LAS VEGAS — Nevada has one of the strictest property-tax growth caps in the country, which confuses many residents about how their tax bills are calculated.
Property tax breaks can provide tax relief to property owners in Nevada, but only if they know how tax caps work. Nevada has two annual increase limits: 3 percent for owner-occupied homes and 8 percent for rental or commercial property. Tax caps were put in place to limit how much a tax bill can increase each year, especially during housing booms.
Many homeowners often make the mistake of assuming that taxes depend on the house value, but this isn’t the case. When it comes to tax caps, the assessment value, abatement cap, and taxable value are what count. Generally, homeowners can expect tax increases if the property was previously undervalued, home improvements were made, or ownership changed.
To avoid unpleasant surprises, experts recommend that homeowners read Clark County assessment notices and do research on how the abatement system works. Property valuation appeals must be made to the Nevada Tax Commission (Commission), which oversees the tax system, within 30 days of the Administrative Law Judge’s (ALJ) decision.
