Terry Rubald - Nevada€¦ · completed project equals $500,000. The land had a full cash value of...
Transcript of Terry Rubald - Nevada€¦ · completed project equals $500,000. The land had a full cash value of...
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From: Terry RubaldTo: Allison Garton; Anna Thornley; Bob Carroll; Caron Machado; Cheryl Erskine; Cindy Creighton; Cori Burke; Dave
Dawley; David Denman; Dawn Buoncristiani; Dennis Gillot; Doug Scott; Doug Sonnemann; Gregg Carlson; JamesBrown; Jeff Payson; Jeffrey Mitchell; Jennifer Gaynor; Jim Jacobs; Jim Susa; John Sande IV; Josh Hicks; JudyChide; Lee Farris; Linda Jacobs; Mary Ann Weidener; Paul D. Bancroft; Rigo Lopez; Ronald Hammond; Ruth PLee; Sheree Stringer; Susan Dehnen; Tammi Davis; Tom Warden; Trent Tholen; Virginia Valentine; WilliamChuck Bailey
Subject: Remainder parcel abatement examples and other examplesDate: Tuesday, November 08, 2016 9:57:05 AMAttachments: 20161108 Excerpts from Guidelines re remainder parcels-actual & authorized use.doc
Abatement Examples.xls
Dear Interested Party: During the workshop held on November 1, 2016 regarding amending the regulationsgoverning the application of the “tax cap” abatement, particularly for remainder parcels, theDepartment requested examples to be provided for future workshops. The examplesshould be submitted to my attention by December 1st. In order to assist the discussion, I have attached excerpts from an unpublished manualdeveloped by the Department. The excerpts contain several examples which may behelpful to you. There are several types of examples in the excerpts, including examples ofchanges in actual and authorized use, remainder parcels, and qualified subdivisions,among others. Note that each example has a specific number. The actual and authorizeduse examples all start with “AAU” then a number, “01”. The remainder parcel examples allstart with “RP”. The subdivision examples all start with “SUB”. As you read through each example narrative, you will see a spreadsheet included in thenarrative. The matching spreadsheet in excel format for interactive use will have the sameexample number. For example, RP12A on page 46 will also be found in the Excelworkbook under Tab RP12A. Please feel free to send comments on these examples in lieu of, or in addition to, providingyour own examples. Thank you for participating in these workshops. Terry Terry E. RubaldDeputy Executive DirectorDepartment of Taxation1550 College ParkwayCarson City, NV 89701(775) 684-2095This message and attachments are intended only for the addressee(s) and may contain information that is privileged and confidential. Ifthe reader of the message is not the intended recipient or an authorized representative of the intended recipient, I did not intend to waiveand do not waive any privileges or the confidentiality of the messages and attachments, and you are hereby notified that anydissemination of this communication is strictly prohibited.
12-22-2016 Workshop, Page 1
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.159274
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU01
0.035700
: OVERLAPPING COMBINED TAX RATE
5,112.95
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
-
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
14.9%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
200,000
200,000
-
-
BASE YEAR
2004-05
100,000
100,000
-
-
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
70,000
70,000
-
-
-
BASE YEAR
2004-05
35,000
35,000
-
-
-
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
70,000
-
70,000
-
70,000
IMPROVEMENTS
73,500
70,000
143,500
-
143,500
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
143,500
70,000
213,500
-
213,500
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
5,266.34
5,122.95
2,499.00
-
7,621.95
-
7,621.95
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP02B
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
ACRES
2,560.00
2,560.00
GROSS TAXABLE VALUE
256,000
256,000
GROSS ASSESS VALUE
89,600
89,600
-
NET TAXES DUE
3,198.72
3,198.72
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
REMAINDER APN 002
1,920.00
1,920.00
REMAINDER APN 003
640.00
640.00
-
-
TOTALS
2,560.00
2,560.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
REMAINDER APN 002
75.0%
75.0%
REMAINDER APN 003
25.0%
25.0%
-
0.0%
0.0%
-
0.0%
0.0%
TOTALS
100.0%
100.0%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
REMAINDER APN 002
67,200
67,200
REMAINDER APN 003
22,400
22,400
-
-
-
-
TOTALS
89,600
89,600
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION
REMAINDER APN 002
2,399.04
2,399.04
-
-
-
REMAINDER APN 003
799.68
799.68
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
3,198.72
3,198.72
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 002
67,200
-
2,399.04
2,590.96
1.08
REMAINDER APN 003
174,631
49,369
799.68
863.65
1.08
-
-
-
-
-
-
TOTALS
241,831
49,369
3,198.72
3,454.61
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
REMAINDER APN 002
2,399.04
-
-
2,399.04
-
2,399.04
REMAINDER APN 003
6,234.33
1,762.47
-
7,996.80
(5,370.68)
2,626.12
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
8,633.37
1,762.47
-
10,395.84
(5,370.68)
5,025.16
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP01
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
ACRES
15.00
15.00
GROSS TAXABLE VALUE
150,000
150,000
GROSS ASSESS VALUE
52,500
52,500
-
NET TAXES DUE
1,874.25
1,874.25
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
REMAINDER APN 002
5.00
5.00
REMAINDER APN 003
5.00
5.00
REMAINDER APN 004
5.00
5.00
-
TOTALS
15.00
15.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
REMAINDER APN 002
33.3%
33.3%
REMAINDER APN 003
33.3%
33.3%
REMAINDER APN 004
33.3%
33.3%
-
0.0%
0.0%
TOTALS
100%
100%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
REMAINDER APN 002
17,500
17,500
REMAINDER APN 003
17,500
17,500
REMAINDER APN 004
17,500
17,500
-
-
-
TOTALS
52,500
52,500
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
REMAINDER APN 002
624.75
624.75
REMAINDER APN 003
624.75
624.75
REMAINDER APN 004
624.75
624.75
-
-
-
TOTALS
1,874.25
1,874.25
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 002
21,875
624.75
674.73
1.08
REMAINDER APN 003
21,875
624.75
674.73
1.08
REMAINDER APN 004
21,875
624.75
674.73
1.08
-
-
-
1.08
TOTALS
65,625
-
1,874.25
2,024.19
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
REMAINDER APN 002
780.94
-
-
780.94
(106.21)
674.73
REMAINDER APN 003
780.94
-
-
780.94
(106.21)
674.73
REMAINDER APN 004
780.94
-
-
780.94
(106.21)
674.73
-
-
-
-
-
-
-
TOTALS
2,342.82
-
-
2,342.82
(318.63)
2,024.19
Excerpts from Department of Taxation Abatement Guidelines, January 2010
THE TAX ABATEMENT CALCULATION MODEL
Before AB489, calculating property taxes followed a simple model that appraisers often call IRV (Income = Rate * Value). Assessors determined the taxable value of all property under their jurisdiction according to NRS 361.227 and applied the 35% assessment ratio pursuant to NRS 361.225 to calculate its assessed value. Taxes due thus equaled total assessed value (gross assessed – exemptions) times levied tax rate.
