AB135 - Revises provisions relating to certain tax exemptions for veterans and surviving spouses of veterans. (BDR 32-236)

A.B. 135 - *AB135* ASSEMBLY BILL NO. 135–ASSEMBLYMEMBERS YUREK AND D’SILVA PREFILED JANUARY 28, 2025 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions relating to certain tax exemptions for veterans and surviving spouses of veterans. (BDR 32-236) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to taxation; extending certain partial tax exemptions for veterans to surviving spouses who satisfy certain criteria; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law exempts from property taxes $1,000 of the assessed valuation of 1 property, adjusted each fiscal year using the Consumer Price Index, in which a 2 surviving spouse who is a resident of this State has an interest. (NRS 361.080) 3 Existing law also exempts from property taxes $2,000 of the assessed valuation of 4 property, as adjusted each fiscal year using the Consumer Price Index, in which a 5 veteran who served on active duty under certain circumstances has an interest. 6 (NRS 361.090) Section 1 of this bill expands this exemption so that a person who 7 is a resident of this State and is the surviving spouse of such a veteran is entitled to 8 the veteran’s exemption from property taxes. Under section 1, the surviving spouse 9 of a veteran who receives the veteran’s exemption from property taxes would not 10 be entitled to an additional exemption under existing law for surviving spouses. 11 Existing law provides a partial exemption from property taxes for a veteran 12 with a permanent service-connected disability, or the surviving spouse of such a 13 veteran, and prohibits a person who claims this partial exemption as a disabled 14 veteran from obtaining the other property tax exemption otherwise allowable for a 15 veteran. Existing law, however, provides that a person who qualifies as both a 16 veteran and also the surviving spouse of a veteran with a permanent service- 17 connected disability may claim both of the veterans’ exemptions from property 18 taxes. (NRS 361.091) Section 2 of this bill: (1) maintains the authorization of a 19 person who qualifies as a veteran and also as the surviving spouse of a veteran with 20 a permanent service-connected disability to claim both the exemption for veterans 21 and the exemption for surviving spouses of veterans with a permanent service- 22 connected disability; and (2) provides that a person who is the surviving spouse of a 23 – 2 – - *AB135* veteran with a service-connected disability, but who does not qualify as a veteran, 24 is not entitled to an additional exemption as the surviving spouse of a veteran 25 pursuant to section 1 if the person claims the exemption for surviving spouses of 26 veterans with a permanent service-connected disability. 27 Existing law provides an exemption from the governmental services taxes 28 otherwise due on the vehicle of a surviving spouse, to the extent of $1,000 of the 29 determined valuation, as adjusted each fiscal year using the Consumer Price Index. 30 (NRS 371.101) Under existing law, a veteran who served on active duty under 31 certain circumstances is entitled to an exemption from the governmental services 32 taxes otherwise due on a vehicle of the veteran, to the extent of $2,000 of the 33 determined valuation, as adjusted each fiscal year using the Consumer Price Index. 34 (NRS 371.103) Section 4 of this bill expands this exemption so that a person who 35 is a resident of this State and is the surviving spouse of such a veteran is entitled to 36 the veteran’s exemption. Under section 4, the surviving spouse of a veteran who 37 receives the veteran’s exemption from the governmental services taxes would not 38 be entitled to an additional exemption under existing law for surviving spouses. 39 Existing law provides a partial exemption from governmental services taxes for 40 a veteran with a permanent service-connected disability, or the surviving spouse of 41 such a veteran, and prohibits a person who claims this partial exemption as a 42 disabled veteran from obtaining the other exemption from governmental services 43 taxes otherwise allowable for a veteran. Existing law, however, provides that a 44 person who qualifies as both a veteran and the surviving spouse of a veteran with a 45 permanent service-connected disability may claim both of the veterans’ exemptions 46 from governmental services taxes. (NRS 371.104) Section 5 of this bill: (1) 47 maintains the authorization of a person who is a veteran and also the surviving 48 spouse of a veteran with a permanent service-connected disability to claim both the 49 exemption for veterans and the exemption for surviving spouses of veterans with a 50 permanent service-connected disability; and (2) provides that a person who is the 51 surviving spouse of a veteran with a service-connected disability, but who does not 52 qualify as a veteran, is not entitled to an additional exemption as the surviving 53 spouse of a veteran pursuant to section 4 if the person claims the exemption for 54 surviving spouses of veterans with a permanent service-connected disability. 