AB455 - Revises provisions governing property taxes. (BDR 32-324)

A.B. 455 - *AB455* ASSEMBLY BILL NO. 455–ASSEMBLYMEMBERS HANSEN, GRAY AND GURR MARCH 17, 2025 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions governing property taxes. (BDR 32-324) 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 that flags and certain related personal property are exempt from property taxes; increasing the property tax exemption for certain veterans and their surviving spouses by the amount of the assessed valuation of any flagpole that is a fixture or improvement to any real property in which the veteran or surviving spouse has an interest; and providing other matters properly relating thereto. Legislative Counsel’s Digest: The Nevada Constitution requires the Legislature to provide by law for a 1 uniform and equal rate of assessment and taxation of all property, with certain 2 exception. (Nev. Const. Art. 10, § 1(1)) According to the Nevada Supreme Court, 3 because the requirement for a uniform and equal rate of assessment and taxation of 4 property “declares that all property shall be taxed except mines and other property 5 for certain enumerated purposes, the legislature cannot exempt any taxable 6 property, except for” a purpose stated in the Nevada Constitution. (State v. Carson 7 Savings Bank, 17 Nev. 146, 151 (1882)) The Nevada Constitution authorizes the 8 Legislature to exempt from taxation property used for charitable purposes, which 9 includes, without limitation, authorization to exempt from property taxes property 10 in which certain veterans have an interest. (Nev. Const. Art. 10, § 1(8); Hendel v. 11 Weaver, 77 Nev. 16 (1961)) 12 Under existing law: (1) a veteran who served on active duty under certain 13 circumstances is entitled to an exemption from property taxes of $2,000 of the 14 assessed valuation of property in which the veteran has an interest, as adjusted each 15 fiscal year using the Consumer Price Index; and (2) a veteran with a permanent 16 service-connected disability, or the surviving spouse of such a veteran, is entitled 17 an exemption from property taxes of an amount of assessed valuation that is based 18 on the percentage of service-connected disability incurred by the veteran. 19 – 2 – - *AB455* (NRS 361.090, 361.091) Sections 2 and 3 of this bill increase the amount of these 20 exemptions from property taxes by the amount of any assessed valuation 21 attributable to a flagpole that is considered real property because it is a fixture or 22 improvement to any real property in which the person claiming the exemption has 23 an interest. 24 The Nevada Constitution exempts from property taxes “[a]ll household goods 25 and furniture used by a single household and owned by a member of that 26 household.” (Nev. Const. Art. 10, § 3) Under existing law, the household goods that 27 are exempt from property taxes include, without limitation, clothing, personal 28 effects, appliances that are not attached to real property, portable goods and storage 29 sheds. (NRS 361.069) Section 1 of this bill includes as household goods that are 30 exempt from property taxes flags and flagpoles that are considered personal 31 property because they are not attached to real property. 32 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 361.069 is hereby amended to read as follows: 1 361.069 1. Except as otherwise provided in this section, 2 household goods and furniture are exempt from taxation. 3 2. Except as otherwise provided in subsection 3, appliances 4 and furniture which are owned by a person who engages in the 5 business of renting the appliances or furniture to other persons are 6 not exempt from taxation. 7 3. Except as otherwise provided in this subsection, the 8 assessment of rented or leased appliances or furniture, or both, of a 9 time-share project governed by the provisions of chapter 119A of 10 NRS, which contains five or more units, must be reduced by a 11 percentage equal to the average percentage of time that all of the 12 units are occupied by an owner of a time share in the project. If the 13 units of the time-share project are occupied by owners of time 14 shares in the project for an average of more than 90 percent of the 15 fiscal year, the rented or leased appliances or furniture, or both, are 16 exempt from taxation. As used in this subsection: 17 (a) “Owner” has the meaning ascribed to it in NRS 119A.056. 18 (b) “Unit” has the meaning ascribed to it in NRS 119A.160. 