Existing law provides for a partial abatement of property taxes, which has the effect of establishing an annual cap on increases of property taxes. The formula for calculating the partial abatement provides that the property taxes on properties other than certain single-family residences or certain residential rental dwellings may not increase by more than a percentage that is the lesser of: (1) the average percentage of change in the assessed valuation of property in the county over the immediately preceding 10 years, twice the percentage of increase in the Consumer Price Index for the immediately preceding year or zero, whichever is greater; or (2) 8 percent. If the application of this formula results in a cap on increases of property taxes for a fiscal year that is less than 3 percent, the property taxes imposed on certain single-family residences and certain residential rental dwellings may not increase by more than the percentage cap calculated under that formula. However, if the application of the formula results in a cap on increases of property taxes for a fiscal year that is 3 percent or more, the property taxes on those single-family residences and residential rental properties may not increase by more than 3 percent. (NRS 361.4722-361.4724) This bill revises the formula for calculating the partial abatement so that the annual cap on increases of the property taxes on certain single-family residences and residential rental property is 3 percent. Under this bill, the annual cap on increases of property taxes on any other property cannot be less than 3 percent or more than 8 percent.

Statutes affected:
As Introduced: 361.4722, 361.4723, 361.4724
BDR: 361.4722, 361.4723, 361.4724