Carson City property owners to pay more

Despite the decline in housing values since the 2006 peak, Carson City residents will see an increase in property taxes when bills are mailed out this month.

"We have been getting calls and letters for a number of months," said Carson City Assessor Dave Dawley. "The fact is, property values are going down, but taxes aren't."

The culprit for the perceived inequity is the 3 percent statewide cap on single-family residences put in place by the Nevada Legislature in 2005, Dawley said.

"The property tax on a single-family, owner-occupied home can't exceed 3 percent no matter what the change in assessed value is," he said. " We are lowering the values on property, however, they are not lower than the pre-cap values."

Until 2005, the tax amount and taxable value on a home followed a somewhat parallel course, but after the abatement went into place, the gap each year between the value of a home and the amount of taxes due began to spread, Dawley said.

Now that market values are declining, the gap between the two is closing, but taxes will continue to go up - but only 3 percent.

In 2004, taxes on a home with a taxable value of $183,000 were about $1,694. When the market peaked, the home's value jumped to about $277,711, which would have resulted in taxes going up to about $3,040. Because of the cap, however, the city could only raise taxes 3 percent over the previous year, or to about $1,857.

Because home values have dropped, the perception for residents is that their taxes should follow suit, but because they have not fallen to the pre-2004 levels, taxes will not be going down. Dawley said.

According to a Nevada Taxpayer's Association booklet, Nevada Revised Statutes require all real property to be reappraised at least once every five years. This is the responsibility of the county assessor, who estimates the market value of land by taking into account its location, zoning, actual use, income produced and other factors. The taxable value of buildings is the estimated replacement cost minus depreciation.

"Everything is based on NRS," said Carson City Treasurer Al Kramer. "Compared to other counties like Washoe and Clark, Carson City has done very well in holding its value."

As an example, Dawley pointed out that there were only 226 home foreclosures in Carson City last year, and 70 of those parcels were from one subdivision at Saliman and Fairview. This is just slightly over 1 percent of the total taxable parcels.

In addition, property owners who are behind in their water bills will find the delinquent amount included on their property tax bills, Kramer said.

"Carson City has a 'no water turnoff' policy," he said, "so we will have about $200,000 added to the tax rolls this year."

Kramer also said the city has not sold any properties for non-payment in 14 years.

"People pay their taxes in Carson City," he said.

Property tax, also known as ad valorem, is used to partially fund the expenses of local governments, school districts, the senior center, State of Nevada and others.

Property owners have the right to appeal to the county or state board of equalization.

The Carson City Assessor's Office can be reached at 887-2130. The Nevada Taxpayer's Association number for Northern Nevada is 882-2697.