Low property taxes are one of the main reasons Las Vegas investment properties are so attractive. As a general rule of thumb annual estimated property taxes can be calculated at roughly .5%-.75% of the purchase price. This public search page can be used to determine current property taxes for any property in Las Vegas and Henderson: Clark County Treasurer.
The amount of property taxes a homeowner pays is determined by multiplying the tax rate by the assessed value of the property, both land and improvements (the home). Nevada law NRS 361 states that the assessed value of a property is based on a ratio of 35% of the taxable value which is determined by guidelines established by the State Department of Taxation. Nevada law prohibits a taxable value that exceeds the full cash value of the home, and the county assessor is required to make a reduction if the owner calls to his or her attention the facts warranting it. The assessor may consider comparable sales based on prices actually paid in market transactions when determining whether taxable value exceeds full cash value.
In layman’s terms, the assessed value is only 35% of the estimated value, and then the tax is only 3.5% of that so you might only see 35% of the sellable value listed as the assessed value.
To calculate the tax on a new home that does not qualify for the tax abatement, let’s assume you have a house with a taxable value of $200,000 located in the City of Las Vegas with a tax rate of $3.50 per hundred dollars of assessed value. To determine the assessed value, multiply the taxable value of the home ($200,000) by the assessment ratio (35%): $200,000 X .35 = $70,000 assessed value.
To calculate the tax, multiply the assessed value ($70,000) by the tax rate (.035): $70,000 x .035 = $2,450.00 tax for the fiscal year.
NRS 361.4723 provides a partial abatement of taxes.
If the home has already qualified for a 3% or 8% tax abatement, taxes will be figured on the assessed value from the base year it qualified. Questions regarding a tax amount for a specific property should contact the Treasurer’s Office at (702) 455-4323.
WHY DO MY TAXES GO UP WHEN MY PROPERTY CHANGED?
The Assessor is required by Nevada law to assess all property every year. The Assessor is required by law to assess all real property at current value, which is represented by the replacement cost of the improvement less depreciation and market value of the land. Nevada Administrative Code requires the Nevada Assessors to use Marshall & Swift Building Cost Service to determine improvement replacement costs, minus depreciation. The land is then appraised at market value. Marshall & Swift costs are updated each year to reflect current building costs.
WHAT IF YOU DISAGREE WITH THE VALUE THE ASSESSOR PLACES ON YOUR PROPERTY?
If, in your opinion, the taxable value of your property exceeds the value indicated in the real estate market, please call or come in to the Assessor’s Office and discuss your appraisal with an appraiser in the Assessor’s Office. The Assessor welcomes the opportunity to review any evidence you can provide that will show the valuation is unrealistic.
So, even if you can’t change the tax rate, you can try to do something about how your home is valued. Review your assessment for accuracy, including the size of your lot and the number of bedrooms and bathrooms. Research the assessed value of other comparable homes in your neighborhood; if they’re being assessed differently, you may have a case for relief. Review your taxable value and check with a REALTOR® to determine comparable sales in your area if you believe the taxable value is too high.
Homeowners who believe that the market value of their property is less than the taxable value listed on the assessment roll or believe that they were assessed differently than comparable property may contact the Assessor’s Office Appraisal Division at 702-455-4997 for an explanation of the values. If not satisfied after speaking with the Assessor’s Office, a property owner may file a petition with the County Board of Equalization for a review of the values.
Even if your assessment is accurate, and comparable homes are being taxed at the same rate, there might be another way to see some property tax savings. Nevada law provides for several exemptions for individuals who meet certain requirements. Exemptions include surviving spouses, veterans, disabled veterans and blind persons.