Property Taxes

State Tax Laws > Property Taxes > Summary > Nevada

For the complete text of Nevada statutes and other property tax information please refer to the Nevada Department of Taxation - Revenue Division.

Property Classification:

The state of Nevada does not assign property to different classes for purposes of applying different assessment ratios or tax rates. The only special class of property recognized in Nevada is agricultural and open-space real property, which is valued on the basis of its actual use.

Agricultural real property (Sec. 361A.020)

Agricultural real property means:

(a) Land devoted exclusively for at least 3 consecutive years immediately preceding the assessment date to "agricultural use."

(b) Land leased by the owner to another person for agricultural use and composed of any lot or parcel which:

(1) Includes at least 7 acres of land devoted to accepted agricultural practices; or

(2) Is contiguous to other agricultural real property owned by the lessee.

Agricultural use (Sec. 361A.030)

Agricultural use means the "current employment" of real property as a business venture for profit, which business produced a minimum gross income of $5,000 from agricultural pursuits during the immediately preceding calendar year by:

(a) Raising, harvesting and selling crops, fruit, flowers, timber and other products of the soil;

(b) Feeding, breeding, management and sale of livestock, poultry, or the produce thereof, if the real property used therefor is owned or leased by the operator and is of sufficient size and capacity to produce more than one-half of the feed required during that year for the agricultural pursuit;

(c) Operating a feed lot consisting of at least 50 head of cattle or an equivalent number of units of sheep or hogs, for the production of food;

(d) Raising furbearing animals or bees;

(e) Dairying and the sale of dairy products; or

(f) Any other use determined by the department to constitute agricultural use if such use is verified by the department.

Current employment of real property in agricultural use includes:

(a) Land lying fallow for 1 year as a normal and regular requirement of good agricultural husbandry; and

(b) Land planted in orchards or other perennials prior to maturity; and

(c) Land leased or otherwise made available for use by an agricultural association

Application - The owner of the land must file the appropriate application for agricultural use assessment by June 1 with the county assessor of each county in which the property is located if it is 20 acres or more, or with the Department of Taxation if the property is less than 20 acres. New applications are required only upon a change of ownership or a conversion of the land to a higher use.

Change in Use Penalty - Specially assessed agricultural real property that is converted to a use other than agricultural use (i.e., to a so-called "higher use") may be reassessed for the current year and the six preceding years to effectively recapture the tax benefits that accrued from the special assessment. In some instances, prepayment of the deferred tax may be required before a conversion to a higher use is allowed.

Agricultural real property will be deemed to have been "converted to a higher use" by:

A physical alteration of the surface of the property enabling it to be used for a higher use;

The recording or existence a final map or parcel map that creates one or more parcels not intended for agricultural use; or

A change in zoning to a higher use made at the owner's request.

Upon the conversion of agricultural real property to a higher use, an assessor has five years within which to assessed the applicable deferred tax. Any deferred tax assessment remains a perpetual lien on the property until the assessment is paid or the property is transferred to an exempt owner.

The owner of agricultural real property must notify the assessor when the property no longer qualifies for the special assessment because it is no longer being used exclusively for agricultural use or because it otherwise has been converted to a higher use. Such notice must be provided within 30 days of the disqualifying event. A penalty of 20% of the accumulated deferred tax must be assessed if the notice is not provided. The penalty may be waived on the basis of extenuating circumstances.

Valuation and Assessment - Property that qualifies as agricultural real property is assessed at 35% of its value for agricultural use.

Open Space Real Property:

Open-space real property is treated similarly to agricultural real property in that it is assessed at 35% of its value for open-space purposes. (NRS 361A.220) Consistent with the provisions applicable to agricultural real property

1. The owner of the open space property must apply for the special assessment treatment (NRS 361A.180, NRS 361A.190), which applications are subject to review by the affected county and city governing bodies (NRS 361A.200);

2. Deferred taxes may be assessed if the use of the property is changed to a higher use (NRS 361A.265, NRS 361A.280, NRS 361A.286); and

3. The owner is required to report changes from open space use. (NRS 361A.270, NRS 361A.290)

"Open-space real property" is land located within a classified area and subject to regulations designed to promote the conservation of open space and the protection of other natural and scenic resources from unreasonable impairment, which land is devoted to open space exclusively. (NRS 361A.040)

Severance or Yield Tax:

The state of Nevada does not have a severance or yield tax on timber or timber products.