Correct tax computation under AB489, however, requires splitting value into several components: Existing Value, New Value, Exempt Value, and under certain circumstances, Recapture Value. Because some portion of the combined overlapping ad valorem tax rate may be exempt from abatement, different tax rates may apply to each value component. See NRS 361.4726 -.4728
The actual taxes due now equal the Taxes Otherwise Due Prior to Application of the Abatement (TODPAA) less the tax abatement, if any. In simple terms, the new tax computation model looks like this:
· TODPAA = (Existing AV * Combined Tax Rate) + (Existing AV * Cap-Exempt Tax Rate) + (New AV * Total [Combined + Cap-Exempt] Tax Rate) + (Recapture AV * Recapture Tax Rate + Recapture Carry Forward) – (Exempt AV * Total Tax Rate)
· Nominal Tax = (Existing AV * Combined Tax Rate)
· Capped Tax = [(Prior Year Gross (Existing + New) AV * Prior Year Combined Tax Rate – Prior Year Abatement] * Current Year Tax Cap Factor
· If Nominal Tax > Capped Tax Then
Tax Abatement = Nominal Tax – Capped Tax Else
Tax Abatement = 0
· Taxes Due = TODPAA – Tax Abatement
The definitions for the combined overlapping and cap-exempt tax rates appear in NRS 361.4715. The definitions of recapture assessed value and recapture carry-forward appear in NRS 361.4725. Although not defined explicitly, the Department equates the recapture tax rate with the abatement tax rate [(Nominal Tax - Capped Tax) / Existing AV].
For parcels without complications like recapture assessed value, exempt assessed value, or cap-exempt tax rates, the capped tax (maximum tax on property separately assessed in the prior year) simply equals last year’s taxes due times the current year tax cap factor. Any increase in the assessed valuation of the property from the immediately preceding year as a result of any improvement to or change in the actual or authorized use of the property counts as new assessed value not subject to abatement.
The tax cap factor itself equals 1.030 (3.0% maximum tax increase) for qualified residential property. The general abatement for all other property falls into a range between twice the CPI growth for all items, all US cities from the prior year to the current year and 8.0%, 8% being the maximum amount of tax increase. Historically, the range for tax cap factors has fluctuated between 1.002 (.2% maximum tax increase) and 1.080 (8.0% maximum tax increase). Counties whose nine-year moving average total assessed value growth falls between the floor and ceiling tax cap factors receive a factor equal to their own assessed value growth rate. See NRS 361.4722
EXAMPLE AAU01: IMPROVEMENTS TO PROPERTY
A homeowner converts his existing double garage into a master suite, adds a second floor family room, and erects a new attached double garage. RCN for the 20 year-old improvements prior to remodeling equals $350,000, RCN for the additions equals $200,000, and RCN for the completed project equals $500,000. The land had a full cash value of $100,000 in 2004-05 that increased to $200,000 for 2009-10.
Because RCN for the new improvements ($200,000) exceeds 10% of total RCN after remodeling ($500,000), the assessor must recalculate the adjusted actual age.
NRS 361.229 Adjustment of actual age of improvements in computation of depreciation.
1. The actual age of each improvement made on a parcel of land must be adjusted, for the purpose of computing depreciation, when any addition is made or replacement is made whose cost, added to the cost of any prior replacements, is at least 10 percent of the cost of replacement of the improvement after the work is done. For the purposes of this section, “replacement” does not include changing or adding finish or covering to floors or walls, changing or adding small appliances, or other normal maintenance of the improvement in a good condition.
2. Except as otherwise provided in subsection 3, the amount of the reduction must be the product of the prior actual age multiplied by the ratio of the cost of the replacement or addition to the cost of replacement of the improvement after the work is done.
3. The amount of the reduction for additions which increase the floor area of the improvement may be calculated by multiplying the prior actual age of the improvement by the ratio of the number of square feet of additional floor area to the total number of square feet of the improvement including the addition.
In this case, adjusted actual age equals [20 - (20 * 200,000 / 500,000)] = [20 * (1 - 200,000 / 500,000) = 12 years], so depreciation equals [12 * 1.5% = 18.0% * $500,000 = $90,000].
Existing value inside the tax cap thus equals [$410,000 = ($200,000 land + $300,000 improvements - $90,000 depreciation)] and new improvement value outside the tax cap equals $200,000.
Observe that depreciation applies only to existing value. For complex properties with several improvements built in different years, the assessor may wish to calculate adjusted actual age, existing value, depreciation, and new value for each improvement separately.
Also observe that the incremental value and taxes attributable to the change in the actual or authorized use of the property shown on the form apply only to incremental new land.
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP14
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 004
ACRES
5.00
5.00
GROSS TAXABLE VALUE
1,916,640
1,916,640
GROSS ASSESS VALUE
670,824
670,824
-
NET TAXES DUE
23,948.42
23,948.42
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 004
REMAINDER APN 005
4.00
4.00
REMAINDER APN 006
1.00
1.00
-
-
TOTALS
5.00
5.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 004
REMAINDER APN 005
80.0%
80.0%
REMAINDER APN 006
20.0%
20.0%
-
0.0%
-
0.0%
TOTALS
100%
100%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 004
REMAINDER APN 005
536,659
536,659
REMAINDER APN 006
134,165
134,165
-
-
-
-
-
-
TOTALS
670,824
670,824
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 004
REMAINDER APN 005
19,158.73
19,158.73
REMAINDER APN 006
4,789.69
4,789.69
-
-
-
-
-
-
TOTALS
23,948.42
23,948.42
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 005
484,372
-
19,158.73
20,691.43
1.08
REMAINDER APN 006
-
730,821
4,789.69
5,172.87
1.08
-
-
-
-
-
-
-
-
TOTALS
484,372
730,821
23,948.42
25,864.30
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
REMAINDER APN 005
17,292.08
-
-
17,292.08
-
17,292.08
REMAINDER APN 006
-
26,090.31
-
26,090.31
-
26,090.31
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
17,292.08
26,090.31
-
43,382.39
-
43,382.39
EXAMPLE AAU02: CHANGE OF ACTUAL USE
A development company purchases a vacant 20,000 square foot commercial lot (LUC 14) and constructs a new office building with an RCN of $1.0 million. Comparable sales analysis reveals that vacant commercial land in this market sold for $10.00 a square foot in the base year 2006-07 and $20.00 a square foot in 2008-09. Additionally, residual land capitalization confirms that improved commercial land commands a 20% premium above vacant.
