NRS 361.223, a person who holds an

appraiser’s certificate must complete as part of the 180 contact hours of

accepted training required by that paragraph at least 4 hours of training in

ethical and professional standards.

     5.  If a person for whom the annual training

requirement has been waived pursuant to NRS 361.223 accumulates more than

36 contact hours during any 5-year period thereafter, the excess contact hours

will not be carried forward.

     6.  The Department will notify each person

who holds an appraiser’s certificate and who has not satisfied the continuing

education requirements for a fiscal year or a 5-year period, as applicable,

that the appraiser’s certificate is subject to suspension or revocation

pursuant to NRS 361.224. The

notice will be sent by United States mail at least 60 days before the end of

the fiscal year or 5-year period to the address of the person as listed in the

files of the Department. If the Department does not receive a response to the

notice within 30 days after mailing, the Department will forward the matter to

the Board for consideration at its next regularly scheduled meeting. The Board

will review the matter and provide its recommendation to the Department

concerning whether the appraiser’s certificate should be suspended or revoked.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.569  Continuing education: Maintenance and availability of records. (NRS 360.090,

361.221, 361.223)

     1.  The Department will maintain current

records of continuing education for each person employed as an appraiser by

this State or a political subdivision of this State.

     2.  The Department will maintain for not less

than 10 years records of continuing education for each independent contractor

and each person formerly employed as an appraiser by this State or a political

subdivision of this State.

     3.  The records of continuing education for

each person are confidential and must not be made available to any person other

than the staff of the Department, the members of the Board or the employer of

the person to whom the records pertain, unless the person to whom the records

pertain has provided prior written authorization to the Department.

     4.  A person may request in writing a copy of

the transcript of his or her records of continuing education. The Department

will provide such a transcript at no charge.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.571  Suspension and reinstatement of appraiser’s certificate. (NRS 360.090,

361.221, 361.2226, 361.224)

     1.  The Department may suspend the

appraiser’s certificate of a person under any of the following circumstances:

     (a) Upon the recommendation of the Board if the

person fails to satisfy the requirements for continuing education set forth in

this chapter and NRS 361.223.

The Department may, upon the recommendation of the Board, reinstate the

appraiser’s certificate if the person subsequently satisfies the requirements

for continuing education.

     (b) Upon the recommendation of the Board if the

person is an independent contractor and the person fails to renew his or her

appraiser’s certificate annually as required by this chapter. The Department

may, upon the recommendation of the Board, reinstate the appraiser’s

certificate if the person subsequently satisfies the requirements for renewing

his or her appraiser’s certificate.

     (c) In accordance with the provisions of subsection

1 of NRS 361.2226. The

Department may reinstate the appraiser’s certificate in accordance with the

provisions of subsection 2 of NRS

361.2226.

     2.  The Board may not recommend the

suspension of an appraiser’s certificate except after a meeting noticed in

accordance with NRS 241.034.

     3.  A person whose appraiser’s certificate is

suspended by the Department shall not render an opinion concerning the value of

property but may collect data for use by certified appraisers to establish

value.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.573  Revocation and reinstatement of appraiser’s certificate;

reapplication after revocation. (NRS 360.090, 361.221, 361.224)

     1.  The Department may, upon the

recommendation of the Board, revoke the appraiser’s certificate of a person

under any of the following circumstances:

     (a) The person fails to satisfy the requirements

for continuing education set forth in this chapter and NRS 361.223. The Department may,

upon the recommendation of the Board, reinstate the appraiser’s certificate if

the person subsequently satisfies the requirements for continuing education and

passes the appraiser’s certificate examination.

     (b) The person is an independent contractor and the

person fails to renew his or her appraiser’s certificate annually as required

by this chapter. The Department may, upon the recommendation of the Board,

reinstate the appraiser’s certificate if the person subsequently satisfies the

requirements for renewing his or her appraiser’s certificate and passes the

appraiser’s certificate examination.

     (c) The person’s appraiser’s certificate has been

suspended for a period of more than 1 year. The Department may, upon the

recommendation of the Board, reinstate the appraiser’s certificate if the

person passes the appraiser’s certificate examination.

     (d) The person engages in unethical professional

conduct, including, without limitation:

          (1) Making oral or written public statements

in the course of performing duties as an appraiser that are untrue or intended

to mislead or deceive the public.

          (2) Engaging in activities relating to the

appraisal or assessment of property if the person has, or may reasonably be

considered by the public as having, a conflict of interest with regard to that

property.

          (3) Accepting assignments relating to the

appraisal or assessment of property which are contingent on or influenced by

any condition that could impair the objectivity of the person.

          (4) Failing to perform the duties of an

appraiser in accordance with applicable statutes and regulations.

     2.  If the appraiser’s certificate of a

person is revoked pursuant to paragraph (d) of subsection 1:

     (a) The Department will not accept or review an

application for an appraiser’s certificate from that person within 3 years

after the date of the revocation.

     (b) If the person files an application for an

appraiser’s certificate after the expiration of the 3-year period, the

applicant must:

          (1) Provide the Department with the resume of

the applicant which documents his or her education, his or her experience as an

appraiser and any professional designations or certificates he or she holds,

and which contains the names of at least two personal references. The

Department may investigate the truthfulness of the information and

representations set forth in the resume.

          (2) Pass the appraiser’s certificate

examination.

     (c) The Board may recommend that the application

for an appraiser’s certificate filed by the person pursuant to paragraph (b) be

approved if the Board finds that the person has satisfied the requirements of

paragraph (b) and that the person has not engaged in unethical professional

conduct as described in paragraph (d) of subsection 1 at any time since the

revocation of his or her appraiser’s certificate.

     3.  The Board may not recommend the

revocation of an appraiser’s certificate except after a meeting noticed in

accordance with NRS 241.034.

     4.  A person whose appraiser’s certificate is

revoked by the Department shall not render an opinion concerning the value of

property but may collect data for use by certified appraisers to establish

value.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

      NAC 361.575  Appeal of suspension or revocation of appraiser’s certificate. (NRS 360.090,

361.221)  A

decision of the Department to suspend or revoke an appraiser’s certificate may

be appealed to the Commission pursuant to the provisions of NRS 360.245.

     (Added to NAC by Tax Comm’n by R028-03, eff. 12-4-2003)

EQUALIZATION OF ASSESSMENTS AMONG THE SEVERAL COUNTIES

      NAC 361.580  Ratio study. (NRS 360.090, 361.333)  Classes of properties

sampled by the Department in conducting a ratio study pursuant to NRS 361.333 will be established and

divided as the Department deems appropriate or as required by state or federal

law. In addition to the criteria which NRS 361.333 specifies to be

included in a ratio study, the Department will include the coefficient of

dispersion.

     [Tax Comm’n, Property Tax Reg. No. 12, eff. 12-8-76

(see also 1-10-77); A 10-15-81]

COLLECTION OF TAXES

Collection on Certain Vehicles

      NAC 361.585  Placement of stickers on mobile homes and campers. (NRS 360.090,

361.5643)  The

sticker required pursuant to NRS

361.5643 must be affixed to:

     1.  A mobile home in such a way that the

sticker is clearly visible from the street. If a mobile home is assessed as real

property, the county assessor is not required to issue a sticker for it.

     2.  A slide-in camper or a camper shell in

such a way that the sticker is clearly visible from the rear of the vehicle.

     [Tax Comm’n, Property Tax Reg. No. 4, eff. 10-15-81]—(NAC

A 10-10-83)—(Substituted in revision for NAC 361.600)

Delinquent Payments

      NAC 361.590  Waiver or reduction of penalty or interest. (NRS 360.090,

360.419)

     1.  The Department may waive or reduce the

penalty or interest for a delinquent payment of property tax which is imposed

pursuant to NRS 361.483 and 361.535 if it finds that the

proximate cause of the delinquent payment was:

     (a) Circumstances completely beyond the control of

the taxpayer who was required to make the payment, or the agent of the taxpayer;

     (b) Justifiable neglect or justifiable

inadvertence, and that the taxpayer making the payment has no history of

habitually delinquent payments; or

     (c) For other good cause shown.

     2.  Any application for waiver or reduction

of the penalty or interest for delinquent payment must be filed in writing

under oath with the Department within 60 days after the date the tax is due

setting forth the circumstances which caused the delinquent payment. The

Department shall provide a copy of the application to the county tax receiver

who may, within 15 days, submit relevant information regarding the application

to the Department. The Department will provide notice to the tax receiver and

the taxpayer, or the agent of the taxpayer, of its determination. The notice

will specify any action that the Department has directed must be taken.

     3.  In determining whether or not the

circumstances which caused the delinquent payment in any particular case were

completely beyond the control of the taxpayer required to make the payment, or

the agent of the taxpayer, the Department shall consider only evidence which

shows that the delinquent payment was proximately caused by fire, earthquake,

flood or other acts of God, theft or similar causes not directly related to the

actions of the taxpayer who was required to make the payment, or the agent of

the taxpayer, whether intentional or not, and that the tax was paid as soon as

reasonably possible thereafter. In these circumstances, all of the penalty or

interest, or both, will be waived.

     4.  If the Department finds that the

proximate cause of a delinquent payment was justifiable neglect or justifiable

inadvertence, and that the tax was paid as soon as reasonably possible

thereafter, the penalty or interest imposed for the delinquent payment will be

reduced to a total of not more than 50 percent of the penalty or interest

imposed.

     5.  In determining whether the proximate

cause of the delinquent payment was for other good cause shown, the Department

will require the taxpayer to submit, without limitation, evidence that the tax

was paid as soon as reasonably possible and that the assessment of penalties

and interest:

     (a) Constitutes an extreme financial hardship; or

     (b) Is extremely unfair or extremely inequitable

under the circumstances.

     6.  As used in this section, “extreme

financial hardship” means that the taxpayer who owes the tax has the present

ability to pay the tax but payment of the penalties and interest will render

the taxpayer insolvent.

     (Added to NAC by Tax Comm’n, eff. 9-6-96)—(Substituted

in revision for NAC 361.610)

Assignment of Tax Liens by County Treasurers

      NAC 361.595  Definitions. (NRS 360.090, 360.250)  As used in NAC 361.595 to 361.597,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.5952 to 361.5959,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5952  “Assignee” defined. (NRS 360.090, 360.250)  “Assignee” has the meaning

ascribed to it in NRS 361.7307.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5954  “Delinquent taxes” defined. (NRS 360.090, 360.250)  “Delinquent taxes” means

any real property taxes that remain unpaid after the date the last installment

of the taxes becomes due pursuant to NRS

361.483.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5956  “Parcel number” defined. (NRS 360.090, 360.250)  “Parcel number” means the

parcel number assigned to a parcel of real property pursuant to NRS 361.189 by the county assessor

of the county in which the property is located.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5958  “Tax lien” defined. (NRS 360.090, 360.250)  “Tax lien” has the meaning

ascribed to it in NRS 361.731.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5959  “Tax year” defined. (NRS 360.090, 360.250)  “Tax year” means the

12-month period beginning on July 1 and ending on the next succeeding June 30.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.596  Affidavit of authorization. (NRS 360.090, 360.250)

     1.  An owner of a parcel of real property who

wishes to authorize the county treasurer of the county in which the property is

located to assign a tax lien on the property pursuant to NRS 361.7311, must file with the

county treasurer an affidavit of authorization as provided in this section.

     2.  If the property is owned by more than one

person:

     (a) Each such person must join in the affidavit of

authorization and the separate written agreement with the assignee required by

subsection 2 of NRS 361.7311.

     (b) The affidavit of authorization must designate

one of the owners or an authorized agent of the owners to:

          (1) Respond to any inquiry from the county

treasurer relating to the assignment; and

          (2) Receive any notice given by the county

treasurer pursuant to NAC 361.5964.

     3.  The affidavit of authorization must be

made on a form approved by the Commission, comply with the requirements of

subsection 3 of NRS 247.110 and

include:

     (a) The name, mailing address, electronic mail

address and daytime telephone number of the owner or an authorized agent of the

owner;

     (b) The name, mailing address, electronic mail

address and daytime telephone number of the assignee;

     (c) The legal description of the property and, if

the description is by metes and bounds, the name and address of the entity or

natural person who prepared the description;

     (d) The street address, if applicable, and parcel

number of the property;

     (e) The total amount of all delinquent taxes

assessed and owed against the property for any preceding tax year;

     (f) If any installment of the taxes assessed

against the property for the current tax year has not been paid, the total

amount of the taxes assessed against the property for the current tax year,

including, without limitation, the amount of any installment that has not yet

become due;

     (g) The amount of any applicable penalties,

interest, fees and costs as of the date of the affidavit;

     (h) If a certificate has been issued to the county

treasurer with respect to the property pursuant to NRS 361.570, any other amount

required to be paid pursuant to subsection 4 of that section and not otherwise

described in paragraph (e), (f) or (g) of this subsection;

     (i) Each preceding tax year for which delinquent

taxes are owed and, if any installment of the taxes assessed against the property

for the current tax year has not been paid, the current tax year;

     (j) A statement that neither the owner nor the

property is the subject of a pending proceeding in bankruptcy;

     (k) A statement authorizing the assignee to pay:

          (1) All delinquent taxes assessed and owed

against the property for any preceding tax year;

          (2) If any installment of the taxes assessed

against the property for the current tax year has not been paid, the total

amount of the taxes assessed against the property for the current tax year,

including, without limitation, the amount of any installment that has not yet

become due;

          (3) Any applicable penalties, interest, fees

and costs imposed by any local taxing entity or its agent for each tax year

specified in the affidavit; and

          (4) If a certificate has been issued to the

county treasurer with respect to the property pursuant to NRS 361.570, any other amount

required to be paid pursuant to subsection 4 of that section and not otherwise

described in subparagraph (1), (2) or (3) of this paragraph;

     (l) If the property is owned by more than one

person, a statement that each such person has joined in the affidavit of

authorization and the separate written agreement with the assignee required by

subsection 2 of NRS 361.7311;

     (m) A statement authorizing the county treasurer:

          (1) To certify that payment has been tendered

on behalf of the owner of:

               (I) All delinquent taxes assessed and

owed against the property for any preceding tax year;

               (II) If any installment of the taxes

assessed against the property for the current tax year has not been paid, the

total amount of the taxes assessed against the property for the current tax

year, including, without limitation, the amount of any installment that has not

yet become due;

               (III) Any applicable penalties, interest,

fees and costs; and

               (IV) If a certificate has been issued to

the county treasurer with respect to the property pursuant to NRS 361.570, any other amount

required to be paid pursuant to subsection 4 of that section and not otherwise

described in sub-subparagraph (I), (II) or (III) of this subparagraph; and

          (2) To assign the tax lien on the property to

the assignee; and

     (n) The signature of the owner, acknowledged before

a notary public.

     4.  The affidavit of authorization must be

accompanied by a copy of the separate written agreement between the owner and

the assignee required by subsection 2 of NRS 361.7311.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5962  Duties of county treasurer upon receipt of affidavit of authorization;

affidavit of compliance; affidavit of exemption. (NRS 360.090,

360.250)

     1.  Upon receipt of an affidavit of authorization

pursuant to NAC 361.596, the county treasurer shall

confirm:

     (a) The last known owner or owners of record of the

parcel of real property for which the affidavit is made, by inspecting:

          (1) The records of the county assessor of the

county in which the property is located; or

          (2) Any other recorded document provided by

the owner and acceptable to the county assessor;

     (b) The parcel number of the property and whether

the property is on the secured or unsecured tax roll, by inspecting the records

of the county assessor;

     (c) Whether any taxes assessed against the property

or any applicable penalties, interest, fees or costs are owed for a tax year

not specified in the affidavit of authorization;

     (d) That the assignee has complied with the bonding

requirements of NRS 361.7314 or

is exempt from those requirements; and

     (e) That the assignee has tendered the full amount

of:

          (1) All delinquent taxes assessed and owed

against the property for any preceding tax year;

          (2) If any installment of the taxes assessed

against the property for the current tax year has not been paid, the total

amount of the taxes assessed against the property for the current tax year,

including, without limitation, the amount of any installment that has not yet

become due;

          (3) Any applicable penalties, interest, fees

and costs; and

          (4) If a certificate has been issued to the

county treasurer with respect to the property pursuant to NRS 361.570, any other amount

required to be paid pursuant to subsection 4 of that section and not otherwise

described in subparagraph (1), (2) or (3) of this paragraph.

     2.  For any assignee who is not exempt from

the bonding requirements of NRS

361.7314, the county treasurer may consider any reliable evidence that the

assignee has complied with those requirements, including, without limitation:

     (a) A copy of the bond posted by the assignee,

certified by the surety or custodian of the bond to be a true and correct copy

of the bond currently in force; or

     (b) An affidavit of the assignee or an authorized

representative of the assignee, filed with the county treasurer and attesting

to compliance by the assignee with NRS

361.7314.

     3.  An affidavit of compliance filed pursuant

to subsection 2 must be made on a form approved by the Commission, comply with

the requirements of subsection 3 of NRS

247.110 and include:

     (a) The name, mailing address and electronic mail

address of the assignee;

     (b) If the affidavit is made by an authorized

representative of the assignee, the name and job title of the affiant;

     (c) A statement that the affiant is of sound mind,

competent to make the affidavit, and that the statements in the affidavit are

based on the affiant’s personal knowledge of the records of the assignee;

     (d) A statement that the assignee has posted and

maintains a bond meeting the requirements of NRS 361.7314;

     (e) A statement that true and correct copies of the

bond and the annual statement most recently filed with the Secretary of State

pursuant to NRS 361.7314 are

attached to the affidavit; and

     (f) The signature of the affiant, acknowledged

before a notary public.

     4.  An affidavit of compliance filed pursuant

to subsection 2 must be accompanied by copies of the bond posted by the

assignee and the annual statement most recently filed with the Secretary of

State pursuant to NRS 361.7314.

     5.  An assignee who claims to be exempt from

the requirements of NRS 361.7314

because of a familial relationship with the owner must make and file with the

county treasurer an affidavit of exemption. The affidavit of exemption must be

made on a form approved by the Commission, comply with the requirements of

subsection 3 of NRS 247.110 and

include:

     (a) The name, mailing address, electronic mail

address and daytime telephone number of the assignee;

     (b) A statement that the assignee is exempt from

the requirements of NRS 361.7314

because of the assignee’s familial relationship with the owner;

     (c) A statement of the nature of the relationship,

showing that the assignee is related to the owner within the third degree of

consanguinity;

     (d) A statement that the assignee is of sound mind,

competent to make the affidavit and that the statements in the affidavit are

based on personal knowledge; and

     (e) The signature of the assignee, acknowledged

before a notary public.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5964  Denial of certificate of assignment. (NRS 360.090,

360.250)

     1.  The county treasurer shall not issue a

certificate of assignment of a tax lien if the county treasurer:

     (a) Believes that any information included in the

affidavit of authorization filed pursuant to NAC

361.596 is inaccurate or incomplete;

     (b) Determines that the property is on the

unsecured tax roll;

     (c) Except as otherwise ordered by the federal

bankruptcy court in which the proceeding is pending, determines that an owner

of the property or the property itself is the subject of a pending proceeding

in bankruptcy;

     (d) Determines that any taxes assessed against the

property or any applicable penalties, interest, fees or costs are owed for a

tax year not specified in the affidavit of authorization;

     (e) Determines that the assignee has failed to

tender any part of the amount required to be tendered pursuant to NRS 361.7312 and NAC 361.5962; or

     (f) Determines that an owner of the property or the

assignee has not complied with any requirement of:

          (1) NRS

361.7303 to 361.733,

inclusive; or

          (2) NAC 361.595 to

361.597, inclusive.

     2.  If, pursuant to subsection 1, the county

treasurer is unable to issue a certificate of assignment, he or she shall give

written notice of that fact to the assignee and:

     (a) The owner of the property; or

     (b) If the provisions of subsection 2 of NAC 361.596 are applicable, the owner or authorized

agent designated pursuant to that subsection.

     3.  The notice given pursuant to subsection 2

must:

     (a) State the reason for the inability of the

county treasurer to issue the certificate;

     (b) Describe any additional document or information

or state the amount of any additional payment required to approve the

assignment and state the date by which, pursuant to subsection 4, the document,

information or payment must be received by the county treasurer; and

     (c) Be sent by first-class mail to the owner and

assignee at the mailing addresses set forth in the affidavit of authorization.

     4.  If notice is given by the county

treasurer as provided in subsections 2 and 3 and the county treasurer does not,

within 30 days after the date of the notice, receive from the owner or

assignee:

     (a) The additional document, information or payment

required to approve the assignment; or

     (b) Any other evidence sufficient to show that the

assignment complies with the requirements of NRS 361.7303 to 361.733, inclusive, and NAC 361.595 to 361.597,

inclusive,

Ê as

applicable, the assignment shall be deemed to be denied. The county treasurer

shall give written notice of the denial in the manner provided for a notice

given pursuant to subsection 2 and return to the assignee the documents

received from the assignee and the payment tendered by the assignee.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5966  Issuance of certificate of assignment. (NRS 360.090,

360.250)

     1.  If the assignment complies with the

requirements of NRS 361.7303 to

361.733, inclusive, and NAC 361.595 to 361.597,

inclusive, the county treasurer shall promptly issue a certificate of

assignment of the tax lien to the assignee.

     2.  The certificate of assignment must be on

a form approved by the Commission and must include, in addition to the

information required by NRS

361.7318:

     (a) The name, mailing address and electronic mail

address of the assignee;

     (b) The parcel number of the property;

     (c) The street address of the property, if

applicable;

     (d) The full amount of:

          (1) All delinquent taxes assessed and owed

against the property for any preceding tax year;

          (2) If any installment of the taxes assessed

against the property for the current tax year has not been paid, the total

amount of the taxes assessed against the property for the current tax year,

including, without limitation, the amount of any installment that has not yet

become due;

          (3) Any applicable penalties, interest, fees

and costs; and

          (4) If a certificate has been issued to the

county treasurer with respect to the property pursuant to NRS 361.570, any other amount

required to be paid pursuant to subsection 4 of that section and not otherwise

described in subparagraph (1), (2) or (3) of this paragraph;

     (e) A statement certifying that the assignee has

paid the amount described in paragraph (d);

     (f) A statement that the county treasurer has duly

received:

          (1) An affidavit of authorization made by the

owner of the property;

          (2) A copy of the separate written agreement

between the owner and the assignee; and

          (3) A copy of the bond posted by the assignee,

affidavit of compliance or affidavit of exemption, as applicable,

Ê and that a

true and correct copy of each document so received is attached as an exhibit to

the certificate; and

     (g) A statement that in consideration of the receipt

of the payment in full of the amount described in paragraph (d), the tax lien

is assigned and transferred to the assignee.

     3.  A true and correct copy of each of the

documents described in paragraph (f) of subsection 2 and received by the county

treasurer must be attached as an exhibit to the certificate.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.5968  Effect of certificate of assignment. (NRS 360.090,

360.250)  A

certificate of assignment of a tax lien does not:

     1.  Entitle the assignee to the assignment of

a tax lien for any tax year not enumerated in the affidavit of authorization;

     2.  Change the date upon which any unpaid

taxes become delinquent; or

     3.  If taxes assessed against the property or

any applicable penalties, interest, fees and costs are not paid:

     (a) Affect the duty of the county treasurer to:

          (1) Mail notice of the delinquency pursuant to

NRS 361.5648; or

          (2) Issue a certificate to the county

treasurer as trustee pursuant to NRS

361.570; or

     (b) Change the period of redemption provided by NRS 361.570.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

      NAC 361.597  Release of tax lien after assignment. (NRS 360.090,

360.250)  A

release of a tax lien issued by an assignee to the owner of the property must

be made on a form approved by the Commission, comply with the requirements of

subsection 3 of NRS 247.110 and

include, in addition to the information required by NRS 361.7326:

     1.  The name and mailing address of the

assignee;

     2.  The name and mailing address of the

owner;

     3.  The date of issuance of the release;

     4.  The street address of the property, if

applicable;

     5.  The name and address of the entity or

natural person who prepared the legal description of the property, if the

description is by metes and bounds;

     6.  A statement that all right, title and

interest of the assignee in the tax lien are released; and

     7.  The signature of the assignee or a

representative of the assignee, acknowledged before a notary public.

