A.B. 447
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ASSEMBLY BILL NO. 447–ASSEMBLYMEMBERS
HARDY; AND NGUYEN
MARCH 17, 2025
____________
Referred to Committee on Revenue
SUMMARY—Provides for a partial abatement of the property taxes
levied on certain residential rental dwellings.
(BDR 32-1079)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; revising provisions governing partial
abatements of property taxes levied on certain residential
rental dwellings; providing for a partial abatement of the
property taxes levied on certain residential dwellings if
the owner of the dwelling does not impose certain fees or
restrictions on companion animals; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law provides for a partial abatement of the property taxes levied on 1
certain residential rental dwellings if the amount of rent collected from each of the 2
tenants does not exceed the fair market rent for the county in which the dwelling is 3
located. (NRS 361.4724) Section 2 of this bill additionally provides for a partial 4
abatement of the property taxes levied on certain residential rental dwellings if the 5
owner does not impose: (1) a nonrefundable fee or additional rent related to 6
companion animals; (2) a limitation on the total number of companion animals with 7
which a tenant may reside, other than a limit imposed by the jurisdiction where the 8
property is located; or (3) breed or size restrictions on companion animals, except 9
for a prohibition against a particular companion animal that has been declared to be 10
dangerous or vicious. Section 2 limits the combined total amount of abatements 11
that may be provided to owners of residential rental dwellings that do not charge 12
rent that exceeds the fair market rent for the county in which the dwelling is located 13
and to owners of residential rental dwellings that do not impose fees, additional rent 14
or certain restrictions on companion animals to $10 million per year. 15
Section 1 of this bill provides that certain other abatements of property taxes 16
do not apply if the provisions of section 2 provide for a greater abatement. 17
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Sections 3-5 of this bill make conforming changes to refer to provisions that have 18
been renumbered by section 2. 19
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 361.4722 is hereby amended to read as 1
follows: 2
361.4722 1. Except as otherwise provided in or required to 3
carry out the provisions of subsection 3 and NRS 361.4725 to 4
361.4729, inclusive, the owner of any parcel or other taxable unit of 5
property, including property entered on the central assessment roll, 6
for which an assessed valuation was separately established for the 7
immediately preceding fiscal year is entitled to a partial abatement 8
of the ad valorem taxes levied in a county on that property each 9
fiscal year equal to the amount by which the product of the 10
combined rate of all ad valorem taxes levied in that county on the 11
property for that fiscal year and the amount of the assessed valuation 12
of the property which is taxable in that county for that fiscal year, 13
excluding any increase in the assessed valuation of the property 14
from the immediately preceding fiscal year as a result of any 15
improvement to or change in the actual or authorized use of the 16
property, exceeds the sum obtained by adding: 17
(a) The amount of all the ad valorem taxes: 18
(1) Levied in that county on the property for the immediately 19
preceding fiscal year; or 20
(2) Which would have been levied in that county on the 21
property for the immediately preceding fiscal year if not for any 22
exemptions from taxation that applied to the property for that prior 23
fiscal year but do not apply to the property for the current fiscal 24
year, 25
whichever is greater; and 26
(b) A percentage of the amount determined pursuant to 27
paragraph (a) which is equal to: 28
(1) The greater of: 29
(I) The average percentage of change in the assessed 30
valuation of all the taxable property in the county, as determined by 31
the Department, over the fiscal year in which the levy is made and 32
the 9 immediately preceding fiscal years; 33
(II) Twice the percentage of increase in the Consumer 34
Price Index for all Urban Consumers, U.S. City Average (All Items) 35
for the immediately preceding calendar year; or 36
(III) Zero; or 37
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(2) Eight percent, 1
whichever is less. 2
2. Except as otherwise provided in or required to carry out the 3
provisions of NRS 361.4725 to 361.4729, inclusive, the owner of 4
any remainder parcel of real property for which no assessed 5
valuation was separately established for the immediately preceding 6
fiscal year, is entitled to a partial abatement of the ad valorem taxes 7
levied in a county on that property for a fiscal year equal to the 8
amount by which the product of the combined rate of all ad valorem 9
taxes levied in that county on the property for that fiscal year and 10
the amount of the assessed valuation of the property which is 11
taxable in that county for that fiscal year, excluding any amount of 12
that assessed valuation attributable to any improvement to or change 13
in the actual or authorized use of the property that would not have 14
been included in the calculation of the assessed valuation of the 15
property for the immediately preceding fiscal year if an assessed 16
valuation had been separately established for that property for that 17
prior fiscal year, exceeds the sum obtained by adding: 18