Because the parcel has changed actual use from vacant to improved commercial (LUC 40) the assessor must determine how much incremental value counts as new land. Of course, the new construction counts as an improvement to the property not subject to abatement.
As vacant land the parcel had a full cash value of $400,000; the conversion to improved land added $80,000 in incremental land value. Determining how much incremental value counts as new land, however, requires use of the NAC 361.610485 Actual & Authorized Use Worksheet.
Here the value attributable to the change in actual use equals the incremental value in the base year ($40,000) times the growth factor from 2006-07 through 2009-10 (1.259712 = 1.00 * 1.08 * 1.08 * 1.08) or $50,388. The rule attributes the remaining $29,612 increase in current land value subject to abatement to the operation of impersonal market forces.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.259712
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU02
0.035700
: OVERLAPPING COMBINED TAX RATE
4,373.35
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
629.61
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
26.0%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
480,000
400,000
80,000
80,000
BASE YEAR
2006-07
240,000
200,000
40,000
50,388
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
168,000
140,000
28,000
28,000
999.60
BASE YEAR
2006-07
84,000
70,000
14,000
17,636
629.61
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
150,364
17,636
168,000
-
168,000
IMPROVEMENTS
-
350,000
350,000
-
350,000
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
150,364
367,636
518,000
-
518,000
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
4,723.22
5,367.99
13,124.61
-
18,492.60
(644.77)
17,847.83
EXAMPLE AAU03: CHANGE OF AUTHORIZED USE
The Bureau of Land Management (BLM) sold an existing 40 acre parcel of tax-exempt range land (LUC 19) at a public, reserve price auction to a commercial developer for $200,000 in May, 2007. In September 2007, the developer applied for and received a zoning change from open zoning, which authorized mixed residential, commercial, and light industrial uses, to general commercial (LUC 14) as well as a special use permit to develop a regional shopping mall complex.
Before the sale, the assessor valued BLM range land at a token value of $1.25/acre assessed. Because the assessor felt that BLM auctions accurately represent the full cash value of raw land, he increased the value after the sale to $5,000/acre ($1750/acre assessed), which produced an incremental land value of $199,857. Prior to the base year 2004-05, similar parcels of BLM land sold at auction for $2500/acre. In fiscal 2007-08, comparable vacant commercial parcels sold for roughly $5,500/acre.
Assuming that local zoning laws did not authorize development of large shopping complexes without a special use permit, the land changed authorized use twice: from tax exempt public range land to generic vacant raw land with open zoning, and from raw land to vacant commercial with special use permit after rezoning. The timing of the transactions also affects the outcome. The original BLM sale occurred before the 2008-09 sales cutoff date (June 30, 2007) while the comparable sales for BLM and commercial land apply to fiscal 2004-05 and 2009-10 respectively. Also observe that the first use change applies to fiscal 2008-09 and the second use change applies to fiscal 2009-10.
How the assessor interprets the concept of combination of applications and approvals may also affect the outcome of this event. For example, if final approval includes a building permit, the second change of use might not occur until construction actually begins. In this case, the zoning change with special use permit produced no increase in land value. Because developers may easily obtain zoning changes with special use permits at low cost, the assessor determined that market demand caused the $500/acre increase in value from 2008-09 to 2009-10. The incremental value between 2008-09 and 2009-10 thus falls under the tax cap.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.360489
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU03
0.035700
: OVERLAPPING COMBINED TAX RATE
1.79
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
1,697.50
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
19.0%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2008-09
200,000
143
199,857
199,857
BASE YEAR
2004-05
100,000
143
99,857
135,854
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2008-09
70,000
50
69,950
69,950
2,497.22
BASE YEAR
2004-05
35,000
50
34,950
47,549
1,697.50
FISCAL YEAR 2008-09
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
22,451
47,549
70,000
-
70,000
IMPROVEMENTS
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
22,451
47,549
70,000
-
70,000
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
1.93
801.50
1,697.50
-
2,499.00
(799.57)
1,699.43
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.080000
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU03B
0.035700
: OVERLAPPING COMBINED TAX RATE
1,699.43
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
249.90
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
0.0%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
220,000
200,000
20,000
20,000
BASE YEAR
2008-09
220,000
200,000
20,000
21,600
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
77,000
70,000
7,000
7,000
249.90
BASE YEAR
2008-09
77,000
70,000
7,000
7,560
269.89
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
70,000
7,000
77,000
-
77,000
IMPROVEMENTS
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
70,000
7,000
77,000
-
77,000
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
1,835.38
2,499.00
249.90
-
2,748.90
(663.62)
2,085.28
EXAMPLE AAU04: CHANGE OF AUTHORIZED USE
The owner of a residence with 100 feet of lake frontage applied for and obtained a pier permit from the Department of the Interior and built a new pier whose RCN equaled $100,000. Comparable sales demonstrated that buildable residential sites with 90-125 feet of lake frontage sold for $50,000/front foot in the base year 2004-05 and for $70,000/front foot in the current year. Comparable sales also revealed that a pier permit added a premium of $8,000/front foot in 2004-05 and that the premium has remained constant to the present. RCNLD for the existing 55 year-old home and other improvements equaled $1.5 million.
In this case, a change of governmental restrictions that resulted from the application for and approval of a permit authorized construction of a pier--a rare, highly desirable appurtenance in this market. Because the multiplicative incremental change from the base year to the present exceeds the value added in the current year, the new value attributable to the change of authorized use equals $800,000. Naturally, RCN for the pier itself counts as an improvement to the property outside the tax cap.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.159274
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU04
0.035700
: OVERLAPPING COMBINED TAX RATE
106,207.50
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
9,996.00
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
6.2%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
7,800,000
7,000,000
800,000
800,000
BASE YEAR
2004-05
5,800,000
5,000,000
800,000
927,419
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
2,730,000
2,450,000
280,000
280,000
9,996.00
BASE YEAR
2004-05
2,030,000
1,750,000
280,000
324,597
11,588.11
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
2,450,000
280,000
2,730,000
-
2,730,000
IMPROVEMENTS
525,000
35,000
560,000
-
560,000
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
2,975,000
315,000
3,290,000
-
3,290,000
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE ON
GROSS ASSESSED
VALUE
109,393.73
106,207.50
11,245.50
-
117,453.00
-
117,453.00
EXAMPLE AAU05: SITE REMEDIATION
A 5 acre parcel (LUC 10) in a developing rural area suffered from a topographic detriment: a deep wash that rendered the parcel 50% unusable. The assessor valued comparable parcels without detriments at $300,000/acre in the base year 2004-05 and at $640,000/acre in 2009-10. After applying the 50% topography discount, the assessor valued the subject parcel at $750,000 in the base year and $1,560,000 in the current (and prior) year.