     (Added to NAC by Tax Comm’n by R075-13, eff. 12-23-2013)

PARTIAL ABATEMENT OF TAXES

General Abatement, Primary Residential Abatement and

Residential Rental Abatement

      NAC 361.601  Definitions. (NRS 360.090)  As used

in NAC 361.601 to 361.609,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.6015 to 361.6045,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6015  “Abatement percentage” defined. (NRS 360.090)  “Abatement

percentage” has the meaning ascribed to it in NRS 361.4711.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.602  “County tax receiver” defined. (NRS 360.090)  “County

tax receiver” means the county official who collects property taxes.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6025  “General abatement” defined. (NRS 360.090)  “General

abatement” means a partial abatement of property taxes pursuant to NRS 361.4722.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.603  “Primary residence of the owner” defined. (NRS 360.090)  “Primary

residence of the owner” has the meaning ascribed to it in NRS 361.4723.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6035  “Primary residential abatement” defined. (NRS 360.090)  “Primary

residential abatement” means a partial abatement of property taxes pursuant to NRS 361.4723.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.604  “Residential rental abatement” defined. (NRS 360.090)  “Residential

rental abatement” means a partial abatement of property taxes pursuant to NRS 361.4724.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6045  “Single-family residence” defined. (NRS 360.090)  “Single-family

residence” has the meaning ascribed to it in NRS 361.4723.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.605  General responsibilities of Department. (NRS 360.090,

361.4722)

     1.  The Department shall:

     (a) Determine the appropriate abatement percentage

for the application of a general abatement in each county each year and provide

that information to the appropriate county tax receiver.

     (b) Determine whether any property of an interstate

or intercounty nature is:

          (1) Eligible for a general abatement; or

          (2) Ineligible for a general abatement,

Ê and calculate

and apply the appropriate amount of any general abatement to which the property

is determined to be eligible.

     (c) Determine whether any property valued pursuant

to paragraph (b) of subsection 1 of NRS

362.100 is:

          (1) Eligible for a general abatement; or

          (2) Ineligible for a general abatement,

Ê and provide

that information to the county assessor of the county in which the property is

located.

     2.  If the Department determines that:

     (a) Any property of an interstate or intercounty

nature has been erroneously designated as eligible for a general abatement, the

Department may appropriately revise that designation and transmit an

appropriately revised tax bill to the taxpayer.

     (b) Any property valued pursuant to paragraph (b)

of subsection 1 of NRS 362.100

has been erroneously designated as eligible for a general abatement, the

Department may appropriately revise that designation and the county tax

receiver may transmit an appropriately revised tax bill to the taxpayer.

Ê If a change

in the designation of any property pursuant to this subsection results in an

increase in the liability of the taxpayer for property taxes, the Department

shall inform the taxpayer of the change in the designation of the property and

the reasons for that change.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6055  General responsibilities of county assessors and county tax

receivers. (NRS 360.090, 361.4722, 361.4723, 361.4724)

     1.  A county assessor shall:

     (a) Receive claims for primary residential

abatements and residential rental abatements and identify each parcel or other

taxable unit of property for which such a claim is received; and

     (b) Before delivering the tax roll to the county

tax receiver each year, determine whether each parcel or other taxable unit of

property designated on the tax roll is:

          (1) Eligible for a primary residential

abatement;

          (2) Eligible for a residential rental

abatement;

          (3) Eligible for a general abatement; or

          (4) Ineligible for any of those partial

abatements of property taxes.

     2.  A county assessor:

     (a) Except as otherwise provided in NRS 361.773, may correct the tax

roll not later than June 30 of each year to indicate that a parcel or other

taxable unit of property is eligible for a primary residential abatement, a

residential rental abatement or a general abatement for that year.

     (b) Shall notify the county tax receiver of each

claim for a primary residential abatement or residential rental abatement for

the current year which the county assessor receives after the tax roll has been

delivered to the county tax receiver. The county tax receiver shall process

such a claim for a primary residential abatement in accordance with NRS 361.773.

     3.  A county tax receiver shall calculate and

apply the appropriate amount of any:

     (a) Primary residential abatement or residential

rental abatement to which a parcel or other taxable unit of property is determined

to be eligible; and

     (b) General abatement, in accordance with the

applicable abatement percentage provided by the Department pursuant to NAC 361.605, to which a parcel or other taxable unit

of property is determined to be eligible.

     4.  If a county assessor or county tax

receiver determines that a parcel or other taxable unit of property has been

erroneously designated as eligible for a primary residential abatement, a

residential rental abatement or a general abatement, the county assessor may

appropriately revise that designation and the county tax receiver may transmit

an appropriately revised tax bill to the taxpayer. If a change in the

designation of any property pursuant to this subsection results in an increase

in the liability of the taxpayer for property taxes, the county assessor shall

inform the taxpayer of the change in the designation of the property and the

reasons for that change.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.606  Claim for primary residential abatement: Form and contents;

execution; action by county assessor; change in ownership or occupation of

property. (NRS 360.090, 361.4722, 361.4723)

     1.  A claim for a primary residential

abatement must be:

     (a) Submitted on a form provided by the county assessor

of the county in which the property is located; and

     (b) Signed by:

          (1) Any owner of record of the property;

          (2) Any person of lawful age who is authorized

by an executed power of attorney to sign the claim on behalf of an owner of

record of the property;

          (3) The legal guardian or conservator of an

owner of record of the property; or

          (4) The executor or administrator of the

estate of an owner of record of the property.

     2.  The form for claiming a primary

residential abatement may require the claimant to state that:

     (a) The claimant is the owner of the property;

     (b) The property is a single-family residence;

     (c) The property is the primary residence of the

owner of the property, exclusive of any other residence in Nevada;

     (d) The property is not rented, leased or otherwise

made available for exclusive occupancy by any person other than the owner of

the property and members of the family of the owner of the property;

     (e) The claimant agrees to notify the county

assessor if the property is no longer used as:

          (1) A single-family residence; or

          (2) The primary residence of the owner of the

property, exclusive of any other residence in Nevada; and

     (f) The claim is affirmed and certified by the

owner of the property under any penalties provided by law.

     3.  The county assessor shall:

     (a) If the county assessor determines it to be

necessary, verify whether the property is eligible for a primary residential

abatement.

     (b) If the county assessor determines that the

property is not eligible for a primary residential abatement, determine whether

the property is eligible for a general abatement.

     4.  A claim for a primary residential

abatement may be amended to reflect changes in the ownership or occupation of

the property. If such a change occurs after July 1, the change must not be

indicated on either the secured or unsecured tax roll, as applicable, until the

next fiscal year.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6065  Eligibility of certain property for primary residential

abatement; treatment of certain property used for multiple purposes. (NRS 360.090,

361.4722, 361.4723, 361.4724)

     1.  For the purpose of determining the

eligibility of property for a primary residential abatement:

     (a) A single-family residence which is the primary

residence of the owner shall be deemed to include any buildings or other

structures that are appurtenant to that residence, including, without

limitation, a detached garage, if the building or other structure:

          (1) Is of a type which is typically associated

with a single-family residence;

          (2) Exists for the use, enjoyment and benefit

of the occupants of the residence;

          (3) Is not used in furtherance of any

business, except for the operation of a home business as provided in paragraph

(a) of subsection 5 of NRS 361.4723;

and

          (4) Is not rented, leased or otherwise made

available for exclusive occupancy by any person other than the owner of the

residence and members of the family of the owner of the residence.

     (b) If a single-family residence which is the

primary residence of the owner, including all appurtenant buildings and other

structures described in paragraph (a), is located on:

          (1) More than one parcel of property; or

          (2) One or more parcels of property otherwise

used for agricultural purposes,

Ê that

residence may be treated as a separate taxable unit.

     2.  If a taxable unit of real property

contains both:

     (a) A single-family residence which is the primary

residence of the owner; and

     (b) Other property used for agricultural,

commercial or other purposes,

Ê the county

assessor may determine the separate portions of that taxable unit which are

respectively described in paragraphs (a) and (b), and apply to each such

portion any appropriate partial abatement from property taxes.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.607  Residential rental abatement: Duties of Department, county

assessor and owner of property; filing of claim and affidavit; eligibility of

property. (NRS 360.090, 361.4724)

     1.  A county assessor shall annually mail to

the owner of each residential rental dwelling in the county a written notice of

the right to claim a residential rental abatement.

     2.  A claim for a residential rental

abatement must be:

     (a) Filed annually with the county assessor of the

county in which the property is located not later than June 15 of each year;

and

     (b) Accompanied by an affidavit which states:

          (1) That the amount of rent collected from

each of the tenants of the property is equal to or less than the applicable

fair market rent published by the United States Department of Housing and Urban

Development. For the purpose of determining the applicable fair market rent, a

studio apartment must be considered to be a single room.

          (2) The greatest amount of rent charged a

tenant of the property for the period from April 1 of the year immediately

preceding the lien date for the current year until March 31 of the current

year.

     3.  The Department shall annually notify each

county assessor of:

     (a) The amounts of the applicable fair market rents

for the current year, as published for March 31 of that year by the Department

of Housing and Urban Development, excluding the amounts of utility allowances.

     (b) The amounts of applicable utility allowances,

based upon the information reported by the appropriate Nevada regional housing

authority to the Department of Housing and Urban Development.

     4.  For the purpose of determining the

eligibility of property for a residential rental abatement, the county assessor

shall compare:

     (a) The greatest amount of rent charged a tenant of

the property for the period from April 1 of the year immediately preceding the

lien date for the current year until March 31 of the current year, excluding

any amount paid for utilities; and

     (b) The amount of the applicable fair market rent

for the current year, as provided by the Department pursuant to subsection 3,

excluding the amount of the applicable utility allowance. For the purposes of

this section, the county assessor shall use as the applicable utility

allowance:

          (1) The typical utility allowance for the

pertinent category of property, as provided by the Department pursuant to

subsection 3; or

          (2) A utility allowance calculated by the

county assessor for the specific property from the information reported by the

appropriate Nevada regional housing authority to the Department of Housing and

Urban Development.

     5.  A residential rental dwelling is not

eligible for a residential rental abatement if the rent received for any rental

unit of the property for the period from April 1 of the year immediately

preceding the lien date for the current year until March 31 of the current

year, excluding any amount included in the rent for the payment of utilities,

exceeds the amount of the applicable fair market rent for the current year,

excluding the amount of the applicable utility allowance.

     6.  The owner of any property for which a

claim for a residential rental abatement is filed:

     (a) Has the burden of proving that the property is

not transient lodging; and

     (b) Must:

          (1) Provide to the county assessor such

information as the county assessor requires to determine the eligibility of the

property for a residential rental abatement and to ascertain the continuing

eligibility of the property for a residential rental abatement; and

          (2) Maintain accurate records in support of

that information and allow the county assessor to audit those records at any

time.

     7.  For the purposes of this section and NRS 361.4724, the Commission interprets

the term:

     (a) “Residential rental dwelling” to mean a

residential dwelling:

          (1) For which consideration is paid for its

temporary use and occupancy; or

          (2) Which is occupied by a member of the

family of the owner of the dwelling for no consideration.

     (b) “Transient lodging” to:

          (1) Mean, except as otherwise provided in

subparagraph (2), any facility or structure, or any portion thereof, which is

occupied or intended or designed for occupancy and which is held out for use by

transient guests who pay rent for the temporary privilege of dwelling, lodging

or sleeping therein. For the purposes of this subparagraph, “facility or

structure” includes any hotel, resort hotel, motel, bed and breakfast, lodging

house, time-share project, vacation home, apartment house, recreational vehicle

park or campground, and any similar facility or structure.

          (2) Exclude any:

               (I) Hospital, sanitarium, medical clinic,

convalescent home, nursing home, home for aged persons, foster home or similar

facility operated for the care or treatment of human beings;

               (II) Asylum, jail, prison, orphanage or

other facility in which human beings are detained and housed under legal

restraint; or

               (III) Housing owned or controlled by an

educational institution and used exclusively to house students, faculty or

other employees of the institution.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6075  General abatement: Taxable unit of centrally assessed property;

ineligible property of interstate or intercounty company. (NRS 360.090,

361.4722)

     1.  For the purposes of NRS 361.4722, the value of any

centrally assessed property which is allocated and apportioned to a taxing

district shall be deemed to constitute a taxable unit of real or personal

property in that taxing district.

     2.  Property of an interstate or intercounty

company valued pursuant to NRS

361.320 which is not eligible for a general abatement for the current year

includes, without limitation:

     (a) That portion of the unit valuation of such

property for which there was no allocation or apportionment within Nevada for

the immediately preceding year;

     (b) New property placed on the unsecured tax roll

and classified as construction work in progress; and

     (c) That portion of the unit valuation of such

property for which there is an increase in the cost indicator of value from the

immediately preceding year, unless it has already been reported to the

Department as construction work in progress and the taxpayer certifies that the

pertinent capital expenditures will be reported as part of construction work in

progress before being transferred to the accounting records of the company for

plant in service.

     3.  For the purposes of this section,

“construction work in progress” has the meaning ascribed to it in NAC 361.258.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.608  Calculation of amount of abatement: Applicable amount of tax levy

for immediately preceding year and current year. (NRS 360.090,

361.4722, 361.4723, 361.4724)  For the purpose of

calculating the amount of any general abatement, primary residential abatement

or residential rental abatement for the current year, the amount of the tax

levy that would have resulted for the immediately preceding year without the

application of any other tax abatements or exemptions must be compared to the

tax levy that would result for the current year without the application of any

other tax abatements or exemptions.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.6085  Calculation of amount of abatement: Property which escaped

taxation; effect of adjustment to valuation of property to correct certain

errors. (NRS 360.090, 361.4722, 361.4723, 361.4724)  For the purposes of NRS 361.4722, 361.4723 and 361.4724:

     1.  If any property is found pursuant to NRS 361.325, 361.767 or 361.769 to have partially or

entirely escaped taxation for a fiscal year:

     (a) The property shall be deemed to be property for

which no assessed valuation was separately established for the fiscal year

immediately preceding that fiscal year; and

     (b) Any general abatement, primary residential

abatement or residential rental abatement for which the property is eligible

for each fiscal year following the fiscal year for which the property escaped

taxation must be calculated as if the property had been on the tax roll for the

fiscal year for which the property escaped taxation.

     2.  If the valuation of any property is

adjusted pursuant to NRS 361.765

or 361.768 to correct a

clerical, typographical, mathematical or factual error, any general abatement,

primary residential abatement or residential rental abatement for which the

property is eligible for each fiscal year following the fiscal year for which

that correction of the valuation of the property is made must be calculated

and, if necessary, adjusted in conformity with the correct valuation of the

property.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

      NAC 361.609  Summary reports of property taxes billed on behalf of each taxing

entity. (NRS 360.090)  A county

tax receiver shall, not later than:

     1.  September 1 of each year, submit to the

Department and each taxing entity a summary report of the total amount of

property taxes billed on behalf of each taxing entity for the current tax year

for property on the secured tax roll. The report must separately state for each

taxing entity:

     (a) The total number of parcels or other taxable

units of property for which the property taxes were billed;

     (b) The total assessed value of the property for

which the property taxes were billed;

     (c) The total amount of the property taxes that would

have been billed if not for the application of any general abatement, primary

residential abatement or residential rental abatement;

     (d) The total amount of any reduction in billable

property taxes as a result of the application of any general abatement, primary

residential abatement or residential rental abatement;

     (e) The total amount of any reduction in billable

property taxes as a result of the application of any exemptions from taxation

other than a general abatement, a primary residential abatement or a

residential rental abatement;

     (f) The total amount of any taxes billed pursuant

to NRS 361.4725;

     (g) The total amount of any taxes exempted from

each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; and

     (h) The total amount of property taxes actually

billed.

     2.  June 1 of each year, submit to the

Department and each taxing entity a summary report of the total amount of

property taxes billed on behalf of each taxing entity for the current tax year

for property on the unsecured tax roll. The report must separately state for

each taxing entity:

     (a) The total assessed value of the property for

which the property taxes were billed;

     (b) The total amount of the property taxes that

would have been billed if not for the application of any general abatement,

primary residential abatement or residential rental abatement;

     (c) The total amount of any reduction in billable

property taxes as a result of the application of any general abatement, primary

residential abatement or residential rental abatement;

     (d) The total amount of any reduction in billable

property taxes as a result of the application of any exemptions from taxation

other than a general abatement, a primary residential abatement or a residential

rental abatement;

     (e) The total amount of any taxes billed pursuant

to NRS 361.4725;

     (f) The total amount of any taxes exempted from

each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; and

     (g) The total amount of property taxes actually

billed.

     (Added to NAC by Tax Comm’n by R011-06, eff. 5-4-2006)

Abatement for Remainder Parcels

      NAC 361.61002  Definitions. (NRS 360.090, 361.4722)  As used in NAC 361.61002 to 361.61038,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.61004 to 361.6103,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61004  “Abatement percentage” defined. (NRS 360.090, 361.4722)  “Abatement percentage”

means the percentage determined pursuant to paragraph (b) of subsection 2 of NRS 361.4722.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61006  “Agricultural use” defined. (NRS 360.090, 361.4722)  “Agricultural use” has the

meaning ascribed to it in NRS

361A.030.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61008  “Commercial or industrial use” defined. (NRS 360.090,

361.4722)  “Commercial

or industrial use” means any use:

     1.  Conducted primarily for profit, except

for any agricultural use, open-space use, residential use, institutional use,

recreational use or use as vacant land held for development; and

     2.  Any other use that does not constitute

any agricultural use, open-space use, residential use, institutional use,

recreational use or use as vacant land held for development.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.6101  “Current year” defined. (NRS 360.090, 361.4722)  “Current year” means the

fiscal year for which a determination of the application of the partial

abatement of taxes for any new parcel is being made.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61012  “Institutional use” defined. (NRS 360.090, 361.4722)  “Institutional use” means

any civic, charitable or religious use, including, without limitation, use as a

church, cemetery or hospital.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61014  “New parcel” defined. (NRS 360.090, 361.4722)  “New parcel” means a

parcel for which a new or different assessor parcel number has been assigned

from the prior year as a result of the division of any previously existing

parcel or parcels, the combination of any previously existing parcels, or any

change in the configuration of any parcels or of lot size or lot boundaries, by

means of a parcel map, subdivision map, certificate of land division, long-term

lease, action of any governmental entity or any other means.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61016  “New parcel for development” defined. (NRS 360.090,

361.4722)  “New

parcel for development” means each new parcel which is not eligible for the

partial abatement in the current year.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61018  “Open-space use” defined. (NRS 360.090, 361.4722)  “Open-space use” has the

meaning ascribed to it in NRS

361A.050.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.6102  “Partial abatement” defined. (NRS 360.090, 361.4722)  “Partial abatement” means

the partial abatement of taxes provided pursuant to subsection 2 of NRS 361.4722.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61022  “Prior year” defined. (NRS 360.090, 361.4722)  “Prior year” means the

fiscal year immediately preceding the current year.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61024  “Recreational use” defined. (NRS 360.090, 361.4722)  “Recreational use” means

any active or passive recreational use, including, without limitation, use as a

trail, park, community garden, playground or athletic field.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61026  “Remainder parcel” defined. (NRS 360.090, 361.4722)  “Remainder parcel” means

each new parcel which is eligible for the partial abatement in the current

year.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61028  “Residential use” defined. (NRS 360.090, 361.4722)  “Residential use” means

use as a dwelling or for personal, family or household purposes, whether rented

to particular persons or not, including, without limitation, use as a

single-family detached housing unit, townhouse, condominium unit, mobile home

or multifamily unit. The term includes the use of lots in a residential

subdivision for which a final map has been recorded and on which residential

improvements will be constructed, but does not include the use of parcels which

are not yet divided into individual residential lots by the filing of a final

map.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.6103  “Vacant land held for development” defined. (NRS 360.090,

361.4722)  “Vacant

land held for development” means land which is held for investment or future

development and has not previously been held for residential use, commercial or

industrial use, institutional use or recreational use.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61032  Scope and purpose. (NRS 360.090, 361.4722)  The provisions of NAC 361.61002 to 361.61038,

inclusive, set forth the methodology that must be followed to carry out the

provisions of subsection 2 of NRS

361.4722 in evaluating each new parcel for the purposes of applying the

partial abatement of taxes provided by that subsection.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61034  New parcels: Evaluation; determination of change in use; effect

of determination. (NRS 360.090, 361.4722)

     1.  Each new parcel must be separately

evaluated to determine whether there has been any change in the use of the

property that comprises the parcel.

     2.  A determination that there is a change in

the use of the property must be based on a finding that:

     (a) The property was being used as vacant land held

for development as of the commencement of the prior year and:

          (1) As the result of the recording of a

subdivision map creating individual lots for residential development, the

property is held for residential use as of the commencement of the current

year; or

          (2) As the result of new construction on the

parcel sufficient to allow for an identification of the use of the property,

the property is in agricultural use, open-space use, residential use,

commercial or industrial use, institutional use or recreational use as of the

commencement of the current year; or

     (b) The use of the property as of the commencement

of the current year for agricultural use, open-space use, residential use,

commercial or industrial use, institutional use or recreational use is

different from the use of the property as of the commencement of the prior

year.

     3.  If the use of the property:

     (a) Has not changed, the parcel is a remainder

parcel.

     (b) Has changed, the parcel is a new parcel for

development.

     4.  As used in this section, “use of the

property” means the principal use of the property for one of the following

purposes:

     (a) Agricultural use;

     (b) Open-space use;

     (c) Residential use;

     (d) Commercial or industrial use;

     (e) Institutional use;

     (f) Recreational use; or

     (g) Use as vacant land held for development.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61036  Calculation of amount of abatement and maximum amount of property

taxes. (NRS 360.090, 361.4722)

     1.  The partial abatement for a remainder

parcel must be calculated as follows:

     (a) Determine the amount of net property taxes

attributable to the land area of and any improvements to the remainder parcel

for the prior year as provided in NAC 361.61038.

     (b) Multiply the net property taxes determined in

accordance with subsection 1 by the abatement percentage applicable to the

remainder parcel for the current year.

     (c) Add the amounts determined pursuant to

paragraphs (a) and (b). If the sum is:

          (1) Less than the amount of taxes that would

have been assessed on the remainder parcel for the current year without the

abatement, the difference constitutes the amount of the partial abatement for

the remainder parcel for the current year.

          (2) Greater than or equal to the amount of

taxes that would have been assessed on the remainder parcel for the current

year without the abatement, then there is no partial abatement for the

remainder parcel for the current year.

     2.  The maximum amount of property taxes

which may be levied on a remainder parcel for the current year must be

calculated as follows:

     (a) Determine the amount of property taxes to be

added to the tax roll in the current year attributable to:

          (1) An incremental change in land value

resulting from a change in the actual or authorized use of the remainder

parcel; or

          (2) A new improvement to the remainder parcel,

Ê that would

not have been included in the calculation of the assessed value of the

remainder parcel for the prior year had a separate valuation for the remainder

parcel been established in the prior year.

     (b) Add the amounts determined pursuant to

paragraph (a) and paragraphs (a) and (b) of subsection 1 to determine that

maximum amount.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

      NAC 361.61038  Determination of amount of net property taxes attributable to

remainder parcel for prior year; appeal of determination. (NRS 360.090,

361.4722, 361.4734)

     1.  Except as otherwise provided in

subsection 2, the amount of net property taxes attributable to the land area of

and any improvements to a remainder parcel for the prior year must be

determined as follows:

     (a) Identify each of the parcels which contained

the land area of the remainder parcel in the prior year.

     (b) Determine the pro rata percentage that the

remainder parcel’s land and improvements contributed to the assessed value of

each of the parcels identified in paragraph (a) for the prior year.

     (c) Multiply the percentage determined in paragraph

(b) for each of the parcels identified in paragraph (a) by the total amount of

taxes levied, or which would have been levied but for any exemptions from

taxation, in the prior year on that parcel.

     (d) The amount of net property taxes attributable

to the remainder parcel for the prior year is the sum of the products

determined pursuant to paragraph (c) for each of the parcels identified in

paragraph (a).

