The Nevada Constitution requires the Legislature to provide by law for a uniform and equal rate of assessment and taxation of property. (Nev. Const. Art. 10, § 1)
Under existing law, for the purpose of determining the amount of property tax owed by the owner of a parcel of real property, the taxable value of the real property is equal to the value of the land plus the replacement cost of the improvements less all applicable depreciation and obsolescence. Depreciation of an improvement is calculated at 1.5 percent for each year of adjusted actual age, up to a maximum of 50 years. (NRS 361.227) Existing law also provides for a partial abatement of property taxes, which has the effect of establishing an annual cap on increases in property taxes. (NRS 361.4722, 361.4723, 361.4724) This resolution proposes to amend the Nevada Constitution to provide that: (1) for the first fiscal year after real property is sold or transferred, the real property is ineligible for any adjustment to the value of improvements on the real property which is based on the age of the improvement and certain partial abatements; and (2) for any fiscal year thereafter, any adjustment to the value of improvements on the real property which is based on the age of the improvements must be determined as if the improvements were new improvements on the date of the sale or transfer.
This resolution also proposes to amend the Nevada Constitution to require the Legislature to provide by law for a program to provide assistance to persons domiciled in this State who are 62 years of age or older or persons with a disability by paying such persons refunds of the property taxes imposed on the primary residences of such persons.