Sometime after the 2008-09 lien date the owner renovated the site with earthwork and flood control improvements that cost $300,000 and rendered the parcel 100% usable. Accordingly, the assessor removed the 50% wash discount to make the subject comparable to other unimpaired properties in the area.
Although the existing abatement regulations makes no provision for curing functional obsolescence, one may apply the technique described in NAC 361.610485 to isolate new value not subject to abatement. Although appraisal theory generally treats site improvements as land value, an assessor could figure the cost for grading, hauling, backfill, flood control devices, etc as new construction (improvements to property) and the difference between the cost of the site improvements and the full cash value of the remediated land as incremental land value, a portion of which might fall outside the tax cap.
Notice the difference in abatements between Example AAU05A, which treats the entire incremental value as land only, and Example AAU05B, which splits the incremental value between improvements to property and new land value due to a change of authorized use (unbuildable land [LUC 17] now buildable [LUC 10]). Incidentally, Marshall Swift current cost multipliers suggested that similar site improvements would have cost $250,000 in the base year.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.469328
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU05A
0.035700
: OVERLAPPING COMBINED TAX RATE
19,492.00
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
13,769.45
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
15.8%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
3,120,000
1,560,000
1,560,000
1,560,000
BASE YEAR
2004-05
1,500,000
750,000
750,000
1,101,996
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
1,092,000
546,000
546,000
546,000
19,492.20
BASE YEAR
2004-05
525,000
262,500
262,500
385,699
13,769.45
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
706,301
385,699
1,092,000
-
1,092,000
IMPROVEMENTS
-
-
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
706,301
385,699
1,092,000
-
1,092,000
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE ON
GROSS ASSESSED
VALUE
21,051.36
25,214.95
13,769.45
-
38,984.40
(4,163.59)
34,820.81
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.469328
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU05B
0.035700
: OVERLAPPING COMBINED TAX RATE
19,492.20
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
9,179.61
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
17.7%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
2,820,000
1,560,000
1,260,000
1,260,000
BASE YEAR
2004-05
1,250,000
750,000
500,000
734,664
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
987,000
546,000
441,000
441,000
15,743.70
BASE YEAR
2004-05
437,500
262,500
175,000
257,132
9,179.61
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
729,868
257,132
987,000
-
987,000
IMPROVEMENTS
-
105,000
105,000
-
105,000
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
729,868
362,132
1,092,000
-
1,092,000
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
21,051.58
26,056.29
12,928.11
-
38,984.40
(5,004.71)
33,979.69
EXAMPLE AAU06: CHANGE OF ACTUAL USE
A one acre lot in a tax district zoned for high-rise hotel casinos (H1 zoning, LUC 42) contained a 75 year-old residence. Pursuant to NRS 361.227(1)(a)(2), the assessor valued the parcel at its actual use as an improved residential site (LUC 20) whose full cash value equaled $200,000 in the base year and now equals $400,000. Comparable sales of nearby vacant H1 land indicated a current value of $28.00/sq ft and a base year value of $8.00/sq ft for similar parcels.
Local zoning ordinances allow improved property to remain in service whenever changes in the uses to which land may lawfully be put convert the actual use of the property from authorized to unauthorized. After removing the existing improvements, however, the owner may only develop the parcel to an authorized use.
Accordingly, once the owner demolished the home and cleared the site, the assessor valued the land at its authorized use as vacant (H1 zoning, LUC 14) with current and base year full cash values equal to $1,207,472 and $348,480 respectively.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.469328
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU06
0.035700
: OVERLAPPING COMBINED TAX RATE
4,998.00
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
2,725.98
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
28.3%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
1,207,472
400,000
807,472
807,472
BASE YEAR
2004-05
348,480
200,000
148,480
218,166
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
422,615
140,000
282,615
282,615
10,089.36
BASE YEAR
2004-05
121,968
70,000
51,968
76,358
2,725.98
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
346,257
76,358
422,615
-
422,615
IMPROVEMENTS
-
-
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
346,257
76,358
422,615
-
422,615
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
5,397.84
12,361.37
2,725.98
-
15,087.35
(6,963.53)
8,123.82
EXAMPLE AAU07: CHANGE OF AUTHORIZED USE
A two acre parcel zoned for residential estates (RE zoning, LUC 12) sits in a corridor approved for commercial development by a local government master-plan. Comparable sales confirm that full cash value for vacant land within the master-plan area currently equals $28.75/sq ft regardless of its authorized use (actual zoning). The owner applies for and receives a zoning change to general commercial (C1 zoning, LUC 14).
In this example the change of authorized use produces no change in full cash value. Consequently, the total property value counts as existing value subject to abatement with no incremental value outside the cap.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.469328
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU70A
0.035700
: OVERLAPPING COMBINED TAX RATE
31,296.23
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
-
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
29.2%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
2,504,700
2,504,700
-
-
BASE YEAR
2004-05
696,960
696,960
-
-
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
876,645
876,645
-
-
-
BASE YEAR
2004-05
243,936
243,936
-
-
-
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
876,645
-
876,645
-
876,645
IMPROVEMENTS
-
-
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
876,645
-
876,645
-
876,645
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
33,799.93
31,296.23
-
-
31,296.23
-
31,296.23
An identical two acre parcel zoned for residential estates (RE zoning, LUC 12) sits in another corridor approved for commercial development by a local government master-plan. Comparable sales confirm that inclusion within the master-plan area produces no increase in full cash value; the market prices land according to its authorized use (actual zoning).
Current full cash value for lots zoned RE equals $200,000/acre while full cash value for vacant land zoned commercial (C1 zoning, LUC 14) within the master-plan area currently equals $28.75/sq ft. The owner applies for and receives a zoning change to general commercial.
In this example, the change of authorized use produces incremental full cash value not subject to abatement. Consequently, the assessor should apply NAC 361.610485 to split the total value between existing and new. Obviously, land owners should carefully consider the timing and tax consequences of their actions before applying for zoning changes. Nothing in the plain language of the abatement statutes suggests that the Legislature intended to remove the risks inherent in real estate speculation from the marketplace.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.469328
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU07B
0.035700
: OVERLAPPING COMBINED TAX RATE
4,998.00
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
9,123.81
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
29.2%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
2,504,700
400,000
2,104,700
2,104,700
BASE YEAR
2004-05
696,960
200,000
496,960
730,197
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
876,645
140,000
736,645
736,645
26,298.23
BASE YEAR
2004-05
243,936
70,000
173,936
255,569
9,123.81
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
621,076
255,569
876,645
-
876,645
IMPROVEMENTS
-
-
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
621,076
255,569
876,645
-
876,645
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
5,397.84
22,172.41
9,123.81
-
31,296.22
(16,774.57)
14,521.65
EXAMPLE AAU08: CHANGE OF ACTUAL USE
A 50 year-old motel (LUC 41) sits on a 1.01 site zoned for high-rise hotel casinos (H1 zoning, LUC 42). The assessor valued the land at its actual use for $50,000 per room, which yielded a total taxable value of $1,250,000 or $28.41/sq ft. Similar vacant parcels to the north and south of the subject zoned H1 currently have a full cash value of $307.50/sq ft.
