Property taxes help to fund important programs. However, they also significantly increase the cost of homeownership in Nevada. Those who acquire real property with a mortgage typically need to pay more each month to cover their tax obligations. Monthly payments include funds to cover tax and insurance obligations for the property.
Those who already own their homes outright or who have alternative financing arrangements may need to set aside funds on their own behalf to cover their property tax bills. Homeowners often have questions about how the state calculates property taxes and how they can question seemingly inappropriate valuations.
What are the basics of property tax in Clark County, Nevada?
How the county calculates taxes due
To determine the tax obligations of individual homeowners, the county first has to determine the estimated value of the property. The county Assessor uses rules established in Nevada state law to determine the taxable value of the property.
The Assessor estimates the current fair market value of the land and the likely cost to replace any improvements or structures on the property. The valuation process does factor in the depreciation of improvements. The state uses a 1.5% per year factor to calculate depreciation, although there is a maximum period of 50 years allowed.
Land values depend on sale prices for comparable properties in recent months. The Assessor should adjust the values for properties every year. Each district in Clark County has a slightly different tax rate. The assessor applies the local tax rate to a property based on its value to determine what the owner owes in property taxes.
What if the assessment is incorrect?
Sometimes, homeowners look at the assessment for their property and believe it is far too high. In scenarios where the taxable value is higher than the fair market value for the property, communication with the Assessor’s office is typically necessary.
Homeowners and the lawyers representing them can provide evidence to the Assessor regarding the current value of the property. In scenarios where an amicable resolution with the Assessor’s office is not possible, a formal appeal is possible.
The homeowner must submit forms to the County Board of Equalization. There’s a limited window of opportunity each year to do so. Homeowners hoping to appeal the assessed value of their home need to submit the appropriate documents between the beginning of December and January 15th or the next business day. Ensuring proper assessment is crucial to controlling the secondary cost of homeownership.
People navigating property tax issues in Clark County may need support. Discussing assessment concerns with a real estate attorney can help property owners determine the best path forward after a surprisingly high assessment.