     2.  The owner of a remainder parcel may

appeal to the Nevada Tax Commission pursuant to NRS 361.4734 and any regulations

adopted to carry out that section to show that the method prescribed in

subsection 1 produces an inequitable result. Pursuant to such an appeal, the

Nevada Tax Commission may use an alternative method that provides an equitable

result.

     3.  As used in this section, “total amount of

taxes levied” means the lower of the total amount of property taxes assessed to

a parcel or the total amount of property taxes assessed as the result of a

final decision on an appeal, less the amount of any partial abatement of

property taxes applied to that parcel pursuant to NRS 361.4722, 361.4723 or 361.4724.

     (Added to NAC by Tax Comm’n by R001-07, eff. 3-23-2007)

Improvement to or Change in Actual or Authorized Use of

Property

      NAC 361.6104  Definitions. (NRS 360.090, 361.4722, 361.4723, 361.4724)  As used in NAC 361.6104 to 361.61049,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.610405 to 361.61046,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610405  “Agricultural use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Agricultural use” has the

meaning ascribed to it in NRS

361A.030.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61041  “Commercial use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Commercial use” means the

current employment of property for any use other than agricultural use,

industrial use, institutional use, mining use, multifamily residential use,

open-space use, recreational use, single-family residential use or use as

vacant land.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610415  “Industrial use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Industrial use” means the

current employment of property for the purpose of:

     1.  Manufacturing, assembly, processing,

fabricating, machining or warehousing; or

     2.  Extracting sand and gravel, unless the

net proceeds thereof are subject to taxation pursuant to chapter 362 of NRS.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61042  “Institutional use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Institutional use” has

the meaning ascribed to it in NAC 361.61012.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610425  “Mining use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Mining use” means the

current employment of property for the development or extraction of any mineral

on or beneath the surface of land, including metal ores, oil, gas and other

hydrocarbons, and geothermal resources.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61043  “Multifamily residential use” defined. (NRS 360.090,

361.4722, 361.4723, 361.4724)  “Multifamily residential

use” means the current employment of property for any residential purpose other

than single-family residential use.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610435  “On-site improvement” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “On-site improvement”

means a physical change to the land area of any property which makes the site

ready for its intended use or development, such as grading or landscaping or

the addition of fencing, curbing, paving or walkways. The term does not

include:

     1.  Any off-site improvements, including, but

not limited to, sewer or drainage lines, utility hookups, sidewalks or roads

which are not located on the property; or

     2.  Any change in the intensity of use of the

property.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61044  “Open-space use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Open-space use” has the

meaning ascribed to it in NRS

361A.050.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610445  “Partial abatement” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Partial abatement” means

a partial abatement of taxes provided pursuant to NRS 361.4722, 361.4723 or 361.4724.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61045  “Recreational use” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Recreational use” has the

meaning ascribed to it in NAC 361.61024.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610455  “Single-family residential use” defined. (NRS 360.090,

361.4722, 361.4723, 361.4724)  “Single-family residential

use” means the current employment of property as a single-family residence, as

that term is defined in NRS

361.4723.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61046  “Vacant land” defined. (NRS 360.090, 361.4722, 361.4723, 361.4724)  “Vacant land” means any

land other than land on which there is an improvement sufficient to allow the

identification of or establish actual use.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610465  Scope and purpose. (NRS 360.090, 361.4722, 361.4723, 361.4724)  The provisions of NAC 361.6104 to 361.61049,

inclusive:

     1.  Except as otherwise provided in

subsection 2, set forth the methodology required to carry out the provisions of

NRS 361.4722, 361.4723 and 361.4724 in determining the amount

of any property taxes to be excluded from each partial abatement and added to

the tax roll for the current fiscal year attributable to any incremental

increase in the assessed value of any 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.

     2.  Do not apply to any property of an

interstate or intercounty nature regarding which the Commission establishes the

valuation thereof for assessment purposes pursuant to subsection 1 of NRS 361.320 or NRS 361.321.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61047  Determination of improvement to property. (NRS 360.090,

361.4722, 361.4723, 361.4724)  Any determination by a

county assessor or the Department, as applicable, that there is any improvement

to the subject property must be based on a finding that:

     1.  There is an appurtenance erected upon or

affixed to the land, including any on-site improvement, in the current fiscal

year that did not exist in the immediately preceding fiscal year; or

     2.  The subject property consists in whole or

in part of a community unit in a common-interest community and there is:

     (a) A common element in that common-interest

community; or

     (b) An appurtenance erected upon or affixed to a

common element in that common-interest community, including any on-site

improvement,

Ê that did not

exist in the immediately preceding fiscal year.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610475  Determination of change in actual use. (NRS 360.090,

361.4722, 361.4723, 361.4724)

     1.  Any determination by a county assessor or

the Department, as applicable, that there is any change in the actual use of

the subject property must be based on a finding that, upon the commencement of

the immediately preceding fiscal year:

     (a) The property was vacant land and, as the result

of new construction on the property sufficient to allow for an identification

of the use of the property, the primary use of the property upon the

commencement of the current fiscal year is agricultural use, commercial use,

industrial use, institutional use, mining use, multifamily residential use,

open-space use, recreational use or single-family residential use;

     (b) The primary use of the property as vacant land,

agricultural use, commercial use, industrial use, institutional use, mining

use, multifamily residential use, open-space use, recreational use or

single-family residential use is different from the primary use of the property

as vacant land, agricultural use, commercial use, industrial use, institutional

use, mining use, multifamily residential use, open-space use, recreational use

or single-family residential use upon the commencement of the current fiscal

year; or

     (c) The property was assessed and taxed as part of

a qualified subdivision but is no longer part of that qualified subdivision

upon the commencement of the current fiscal year. The amount of any partial

abatement that applies to the property must be calculated as if the property

had not been assessed and taxed as part of a qualified subdivision during the

immediately preceding or any other prior fiscal year. As used in this

paragraph, “qualified subdivision” has the meaning ascribed to it in NAC 361.117.

     2.  If any improvements from which the actual

use of the subject property was determined for the purposes of subparagraph (2)

of paragraph (a) of subsection 1 of NRS

361.227 are destroyed or otherwise removed from the property, the county

assessor or the Department, as applicable, shall consider whether the actual

use of the property, as determined from the destroyed or removed improvements,

still exists for the current fiscal year.

     3.  If the subject property has more than one

use, the county assessor may determine a single use for each individual portion

of the property that is being used for only one use for the purpose of

determining whether there is any change in the actual use of that portion of

the property.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61048  Determination of change in authorized use. (NRS 360.090,

361.4722, 361.4723, 361.4724)

     1.  Any determination by a county assessor or

the Department, as applicable, that there is any change in the authorized use

of the subject property must be based on a finding that:

     (a) Between the commencement of the immediately

preceding fiscal year and the commencement of the current fiscal year, there

has been a change in the legal or governmental restrictions on the use of the

property;

     (b) The change in the legal or governmental

restrictions on the use of the property allows the property to be put to a use

that was not an allowed use upon the commencement of the immediately preceding

fiscal year; and

     (c) Either:

          (1) The property was vacant land upon the

commencement of both the immediately preceding fiscal year and the current

fiscal year; or

          (2) All the improvements to the property were

removed from the property before the commencement of the current fiscal year.

No finding may be made pursuant to this subparagraph if the taxpayer shows to

the satisfaction of the county assessor or the Department, as applicable, that

a reasonably diligent effort is being made to build new improvements to the

property that would provide for the same use of the property as was authorized

when the former improvements were removed.

     2.  If a combination of applications or

approvals is required for any changes in the legal or governmental restrictions

on the use of the subject property, no finding may be made pursuant to

subsection 1 until all such applications and approvals have been obtained.

     3.  For the purposes of each partial

abatement, no change in the authorized use of any property may be determined to

occur as a result of any change by a governmental entity in:

     (a) The categorization or classification of the

zoning designation for the property if there is no change in the allowed use of

the property; or

     (b) Any procedure to apply for an authorized use of

the property.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.610485  Determination of amount of property taxes to be added to tax

roll. (NRS 360.090, 361.4722, 361.4723, 361.4724)

     1.  If a county assessor or the Department,

as applicable, does not make a determination in compliance with the provisions

of NAC 361.61047, 361.610475

or 361.61048 that there has been any improvement

to or change in the actual or authorized use of the subject property, no amount

of property taxes may be added to the tax roll for the current fiscal year

attributable to any incremental increase in the assessed value 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.

     2.  If a county assessor or the Department,

as applicable, makes a determination in compliance with the provisions of NAC 361.61047, 361.610475

or 361.61048 that there has been any improvement

to or change in the actual or authorized use of the subject property, the

county assessor or the Department, as applicable, in cooperation with the

county treasurer, must:

     (a) Make a current year calculation for the

property as provided in subsection 3;

     (b) Make a base year calculation for the property

as provided in subsection 4; and

     (c) Apply the amount determined pursuant to

subsection 3 or 4, whichever is less, as the amount of property taxes to be

added to the tax roll for the current fiscal year attributable to any

incremental increase in the assessed value 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.

     3.  A current year calculation for the

subject property must be made as follows:

     (a) Determine the taxable value of the property in

accordance with the provisions of NRS

362.095, paragraph (b) of subsection 1 of NRS 362.100 and NAC 361.106 to 361.139,

inclusive, as applicable, for the current fiscal year based on any improvement

to or change in the actual or authorized use of the property from the

immediately preceding fiscal year.

     (b) Determine the taxable value of the property in

accordance with the provisions of NRS

362.095, paragraph (b) of subsection 1 of NRS 362.100 and NAC 361.106 to 361.139,

inclusive, as applicable, for the current fiscal year as if there had not been

any improvement to or change in the actual or authorized use of the property

from the immediately preceding fiscal year.

     (c) Subtract the amount determined pursuant to

paragraph (b) from the amount determined pursuant to paragraph (a). If the

remainder is:

          (1) Zero or a negative number, the amount

determined pursuant to this subsection shall be deemed to be zero.

          (2) A positive number:

               (I) Convert that amount into an assessed

value by multiplying that amount by 0.35; and

               (II) Multiply that assessed value by the

applicable rate of property taxes.

     4.  A base year calculation for the subject property

must be made as follows:

     (a) Determine the taxable value for the current

fiscal year of any new improvements made on the land of the subject property,

as determined for that fiscal year pursuant to NAC

361.61047 in accordance with the provisions of paragraph (b) of subsection

1 of NRS 361.227.

     (b) Determine the full cash value of the land of

the subject property in accordance with the provisions of paragraph (a) of

subsection 1 of NRS 361.227, NRS 362.095 and paragraph (b) of

subsection 1 of NRS 362.100, as

applicable, for the base year as if any improvement to or change in the actual

or authorized use of the property, as determined for the current fiscal year

pursuant to NAC 361.61047, 361.610475 or 361.61048,

had occurred before the base year.

     (c) Determine the full cash value of the land of

the subject property in accordance with the provisions of paragraph (a) of

subsection 1 of NRS 361.227, NRS 362.095 and paragraph (b) of

subsection 1 of NRS 362.100, as

applicable, for the base year without considering any improvement to or change

in the actual or authorized use of the property determined for the current

fiscal year pursuant to NAC 361.61047, 361.610475 or 361.61048.

     (d) Subtract the amount determined pursuant to

paragraph (c) from the amount determined pursuant to paragraph (b). If the

remainder is:

          (1) Zero or a negative number, the amount

determined pursuant to this paragraph shall be deemed to be zero.

          (2) A positive number, successively increase

that number in a compound manner by the abatement percentage applicable to the

property for each fiscal year after the base year to and including the current

fiscal year.

     (e) Add the amounts determined pursuant to

paragraphs (a) and (d).

     (f) Convert the amount determined pursuant to

paragraph (e) into an assessed value by multiplying that amount by 0.35.

     (g) Multiply the assessed value determined pursuant

to paragraph (f) by the applicable rate of property taxes.

     5.  In carrying out the provisions of this

section, a county assessor and the Department, as applicable, shall ensure that

the amount of any property taxes excluded from any partial abatement and added

to the tax roll for the current fiscal year attributable to any incremental

increase in the assessed value of any 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:

     (a) Is due solely to an incremental increase in the

assessed value of the property which is directly attributable to the

improvement to or change in the actual or authorized use of the property;

     (b) Is not due to any increase in the assessed

value of the property as a result of any other cause, including, but not

limited to, a general appreciation in the market value of property in the area;

and

     (c) Is assessed only to the specific property for

which the assessed valuation has increased as a result of any improvement to or

change in the actual or authorized use of that property.

     6.  As used in this section:

     (a) “Abatement percentage” means, with regard to

any property for which the owner thereof is entitled to a partial abatement

from taxation pursuant to:

          (1) NRS

361.4723 or 361.4724, 3

percent;

          (2) Subsection 1 of NRS 361.4722, the percentage

determined pursuant to paragraph (b) of that subsection; or

          (3) Subsection 2 of NRS 361.4722, the percentage

determined pursuant to paragraph (b) of that subsection.

     (b) “Base year” means the fiscal year beginning on

July 1, 2004, or the fiscal year in which a new parcel first appears on the tax

roll, whichever occurs last.

     (c) “New parcel” has the meaning ascribed to it in NAC 361.61014.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

      NAC 361.61049  Notification of determination that will result in exclusion of

any taxes from partial abatement. (NRS 360.090, 361.4722, 361.4723, 361.4724)  A county assessor shall

include with each notice of assessed valuation or amended notice of assessed

valuation provided to a taxpayer or an owner of property pursuant to NRS 361.300 a statement of whether

any determination has been made that will result in the exclusion of any taxes

from any partial abatement that applies to the subject property attributable to

any incremental increase in the assessed value 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. If the statement indicates

that such a determination has been made, the statement must:

     1.  Set forth that determination;

     2.  Specify the amount of that incremental

increase in the assessed value of the property; and

     3.  Describe the manner in which detailed

instructions may be obtained for appealing the matter to the county board of

equalization or the Commission.

     (Added to NAC by Tax Comm’n by R109-08, eff. 12-17-2008)

Appeal of Determination of Applicability of Certain

Abatements

      NAC 361.6105  Definitions. (NRS 360.090, 361.4734)  As used in NAC 361.6105 to 361.61074,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.61052 to 361.61062,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61052  “Contact person” defined. (NRS 360.090, 361.4734)  “Contact person” means a

person designated by a party to receive communications concerning a proceeding

before a hearing officer.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61054  “Hearing officer” defined. (NRS 360.090, 361.4734)  “Hearing officer” has the

meaning ascribed to it in NAC 360.035.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61056  “Intervener” defined. (NRS 360.090, 361.4734)  “Intervener” has the

meaning ascribed to it in NAC 360.065.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61058  “Party” defined. (NRS 360.090, 361.4734)  “Party” means a person,

government, governmental agency or political subdivision of a government

entitled to appear in a proceeding of the Commission. The term includes an

intervener.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.6106  “Petitioner” defined. (NRS 360.090, 361.4734)  “Petitioner” has the

meaning ascribed to it in NAC 360.065.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61062  “Staff” defined. (NRS 360.090, 361.4734)  “Staff” has the meaning

ascribed to it in NAC 360.040.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61064  Notice of appeal of determination of county assessor or

Department. (NRS 360.090, 361.4734)

     1.  A petitioner who wishes to appeal a

determination of a county assessor described in paragraph (a) of subsection 1

of NRS 361.4734 or a

determination of the Department described in paragraph (b) of subsection 1 of NRS 361.4734 must file a written

notice of appeal with the Commission on a form provided by the Department

within the period prescribed in subsection 2 of NRS 361.4734.

     2.  In addition to the information required

by subsection 4 of NAC 360.045, the

notice of appeal must include:

     (a) The name and mailing address of the petitioner

and the petitioner’s contact person, if any;

     (b) The telephone number for daytime business hours

and facsimile number of the petitioner and the petitioner’s contact person, if

any;

     (c) The electronic mail address, if available, of

the petitioner and the petitioner’s contact person, if any;

     (d) The tax year being appealed;

     (e) A description of the property and the

assessor’s parcel number or the identifying number of the property that is the

subject of the appeal;

     (f) A copy of the decision of the county assessor

or the Department for the tax year in question on the property that is the

subject of the appeal; and

     (g) A statement of the relief requested.

     3.  Not later than 10 business days after

receiving the notice of appeal of a determination issued pursuant to paragraph

(a) of subsection 1 of NRS 361.4734,

the Department shall provide a copy of the notice of appeal to the county

assessor.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61066  Hearing before hearing officer; findings and conclusions of

hearing officer. (NRS 360.090, 361.4734)

     1.  After receipt of a notice of appeal filed

in compliance with subsection 2 of NRS

361.4734 and NAC 361.61064, the Commission

will assign a hearing officer to hear the appeal.

     2.  The hearing officer shall conduct the

hearing in the manner prescribed in NAC

360.100 to 360.155, inclusive.

     3.  Notice of the hearing must be provided in

the manner prescribed in NAC 360.095.

     4.  A person who wishes to intervene in a

hearing must comply with the provisions set forth in NAC 360.070.

     5.  At any evidentiary hearing, the

petitioner and the county assessor or the Department may exercise the rights

set forth in NAC 360.080.

     6.  Appearances and representation of the

parties must be made in the manner prescribed in NAC 360.085.

     7.  After the close of the evidentiary

hearing, the hearing officer shall file with the Commission within 60 calendar

days a proposed order that sets forth the findings and conclusions of the

hearing officer and the reasons and bases for those findings and conclusions.

The proposed order must be served on each party.

     8.  The findings of fact and conclusions of

law made by a hearing officer are not required to be included in a stipulated

agreement.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61068  Proposed order of hearing officer: Written objection; reply to

objection; action by Commission. (NRS 360.090, 361.4734)

     1.  Except as otherwise provided in this

subsection, a party may file a written objection to the proposed order with the

Commission within 20 calendar days after receipt of the proposed order. The

written objection must state with particularity the issues presented, the

points of law or fact which are relied on and the relief requested. The

Commission may allow a party, upon good cause shown, to file a written

objection with the Commission more than 20 days after receipt of a proposed

order.

     2.  A party who files a written objection

shall serve a copy of its objection on all parties.

     3.  Except as otherwise provided in this

subsection, a party may reply to the written objection within 15 days after

receipt of the written objection. A reply must be served on all parties. The

Executive Director may grant an extension of time for the responding party to

reply upon good cause shown.

     4.  If no party files a written objection

with the Commission pursuant to subsection 1, the Commission will place the

proposed order on the appropriate agenda for its next scheduled meeting for

action by the Commission.

     5.  If a party files a written objection to

the proposed order with the Commission within 20 days after receipt of the

proposed order or if the Commission chooses to take any action concerning the

review of the proposed order, other than to remand the proposed order to the

hearing officer for clarification of the order, the Commission will hold a

hearing on the proposed order. The Commission will provide to the parties at

least 15 days’ notice of the hearing, unless the parties waive the notice in

writing or on the record before the Commission.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.6107  Hearing before Commission: Order of argument. (NRS 360.090,

361.4734)  In a

hearing held before the Commission pursuant to NAC

361.61068, the order in which argument will ordinarily be received from the

parties is:

     1.  Orientation by staff;

     2.  Argument by the petitioner;

     3.  Argument by interveners;

     4.  Argument by any other party; and

     5.  Rebuttal by the petitioner.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61072  Hearing before Commission: Basis on record before hearing

officer; determination that record is inadequate. (NRS 360.090,

361.4734)  The

hearing held before the Commission pursuant to NAC

361.61068 must be based on the record made before the hearing officer. If

the Commission determines the record is inadequate, the Commission may remand

the matter to the hearing officer for further proceedings or open the record

and hear new evidence.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

      NAC 361.61074  Hearing before Commission: Action by Commission; issuance of

written order. (NRS 360.090, 361.4734)

     1.  After the close of oral argument, the

Commission shall:

     (a) Make a final order that adopts, reverses or

modifies, in whole or in part, the proposed order of the hearing officer; or

     (b) Remand the matter to the hearing officer for

further proceedings.

     2.  The Executive Director shall issue the

written order on behalf of the Commission within 60 calendar days after a final

order is made or a matter is remanded pursuant to subsection 1.

     (Added to NAC by Tax Comm’n by R011-07, eff. 10-31-2007)

Annexation of Real Property to Taxing Entity

      NAC 361.6115  Definitions. (NRS 361.4732, 361.4733)  As used in NAC 361.6115 to 361.6135,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.6117 to 361.6127,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.6117  “Combined overlapping adjusted tax rate” defined. (NRS 361.4732,

361.4733)  “Combined

overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel

tax rates of all the taxing entities that levy an ad valorem tax on a parcel or

other taxable unit of property.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.612  “Entity-adjusted parcel tax rate” defined. (NRS 361.4732,

361.4733)  “Entity-adjusted

parcel tax rate” has the meaning ascribed to it in NAC

361.760.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.6123  “Revised tax base” defined. (NRS 361.4732, 361.4733)  “Revised tax base” means

the amount of ad valorem taxes which, after a parcel or other taxable unit of

real property is annexed to a taxing entity, would have been levied on the

property for the immediately preceding fiscal year if the annexation had

occurred 1 year earlier, based upon the tax rates that would have applied to

the property for the immediately preceding fiscal year if the annexation had

occurred 1 year earlier and without regard to any exemptions from taxation that

applied to the property for the immediately preceding fiscal year but do not

apply to the property for the current fiscal year.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.6125  “Taxing entity” defined. (NRS 361.4732, 361.4733)  “Taxing entity” has the

meaning ascribed to it in NRS

361.4721.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.6127  “Year of annexation” defined. (NRS 361.4732, 361.4733)  “Year of annexation” means

the first fiscal year in which a taxing entity that annexes a parcel or other taxable

unit of real property is entitled to levy or require the levy on its behalf of

any ad valorem taxes on that property as a result of that annexation of the

property.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.613  Events constituting annexation. (NRS 361.4732, 361.4733)  For the purpose of

carrying out the provisions of NRS

361.4732 and NAC 361.6115 to 361.6135, inclusive, the annexation of a parcel or

other taxable unit of real property to a taxing entity includes:

     1.  The inclusion of the property within the

boundaries of an existing taxing entity as a result of a change in the

boundaries of that taxing entity;

     2.  The inclusion of the property within the

boundaries of a new taxing entity; and

     3.  The assumption by a taxing entity of the

functions of another taxing entity that:

     (a) Was entitled to levy or require the levy on its

behalf of any ad valorem taxes on the property during the immediately preceding

fiscal year; and

     (b) Has been dissolved.

     (Added to NAC by Com. on Local Gov’t Finance by R044-06,

eff. 5-4-2006; A by R043-09, 6-30-2010, eff. 7-1-2010)

      NAC 361.6133  Calculations required after annexation. (NRS 361.4732,

361.4733)

     1.  Except as otherwise provided in

subsections 2 and 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the

annexation of a parcel or other taxable unit of real property to a taxing

entity, the tax receiver of the county in which that property is located after

that annexation shall, when making any calculations pursuant to the provisions

of this chapter for the year of annexation of that property and each subsequent

fiscal year which require a determination of:

     (a) The entity-adjusted parcel tax rates applicable

to the property for the fiscal year immediately preceding the year of

annexation:

          (1) Disregard the entity-adjusted parcel tax

rate for that prior fiscal year of any taxing entity which, as a result of that

annexation, is no longer entitled to levy or require the levy on its behalf of

any ad valorem taxes on the property; and

          (2) Include as an entity-adjusted parcel tax

rate applicable to that property for that prior fiscal year:

               (I) The ad valorem tax rate for that

prior fiscal year of the taxing entity annexing that property; or

               (II) If that taxing entity did not exist

in that prior fiscal year, the ad valorem tax rate of that taxing entity for

the year of annexation.

     (b) The combined overlapping adjusted tax rate

applicable to the property for the fiscal year immediately preceding the year

of annexation:

          (1) Exclude from that determination the

entity-adjusted parcel tax rate for that prior fiscal year of any taxing entity

which, as a result of that annexation, is no longer entitled to levy or require

the levy on its behalf of any ad valorem taxes on the property; and

          (2) Include in that determination, as an

entity-adjusted parcel tax rate applicable to that property for that prior

fiscal year:

               (I) The ad valorem tax rate for that

prior fiscal year of the taxing entity annexing that property; or

               (II) If that taxing entity did not exist

in that prior fiscal year, the ad valorem tax rate of that taxing entity for

the year of annexation.