(a) The amount of all the ad valorem taxes: 19
(1) Which would have been levied in that county on the 20
property for the immediately preceding fiscal year if an assessed 21
valuation had been separately established for that property for that 22
prior fiscal year based upon all the assumptions, costs, values, 23
calculations and other factors and considerations that would have 24
been used for the valuation of that property for that prior fiscal year; 25
or 26
(2) Which would have been levied in that county on the 27
property for the immediately preceding fiscal year if an assessed 28
valuation had been separately established for that property for that 29
prior fiscal year based upon all the assumptions, costs, values, 30
calculations and other factors and considerations that would have 31
been used for the valuation of that property for that prior fiscal year, 32
and if not for any exemptions from taxation that applied to the 33
property for that prior fiscal year but do not apply to the property for 34
the current fiscal year, 35
whichever is greater; and 36
(b) A percentage of the amount determined pursuant to 37
paragraph (a) which is equal to: 38
(1) The greater of: 39
(I) The average percentage of change in the assessed 40
valuation of all the taxable property in the county, as determined by 41
the Department, over the fiscal year in which the levy is made and 42
the 9 immediately preceding fiscal years; 43
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(II) Twice the percentage of increase in the Consumer 1
Price Index for all Urban Consumers, U.S. City Average (All Items) 2
for the immediately preceding calendar year; or 3
(III) Zero; or 4
(2) Eight percent, 5
whichever is less. 6
3. The provisions of subsection 1 do not apply to any property 7
for which the provisions of subsection 1 of NRS 361.4723 or 8
subsection 1 or 2 of NRS 361.4724 provide a greater abatement 9
from taxation. 10
4. Except as otherwise required to carry out the provisions of 11
NRS 361.4732 and any regulations adopted pursuant to NRS 12
361.4733, the amount of any reduction in the ad valorem taxes 13
levied in a county for a fiscal year as a result of the application of 14
the provisions of subsections 1 and 2 must be deducted from the 15
amount of ad valorem taxes each taxing entity would otherwise be 16
entitled to receive for that fiscal year in the same proportion as the 17
rate of ad valorem taxes levied in the county on the property by or 18
on behalf of that taxing entity for that fiscal year bears to the 19
combined rate of all ad valorem taxes levied in the county on the 20
property by or on behalf of all taxing entities for that fiscal year. 21
5. The Nevada Tax Commission shall adopt such regulations as 22
it deems appropriate to ensure that this section is carried out in a 23
uniform and equal manner. 24
6. For the purposes of this section, “remainder parcel of real 25
property” means a parcel of real property which remains after the 26
creation of new parcels of real property for development from one 27
or more existing parcels of real property, if the use of that remaining 28
parcel has not changed from the immediately preceding fiscal year. 29
Sec. 2. NRS 361.4724 is hereby amended to read as follows: 30
361.4724 1. The Legislature hereby finds and declares that 31
many Nevadans who cannot afford to own their own homes would 32
be adversely affected by large unanticipated increases in property 33
taxes, as those tax increases are passed down to renters in the form 34
of rent increases , and therefore the benefits of a charitable 35
exemption pursuant to subsection 8 of Section 1 of Article 10 of the 36
Nevada Constitution should be afforded to those Nevadans through 37
an abatement granted to the owners of residential rental dwellings 38
who charge rent that does not exceed affordable housing standards 39
for low-income housing. The Legislature therefore directs a partial 40
abatement of taxes for such owners as follows: 41
[1.] (a) Except as otherwise provided in or required to carry out 42
the provisions of [subsection 2] paragraph (b) and NRS 361.4725 43
to 361.4729, inclusive, if the amount of rent collected from each of 44
the tenants of a residential dwelling does not exceed the fair market 45
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rent for the county in which the dwelling is located, as most recently 1
published by the United States Department of Housing and Urban 2
Development, the owner of the dwelling is entitled to a partial 3
abatement of the ad valorem taxes levied in a county on that 4
property for each fiscal year equal to the amount by which the 5
product of the combined rate of all ad valorem taxes levied in that 6
county on the property for that fiscal year and the amount of the 7
assessed valuation of the property which is taxable in that county for 8
that fiscal year, excluding any increase in the assessed valuation of 9
the property from the immediately preceding fiscal year as a result 10
of any improvement to or change in the actual or authorized use of 11
the property, exceeds the sum obtained by adding: 12
[(a)] (1) The amount of all the ad valorem taxes: 13
[(1)] (I) Levied in that county on the property for the 14
immediately preceding fiscal year; or 15
[(2)] (II) Which would have been levied in that county on the 16
property for the immediately preceding fiscal year if not for any 17
exemptions from taxation that applied to the property for that prior 18
fiscal year but do not apply to the property for the current fiscal 19
