A.B. 455
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ASSEMBLY BILL NO. 455–ASSEMBLYMEMBERS
HANSEN, GRAY AND GURR
MARCH 17, 2025
____________
Referred to Committee on Revenue
SUMMARY—Revises provisions governing property taxes.
(BDR 32-324)
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; providing that flags and certain related
personal property are exempt from property taxes;
increasing the property tax exemption for certain veterans
and their surviving spouses by the amount of the assessed
valuation of any flagpole that is a fixture or improvement
to any real property in which the veteran or surviving
spouse has an interest; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
The Nevada Constitution requires the Legislature to provide by law for a 1
uniform and equal rate of assessment and taxation of all property, with certain 2
exception. (Nev. Const. Art. 10, § 1(1)) According to the Nevada Supreme Court, 3
because the requirement for a uniform and equal rate of assessment and taxation of 4
property “declares that all property shall be taxed except mines and other property 5
for certain enumerated purposes, the legislature cannot exempt any taxable 6
property, except for” a purpose stated in the Nevada Constitution. (State v. Carson 7
Savings Bank, 17 Nev. 146, 151 (1882)) The Nevada Constitution authorizes the 8
Legislature to exempt from taxation property used for charitable purposes, which 9
includes, without limitation, authorization to exempt from property taxes property 10
in which certain veterans have an interest. (Nev. Const. Art. 10, § 1(8); Hendel v. 11
Weaver, 77 Nev. 16 (1961)) 12
Under existing law: (1) a veteran who served on active duty under certain 13
circumstances is entitled to an exemption from property taxes of $2,000 of the 14
assessed valuation of property in which the veteran has an interest, as adjusted each 15
fiscal year using the Consumer Price Index; and (2) a veteran with a permanent 16
service-connected disability, or the surviving spouse of such a veteran, is entitled 17
an exemption from property taxes of an amount of assessed valuation that is based 18
on the percentage of service-connected disability incurred by the veteran. 19
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(NRS 361.090, 361.091) Sections 2 and 3 of this bill increase the amount of these 20
exemptions from property taxes by the amount of any assessed valuation 21
attributable to a flagpole that is considered real property because it is a fixture or 22
improvement to any real property in which the person claiming the exemption has 23
an interest. 24
The Nevada Constitution exempts from property taxes “[a]ll household goods 25
and furniture used by a single household and owned by a member of that 26
household.” (Nev. Const. Art. 10, § 3) Under existing law, the household goods that 27
are exempt from property taxes include, without limitation, clothing, personal 28
effects, appliances that are not attached to real property, portable goods and storage 29
sheds. (NRS 361.069) Section 1 of this bill includes as household goods that are 30
exempt from property taxes flags and flagpoles that are considered personal 31
property because they are not attached to real property. 32
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 361.069 is hereby amended to read as follows: 1
361.069 1. Except as otherwise provided in this section, 2
household goods and furniture are exempt from taxation. 3
2. Except as otherwise provided in subsection 3, appliances 4
and furniture which are owned by a person who engages in the 5
business of renting the appliances or furniture to other persons are 6
not exempt from taxation. 7
3. Except as otherwise provided in this subsection, the 8
assessment of rented or leased appliances or furniture, or both, of a 9
time-share project governed by the provisions of chapter 119A of 10
NRS, which contains five or more units, must be reduced by a 11
percentage equal to the average percentage of time that all of the 12
units are occupied by an owner of a time share in the project. If the 13
units of the time-share project are occupied by owners of time 14
shares in the project for an average of more than 90 percent of the 15
fiscal year, the rented or leased appliances or furniture, or both, are 16
exempt from taxation. As used in this subsection: 17
(a) “Owner” has the meaning ascribed to it in NRS 119A.056. 18
(b) “Unit” has the meaning ascribed to it in NRS 119A.160. 19
4. As used in this section: 20
(a) “Household goods and furniture” includes, without 21