     2.  Except as otherwise provided in

subsection 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the

annexation of a parcel or other taxable unit of real property to a taxing

entity, the tax receiver of the county in which that property is located after

that annexation shall:

     (a) Calculate the revised tax base for that

property as follows:

          (1) Subtract the combined overlapping adjusted

tax rate which actually applied to the property for the fiscal year immediately

preceding the year of annexation, as determined without regard to the

provisions of subsection 1, from the combined overlapping adjusted tax rate

applicable to that property for that prior fiscal year, as determined in

accordance with the provisions of subsection 1;

          (2) Divide the result obtained pursuant to

subparagraph (1) by the combined overlapping adjusted tax rate which actually

applied to the property for the fiscal year immediately preceding the year of

annexation, as determined without regard to the provisions of subsection 1;

          (3) Multiply the result obtained pursuant to

subparagraph (2) by the actual amount of ad valorem taxes applicable to the

property for the fiscal year immediately preceding the year of annexation, as

determined after the deduction of any partial abatement of taxes that applied

to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any

tax exemptions that applied to the property for that prior fiscal year; and

          (4) Add the result obtained pursuant to

subparagraph (3) to the actual amount of ad valorem taxes applicable to the

property for the fiscal year immediately preceding the year of annexation, as

determined after the deduction of any partial abatement of taxes that applied

to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any

tax exemptions that applied to the property for that prior fiscal year.

     (b) Except as otherwise required to carry out the

provisions of NRS 361.4729, use

the revised tax base for that property, as calculated pursuant to paragraph

(a), in lieu of the amount otherwise required to be determined pursuant to

paragraph (a) of subsection 1 of NRS

361.4722, paragraph (a) of subsection 2 of NRS 361.4722, paragraph (a) of

subsection 1 of NRS 361.4723 or

paragraph (a) of subsection 1 of NRS

361.4724 for the purpose of determining the amount of any partial abatement

of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the year of

annexation.

     3.  The provisions of this section must not

be applied in any manner that:

     (a) Would provide for the abatement of any increase

in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each

partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or

     (b) Would not allocate the revenue from any

increase in ad valorem taxes described in paragraph (a) to the taxing entity

which levies that increase or on behalf of which that increase is levied.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

      NAC 361.6135  Duties of tax receiver of county and Department. (NRS 361.4732,

361.4733)

     1.  The tax receiver of a county and the

Department, as applicable, shall ensure that the amount of any property taxes

which are excluded from any partial abatement of taxes provided pursuant to NRS 361.4722, 361.4723 or 361.4724 and added to the tax roll

for the current fiscal year as a result of the annexation of a parcel or other

taxable unit of real property to a taxing entity:

     (a) Is due solely to an incremental increase in the

rate of property taxes applicable to the property which is directly

attributable to the annexation of the property to the taxing entity; and

     (b) Is not due to any increase in the assessed

value of the property as a result of any other cause, including, but not

limited to, a general appreciation in the market value of property in the area.

     2.  The tax receiver of a county shall:

     (a) Provide on a website or other Internet site, if

any, that is operated or administered by or on behalf of the county or tax

receiver:

          (1) A description of each taxing district and

taxing entity in the county; and

          (2) The ad valorem tax rate of each taxing

entity in the county for the current fiscal year and the immediately preceding

2 fiscal years; and

     (b) Make readily available to any person, upon

request:

          (1) A description of each taxing district and

taxing entity in the county; and

          (2) The ad valorem tax rate of each taxing

entity in the county for the current fiscal year and each prior fiscal year

which commenced on or after July 1, 2004.

     3.  The Department shall provide on its

website or other Internet site concerning property taxes a worksheet for

performing the calculations required to carry out the provisions of NAC 361.6115 to 361.6135,

inclusive.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09,

6-30-2010, eff. 7-1-2010)

Abatement for Certain Energy Efficient Structures

      NAC 361.617  Definitions. (NRS 361.0775)  As used

in NAC 361.617 to 361.620,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.6175, 361.618

and 361.6185 have the meanings ascribed to them in

those sections.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

      NAC 361.6175  “Commission” defined. (NRS 361.0775)  “Commission”

means the Commission on Economic Development.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

      NAC 361.618  “LEED” defined. (NRS 361.0775)  “LEED”

means Leadership in Energy and Environmental Design.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

      NAC 361.6185  “LEED Green Building Rating System” defined; availability of

copies. (NRS 361.0775)

     1.  “LEED Green Building Rating System” means

those portions of the Leadership in Energy and Environmental Design Green

Building Rating System developed by the U.S. Green Building Council that are

adopted by the Director of the Office of Energy or otherwise deemed to be

appropriate for use in this State pursuant to NRS 701.217 and the

regulations adopted pursuant thereto.

     2.  A copy of the LEED Green Building Rating

System may be obtained at no cost from the U.S. Green Building Council, 1015

18th Street, N.W., Suite 508, Washington, D.C. 20036, or on the Internet at http://www.usgbc.org/.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

      NAC 361.619  Application to Commission; ineligible structures. (NRS

361.0775)

     1.  A person may apply to the Commission for

a partial abatement of the taxes on real property payable each year pursuant to

chapter 361 of NRS for property which

has a building or other structure that:

     (a) Is not a public building or structure; and

     (b) Is not a single-family house, multifamily

structure with three stories or fewer above grade, or a mobile or manufactured

home.

     2.  The application must be made on a form

prescribed by the Executive Director of the Commission.

     3.  The application:

     (a) Must include a letter of verification from the

Director of the Office of Energy which states that the real property for which

the abatement is sought has a building or other structure that meets or exceeds

the certification requirements for the abatement as set forth in NRS 361.0775 and NAC 361.620 and which sets forth the number of LEED

points earned;

     (b) Must specify the desired term and amount of the

abatement in accordance with the table set forth in NAC

361.620; and

     (c) If the real property for which the abatement is

sought is located in a redevelopment area created pursuant to chapter 279 of NRS, must include proof

that the application has been submitted to the redevelopment agency or

legislative body with jurisdiction over the redevelopment area.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

      NAC 361.6195  Consideration of application at meeting of Commission; notice of

meeting. (NRS 361.0775)

     1.  The Commission will consider an

application for the partial abatement of property taxes:

     (a) At the next regularly scheduled meeting of the

Commission following receipt of the application if the application is received

by the Commission at least 15 working days before the meeting; or

     (b) At the next regularly scheduled meeting of the

Commission following the meeting described in paragraph (a) in all other cases.

     2.  The Commission will, not less than 10

working days before a meeting at which it will consider an application for the

partial abatement of property taxes, provide written notice of the date, time

and location of the meeting to each local government and redevelopment agency

within whose jurisdiction the real property that is the subject of the

application is located.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

      NAC 361.620  Grant of abatement by Commission. (NRS

361.0775)

     1.  Except as otherwise provided in

subsection 2, if the Commission determines that the application satisfies all

requirements of NAC 361.617 to 361.620, inclusive, the Commission will grant a

partial abatement of the taxes on real property payable each year pursuant to chapter 361 of NRS in accordance with the

following table:

 



LEED

Level





LEED-NC

Points





LEED-EB

Points





Term

of Abatement





Amount

of Abatement







Silver





33

to 36





40

to 45





10

years





35

to 42 percent







 





 





 





5

to 7 years





50

percent







 





37

or 38





46

or 47





10

years





43

to 48 percent







 





 





 





8

or 9 years





50

percent







Gold





39

or more





48

or more





10

years





49

or 50 percent







 

     2.  The Commission will reduce the partial

abatement of real property taxes authorized by subsection 1 to the extent

necessary to ensure that:

     (a) If the real property for which the partial

abatement is sought is located in a redevelopment area created pursuant to chapter 279 of NRS, the partial abatement

authorized by subsection 1 together with any partial abatement of taxes to

which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 does not exceed 82

percent of the assessed value of the property; and

     (b) The partial abatement authorized by subsection

1 does not result in the inability of a local government to pay debt service on

any obligation or of a redevelopment agency created pursuant to chapter 279 of NRS to pay any outstanding

indebtedness.

     3.  If the Commission grants a partial

abatement of real property taxes, the abatement applies beginning July 1 of the

next following fiscal year, unless the applicant and the governing body of the

local government whose tax revenue will be affected by the abatement agree upon

a different date and the governing body provides written authorization for the

different date.

     4.  Upon granting a partial abatement of real

property taxes, the Commission will issue a certificate of eligibility for the

abatement that sets forth all parcel numbers of the affected property and the

percentage of the taxes on real property payable each year pursuant to chapter 361 of NRS and duration for which

the abatement is granted.

     5.  As used in this section, unless the

context otherwise requires:

     (a) “LEED-EB” means the LEED Green Building Rating

System for Existing Buildings, Upgrades, Operations and Maintenance; and

     (b) “LEED-NC” means the LEED Green Building Rating

System for New Construction & Major Renovations.

     (Added to NAC by Comm’n on Econ. Development by R220-05,

eff. 9-18-2006)

EQUALIZATION BY COUNTY BOARD OF EQUALIZATION

      NAC 361.622  Scope; power of county boards to adopt additional requirements. (NRS 361.340)

     1.  NAC 361.622

to 361.645, inclusive, are the minimum requirements

governing procedures before each county board of equalization and elected

officers serving that board.

     2.  With the prior approval of the State

Board of Equalization, each county board of equalization may:

     (a) Require petitioners to attach additional

information to the petition form; and

     (b) Adopt more detailed rules of procedure.

     [St. Bd. of Equalization, Intro. to Reg. No. 2, eff. 12-29-75;

A 1-1-77; A and renumbered as Intro. to Reg. No. 1, 10-14-77; + Intro. to Reg.

No. 3, eff. 12-29-75; A and renumbered as Intro. to Reg. No. 2, 10-14-77]—(NAC

A 1-6-84)

      NAC 361.623  List of members of additional panel. (NRS 361.340)  If an

additional panel is added to a county board of equalization, the county clerk

shall send to the Secretary of the State Board of Equalization a list of the

names and addresses of the members and the chair of the panel. The list must be

sent by January 25.

     (Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

      NAC 361.624  Duty to equalize within geographic vicinity, whole county;

limitation on adjustment of result of cyclic reappraisal. (NRS 361.340)  The

county board of equalization shall seek to equalize taxable valuation within

the geographic vicinity of the subject property, as well as the whole county.

Unequal valuations resulting solely from the effect of cyclic reappraisal

authorized by law does not justify an adjustment to a valuation.

     [St. Bd. of Equalization, Reg. No. 2 part § 9, eff. 12-29-75;

A and renumbered as Reg. No. 2 part § 10, 1-1-77; A and renumbered as Reg. No.

1 part § 10, 10-14-77]

      NAC 361.626  Duties of county clerk. (NRS 361.335, 361.340)

     1.  Each county clerk shall:

     (a) In addition to giving notice as required by chapters 241 and 361 of NRS, post a notice for each

meeting of the county board of equalization at the meeting room and the clerk’s

office.

     (b) Publish a notice in a newspaper of general

circulation in the county at least 5 days before the first meeting by using a

display advertisement which is no smaller than 2 by 4 inches and includes the

deadline for filing petitions.

     2.  The county clerk or a representative of

the county clerk shall attend all meetings of each panel of the county board of

equalization.

     [St. Bd. of Equalization, Reg. No. 2 part § 1, eff. 12-29-75;

A 1-1-77; renumbered as Reg. No. 1 part § 1, 10-14-77; Reg. No. 2 part § 2,

eff. 12-29-75; A and renumbered as Reg. No. 1 part § 2, 10-14-77; + Reg. No. 3

§§ 1 & 2, eff. 12-29-75; A 1-1-77; A and renumbered as Reg. No. 2 §§ 1

& 2, 10-14-77]—(NAC A 1-6-84)

      NAC 361.627  Consideration of complaints. (NRS 361.340, 361.375)

     1.  A county board of equalization shall hear

each complaint properly brought before it and make an independent determination

of the valuation of the property assessed. The State Board of Equalization will

remand to a county board any complaint which was denied because it was too

complex or based on a method of appraisal required by law or for which evidence

of taxable value was not reviewed.

     2.  A county board shall give each petitioner

sufficient time to submit the petitioner’s evidence. No complaint may be denied

solely on the basis of insufficient time in which to hear the evidence.

     (Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

      NAC 361.628  Summary of appraisal data. (NRS 361.340)  Each

county assessor shall prepare and submit to the county board of equalization a

summary of appraisal data for each property which is the subject of a complaint

alleging that taxable value is in excess of full cash value. The summary must:

     1.  Include the method used to value the

property and the sales price of comparable property which supports the

valuation; and

     2.  Be accompanied by a map of the area

showing the location of the property and all comparable property.

     [St. Bd. of Equalization, Reg. No. 2 § 7, eff. 12-2-75;

A and renumbered as Reg. No. 2 § 8, 1-1-77; renumbered as Reg. No. 1 § 8, 10-14-77]—(NAC

A 1-6-84)

      NAC 361.630  Order of appearances; testimony to be under oath. (NRS 361.340)

     1.  Unless modified by the county board of

equalization, the order of appearances must be as follows:

     (a) Assessing authority’s briefing-orientation;

     (b) Petitioner’s presentation;

     (c) Assessing authority’s presentation; and

     (d) Petitioner’s rebuttal.

     2.  All persons shall testify under oath.

     [St. Bd. of Equalization, Reg. No. 2 § 5, eff. 12-29-75;

A and renumbered as Reg. No. 1 § 5, 10-14-77; Reg. No. 2 § 6, eff. 12-29-75;

renumbered as Reg. No. 2 § 7, 1-1-77; renumbered as Reg. No. 1 § 7, 10-14-77]

      NAC 361.631  Evidence of market value. (NRS 361.340)  At a

hearing before a county board of equalization, the following information may be

submitted as evidence of the market value of the property:

     1.  The amount derived from the

capitalization of fair economic income;

     2.  The full cash value of the land plus the

depreciated replacement cost of any improvements; and

     3.  Prices paid in market transactions for

comparable property.

     (Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

      NAC 361.632  Consolidation of cases. (NRS 361.340)

     1.  A county board of equalization may

consolidate for hearing at one time and place all cases raising similar

questions of law or fact.

     2.  All petitioners must be afforded the

opportunity to be heard and may raise issues of law or fact which are different

from those issues raised in the consolidated hearing.

     [St. Bd. of Equalization, Reg. No. 2 § 6, eff. 1177;

renumbered as Reg. No. 1 § 6, 10-14-77]

      NAC 361.634  Notices. (NRS 361.340)  The

county clerk shall maintain adequate proof of mailing or personal delivery of

all letters or notices scheduling appearances before the county board of

equalization. The proof may be a certificate of mailing or other reliable

evidence. The letter or notice must advise the petitioner he or she is to pay

for a court reporter and transcript if a transcript is desired and that one

copy of the transcript must be provided to the county and one provided to the

State Board of Equalization. A courtesy copy of such letters or notices must be

delivered to the county assessor.

     [St. Bd. of Equalization, Reg. No. 3 part §§ 3 & 4,

eff. 12-29-75; A and renumbered as Reg. No. 3 § 3, 1-1-77; renumbered as Reg.

No. 2 § 3, 10-14-77]

      NAC 361.638  Exhibits; minutes; petition forms. (NRS 361.340,

361.365)  Each

county clerk shall:

     1.  Mark, record and file all exhibits

submitted to the county board of equalization. A list of exhibits must be

included on each petition at the place designated therefor.

     2.  Prepare complete minutes of each hearing,

including any action taken by the board and the specific reasons for that

action.

     3.  Complete each petition form to reflect

the action taken by the board and the specific reasons for that action.

     4.  Submit petitions, exhibits, minutes,

certificates of mailing and other material deemed pertinent by the county board

of equalization to the Secretary of the State Board of Equalization no later

than the fourth Monday in February.

     [St. Bd. of Equalization, Reg. No. 3 §§ 5-7 & 9,

eff. 12-29-75; A and renumbered as Reg. No. 3 §§ 4-6 & 8, 1-1-77;

renumbered as Reg. No. 2 §§ 4-6 & 8, 10-14-77]—(NAC A 1-6-84)

REVISER’S NOTE.

      NRS 361.340,

on which the date in subsection 4 depends, was amended twice in that respect

between 1977 and the time when NAC 361.638 was

originally codified: See Stats. 1979 at page 1 and Stats. 1981 at page 795. The

date in subsection 4 was changed by the reviser to accommodate the later of

these amendments and NRS 361.380.

 

      NAC 361.640  Notice of action. (NRS 361.340)  Each

county board of equalization shall notify:

     1.  All petitioners of its actions; and

     2.  Any other property owner whose property

values were affected.

     [St. Bd. of Equalization, Reg. No. 2 § 14, eff. 1-1-77;

renumbered as Reg. No. 1 § 14, 10-14-77]

      NAC 361.6405  Determination of percentage of obsolescence. (NRS 361.340,

361.375)  The

State Board of Equalization will or a county board of equalization shall, in

fixing a percentage of obsolescence to be deducted from the taxable value of

any improvements subject to its jurisdiction, consider the total value of land

and improvements to determine whether taxable value exceeds full cash value.

     (Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

      NAC 361.641  Deduction of percentage of obsolescence when taxable value

exceeds cash value. (NRS 361.340, 361.375)  If it is determined that

the computed total taxable value of any property exceeds its full cash value,

the State Board of Equalization will or a county board of equalization shall

instruct the county assessor to annually deduct the percentage of obsolescence

fixed by the board from the computed total taxable value of the improvements

until the property is physically reappraised.

     (Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

      NAC 361.643  Record to support reduction of assessed valuation. (NRS 361.340,

361.360, 361.375)

     1.  If a county board of equalization reduces

the assessed valuation of any property, the record of the case must contain the

reasons for the reduction including, when applicable:

     (a) An incorrect measurement of square footage.

     (b) The reduction of the valuation of that class of

property.

     (c) A deduction for depreciation or obsolescence.

     (d) Evidence of comparative sales or fair economic

income which proves that the taxable value of the property exceeded its full

cash value.

     2.  If the State Board of Equalization

determines that the record of any case on appeal from a county board of

equalization is inadequate, the Board will remand the case to the county board

before October 1. If the county board holds a hearing anew on the complaint, it

must be held and a decision must be rendered within 30 days after the remand.

     (Added to NAC by St. Bd. of Equalization, eff. 1-6-84)

      NAC 361.645  Appeal of decision to State Board of Equalization: Record of

proceedings before county board. (NRS 361.340)

     1.  Within 15 calendar days after a county

clerk receives notice from the State Board of Equalization that an appeal of a

decision of the county board of equalization has been docketed for a hearing at

the State Board, the county clerk shall:

     (a) Prepare a record of the proceedings before the

county board in the decision on appeal, including a general index in a format

prescribed by the State Board of Equalization. The index must clearly identify

each exhibit, paper, report or other documentary, audio or video evidence

included in the record.

     (b) Certify the record as complete except as

shortened pursuant to subsection 3.

     (c) Transmit the certified record to the State

Board of Equalization.

     (d) Serve a copy of the general index on each party

to the appeal.

     2.  If a petitioner has delivered a certified

transcript of the hearing before the county board to the county clerk pursuant

to NRS 361.365, the clerk shall

include a copy of the transcript in the record. The transcript delivered to the

clerk must be prepared by a certified court reporter.

     3.  Except as otherwise provided in this

subsection, the record submitted to the State Board of Equalization must be

complete. The record may be shortened:

     (a) By written stipulation of all parties to the

appeal; and

     (b) By the omission of duplicate copies of any

exhibit, paper, report or other documentary evidence submitted at the hearing

before the county board. The clerk shall include original documents rather than

copies of all documentary evidence, if possible.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

EQUALIZATION BY STATE BOARD OF EQUALIZATION

      NAC 361.650  Definitions. (NRS 361.375, 361.395)  As used in NAC 361.650 to 361.669,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.651 to 361.656,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by St. Bd. of Equalization by R153-09,

eff. 4-20-2010)

      NAC 361.651  “County board” defined. (NRS 361.375, 361.395)  “County board” means a

county board of equalization.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.652  “Equalize property valuations” defined. (NRS 361.375,

361.395)  “Equalize

property valuations” means to ensure that the property in this State is

assessed uniformly in accordance with the methods of appraisal and at the level

of assessment required by law.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.653  “Interested person” defined. (NRS 361.375, 361.395)  “Interested person” means

an owner of any relevant property, as indicated in the records of the county

assessor of the county in which the property is located or, if the Commission

establishes the valuation of the property, as indicated in the records of the

Department.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.654  “Ratio study” defined. (NRS 361.375, 361.395)  “Ratio study” means an

evaluation of the quality and level of assessment of a class or group of

properties in a county which compares the assessed valuation established by the

county assessor for a sampling of those properties to:

     1.  An estimate of the taxable value of the

property by the Department or an independent appraiser; or

     2.  The sales price of the property,

Ê as appropriate.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.655  “Secretary” defined. (NRS 361.375, 361.395)  “Secretary” means the

Secretary of the State Board.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.656  “State Board” defined. (NRS 361.375, 361.395)  “State Board” means the

State Board of Equalization.

     (Added to NAC by St. Bd. of Equalization by R153-09,

eff. 4-20-2010)

      NAC 361.657  Scope. (NRS 361.375, 361.395)  The provisions of NAC 361.650 to 361.669,

inclusive, govern the practice and procedure for proceedings before the State

Board to carry out the provisions of NRS

361.395.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.658  Adoption by reference of Standard on Ratio Studies;

revision of publication after adoption. (NRS 361.375, 361.395)

     1.  The State Board hereby adopts by

reference the Standard on Ratio Studies, July 2007 edition, published by

the International Association of Assessing Officers. The Standard on Ratio

Studies may be obtained from the International Association of Assessing

Officers, 314 West 10th Street, Kansas City, Missouri 64105-1616, or on the

Internet at http://www.iaao.org/store, for the price of $10.

     2.  If the publication adopted by reference

in subsection 1 is revised, the State Board will review the revision to

determine its suitability for this State. If the State Board determines that

the revision is not suitable for this State, the State Board will hold a public

hearing to review its determination and give notice of that hearing within 30

days after the date of the publication of the revision. If, after the hearing,

the State Board does not revise its determination, the State Board will give

notice that the revision is not suitable for this State within 30 days after

the hearing. If the State Board does not give such notice, the revision becomes

part of the publication adopted by reference pursuant to subsection 1.

     (Added to NAC by St. Bd. of Equalization by R153-09,

eff. 4-20-2010)

      NAC 361.659  Annual sessions of State Board: Duties of State Board;

adjournment. (NRS 361.375, 361.395)

     1.  During each annual session of the State

Board, the State Board will hold one or more hearings to:

     (a) Review the tax roll of each county, as

corrected by the county board;

     (b) Determine whether the property in this State

has been assessed uniformly in accordance with the methods of appraisal and at

the level of assessment required by law;

     (c) Determine whether the taxable values specified

in the tax roll of any county must be increased or decreased to equalize

property valuations in this State; and

     (d) Take such additional actions as it deems

necessary to carry out the provisions of NRS 361.395.

     2.  Subject to the time limitations specified

in NRS 361.380, the State Board

may adjourn its annual session from time to time until it has completed its

duties pursuant to NRS 361.395

for the applicable fiscal year.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.660  Information to be considered by State Board. (NRS 361.375,

361.395)  In

determining whether the property in this State has been assessed uniformly in

accordance with the methods of appraisal and at the level of assessment

required by law, the State Board will consider:

     1.  The tax roll of each county, as corrected

by the county board and filed with the Secretary pursuant to NRS 361.390;

     2.  The central assessment roll prepared

pursuant to NRS 361.3205;

     3.  The results of any relevant ratio study

conducted by the Department pursuant to NRS 361.333;

     4.  The results of any relevant audit of the

work practices of a county assessor performed by the Department pursuant to NRS 361.333 to determine whether a

county has adequate procedures to ensure that all property subject to taxation

is being assessed in a correct and timely manner;

     5.  Any relevant evidence submitted to a

county board or the State Board pursuant to NRS 361.355;

     6.  Any information provided to the State

Board pursuant to NAC 361.661, 361.662 and 361.663; and

     7.  Any other information the State Board

deems relevant.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.661  Provision of certain information by county assessor upon request

of State Board. (NRS 361.375, 361.395)

     1.  In addition to the information contained

in the tax roll filed with the Secretary pursuant to NRS 361.390, a county assessor

shall, upon the request of the State Board, provide any information the State

Board deems necessary to carry out the provisions of NRS 361.395, including, without

limitation:

     (a) The assessor’s parcel number for any parcel of

property.

