The Nevada Constitution requires the Legislature to provide by law for a uniform and equal rate of assessment and taxation of all property, with certain exception. (Nev. Const. Art. 10, § 1(1)) According to the Nevada Supreme Court, because the requirement for a uniform and equal rate of assessment and taxation of property “declares that all property shall be taxed except mines and other property for certain enumerated purposes, the legislature cannot exempt any taxable property, except for” a purpose stated in the Nevada Constitution. (State v. Carson Savings Bank, 17 Nev. 146, 151 (1882)) The Nevada Constitution authorizes the Legislature to exempt from taxation property used for charitable purposes, which includes, without limitation, authorization to exempt from property taxes property in which certain veterans have an interest. (Nev. Const. Art. 10, § 1(8); Hendel v. Weaver, 77 Nev. 16 (1961)) Under existing law: (1) a veteran who served on active duty under certain circumstances is entitled to an exemption from property taxes of $2,000 of the assessed valuation of property in which the veteran has an interest, as adjusted each fiscal year using the Consumer Price Index; and (2) a veteran with a permanent service-connected disability, or the surviving spouse of such a veteran, is entitled an exemption from property taxes of an amount of assessed valuation that is based on the percentage of service-connected disability incurred by the veteran. (NRS 361.090, 361.091) Sections 2 and 3 of this bill increase the amount of these exemptions from property taxes by the amount of any assessed valuation attributable to a flagpole that is considered real property because it is a fixture or improvement to any real property in which the person claiming the exemption has an interest. The Nevada Constitution exempts from property taxes “[a]ll household goods and furniture used by a single household and owned by a member of that household.” (Nev. Const. Art. 10, § 3) Under existing law, the household goods that are exempt from property taxes include, without limitation, clothing, personal effects, appliances that are not attached to real property, portable goods and storage sheds. (NRS 361.069) Section 1 of this bill includes as household goods that are exempt from property taxes flags and flagpoles that are considered personal property because they are not attached to real property.

Statutes affected:
As Introduced: 361.069, 361.090, 361.091
BDR: 361.069, 361.090, 361.091