limitation, the following items if used in a residence: 22
(1) Clothing; 23
(2) Personal effects; 24
(3) Gold and silver; 25
(4) Jewelry; 26
(5) Appliances that are not attached to real property or a 27
mobile or manufactured home; 28
(6) Furniture; 29
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(7) Recreational equipment not required by NRS to be 1
registered; [and] 2
(8) Portable goods and storage sheds and other household 3
equipment [.] ; and 4
(9) Flags, flagpoles that are not fixtures or improvements to 5
real property and any other equipment for displaying a flag that is 6
not a fixture or improvement to real property. 7
(b) “Engages in the business of renting appliances or furniture” 8
means: 9
(1) Renting or leasing appliances or furniture, or both, to 10
other persons not in conjunction with the rental or lease of a 11
dwelling unit; or 12
(2) Renting or leasing appliances or furniture, or both, to 13
other persons in conjunction with the rental or lease of a dwelling 14
unit located in a complex containing five or more dwelling units 15
which are rented or leased by the owner to other persons in 16
conjunction with appliances or furniture, or both. 17
Sec. 2. NRS 361.090 is hereby amended to read as follows: 18
361.090 1. The property, to the extent of $2,000 assessed 19
valuation, plus the amount of any assessed valuation attributable 20
to a flagpole that is a fixture or improvement to real property, of 21
any actual bona fide resident of the State of Nevada who: 22
(a) Has served a minimum of 90 continuous days on active duty, 23
who was assigned to active duty at some time between April 21, 24
1898, and June 15, 1903, or between April 6, 1917, and 25
November 11, 1918, or between December 7, 1941, and 26
December 31, 1946, or between June 25, 1950, and May 7, 1975, or 27
between September 26, 1982, and December 1, 1987, or between 28
October 23, 1983, and November 21, 1983, or between 29
December 20, 1989, and January 31, 1990, or between August 2, 30
1990, and April 11, 1991, or between December 5, 1992, and 31
March 31, 1994, or between November 20, 1995, and December 20, 32
1996; 33
(b) Has served on active duty in connection with carrying out 34
the authorization granted to the President of the United States in 35
Public Law 102-1; or 36
(c) Has served on active duty in connection with a campaign or 37
expedition for service in which a medal has been authorized by the 38
Government of the United States, regardless of the number of days 39
served on active duty, 40
and who received, upon severance from service, an honorable 41
discharge or certificate of satisfactory service from the Armed 42
Forces of the United States, or who, having so served, is still serving 43
in the Armed Forces of the United States, is exempt from taxation. 44
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2. For the purpose of this section, [the first $2,000 assessed 1
valuation of] any property in which an applicant has any interest 2
shall be deemed the property of the applicant. 3
3. The exemption may be allowed only to a claimant who files 4
an affidavit with his or her claim for exemption on real property 5
pursuant to NRS 361.155. The affidavit may be filed at any time by 6
a person claiming exemption from taxation on personal property. 7
4. The affidavit must be made before the county assessor or a 8
notary public and filed with the county assessor. It must state that 9
the affiant is a bona fide resident of the State of Nevada who meets 10
all the other requirements of subsection 1 and that the exemption is 11
not claimed in any other county in this State. After the filing of the 12
original affidavit, the county assessor shall, except as otherwise 13
provided in this subsection, mail a form for: 14
(a) The renewal of the exemption; and 15
(b) The designation of any amount to be credited to the Gift 16
Account for the Veterans Home in Southern Nevada or the Gift 17
Account for the Veterans Home in Northern Nevada established 18
pursuant to NRS 417.145, 19
to the person each year following a year in which the exemption 20
was allowed for that person. The form must be designed to facilitate 21
its return by mail by the person claiming the exemption. If so 22
requested by the person claiming the exemption, the county assessor 23
may provide the form to the person by electronic means in lieu of by 24
mail. The county assessor may authorize the return of the form by 25
electronic means in accordance with the provisions of chapter 719 26
of NRS. 27
5. Persons in actual military service are exempt during the 28
