A.B. 243
- *AB243*
ASSEMBLY BILL NO. 243–ASSEMBLYMEMBERS
HIBBETTS; AND D’SILVA
FEBRUARY 17, 2025
____________
Referred to Committee on Revenue
SUMMARY—Establishes certain partial tax exemptions for
surviving spouses of members of the Armed Forces
of the United States who were killed in the line of
duty. (BDR 32-163)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; providing partial exemptions from the
property and governmental services taxes for surviving
spouses of members of the armed forces killed in the line
of duty; establishing certain requirements for claiming the
exemptions; requiring the maximum allowable amount of
the exemptions be adjusted annually; authorizing an
eligible surviving spouse to direct an amount equivalent
to the exemptions to certain charitable gift accounts in
lieu of claiming the exemptions; providing for the
reduction of the property tax exemption in certain
circumstances; providing penalties; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law exempts from property taxes $1,000 of the assessed valuation of 1
property, adjusted each fiscal year using the Consumer Price Index, in which a 2
surviving spouse who is a resident of this State has an interest. (NRS 361.080) 3
Existing law also exempts from property taxes: (1) $2,000 of the assessed valuation 4
of property, as adjusted each fiscal year using the Consumer Price Index, in which a 5
veteran who served on active duty under certain circumstances has an interest; and 6
(2) $20,000 of the assessed valuation of property, as adjusted each fiscal year using 7
the Consumer Price Index, in which a veteran with a permanent service-connected 8
disability of 100 percent, or the surviving spouse of such a veteran, has an interest. 9
(NRS 361.090, 361.091) Under existing law, in lieu of applying these exemptions 10
to property taxes, the same partial exemptions may be applied to reduce the amount 11
of governmental services tax owed by a surviving spouse, veteran, disabled veteran 12
– 2 –
- *AB243*
or surviving spouse of a veteran or disabled veteran upon the annual renewal of the 13
registration of a vehicle. (NRS 361.1565, 371.101, 371.103, 371.104) 14
Sections 1 and 4 of this bill, respectively, increase the partial exemption from 15
property taxes and governmental services taxes for the surviving spouse of a 16
member of the Armed Forces of the United States who was killed in action. Under 17
sections 1 and 4, the amount of the exemption increases from the exemption of 18
$1,000 for surviving spouses to the amount of the exemption for the surviving 19
spouse of a veteran with a permanent service-connected disability of 100 percent. 20
Section 3 of this bill makes a conforming change to apply to sections 1 and 4 21
existing law which requires a partial exemption from property taxes to be reduced 22
by any partial exemption from the governmental services taxes. Sections 2 and 5 of 23
this bill make a conforming change to authorize a surviving spouse who qualifies 24
for the partial exemption from property taxes or governmental services taxes under 25
section 1 or 4, respectively, to request the deposit of an amount equal to the partial 26
exemption to the Gift Account for the Veterans Home in Southern Nevada or the 27
Gift Account for the Veterans Home in Northern Nevada. (NRS 361.0905, 28
371.1035) Section 6 of this bill makes a conforming change to apply to section 4 29
existing law governing the filing of claims for exemptions for governmental 30
services tax or the designation of amounts to be credited to a Gift Account for a 31
Veterans Home. (NRS 371.105) Section 7 of this bill makes a conforming change 32
to apply existing law requiring the provision of notice to the Department of Motor 33
Vehicles when an owner of a vehicle is no longer eligible for the exemption under 34
section 4. 35
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 361 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. A bona fide resident of the State of Nevada who is the 3
surviving spouse of a member of the Armed Forces of the United 4
States who was killed in the line of duty, and who has not 5
remarried, is entitled to an exemption not to exceed the amount of 6
$20,000 assessed valuation. For the purposes of this section, the 7
first $20,000 assessed valuation of property in which a person has 8
any interest is deemed to be the property of the person. 9
2. The exemption may be allowed only to a claimant who has 10
filed an affidavit with his or her claim for exemption on real 11
property pursuant to NRS 361.155. The affidavit may be made at 12