     (b) The taxable value and assessed value determined

for any land, improvements or personal property before and after any

adjustments to those values by the county board.

     (c) The value per unit determined for any land or

personal property before and after any adjustments to that value by the county

board.

     (d) Land use codes for the county.

     (e) Market areas in the county.

     (f) The year in which any improvements were built.

     (g) The classification of quality for any

improvements.

     (h) The size of any improvements.

     (i) The size of any lot.

     (j) The zoning of any property.

     (k) The date of the most recent sale of any

property and the sales price of the property.

     (l) Summary statistics concerning taxable values

and assessed values for tax districts, market areas, neighborhoods and land use

codes, including, without limitation, the applicable medians and modes.

     2.  If the State Board desires a county

assessor to provide any information pursuant to this section, the State Board

will require the Department to send to the county assessor by regular mail a

notice of the request which describes the information requested and the format

and type of media in which the information is requested. The county assessor

shall submit the information to the State Board, in the format and type of

media requested, within 10 business days after the date of the postmark on the

notice of the request or such a longer period as the State Board, upon the

request of the county assessor, may allow.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.662  Ratio studies and other statistical analyses: Performance upon

request of and evaluation by State Board. (NRS 361.375, 361.395)

     1.  Upon the request of the State Board, the

Department or county assessor shall perform and submit to the State Board any

ratio study or other statistical analysis that the State Board deems

appropriate to assist it in determining the quality and level of assessment of

any class or group of properties in a county.

     2.  Each ratio study or other statistical

analysis requested by the State Board pursuant to this section must:

     (a) Be performed in accordance with the provisions

of the Standard on Ratio Studies adopted by reference in NAC 361.658, except any specific provision of the Standard

on Ratio Studies that conflicts or is inconsistent with the laws of this

State or any regulations adopted by the State Board or the Commission;

     (b) Identify the statistical population that is the

subject of the ratio study or statistical analysis, which may be divided into

two or more strata according to neighborhood, age, type of construction or any

other appropriate criterion or set of criteria; and

     (c) Include an adequate sampling of each stratum

into which the statistical population that is the subject of the ratio study or

statistical analysis is divided, and such statistical criteria as may be

required, to indicate an accurate ratio of assessed value to taxable value and

an accurate measure of equality in assessment.

     3.  The State Board will determine the

appropriate time frame from which sales of property may be considered in any

ratio study or statistical analysis requested pursuant to this section. If the

State Board determines that the appropriate time frame is any period other than

the 36 months immediately preceding July 1 of the year before the applicable

lien date, the State Board will provide the reasons for that determination to

the Department or county assessor.

     4.  The State Board will evaluate each ratio

study and statistical analysis performed pursuant to this section to determine

whether the ratio study or statistical analysis reliably indicates the quality

and level of assessment for the applicable class or group of properties. In

making that determination, the State Board will consider:

     (a) Whether the Department or county assessor used

a sufficient number of sales or appraisals in performing the ratio study or

statistical analysis;

     (b) Whether the samples of property selected by the

Department or county assessor adequately represent the total makeup of the

applicable class or group of properties;

     (c) Whether the Department or county assessor

correctly adjusted the samples of property for market conditions;

     (d) Whether any variations among sales or appraisal

ratios affect the reliability of the ratio study or statistical analysis; and

     (e) Any other matters the State Board deems

relevant.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.663  Investigation and evaluation by Department of procedures and

operation of county assessor. (NRS 361.375, 361.395)  Before making any

determination concerning whether the property in a county has been assessed

uniformly in accordance with the methods of appraisal required by law, the

State Board will require the Department to:

     1.  Conduct a systematic investigation and

evaluation of the procedures and operations of the county assessor; and

     2.  Report to the State Board its findings

concerning whether the county assessor has appraised the property in the county

in accordance with the methods of valuation prescribed by statute and the

regulations of the Commission.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.664  Preliminary finding that class or group of properties was not

assessed uniformly in accordance with methods of appraisal and at level of

assessment required by law: Scheduling and notice of hearing. (NRS 361.375,

361.395)

     1.  If the State Board, after considering the

information described in NAC 361.660, makes a

preliminary finding that any class or group of properties in this State was not

assessed uniformly in accordance with the methods of appraisal and at the level

of assessment required by law, the State Board will:

     (a) Schedule a hearing concerning that preliminary

finding on a date which is not less than 10 business days after the notice of

the hearing is mailed pursuant to paragraph (b).

     (b) Require the Department to send by registered or

certified mail a notice of the hearing to the county clerk, county assessor,

district attorney and chair of the county board of each county in which any of

the property is located. A legal representative of the county may waive the

receipt of such notice.

     (c) Require the Secretary to provide a copy of the

notice of the hearing to the Commission and to the board of county

commissioners of each county in which any of the property is located.

     2.  The notice of the hearing must state:

     (a) The date, time and location of the hearing;

     (b) The information on which the State Board relied

to make its preliminary finding that the class or group of properties was not

assessed uniformly in accordance with the methods of appraisal and at the level

of assessment required by law; and

     (c) The proposed order of the State Board.

     3.  The Department shall include with each

notice provided pursuant to paragraph (b) of subsection 1, and upon the request

of any interested person, provide to that person, a copy of any analysis or

other information considered by the State Board in making its preliminary

finding that the class or group of properties was not assessed uniformly in

accordance with the methods of appraisal and at the level of assessment

required by law.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.665  Hearing on preliminary finding: Order of State Board; additional

hearing following order for reappraisal. (NRS 361.375, 361.395)

     1.  Upon the completion of a hearing

scheduled pursuant to NAC 361.664, the State Board

will issue:

     (a) An order stating that the State Board will take

no action on the matter and specifying the reasons that no action will be

taken;

     (b) An order referring the matter to the Commission

for the Commission to take such action within its jurisdiction as the

Commission deems to be appropriate;

     (c) An order requiring the reappraisal by the

county assessor of a class or group of properties in a county; or

     (d) Except as otherwise provided in this paragraph,

if a ratio study or other statistical analysis performed pursuant to NRS 361.333 or NAC 361.662 indicates with a confidence level of at

least 95 percent that the median assessment ratio for any class or group of

properties is less than 32 percent or more than 36 percent, an order increasing

or decreasing the assessed valuation of that class or group of properties by

such a factor as the State Board deems to be appropriate to cause the median

assessment ratio to be not less than 32 percent and not more than 36 percent.

The State Board will not issue such an order if the application of the factor

would cause the coefficient of dispersion calculated for the class or group of

properties to fail to meet the recommendations set forth in the Standard on

Ratio Studies adopted by reference in NAC 361.658.

     2.  If the State Board orders the reappraisal

of a class or group of properties pursuant to this section, the State Board

will:

     (a) Schedule an additional hearing to determine

whether to issue an order:

          (1) Stating that the State Board will take no

further action on the matter and specifying the reasons that no further action

will be taken;

          (2) Referring the matter to the Commission for

the Commission to take such action within its jurisdiction as the Commission

deems to be appropriate; or

          (3) Increasing or decreasing the taxable

valuation of the class or group of properties in accordance with the

reappraisal or in such other manner as the State Board deems appropriate to

equalize property valuations.

     (b) Require the Department to send by registered or

certified mail, not less than 10 business days before the date of the

additional hearing, notice of the date, time and location of the hearing to the

county clerk, county assessor, district attorney and chair of the county board

of the county in which the property is located. A legal representative of the

county may waive the receipt of such notice.

     (c) Require the Secretary to notify the Commission

and the board of county commissioners of the county in which the property is

located, of the date, time and location of the hearing.

     3.  Each order issued pursuant to this

section must include a statement of any pertinent findings of fact made by the

State Board. If the State Board issues an order pursuant to this section:

     (a) Requiring the reappraisal of a class or group

of properties, the order must specify:

          (1) The class or group of properties affected;

          (2) The purpose and objectives of the

reappraisal; and

          (3) The procedures required for the

reappraisal, including the particular methods of appraisal prescribed by the

regulations of the Commission.

     (b) Increasing or decreasing the valuation of any

class or group of properties, the order must specify:

          (1) The class or group of properties affected;

and

          (2) The amount of or the formula to be used to

calculate the amount of that increase or decrease.

     4.  Upon the issuance of any order pursuant

to this section:

     (a) The Department shall send a copy of the order:

          (1) By certified mail to the county assessor

of each affected county; and

          (2) By regular mail to the county clerk and

chair of the county board of each affected county; and

     (b) The Secretary shall provide:

          (1) A copy of the order to the Commission; and

          (2) Any certification and notice required to

carry out the provisions of NRS

361.405.

     5.  As used in this section, “assessment

ratio” means the ratio of assessed value to taxable value.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.666  Hearings: Provision of notice by Department. (NRS 361.375,

361.395)

     1.  The State Board will require the Department

to place on the Internet website maintained by the Department, not less than 10

business days before the date of each hearing scheduled pursuant to NAC 361.664 or 361.665, a

copy of the notice of the hearing and of the agenda for the meeting at which

the State Board will conduct the hearing.

     2.  If the State Board proposes to issue an

order increasing the valuation of any class or group of properties at any

hearing scheduled pursuant to NAC 361.664 or 361.665, the State Board will require the Department

to provide to each interested person the notice of the hearing required by

subsection 2 of NRS 361.395. If

the notice is not provided to an interested person by personal service and the

mailing address of that person is not available, the Department must send the

notice of the hearing by registered or certified mail to the address of the

relevant property or, if the interested person has designated a resident agent

pursuant to chapter 77 of NRS, the

address of that resident agent as it appears in the records of the Secretary of

State. For the purposes of subsection 2 of NRS 361.395, the State Board

construes the term “interested person” to have the meaning ascribed to it in NAC 361.653.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.667  Hearings: Persons required to appear; conduct. (NRS 361.375,

361.395)

     1.  The following persons shall appear at

each hearing scheduled pursuant to NAC 361.664 or 361.665:

     (a) The county assessor of each county in which any

of the property that is the subject of the hearing is located or a

representative of the county assessor.

     (b) A representative of the county board of each

county in which any of the property that is the subject of the hearing is

located.

     2.  At each hearing scheduled pursuant to NAC 361.664 or 361.665:

     (a) The State Board will receive testimony under

oath from interested persons.

     (b) The county assessor or his or her

representative, the representative of the county board and a representative of

the board of county commissioners of each county in which any of the property

that is the subject of the hearing is located may:

          (1) Provide additional information and

analysis in support of or in opposition to any proposed order of the State

Board; and

          (2) Show cause why the State Board should not

increase or decrease the valuation, or require a reappraisal, of the pertinent

class or group of properties in the county.

     3.  A hearing scheduled pursuant to NAC 361.664 or 361.665 may

be held by means of a video teleconference between two or more locations if the

video technology used at the hearing provides the persons present at each

location with the ability to hear and communicate with the persons present at

each other location.

     4.  The presiding member of the State Board

may exclude any disruptive person from the hearing room.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.668  Order of State Board increasing or decreasing valuation of property:

Duties of county assessor and Department. (NRS 361.375, 361.395)  If the State Board orders

any increase or decrease in the valuation of any property in a county pursuant

to NAC 361.665:

     1.  The county assessor of the county shall,

on or before June 30 immediately following the issuance of the order or such a

later date as the State Board may require, file with the Department the

assessment roll for the county, as adjusted to carry out that order; and

     2.  The Department shall, on or before August

1 immediately following the issuance of the order or such a later date as the

State Board may require:

     (a) Audit the records of the county assessor of the

county to the extent necessary to determine whether that order has been carried

out; and

     (b) Report to the State Board its findings

concerning whether the county assessor has carried out that order.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.669  Reconsideration of order of State Board. (NRS 361.375,

361.395)  The

State Board may reconsider any order issued pursuant to NAC

361.665 in the manner provided in NAC 361.7475,

except that:

     1.  A petition for reconsideration must be

filed with the Secretary within 5 business days after the date on which the

order was mailed to the petitioner; and

     2.  If the State Board takes no action on the

petition within 10 business days after the date the petition was filed with the

Secretary, the petition shall be deemed to be denied.

     (Added to NAC by St. Bd. of Equalization by R153-09, 4-20-2010,

eff. 10-1-2010)

PROCEEDINGS BEFORE STATE BOARD OF EQUALIZATION

General Provisions

      NAC 361.682  Scope; construction; deviation. (NRS 361.375, 361.395)

     1.  The provisions of NAC

361.682 to 361.753, inclusive:

     (a) Govern the practice and procedure in contested

cases before the State Board.

     (b) Except where inconsistent with the provisions

of NAC 361.650 to 361.669,

inclusive, apply to proceedings before the State Board to carry out the

provisions of NRS 361.395.

     (c) Will be liberally construed to secure the just,

speedy and economical determination of all issues presented to the State Board.

     2.  In special cases, where good cause

appears, not contrary to statute, deviation from these rules, if stipulated to

by all parties of record, will be permitted.

     [St. Bd. of Equalization, Practice Rules 1, 3 & 4,

eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006; R153-09, 4-20-2010,

eff. 10-1-2010)

      NAC 361.684  Definitions. (NRS 361.375)  As used

in NAC 361.682 to 361.753,

inclusive, unless the context otherwise requires:

     1.  “Assessor’s parcel number” means the

number assigned by a county assessor to each piece of real property separately

owned as it appears on the county assessment roll.

     2.  “Authorized agent” means a person who is

authorized by a party to represent him or her in a proceeding before the State

Board. The term includes an attorney.

     3.  “Business entity” includes a corporation,

a limited partnership or a limited-liability company.

     4.  “Conclusion of law” means a determination

of the law applicable to a finding of fact.

     5.  “Contact person” means a person

designated by a party to receive communications concerning a proceeding before

the State Board.

     6.  “County board” means a county board of

equalization.

     7.  “Day” means a calendar day.

     8.  “Direct appeal” means an appeal from an

assessment by a county assessor, the Department or the Commission directly to

the State Board without appearing before or requesting relief from a county

board. The term includes an appeal authorized in NRS 361.360, 361.403, 361.769, 361A.273 or 362.135.

     9.  “Finding of fact” means a brief statement

of the determination of issues of fact supported by evidence in the record or

matters officially noticed.

     10.  “Identifying number” means the number

assigned to each piece of personal property separately owned as represented by

the county assessment rolls.

     11.  “Party” means a person, government,

governmental agency or political subdivision of a government entitled to appear

in a proceeding of the State Board. The term includes an intervener.

     12.  “Secretary” means the Secretary of the

State Board who is the Executive Director of the Department.

     13.  “Staff” means the staff of the

Department. The term includes the Attorney General and the duly appointed

deputies of the Attorney General when acting as legal advisers to the

Department pursuant to NRS 228.110.

     14.  “State Board” means the State Board of

Equalization.

     [St. Bd. of Equalization, Practice Rules 5, 12 &

13, eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.686  Meetings: Notice; telephone conference; conduct. (NRS 361.375,

361.380)

     1.  The State Board will post notices for

each meeting at the Carson City, Reno, Las Vegas and Elko offices of the

Department 3 working days in advance of the meeting.

     2.  The State Board may conduct a meeting or

any part thereof by means of a telephone conference call so long as it complies

with the applicable provisions of chapter

241 of NRS.

     3.  A person appearing in a proceeding shall

conform to the recognized standards of ethical and courteous conduct.

     [St. Bd. of Equalization, Practice Rules 17 & 28,

eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)

      NAC 361.688  Communications. (NRS 361.375)

     1.  Informal communications must be addressed

or delivered to the Secretary.

     2.  Informal communications from the staff or

State Board must be signed by the responsible staff or member of the State

Board.

     3.  Each communication must be limited to one

subject and contain the name and address of the communicant and the appropriate

assessor’s parcel number or legal description of any property pertaining to the

subject of the communication.

     [St. Bd. of Equalization, Practice Rules 14 & 16,

eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)

Parties to Proceedings

      NAC 361.690  Classification of parties. (NRS 361.375)

     1.  “Intervener” means a person, government,

governmental agency or political subdivision of a government, other than an

original party to a proceeding, who has been granted leave to intervene in a

proceeding pursuant to NAC 361.692.

     2.  “Petitioner” means a party who initiates

or commences an administrative proceeding before the State Board pursuant to

the provisions of chapter 361 of NRS.

     3.  “Respondent” means a party who responds

to an administrative proceeding initiated or commenced by a petitioner.

     [St. Bd. of Equalization, Practice Rules 8-10, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.692  Interveners. (NRS 361.375)

     1.  A person, government, governmental agency

or political subdivision of a government, other than an original party to any

proceeding, who is directly and substantially affected by the proceeding must

secure an order from the Secretary or the State Board granting leave to

intervene before being allowed to participate. For the purposes of review by a

court or an appeal, leave to intervene in any matter or proceeding is not a

finding or determination of the Secretary or the State Board that the party

will or may be a party aggrieved by any ruling, order or decision.

     2.  A petition for leave to intervene must be

in writing and clearly identify the proceeding in which intervention is sought.

The petition must include all the information required of a petition for a

direct appeal pursuant to NAC 361.7012 and contain

a clear and concise statement of the direct and substantial interest of the

intervener in the proceeding, stating the manner in which the intervener will

be affected by the proceeding and outlining the matters relied upon by him or

her as a basis for the petition for leave to intervene. If affirmative relief

is sought, the petition must contain a clear and concise statement of the

relief sought and the basis for that relief, together with a statement as to

the nature and quantity of evidence the intervener will present if his or her

petition is granted.

     3.  A petition for leave to intervene must be

filed with the Secretary and served on each party of record not less than 15

days before the date set for the commencement of the hearing.

     4.  If a petition for leave to intervene

shows a direct and substantial interest in the subject matter of the proceeding

or any part of the proceeding and does not unduly broaden the issues, the Secretary

or the State Board may grant leave to intervene or otherwise appear and

participate in the proceeding with respect to the matters set forth in the

petition, subject to any reasonable conditions that may be prescribed.

     5.  If it appears during the course of a

proceeding that an intervener has no direct or substantial interest in the

proceeding, and that the public interest does not require his or her

participation in the proceeding, the State Board may dismiss the intervener

from the proceeding.

     [St. Bd. of Equalization, Practice Rules 43-46, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.698  Qualifications of attorneys. (NRS 361.375, 361.385)  If a party chooses to be

represented by an attorney, the attorney must be one who is admitted to

practice and in good standing before the highest court of any state of the

United States.

     [St. Bd. of Equalization, Practice Rule 27, eff. 10-14-77]

      NAC 361.700  Limitations on representation of parties and appearance as expert

witness by former employees of Department or Attorney General. (NRS 361.375,

361.385)

     1.  No former employee of the Department or

member of the Attorney General’s staff may, at any time after severing his or

her employment with the Department or the Attorney General, appear, except with

the written permission of the State Board, in a representative capacity on

behalf of other parties in a proceeding in which he or she previously took an

active part as a representative of the State Board or Department.

     2.  No former employee of the Department may

at any time after severing his or her employment with the Department, appear,

except with the written permission of the State Board, as an expert witness on

behalf of other parties in a proceeding in which he or she previously took an

active part in the investigation or preparation as a representative of the

Department.

     [St. Bd. of Equalization, Practice Rules 29 & 30,

eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)

Hearings

      NAC 361.701  Petition for appeal of final decision of county board. (NRS 361.375)

     1.  A person entitled to appeal the final

decision of a county board to the State Board pursuant to NRS 361.360 must file a petition

requesting the State Board to hear his or her appeal.

     2.  The petition must be on the form

prescribed by the State Board and must include:

     (a) The name and mailing address of the petitioner

and the petitioner’s contact person, if any;

     (b) The telephone number for daytime business hours

and facsimile number, if available, of the petitioner and the petitioner’s

contact person, if any;

     (c) The electronic mail address, if available, of

the petitioner and the petitioner’s contact person, if any;

     (d) The tax years being appealed;

     (e) The assessor’s parcel number or identifying

number of the property on which the petitioner is appealing the valuation;

     (f) The name of the county board, the hearing or

case number, and the date the case was heard by the county board;

     (g) The name and mailing address of the respondent

if the petition is filed by the county assessor or the Department;

     (h) The taxable value established by the county

assessor as set forth on the secured or unsecured tax roll and the current

taxable value determined by the county board, if different, on which the

assessment of the property is based;

     (i) A statement that the petitioner has read the

petition and believes the contents to be true, followed by the person’s

signature, or the signature of the authorized agent, if any; and

     (j) A brief statement of the relief sought or the

specific taxable value sought for each component of the parcel such as land,

improvements or personal property.

     3.  The State Board will provide a form of

the petition to each county assessor and county clerk. The State Board will,

and the county assessor and county clerk shall, make available a copy of the

form to any person.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.7012  Petition for direct appeal to State Board. (NRS 361.375)

     1.  A person entitled to file a direct appeal

must file a petition with the State Board requesting the State Board to hear

his or her appeal.

     2.  The petition must be on the form

prescribed by the State Board and must include:

     (a) The name and mailing address of the petitioner

and the petitioner’s contact person, if any;

     (b) The telephone number for daytime business hours

and facsimile number, if available, of the petitioner and the petitioner’s

contact person, if any;

     (c) The electronic mail address, if available, of

the petitioner and the petitioner’s contact person, if any;

     (d) The tax years being appealed;

     (e) The assessor’s parcel number or other

identifying number of the property being appealed;

     (f) The roll value established by the county

assessor or the Department, as applicable;

     (g) The name and mailing address of the respondent

if the petition is filed by a county assessor or the Department; and

     (h) A statement that the petitioner has read the

petition and believes the contents to be true, followed by the person’s

signature, or the signature of the authorized agent, if any.

     3.  The State Board will annually provide a

form of the petition to the Department, and each county assessor, who shall

provide a copy of the form to any person upon request.

     4.  In addition to the information required

pursuant to subsection 2, a petitioner must submit:

     (a) A statement reciting the facts, reasons and

statutory basis relied upon to support the claim that the State Board should

order a change in the taxable value or classification of the subject property;

     (b) All evidence upon which the petition is based

and which supports the claims therein;

     (c) A copy of the final tax assessment notice for

the year in question on the property that is the subject of the appeal; and

     (d) A statement of the relief sought.

Ê This

information must be submitted on the date of filing of the petition, if

available, and if not available on the date of filing, not later than 15 days

before the date established for the hearing.

     5.  If the appeal is from a valuation

established pursuant to NRS 361.320

or 361.325, the petition must be

filed not later than January 15 of the year immediately following the year in

which the valuation was made.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.7014  Action upon receipt of petition; case file. (NRS 361.375)

     1.  The State Board will acknowledge the

receipt of each petition in writing.

     2.  The Secretary shall examine each petition

upon receipt.

     3.  If the Secretary’s examination reveals

that:

     (a) The petition is untimely filed; or

     (b) It appears that the State Board lacks

jurisdiction to hear the appeal,

Ê the Secretary

shall recommend to the State Board that it order the appeal to be dismissed.

The recommended order must be placed on the consent agenda of the next meeting

of the State Board for which public notice pursuant to NRS 241.020 has not yet been given,

and the Secretary shall notify the petitioner, or the petitioner’s authorized

agent, of the time and place of the meeting at which the recommended order will

be considered.

     4.  If the Secretary’s examination reveals

that:

     (a) The petition is timely filed;

     (b) The appeal appears to be within the

jurisdiction of the State Board; and

     (c) The petition satisfies the applicable

requirements of NAC 361.701 or 361.7012,

Ê the Secretary

shall assign a case number to the appeal, place the appeal on the State Board’s

hearing docket and notify the petitioner and respondent that the case has been

docketed for a hearing.

