Assessor proposes property tax cap

Kirsten Searer

Friday, June 11, 2004 | 10:53 a.m.

Ann Kobritz worries about losing her home, and it's not because she can't make her mortgage.

Kobritz's property taxes have gone up by $500 since she moved here in 1998, from about $2,700 to about $3,200 a year.

The 70-year-old widow and former hotel employee is living on a fixed income and wonders how much that bill can increase before she has to sell her paid-off home in Las Vegas.

"I'm not opposed to taxes," she said. "But I don't want to be thrown from my home."

Kobritz and dozens of other concerned retirees met Thursday with Clark County Assessor Mark Schofield, who is drafting legislation to stop the burgeoning property taxes Nevadans are paying.

Schofield's plan would cap property tax increases at 6 percent each year. He said that's enough to keep revenue flowing into government services but not so much that most people would be priced out of their homes.

He hopes the Legislature will pass a bill in the 2005 session, giving taxpayers relief before their property tax bills are issued in July, 2005.

Property values have increased so much this year that the 2005 taxes, which are billed in July, will be especially steep -- up between 20 to 50 percent, he said.

"If we don't get this done, you are going to have the shock of your life July 1, 2005," he said.

While some have speculated that Nevada's rapidly increasing property values will eventually even out, Schofield said it won't happen soon, and people are struggling to pay property taxes.

"My primary concern is for seniors living on fixed incomes and young families who may not be able to afford homes for several reasons, and property taxes is one of them," he said.

The tax cap would apply to all properties, including commercial properties and undeveloped land, he said. Properties that are sold would be capped at the sale value.

Schofield said he is meeting with legislators to find supporters to sponsor his bill in the next session.

He isn't the only one taking a shot at property taxes this year. Assemblywoman Sharron Angle, R-Reno, is pushing an initiative that would amend the constitution so that property taxes are capped at the 2001-2002 value. It also would limit property taxes at 1 percent of taxable value of a property.

As with Schofield's proposal, homes that are sold would be capped at the sale value.

The petition, which mirrors California's Proposition 13, needs more than 51,000 signatures of Nevada voters before Tuesday in order to qualify for the ballot. Voters would need to approve it in 2004 and 2006 for it to take effect in 2007.

Ken Mahal, president of the Nevada Seniors Coalition, the group that sponsored the meeting with Schofield, told his members that they might support Angle's initiative, but that Schofield's plan will go into effect much sooner.

"This is the best direction we can go with the amount of time we have," he said.

Carole Vilardo, president of the Nevada Taxpayers Association, said her group hasn't yet voted on whether to endorse Schofield's proposal. But she called it the most "sane" proposal to curb property taxes that she has seen so far.

The group has come out against Angle's petition, saying it could expose the state to lawsuits.