year, 20
whichever is greater; and 21
[(b)] (2) Three percent of the amount determined pursuant to 22
[paragraph (a).] subparagraph (1). 23
[2.] (b) The provisions of [subsection 1] paragraph (a) do not 24
apply to: 25
[(a)] (1) Any hotels, motels or other forms of transient lodging; 26
[(b)] (2) Any property for which no assessed valuation was 27
separately established for the immediately preceding fiscal year; and 28
[(c)] (3) Any property for which the provisions of subsection 1 29
of NRS 361.4722 provide a greater abatement from taxation. 30
2. The Legislature hereby finds and declares that many 31
Nevadans who own companion animals and who cannot afford 32
their own homes are severely limited in their options for housing 33
by increases in additional rent and other fees charged to a tenant 34
for owning and possessing companion animals, and therefore the 35
benefits of a charitable exemption pursuant to subsection 8 of 36
Section 1 of Article 10 of the Nevada Constitution should be 37
afforded to those Nevadans through an abatement granted to the 38
owners of residential rental dwellings who do not impose 39
additional rent or fees or certain restrictions relating to 40
companion animals. The Legislature therefore directs a partial 41
abatement of taxes for such owners as follows: 42
(a) Except as otherwise provided in or required to carry out the 43
provisions of paragraph (b), subsection 4 and NRS 361.4725 to 44
361.4729, inclusive, if the owner of a residential rental dwelling 45
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does not impose upon the tenants of the residential rental dwelling 1
a nonrefundable fee or additional rent related to companion 2
animals residing in the residential rental dwelling, a limitation on 3
the total number of companion animals allowed to reside in the 4
residential rental dwelling, unless such a limitation is imposed by 5
the locality in which the residential rental dwelling is located, or 6
any restriction on the breed or size of a companion animal allowed 7
to reside in the residential rental dwelling, except for a prohibition 8
against a particular companion animal that has been declared to 9
be dangerous or vicious in accordance with NRS 202.500, the 10
owner is entitled to a partial abatement of the ad valorem taxes 11
levied in a county on that property for each fiscal year in an 12
amount equal to the lesser of: 13
(1) Seven thousand five hundred dollars; or 14
(2) The sum obtained by multiplying $750 for each unit 15
within the residential rental dwelling that satisfies the 16
requirements of this subsection by a fraction, the numerator of 17
which is the number of months during the immediately preceding 18
calendar year in which a companion animal was residing in the 19
unit on the first day of the month, and the denominator of which is 20
12. 21
(b) The provisions of paragraph (a) do not apply to any: 22
(1) Hotels, motels or other forms of transient lodging; or 23
(2) Property for which the provisions of subsection 1 of 24
NRS 361.4722 provide a greater abatement from taxation. 25
3. Nothing in the provisions of subsection 2 shall be 26
construed to prohibit: 27
(a) A tenant from being held liable for damage caused to any 28
premises or facility by a companion animal which resides in a 29
residential rental dwelling described in subsection 2; and 30
(b) An owner of a residential rental dwelling or his or her 31
employee or agent from requiring a tenant who owns and 32
maintains a companion animal to remove the companion animal 33
from the residential rental dwelling if the companion animal: 34
(1) Is out of control and the renter does not take effective 35
action to control the animal; 36
(2) Is not able to control its excretion of urine or feces; or 37
(3) Poses a direct threat to the health and safety of others 38
and making a reasonable accommodation or providing alternative 39
policies, practices or procedures is insufficient to eliminate or 40
reduce the threat to an acceptable level. 41
4. The total abatements provided by this section must not 42
exceed $10 million per year. 43
5. Except as otherwise required to carry out the provisions 44
of NRS 361.4732 and any regulations adopted pursuant to 45
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NRS 361.4733, the amount of any reduction in the ad valorem taxes 1
levied in a county for a fiscal year as a result of the application of 2
the provisions of subsection 1 or 2 must be deducted from the 3
amount of ad valorem taxes each taxing entity would otherwise be 4
entitled to receive for that fiscal year in the same proportion as the 5
rate of ad valorem taxes levied in the county on the property by or 6
on behalf of that taxing entity for that fiscal year bears to the 7
combined rate of all ad valorem taxes levied in the county on the 8
property by or on behalf of all taxing entities for that fiscal year. 9
[4.] 6. The Nevada Tax Commission shall adopt such 10
regulations as it deems appropriate to carry out this section. 11
7. As used in this section, “companion animal” means a 12
domesticated animal owned or possessed by a person for the 13
purpose of pleasure or companionship, including, without 14
limitation, a cat or dog. 15
Sec. 3. NRS 361.47285 is hereby amended to read as follows: 16
361.47285 1. Notwithstanding the provisions of NRS 17
361.4722, 361.4723 and 361.4724, if a single-family residence that 18
is the primary residence of the owner is partially or completely 19
destroyed by a flood, fire, earthquake or other event for which a 20