     5.  The Secretary shall, for each docketed

case:

     (a) Establish a case file;

     (b) As each petition, exhibit, report, paper,

pleading or other documentary evidence is received, mark it with the case number

and place it in the case file; and

     (c) If the appeal is from the final decision of a

county board, notify the county clerk that the case has been docketed for a

hearing and request the transmission of a certified copy of the record as set

forth in NAC 361.645.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.7016  Consolidation of cases. (NRS 361.375)

     1.  If two or more docketed cases present

substantially the same issues of fact, law or valuation, the State Board may,

on its own motion or upon the request of a party, consolidate the cases for

purposes of a hearing or written decision.

     2.  The State Board may move to consolidate

cases at any time. A request for consolidation from a party must be filed with

the State Board and served on all other parties not later than 30 days before

the date established for the hearing.

     3.  A party who objects to the proposed

consolidation of his or her case may request that his or her case be heard

separately. The State Board will not proceed with a consolidated hearing until

after it has ruled on the request for a separate hearing.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.7018  Notice of representation by authorized agent. (NRS 361.375)

     1.  A petitioner who desires to be

represented by an authorized agent must notify the State Board in writing. The

notice may be filed with the State Board at any time before the commencement of

the hearing. The State Board will accept a notice filed by facsimile

transmission, but the original document must be filed with the State Board

before the commencement of the hearing.

     2.  Except as otherwise provided in this

section, the written notification must be on the form prescribed by the State

Board. The notice must include:

     (a) The date the authorization statement is executed;

     (b) The specific parcels or assessments covered by

the authorization or a statement that the agent is authorized to represent the

petitioner on all parcels and assessments located in Nevada or in a specific

county in Nevada;

     (c) A statement to the effect that the agent is

authorized to sign and file petitions in the specific calendar year in which

the petition is filed and that the agent is authorized to represent the

petitioner in all related hearings and matters; and

     (d) Contact information, including the telephone

number and address of the petitioner.

     3.  The notification must be signed by:

     (a) The petitioner or, if the petitioner is a

business entity, by an officer or authorized employee of the business entity;

and

     (b) The authorized agent.

     4.  If an authorized agent required to comply

with NRS 361.362 to represent a

petitioner before a county board wishes to represent the petitioner in an

appeal to the State Board, the State Board will accept a copy of the written

notice of authority filed with the county board as the notice required pursuant

to this section so long as the other requirements of this section are met.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.702  Notice of hearing; duties of county assessor or representative of

county assessor. (NRS 361.375)

     1.  The State Board will give reasonable

notice of any hearing held before it to each party or the authorized agent of a

party at the address of each of those persons as those addresses appear in the

records of the Department.

     2.  The State Board will notify the

appropriate county assessor of a hearing relating to any property in his or her

county or which may have a direct effect upon his or her county. The county

assessor or a representative of the county assessor shall:

     (a) Attend any hearing specified in this

subsection, unless otherwise directed by the State Board; and

     (b) Make any presentation prescribed by the State

Board.

     [St. Bd. of Equalization, Practice Rules 19-21, eff. 10-14-77]—(NAC

A 1-6-84; R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.703  Briefs, memoranda and other written explanations. (NRS 361.375)

     1.  The State Board may, at any time, require

a party to submit a brief, memorandum or other written explanation. The State

Board will prescribe:

     (a) The time for filing;

     (b) The number of copies that must be filed with

the State Board; and

     (c) The parties that must be served, if any.

     2.  If the State Board does not require

submission of a brief, memorandum or other written explanation, a party may

submit such a written explanation on his or her own initiative. Unless the

State Board otherwise directs, the written explanation must be filed with the

State Board and served on the other parties at least 20 days before the date

established for the hearing.

     3.  A party may respond in writing to a

brief, memorandum or other written explanation filed by another party. Unless

the State Board otherwise directs, the written explanation must be filed with

the State Board and served on the other parties not later than 10 days before

the date established for the hearing.

     4.  A party served with a response to a

brief, memorandum or other written explanation may reply in writing. Unless the

State Board otherwise directs, the written explanation must be filed with the

State Board and served on the other parties not later than 3 days after service

of the response.

     5.  A party must not include in or attach to

his or her brief, memorandum or other written explanation an exhibit, paper,

report or other documentary evidence that is included in the record submitted

to the State Board.

     6.  A brief, memorandum or other written

explanation filed with the State Board pursuant to this section may be filed

electronically, but the State Board may require a party to file the original

document.

     7.  Unless otherwise provided by the State

Board, the Secretary may perform any administrative function of the State Board

set forth in this section.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.705  Motions by parties; action by State Board on its own motion. (NRS 361.375)

     1.  A party may make a motion orally during a

hearing or in writing.

     2.  A motion must state with particularity

the relief or order sought and identify the reason or authority pursuant to

which the motion is made.

     3.  A written motion must be filed with the

State Board and served on all parties not later than 20 days before the date

established for the hearing.

     4.  A party against whom a motion is directed

may respond to the motion:

     (a) Orally, if the motion is made during the

hearing; or

     (b) In writing, if the motion is made before the

hearing. A written response must be filed with the State Board and served on

all parties within 10 days after service of the motion.

     5.  A party who has made a motion in writing

and been served with a written response may, within 7 days after service of the

response, reply to the response in a writing filed with the State Board and

served on all parties.

     6.  The State Board may, for good cause, take

action on its own motion. Unless its motion is made orally during the hearing,

the State Board will serve each party with notice of its intent to take action

and the reasons therefore. A party who receives the State Board’s notice of

intent and wishes to object to it must file his or her objection in writing

with the State Board within 10 days after service of the notice. The State

Board’s notice of intent must advise a party of his or her right to file a

written objection.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.706  Continuances. (NRS 361.375)

     1.  The State Board may, upon good cause

shown, grant a continuance:

     (a) To defer a hearing to another day or time; or

     (b) To extend the time for a pleading, motion or

other document to be filed or served.

     2.  Unless otherwise provided by the State

Board, the Secretary may perform any function of the State Board set forth in

this section.

     [St. Bd. of Equalization, Practice Rule 37, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.708  Appearance of parties; failure to appear. (NRS 361.375)

     1.  A party may appear in person or by his or

her authorized agent.

     2.  If the property the valuation of which is

the subject of a hearing is owned by more than one person, the appearance of

any owner or the person who filed the petition shall be deemed the appearance

of the party.

     3.  If a party is a business entity, it may

appear by any officer or employee or by an authorized agent.

     4.  At the time and place set for the

hearing, if a party fails to appear, the State Board may:

     (a) Proceed with the hearing;

     (b) Dismiss the proceeding with or without

prejudice; or

     (c) Recess the hearing for a period to be set by

the State Board to enable the party to attend.

     [St. Bd. of Equalization, Practice Rule 31, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.712  Subpoenas. (NRS 360.240, 361.375)

     1.  Subject to the restrictions imposed by NRS 360.240, the Secretary may, on

his or her own initiative or at the request of a party, issue a subpoena

requiring the attendance of a witness for the purpose of taking the testimony

of the witness orally before the State Board or compelling the production of

books, papers or other documents.

     2.  A petitioner or respondent desiring a

subpoena must submit an application in writing to the Secretary stating the

reasons why the subpoena is requested. If the application is for a subpoena for

the production of books, papers or other documents, the application must

identify, as clearly as may be, the books, papers or other documents desired.

     3.  The application must be filed with the

Secretary and served on all parties at least 20 days before the date

established for the hearing.

     4.  The Secretary, not later than 5 days

after he or she receives an application for a subpoena, shall:

     (a) Grant the application and issue the subpoena;

     (b) Modify the application and issue the subpoena;

or

     (c) Deny the application.

     5.  The person to whom the subpoena is

directed may request in writing that the Secretary modify or quash the

subpoena. The Secretary shall grant this request if he or she determines that

the subpoena is unreasonable or oppressive.

     6.  If the Secretary issues a subpoena at the

request of a party, the party must arrange for service of the subpoena and bear

the expense of such service.

     7.  If the Secretary denies the request of a

party for a subpoena, the party may appeal the denial to the State Board.

     [St. Bd. of Equalization, Practice Rule 23, eff. 12-9-77]—(NAC

A by R029-05, 6-28-2006)

      NAC 361.714  Testimony must be under oath. (NRS 361.375)

     1.  Oral evidence will be taken only upon

oath or affirmation administered by:

     (a) The Secretary;

     (b) A member of the State Board; or

     (c) A member of the staff who has been designated

for that purpose by the State Board.

     2.  Before testifying, each person must swear

or affirm that the testimony he or she is about to give will be the truth, the

whole truth and nothing but the truth.

     [St. Bd. of Equalization, Practice Rule 25, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.720  Official notice of State Board. (NRS 361.375)  The

State Board may take official notice of the following matters:

     1.  Rules, regulations, official reports,

decisions and orders of the Commission, the State Board or any agency of the

State.

     2.  Matters of common knowledge and technical

or scientific facts of established character.

     3.  Official documents, if pertinent, when

properly introduced into the record of formal proceedings by reference if

proper and definite reference to the document is made by the party offering it

and it is published and generally circulated so that all of the parties of

interest at the hearing have an opportunity to examine it and present rebuttal

evidence.

     4.  Matters which may be judicially noticed

by the courts of the State.

     [St. Bd. of Equalization, Practice Rule 38, eff. 10-14-77]—(NAC

A by R029-05, 6-28-2006)

      NAC 361.721  Format, execution and contents of documents. (NRS 361.375)  All

petitions, pleadings, briefs, correspondence, notices and other written

documents filed with the State Board must be on white paper that is 8 1/2 by 11

inches in size and must be legibly written, printed or typewritten on one side

of the paper only. Each document must be signed by the party, or authorized

agent of the party, submitting it and must include the current mailing address

and telephone number of the submitter. Documents submitted after the assignment

of a case number pursuant to NAC 361.7014 must

include the case number assigned.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.723  Filing and receipt of documents; admission of late document into

evidence. (NRS 361.375)

     1.  Any petition, pleading, brief,

correspondence, notice or other written document required or authorized to be

filed with the State Board may be filed in person or by facsimile machine,

United States mail or third-party delivery service.

     2.  A document filed in person or by

facsimile machine must be received by the State Board not later than 5 p.m. on

the last day for filing the document set forth in the applicable statute or

regulation. The State Board will stamp each document filed with the date and

time it is received. A document is presumed to have been received at the date

and time shown on the stamp.

     3.  Except as otherwise provided in this

subsection, a document filed by mail or third-party delivery service is timely

filed if it is deposited with the post office or delivery service, correctly

addressed, postage prepaid and postmarked not later than the last day for filing

the document set forth in the applicable statute or regulation. A postmark

provided by a postage meter does not establish that a document is timely filed.

     4.  If the last day set forth in a statute or

regulation for the performance of an act falls on a Saturday, Sunday or legal

holiday, the act is timely if it is performed on the next business day. For the

purposes of this section, the performance of an act includes, without

limitation, filing a document with the State Board and serving a document on a party.

     5.  The State Board will not admit into

evidence a document that is not timely filed as set forth in this section

except upon a motion for its admission pursuant to NAC

361.705.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.724  Service of documents; certificate of service. (NRS 361.375)

     1.  A document that is required to be served

on another party may be served on the party or authorized agent of the party.

     2.  A document that is required to be served

on a party may be served in person or by regular mail.

     3.  If service is made by mail, the document

must be deposited in the post office, properly addressed to the person being

served, with postage prepaid, not later than the date set forth in the

applicable regulation or order of the State Board.

     4.  With all documents required to be served,

an acknowledgment of service or substantially the following certificate must be

included:

 

CERTIFICATE OF SERVICE

 

I hereby certify that I have this day

served the foregoing document upon all parties of record in this proceeding (by

delivering a copy thereof in person to .........................) (by mailing a

copy thereof, properly addressed, with postage prepaid to

.........................).

 

Dated at this ............. day of

the month of ........... of the year .........

...................................

                                                                                                                             Signature

 

     [St. Bd. of Equalization, Practice Rule 15, eff. 10-14-77]—(NAC

A by R029-05, 6-28-2006)

      NAC 361.726  Additional information and appraisal. (NRS 361.375)  The

State Board will order any additional information it deems necessary to

determine the correct taxable value of any property under consideration and, if

necessary, order the Department’s appraisers to view or appraise the property

and to prepare for the State Board an estimate of its value or other relevant

testimony and evidence.

     [St. Bd. of Equalization, Practice Rule 35, eff. 10-14-77]—(NAC

A 1-6-84; R029-05, 6-28-2006)

      NAC 361.729  Testimony before State Board: Authority to testify; person who

unlawfully acts as appraiser of real estate. (NRS 361.375)

     1.  Any person may testify before the State

Board on behalf of a party.

     2.  If a person testifying before the State

Board represents to the State Board that he or she is an appraiser of real estate

but has not obtained a certificate, license or permit required by chapter 645C of NRS, the State Board

will, unless the circumstances of the case otherwise require, give the person’s

testimony the same weight given to the testimony of a person who is not an

appraiser.

     3.  If a person specified in subsection 2

receives or expects to receive any form of compensation for an analysis,

opinion or conclusion concerning the nature, quality, value or use of property

the value of which is before the State Board, the State Board will inform the

person that:

     (a) It is unlawful to act or assume to act as an

appraiser of real estate in this State without first obtaining the appropriate

certificate, license or permit pursuant to chapter 645C of NRS; and

     (b) The State Board may notify the Real Estate

Division of the Department of Business and Industry of his or her conduct.

     4.  Upon informing a person pursuant to

subsection 3, the State Board may notify the Real Estate Division of the

Department of Business and Industry of the conduct specified in that

subsection.

     (Added to NAC by St. Bd. of Equalization by R018-97,

eff. 12-19-97; A by R029-05, 6-28-2006)

      NAC 361.731  Transcripts. (NRS 361.375)  If a

party wishes to obtain a transcript of any hearing conducted before the State

Board, the party must:

     1.  Provide a reporter, if a reporter is not

provided by the State Board for the hearing;

     2.  Pay for the transcript or obtain a copy

from the reporter provided by the State Board at the party’s expense; and

     3.  Provide a copy of the transcript to the

Secretary, if requested.

     (Added to NAC by St. Bd. of Equalization by R018-97,

eff. 12-19-97; A by R029-05, 6-28-2006)

      NAC 361.733  Direct appeal: Rights of petitioner, respondent and staff. (NRS 361.375)  During

any hearing of a direct appeal, the petitioner, respondent and staff, through

the presiding member of the State Board, may:

     1.  Call and examine witnesses concerning any

matter relevant to the issues of the case.

     2.  Introduce exhibits relevant to the issues

of the case.

     3.  Direct any question to an opposing

witness that the State Board determines is relevant to the issues of the case.

     4.  Impeach any witness, regardless of which

party first called the witness to testify.

     5.  Offer rebuttal evidence.

     6.  Call any person who, because of his or

her relationship to any other party, may be an adverse witness and examine the

person as an adverse witness.

     [St. Bd. of Equalization, Practice Rule 26, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.735  Direct appeal: Burden of proof; receipt of evidence. (NRS 361.375)  In any

hearing of a direct appeal:

     1.  The petitioner has the burden of proof.

     2.  Evidence will ordinarily be received from

the parties in the following order:

     (a) A brief orientation by the county assessor or

the county assessor’s staff;

     (b) The petitioner;

     (c) The respondent;

     (d) Interveners;

     (e) Rebuttal by the petitioner; and

     (f) Rebuttal by the respondent.

     3.  The Secretary or a person the Secretary

has designated shall mark, record and file all exhibits submitted at the

hearing.

     [St. Bd. of Equalization, Practice Rules 33 & 36,

eff. 10-14-77]—(NAC A 1-6-84; R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.737  Direct appeal: Rules of evidence; depositions; exchange of names

of witnesses and copies of evidence. (NRS 361.375)  In any

hearing of a direct appeal:

     1.  The hearing will not be conducted

according to the technical rules of evidence and procedure as practiced in

civil actions. Except as otherwise provided in NAC

361.745 or by a specific statute, any relevant evidence may be admitted, if

it is of a type commonly relied upon by reasonable and prudent persons in the

conduct of their affairs, regardless of whether the evidence is subject to

objection in civil actions.

     2.  Hearsay evidence, as that term is used in

civil actions, may be admitted to supplement or explain other evidence, but it

is not sufficient by itself to support findings of fact unless it is admissible

over objection in civil actions.

     3.  The rules of privilege will be applied as

they are applied in civil actions.

     4.  Irrelevant, cumulative and unduly

repetitious evidence is not admissible, nor is incompetent evidence, as that

term is used in civil trials, with the exception of hearsay evidence as

provided in subsection 2.

     5.  The parties or their counsel may, by

written stipulation, agree that certain specified evidence may be admitted,

regardless of whether the evidence is otherwise subject to objection.

     6.  The State Board may:

     (a) Cause the depositions of witnesses to be taken

in the manner prescribed by law and the rules of the court for depositions in

civil actions.

     (b) Upon the motion of a party or the person from

whom the deposition is sought, and upon a showing of good cause, prohibit,

restrict or modify the scope of the deposition.

Ê Unless the

State Board otherwise directs, all depositions conducted pursuant to this

section must be completed not later than 10 days before the date established

for the hearing. A party may file a motion with the State Board asking that

depositions be completed earlier or later. The State Board will grant such a

motion on a showing of good cause.

     7.  A party that objects to the admission or

exclusion of any piece of evidence must, at the time the party makes his or her

objection, briefly state the grounds on which he or she objects.

     8.  If the State Board sustains an objection

to the admission of certain evidence, the party offering the evidence may make

an offer of proof for the record. An offer of proof must consist of a statement

of the substance of the evidence to which objection has been sustained. An

offer of proof must be included in the record.

     9.  The failure of a party to enter a timely

objection to the admission or exclusion of a piece of evidence constitutes a

waiver of the party’s right to object.

     10.  Not later than 10 days before the date

established for the hearing, a party shall provide all other parties with:

     (a) The names of each witness that the party

expects to call to offer testimony at the hearing.

     (b) A copy of each exhibit, paper or other

documentary evidence that the party expects to introduce at the hearing.

     [St. Bd. of Equalization, Practice Rules 32 & 39,

eff. 10-14-77]—(NAC A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.739  Appeal of decision of county board: Introduction of new evidence.

(NRS

361.360, 361.375, 361.400)

     1.  In a hearing of an appeal of a decision

of a county board, a party that wishes to introduce evidence that was not

submitted to the county board in the first instance must:

     (a) Satisfy the State Board that the new evidence

could not, by due diligence, have been discovered or secured before the final

adjournment of the county board; and

     (b) Submit the evidence in writing to the State

Board and all parties of record not less than 7 business days before the

hearing on the matter.

     2.  For the purposes of this section:

     (a) A new summary or extract prepared from evidence

that was submitted to a county board in the first instance is not new evidence.

     (b) The State Board interprets “days” as used in NRS 361.360 to mean calendar days.

     (Added to NAC by St. Bd. of Equalization by R018-97,

eff. 12-19-97; A by R029-05, 6-28-2006)

      NAC 361.741  Appeal of decision of county board: Burden of proof; order and

length of presentations. (NRS 361.375)  In a

hearing concerning an appeal from a decision of a county board:

     1.  The petitioner has the burden of proof.

     2.  The order and length of presentations

will ordinarily be:

     (a) A brief orientation by the county assessor or

the county assessor’s staff;

     (b) A presentation of not more than 15 minutes by

the petitioner;

     (c) A presentation of not more than 15 minutes by

the respondent; and

     (d) A rebuttal of not more than 5 minutes by the

petitioner.

     3.  If the State Board allows a party,

pursuant to NRS 361.360 and 361.400 and NAC

361.739, to present new evidence, the State Board will extend the length of

the party’s presentation by the time required to present the evidence and, in

the case of new testimony, for the State Board to question the witness.

     (Added to NAC by St. Bd. of Equalization by R018-97,

eff. 12-19-97; A by R029-05, 6-28-2006)

      NAC 361.745  Direct appeal: Consideration of issues, contentions and evidence

outside scope of petition. (NRS 361.375)

     1.  Except as otherwise provided in this

section, in a direct appeal, the State Board will limit its consideration to

the issues and contentions set forth in the petition for a hearing before the

State Board.

     2.  Issues, contentions and evidence beyond

the scope of the petition may be considered by the State Board if:

     (a) New issues, contentions and evidence are

discovered which could not by due diligence have been discovered and presented

in the petition; and

     (b) The issues, contentions and evidence are set

forth in an addendum to the petition.

     3.  The addendum to the petition must be

submitted in writing to the State Board and each party not less than 15 days

before the hearing of the appeal. The addendum must include:

     (a) A statement reciting the facts, reasons and

statutory basis relied upon to support each claim raised in the addendum;

     (b) All evidence upon which the addendum to the

petition is based and which supports the claims therein; and

     (c) A statement of the relief sought.

     4.  Each party is entitled to respond to any

such issue, contention or evidence:

     (a) In a brief, memorandum or other written

document as set forth in NAC 361.703; and

     (b) Orally, at the hearing.

     [St. Bd. of Equalization, Practice Rule 34, eff. 10-14-77]—(NAC

A by R018-97, 12-19-97; R029-05, 6-28-2006)

      NAC 361.747  Submission of case for decision; decision of State Board;

correction of clerical mistake in record. (NRS 361.375)

     1.  After the hearing of a contested case,

and the receipt by the State Board of all posthearing briefs or the expiration

of the time prescribed by the State Board for submitting such briefs, if any,

the case shall stand submitted for decision.

     2.  In reaching its decision in a contested

case, the State Board:

     (a) Will make an independent valuation of the

property that is the subject of the appeal. This valuation may be different

from any valuation proposed by a party to the appeal.

     (b) May sustain, reverse or modify, in whole or in

part, any decision appealed to it.

     (c) If the appeal is brought pursuant to subsection

1 of NRS 361.360, may determine

the question of whether real or personal property is exempt from taxation

pursuant to any provision of NRS

361.045 to 361.187,

inclusive.

     3.  The staff shall prepare the State Board’s

final decision on the issues presented in the hearing pursuant to the direction

and with the approval of the State Board. The draft of each decision must be

approved by the Chair of the State Board before being issued.

     4.  The State Board’s final decision in a

contested case will be written and will include separate findings of fact and

conclusions of law based upon substantial evidence or matters officially

noticed. After a case stands submitted for decision, the State Board may

request proposed findings of fact and conclusions of law from a party.

     5.  The Department shall serve a copy of the

State Board’s decision upon each party of record, any representative of a party

of record and each member of the State Board, in person or by certified mail,

within 60 days after the date of the decision.

     6.  Except as otherwise provided in this

subsection, a clerical mistake in a decision, order or any other part of the

record of the State Board may be corrected by the staff on its own initiative

or on the motion of a party. If the record of the State Board is before a court

pursuant to NRS 361.410 to 361.435, inclusive, a clerical

mistake may be corrected only as directed by the court.

     [St. Bd. of Equalization, Practice Rules 41, 42 &

part Practice Rule 50, eff. 10-14-77]—(NAC A 1-6-84; R029-05, 6-28-2006)

      NAC 361.7475  Petition for reconsideration: Filing and contents; answer; grant

or denial. (NRS 361.375, 361.420)

     1.  A party who believes that a decision or

order of the State Board, or any portion thereof, is:

     (a) Unlawful;

     (b) Unreasonable; or

     (c) Based on findings of fact or conclusions of law

that are erroneous,

Ê may file a

petition for reconsideration. The petition must be filed with the State Board

and served on all parties within 15 days after the date of service of the

decision or order.

     2.  A petition for reconsideration must:

     (a) Identify with precision each portion of the

decision or order that the party alleges is unlawful, unreasonable or

erroneous.

     (b) Cite with specificity those portions of the

record, the statutes or regulations that support the allegations in the

petition. The petition must not include additional evidence or request the

submission or taking of new evidence.

     3.  A party may submit an answer in

opposition to a petition for reconsideration. The answer must be filed with the

State Board and served on all other parties within 5 days after the date of

service of the petition for reconsideration. The answer must be limited to the

issues raised in the petition for reconsideration.