any time by a person claiming an exemption from taxation on 13
personal property. 14
3. The affidavit required by subsection 2 must be made before 15
the county assessor or a notary public and be filed with the county 16
assessor. It must state that the affiant: 17
(a) Is a bona fide resident of the State of Nevada; 18
(b) Is the surviving spouse of a member of the Armed Forces 19
of the United States who was killed in the line of duty; 20
(c) Has not remarried; and 21
– 3 –
- *AB243*
(d) Has not claimed the exemption in any other county within 1
this State. 2
4. After the filing of the original affidavit required by 3
subsection 2, the county assessor shall, except as otherwise 4
provided in this subsection, mail a form for: 5
(a) The renewal of the exemption; and 6
(b) The designation of any amount to be credited to the Gift 7
Account for the Veterans Home in Southern Nevada or the Gift 8
Account for the Veterans Home in Northern Nevada established 9
pursuant to NRS 417.145, 10
to the person each year following a year in which the exemption 11
was allowed for that person. The form must be designed to 12
facilitate its return by mail by the person claiming the exemption. 13
If so requested by the person claiming the exemption, the county 14
assessor may provide the form to the person by electronic means 15
in lieu of by mail. The county assessor may authorize the return of 16
the form by electronic means in accordance with the provisions of 17
chapter 719 of NRS. 18
5. Before allowing any exemption pursuant to the provisions 19
of this section, the county assessor shall require proof that the 20
person is the surviving spouse of a member of the Armed Forces 21
of the United States who was killed in the line of duty. For this 22
purpose, the county assessor shall require the person to produce: 23
(a) A DD Form 1300, “Report of Casualty,” or its succeeding 24
form, issued by the United States Department of Defense that 25
identifies the member of the Armed Forces who was killed in the 26
line of duty; and 27
(b) Documentation that the person was married to the member. 28
6. The allowance of a tax exemption to a person under this 29
section does not affect the eligibility of that person for an 30
exemption under NRS 361.090 or 361.091 based on the person’s 31
own service in the Armed Forces of the United States, if 32
applicable. 33
7. If any person files a false affidavit or produces false proof 34
to the county assessor or a notary public and, as a result of the 35
false affidavit or false proof, the person is allowed a tax exemption 36
to which the person is not entitled, the person is guilty of a gross 37
misdemeanor. 38
8. The monetary amounts in subsection 1 must be adjusted 39
for each fiscal year by adding to the amount the product of the 40
amount multiplied by the percentage increase in the consumer 41
price inflation index from July 2003 to the July preceding the 42
fiscal year for which the adjustment is calculated. The Department 43
shall provide to each county assessor the adjusted amount, in 44
writing, on or before September 30 of each year. 45
– 4 –
- *AB243*
9. For the purposes of this section: 1
(a) “Consumer price inflation index” means the Consumer 2
Price Index for All Urban Consumers, West Region (All Items), as 3
published by the United States Department of Labor or, if that 4
index ceases to be published by the United States Department of 5
Labor, the published index that most closely resembles that index, 6
as determined by the Department. 7
(b) “Member of the Armed Forces of the United States who 8
was killed in the line of duty” means a member of the Armed 9
Forces of the United States who the United States Department of 10
Defense has determined to be a hostile casualty, which may 11
include, without limitation, a veteran who the Department of 12
Defense determines: 13
(1) Was killed in action; 14
(2) Died from wounds received in action; 15
(3) Died while captured; 16
(4) Is presumed killed in action; or 17
(5) Died as the direct result of terrorist activity deemed by 18
the Department of Defense to be combat or hostility related, such 19
that the Department classifies the type of casualty listed on a DD 20
Form 1300, “Report of Casualty,” as hostile, or hostility or 21
combat-related. 22
(c) “Surviving spouse” includes a surviving domestic partner 23
as set forth in NRS 122A.200. 24
Sec. 2. NRS 361.0905 is hereby amended to read as follows: 25
361.0905 1. Any person who qualifies for an exemption 26
pursuant to NRS 361.090 or 361.091 or section 1 of this act may, in 27
