Friday, April 1, 2005 | 8:40 a.m.
Here are highlights of AB489, the Legislature's solution to ballooning property tax bills in Nevada:
-HOMEOWNERS: Relying on a constitutional exemption for homeowners experiencing "severe economic hardship," property tax increases are capped at 3 percent for all single-family, owner-occupied primary residences.
-BUSINESS: Other properties - commercial property and residences and second homes - are capped at a 10-year average increase or 8 percent, whichever provides more relief. That cap can't fall below twice the rate of inflation, protecting rural county governments that see decreases in property values.
-RENTERS: Owners of affordable apartments qualify for the 3 percent cap - unless they try to collect a lot more rent.
-SMALL BUSINESSES: The plan has provisions making it easier for small businesses to apply for a tax reduction.
-NEW CONSTRUCTION: New homes and construction are taxed at current levels.
-TAX LOSS: Local governments and school districts get about $323 million less in property tax revenue than if no bill had been passed. The state must make up for some of the lost school district revenue.
-MORE CHANGES: The bill doesn't contain a constitutional amendment to change the state's requirement that taxation be "uniform and equal." A plan to change that language is expected later this session.
-FARMS: Agricultural land isn't included in the bill. Farmers and ranchers already have tax deferrals until there's a change in use, such as subdividing for a housing development.
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Source: Nevada Legislature.
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