Property assessment appeals decline from last year’s record high

About 7,100 property owners in Clark County are appealing their assessed values this year, an improvement from last year's record high that might indicate slight economic improvement.

The number of appeals is the third-highest in recent years, falling below the record breaking 10,658 appeals filed last year and 8,302 appeals filed two years ago.

The decline in appeals is a small sign the economy is improving, said Rocky Steele, assistant county assessor.

"I don't think the market is falling as much as it has been," Steele said. "And we're figuring out more efficient, more effective ways (to handle) the evaluation process."

County staffers compare neighboring sites to figure a property's value and use the Marshall & Swift cost guide to nail down what a property's improvements are worth.

Assessed values must fall to pre-2005 levels before taxes shrink.

Annual tax increases are capped at 3 percent for residential properties and 6.3 percent for commercial parcels, vacant land and residential properties that are not owner-occupied, said Laura Fitzpatrick, county treasurer. The commercial tax cap is down from 8 percent the previous fiscal year.

A homeowner will pay whichever is less: a 3 percent increase from last year's tax bill or the regular tax rate on the most recent assessed value. In December, the median sales price for local existing homes was $110,000 and for new homes $212,000, according to Home Builders Research. The tax cap does not apply to new parcels or improvements that were not taxed in the previous year.

The county's latest budget shortfall, which is caused by a loss in revenue mostly from property taxes, is an estimated $42 million for fiscal year 2012.

The assessor's office mailed notifications of the value placed on properties to the county's 728,500 property owners. There are 36 appraisers to do the job, Steele said.

Assessed values are figured by using 35 percent of a property's taxable value, which is based on what the structures and the land are worth. By law, a property's assessed value cannot exceed its market value.

Property owners who disagree with their assessed values had until Jan. 17 to file an appeal.

The county Board of Equalization rules on cases that county officials are unable to resolve. The board will have its first hearing of the year today and will hold meetings throughout February.

This will be the third year in a row that county station CCTV airs the meetings. The government access television station is available on Cox cable and CenturyLink in the Las Vegas area and CMA Access Channel 14 in Laughlin, and the meetings will be videostreamed on the county website.

Property owners who don't agree with the rulings can appeal to the Nevada Board of Equalization. County officials said only a small portion of owners try to appeal at the state level, and only a fraction of them win their cases.

Many cases are resolved before the hearings based on property owners providing relevant and verifiable sales or financial information that supports their position.

Contact reporter Kristi Jourdan at kjourdan@reviewjournal.com or 702-455-4519.