Nevada Administrative Code Chapter 361 - Property Tax Nevada Administrative Code Chapter 363A - Taxes on Financial Institutions
1. NAC Chapter 361 – Property Tax
Overview:
Chapter 361 of the Nevada Administrative Code deals with the rules and procedures governing property taxes in Nevada. Property taxes are levied on real property (land and buildings) and sometimes on personal property used in business. This chapter outlines assessment, exemptions, appeals, and administrative procedures for property taxation.
Key Sections:
Definitions:
Assessor: The local official responsible for determining the value of property for tax purposes.
Taxable Property: Includes land, buildings, and certain personal property unless exempted by law.
Owner: The person or entity legally holding title to the property.
Property Assessment:
All property must be assessed at its full cash value as of January 1 of each year.
The assessor determines value based on market value, cost, and income-producing potential for commercial property.
There are procedures for reassessments when property is transferred, improved, or damaged.
Exemptions:
Certain properties are exempt from property tax, including:
Government-owned property.
Nonprofit organizations used for charitable purposes.
Property owned by religious institutions or schools.
Homestead exemptions may reduce taxable value for primary residences.
Special exemptions exist for senior citizens, disabled persons, and veterans.
Appeals:
Property owners can appeal their assessment to the county board of equalization.
Grounds for appeal: incorrect valuation, exemption denial, or misclassification.
Appeals must follow strict filing deadlines.
Tax Rate and Collection:
Local governments (counties, cities, school districts) set tax rates that apply to assessed property values.
Taxes are collected annually by the county treasurer.
Late payment may result in penalties and interest.
Administrative Rules:
Assessors must maintain accurate property records.
Inspectors may visit properties for verification.
Rules ensure uniformity and fairness in property valuation across the state.
2. NAC Chapter 363A – Taxes on Financial Institutions
Overview:
Chapter 363A focuses on taxes specifically levied on financial institutions operating in Nevada. These taxes are different from general property taxes and are designed to capture revenue from banks, credit unions, and certain financial companies.
Key Sections:
Definitions:
Financial Institution: Includes banks, trust companies, credit unions, savings and loan associations, and certain investment firms.
Net Revenue or Income: Generally refers to gross income minus allowable deductions, similar to corporate income tax calculations.
Branch or Office: Any location where the institution conducts banking or financial business.
Taxable Entities:
Only institutions with a physical presence or doing substantial business in Nevada are taxed.
Out-of-state banks may be taxed on Nevada-sourced income.
Calculation of Tax:
Tax is based on gross revenue or adjusted net income derived from activities in Nevada.
Certain deductions are allowed, such as interest paid to depositors, operating expenses, and losses.
Some chapters define minimum taxes or floor amounts to ensure even small institutions contribute.
Filing and Payment:
Institutions must file a tax return annually with the Nevada Department of Taxation.
Deadlines are typically tied to the end of the fiscal year.
Estimated quarterly payments may be required for larger institutions.
Audits and Records:
Financial institutions must maintain detailed records supporting revenues, deductions, and tax calculations.
The Department of Taxation can audit these records to ensure compliance.
Penalties and Interest:
Late payments or underreporting can lead to:
Interest on unpaid amounts.
Monetary penalties.
In extreme cases, legal action for tax evasion.
Administrative Rules:
The NAC specifies forms, reporting requirements, and procedures for resolving disputes.
There are rules for consolidated returns if a financial institution has multiple branches or subsidiaries in Nevada.
Summary Comparison:
| Aspect | NAC 361 – Property Tax | NAC 363A – Taxes on Financial Institutions |
|---|---|---|
| Subject | Land, buildings, some personal property | Banks, credit unions, financial firms |
| Basis of Tax | Full cash value of property | Gross revenue or net income |
| Exemptions | Homestead, charitable, government | Limited, mainly standard business deductions |
| Administrative Body | County Assessor & Treasurer | Nevada Department of Taxation |
| Appeals | Board of Equalization | Department of Taxation, court appeals |
| Frequency | Annually | Annually (may include quarterly estimates) |
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