     4.  The State Board will grant or deny, in

whole or in part, a timely filed petition for reconsideration within 60 days

after the date of service of the final decision. If the State Board takes no

action within the 60 days, the petition shall be deemed to be denied.

     5.  Unless otherwise provided by the State

Board, the filing of a petition for reconsideration or the granting of such a

petition by the State Board does not excuse compliance with or suspend the

effectiveness of the challenged decision or order.

     6.  If the State Board grants a petition for

reconsideration, it will reexamine the decision or order and the record with

regard to the issues on which it granted reconsideration. After this

reexamination, the State Board will issue a modified final order or reaffirm

its original order.

     7.  A modified final decision or order

incorporates all portions of the original decision or order not modified. A

modified final decision or order, or the original decision or order if

reaffirmed, is the final decision of the State Board.

     8.  For the purposes of NRS 361.420, the date of the

issuance of the decision of the State Board denying relief is:

     (a) If the State Board grants a petition for

reconsideration, the date the State Board issues its modified final decision or

order or reaffirms its original decision or order; or

     (b) If the State Board denies a petition for

reconsideration, the date the petition is denied or deemed to be denied.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

      NAC 361.748  Action for redress from finding of State Board. (NRS 361.375)  A person

who commences an action pursuant to NRS

361.410 to 361.435,

inclusive, for redress from a finding of the State Board shall serve a copy of

the summons, complaint or petition on the Department.

     (Added to NAC by St. Bd. of Equalization by R029-05,

eff. 6-28-2006)

Advisory Opinions

      NAC 361.749  Petitions: Authority; form and contents. (NRS 361.375)

     1.  Any person may petition for an advisory

opinion concerning matters within the jurisdiction of the Department or State

Board.

     2.  All petitions must be in writing, be

addressed to the Secretary and set forth at least the following:

     (a) A statement that an advisory opinion is

requested;

     (b) A succinct statement of all the facts and

circumstances necessary to dispose of the petition;

     (c) A clear, simple statement of the issue or

question to be resolved;

     (d) A statement of all statutes, rules, agency

decisions or other authorities which the petitioner believes may be relevant in

disposing of the petition; and

     (e) A statement with supporting arguments and

authorities of the petitioner’s opinion of a proper disposition of the

petition.

     [St. Bd. of Equalization, Practice Rule 48, eff. 10-14-77]—(NAC

A by R029-05, 6-28-2006)

      NAC 361.751  Jurisdiction. (NRS 361.375)  Since

the State Board’s jurisdiction is limited to the equalization of the assessed

valuation of property, the Secretary may respond to any request for an advisory

opinion as being directed to the Commission.

     [St. Bd. of Equalization, part Practice Rule 49, eff.

10-14-77]—(NAC A 1-6-84; R029-05, 6-28-2006)

      NAC 361.753  Opinions: Form; contents; issuance; delivery; appeals. (NRS 361.375)

     1.  Advisory opinions must:

     (a) Be written;

     (b) Include a statement of facts, question,

analysis and opinion;

     (c) Be issued by the Secretary within 45 days after

filing of the petition unless the Secretary, in writing, orders an extension of

time up to a maximum of 60 days after filing; and

     (d) Be delivered to the petitioner in person or by

certified mail.

     2.  Advisory opinions of the Secretary are

appealable to the State Board in the same manner as any other valuation

decision.

     [St. Bd. of Equalization, part Practice Rules 49 &

50, eff. 10-14-77]—(NAC A by R029-05, 6-28-2006)

ALLOCATION OF REDUCTIONS IN TAX REVENUE RESULTING FROM

CERTAIN PARTIAL ABATEMENTS OF TAXES

General Provisions

      NAC 361.760  Entity-adjusted parcel tax rate: Calculation and use. (NRS 361.4733)

     1.  For the purpose of calculating any amount

required to be deducted pursuant to subsection 4 of NRS 361.4722, subsection 3 of NRS 361.4723 or subsection 3 of NRS 361.4724 for a fiscal year

from the amount any taxing entity would otherwise be entitled to receive from the

ad valorem taxation of a parcel or other taxable unit of property, the

entity-adjusted parcel tax rate of each taxing entity must be used to

determine:

     (a) The rate of ad valorem taxes levied in the

county on that property by or on behalf of each taxing entity for that fiscal

year; and

     (b) The combined rate of all ad valorem taxes

levied in the county on that property by or on behalf of all taxing entities

for that fiscal year.

     2.  For the purposes of this section, the

“entity-adjusted parcel tax rate” of a taxing entity means the rate of ad

valorem taxes imposed by or on behalf of that taxing entity upon a parcel or

other taxable unit of property for a fiscal year, as calculated by:

     (a) Multiplying the actual rate of ad valorem taxes

levied by or on behalf of that taxing entity for that fiscal year by the

assessed value of that property for that fiscal year;

     (b) Subtracting from the amount determined pursuant

to paragraph (a) any amount deducted for that fiscal year pursuant to paragraph

(c) of subsection 1 of NAC 361.781 from the amount

that taxing entity would otherwise be entitled to receive from the ad valorem

taxation of that property; and

     (c) Dividing the amount determined pursuant to

paragraph (b) by the assessed value of that property for that fiscal year to

determine that entity-adjusted parcel tax rate.

     (Added to NAC by Com. on Local Gov’t Finance by R044-06,

eff. 5-4-2006; A by R023-08, 4-17-2008)—(Substituted in revision for NAC

361.611)

Property Located Outside of Redevelopment Area or Tax

Increment Area

      NAC 361.765  Definitions. (NRS 361.4733)  As used

in NAC 361.765 to 361.781,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.767 to 361.779,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.767  “Combined overlapping adjusted tax rate” defined. (NRS 361.4733)  “Combined

overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel

tax rates of all the taxing entities that levy an ad valorem tax on a parcel or

other taxable unit of property.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.769  “Combined overlapping tax rate” defined. (NRS 361.4733)  “Combined

overlapping tax rate” has the meaning ascribed to it in NRS 361.4715.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.771  “Entity-adjusted parcel tax rate” defined. (NRS 361.4733)  “Entity-adjusted

parcel tax rate” has the meaning ascribed to it in NAC

361.760.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.773  “Entity parcel tax rate increase” defined. (NRS 361.4733)  “Entity

parcel tax rate increase” means:

     1.  Except as otherwise provided in

subsection 2, the remainder obtained by subtracting the entity-adjusted parcel

tax rate of a taxing entity applicable to a parcel or other taxable unit of

property for the immediately preceding fiscal year from the rate of ad valorem

taxes imposed by or on behalf of that taxing entity on that parcel or other

taxable unit of property for the current fiscal year; or

     2.  If the remainder determined pursuant to

subsection 1 is a negative number, zero.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.775  “Redevelopment area” defined. (NRS 361.4733)  “Redevelopment

area” means a redevelopment area, as defined in NRS 279.410, regarding which any

taxes levied on property in that area are distributed as provided in NRS 279.676.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.777  “Tax increment area” defined. (NRS 361.4733)  “Tax

increment area” means a tax increment area, as defined in NRS 278C.130, regarding which any

taxes levied on property in that area are distributed as provided in NRS 278C.250.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.779  “Taxing entity” defined. (NRS 361.4733)  “Taxing

entity” has the meaning ascribed to it in NRS 361.4721.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

      NAC 361.781  Calculation of deductions from amounts taxing entities otherwise

entitled to receive. (NRS 361.4733)

     1.  Except as otherwise provided in

subsection 2 or required to carry out the provisions of NRS 361.4732:

     (a) On or before August 1 of each fiscal year, the

tax receiver of each county shall determine for each parcel or other taxable

unit of property located in that county, other than any property to which

paragraph (b) applies, for which the combined overlapping tax rate applicable

to the property for the current fiscal year exceeds the combined overlapping

adjusted tax rate applicable to the property for the immediately preceding

fiscal year, the amount which equals the lesser of:

          (1) The amount of any partial abatement of

taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the current fiscal

year; or

          (2) The product of the assessed value of the

property for the current fiscal year and the difference between:

               (I) The combined overlapping tax rate

applicable to the property for the current fiscal year; and

               (II) The combined overlapping adjusted

tax rate applicable to the property for the immediately preceding fiscal year.

     (b) On or before August 1 of each fiscal year, the

Department shall determine for each parcel or other taxable unit of property

which is valued pursuant to NRS

361.320 or 361.323 and for

which the combined overlapping tax rate applicable to the property for the

current fiscal year exceeds the combined overlapping adjusted tax rate

applicable to the property for the immediately preceding fiscal year, the

amount which equals the lesser of:

          (1) The amount of any partial abatement of

taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the current fiscal

year; or

          (2) The product of the assessed value of the

property for the current fiscal year and the difference between:

               (I) The combined overlapping tax rate

applicable to the property for the current fiscal year; and

               (II) The combined overlapping adjusted

tax rate applicable to the property for the immediately preceding fiscal year.

     (c) That portion of the amount of any reduction in

the ad valorem taxes levied on any parcel or other taxable unit of property as

a result of the application of NRS

361.4722, 361.4723 and 361.4724 which is determined

pursuant to paragraph (a) or (b) must be deducted from the amount of ad valorem

taxes that would otherwise be distributed to the taxing entities whose entity

parcel tax rate increase is greater than zero in proportion to their respective

entity parcel tax rate increases.

     (d) Each calculation required pursuant to this

section must be:

          (1) Calculated separately for each parcel or

other taxable unit of property; and

          (2) Recalculated for each fiscal year.

     2.  The provisions of this section must not

be applied in any manner that:

     (a) Would provide for the abatement of any increase

in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each

partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or

     (b) Would not allocate the revenue from any

increase in ad valorem taxes described in paragraph (a) to the taxing entity

who levies that increase or on behalf of whom that increase is levied.

     3.  As used in this section, “property” means

property which is located outside of any redevelopment area or tax increment

area.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08,

eff. 4-17-2008)

Property Located in Redevelopment Area or Tax Increment

Area

      NAC 361.785  Definitions. (NRS 361.4733)  As used

in NAC 361.785 to 361.821,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.787 to 361.811,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.787  “Combined overlapping adjusted tax rate” defined. (NRS 361.4733)  “Combined

overlapping adjusted tax rate” means the sum of all the entity-adjusted parcel

tax rates of all the taxing entities that levy an ad valorem tax on a parcel or

other taxable unit of property.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.789  “Debt tax rate” defined. (NRS 361.4733)  “Debt

tax rate” means the rate of ad valorem taxes levied by or on behalf of a taxing

entity in a fiscal year for the payment of the bonded indebtedness of that

taxing entity, as included in the combined tax rate certified by the Commission

for that fiscal year in accordance with NRS 361.4547.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.791  “Entity-adjusted parcel tax rate” defined. (NRS 361.4733)  “Entity-adjusted

parcel tax rate” has the meaning ascribed to it in NAC

361.760.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.793  “Entity-adjusted parcel tax rate increase” defined. (NRS 361.4733)  “Entity-adjusted

parcel tax rate increase” means:

     1.  Except as otherwise provided in

subsection 2, the remainder obtained by subtracting the entity-adjusted parcel

tax rate of a taxing entity applicable to a parcel or other taxable unit of

property for the immediately preceding fiscal year from the entity-adjusted

parcel tax rate of that taxing entity applicable to that property for the

current fiscal year; or

     2.  If the remainder determined pursuant to

subsection 1 is a negative number, zero.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.795  “Entity parcel tax rate increase” defined. (NRS 361.4733)  “Entity

parcel tax rate increase” means:

     1.  Except as otherwise provided in

subsection 2, the remainder obtained by subtracting the entity-adjusted parcel

tax rate of a taxing entity applicable to a parcel or other taxable unit of

property for the immediately preceding fiscal year from the rate of ad valorem

taxes imposed by or on behalf of that taxing entity on that property for the

current fiscal year; or

     2.  If the remainder determined pursuant to

subsection 1 is a negative number, zero.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.797  “Entity percentage allowed parcel tax rate increase” defined. (NRS 361.4733)  “Entity

percentage allowed parcel tax rate increase” means:

     1.  Except as otherwise provided in

subsection 2, the percentage obtained by dividing the entity-adjusted parcel

tax rate of a taxing entity applicable to a parcel or other taxable unit of

property by the entity parcel tax rate increase of that taxing entity

applicable to that property; or

     2.  If the entity parcel tax rate increase of

a taxing entity applicable to a parcel or other taxable unit of property is

zero, 100 percent.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.799  “Parcel effective assessed value” defined. (NRS 361.4733)  “Parcel

effective assessed value” means the amount calculated by dividing the dollar

amount of ad valorem taxes levied on a parcel or other taxable unit of

property, after taking into account any applicable partial abatement of taxes

pursuant to NRS 361.4722, 361.4723 or 361.4724, by the combined

overlapping adjusted tax rate applicable to that property.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.801  “Parcel effective incremental value” defined. (NRS 361.4733)  “Parcel

effective incremental value” means:

     1.  Except as otherwise provided in

subsection 2, the remainder obtained by subtracting the parcel share of base

value of a parcel or other taxable unit of property from the parcel effective

assessed value of that property; or

     2.  If the remainder determined pursuant to

subsection 1 is a negative number, zero.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.803  “Parcel share of base value” defined. (NRS 361.4733)  “Parcel

share of base value” means, for a parcel or other taxable unit of property

located in a:

     1.  Redevelopment area, the product obtained

by multiplying the base value of the taxable property in the redevelopment

area, as determined in accordance with the provisions of paragraph (a) of

subsection 1 of NRS 279.676, by

the quotient obtained by dividing the parcel effective assessed value of that

parcel or other taxable unit of property by the sum of the parcel effective

assessed values of all the parcels and other taxable units of property in that

redevelopment area.

     2.  Tax increment area, the product obtained

by multiplying the base value of the taxable property in the tax increment

area, as determined in accordance with the provisions of paragraph (a) of

subsection 1 of NRS 278C.250,

by the quotient obtained by dividing the parcel effective assessed value of

that parcel or other taxable unit of property by the sum of the parcel

effective assessed values of all the parcels and other taxable units of

property in that tax increment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.805  “Property” defined. (NRS 361.4733)  “Property”

means property located in a redevelopment area or tax increment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.807  “Redevelopment area” defined. (NRS 361.4733)  “Redevelopment

area” means a redevelopment area, as defined in NRS 279.410, regarding which any

taxes levied on property in that area are distributed as provided in NRS 279.676.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.809  “Tax increment area” defined. (NRS 361.4733)  “Tax

increment area” means a tax increment area, as defined in NRS 278C.130, regarding which any

taxes levied on property in that area are distributed as provided in NRS 278C.250.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.811  “Taxing entity” defined. (NRS 361.4733)  “Taxing

entity” has the meaning ascribed to it in NRS 361.4721.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.813  Calculations: General requirements. (NRS 361.4733)

     1.  Except as otherwise provided in NAC 361.785 to 361.821,

inclusive, each calculation required pursuant to those provisions must be:

     (a) Calculated separately for each parcel or other

taxable unit of property; and

     (b) Recalculated for each fiscal year.

     2.  For the purposes of NAC 361.785 to 361.821,

inclusive, the entity-adjusted parcel tax rate applicable to a parcel or other

taxable unit of property must be calculated in the same manner as if the

property was not located in a redevelopment area or tax increment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.815  Distribution of ad valorem taxes collected on property for which

parcel effective incremental value is zero. (NRS 361.4733)  The ad

valorem taxes collected on a parcel or other taxable unit of property for which

the parcel effective incremental value is zero must be distributed in the same

manner as if the property was not located in a redevelopment area or tax

increment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.817  Distribution of ad valorem taxes collected on property located in

redevelopment area and for which parcel effective incremental value is greater

than zero. (NRS 361.4733)

     1.  Except as otherwise provided in

subsection 2 of NRS 279.676 and NAC 361.821, the ad valorem taxes collected on a

parcel or other taxable unit of property which is located in a redevelopment

area and for which the parcel effective incremental value is greater than zero

must be distributed as follows:

     (a) The amount of taxes determined by multiplying

the parcel share of base value by the combined overlapping adjusted tax rate

applicable to that property must be distributed to the entities entitled to

receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 279.676 in proportion to their

respective entity adjusted parcel tax rates;

     (b) The amount of taxes determined by multiplying

the combined overlapping post-1996 adjusted parcel tax rate by the parcel

effective incremental value applicable to that property must be distributed to

the entities described in paragraphs (c) and (d) of subsection 1 of NRS 279.676 in proportion to their

respective post-1996 adjusted parcel tax rates; and

     (c) After deducting the amount of taxes required to

be distributed pursuant to paragraphs (a) and (b), any remaining amount must be

distributed to the redevelopment agency as provided in paragraph (b) of

subsection 1 of NRS 279.676.

     2.  For the purposes of this section:

     (a) “Combined overlapping post-1996 adjusted parcel

tax rate” means the sum of all the post-1996 adjusted parcel tax rates of all

the taxing entities that levy an ad valorem tax on a parcel or other taxable

unit of property.

     (b) “Post-1996 adjusted parcel tax rate” means:

          (1) For the fiscal year beginning on July 1,

2004, the post-1996 debt tax rate of a taxing entity applicable to a parcel or

other taxable unit of property for that fiscal year; and

          (2) For each subsequent fiscal year, the sum

obtained by adding:

               (I) The post-1996 adjusted parcel tax

rate of a taxing entity applicable to a parcel or other taxable unit of

property for the immediately preceding fiscal year; and

               (II) The product obtained by multiplying

the post-1996 parcel tax rate increase of that taxing entity applicable to that

property for the current fiscal year by the entity percentage allowed parcel

tax rate increase of that taxing entity applicable to that property.

     (c) “Post-1996 debt tax rate” means the portion of

the debt tax rate of a taxing entity which is levied to pay any bonded

indebtedness approved by the voters of the taxing entity on or after November

5, 1996, as described in paragraph (c) of subsection 1 of NRS 279.676. The post-1996 debt tax

rate of a taxing entity for a fiscal year must be determined by multiplying the

debt tax rate of that taxing entity for that fiscal year by a fraction, the

numerator of which is the total amount of principal and interest coming due in

that fiscal year on all the bonded indebtedness of that taxing entity which was

approved by the voters of that taxing entity on or after November 5, 1996, and

is to be paid with ad valorem taxes, and the denominator of which is the total

amount of principal and interest coming due in that fiscal year on all the

bonded indebtedness of that taxing entity for which the debt tax rate is being

levied. For the purposes of this paragraph, the amount of principal and

interest on the bonded indebtedness of a taxing entity coming due in a fiscal

year for which the debt tax rate is being levied, and the amount of such

indebtedness coming due in a fiscal year to be paid with ad valorem taxes

approved by the voters of that taxing entity on or after November 5, 1996, must

be determined by reference to the approved final budget of that taxing entity

which was used by the Commission to certify the combined tax rate in accordance

with NRS 361.4547, and must not

be adjusted thereafter despite the occurrence of any event that changes the

amount of bonded indebtedness of the taxing entity coming due in that fiscal

year to be paid with ad valorem taxes.

     (d) “Post-1996 parcel tax rate increase” means the

remainder obtained by subtracting the post-1996 adjusted parcel tax rate of a

taxing entity applicable to a parcel or other taxable unit of property for the

immediately preceding fiscal year from the post-1996 tax rate of that taxing

entity applicable to that property for the current fiscal year.

     (e) “Post-1996 tax rate” means the portion of the

rate of ad valorem taxes of a taxing entity which is equal to the sum obtained

by adding the post-1996 debt tax rate of that taxing entity to the rate of ad

valorem taxes of that taxing entity attributable to a new or increased tax rate

which is approved by the voters of that taxing entity on or after November 5,

1996, as described in paragraph (d) of subsection 1 of NRS 279.676.

     (f) “Property” means property located in a

redevelopment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.819  Distribution of ad valorem taxes collected on property located in

tax increment area and for which parcel effective incremental value is greater

than zero. (NRS 361.4733)

     1.  Except as otherwise provided in

subsection 2, NAC 361.821 and subsections 2 and 3

of NRS 278C.250, the ad

valorem taxes collected on a parcel or other taxable unit of property which is

located in a tax increment area and for which the parcel effective incremental

value is greater than zero must be distributed as follows:

     (a) The amount of taxes determined by multiplying

the parcel share of base value by the combined overlapping adjusted tax rate

applicable to that property must be distributed to the entities entitled to

receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 278C.250 in proportion to

their respective entity-adjusted parcel tax rates;

     (b) The amount of taxes determined by multiplying

the combined overlapping debt and override adjusted parcel tax rate by the

parcel effective incremental value applicable to that property must be distributed

to the entities described in paragraphs (a), (b) and (c) of subsection 4 of NRS 278C.250 in proportion to

their respective debt and override adjusted parcel tax rates;

     (c) The amount of taxes determined by multiplying

the tax rate specified in subsection 1 of NRS 387.195 by the parcel effective

incremental value applicable to that property must be distributed as provided

in paragraph (d) of subsection 4 of NRS

278C.250;

     (d) After deducting the amount of taxes required to

be distributed pursuant to paragraphs (a), (b) and (c), any remaining amount which

does not exceed the combined total amount required for annual debt service on

any bonds that have been issued by the entity that created that tax increment

area and regarding which any revenues of that tax increment area have been

pledged, must be distributed to that entity as provided in paragraphs (b) and

(c) of subsection 1 of NRS

278C.250; and

     (e) After deducting the amount of taxes required to

be distributed pursuant to paragraphs (a) to (d), inclusive, any remaining

amount must be distributed:

          (1) Except as otherwise provided in

subparagraph (2), to the taxing entities that impose a nonschool, nondebt and

nonoverride adjusted parcel tax rate in proportion to their respective nonschool,

nondebt and nonoverride adjusted parcel tax rates as provided in paragraph (d)

of subsection 1 of NRS 278C.250;

or

          (2) If the taxes are collected on property

located in a tax increment area created pursuant to NRS 278C.155, to the entity that

created the tax increment area.

     2.  Paragraph (c) of subsection 1 does not

apply to any taxes levied on property located in a tax increment area created

pursuant to NRS 278C.155.

     3.  For the purposes of this section:

     (a) “Combined overlapping debt and override

adjusted parcel tax rate” means the sum of all the debt and override adjusted

parcel tax rates of all the taxing entities that levy an ad valorem tax on a

parcel or other taxable unit of property.

     (b) “Debt and override adjusted parcel tax rate”

means:

          (1) For the fiscal year beginning on July 1, 2004,

the debt and override tax rate of a taxing entity applicable to a parcel or

other taxable unit of property for that fiscal year; and

          (2) For each subsequent fiscal year, the sum

obtained by adding:

               (I) The debt and override adjusted parcel

tax rate of a taxing entity applicable to a parcel or other taxable unit of

property for the immediately preceding fiscal year; and

               (II) The product obtained by multiplying

the debt and override parcel tax rate increase of that taxing entity applicable

to that property for the current fiscal year by the entity percentage allowed

parcel tax rate increase of that taxing entity applicable to that property.

     (c) “Debt and override parcel tax rate increase”

means the remainder obtained by subtracting the debt and override adjusted

parcel tax rate of a taxing entity applicable to a parcel or other taxable unit

of property for the immediately preceding fiscal year from the debt and

override tax rate of that taxing entity applicable to that property for the

current fiscal year.

     (d) “Debt and override tax rate” means the portion

of the rate of ad valorem taxes of a taxing entity which is equal to the sum

obtained by adding:

          (1) The debt tax rate of that taxing entity

which is levied to pay any bonded indebtedness approved by a majority of the

registered voters within the area of that taxing entity voting upon the

question;

          (2) The portion of the rate of ad valorem

taxes of that taxing entity attributable to any increase in that rate since the

creation of the tax increment area which was approved by a majority of the

registered voters within the area of that taxing entity voting upon the

question; and

          (3) The portion of the rate of ad valorem

taxes of that taxing entity which is levied pursuant to NRS 387.3285 or 387.3287, and which was approved

by a majority of the registered voters within the area of that taxing entity

voting upon the question,

Ê as

respectively described in paragraphs (a), (b) and (c) of subsection 4 of NRS 278C.250.