19 4. As used in this section: 20 (a) “Household goods and furniture” includes, without 21 limitation, the following items if used in a residence: 22 (1) Clothing; 23 (2) Personal effects; 24 (3) Gold and silver; 25 (4) Jewelry; 26 (5) Appliances that are not attached to real property or a 27 mobile or manufactured home; 28 (6) Furniture; 29 – 3 – - *AB455* (7) Recreational equipment not required by NRS to be 1 registered; [and] 2 (8) Portable goods and storage sheds and other household 3 equipment [.] ; and 4 (9) Flags, flagpoles that are not fixtures or improvements to 5 real property and any other equipment for displaying a flag that is 6 not a fixture or improvement to real property. 7 (b) “Engages in the business of renting appliances or furniture” 8 means: 9 (1) Renting or leasing appliances or furniture, or both, to 10 other persons not in conjunction with the rental or lease of a 11 dwelling unit; or 12 (2) Renting or leasing appliances or furniture, or both, to 13 other persons in conjunction with the rental or lease of a dwelling 14 unit located in a complex containing five or more dwelling units 15 which are rented or leased by the owner to other persons in 16 conjunction with appliances or furniture, or both. 17 Sec. 2. NRS 361.090 is hereby amended to read as follows: 18 361.090 1. The property, to the extent of $2,000 assessed 19 valuation, plus the amount of any assessed valuation attributable 20 to a flagpole that is a fixture or improvement to real property, of 21 any actual bona fide resident of the State of Nevada who: 22 (a) Has served a minimum of 90 continuous days on active duty, 23 who was assigned to active duty at some time between April 21, 24 1898, and June 15, 1903, or between April 6, 1917, and 25 November 11, 1918, or between December 7, 1941, and 26 December 31, 1946, or between June 25, 1950, and May 7, 1975, or 27 between September 26, 1982, and December 1, 1987, or between 28 October 23, 1983, and November 21, 1983, or between 29 December 20, 1989, and January 31, 1990, or between August 2, 30 1990, and April 11, 1991, or between December 5, 1992, and 31 March 31, 1994, or between November 20, 1995, and December 20, 32 1996; 33 (b) Has served on active duty in connection with carrying out 34 the authorization granted to the President of the United States in 35 Public Law 102-1; or 36 (c) Has served on active duty in connection with a campaign or 37 expedition for service in which a medal has been authorized by the 38 Government of the United States, regardless of the number of days 39 served on active duty, 40  and who received, upon severance from service, an honorable 41 discharge or certificate of satisfactory service from the Armed 42 Forces of the United States, or who, having so served, is still serving 43 in the Armed Forces of the United States, is exempt from taxation. 44 – 4 – - *AB455* 2. For the purpose of this section, [the first $2,000 assessed 1 valuation of] any property in which an applicant has any interest 2 shall be deemed the property of the applicant. 3 3. The exemption may be allowed only to a claimant who files 4 an affidavit with his or her claim for exemption on real property 5 pursuant to NRS 361.155. The affidavit may be filed at any time by 6 a person claiming exemption from taxation on personal property. 7 4. The affidavit must be made before the county assessor or a 8 notary public and filed with the county assessor. It must state that 9 the affiant is a bona fide resident of the State of Nevada who meets 10 all the other requirements of subsection 1 and that the exemption is 11 not claimed in any other county in this State. After the filing of the 12 original affidavit, the county assessor shall, except as otherwise 13 provided in this subsection, mail a form for: 14 (a) The renewal of the exemption; and 15 (b) The designation of any amount to be credited to the Gift 16 Account for the Veterans Home in Southern Nevada or the Gift 17 Account for the Veterans Home in Northern Nevada established 18 pursuant to NRS 417.145, 19  to the person each year following a year in which the exemption 20 was allowed for that person. The form must be designed to facilitate 21 its return by mail by the person claiming the exemption. If so 22 requested by the person claiming the exemption, the county assessor 23 may provide the form to the person by electronic means in lieu of by 24 mail. The county assessor may authorize the return of the form by 25 electronic means in accordance with the provisions of chapter 719 26 of NRS. 27 5. Persons in actual military service are exempt during the 28 period of such service from filing the annual forms for renewal of 29 the exemption, and the county assessors shall continue to grant the 30 exemption to such persons on the basis of the original affidavits 31 filed. In the case of any person who has entered the military service 32 without having previously made and filed an affidavit of exemption, 33 the affidavit may be filed in his or her behalf during the period of 34 such service by any person having knowledge of the facts. 