Property tax plan targets relief to Nevada homeowners

Wednesday, March 30, 2005 | 2:25 a.m.

Here are highlights of the leading plan to slow ballooning property tax bills in Nevada:

-Using a clause in the Nevada Constitution that allows tax exemptions for homeowners experiencing "severe economic hardship," the bill would cap property tax increases at 3 percent for all single-family, owner-occupied residences.

-Other properties - largely commercial property and residences - would get a reduction based on a 10-year average increase or would see bills capped at twice the rate of inflation, whichever provided a bigger tax break.

-New homes and construction would be taxed at current levels.

-With the plan in place, local governments and school districts would get about $300 million less in property tax revenue next fiscal year than they would with no law changes. Las Vegas would get about $18 million less, Clark County would get about $58 million less, Washoe County would get $40 million less and Reno would get $14.5 million less.

-Business interests have mounted strong opposition to the plan, arguing that it unfairly taxes residential and commercial properties at different rates.

Leadership in both houses support the bill, although Senate Minority Leader Dina Titus, D-Las Vegas, wants to attach an amendment that would freeze increases for one year before the 3 percent cap would kick in.

-The bill doesn't contain a constitutional amendment to change the state's requirement that taxation be "uniform and equal."

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Source: Nevada Legislature.