The owner demolished the motel and cleared the site but exerted no effort to obtain a zoning variance to build a similar low-rise motel. Due to the change of actual use, the assessor valued the land at its authorized use as vacant (H1 zoning, LUC 42) for a total taxable value of $13,528,647 (43,996 sq ft * $307.50); $5,947,245 of the incremental land value falls outside the tax cap.
ACTUAL & AUTHORIZED USE WORKSHEET
R109-08:19
ADOPTED METHOD
ROOP
1.469328
: MAXIMUM GROWTH FACTOR
EXAMPLE AAU08
0.035700
: OVERLAPPING COMBINED TAX RATE
15,618.75
$
: PRIOR YEAR TAXES AFTER ABATEMENT ON GROSS ASSESSED VALUE
74,310.80
$
: ESTIMATED TAXES ATTRIBUTABLE TO CHANGE
25.2%
: ACTUAL ANNUAL GROWTH RATE
FISCAL YEAR
TAXABLE VALUE AFTER
CHANGE
TAXABLE VALUE
BEFORE CHANGE
INCREMENTAL TAXABLE
VALUE
CURRENT YEAR NEW
TAXABLE VALUE
CURRENT YEAR
2009-10
13,528,547
1,250,000
12,278,547
12,278,547
BASE YEAR
2004-05
4,399,560
351,965
4,047,595
5,947,245
FISCAL YEAR
GROSS ASSESSED
VALUE AFTER CHANGE
GROSS ASSESSED
VALUE BEFORE CHANGE
INCREMENTAL
ASSESSED VALUE
CURRENT YEAR NEW
ASSESSED VALUE
TAXES ATTRIBUTABLE
TO CHANGE
CURRENT YEAR
2009-10
4,734,991
437,500
4,297,491
4,297,491
153,420.43
BASE YEAR
2004-05
1,539,846
123,188
1,416,658
2,081,535
74,310.80
FISCAL YEAR 2009-10
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
GROSS ASSESSED
VALUE
EXEMPTIONS
TOTAL ASSESSED
VALUE
LAND
2,653,456
2,081,535
4,734,991
-
4,734,991
IMPROVEMENTS
-
-
-
-
-
PERSONAL PROPERTY
-
-
-
-
-
TOTAL
2,653,456
2,081,535
4,734,991
-
4,734,991
CAPPED TAXES ON
EXISTING ASSESSED VALUE
NOMINAL TAXES ON
EXISTING ASSESSED
VALUE
TAXES ON NEW
ASSESSED VALUE
TAX EXEMPTIONS
TAXES DUE PRIOR TO
APPLICATION OF
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
16,868.25
94,728.38
74,310.80
-
169,039.18
(77,860.13)
91,179.05
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP02A
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
ACRES
2,560.00
2,560.00
GROSS TAXABLE VALUE
256,000
256,000
GROSS ASSESS VALUE
89,600
89,600
-
NET TAXES DUE
3,198.72
3,198.72
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
REMAINDER APN 002
1,920.00
1,920.00
NEW APN 003
640.00
640.00
-
-
TOTALS
2,560.00
2,560.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
REMAINDER APN 002
75.0%
75.0%
NEW APN 003
25.0%
25.0%
-
0.0%
0.0%
-
0.0%
0.0%
TOTALS
100%
100%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
REMAINDER APN 002
67,200
67,200
NEW APN 003
22,400
22,400
-
-
-
-
-
-
TOTALS
89,600
89,600
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
REMAINDER APN 002
2,399.04
2,399.04
NEW APN 003
799.68
799.68
-
-
-
-
-
-
TOTALS
3,198.72
3,198.72
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 002
67,200
-
2,399.04
2,590.96
1.08
NEW APN 003
-
224,000
799.68
863.65
1.08
-
-
-
-
-
-
TOTALS
67,200
224,000
3,198.72
3,454.61
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
REMAINDER APN 002
2,399.04
-
-
2,399.04
-
2,399.04
NEW APN 003
-
7,996.80
-
7,996.80
-
7,996.80
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
2,399.04
7,996.80
-
10,395.84
-
10,395.84
EXAMPLE AAU09: CHANGE OF ALLOWED USE
Two identical sections of land sit on opposite sides of a State road. Until recently, the south section had residential zoning that only allowed development of single family residences and manufactured homesites--with special use permits required for multiple residences, residential subdivisions, or manufactured home parks. The north section had open zoning that allowed a mix of residential, commercial, and light industrial development--with special use permits required for large truck plazas and heavy industrial operations.
The County Planning Commission just adopted a new master plan that creates a commercial corridor 1/4 mile deep on both sides of the State road and restricts development to areas behind the corridor with no highway frontage to residential use only. The same special use requirements apply to land zoned commercial or residential, but resort hotels in the commercial zones must also obtain special use permits. In general, special use permits require developers to provide basic infrastructure--particularly water systems and sewers. Existing property whose actual use is no longer authorized is allowed to remain in service, but may not be rebuilt at an unauthorized use even if destroyed by fire or natural disaster. Current ordinances make no provision for zoning variances.
In this case, the change of authorized use for valuation purposes differs from the change of authorized use for calculating new land value not subject to abatement. Although the change in uses to which land may lawfully be put changes the authorized use of residential land in the commercial corridor on both sides of the State road for valuation pursuant to NRS 361.227(1)(a)(1), only the south side of the road experiences a change of authorized use for calculating abatements. The zoning change to the commercial corridor on the north side does not add a new allowed use; zoning on the south side removes residential but adds commercial as a new allowed use, thus qualifying as a change of authorized use for determining new land value outside the tax cap.
Residential land south of the State road beyond the commercial corridor remains residential and experiences no change of authorized use for either valuation or abatements.
Commercial land on the north side of the State road in the new residential zone undergoes a change of authorized use for valuation, but not for determining abatements. Although the master plan has disallowed commercial use, it added no new allowed (authorized?) uses. Of course, the assessor must still value improved land on both sides of the State road at its actual use pursuant to NRS 361.227(1)(a)(2) regardless of zoning or any changes in authorized use.
In this case, only vacant land previously valued as residential in the south commercial corridor could accrue any incremental new land value outside the tax cap. The assessor must prove with verifiable market data that any increase in value results solely from zoning changes, a difficult task if no recent sales of commercial highway frontage have occurred in close proximity to the subject parcels.