lieu of claiming the exemption: 28
(a) Pay to the county tax receiver all or any portion of the 29
amount by which the tax would be reduced if the person claimed the 30
exemption; and 31
(b) Direct the county tax receiver to deposit that amount for 32
credit to the Gift Account for the Veterans Home in Southern 33
Nevada or the Gift Account for the Veterans Home in Northern 34
Nevada established pursuant to NRS 417.145. 35
2. Any person who wishes to waive his or her exemption 36
pursuant to this section shall designate the amount to be credited to 37
a Gift Account on a form provided by the Nevada Tax Commission. 38
3. The county tax receiver shall deposit any money received 39
pursuant to this section with the State Treasurer for credit to the Gift 40
Account for the Veterans Home in Southern Nevada or the Gift 41
Account for the Veterans Home in Northern Nevada established 42
pursuant to NRS 417.145. The State Treasurer shall not accept more 43
than a total of $2,000,000 for credit to a Gift Account pursuant to 44
this section and NRS 371.1035 during any fiscal year. 45
– 5 –
- *AB243*
Sec. 3. NRS 361.1565 is hereby amended to read as follows: 1
361.1565 The personal property tax exemption to which a 2
surviving spouse, person who is blind, veteran or surviving spouse 3
of a veteran who incurred a service-connected disability or was 4
killed in the line of duty is entitled pursuant to NRS 361.080, 5
361.085, 361.090 or 361.091 or section 1 of this act is reduced to 6
the extent that he or she is allowed an exemption from the 7
governmental services tax pursuant to chapter 371 of NRS. 8
Sec. 4. Chapter 371 of NRS is hereby amended by adding 9
thereto a new section to read as follows: 10
1. A bona fide resident of the State of Nevada who is the 11
surviving spouse of a member of the Armed Forces of the United 12
States who was killed in the line of duty, and who has not 13
remarried, is entitled to an exemption from the payment of 14
governmental services taxes on vehicles not to exceed the amount 15
of $20,000 of determined valuation. For the purpose of this 16
section, the first $20,000 of determined valuation of vehicles in 17
which a person described in this subsection has any interest shall 18
be deemed to belong entirely to that person. 19
2. A person claiming the exemption shall file annually with 20
the Department in the county where the exemption is claimed an 21
affidavit that declares that the person: 22
(a) Is a bona fide resident of the State of Nevada; 23
(b) Is the surviving spouse of a member of the Armed Forces 24
of the United States who was killed in the line of duty; 25
(c) Has not remarried; and 26
(d) Has not claimed the exemption in any other county within 27
this State. 28
3. After the filing of the original affidavit required by 29
subsection 2, the county assessor in the county where the 30
exemption is claimed shall, except as otherwise provided in this 31
subsection, mail a form for: 32
(a) The renewal of the exemption; and 33
(b) The designation of any amount to be credited to the Gift 34
Account for the Veterans Home in Southern Nevada or the Gift 35
Account for the Veterans Home in Northern Nevada established 36
pursuant to NRS 417.145, 37
to the person each year following a year in which the exemption 38
was allowed for that person. The form must be designed to 39
facilitate its return by mail by the person claiming the exemption. 40
If so requested by the person claiming the exemption, the county 41
assessor may provide the form to the person by electronic means 42
in lieu of by mail. 43
4. Before allowing any exemption pursuant to the provisions 44
of this section, the Department shall require proof that the person 45
– 6 –
- *AB243*
is the surviving spouse of a member of the Armed Forces of the 1
United States who was killed in the line of duty. For this purpose, 2
the Department shall require the person to produce: 3
(a) A DD Form 1300, “Report of Casualty,” or its succeeding 4
form, issued by the United States Department of Defense that 5
identifies the member of the Armed Forces who was killed in the 6
line of duty; and 7
(b) Documentation that the person was married to the member. 8
5. The allowance of a tax exemption to a person under this 9
section does not affect the eligibility of that person for an 10
exemption under NRS 371.103 or 371.104 based on the person’s 11
own service in the Armed Forces of the United States, if 12
applicable. 13
6. If any person files a false affidavit or produces false proof 14