period of such service from filing the annual forms for renewal of 29
the exemption, and the county assessors shall continue to grant the 30
exemption to such persons on the basis of the original affidavits 31
filed. In the case of any person who has entered the military service 32
without having previously made and filed an affidavit of exemption, 33
the affidavit may be filed in his or her behalf during the period of 34
such service by any person having knowledge of the facts. 35
6. Before allowing any veteran’s exemption pursuant to the 36
provisions of this chapter, the county assessor shall require proof of 37
status of the veteran, and for that purpose shall require production of 38
an honorable discharge or certificate of satisfactory service or a 39
certified copy thereof, or such other proof of status as may be 40
necessary. 41
7. If any person files a false affidavit or produces false proof to 42
the county assessor or a notary public and, as a result of the false 43
affidavit or false proof, the person is allowed a tax exemption to 44
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which the person is not entitled, the person is guilty of a gross 1
misdemeanor. 2
8. Beginning with the 2005-2006 Fiscal Year, the monetary 3
amounts in [subsections] subsection 1 [and 2] must be adjusted for 4
each fiscal year by adding to the amount the product of the amount 5
multiplied by the percentage increase in the Consumer Price Index 6
(All Items) from July 2003 to the July preceding the fiscal year for 7
which the adjustment is calculated. The Department shall provide to 8
each county assessor the adjusted amount, in writing, on or before 9
September 30 of each year. 10
Sec. 3. NRS 361.091 is hereby amended to read as follows: 11
361.091 1. A bona fide resident of the State of Nevada who 12
has incurred a permanent service-connected disability and has been 13
honorably discharged from the Armed Forces of the United States, 14
or his or her surviving spouse, is entitled to an exemption. 15
2. The amount of exemption is based on the total percentage of 16
permanent service-connected disability. The maximum allowable 17
exemption for total permanent disability is the first $20,000 assessed 18
valuation [.] , plus the amount of any assessed valuation 19
attributable to a flagpole that is a fixture or improvement to real 20
property. A person with a permanent service-connected disability 21
of: 22
(a) Eighty to 99 percent, inclusive, is entitled to an exemption of 23
$15,000 assessed value [.] , plus the amount of any assessed 24
valuation attributable to a flagpole that is a fixture or 25
improvement to real property. 26
(b) Sixty to 79 percent, inclusive, is entitled to an exemption of 27
$10,000 assessed value [.] , plus the amount of any assessed 28
valuation attributable to a flagpole that is a fixture or 29
improvement to real property. 30
For the purposes of this section, any property in which an 31
applicant has any interest is deemed to be the property of the 32
applicant. 33
3. The exemption may be allowed only to a claimant who has 34
filed an affidavit with his or her claim for exemption on real 35
property pursuant to NRS 361.155. The affidavit may be made at 36
any time by a person claiming an exemption from taxation on 37
personal property. 38
4. The affidavit must be made before the county assessor or a 39
notary public and be filed with the county assessor. It must state that 40
the affiant is a bona fide resident of the State of Nevada, that the 41
affiant meets all the other requirements of subsection 1 and that the 42
exemption is not claimed in any other county within this State. After 43
the filing of the original affidavit, the county assessor shall, except 44
as otherwise provided in this subsection, mail a form for: 45
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(a) The renewal of the exemption; and 1
(b) The designation of any amount to be credited to the Gift 2
Account for the Veterans Home in Southern Nevada or the Gift 3
Account for the Veterans Home in Northern Nevada established 4
pursuant to NRS 417.145, 5
to the person each year following a year in which the exemption 6
was allowed for that person. The form must be designed to facilitate 7
its return by mail by the person claiming the exemption. If so 8
requested by the person claiming the exemption, the county assessor 9
may provide the form to the person by electronic means in lieu of by 10
mail. The county assessor may authorize the return of the form by 11
electronic means in accordance with the provisions of chapter 719 12
