Nevada Administrative Code Chapter 361 - Property Tax
🔹 NAC Chapter 361 — Property Tax: Overview
NAC Chapter 361 implements and interprets NRS Chapter 361, which governs the property tax system in Nevada. This administrative code provides detailed rules for the assessment, appraisal, exemption, equalization, and collection of property taxes. It applies to county assessors, the Nevada Department of Taxation, and taxpayers statewide.
Purpose:
To ensure uniform and equitable taxation of real and personal property.
To guide county assessors in appraisal methods.
To define property classifications, exemptions, and appeals processes.
To provide oversight and standardization of valuation procedures across Nevada’s counties.
🔹 Key Areas Covered in NAC Chapter 361
1. Appraisal Methods and Valuation Standards
A. Three Approaches to Valuation
Property may be appraised using:
Cost Approach – value based on cost to replace/reproduce the property minus depreciation.
Market (Sales Comparison) Approach – value based on recent sales of comparable properties.
Income Approach – value based on income-generating potential (typically for commercial property).
B. Depreciation Guidelines
NAC 361 provides tables and schedules for physical depreciation of structures and adjustments based on condition, age, and use.
C. Land and Improvement Valuation
Land is valued separately from buildings.
Assessors use sales data, zoning, and topography to appraise land.
Buildings are assessed using state-approved cost manuals (e.g., Marshall & Swift).
2. Personal Property Tax
Includes business equipment, furniture, machinery, and other tangible movable assets.
Assessed using the cost of the asset minus depreciation.
Businesses must file personal property declarations annually.
3. Tax Exemptions
The NAC explains exemptions provided under NRS, including:
Veterans’ exemptions (disabled veterans, surviving spouses).
Charitable, religious, and educational organizations.
Government-owned property.
Low-income housing exemptions under strict eligibility requirements.
4. Assessment Procedures
Each county assessor must perform annual or periodic reappraisals.
The Department of Taxation audits county assessors for compliance.
There are requirements for documentation, notices, and deadlines to be followed during assessment.
5. Equalization and Appeals
Taxpayers may appeal their property valuation to:
The County Board of Equalization
The State Board of Equalization
NAC 361 provides:
Deadlines for filing appeals.
Required documentation (e.g., evidence of overvaluation).
Hearing procedures and burden of proof.
6. Abatements and Tax Caps
NAC 361 outlines how property tax abatements are applied, especially:
Residential properties capped at 3% increase annually (per NRS 361.4722).
Other properties (e.g., commercial) capped at a higher percentage, often 8%.
The rules clarify eligibility and the application formula used by assessors.
🔹 Relevant Case Law (Nevada-Specific)
Here are some key legal principles and illustrative cases that interpret or are relevant to NAC/NRS 361:
📘 1. County of Clark v. Roosevelt Title Insurance Co., 80 Nev. 530 (1964)
Principle: Tax exemptions must be strictly construed.
The court held that unless a property or owner clearly qualifies for a statutory exemption, the exemption should be denied.
This aligns with NAC 361's rigorous documentation and eligibility requirements for exemptions.
📘 2. State Board of Equalization v. Bakst, 122 Nev. 1403 (2006)
Principle: Equal protection in taxation; similarly situated taxpayers must be treated equally.
A taxpayer challenged unequal valuations by the assessor.
The Nevada Supreme Court emphasized the requirement that assessments be uniform and fair, reinforcing the importance of the equalization process outlined in NAC 361.
📘 3. Nevada Tax Commission v. Mackie, 99 Nev. 487 (1983)
Principle: Administrative rules carry the force of law when authorized by statute.
This case upheld that regulations issued under statutory authority (like those in NAC 361) are binding and enforceable.
It illustrates how the Department of Taxation can implement specific appraisal rules and require compliance.
📘 4. Skyline v. State Board of Equalization, 105 Nev. 257 (1989)
Principle: Burden of proof is on the taxpayer in appeals.
When contesting a valuation, the taxpayer must provide clear and convincing evidence that the valuation is inaccurate or unfair.
This is consistent with NAC 361’s procedural requirements for tax appeals.
🔹 Summary
✅ NAC Chapter 361 ensures that:
All real and personal property is assessed fairly and uniformly.
County assessors follow standardized appraisal methods.
Tax exemptions and abatements are clearly defined and lawfully applied.
Taxpayers have due process in challenging assessments.
Property tax administration is transparent and consistent across Nevada.
✅ Legal principles emphasize:
Strict compliance with rules for exemptions and valuations.
Equal treatment of similarly situated taxpayers.
Burden of proof in tax appeals lies with the property owner.
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