2005 Nevada Revised Statutes - Chapter 361A — Taxes on Agricultural Real Property and Open Space

CHAPTER 361A - TAXES ON AGRICULTURAL REALPROPERTY AND OPEN SPACE

GENERAL PROVISIONS

NRS 361A.010 Definitions.

NRS 361A.020 Agriculturalreal property defined.

NRS 361A.030 Agriculturaluse defined.

NRS 361A.031 Convertedto a higher use defined.

NRS 361A.0315 Golfcourse defined. [Effective July 1, 2006.]

NRS 361A.032 Higheruse defined.

NRS 361A.040 Open-spacereal property defined. [Effective through June 30, 2006.]

NRS 361A.040 Open-spacereal property defined. [Effective July 1, 2006.]

NRS 361A.050 Open-spaceuse defined. [Effective through June 30, 2006.]

NRS 361A.050 Open-spaceuse defined. [Effective July 1, 2006.]

NRS 361A.060 Ownerdefined.

NRS 361A.065 Parceldefined.

NRS 361A.090 Legislativedeclaration. [Effective through June 30, 2006.]

NRS 361A.090 Legislativedeclaration. [Effective July 1, 2006.]

ASSESSMENT OF AGRICULTURAL PROPERTY

NRS 361A.100 Applicationby owner.

NRS 361A.110 Filing,contents and execution of application.

NRS 361A.120 Independentdetermination of use; regulations; notice of determination; recording ofapproved applications.

NRS 361A.130 Determinationof value for agricultural use; notification of assessment.

NRS 361A.140 Classificationof agricultural property; valuations for each classification.

NRS 361A.150 Disqualificationof property.

NRS 361A.155 Determinationof taxable value when agricultural land converted to higher use.

NRS 361A.160 Determinationof county assessor final unless appealed.

ASSESSMENT OF OPEN SPACE

NRS 361A.170 Designationsor classifications of property for open-space use; procedures and criteria.[Effective through June 30, 2006.]

NRS 361A.170 Designationsor classifications of property for open-space use; procedures and criteria.[Effective July 1, 2006.]

NRS 361A.180 Applicationby owner. [Effective through June 30, 2006.]

NRS 361A.180 Applicationby owner. [Effective July 1, 2006.]

NRS 361A.190 Filing,contents and execution of application.

NRS 361A.200 Actionon application by governing bodies of county and city: Procedure.

NRS 361A.210 Ordersof approval or denial by board of county commissioners.

NRS 361A.220 Determinationof value for open-space use; notification of assessment. [Effective throughJune 30, 2006.]

NRS 361A.220 Determinationof value for open-space use; notification of assessment. [Effective July 1,2006.]

NRS 361A.225 Determinationof value for open-space use of real property used as golf course. [EffectiveJuly 1, 2006.]

NRS 361A.230 Disqualificationof property. [Effective through June 30, 2006.]

NRS 361A.230 Disqualificationof property. [Effective July 1, 2006.]

NRS 361A.240 Appealfrom determination; equalization of assessment. [Effective through June 30,2006.]

NRS 361A.240 Appealfrom determination; equalization of assessment. [Effective July 1, 2006.]

NRS 361A.250 Redeterminationof use: Complaint; hearing; order; judicial review.

PARTIAL DEFERRED TAXATION AND RECAPTURE OF TAX

NRS 361A.265 Prepaymentof deferred taxes; estimate of taxes due; appeal by owner; conversion to higheruse after secured tax roll has been closed.

NRS 361A.270 Ownerto notify assessor of cessation of agricultural or open-space use or conversionto higher use; survey of portion of parcel converted to higher use.

NRS 361A.271 Assessorto give owner notice of determination; contents of notice.

NRS 361A.273 Appealfrom determination or valuations.

NRS 361A.280 Paymentof deferred tax when property converted to higher use.

NRS 361A.283 Periodfor assessment of deferred tax; penalty for failure of owner to provideassessor with required notice.

NRS 361A.286 Lienfor deferred tax and penalty.

NRS 361A.290 Sellerto notify buyer of lien for deferred taxes; personal liability for deferredtaxes.

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GENERAL PROVISIONS

NRS 361A.010 Definitions. As used in this chapter, the terms defined in NRS 361A.020 to 361A.065, inclusive, have the meaningsascribed to them in those sections except where the context otherwise requires.

(Added to NRS by 1975, 1755; A 1977, 679; 1985, 515;1987, 672; 1989, 1827; 2005,2664)

NRS 361A.020 Agriculturalreal property defined.

1. Agricultural real property means:

(a) Land devoted exclusively for at least 3 consecutiveyears immediately preceding the assessment date to agricultural use.

(b) Land leased by the owner to another person foragricultural use and composed of any lot or parcel which:

(1) Includes at least 7 acres of land devoted toaccepted agricultural practices; or

(2) Is contiguous to other agricultural realproperty owned by the lessee.

(c) Land covered by a residence or necessary to supportthe residence if it is part of a qualified agricultural parcel.