     (e) “Nonschool, nondebt and nonoverride adjusted

parcel tax rate” means the remainder obtained by subtracting from the

entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or

other taxable unit of property:

          (1) If included in that entity-adjusted parcel

tax rate, the tax rate mandated by subsection 1 of NRS 387.195; and

          (2) The debt and override adjusted parcel tax

rate of that taxing entity applicable to that property.

     (f) “Property” means property located in a tax

increment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

      NAC 361.821  Application of certain provisions: Limitations. (NRS 361.4733)  The

provisions of NAC 361.817 and 361.819 must not be applied in any manner that:

     1.  Would provide for the abatement of any

increase in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each

partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or

     2.  Would not allocate the revenue from any

increase in ad valorem taxes described in subsection 1 to the taxing entity who

levies that increase or on behalf of whom that increase is levied.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08,

4-17-2008, eff. 7-1-2008)

POSTPONEMENT OF PAYMENT OF TAX

      NAC 361.851  Claim: Filing; form; contents; accompanying documentation. (NRS 361.7374,

361.738)

     1.  The owner of a single-family residence

who wishes to file a claim to postpone the payment of the property taxes

accrued against his or her residence must file the claim with the county

treasurer of the county in which the residence is located not later than 10

days after the date on which the last installment of those taxes is due for the

current fiscal year. A claim:

     (a) Must be filed for each fiscal year in which

property taxes to be postponed are accrued.

     (b) May not be filed for more than 3 consecutive

fiscal years.

     2.  A claim may not include a request to

postpone the payment of any fees, special assessments, delinquent taxes,

interest or other charges included on the tax bill for the residence.

     3.  A claim must be filed on a form that has

been approved by the Commission.

     4.  A claim must contain:

     (a) The name, mailing address and daytime telephone

number of the claimant.

     (b) The names and mailing addresses of all other

owners of the residence.

     (c) The names and ages of all other members of the

claimant’s household and the relationship of each member to the claimant.

     (d) The street address of the residence and the

parcel number or identification number assigned to the residence by the county

assessor of the county in which the residence is located.

     (e) The length of time the claimant has occupied

the residence.

     (f) The current assessed value of the residence.

     (g) A list of any other real property in this State

owned by the claimant and a list of any other real property in this State owned

by any other owner of the residence. Each list must include, without

limitation:

          (1) The county in which the real property is

located;

          (2) The street address of the real property;

          (3) The parcel number or identification number

assigned to the real property by the county assessor of the county in which the

property is located; and

          (4) The current assessed value of the real

property.

     (h) A statement indicating whether or not the

claimant or any other owner of the residence is the subject of any proceeding

for bankruptcy and, if so, the name and social security number used to identify

that owner for the proceeding.

     (i) A statement indicating that the residence is

occupied by the claimant.

     (j) A statement indicating whether or not the

claimant or any other owner of the residence owes delinquent property taxes on

the residence for a year other than the year in which the claim is filed.

     (k) A description of the circumstances that were

beyond the control of the claimant and caused the claimant to suffer severe

economic hardship.

     (l) The total annual income of the members of the

claimant’s household.

     (m) The length of time the claimant expects the

severe economic hardship to continue.

     (n) A statement indicating whether or not the

property taxes are paid by a mortgage company.

     5.  Except as otherwise provided in NAC 361.853 to 361.871,

inclusive, a claim must be accompanied by:

     (a) A copy of the tax bill for the residence.

     (b) A copy of the federal individual income tax

return for the preceding taxable year for each owner of the residence and each

member of the household. If an owner or member of the household did not file a

federal individual income tax return, the claim must be accompanied by a copy

of the most recent “Form W-2” received by the owner or member of the household

from each of his or her employers and a copy of each “Form 1099” and each

“Schedule K-1” received by the owner or member of the household in the taxable

year in which the “Form W-2” was received. The county treasurer with whom the

claim is filed may request a copy of any other supporting forms or schedules

that are filed with the tax returns and are required to determine whether the

claimant is eligible to postpone the payment of the property taxes.

     (c) Evidence which indicates that the claimant has

occupied the residence for the 6 months immediately preceding the filing of the

claim. A driver’s license is not sufficient evidence of occupancy. Such

evidence:

          (1) May include copies of utility bills for

each month of the immediately preceding 6-month period.

          (2) Must include the name of the claimant or

another owner of the residence, the address of the residence and a date that

can be used to determine whether the residence has been occupied by the

claimant for the 6 months immediately preceding the filing of the claim.

     (d) Documentation that describes the circumstances

causing the severe economic hardship suffered by the claimant. Such

documentation may include, without limitation, a statement from an attending

physician describing the nature of an illness or injury and the estimated time

needed for recovery or a letter indicating that the claimant’s employment has

been terminated.

     6.  The information required to be submitted

with a claim pursuant to paragraphs (b) and (d) of subsection 5 shall be deemed

to be confidential information for the purposes of NRS 361.7384.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.853  Claim: Action by county treasurer. (NRS 361.7374,

361.7382)

     1.  Upon the receipt of a claim for the

postponement of the payment of property tax, a county treasurer shall verify:

     (a) The last known owner of record of the

single-family residence for which the claim is made, by inspecting public

records containing such information.

     (b) The parcel number or identification number

assigned to the residence by the county assessor of the county in which the

residence is located, the land use and total assessed value of the residence,

and whether the residence is on the secured or unsecured tax roll, by

inspecting the records of the county assessor.

     (c) Whether the claimant or any other owner of the

residence is the subject of any proceeding in bankruptcy, by inspecting the

records of the United States Bankruptcy Courts located in this State.

     (d) Whether the claimant or any other owner of the

residence owes delinquent property taxes on the residence for a year other than

the year in which the claim is filed.

     (e) The total assessed value of any other real

property in this State owned by the claimant and the total assessed value of

any other real property in this State owned by any other owner of the

residence.

     2.  Based upon the information verified

pursuant to subsection 1, the county treasurer shall determine whether:

     (a) The assessed value of the residence exceeds

$175,000.

     (b) The claimant or any other owner of the residence

owns any other real property in this State that has an assessed value of more

than $30,000. For this purpose, the claimant or other owner may own multiple

parcels of real property in this State so long as the total assessed value of

all of his or her parcels, excluding the single-family residence that is the

subject of the claim, does not exceed $30,000.

     (c) The residence has been occupied by the claimant

for the 6 months immediately preceding the filing of the claim.

     (d) The claimant or any other owner of the

residence is the subject of any proceeding in bankruptcy.

     (e) Delinquent property taxes are owed on the

residence for a year other than the year in which the claim is filed, including

taxes owed because of any changes made to the boundary of the parcel or to the

parcel map.

     (f) The total annual income of the members of the

claimant’s household is at or below the federally designated level signifying

poverty. This determination must be based on income received for the 365 days

immediately preceding the filing of the claim.

     (g) There is sufficient evidence to indicate that

the claimant suffered a severe economic hardship that was caused by

circumstances beyond his or her control.

     3.  The county treasurer shall deny the claim

if he or she determines that the claimant does not comply with the requirements

for eligibility set forth in NRS

361.7376.

     4.  If the county treasurer does not receive

sufficient information to determine whether the claimant is eligible to

postpone the payment of the property taxes accrued against the residence, the

county treasurer shall:

     (a) Deny the claim until such time as the claimant

provides sufficient information that indicates he or she is eligible to

postpone the payment of those taxes; and

     (b) Include in the notice of his or her decision a

description of the additional information that is needed to approve the claim.

     5.  If the county treasurer denies a claim

pursuant to subsection 4, the claimant may request the county treasurer to

reconsider his or her determination by submitting the additional information

that is needed to approve the claim not later than May 30 of the current fiscal

year.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.855  Determination of eligible amount of income. (NRS 361.7374,

361.7382)

     1.  The Department will annually provide to

the county treasurers of this State the amount of income for the current fiscal

year that is at or below the federally designated level signifying poverty,

based on the guidelines established in the Federal Register by the United

States Department of Health and Human Services pursuant to 42 U.S.C. § 9902(2).

     2.  Each county treasurer shall use the

amount of income provided by the Department pursuant to subsection 1 to

determine whether a claimant is eligible to postpone the payment of the

property taxes accrued against his or her single-family residence.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.857  Approval of claim for taxes accrued against mobile or

manufactured home. (NRS 361.7374)  A county

treasurer may approve a claim to postpone the property taxes accrued against a

mobile home or manufactured home if:

     1.  That home is a single-family residence as

defined in NRS 361.7372; and

     2.  The claimant is otherwise eligible to

postpone the payment of those taxes.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.859  Approval of claim for taxes accrued against single-family

residence owned by trust. (NRS 361.7374)  A county

treasurer may approve a claim to postpone the payment of the property taxes

accrued against a single-family residence that is owned by a trust if:

     1.  The claimant or any other owner of the

residence is one of the trustors;

     2.  The claim is accompanied by a certificate

of trust which indicates that the claimant or another owner of the residence is

a trustor; and

     3.  The claimant is otherwise eligible to

postpone the payment of those taxes.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.861  Determination of amount for and period of postponement. (NRS 361.7374,

361.7382)

     1.  If a county treasurer approves a claim to

postpone the payment of property taxes accrued against a single-family

residence, the county treasurer shall determine the amount of property tax that

will be postponed and the period for which the property tax will be postponed

based on the information contained in the claim.

     2.  If the claimant is in arrears in the

payment of any installment of the property taxes due for the current fiscal

year, the county treasurer may postpone the payment of the taxes for the entire

fiscal year or for any portion of that year.

     3.  The period for which property tax accrued

in a fiscal year will be postponed may not exceed 1 year.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.863  Certificate of eligibility: Form; exclusion of certain

information. (NRS 361.7374, 361.7386)

     1.  The form for a certificate of eligibility

prescribed by the Department will be:

     (a) Submitted to the Commission for its approval.

     (b) Designed to comply with the recording

requirements of the county recorders in this State.

     2.  Except as otherwise provided in NRS 361.7386, information that is

contained in or that accompanies a claim to postpone the payment of property

taxes accrued against a single-family residence may not be included in a

certificate of eligibility.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.865  Certificate of eligibility: Effects of recordation and filing. (NRS 361.7374,

361.7386)

     1.  The recordation of a copy of a

certificate of eligibility pursuant to NRS 361.7386 does not:

     (a) Confer upon the claimant a right to a refund of

property taxes already paid.

     (b) Waive the duties of the county treasurer of the

county in which the single-family residence is located to:

          (1) Mail a notice of delinquency as required

by NRS 361.5648; or

          (2) Issue a trustee’s certificate as required

by NRS 361.570.

     (c) Change the date upon which the property taxes

become delinquent or the period of redemption set forth in NRS 361.570.

     2.  If a certificate of eligibility is filed,

the county treasurer of the county in which the single-family residence is

located may postpone the publication of the notice of delinquency required by NRS 361.565 during the period for

which the payment of the property tax will be postponed. If the publication of

the notice of delinquency is postponed, the county treasurer shall not charge

the claimant with the cost of publication until such notice is published.

     3.  If the property taxes for a single-family

residence for which a certificate of eligibility is recorded are paid by a

mortgage company, the claimant is responsible for making arrangements with the

mortgage company for the postponement of the payment of the taxes and for any

adjustments that may be needed to an impound account for the payment of the

taxes.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.867  Statement of amount postponed: Contents. (NRS 361.7374,

361.7392)  A

statement of the total amount of property tax postponed that is provided

pursuant to NRS 361.7392 must

include:

     1.  The total amount of taxes owed as of the

date of the statement. This amount must include penalties incurred for the

current fiscal year and before the period of postponement becomes effective.

     2.  The total amount of interest accrued as

of the date of the statement.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.869  Application of payments made before amounts become due. (NRS 361.7374,

361.7394)  If a

claimant makes payments on the amount of property tax postponed before they

become due and payable, the county treasurer of the county in which the

single-family residence is located shall apply those payments to the taxes that

have been postponed for the longest time.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

      NAC 361.871  Fraudulent claims. (NRS 361.7374)  If a

county treasurer determines that any person has willfully made a materially

false statement or used any other fraudulent device to secure for himself or

herself or any other person the postponed payment of property tax pursuant to

the provisions of NRS 361.736 to

361.7398, inclusive, the county

treasurer shall refer the claim to the district attorney for prosecution.

     (Added to NAC by Dep’t of Taxation by R225-03, eff. 2-18-2004)

ALLODIAL TITLE

General Provisions

      NAC 361.900  Definitions. (NRS 361.920)  As used

in NAC 361.900 to 361.958,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 361.902 to 361.914,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.902  “Certificate” defined. (NRS 361.920)  “Certificate”

means a certificate of allodial title issued by the State Treasurer, which is

evidence that the titleholder has qualified for allodial title.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.904  “Installment agreement” defined. (NRS 361.920)  “Installment

agreement” means a contract:

     1.  Pursuant to which a titleholder establishes

allodial title by the payment of all required installment payments; and

     2.  Which consists of the provisions of an

application for allodial title and an agreement and schedule for installment

payments provided by the State Treasurer.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.906  “Owns” defined. (NRS 361.920)  “Owns”

means that title is held by a natural person as his or her sole property, or by

more than one natural person as joint tenants or tenants in common.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.908  “Program” defined. (NRS 361.920)  “Program”

means the program for allodial title established pursuant to NRS 361.900 to 361.920, inclusive, and NAC 361.900 to 361.958,

inclusive.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.910  “Property tax” defined. (NRS 361.920)  “Property

tax” means the combined ad valorem taxes levied by all governmental entities on

a single-family dwelling, its appurtenances and the land on which it is

located. The term does not include the tax levied upon the net proceeds of

minerals, which is determined pursuant to NRS 362.140.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.912  “Single-family dwelling” defined. (NRS 361.920)  “Single-family

dwelling” means a single-family residence which is used as the primary living

quarters of a titleholder and which is not used for a commercial purpose.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.914  “Titleholder” defined. (NRS 361.920)  “Titleholder”

means a natural person who holds title to, owns and occupies a single-family

dwelling, its appurtenances and the land on which it is located free and clear

of all encumbrances, except any unpaid assessment for a public improvement. The

term does not include a corporation or other business entity, or a trust.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Program

      NAC 361.920  Purpose; requirements for participation. (NRS 361.920)

     1.  The program for allodial title allows

qualified titleholders to pay their property taxes for a period equal to the

life expectancy of the youngest titleholder of the property on which a

single-family dwelling is located. A titleholder:

     (a) Must occupy the single-family dwelling as his

or her primary residence; and

     (b) Is ineligible to hold allodial title on more

than one single-family dwelling at the same time.

     2.  The program will provide for the payment

of property taxes for holders of certificates of allodial title. The State

Treasurer, on behalf of the titleholders of a specific parcel of property, will

make payment of future property taxes for that property once the titleholders

have been issued a certificate and so long as the titleholders are qualified

for allodial title.

     3.  The program will not provide for the

payment of any special assessment, service charge or fee that is included on a

property tax bill.

     4.  The program applies and is restricted to

the surface rights of residential property, and does not include the mineral

rights of property. The program is intended to protect families from losing

family homes, not mining businesses, because of tax liens.

     5.  The State Treasurer will avoid, to the

extent possible, the unequal collection of property taxes by properly

determining the cost of a certificate.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Certificate

      NAC 361.926  Denial of application for failure to provide requested

information. (NRS 361.900, 361.920)  The State Treasurer may

deny an application if a titleholder fails to provide to the State Treasurer

any information requested by the State Treasurer relating to the application or

an installment agreement within a reasonable period prescribed by the State

Treasurer. The titleholder is not prohibited from submitting another

application in the future.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.928  Consequences of fraudulent misrepresentation or omission of

information relating to application or installment agreement. (NRS 361.900,

361.920)

     1.  If the State Treasurer determines that a

titleholder has fraudulently misrepresented or omitted any information relating

to an application or installment agreement, the State Treasurer may deny the

application, cancel the installment agreement or revoke the certificate.

     2.  If the State Treasurer cancels the

installment agreement, the State Treasurer will so notify the titleholder and:

     (a) Prepare a refund in the manner and subject to

the provisions set forth in NRS

361.900 for a refund upon the rescission of an installment agreement; and

     (b) Remit the refund to the titleholder within 90

days.

     3.  If the State Treasurer revokes the

certificate, the State Treasurer will so notify the titleholder and:

     (a) Prepare a refund in the manner and subject to

the provisions set forth in NRS

361.915 for a refund upon the relinquishment of allodial title; and

     (b) Remit the refund to the titleholder within 90

days.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.930  Cost: Determination; actuarial calculations; credit for certain

property tax payments. (NRS 361.900, 361.920)

     1.  The State Treasurer will determine the

cost of a certificate in accordance with the provisions of NRS 361.900.

     2.  An actuarial calculation will be used to

project the life expectancy of the titleholders of the property, the income

that will be earned on the money in the Allodial Title Trust Account, and

changes in the assessed valuation of the property, including, without

limitation, the results of inflation and changes in taxable value resulting

from the construction, remodeling or rebuilding of improvements.

     3.  If the titleholder has made any property

tax payments that cover a period after the effective date of the certificate,

the titleholder will be provided credit for those property tax payments against

the cost of the certificate.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.932  Cost: Payment options. (NRS 361.900, 361.920)  The cost of the

certificate may be paid by the titleholder:

     1.  In one lump sum; or

     2.  In annual installments over a period not

to exceed 10 years.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.934  Payment in lump sum. (NRS 361.900, 361.920)  If a titleholder chooses

to pay in a lump sum:

     1.  The titleholder shall remit payment

within 90 days after the State Treasurer provides notice of the amount of the

lump sum. If the lump sum is not received by the State Treasurer within that

period, the State Treasurer will recalculate the cost of the certificate.

     2.  The titleholder will have the option of

signing an agreement that the lump-sum cost may be recalculated if improvements

are made which increase the taxable value of the property at least 20 percent

over the taxable value of the property at the time the lump-sum cost was

determined. If the titleholder signs such an agreement, the State Treasurer

will reduce the lump-sum cost.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.936  Payment in annual installments: Installment agreement. (NRS 361.900,

361.920)  If a

titleholder chooses to pay in annual installments:

     1.  The titleholder must enter into an

installment agreement with the State of Nevada.

     2.  The installment agreement must contain a

provision that the State Treasurer will adjust the final installment payment to

reflect any increase or decrease in the assessed valuation of the property

since the date of the application in accordance with subsection 8 of NRS 361.900.

     3.  The State Treasurer may:

     (a) Calculate varying annual installments so that

the final installment payment will not be extraordinarily high.

     (b) Estimate a projected rate of change in the

assessed valuation of the property so that each annual installment will include

a portion of the change and the final installment will not include the entire

amount of the change.

     4.  During the period of the installment

agreement, the titleholder remains liable for payment of his or her property

taxes until the final payment pursuant to the installment agreement has been

paid and the titleholder has been issued a certificate.

     5.  The titleholder may prepay the annual

installments without penalty.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.938  Payment in annual installments: Remittance of payments; default. (NRS 361.900,

361.920)

      1.  If

a titleholder chooses to pay in annual installments, the titleholder shall

remit payments pursuant to the installment agreement on the dates and in the

amounts set forth in the schedule for participation and payment provided to the

titleholder by the State Treasurer.

     2.  If a titleholder fails to remit a payment

required by the installment agreement within 30 days after the due date, the

titleholder shall be deemed to be in default of the installment agreement.

     3.  If a titleholder is deemed to be in

default, the State Treasurer will so notify the titleholder and:

     (a) Prepare a refund in the manner and subject to

the provisions set forth in NRS

361.900 for a refund upon the rescission of an installment agreement; and

     (b) Remit the refund to the titleholder within 90

days.

     4.  A titleholder who is deemed to be in

default may reapply for allodial title in the future in accordance with NRS 361.900 and NAC 361.900 to 361.958,

inclusive.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.940  Notification of State Treasurer by holder of certificate if

certain changes relating to property occur. (NRS 361.915, 361.920)

     1.  A titleholder of property for which a

certificate has been issued shall notify the State Treasurer within 60 days

after:

     (a) The titleholder sells or transfers the

property;

     (b) The titleholder rents or leases the property;

     (c) The titleholder converts the residence,

appurtenances or land to use by or as a commercial business;

     (d) The titleholder moves or otherwise fails to

live in the residence;

     (e) The titleholder encumbers or applies for a

mortgage or loan, using the property as collateral;

     (f) A titleholder is added to or deleted from the

deed for the property; or

     (g) A titleholder of the property dies.

     2.  Upon receipt of notification pursuant to

subsection 1, the State Treasurer will conduct a review to determine if the

titleholder qualifies to continue the allodial title on the property and, if

so, whether a recalculation of the cost of the certificate is necessary.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.942  Recalculation of cost upon addition or deletion of allodial

titleholder involving transfer of interest to person other than joint tenant. (NRS 361.915,

361.920)  Upon the

addition or deletion of an allodial titleholder that involves a transfer of

interest to a person other than a joint tenant, the State Treasurer will

recalculate the cost of the certificate using revised actuarial assumptions

reflecting the transfer. The actuarial calculation will be performed in the

same manner as the original actuarial calculation, using the new data supplied

by the titleholder and county assessor.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.944  Recalculation of cost upon addition or deletion of allodial

titleholder to reflect change in titleholders and taxable value. (NRS 361.915,

361.920)

     1.  The addition or deletion of an allodial

titleholder may require a recalculation by the State Treasurer of the cost of

the certificate to reflect the actuarial assumptions of the life expectancy of

the allodial titleholders and the taxable value of the specific property.

     2.  Upon receipt of an application to add or

delete an allodial titleholder, the county treasurer shall notify the State

Treasurer, who will recalculate the actuarial assumptions based on the change

in titleholders and change in taxable value.

     3.  The State Treasurer will determine if any

additional amount needs to be paid for the cost of the certificate for that

property and notify the titleholders and the county treasurer.

     4.  A recalculation may not be needed if a

deletion occurs solely through the death of a titleholder without transfer of

the decedent’s interest to another person, including, without limitation, the

death of a joint tenant with survivorship rights.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.946  Relinquishment; refund. (NRS 361.915, 361.920)

     1.  If the titleholder relinquishes the

certificate, or the State Treasurer determines the titleholder no longer

qualifies, the State Treasurer will prepare a refund in accordance with NRS 361.915.

     2.  A refund must be requested in writing

from the State Treasurer, who will process the request within 90 days after

receiving the request.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.948  Transference to heir. (NRS 361.910, 361.920)

     1.  The certificate may be transferred to the

heir of an allodial titleholder in accordance with NRS 361.910.

     2.  The State Treasurer will review the

information set forth in the application and determine if any additional

information is needed to process the transfer of the allodial title to the

heir.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Annual Statement

      NAC 361.950  Provision by State Treasurer to designee. (NRS 361.920)  Each

application for allodial title must list the first titleholder as the designee.

The State Treasurer will provide the designee with an annual statement listing:

     1.  The proper share of income earned on the

account of the titleholder in the Allodial Title Trust Account, with any

appropriate adjustments thereto; and

     2.  The amount of tax actually paid each year

with respect to the property, and other information relating to the program.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

Allodial Title Trust Account

      NAC 361.956  Efficient and secure maintenance; limitation on use of money for

investment and administrative expenses. (NRS 361.920)

     1.  The State Treasurer will ensure that the

Allodial Title Trust Account is efficiently and securely maintained.

     2.  Not more than 2 percent of the money in

the Allodial Title Trust Account will be used by the State Treasurer to cover

investment and administrative expenses, which will be deducted annually.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)

      NAC 361.958  Recommended consultation with tax professional concerning income

tax liability and deductions relating to Account. (NRS 361.920)  The

State Treasurer recommends that an allodial titleholder consult with a tax

professional concerning:

     1.  The income tax liability of the

titleholder with regard to the income and interest earned on the money in the

Allodial Title Trust Account attributable to the money paid into the Allodial

Title Trust Account by the titleholder; and

     2.  Whether and to what extent the property

taxes paid by the State Treasurer from the Allodial Title Trust Account with

respect to the property of the titleholder are deductible by the titleholder.

     (Added to NAC by St. Treasurer by R088-01, eff. 10-22-2001)
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