55 Under existing law, the partial exemption from property taxes to which a 56 surviving spouse or veteran is entitled is reduced to the extent of any partial 57 exemption from governmental services taxes allowed for the surviving spouse or 58 veteran. (NRS 361.1565) Section 3 of this bill provides that any exemption from 59 property taxes to which a surviving spouse of a veteran is entitled pursuant to 60 section 1 will be reduced to the extent of any partial exemption from governmental 61 services taxes allowed to the surviving spouse pursuant to section 4. 62 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 361.090 is hereby amended to read as follows: 1 361.090 1. The property, to the extent of $2,000 assessed 2 valuation, of any actual bona fide resident of the State of Nevada 3 who: 4 (a) Has served a minimum of 90 continuous days on active duty, 5 who was assigned to active duty at some time between April 21, 6 1898, and June 15, 1903, or between April 6, 1917, and 7 November 11, 1918, or between December 7, 1941, and 8 – 3 – - *AB135* December 31, 1946, or between June 25, 1950, and May 7, 1975, or 1 between September 26, 1982, and December 1, 1987, or between 2 October 23, 1983, and November 21, 1983, or between 3 December 20, 1989, and January 31, 1990, or between August 2, 4 1990, and April 11, 1991, or between December 5, 1992, and 5 March 31, 1994, or between November 20, 1995, and December 20, 6 1996; 7 (b) Has served on active duty in connection with carrying out 8 the authorization granted to the President of the United States in 9 Public Law 102-1; or 10 (c) Has served on active duty in connection with a campaign or 11 expedition for service in which a medal has been authorized by the 12 Government of the United States, regardless of the number of days 13 served on active duty, 14  and who received, upon severance from service, an honorable 15 discharge or certificate of satisfactory service from the Armed 16 Forces of the United States, or who, having so served, is still serving 17 in the Armed Forces of the United States, is exempt from taxation. 18 The property, to the extent of $2,000 assessed valuation, of any 19 actual bona fide resident of the State of Nevada who is the 20 surviving spouse of a person who satisfied the requirements of 21 paragraph (a), (b) or (c) and who received, upon severance from 22 service, an honorable discharge or certificate of satisfactory 23 service from the Armed Forces of the United States, is exempt 24 from taxation. 25 2. For the purpose of this section, the first $2,000 assessed 26 valuation of property in which an applicant has any interest shall be 27 deemed the property of the applicant. 28 3. The exemption may be allowed only to a claimant who files 29 an affidavit with his or her claim for exemption on real property 30 pursuant to NRS 361.155. The affidavit may be filed at any time by 31 a person claiming exemption from taxation on personal property. 32 4. The affidavit must be made before the county assessor or a 33 notary public and filed with the county assessor. It must state that 34 the affiant is a bona fide resident of the State of Nevada who meets 35 all the other requirements of subsection 1 and that the exemption is 36 not claimed in any other county in this State. After the filing of the 37 original affidavit, the county assessor shall, except as otherwise 38 provided in this subsection, mail a form for: 39 (a) The renewal of the exemption; and 40 (b) The designation of any amount to be credited to the Gift 41 Account for the Veterans Home in Southern Nevada or the Gift 42 Account for the Veterans Home in Northern Nevada established 43 pursuant to NRS 417.145, 44 – 4 – - *AB135*  to the person each year following a year in which the exemption 1 was allowed for that person. The form must be designed to facilitate 2 its return by mail by the person claiming the exemption. If so 3 requested by the person claiming the exemption, the county assessor 4 may provide the form to the person by electronic means in lieu of by 5 mail. The county assessor may authorize the return of the form by 6 electronic means in accordance with the provisions of chapter 719 7 of NRS. 8 5. Persons in actual military service are exempt during the 9 period of such service from filing the annual forms for renewal of 10 the exemption, and the county assessors shall continue to grant the 11 exemption to such persons on the basis of the original affidavits 12 filed. In the case of any person who has entered the military service 13 without having previously made and filed an affidavit of exemption, 14 the affidavit may be filed in his or her behalf during the period of 15 such service by any person having knowledge of the facts. 