REMAINDER PARCELS
Under the parceling system authorized by NRS 361.189, assessors assign each parcel of real property a unique assessor’s parcel number (APN). Although the APN (typically book--page-- parcel), does not constitute a correct and complete legal description of the land, it does allow assessors to create assessment rolls or map and locate property based on a uniform parcel identification system.
Whenever a parcel split (subdivision or cut), boundary adjustment, or combination (assemblage) occurs, the assessor retires the existing APN(s). With a parcel split or adjustment, both the newly created parcel(s) and the remnant parcel(s) receive new parcel numbers equal to the next highest available parcel number(s). After combining two or more parcels, the newly assembled appraisal unit also receives a new APN. Once assigned to a particular parcel an APN may never appear again, either for the remnant after a parcel split or for another new parcel. See also definition of “new parcel” at NAC 361.61014.
NRS 361.4722(1) states that the property tax abatement applies to all properties for which an assessed value was separately established for the immediately preceding fiscal year. When a split or combination occurs and a new APN is assigned, the newly configured parcel did not exist in its current form in the prior year. Thus, without further reading the abatement statute, one might assume that all newly split or combined parcels would then be exempt from the abatement, and the value of the newly configured parcel(s) would be treated as new value not subject to abatement in the current year. The Legislature, however, created the remainder exception. See NRS 361.4722(2) and (6).
NRS 361.4722(6) defines a remainder parcel as
a parcel of real property which remains after the creation of new parcels of real property for development from one or more existing parcels of real property, if the use of that remaining parcel has not changed from the immediately preceding fiscal year.
The exception allows the abatement to continue to be applied to vacant tracts which remain after carving out new parcels of land for development. Otherwise, the remainder would count as new property not subject to abatement each time an owner subdivided an existing parcel into new parcels. Accordingly, parcels of real property that remain after creating new parcels of real property for development from one or more existing parcels may still qualify for abatement even though the remnant parcel in its current form (APN) received no assessed valuation in the preceding fiscal year.
The definition of a remainder parcel in NRS 361.4722(6) contains an additional qualifier. In order to be considered a remainder parcel, the “use” of the parcel must not have changed from the prior year. If the use has changed, the property is considered a new parcel for development and is not subject to abatement. See also NAC 361.61016 and 361.61034(3)(a) and (b). Thus, for purposes of determining whether a newly created parcel is subject to abatement as a remainder parcel, NAC 361.61034 requires that each new parcel be separately evaluated to determine whether any change in use has occurred. “Use” for purposes of determining application of the abatement to a remainder parcel is defined separately from “use” for purposes of determining whether a change in actual or authorized use has occurred; or from the land use classification system used for categorizing properties for purposes of general appraisal and assessment. See Appendix A for a comparison.
NAC 361.61034(4) defines “use” for purposes of determining whether a remainder parcel has been created:
As used in this section, “use of the property” means the principal use of the property for one of the following purposes:
(a) Agricultural use; (defined in NAC 361.61006)
(b) Open-space use; (defined in NAC 361.61018)
(c) Residential use; (defined in NAC 361.61028)
(d) Commercial or industrial use; (defined in NAC 361.61008)
(e) Institutional use; (defined in NAC 361.61012)
(f) Recreational use; or (defined in NAC 361.61024)
(g) Use as vacant land held for development. (NAC 361.6103)
Assessors must analyze “use” for remainder purposes carefully. For instance, agricultural and open-space land must qualify for deferment and may or may not include improvements on land. Institutional and recreational uses seem vague, however. They might include both non-exempt private property and private or government tax-exempt property. Although institutional use sounds like exempt property, the regulation does not actually say so. For the most part they both sound like improved land.
NAC 361.61012 “Institutional use” defined. (NRS 360.090, 361.4722) “Institutional use” means any civic, charitable or religious use, including, without limitation, use as a church, cemetery or hospital.
NAC 361.61024 “Recreational use” defined. (NRS 360.090, 361.4722) “Recreational use” means any active or passive recreational use, including, without limitation, use as a trail, park, community garden, playground or athletic field.
Commercial or industrial use acts as the default for property that does not fit any other classification. For instance, vacant land once held for another use besides agricultural, open-space or held for development, also counts as a commercial use regardless of its authorized use (zoning). Does tax-exempt government range land qualify as vacant land held for development or as an institutional or recreational use? For instance, if one treats raw BLM land as an institutional or recreational use then new parcels of public land converted to private use by land grant or auction would count as a commercial use, not as vacant land held for development.
NAC 361.61008 “Commercial or industrial use” defined. (NRS 360.090, 361.4722) “Commercial or industrial use” means any use:
1. Conducted primarily for profit, except for any agricultural use, open-space use, residential use, institutional use, recreational use or use as vacant land held for development; and
2. Any other use that does not constitute any agricultural use, open-space use, residential use, institutional use, recreational use or use as vacant land held for development.
Residential use also can be difficult to determine. Vacant parcels with a final subdivision map count as a residential use instead of vacant land held for development, but depending on their remainder use before re-parceling, isolated new parcels outside of mapped subdivisions might count as vacant land held for development or as commercial use regardless of their authorized use.
NAC 361.61028 “Residential use” defined. (NRS 360.090, 361.4722) “Residential use” means use as a dwelling or for personal, family or household purposes, whether rented to particular persons or not, including, without limitation, use as a single-family detached housing unit, townhouse, condominium unit, mobile home or multifamily unit. The term includes the use of lots in a residential subdivision for which a final map has been recorded and on which residential improvements will be constructed, but does not include the use of parcels which are not yet divided into individual residential lots by the filing of a final map.
Assessors should therefore familiarize themselves with three concepts unique to remainder parcels: New Parcels, Vacant Land Held for Development, and Change of Use.
· New Parcels of Real Property
NAC 361.61014 “New parcel” defined. (NRS 360.090, 361.4722) “New parcel” means a parcel for which a new or different assessor parcel number has been assigned from the prior year as a result of the division of any previously existing parcel or parcels, the combination of any previously existing parcels, or any change in the configuration of any parcels or of lot size or lot boundaries, by means of a parcel map, subdivision map, certificate of land division, long-term lease, action of any governmental entity or any other means.
NAC 361.61016 “New parcel for development” defined. (NRS 360.090, 361.4722) “New parcel for development” means each new parcel which is not eligible for the partial abatement in the current year.
New parcel means any unit of real property that received a new APN for the current year as the result of a parceling transaction like a split, combination, or boundary line adjustment. NAC 361.61016 defines a new parcel for development by exclusion as the opposite of a remainder--a new APN that counts as new assessed value outside the tax cap.
· Vacant Land Held for Development
NAC 361.6103 “Vacant land held for development” defined. (NRS 360.090, 361.4722) “Vacant land held for development” means land which is held for investment or future development and has not previously been held for residential use, commercial or industrial use, institutional use or recreational use.
