AB447 - Provides for a partial abatement of the property taxes levied on certain residential rental dwellings. (BDR 32-1079)

A.B. 447 - *AB447* ASSEMBLY BILL NO. 447–ASSEMBLYMEMBERS HARDY; AND NGUYEN MARCH 17, 2025 ____________ Referred to Committee on Revenue SUMMARY—Provides for a partial abatement of the property taxes levied on certain residential rental dwellings. (BDR 32-1079) 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; revising provisions governing partial abatements of property taxes levied on certain residential rental dwellings; providing for a partial abatement of the property taxes levied on certain residential dwellings if the owner of the dwelling does not impose certain fees or restrictions on companion animals; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for a partial abatement of the property taxes levied on 1 certain residential rental dwellings if the amount of rent collected from each of the 2 tenants does not exceed the fair market rent for the county in which the dwelling is 3 located. (NRS 361.4724) Section 2 of this bill additionally provides for a partial 4 abatement of the property taxes levied on certain residential rental dwellings if the 5 owner does not impose: (1) a nonrefundable fee or additional rent related to 6 companion animals; (2) a limitation on the total number of companion animals with 7 which a tenant may reside, other than a limit imposed by the jurisdiction where the 8 property is located; or (3) breed or size restrictions on companion animals, except 9 for a prohibition against a particular companion animal that has been declared to be 10 dangerous or vicious. Section 2 limits the combined total amount of abatements 11 that may be provided to owners of residential rental dwellings that do not charge 12 rent that exceeds the fair market rent for the county in which the dwelling is located 13 and to owners of residential rental dwellings that do not impose fees, additional rent 14 or certain restrictions on companion animals to $10 million per year. 15 Section 1 of this bill provides that certain other abatements of property taxes 16 do not apply if the provisions of section 2 provide for a greater abatement. 17 – 2 – - *AB447* Sections 3-5 of this bill make conforming changes to refer to provisions that have 18 been renumbered by section 2. 19 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 361.4722 is hereby amended to read as 1 follows: 2 361.4722 1. Except as otherwise provided in or required to 3 carry out the provisions of subsection 3 and NRS 361.4725 to 4 361.4729, inclusive, the owner of any parcel or other taxable unit of 5 property, including property entered on the central assessment roll, 6 for which an assessed valuation was separately established for the 7 immediately preceding fiscal year is entitled to a partial abatement 8 of the ad valorem taxes levied in a county on that property each 9 fiscal year equal to the amount by which the product of the 10 combined rate of all ad valorem taxes levied in that county on the 11 property for that fiscal year and the amount of the assessed valuation 12 of the property which is taxable in that county for that fiscal year, 13 excluding any increase in the assessed valuation of the property 14 from the immediately preceding fiscal year as a result of any 15 improvement to or change in the actual or authorized use of the 16 property, exceeds the sum obtained by adding: 17 (a) The amount of all the ad valorem taxes: 18 (1) Levied in that county on the property for the immediately 19 preceding fiscal year; or 20 (2) Which would have been levied in that county on the 21 property for the immediately preceding fiscal year if not for any 22 exemptions from taxation that applied to the property for that prior 23 fiscal year but do not apply to the property for the current fiscal 24 year, 25  whichever is greater; and 26 (b) A percentage of the amount determined pursuant to 27 paragraph (a) which is equal to: 28 (1) The greater of: 29 (I) The average percentage of change in the assessed 30 valuation of all the taxable property in the county, as determined by 31 the Department, over the fiscal year in which the levy is made and 32 the 9 immediately preceding fiscal years; 33 (II) Twice the percentage of increase in the Consumer 34 Price Index for all Urban Consumers, U.S. City Average (All Items) 35 for the immediately preceding calendar year; or 36 (III) Zero; or 37 – 3 – - *AB447* (2) Eight percent, 1  whichever is less. 2 2. Except as otherwise provided in or required to carry out the 3 provisions of NRS 361.4725 to 361.4729, inclusive, the owner of 4 any remainder parcel of real property for which no assessed 5 valuation was