AB243 - Establishes certain partial tax exemptions for certain Nevada Gold Star Spouses. (BDR 32-163)

EXEMPT (Reprinted with amendments adopted on June 2, 2025) SECOND REPRINT A.B. 243 - *AB243_R2* ASSEMBLY BILL NO. 243–ASSEMBLYMEMBERS HIBBETTS; AND D’SILVA FEBRUARY 17, 2025 ____________ Referred to Committee on Revenue SUMMARY—Establishes certain partial tax exemptions for certain Nevada Gold Star Spouses. (BDR 32-163) 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; providing partial exemptions from the property and governmental services taxes for certain Nevada Gold Star Spouses; establishing certain requirements for claiming the exemptions; requiring the maximum allowable amount of the exemptions be adjusted annually; authorizing an eligible Nevada Gold Star Spouse to direct an amount equivalent to the exemptions to certain charitable gift accounts in lieu of claiming the exemptions; providing for the reduction of the property tax exemption in certain circumstances; providing penalties; 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: (1) $2,000 of the assessed valuation 4 of 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; and 6 (2) $20,000 of the assessed valuation of property, as adjusted each fiscal year using 7 the Consumer Price Index, in which a veteran with a permanent service-connected 8 disability of 100 percent, or the surviving spouse of such a veteran, has an interest. 9 (NRS 361.090, 361.091) Under existing law, in lieu of applying these exemptions 10 to property taxes, the same partial exemptions may be applied to reduce the amount 11 of governmental services tax owed by a surviving spouse, veteran, disabled veteran 12 or surviving spouse of a veteran or disabled veteran upon the annual renewal of the 13 registration of a vehicle. (NRS 361.1565, 371.101, 371.103, 371.104) 14 – 2 – - *AB243_R2* Sections 1 and 4 of this bill, respectively, exempt from property taxes and 15 governmental services taxes $20,000 of the assessed valuation, adjusted each fiscal 16 year using the Consumer Price Index, of the property of a Nevada Gold Star 17 Spouse. Sections 1 and 4 define Nevada Gold Star Spouse as the surviving spouse 18 of a member of the Armed Forces of the United States who died under certain 19 circumstances while on active duty in the Armed Forces and who, at the time of his 20 or her death, was a resident of this State. Section 3 of this bill makes a conforming 21 change to apply to sections 1 and 4 existing law which requires a partial exemption 22 from property taxes to be reduced by any partial exemption from the governmental 23 services taxes. Sections 2 and 5 of this bill make a conforming change to authorize 24 a Nevada Gold Star Spouse who qualifies for the partial exemption from property 25 taxes or governmental services taxes under section 1 or 4, respectively, to request 26 the deposit of an amount equal to the partial exemption to the Gift Account for the 27 Veterans Home in Southern Nevada or the Gift Account for the Veterans Home in 28 Northern Nevada. (NRS 361.0905, 371.1035) Section 6 of this bill makes a 29 conforming change to apply to section 4 existing law governing the filing of claims 30 for exemptions for governmental services tax or the designation of amounts to be 31 credited to a Gift Account for a Veterans Home. (NRS 371.105) Section 7 of this 32 bill makes a conforming change to apply existing law requiring the provision of 33 notice to the Department of Motor Vehicles when an owner of a vehicle is no 34 longer eligible for the exemption under section 4. 35 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 361 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. A bona fide resident of the State of Nevada who is a 3 Nevada Gold Star Spouse, and who has not remarried, is entitled 4 to an exemption not to exceed the amount of $20,000 assessed 5 valuation. For the purposes of this section, the first $20,000 6 assessed valuation of property in which a person has any interest 7 is deemed to be the property of the person. 8 2. The exemption may be allowed only to a claimant who has 9 filed an affidavit with his or her claim for exemption on real 10 property pursuant to NRS 361.155. The affidavit may be made at 11 any time by a person claiming an exemption from taxation on 12 personal property. 13 3. The affidavit required by subsection 2 must be made before 14 the county assessor or a notary public and be filed with the county 15 assessor. It must state that the affiant: 16 (a) Is a bona fide resident of the State of Nevada; 17 (b) Is a Nevada Gold Star Spouse; 18 (c) Has not remarried; and 19 (d) Has not claimed the exemption in any other county within 20 this State. 