16 6. Before allowing any veteran’s exemption pursuant to the 17 provisions of this chapter, the county assessor shall require proof of 18 status of the veteran, and for that purpose shall require production of 19 an honorable discharge or certificate of satisfactory service or a 20 certified copy thereof, or such other proof of status as may be 21 necessary. 22 7. A surviving spouse claiming an exemption pursuant to this 23 section must file with the county assessor an affidavit declaring 24 that: 25 (a) The surviving spouse was married to and living with the 26 veteran for the 5 years preceding his or her death; 27 (b) The veteran was eligible for the exemption at the time of 28 his or her death or would have been eligible if the veteran had 29 been a resident of the State of Nevada; 30 (c) The surviving spouse has not remarried; and 31 (d) The surviving spouse is a bona fide resident of the State of 32 Nevada. 33  The affidavit required by this subsection is in addition to the 34 certification required pursuant to subsections 4 and 6. After 35 the filing of the original affidavit required by this subsection, the 36 county assessor shall, except as otherwise provided in this 37 subsection, mail a form for the renewal of the exemption to the 38 person each year following a year in which the exemption was 39 allowed for that person. The form must be designed to facilitate its 40 return by mail by the person claiming the exemption. If so 41 requested by the person claiming the exemption, the county 42 assessor may provide the form to the person by electronic means 43 in lieu of by mail. The county assessor may authorize the return of 44 – 5 – - *AB135* the form by electronic means in accordance with the provisions of 1 chapter 719 of NRS. 2 8. If a tax exemption is allowed under this section to a person 3 who qualifies for the exemption as the surviving spouse of a 4 veteran, that person is not entitled to an exemption under 5 NRS 361.080. 6 9. If any person files a false affidavit or produces false proof to 7 the county assessor or a notary public and, as a result of the false 8 affidavit or false proof, the person is allowed a tax exemption to 9 which the person is not entitled, the person is guilty of a gross 10 misdemeanor. 11 [8.] 10. Beginning with the 2005-2006 Fiscal Year, the 12 monetary amounts in subsections 1 and 2 must be adjusted for each 13 fiscal year by adding to the amount the product of the amount 14 multiplied by the percentage increase in the Consumer Price Index 15 (All Items) from July 2003 to the July preceding the fiscal year for 16 which the adjustment is calculated. The Department shall provide to 17 each county assessor the adjusted amount, in writing, on or before 18 September 30 of each year. 19 Sec. 2. NRS 361.091 is hereby amended to read as follows: 20 361.091 1. A bona fide resident of the State of Nevada who 21 has incurred a permanent service-connected disability and has been 22 honorably discharged from the Armed Forces of the United States, 23 or his or her surviving spouse, is entitled to an exemption. 24 2. The amount of exemption is based on the total percentage of 25 permanent service-connected disability. The maximum allowable 26 exemption for total permanent disability is the first $20,000 assessed 27 valuation. A person with a permanent service-connected disability 28 of: 29 (a) Eighty to 99 percent, inclusive, is entitled to an exemption of 30 $15,000 assessed value. 31 (b) Sixty to 79 percent, inclusive, is entitled to an exemption of 32 $10,000 assessed value. 33  For the purposes of this section, any property in which an 34 applicant has any interest is deemed to be the property of the 35 applicant. 36 3. The exemption may be allowed only to a claimant who has 37 filed an affidavit with his or her claim for exemption on real 38 property pursuant to NRS 361.155. The affidavit may be made at 39 any time by a person claiming an exemption from taxation on 40 personal property. 41 4. The affidavit must be made before the county assessor or a 42 notary public and be filed with the county assessor. It must state that 43 the affiant is a bona fide resident of the State of Nevada, that the 44 affiant meets all the other requirements of subsection 1 and that the 45 – 6 – - *AB135 [Text truncated for display. Full text available on LegiScan.]