Example of "Real Property"
See definition below.

Custom Home — Photo by Laurie Young

Example of "Personal Property"
See definition below.

NAS Fallon — Photo by Laurie Young

AD VALOREM — "According to value". Refers to the property tax system.

AGRICULTURAL PROPERTY — Land developed for at least three (3) consecutive years immediately preceding the assessment date to agricultural use on which $5,000 gross income has been produced in an agricultural pursuit.

APPRAISAL — The valuation of property. Nevada Revised Statutes require all real property to be reappraised at least once every five years. This is the responsibility of the County Assessor who determines the estimate of the full cash value of land by taking into account its location, zoning, actual use, income produced, etc. The taxable value of buildings is the estimated replacement cost less depreciation.

ASSESSED VALUE — 35% of the total appraised value (taxable value) of the property.

ASSESSMENT ROLL — There are two rolls, the secured roll and the unsecured roll.

• Secured Roll — The listing of real property values as prepared annually by the Assessor. The payment of the tax is secured by a lien against the real property.
• Unsecured Roll — Personal property values not secured by the ownership of real property and the value of new construction which has not yet been added to the secured roll.

BOARDS OF EQUILIZATION — The County Board of Equalization is a three or five Member board appointed by the Chairman of the County Commission. The State Board of Equalization is composed of five members appointed by the Governor. The qualifications are listed in statue. One member must be a property appraiser.

BONDS — There are generally two (2) types of bonds, which are sold to finance capital expenditures:

• General Obligation (G.O.) Bonds — These bonds are secured by the full faith and credit of the issuing government. A property tax rate is established to redeem these bonds.
• Revenue Bonds — These bonds are redeemed by a non—property tax. For example: sales tax to redeem street construction bonds, or County hospital revenues to redeem hospital construction bonds.

BONDED INDEBTEDNESS — The sale of bonds for capital construction projects or capital equipment purchases. The repayment of bonds is frequently by a property tax levy.

• Medium Term Debt — Incurred for a duration not longer than 10 years. DOES NOT REQUIRE VOTER APPROVAL. Approved by the Director of the Department of Taxation.
• Long Term Debt — Incurred for a duration of over 10 years. MUST BE APPROVED BY THE VOTERS at a regular election.

CONSUMABLE SUPPLIES — All tangible personal property consumed (used up, drained, absorbed, dissipated, or expended) during the normal day-to-day operation of the business, not intended to become a component part of a manufactured item for sale.

COUNTY ASSESSOR— The elected official responsible for the valuation and assessment of property. In some counties, the Assessor also collects the personal property tax.

COUNTY COMMISSION/CITY COUNCIL MEMBERS — The elected officials responsible for setting budgets and spending levels of the city or county. These expenditures will determine the property tax rate needed to fund the city or county budget.

COUNTY TREASURER — The elected official responsible for the billing and collection of real property taxes.

DEPRECIATION — This is the estimate of the decrease in value in a wasting asset (not land) due to such factors as use and obsolescence. In Nevada, for purposes of real property appraisal, depreciation is calculated at 1.5 percent of the cost of replacement for each year up to 50 years. Personal property depreciation is calculated according to a schedule approved by the Nevada Tax Commission. For purposes of taxation motor vehicles are not considered personal property and are not subject to property taxes. They are however, subject to a separate privilege tax. 

FISCAL YEAR — In Nevada it is that period of time from July 1 of one year to June 30 of the following year. It is also the taxable year for purposes of property taxation.

FULL CASH VALUE — The most probable price which property would bring in a competitive and open market under all conditions requisite for a fair sale.

IMPROVEMENT DISTRICTS (General or Special) — Districts created by a local Government to provide a specific service to the residents within the district. Districts may be created for fire service, streets, sewers, etc.

LEASEHOLD IMPROVEMENT — Modifications to a building that are made to accommodate a specific business. Some examples are: draperies, partitions, paneling, counters, shelving, built-in compressed air systems, heavy-duty electrical systems, etc.

LEVY — see Tax Levy.

LIEN — Under Nevada Law taxes levied against property are a perpetual lien against the property assessed until the tax and any penalty charges and interest which may be due are paid.

MARKET VALUE — see Full Cash Value.

NOTICE OF ASSESSMENT — A statement sent by the County Assessor in December to the property owner, showing the taxable value and assessed value of land, buildings, and secured personal property for the current fiscal year and next fiscal year. If the property owner disagrees with the taxable value, he may file an appeal with the County Board of Equalization.

• Personal Property on the Secured Roll — A statement sent by the Assessor in December to the property owner, showing the taxable value and assessed value of secured personal property together with the value of land or buildings. 
• Personal Property on the Unsecured Roll — The request for a list of personal property is generally sent out by July 1 and should be returned to the Assessor by July 31. The taxpayer must pay within 30 days of the billing demand.

PARCEL NUMBER — This is a numerical system used for identifying real property.

POSSESSORY INTEREST — Property which is for any reason exempt from taxation, but which is leased to or available for use by the taxpayer. Possessory interest situations typically will exist in property that is owned by a government agency or certain charitable organizations. The possessory interest is taxable in the same manner as if the user owned the property.

PROPERTY — Consists of two categories, "real" and "personal". 

• Real — Land, buildings, and improvements, which are not normally removable and manufactured homes converted to real property.
• Personal — All property not permanently affixed to land, such as aircraft, business equipment, agricultural equipment, billboards, etc. and manufactured homes not converted to real property.

TAX — A compulsory charge levied by a governmental unit against the wealth of a person, natural or corporate.

TAX LEVY/RATE — This amount is expressed as $X.XX per $100.00 of assessed valuation. It is the rate necessary to support the budgets as determined by the elected governing boards.

TAX OVERRIDE — An increase in the allowed property tax rate, either legislatively or voter approved and used for operating expenditures.

TAX ROLL — see "Assessment Roll".

TAXABLE VALUE — For vacant land - full cash value; for improvements - replacement cost new less depreciation. Taxable value is not to exceed full cash value.

Back to top