2. The term does not include any land with respect towhich the owner has granted and has outstanding any lease or option to buy thesurface rights for other than agricultural use, except leases for theexploration of geothermal resources as defined in NRS 361.027, mineral resources or othersubsurface resources, or options to purchase such resources, if suchexploration does not interfere with the agricultural use of the land.

3. As used in this section, accepted agriculturalpractices means a mode of operation that is common to farms or ranches of asimilar nature, necessary for the operation of such farms or ranches to obtaina profit in money and customarily utilized in conjunction with agriculturaluse.

(Added to NRS by 1975, 1755; A 1977, 679; 1981, 806;1987, 672, 673; 1989, 1827; 1991, 531)

NRS 361A.030 Agriculturaluse defined.

1. Agricultural use means the current employment ofreal property as a business venture for profit, which business produced aminimum gross income of $5,000 from agricultural pursuits during theimmediately preceding calendar year by:

(a) Raising, harvesting and selling crops, fruit,flowers, timber and other products of the soil;

(b) Feeding, breeding, management and sale oflivestock, poultry, or the produce thereof, if the real property used thereforis owned or leased by the operator and is of sufficient size and capacity toproduce more than one-half of the feed required during that year for theagricultural pursuit;

(c) Operating a feed lot consisting of at least 50 headof cattle or an equivalent number of animal units of sheep or hogs, for theproduction of food;

(d) Raising furbearing animals or bees;

(e) Dairying and the sale of dairy products; or

(f) Any other use determined by the Department toconstitute agricultural use if such use is verified by the Department.

The termincludes every process and step necessary and incident to the preparation andstorage of the products raised on such property for human or animal consumptionor for marketing except actual market locations.

2. As used in this section, current employment ofreal property in agricultural use includes:

(a) Land lying fallow for 1 year as a normal andregular requirement of good agricultural husbandry;

(b) Land planted in orchards or other perennials priorto maturity; and

(c) Land leased or otherwise made available for use byan agricultural association formed pursuant to chapter547 of NRS.

(Added to NRS by 1975, 1755; A 1991, 531; 1997, 1265)

NRS 361A.031 Convertedto a higher use defined.

1. Converted to a higher use means:

(a) A physical alteration of the surface of theproperty enabling it to be used for a higher use;

(b) The recording of a final map or parcel map whichcreates one or more parcels not intended for agricultural use;

(c) The existence of a final map or parcel map whichcreates one or more parcels not intended for agricultural use; or

(d) A change in zoning to a higher use made at therequest of the owner.

2. The term does not apply to the property remainingafter a portion of the parcel is converted to higher use pursuant to paragraph(b) or (c) of subsection 1 if the remaining portion continues to qualify asagricultural real property.

3. The term does not include leasing the land to orotherwise permitting the land to be used by an agricultural association formedpursuant to chapter 547 of NRS.

4. As used in this section:

(a) Final map has the meaning ascribed to it in NRS 278.0145.

(b) Parcel map has the meaning ascribed to it in NRS 278.017.

(Added to NRS by 1987, 671; A 1987, 680; 1993, 2585;1997, 1265, 1583; 1999,434)

NRS 361A.0315 Golfcourse defined. [Effective July 1, 2006.]

1. Golf course means:

(a) Real property that may be used for golfing orgolfing practice by the public or by the members and guests of a private club;and

(b) Improvements to that real property, including,without limitation, turf, bunkers, trees, irrigation, lakes, lake liners,bridges, practice ranges, golf greens, golf tees, paths and trails.

2. The term does not include:

(a) A commercial golf driving range that is notoperated in conjunction with a golf course.

(b) A clubhouse, pro shop, restaurant or other buildingthat is associated with a golf course.

(Added to NRS by 2005, 2663,effective July 1, 2006)

NRS 361A.032 Higheruse defined. Higher use means any use otherthan agricultural use or open-space use.

(Added to NRS by 1977, 678)

NRS 361A.040 Open-spacereal property defined. [Effective through June 30, 2006.] Open-space real property means:

1. Land:

(a) Located within an area classified pursuant to NRS 278.250 and subject to regulationsdesigned to promote the conservation of open space and the protection of othernatural and scenic resources from unreasonable impairment; and

(b) Devoted exclusively to open-space use.

2. The improvements on the land used primarily tosupport the open-space use and not primarily to increase the value ofsurrounding developed property or secure an immediate monetary return.

(Added to NRS by 1975, 1756; A 1987, 673)

NRS 361A.040 Open-space real property defined.[Effective July 1, 2006.] Open-space realproperty means:

1. Land:

(a) Located within an area classified pursuant to NRS 278.250 and subject to regulations designedto promote the conservation of open space and the protection of other naturaland scenic resources from unreasonable impairment; and

(b) Devoted exclusively to open-space use.

2. The improvements on the land described insubsection 1 that is used primarily to support the open-space use and notprimarily to increase the value of surrounding developed property or secure animmediate monetary return.

