Nevada § 361.227 - Determination of taxable value

§ 361.227. Determination of taxable value

1. Any person determining the taxable value of real property shall appraise: (a) The full cash value of: (1) Vacant land by considering the uses to which it may lawfully be put, any legal

or physical restrictions upon those uses, the character of the terrain, and the uses

of other land in the vicinity. (2) Improved land consistently with the use to which the improvements are being put. (b) Any improvements made on the land by subtracting from the cost of replacement

of the improvements all applicable depreciation and obsolescence. Depreciation of an improvement made on real property must be calculated at 1.5 percent

of the cost of replacement for each year of adjusted actual age of the improvement,

up to a maximum of 50 years. 2. The unit of appraisal must be a single parcel unless: (a) The location of the improvements causes two or more parcels to function as a single

parcel; (b) The parcel is one of a group of contiguous parcels which qualifies for valuation

as a subdivision pursuant to the regulations of the Nevada Tax Commission; or (c) In the professional judgment of the person determining the taxable value, the

parcel is one of a group of parcels which should be valued as a collective unit. 3. The taxable value of a leasehold interest, possessory interest, beneficial interest

or beneficial use for the purpose of NRS 361.157 or 361.159 must be determined in the same manner as the taxable value of the property would

otherwise be determined if the lessee or user of the property was the owner of the

property and it was not exempt from taxation, except that the taxable value so determined

must be reduced by a percentage of the taxable value that is equal to the: (a) Percentage of the property that is not actually leased by the lessee or used by

the user during the fiscal year; and (b) Percentage of time that the property is not actually leased by the lessee or used

by the user during the fiscal year, which must be determined in accordance with NRS 361.2275 . 4. The taxable value of other taxable personal property, except a mobile or manufactured

home, must be determined by subtracting from the cost of replacement of the property

all applicable depreciation and obsolescence. Depreciation of a billboard must be calculated at 1.5 percent of the cost of replacement

for each year after the year of acquisition of the billboard, up to a maximum of 50

years. 5. The computed taxable value of any property must not exceed its full cash value. Each person determining the taxable value of property shall reduce it if necessary

to comply with this requirement. A person determining whether taxable value exceeds that full cash value or whether

obsolescence is a factor in valuation may consider: (a) Comparative sales, based on prices actually paid in market transactions. (b) A summation of the estimated full cash value of the land and contributory value

of the improvements. (c) Capitalization of the fair economic income expectancy or fair economic rent, or

an analysis of the discounted cash flow. A county assessor is required to make the reduction prescribed in this subsection

if the owner calls to his or her attention the facts warranting it, if the county

assessor discovers those facts during physical reappraisal of the property or if the

county assessor is otherwise aware of those facts. 6. The Nevada Tax Commission shall, by regulation, establish: (a) Standards for determining the cost of replacement of improvements of various kinds. (b) Standards for determining the cost of replacement of personal property of various

kinds. The standards must include a separate index of factors for application to the acquisition

cost of a billboard to determine its replacement cost. (c) Schedules of depreciation for personal property based on its estimated life. (d) Criteria for the valuation of two or more parcels as a subdivision. 7. In determining, for the purpose of computing taxable value, the cost of replacement

of: (a) Any personal property, the cost of all improvements of the personal property,

including any additions to or renovations of the personal property, but excluding

routine maintenance and repairs, must be added to the cost of acquisition of the personal

property. (b) An improvement made on land, a county assessor may use any final representations

of the improvement prepared by the architect or builder of the improvement, including,

without limitation, any final building plans, drawings, sketches and surveys, and

any specifications included in such representations, as a basis for establishing any

relevant measurements of size or quantity. 8. The county assessor shall, upon the request of the owner, furnish within 15 days

to the owner a copy of the most recent appraisal of the property, including, without

limitation, copies of any sales data, materials presented on appeal to the county

board of equalization or State Board of Equalization and other materials used to determine

or defend the taxable value of the property. 9. The provisions of this section do not apply to property which is assessed pursuant

to NRS 361.320 .