35 6. Before allowing any veteran’s exemption pursuant to the 36 provisions of this chapter, the county assessor shall require proof of 37 status of the veteran, and for that purpose shall require production of 38 an honorable discharge or certificate of satisfactory service or a 39 certified copy thereof, or such other proof of status as may be 40 necessary. 41 7. If any person files a false affidavit or produces false proof to 42 the county assessor or a notary public and, as a result of the false 43 affidavit or false proof, the person is allowed a tax exemption to 44 – 5 – - *AB455* which the person is not entitled, the person is guilty of a gross 1 misdemeanor. 2 8. Beginning with the 2005-2006 Fiscal Year, the monetary 3 amounts in [subsections] subsection 1 [and 2] must be adjusted for 4 each fiscal year by adding to the amount the product of the amount 5 multiplied by the percentage increase in the Consumer Price Index 6 (All Items) from July 2003 to the July preceding the fiscal year for 7 which the adjustment is calculated. The Department shall provide to 8 each county assessor the adjusted amount, in writing, on or before 9 September 30 of each year. 10 Sec. 3. NRS 361.091 is hereby amended to read as follows: 11 361.091 1. A bona fide resident of the State of Nevada who 12 has incurred a permanent service-connected disability and has been 13 honorably discharged from the Armed Forces of the United States, 14 or his or her surviving spouse, is entitled to an exemption. 15 2. The amount of exemption is based on the total percentage of 16 permanent service-connected disability. The maximum allowable 17 exemption for total permanent disability is the first $20,000 assessed 18 valuation [.] , plus the amount of any assessed valuation 19 attributable to a flagpole that is a fixture or improvement to real 20 property. A person with a permanent service-connected disability 21 of: 22 (a) Eighty to 99 percent, inclusive, is entitled to an exemption of 23 $15,000 assessed value [.] , plus the amount of any assessed 24 valuation attributable to a flagpole that is a fixture or 25 improvement to real property. 26 (b) Sixty to 79 percent, inclusive, is entitled to an exemption of 27 $10,000 assessed value [.] , plus the amount of any assessed 28 valuation attributable to a flagpole that is a fixture or 29 improvement to real property. 30  For the purposes of this section, any property in which an 31 applicant has any interest is deemed to be the property of the 32 applicant. 33 3. The exemption may be allowed only to a claimant who has 34 filed an affidavit with his or her claim for exemption on real 35 property pursuant to NRS 361.155. The affidavit may be made at 36 any time by a person claiming an exemption from taxation on 37 personal property. 38 4. The affidavit must be made before the county assessor or a 39 notary public and be filed with the county assessor. It must state that 40 the affiant is a bona fide resident of the State of Nevada, that the 41 affiant meets all the other requirements of subsection 1 and that the 42 exemption is not claimed in any other county within this State. After 43 the filing of the original affidavit, the county assessor shall, except 44 as otherwise provided in this subsection, mail a form for: 45 – 6 – - *AB455* (a) The renewal of the exemption; and 1 (b) The designation of any amount to be credited to the Gift 2 Account for the Veterans Home in Southern Nevada or the Gift 3 Account for the Veterans Home in Northern Nevada established 4 pursuant to NRS 417.145, 5  to the person each year following a year in which the exemption 6 was allowed for that person. The form must be designed to facilitate 7 its return by mail by the person claiming the exemption. If so 8 requested by the person claiming the exemption, the county assessor 9 may provide the form to the person by electronic means in lieu of by 10 mail. The county assessor may authorize the return of the form by 11 electronic means in accordance with the provisions of chapter 719 12 of NRS. 13 5. Before allowing any exemption pursuant to the provisions of 14 this section, the county assessor shall require proof of the 15 applicant’s status, and for that purpose shall require the applicant to 16 produce an original or certified copy of: 17 (a) An honorable discharge or other document of honorable 18 separation from the Armed Forces of the United States which 19 indicates the total percentage of his or her permanent service- 20 connected disa [Text truncated for display. Full text available on LegiScan.]