Amendment gives golf courses tax break

Tuesday, June 7, 2005 | 9:52 a.m.

CARSON CITY -- A big property tax break is going to golf courses in Nevada.

Southern Nevada golf courses, which pay property taxes on a valuation of as much as $25,000 an acre, will see the value drop to $2,860 an acre under a controversial late amendment approved Sunday night.

The amendment was added to Senate Bill 394, which was sought by county assessors to clear up laws, including making it a gross misdemeanor for someone who files a false affidavit to the assessor's office to gain a tax exemption.

The bill, which considers golf courses as open space "enhancing the natural and scenic resources of this state," is on its way to Gov. Kenny Guinn.

Sen. Mike McGinness, R-Fallon, said he was "not pleased" that the golf course amendment appeared late in the session.

"They played the end game really well," he said, adding that the Legislature will consider in two years whether to continue the tax break.

The bill temporarily stalled Sunday night when some members of the Senate Taxation Committee complained that they never saw the golf tax plan and there were no public hearings.

"It short-changes the process," said Sen. Terry Care, D-Las Vegas, who called it a last-minute amendment.

Bob Ostrovsky, a lobbyist for Billy Walters, who owns four golf courses Southern Nevada, said the plan was not a last-ditch effort to change the law. He said there were full hearings in the Assembly.

Ostrovsky said he had sought a reduction to $500 an acre, as is the case in Arizona. "We are not plowing new ground," said Ostrovsky, noting that other states have reduced values on the land.

The bill says, "The Legislature hereby further finds and declares that the use of real property and improvements on that real property as a golf course achieves the purpose of conserving and enhancing the natural and scenic resources of this state and promotes the conservation of open space."

It contains a section that the value of the land would go up according to the Consumer Price Index plus 1 percent of the value of the property.

Ostrovsky said this bill does not affect the taxes on the clubhouse and other buildings. The Nevada Tax Commission, he said, must now adopt a manual on assessing the tees, greens, bunkers and fairways. Open meetings will be held to discuss these items, which will be in addition to the land values.

"That will determine the true value" of the golf courses, Ostrovsky said.

Clark County Assessor Mark Schofield said Monday the courses in Southern Nevada are valued between $10,000 and $25,000 an acre. The formula calls for a private course to be valued at $10,000 an acre; a semi-private course at $15,000 an acre, a public course at $20,000 an acre and a course attached to a resort at $25,000 an acre.