of NRS. 13
5. Before allowing any exemption pursuant to the provisions of 14
this section, the county assessor shall require proof of the 15
applicant’s status, and for that purpose shall require the applicant to 16
produce an original or certified copy of: 17
(a) An honorable discharge or other document of honorable 18
separation from the Armed Forces of the United States which 19
indicates the total percentage of his or her permanent service-20
connected disability; 21
(b) A certificate of satisfactory service which indicates the total 22
percentage of his or her permanent service-connected disability; or 23
(c) A certificate from the United States Department of Veterans 24
Affairs or any other military document which shows that he or she 25
has incurred a permanent service-connected disability and which 26
indicates the total percentage of that disability, together with a 27
certificate of honorable discharge or satisfactory service. 28
6. A surviving spouse claiming an exemption pursuant to this 29
section must file with the county assessor an affidavit declaring that: 30
(a) The surviving spouse was married to and living with the 31
veteran who incurred a permanent service-connected disability for 32
the 5 years preceding his or her death; 33
(b) The veteran was eligible for the exemption at the time of his 34
or her death or would have been eligible if the veteran had been a 35
resident of the State of Nevada; 36
(c) The surviving spouse has not remarried; and 37
(d) The surviving spouse is a bona fide resident of the State of 38
Nevada. 39
The affidavit required by this subsection is in addition to the 40
certification required pursuant to subsections 4 and 5. After the 41
filing of the original affidavit required by this subsection, the county 42
assessor shall, except as otherwise provided in this subsection, mail 43
a form for renewal of the exemption to the person each year 44
following a year in which the exemption was allowed for that 45
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person. The form must be designed to facilitate its return by mail by 1
the person claiming the exemption. If so requested by the person 2
claiming the exemption, the county assessor may provide the form 3
to the person by electronic means in lieu of by mail. The county 4
assessor may authorize the return of the form by electronic means in 5
accordance with the provisions of chapter 719 of NRS. 6
7. If a veteran or the surviving spouse of a veteran submits, as 7
proof of disability, documentation that indicates a percentage of 8
permanent service-connected disability for more than one permanent 9
service-connected disability, the amount of the exemption must be 10
based on the total of those combined percentages, not to exceed 100 11
percent. 12
8. If a tax exemption is allowed under this section to a person 13
who qualifies for the exemption: 14
(a) As a veteran with a permanent service-connected disability, 15
that person is not entitled to an exemption under NRS 361.090. 16
(b) Solely as the surviving spouse of a veteran with a permanent 17
service-connected disability, the allowance of a tax exemption under 18
this section does not affect the eligibility of that person for an 19
exemption under NRS 361.090. 20
9. If any person files a false affidavit or produces false proof to 21
the county assessor or a notary public and, as a result of the false 22
affidavit or false proof, the person is allowed a tax exemption to 23
which the person is not entitled, the person is guilty of a gross 24
misdemeanor. 25
10. Beginning with the 2005-2006 Fiscal Year, the monetary 26
amounts in subsection 2 must be adjusted for each fiscal year by 27
adding to the amount the product of the amount multiplied by the 28
percentage increase in the consumer price inflation index from July 29
2003 to the July preceding the fiscal year for which the adjustment 30
is calculated. The Department shall provide to each county assessor 31
the adjusted amount, in writing, on or before September 30 of each 32
year. 33
11. For the purposes of this section, “consumer price inflation 34
index” means the Consumer Price Index for All Urban Consumers, 35
West Region (All Items), as published by the United States 36
Department of Labor or, if that index ceases to be published by the 37
United States Department of Labor, the published index that most 38
closely resembles that index, as determined by the Department. 39
Sec. 4. This act becomes effective on July 1, 2025. 40
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