Homeowners likely to see property tax increase

By BRIAN DUGGAN

bduggan@nevadaappeal.com

While property values continue to decrease in Carson City, most taxpayers will see an increase in their property taxes when they open their bills this month.

That increase is largely driven by a 3 percent property tax cap for single family homes established by the Nevada Legislature in 2005, said Carson City Assessor Dave Dawley.

So while home values are dropping from their peaks, they haven't dropped below the level they were before the cap was put into place in 2005.

Before 2005, the tax amount and the taxable value of a home usually followed each other. Once the Legislature implemented the

3 percent tax cap, values started to grow at a rapid pace, but property taxes did not.

For example, a home with a taxable value of $123,866 in 2004 had a property tax amount of $1,146. When the home peaked in value in 2009 at $194,389 it would have meant a property tax of $2,128, but with the 3 percent cap the tax was $1,294.

Now that values are on the decline, the gap between home prices and property taxes is closing, Dawley said.

All real property is required to be reappraised at least once every five years by the county assessor, according to state law. The assessor 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.

Property tax is used to partially fund state and local governments, school districts, the senior center and others.

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

• Nevada Appeal reporter Sandi Hoover contributed to this article.