state of emergency or declaration of disaster was proclaimed by the 21
Governor pursuant to NRS 414.070 and if, pursuant to NRS 22
361.084, the owner of the single-family residence is granted an 23
exemption of a portion of the assessed value of the single-family 24
residence, then for the purpose of calculating the amount of any 25
partial abatement to which the owner of the single-family residence 26
is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the 27
initial fiscal year for which the exemption applies, the amount 28
determined for the immediately preceding fiscal year pursuant to 29
paragraph (a) of subsection 1 of NRS 361.4722, paragraph (a) of 30
subsection 2 of NRS 361.4722, paragraph (a) of subsection 1 of 31
NRS 361.4723 or subparagraph (1) of paragraph (a) of subsection 1 32
of NRS 361.4724, as applicable, must be the amount determined for 33
the fiscal year in which the single-family residence was partially or 34
completely destroyed. 35
2. Notwithstanding the provisions of NRS 361.4722, 361.4723 36
and 361.4724, if, pursuant to NRS 361.084, the owner of a single-37
family residence is granted an exemption of a portion of the 38
assessed value of the single-family residence and, after the granting 39
of the exemption, the single-family residence is sold or transferred 40
in a transaction to which the provisions of chapter 375 of NRS 41
apply, then for the purpose of calculating the amount of any partial 42
abatement to which the owner of the single-family residence is 43
entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the 44
first fiscal year immediately following the sale or transfer of the 45
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single-family residence, the owner is entitled only to a partial 1
abatement from taxation provided pursuant to NRS 361.4722, 2
361.4723 or 361.4724 in an amount equal to the amount of such a 3
partial abatement to which the owner would have been entitled if the 4
exemption were not granted and the provisions of subsection 1 were 5
not applied. 6
3. As used in this section: 7
(a) “Primary residence of the owner” has the meaning ascribed 8
to it in NRS 361.4723. 9
(b) “Single-family residence” has the meaning ascribed to it in 10
NRS 361.4723. 11
Sec. 4. NRS 361.4729 is hereby amended to read as follows: 12
361.4729 If the taxable value of an improvement to real 13
property is reduced as a result of: 14
1. The partial or complete destruction or removal of the 15
improvement; or 16
2. The correction pursuant to NRS 361.768 of an 17
overassessment of the improvement because of a factual error, 18
then for the purpose of calculating the amount of any partial 19
abatement to which the owner of the real property is entitled 20
pursuant to NRS 361.4722, 361.4723 or 361.4724 for the initial 21
fiscal year for which that reduction in taxable value applies, the 22
amount determined for the immediately preceding fiscal year 23
pursuant to paragraph (a) of subsection 1 of NRS 361.4722, 24
paragraph (a) of subsection 2 of NRS 361.4722, paragraph (a) of 25
subsection 1 of NRS 361.4723 or subparagraph (1) of paragraph (a) 26
of subsection 1 of NRS 361.4724, as applicable, must be reduced by 27
the same percentage as the taxable value of the real property is 28
reduced for that initial fiscal year as a result of the partial or 29
complete destruction or removal of the improvement to the property 30
or the correction of the overassessment of the improvement to the 31
property. 32
Sec. 5. NRS 361.4732 is hereby amended to read as follows: 33
361.4732 Except as otherwise required to carry out the 34
provisions of NRS 361.4729 and any regulations adopted pursuant 35
to NRS 361.4733, and notwithstanding any other provision of NRS 36
361.471 to 361.4735, inclusive, to the contrary, after a parcel or 37
other taxable unit of real property is annexed to a taxing entity: 38
1. The amount otherwise required to be determined pursuant to 39
paragraph (a) of subsection 1 of NRS 361.4722, paragraph (a) of 40
subsection 2 of NRS 361.4722, paragraph (a) of subsection 1 of 41
NRS 361.4723 or subparagraph (1) of paragraph (a) of subsection 1 42
of NRS 361.4724 with respect to that property for the first fiscal 43
year in which that taxing entity is entitled to levy or require the levy 44
on its behalf of any ad valorem taxes on the property as a result of 45
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that annexation of the property, shall be deemed to be the amount of 1
ad valorem taxes which would have been levied on the property for 2
the immediately preceding fiscal year if the annexation had occurred 3
1 year earlier, based upon the tax rates that would have applied to 4
the property for the immediately preceding fiscal year if the 5
annexation had occurred 1 year earlier and without regard to any 6
exemptions from taxation that applied to the property for the 7
immediately preceding fiscal year but do not apply to the property 8
for the current fiscal year; and 9
2. For the purposes of any other calculations required pursuant 10
to the provisions of NRS 361.471 to 361.4735, inclusive, the 11
combined overlapping tax rate applicable to that property for the 12
fiscal year immediately preceding the first fiscal year in which that 13
taxing entity is entitled to levy or require the levy on its behalf of 14
any ad valorem taxes on the property as a result of that annexation 15
of the property, shall be deemed to be the combined overlapping tax 16
rate that would have applied to the property for that year if the 17
annexation had occurred 1 year earlier. 18
H