The key to identifying remainder parcels thus rests with the definition of vacant land held for development--land not previously held for residential, commercial or industrial, institutional, or recreational use. Observe that this restriction does not apply to agricultural or open-space uses and that the phrase “held for investment or future development” has no specific definition. In general, one may assume that owners hold all vacant land for investment or future development.
Although it may seem strange, once improved, a remainder parcel of land never again qualifies as vacant land held for development. Apparently, if one removes an improvement to create a vacant lot, it becomes a commercial use regardless of its authorized use as vacant land. Of course, this only applies to remainder parcels appearing on the roll for the first time in the current year.
· Change of Use
A new parcel only counts as new value not subject to abatement if it undergoes a change of remainder use. As a Boolean construct the rule for change of remainder use looks like this:
IF [vacant land for development
AND (mapped residential subdivision OR new construction)]
OR [vacant land not for development
AND remainder use change]
THEN new parcel for development outside tax cap
A change of remainder use occurs when vacant land held for development satisfies one of two conditions:
· A subdivision map creates individual residential lots. Observe that this rule applies only to residential subdivisions, not to commercial or industrial parks.
· New construction on the parcel improves it from vacant to one of the remainder use classifications.
A change of use for other remainder use types, including vacant land classified as commercial, occurs when the (actual) use of the parcel changes from one remainder use classification to another. Of course, this includes vacant lots created by removing existing improvements, although some interested parties might argue that land remains in commercial use after one demolishes a commercial improvement. Remember, though, that these changes only apply to new, not existing, parcels.
NAC 361.61034 New parcels: Evaluation; determination of change in use; effect of determination. (NRS 360.090, 361.4722)
1. Each new parcel must be separately evaluated to determine whether there has been any change in the use of the property that comprises the parcel.
2. A determination that there is a change in the use of the property must be based on a finding that:
(a) The property was being used as vacant land held for development as of the commencement of the prior year and:
(1) As the result of the recording of a subdivision map creating individual lots for residential development, the property is held for residential use as of the commencement of the current year; or
(2) As the result of new construction on the parcel sufficient to allow for an identification of the use of the property, the property is in agricultural use, open-space use, residential use, commercial or industrial use, institutional use or recreational use as of the commencement of the current year; or
(b) The use of the property as of the commencement of the current year for agricultural use, open-space use, residential use, commercial or industrial use, institutional use or recreational use is different from the use of the property as of the commencement of the prior year.
VALUING REMAINDER PARCELS
NAC 361.61036 - 361.61038 describe the procedure for identifying and calculating the tax abatement for remainder parcels. As with changes in actual or authorized use, the rules deal directly with tax computation instead of valuation, but this chapter contains an Excel worksheet to help assessors split value into existing value subject to abatement and new value outside the tax cap. The following examples demonstrate the subtleties of identifying and applying abatements to remainder parcels.
EXAMPLE RP01: VACANT PARCEL SPLIT
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP03
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
ACRES
640.00
640.00
GROSS TAXABLE VALUE
640,000
640,000
GROSS ASSESS VALUE
224,000
224,000
-
NET TAXES DUE
7,996.80
7,996.80
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
NEW APN 002
480.00
480.00
REMAINDER APN 003
160.00
160.00
-
-
TOTALS
640.00
640.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
NEW APN 002
75.0%
75.0%
REMAINDER APN 003
25.0%
25.0%
-
0.0%
0.0%
-
0.0%
0.0%
TOTALS
100%
100%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
NEW APN 002
168,000
168,000
REMAINDER APN 003
56,000
56,000
-
-
-
-
-
-
TOTALS
224,000
224,000
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
NEW APN 002
5,997.60
5,997.60
REMAINDER APN 003
1,999.20
1,999.20
-
-
-
-
-
-
TOTALS
7,996.80
7,996.80
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
NEW APN 002
168,000
-
5,997.60
6,477.41
1.08
REMAINDER APN 003
67,200
-
1,999.20
2,159.14
1.08
-
-
-
-
-
-
TOTALS
235,200
-
7,996.80
8,636.55
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
NEW APN 002
5,997.60
-
-
5,997.60
-
5,997.60
REMAINDER APN 003
2,399.04
-
-
2,399.04
(239.90)
2,159.14
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
8,396.64
-
-
8,396.64
(239.90)
8,156.74
The owner of 15 acres of vacant land held for development APN 001 (LUC 10) divides it into three 5 acre parcels APN 002, 003 & 004. Because no new construction or change of remainder use has occurred, all three new parcels count as remainders. Last year, the assessor valued comparable land at $10,000/acre, which has increased to $12,500/acre for the current year. Because no change of authorized use has occurred either, the $2,500/acre increase in full cash value falls under the tax cap. (see Example RP01)
EXAMPLE RP02: BLM RAW LAND
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP04A
MIXED USE PROPERTY
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
ACRES
40.00
40.00
GROSS TAXABLE VALUE
42,000
42,000
GROSS ASSESS VALUE
14,700
14,700
-
NET TAXES DUE
524.79
524.79
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
REMAINDER APN 002
30.00
30.00
REMAINDER APN 003
10.00
10.00
-
-
TOTALS
40.00
40.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
REMAINDER APN 002
71.4%
71.4%
REMAINDER APN 003
28.6%
28.6%
-
0.0%
0.0%
-
0.0%
0.0%
TOTALS
100.0%
100.0%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
REMAINDER APN 002
10,500
10,500
REMAINDER APN 003
4,200
4,200
-
-
-
-
TOTALS
14,700
14,700
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
REMAINDER APN 002
374.85
374.85
REMAINDER APN 003
149.94
149.94
-
-
-
-
-
-
TOTALS
524.79
524.79
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 002
10,500
-
374.85
404.84
1.08
REMAINDER APN 003
4,200
-
149.94
154.44
1.03
-
-
-
-
-
-
TOTALS
14,700
-
524.79
559.28
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
REMAINDER APN 002
374.85
-
-
374.85
-
374.85
REMAINDER APN 003
149.94
-
-
149.94
-
149.94
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
524.79
-
-
524.79
-
524.79
BLM owns 4 sections (2,560 acres) of tax-exempt range land (APN 001, Land Use Code 19). BLM sells one section (APN 003, 640 acres) at a public reserve price auction for $640,000 ($1,000/acre).
If we consider range land an institutional (government) remainder use, the new parcel counts as a remainder commercial use. Since a change of remainder use has occurred, APN 002 (LUC 19) counts as a remainder parcel and APN 003 (LUC 10) counts as a new parcel for development. (see Example RP02A)
If we treat tax-exempt range land as vacant land held for development, however, the new parcel also counts as vacant land held for development. No change of remainder use has occurred, so both parcels count as remainders. Because a change of authorized use has occurred, however, some portion of incremental unit value may count as new land not subject to abatement.