to the Department and, as a result of the false affidavit or false 15
proof, the person is allowed a tax exemption to which the person is 16
not entitled, the person is guilty of a gross misdemeanor. 17
7. The monetary amount in subsection 1 must be adjusted for 18
each fiscal year by adding to the amount the product of the 19
amount multiplied by the percentage increase in the consumer 20
price inflation index from July 2003 to the July preceding the 21
fiscal year for which the adjustment is calculated. 22
8. For the purposes of this section: 23
(a) “Consumer price inflation index” means the Consumer 24
Price Index for All Urban Consumers, West Region (All Items), as 25
published by the United States Department of Labor or, if that 26
index ceases to be published by the United States Department of 27
Labor, the published index that most closely resembles that index, 28
as determined by the Department. 29
(b) “Member of the Armed Forces of the United States who 30
was killed in the line of duty” means a member of the Armed 31
Forces of the United States who the United States Department of 32
Defense has determined to be a hostile casualty, which may 33
include, without limitation, a veteran who the Department of 34
Defense determines: 35
(1) Was killed in action; 36
(2) Died from wounds received in action; 37
(3) Died while captured; 38
(4) Is presumed killed in action; or 39
(5) Died as the direct result of terrorist activity deemed by 40
the Department of Defense to be combat or hostility related, such 41
that the Department classifies the type of casualty listed on a DD 42
Form 1300, “Report of Casualty,” as hostile, or hostility or 43
combat-related. 44
– 7 –
- *AB243*
(c) “Surviving spouse” includes a surviving domestic partner 1
as set forth in NRS 122A.200. 2
Sec. 5. NRS 371.1035 is hereby amended to read as follows: 3
371.1035 1. Any person who qualifies for an exemption 4
pursuant to NRS 371.103 or 371.104 or section 4 of this act may, in 5
lieu of claiming the exemption: 6
(a) Pay to the Department all or any portion of the amount by 7
which the tax would be reduced if the person claimed the 8
exemption; and 9
(b) Direct the Department to deposit that amount for credit to 10
the Gift Account for the Veterans Home in Southern Nevada or the 11
Gift Account for the Veterans Home in Northern Nevada established 12
pursuant to NRS 417.145. 13
2. Any person who wishes to waive his or her exemption 14
pursuant to this section shall designate the amount to be credited to 15
a Gift Account on a form provided by the Department. 16
3. The Department shall deposit any money received pursuant 17
to this section with the State Treasurer for credit to the Gift Account 18
for the Veterans Home in Southern Nevada or the Gift Account for 19
the Veterans Home in Northern Nevada established pursuant to NRS 20
417.145. The State Treasurer shall not accept more than a total of 21
$2,000,000 for credit to a Gift Account pursuant to this section and 22
NRS 361.0905 during any fiscal year. 23
Sec. 6. NRS 371.105 is hereby amended to read as follows: 24
371.105 Claims pursuant to NRS 371.101, 371.102, 371.103 or 25
371.104 or section 4 of this act for tax exemption on the 26
governmental services tax and designations of any amount to be 27
credited to the Gift Account for the Veterans Home in Southern 28
Nevada or the Gift Account for the Veterans Home in Northern 29
Nevada pursuant to NRS 371.1035 must be filed annually at any 30
time on or before the date when payment of the tax is due. All 31
exemptions provided for in this section must not be in an amount 32
which gives the taxpayer a total exemption greater than that to 33
which the taxpayer is entitled during any fiscal year. 34
Sec. 7. NRS 371.106 is hereby amended to read as follows: 35
371.106 1. Whenever any vehicle ceases to be exempt from 36
taxation under NRS 371.101, 371.102, 371.103 or 371.104 or 37
section 4 of this act because the owner no longer meets the 38
requirements for the exemption provided in those sections, its owner 39
shall immediately notify the Department of the fact. 40
2. If a person fails to notify the Department as required by 41
subsection 1 and as a result of such failure is allowed a tax 42
exemption to which he or she is not entitled, there shall be added to 43
and collected with the tax otherwise due a penalty equal to double 44
the amount of the tax. If the person’s failure is fraudulent and results 45
– 8 –
- *AB243*
in his or her receiving a tax exemption to which he or she is not 1
entitled, the person is also guilty of a gross misdemeanor. 2
H