separately established for the immediately preceding 6 fiscal year, is entitled to a partial abatement of the ad valorem taxes 7 levied in a county on that property for a fiscal year equal to the 8 amount by which the product of the combined rate of all ad valorem 9 taxes levied in that county on the property for that fiscal year and 10 the amount of the assessed valuation of the property which is 11 taxable in that county for that fiscal year, excluding any amount of 12 that assessed valuation attributable to any improvement to or change 13 in the actual or authorized use of the property that would not have 14 been included in the calculation of the assessed valuation of the 15 property for the immediately preceding fiscal year if an assessed 16 valuation had been separately established for that property for that 17 prior fiscal year, exceeds the sum obtained by adding: 18 (a) The amount of all the ad valorem taxes: 19 (1) Which would have been levied in that county on the 20 property for the immediately preceding fiscal year if an assessed 21 valuation had been separately established for that property for that 22 prior fiscal year based upon all the assumptions, costs, values, 23 calculations and other factors and considerations that would have 24 been used for the valuation of that property for that prior fiscal year; 25 or 26 (2) Which would have been levied in that county on the 27 property for the immediately preceding fiscal year if an assessed 28 valuation had been separately established for that property for that 29 prior fiscal year based upon all the assumptions, costs, values, 30 calculations and other factors and considerations that would have 31 been used for the valuation of that property for that prior fiscal year, 32 and if not for any exemptions from taxation that applied to the 33 property for that prior fiscal year but do not apply to the property for 34 the current fiscal year, 35  whichever is greater; and 36 (b) A percentage of the amount determined pursuant to 37 paragraph (a) which is equal to: 38 (1) The greater of: 39 (I) The average percentage of change in the assessed 40 valuation of all the taxable property in the county, as determined by 41 the Department, over the fiscal year in which the levy is made and 42 the 9 immediately preceding fiscal years; 43 – 4 – - *AB447* (II) Twice the percentage of increase in the Consumer 1 Price Index for all Urban Consumers, U.S. City Average (All Items) 2 for the immediately preceding calendar year; or 3 (III) Zero; or 4 (2) Eight percent, 5  whichever is less. 6 3. The provisions of subsection 1 do not apply to any property 7 for which the provisions of subsection 1 of NRS 361.4723 or 8 subsection 1 or 2 of NRS 361.4724 provide a greater abatement 9 from taxation. 10 4. Except as otherwise required to carry out the provisions of 11 NRS 361.4732 and any regulations adopted pursuant to NRS 12 361.4733, the amount of any reduction in the ad valorem taxes 13 levied in a county for a fiscal year as a result of the application of 14 the provisions of subsections 1 and 2 must be deducted from the 15 amount of ad valorem taxes each taxing entity would otherwise be 16 entitled to receive for that fiscal year in the same proportion as the 17 rate of ad valorem taxes levied in the county on the property by or 18 on behalf of that taxing entity for that fiscal year bears to the 19 combined rate of all ad valorem taxes levied in the county on the 20 property by or on behalf of all taxing entities for that fiscal year. 21 5. The Nevada Tax Commission shall adopt such regulations as 22 it deems appropriate to ensure that this section is carried out in a 23 uniform and equal manner. 24 6. For the purposes of this section, “remainder parcel of real 25 property” means a parcel of real property which remains after the 26 creation of new parcels of real property for development from one 27 or more existing parcels of real property, if the use of that remaining 28 parcel has not changed from the immediately preceding fiscal year. 29 Sec. 2. NRS 361.4724 is hereby amended to read as follows: 30 361.4724 1. The Legislature hereby finds and declares that 31 many Nevadans who cannot afford to own their own homes would 32 be adversely affected by large unanticipated increases in property 33 taxes, as those tax increases are passed down to renters in the form 34 of rent increases , and therefore the benefits of a charitable 35 exemption pursuant to subsection 8 of Section 1 of Article 10 of the 36 Nevada Constitution should be afforded to those Nevadans through 37 an abatement granted to the owners of residential rental dwellings 38 who charge rent that does not exceed affordable housing standards 39 for