Prior to the sale, the assessor valued all tax-exempt range land at $100/acre. Because BLM does not sell land for less than its reserve price, the assessor valued the new parcel APN 003 at $1,000/acre in the current year and $250/acre in the base year 2004-05 based on auctions at that time. As a new parcel for development, the entire $640,000 counts as new value outside the tax cap. As a remainder, however, $498,946 would count as existing value subject to abatement and only $141,054 would count as new taxable value outside the tax cap, which reduces the tax bill by nearly $5,300. In order to avoid disparate treatment, the Department recommends that range land be considered an institutional remainder use in this example. (see Example RP02B & Example RP02AU)
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP04B
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
ACRES
40.00
40.00
GROSS TAXABLE VALUE
40,000
40,000
GROSS ASSESS VALUE
14,000
14,000
-
NET TAXES DUE
499.80
499.80
-
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
NEW APN 002
30.00
30.00
REMAINDER APN 003
10.00
10.00
-
-
TOTALS
40.00
40.00
-
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
NEW APN 002
75.0%
75.0%
REMAINDER APN 003
25.0%
25.0%
-
0.0%
0.0%
-
0.0%
0.0%
TOTALS
100%
100%
0.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
NEW APN 002
10,500
10,500
REMAINDER APN 003
3,500
3,500
-
-
-
-
-
-
TOTALS
14,000
14,000
-
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
NEW APN 002
374.85
374.85
REMAINDER APN 003
124.95
124.95
-
-
-
-
-
-
TOTALS
499.80
499.80
-
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
NEW APN 002
-
10,500
374.85
404.84
1.08
REMAINDER APN 003
4,200
-
124.95
128.70
1.03
-
-
-
-
-
-
TOTALS
4,200
10,500
499.80
533.54
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
NEW APN 002
-
374.85
-
374.85
-
374.85
REMAINDER APN 003
149.94
-
-
149.94
(21.24)
128.70
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
149.94
374.85
-
524.79
(21.24)
503.55
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP05
8.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
APN 002
ACRES
20.00
10.00
10.00
GROSS TAXABLE VALUE
16,117,200
8,058,600
8,058,600
GROSS ASSESS VALUE
5,641,020
2,820,510
2,820,510
NET TAXES DUE
201,384.41
100,692.21
100,692.21
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
ACRES APN 002
REMAINDER APN 003
10.00
8.00
2.00
REMAINDER APN 004
10.00
2.00
8.00
-
-
TOTALS
20.00
10.00
10.00
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
PERCENTAGE NET
TAXES APN 002
REMAINDER APN 003
50.0%
80.0%
20.0%
REMAINDER APN 004
50.0%
20.0%
80.0%
-
0.0%
0.0%
0.0%
-
0.0%
0.0%
0.0%
TOTALS
100%
100%
100.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
GROSS ASSESSED
VALUE APN 002
REMAINDER APN 003
2,820,510
2,256,408
564,102
REMAINDER APN 004
2,820,510
564,102
2,256,408
-
-
-
-
-
-
-
-
TOTALS
5,641,020
2,820,510
2,820,510
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
TAXABLE BASIS
ALLOCATION APN 002
TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION
REMAINDER APN 003
100,692.21
80,553.77
20,138.44
-
-
REMAINDER APN 004
100,692.21
20,138.44
80,553.77
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
201,384.42
100,692.21
100,692.21
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 003
3,049,200
-
100,692.21
108,747.59
1.08
REMAINDER APN 004
3,049,200
-
100,692.21
108,747.59
1.08
-
-
-
-
-
-
TOTALS
6,098,400
-
201,384.42
217,495.18
CURRENT YEAR
NOMINAL TAX
NEW PROPERTY TAX
EXEMPT TAX
TAX BEFORE
ABATEMENT
TAX ABATEMENT
NET TAXES DUE
REMAINDER APN 003
108,856.44
-
-
108,856.44
(108.85)
108,747.59
REMAINDER APN 004
108,856.44
-
-
108,856.44
(108.85)
108,747.59
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTALS
217,712.88
-
-
217,712.88
(217.70)
217,495.18
REMAINDER PARCEL WORKSHEET
NAC 361.61036-38
EXAMPLE RP06
3.0%
: ABATEMENT PERCENTAGE
0.035700
: OVERLAPPING COMBINED TAX RATE
PRIOR YEAR
TOTALS
APN 001
APN 002
ACRES
2.00
1.00
1.00
GROSS TAXABLE VALUE
270,000
135,000
135,000
GROSS ASSESS VALUE
94,500
47,250
47,250
NET TAXES DUE
3,373.65
1,686.83
1,686.83
PRIOR YEAR
TOTAL ACRES
ACRES APN 001
ACRES APN 002
REMAINDER APN 003
1.00
0.75
0.25
REMAINDER APN 004
1.00
0.25
0.75
-
-
TOTALS
2.00
1.00
1.00
-
-
PRIOR YEAR
PERCENTAGE NET
TOTAL TAXES
PERCENTAGE NET
TAXES APN 001
PERCENTAGE NET
TAXES APN 002
REMAINDER APN 003
50.0%
75.0%
25.0%
REMAINDER APN 004
50.0%
25.0%
75.0%
-
0.0%
0.0%
0.0%
-
0.0%
0.0%
0.0%
TOTALS
100%
100%
100.0%
0.0%
0.0%
PRIOR YEAR
TOTAL GROSS
ASSESSED VALUE
GROSS ASSESSED
VALUE APN 001
GROSS ASSESSED
VALUE APN 002
REMAINDER APN 003
47,251
35,438
11,813
REMAINDER APN 004
47,251
11,813
35,438
-
-
-
-
-
-
-
-
TOTALS
94,502
47,251
47,251
-
-
PRIOR YEAR
TOTAL TAXABLE BASIS
ALLOCATION
TAXABLE BASIS
ALLOCATION APN 001
TAXABLE BASIS
ALLOCATION APN 002
REMAINDER APN 003
1,686.86
1,265.14
421.72
REMAINDER APN 004
1,686.86
421.72
1,265.14
-
-
-
-
-
-
-
-
TOTALS
3,373.72
1,686.86
1,686.86
-
-
CURRENT YEAR
EXISTING ASSESSED
VALUE
NEW ASSESSED VALUE
TAX ABATEMENT BASIS
CAPPED TAX
CAP FACTOR
REMAINDER APN 003
48,443
4,057
1,686.86
1,737.47
1.03
REMAINDER APN 004
48,443
4,057
1,686.86
1,737.47
1.03
-
-
-
-
-
-
TOTALS
96,886
8,114
3,