21 – 3 – - *AB243_R2* 4. After the filing of the original affidavit required by 1 subsection 2, the county assessor shall, except as otherwise 2 provided in this subsection, mail a form for: 3 (a) The renewal of the exemption; and 4 (b) The designation of any amount to be credited to the Gift 5 Account for the Veterans Home in Southern Nevada or the Gift 6 Account for the Veterans Home in Northern Nevada established 7 pursuant to NRS 417.145, 8  to the person each year following a year in which the exemption 9 was allowed for that person. The form must be designed to 10 facilitate its return by mail by the person claiming the exemption. 11 If so requested by the person claiming the exemption, the county 12 assessor may provide the form to the person by electronic means 13 in lieu of by mail. The county assessor may authorize the return of 14 the form by electronic means in accordance with the provisions of 15 chapter 719 of NRS. 16 5. Before allowing any exemption pursuant to the provisions 17 of this section, the county assessor shall require proof that the 18 person is a Nevada Gold Star Spouse. For this purpose, the county 19 assessor shall require the person to produce: 20 (a) A DD Form 1300, “Report of Casualty,” or its succeeding 21 form, issued by the United States Department of Defense that 22 identifies the member of the Armed Forces to whom the person 23 was married and indicates that the member: 24 (1) Died under any of the circumstances described in 10 25 U.S.C. § 1126(a); and 26 (2) Listed Nevada as his or her home of record; and 27 (b) Documentation that the person was married to the member. 28 6. The allowance of a tax exemption to a person under this 29 section does not affect the eligibility of that person for an 30 exemption under NRS 361.090 or 361.091 based on the person’s 31 own service in the Armed Forces of the United States, if 32 applicable. 33 7. If any person files a false affidavit or produces false proof 34 to the county assessor or a notary public and, as a result of the 35 false affidavit or false proof, the person is allowed a tax exemption 36 to which the person is not entitled, the person is guilty of a gross 37 misdemeanor. 38 8. The monetary amounts in subsection 1 must be adjusted 39 for each fiscal year by adding to the amount the product of the 40 amount multiplied by the percentage increase in the consumer 41 price inflation index from July 2003 to the July preceding the 42 fiscal year for which the adjustment is calculated. The Department 43 shall provide to each county assessor the adjusted amount, in 44 writing, on or before September 30 of each year. 45 – 4 – - *AB243_R2* 9. As used in this section: 1 (a) “Consumer price inflation index” means the Consumer 2 Price Index for All Urban Consumers, West Region (All Items), as 3 published by the United States Department of Labor or, if that 4 index ceases to be published by the United States Department of 5 Labor, the published index selected by the Department of Taxation 6 pursuant to subsection 11 of NRS 361.091. 7 (b) “Nevada Gold Star Spouse” means the surviving spouse of 8 a member of the Armed Forces of the United States who: 9 (1) Died under any of the circumstances described in 10 10 U.S.C. § 1126(a); and 11 (2) At the time of his or her death was a resident of this 12 State. 13 (c) “Surviving spouse” includes a surviving domestic partner 14 as set forth in NRS 122A.200. 15 Sec. 2. NRS 361.0905 is hereby amended to read as follows: 16 361.0905 1. Any person who qualifies for an exemption 17 pursuant to NRS 361.090 or 361.091 or section 1 of this act may, in 18 lieu of claiming the exemption: 19 (a) Pay to the county tax receiver all or any portion of the 20 amount by which the tax would be reduced if the person claimed the 21 exemption; and 22 (b) Direct the county tax receiver to deposit that amount for 23 credit to the Gift Account for the Veterans Home in Southern 24 Nevada or the Gift Account for the Veterans Home in Northern 25 Nevada established pursuant to NRS 417.145. 26 2. Any person who wishes to waive his or her exemption 27 pursuant to this section shall designate the amount to be credited to 28 a Gift Account on a form provided by the Nevada Tax Commission. 