Property tax increase addressed

Q: I read your article on Sept. 5 in reference to property taxes. It is a concern of mine and many of my neighbors as to how we go about getting the taxes reduced. We were all shocked that we got increases instead of a little reprieve. We are all aware of the 3 percent tax (that) was initiated. However, with all that has happened since -- devastation for some -- we all need a breather. What would you suggest we do and when should we do it?

-- Denise P., Las Vegas

A: You're not alone in asking about this. With home prices down substantially from their peak a few years ago, many local homeowners are puzzled to see their property taxes continuing to increase as their property values decrease.

According to the Clark County assessor's office, this is due to the statewide property tax cap passed by the Nevada Legislature in 2005. Since the tax cap was based on property values as of the 2004-2005 tax year, local property taxes are going up by as much as 3 percent per year since 2005 -- instead of at a much higher rate had the cap not occurred.

Each situation varies. But in general, county officials explain that assessed property values have to fall below 2004-2005 levels before anyone would see their property taxes go down.

I understand it is confusing and that most local homeowners could use some tax relief.

If there's any good news about this it's that -- thanks to that property tax cap -- property taxes for local homeowners can't go up by more than 3 percent per year.

In any case, you can appeal your property value to the county's Board of Equalization after receiving your notice of value for the upcoming tax year in December and before the Jan. 15 deadline to appeal.

Admittedly, this issue can get complicated. You can find more information on all this at accessclarkcounty.com/assessor.

If you're interested in more detail, the statewide property tax cap passed by the Nevada Legislature in 2005, then modified further during the 2007 Legislature, limited property tax increases in Nevada to a maximum of 3 percent per year for a single-family home occupied by its owner.

The same 3 percent property tax cap also applies to certain residential rental properties that are rented at rates at or below what the federal government has determined to be the fair market rate for such a property.

For all other property in Nevada, including commercial real estate, state law now caps property tax increases to no more than 8 percent per year.

In Clark County, property is assessed at 35 percent of its current taxable value. In addition to parcels of real property (land, homes, commercial buildings, etc.), the assessor must value personal property, ranging from multimillion-dollar hotel-casinos to one-person businesses, manufactured homes, aircraft and any other personal property that is taxable.

Whether you want to appeal or not, I'd encourage you to contact the assessor's office with any other questions you may have. In my experience, they've been quite helpful and accessible.

Sue Naumann is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for nearly 30 years. GLVAR has nearly 13,500 members. To ask her a question, e-mail her at ask@glvar.org. For more information, visit lasvegasrealtor.com.