low-income housing. The Legislature therefore directs a partial 40 abatement of taxes for such owners as follows: 41 [1.] (a) Except as otherwise provided in or required to carry out 42 the provisions of [subsection 2] paragraph (b) and NRS 361.4725 43 to 361.4729, inclusive, if the amount of rent collected from each of 44 the tenants of a residential dwelling does not exceed the fair market 45 – 5 – - *AB447* rent for the county in which the dwelling is located, as most recently 1 published by the United States Department of Housing and Urban 2 Development, the owner of the dwelling is entitled to a partial 3 abatement of the ad valorem taxes levied in a county on that 4 property for each fiscal year equal to the amount by which the 5 product of the combined rate of all ad valorem taxes levied in that 6 county on the property for that fiscal year and the amount of the 7 assessed valuation of the property which is taxable in that county for 8 that fiscal year, excluding any increase in the assessed valuation of 9 the property from the immediately preceding fiscal year as a result 10 of any improvement to or change in the actual or authorized use of 11 the property, exceeds the sum obtained by adding: 12 [(a)] (1) The amount of all the ad valorem taxes: 13 [(1)] (I) Levied in that county on the property for the 14 immediately preceding fiscal year; or 15 [(2)] (II) Which would have been levied in that county on the 16 property for the immediately preceding fiscal year if not for any 17 exemptions from taxation that applied to the property for that prior 18 fiscal year but do not apply to the property for the current fiscal 19 year, 20  whichever is greater; and 21 [(b)] (2) Three percent of the amount determined pursuant to 22 [paragraph (a).] subparagraph (1). 23 [2.] (b) The provisions of [subsection 1] paragraph (a) do not 24 apply to: 25 [(a)] (1) Any hotels, motels or other forms of transient lodging; 26 [(b)] (2) Any property for which no assessed valuation was 27 separately established for the immediately preceding fiscal year; and 28 [(c)] (3) Any property for which the provisions of subsection 1 29 of NRS 361.4722 provide a greater abatement from taxation. 30 2. The Legislature hereby finds and declares that many 31 Nevadans who own companion animals and who cannot afford 32 their own homes are severely limited in their options for housing 33 by increases in additional rent and other fees charged to a tenant 34 for owning and possessing companion animals, and therefore the 35 benefits of a charitable exemption pursuant to subsection 8 of 36 Section 1 of Article 10 of the Nevada Constitution should be 37 afforded to those Nevadans through an abatement granted to the 38 owners of residential rental dwellings who do not impose 39 additional rent or fees or certain restrictions relating to 40 companion animals. The Legislature therefore directs a partial 41 abatement of taxes for such owners as follows: 42 (a) Except as otherwise provided in or required to carry out the 43 provisions of paragraph (b), subsection 4 and NRS 361.4725 to 44 361.4729, inclusive, if the owner of a residential rental dwelling 45 – 6 – - *AB447* does not impose upon the tenants of the residential rental dwelling 1 a nonrefundable fee or additional rent related to companion 2 animals residing in the residential rental dwelling, a limitation on 3 the total number of companion animals allowed to reside in the 4 residential rental dwelling, unless such a limitation is imposed by 5 the locality in which the residential rental dwelling is located, or 6 any restriction on the breed or size of a companion animal allowed 7 to reside in the residential rental dwelling, except for a prohibition 8 against a particular companion animal that has been declared to 9 be dangerous or vicious in accordance with NRS 202.500, the 10 owner is entitled to a partial abatement of the ad valorem taxes 11 levied in a county on that property for each fiscal year in an 12 amount equal to the lesser of: 13 (1) Seven thousand five hundred dollars; or 14 (2) The sum obtained by multiplying $750 for each unit 15 within the residential rental dwelling that satisfies the 16 requirements of this subsection by a fraction, the numerator of 17 which is the number of months during the immediately preceding 18 calendar year in which a companion animal was residing in the 19 unit on the first day of the month, and the denominator of which is 20 12. 21 (b) The provisions of paragraph (a) do not apply to any: 22 (1) Hotels, motels or other forms of transient lodging; or 23 (2) Property for which the provisions of subsection 1 of 24 NRS 361.4722 prov [Text truncated for display. Full text available on LegiScan.]