State told to reassess Walters developments

Wednesday, April 26, 2006 | 7:19 a.m.

CARSON CITY - The Nevada Supreme Court has ordered state tax officials to reassess the value of two Clark County golf course developments controlled by developer Bill Walters because they may not be worth as much as the county and state officials contend.

If the taxing agencies reduce the value of the properties by several million dollars, as property owners have requested, the tax savings could amount to more than $100,000.

Justices concluded that the state Board of Equalization used the wrong figure in computing the cost of improvements at the Stallion Mountain Country Club - which features three golf courses - and the Royal Links Golf Club.

Royal Links has been a source of controversy because of Walters' plans to convert it to residential development. An investigation initiated by the attorney general's office is examining whether Walters' $7 million offer to Las Vegas for lifting a deed restriction is adequate payment, as well as how Walters acquired the property in the 1990s.

The Supreme Court, ruling last week, ordered the tax board to better justify its valuation of the properties or to reduce its tax assessment on the two courses.

Dan Reaser, an attorney representing the golf course owners, contends Stallion Mountain was overvalued by $12.1 million and Royal Links was overvalued by $5.6 million.

Adjustments to that level would trigger a tax refund of $171,563 for the property owners for the 2002 tax year, Reaser said. Walters is the majority owner of the two courses.

Similar challenges on the assessed valuation of the golf courses, for the 2003-04 and 2004-05 tax years, are pending in District Court in Carson City.

The golf course owners already had successfully argued to the Equalization Board that Clark County had overvalued the properties, but complained to the Supreme Court that the downward adjustments by state officials were insufficient.

The Supreme Court concurred with the Equalization Board's decision to reduce the value per acre of the 160-acre Royal Links to $10,000, from the $30,000 per acre that the county had figured.

The court also agreed with the state board's decision to reduce the value of the 454-acre Stallion Mountain to $7,500 per acre, from the county's $40,000 per-acre assessment.

The golf course owners had hoped the property would be valued at $1,000 per acre.

But in siding with the golf course owners, the court concluded that the Equalization Board had put too high a value on improvements at the two properties, including clubhouses and course features such as cart paths, greens, tees and bunkers.

Refiguring the values of those improvements is the issue to be reconsidered by the Equalization Board.

Dino DiCianno, director of the state Taxation Department, said Tuesday he had not seen the court's ruling and that it was unknown when the tax board would revisit the issue.