29 3. The county tax receiver shall deposit any money received 30 pursuant to this section with the State Treasurer for credit to the Gift 31 Account for the Veterans Home in Southern Nevada or the Gift 32 Account for the Veterans Home in Northern Nevada established 33 pursuant to NRS 417.145. The State Treasurer shall not accept more 34 than a total of $2,000,000 for credit to a Gift Account pursuant to 35 this section and NRS 371.1035 during any fiscal year. 36 Sec. 3. NRS 361.1565 is hereby amended to read as follows: 37 361.1565 1. The personal property tax exemption to which a 38 surviving spouse, person who is blind, veteran , [or] surviving 39 spouse of a veteran who incurred a service-connected disability or 40 Nevada Gold Star Spouse is entitled pursuant to NRS 361.080, 41 361.085, 361.090 or 361.091 or section 1 of this act is reduced to 42 the extent that he or she is allowed an exemption from the 43 governmental services tax pursuant to chapter 371 of NRS. 44 – 5 – - *AB243_R2* 2. As used in this section, “Nevada Gold Star Spouse” has the 1 meaning ascribed to it in section 1 of this act. 2 Sec. 4. Chapter 371 of NRS is hereby amended by adding 3 thereto a new section to read as follows: 4 1. A bona fide resident of the State of Nevada who is a 5 Nevada Gold Star Spouse, and who has not remarried, is entitled 6 to an exemption from the payment of governmental services taxes 7 on vehicles not to exceed the amount of $20,000 of determined 8 valuation. For the purpose of this section, the first $20,000 of 9 determined valuation of vehicles in which a person described in 10 this subsection has any interest shall be deemed to belong entirely 11 to that person. 12 2. A person claiming the exemption shall file annually with 13 the Department in the county where the exemption is claimed an 14 affidavit that declares that the person: 15 (a) Is a bona fide resident of the State of Nevada; 16 (b) Is a Nevada Gold Star Spouse; 17 (c) Has not remarried; and 18 (d) Has not claimed the exemption in any other county within 19 this State. 20 3. After the filing of the original affidavit required by 21 subsection 2, the county assessor in the county where the 22 exemption is claimed shall, except as otherwise provided in this 23 subsection, mail a form for: 24 (a) The renewal of the exemption; and 25 (b) The designation of any amount to be credited to the Gift 26 Account for the Veterans Home in Southern Nevada or the Gift 27 Account for the Veterans Home in Northern Nevada established 28 pursuant to NRS 417.145, 29  to the person each year following a year in which the exemption 30 was allowed for that person. The form must be designed to 31 facilitate its return by mail by the person claiming the exemption. 32 If so requested by the person claiming the exemption, the county 33 assessor may provide the form to the person by electronic means 34 in lieu of by mail. 35 4. Before allowing any exemption pursuant to the provisions 36 of this section, the Department shall require proof that the person 37 is a Nevada Gold Star Spouse. For this purpose, the Department 38 shall require the person to produce: 39 (a) A DD Form 1300, “Report of Casualty,” or its succeeding 40 form, issued by the United States Department of Defense that 41 identifies the member of the Armed Forces to whom the person 42 was married and indicates that the member: 43 (1) Died under any of the circumstances described in 10 44 U.S.C. § 1126(a); and 45 – 6 – - *AB243_R2* (2) Listed Nevada as his or her home of record; and 1 (b) Documentation that the person was married to the member. 2 5. The allowance of a tax exemption to a person under this 3 section does not affect the eligibility of that person for an 4 exemption under NRS 371.103 or 371.104 based on the person’s 5 own service in the Armed Forces of the United States, if 6 applicable. 7 6. If any person files a false affidavit or produces false proof 8 to the Department and, as a result of the false affidavit or false 9 proof, the person is allowed a tax exemption to which the person is 10 not entitled, the person is guilty of a gross misdemeanor. 11 7. The monetary amount in subsection 1 must be adjusted for 12 each fiscal year by adding to the amount the product of the 13 amount multiplied by the percentage increase in the consumer 14 price inflation index from December 2003 to the December 15 preceding the fiscal year for which the adjustment is calculated. 16 8. For the purposes of this section: 17 (a) “Consumer price inflation index” means the Consumer 18 Price Index for All Urban Consumers, West Region (All Items), as 19 published by the United States Department of Labor or, if that 20 index ceases to be published by the United States D [Text truncated for display. Full text available on LegiScan.]