3. Land that is used as a golf course.

(Added to NRS by 1975, 1756; A 1987, 673; 2005, 2664,effective July 1, 2006)

NRS 361A.050 Open-spaceuse defined. [Effective through June 30, 2006.] Open-spaceuse means the current employment of land, the preservation of which use wouldconserve and enhance natural or scenic resources, protect streams and watersupplies, maintain natural features which enhance control of floods or preservesites designated as historic by the Office of Historic Preservation of theDepartment of Cultural Affairs.

(Added to NRS by 1975, 1756; A 1979, 208; 1987, 432;1993, 1576; 2001, 940)

NRS 361A.050 Open-spaceuse defined. [Effective July 1, 2006.] Open-spaceuse means the current employment of land, the preservation of which use wouldconserve and enhance natural or scenic resources, protect streams and watersupplies, maintain natural features which enhance control of floods or preservesites designated as historic by the Office of Historic Preservation of theDepartment of Cultural Affairs. The use of real property and the improvementson that real property as a golf course shall be deemed to be an open-space useof the land.

(Added to NRS by 1975, 1756; A 1979, 208; 1987, 432;1993, 1576; 2001, 940;2005, 2664,effective July 1, 2006)

NRS 361A.060 Ownerdefined. Owner means any person having alegal or equitable freehold estate in agricultural or open-space real property,including a contract vendee of a land sales contract respecting the property,but excluding a lessee or tenant of the property.

(Added to NRS by 1975, 1756; A 1987, 674)

NRS 361A.065 Parceldefined. Parcel means a contiguous area ofland that is designated by a county assessor as a parcel for assessmentpurposes.

(Added to NRS by 1989, 1827)

NRS 361A.090 Legislativedeclaration. [Effective through June 30, 2006.]

1. It is the intent of the Legislature to:

(a) Constitute agricultural and open-space realproperty as a separate class for taxation purposes; and

(b) Provide a separate plan for:

(1) Appraisal and valuation of such property forassessment purposes; and

(2) Partial deferred taxation of such propertywith tax recapture as provided in NRS361A.280 and 361A.283.

2. The Legislature hereby declares that it is in thebest interest of the State to maintain, preserve, conserve and otherwisecontinue in existence adequate agricultural and open-space lands and thevegetation thereon to assure continued public health and the use and enjoymentof natural resources and scenic beauty for the economic and social well-beingof the State and its citizens.

(Added to NRS by 1975, 1756; A 1991, 2101)

NRS 361A.090 Legislative declaration. [EffectiveJuly 1, 2006.]

1. It is the intent of the Legislature to:

(a) Constitute agricultural and open-space realproperty as a separate class for taxation purposes; and

(b) Provide a separate plan for:

(1) Appraisal and valuation of such property forassessment purposes; and

(2) Partial deferred taxation of such propertywith tax recapture as provided in NRS361A.280 and 361A.283.

2. The Legislature hereby declares that it is in thebest interest of the State to maintain, preserve, conserve and otherwisecontinue in existence adequate agricultural and open-space lands and thevegetation thereon to assure continued public health and the use and enjoymentof natural resources and scenic beauty for the economic and social well-beingof the State and its citizens.

3. The Legislature hereby further finds and declaresthat the use of real property and improvements on that real property as a golfcourse achieves the purpose of conserving and enhancing the natural and scenicresources of this State and promotes the conservation of open space.

(Added to NRS by 1975, 1756; A 1991, 2101; 2005, 2664,effective July 1, 2006)

ASSESSMENT OF AGRICULTURAL PROPERTY

NRS 361A.100 Applicationby owner. Any owner of real property may applyto the county assessor for agricultural use assessment and the payment of taxeson such property as provided in this chapter.

(Added to NRS by 1975, 1757)

NRS 361A.110 Filing,contents and execution of application.

1. Any application for agricultural use assessmentmust be filed on or before June 1 of any year:

(a) With the county assessor of each county in whichthe property is located, if the property contains 20 acres or more.

(b) With the Department, if the property contains lessthan 20 acres.

2. Except as otherwise provided in this subsection, anew application to continue that assessment is required on or before June 1following any change in ownership or conversion to a higher use of any portionof the property. If the property is divided, an owner who retains a portionqualifying as agricultural real property is not required to file a newapplication to continue agricultural use assessment on the portion retainedunless any part of that portion is converted to a higher use.

3. The application must be made on forms prepared bythe Department and supplied by the county assessor and must include suchinformation as may be required to determine the entitlement of the applicant toagricultural use assessment. Each application must contain an affidavit oraffirmation by the applicant that the statements contained therein are true.The application must prominently contain the printed statement This propertymay be subject to liens for undetermined amounts.

4. The application may be signed by:

(a) The owner of the agricultural real property,including tenants in common or joint tenants.

(b) Any person, of lawful age, authorized by anexecuted power of attorney to sign an application on behalf of any persondescribed in paragraph (a).

(c) The guardian or conservator of an owner or theexecutor or administrator of an owners estate.

5. The county assessor shall not approve anapplication unless the application is signed by each owner of record or hisrepresentative as specified in subsection 4. Additional information may berequired of the applicant if necessary to evaluate his application.

(Added to NRS by 1975, 1757; A 1979, 276; 1987, 674;1993, 177)

NRS 361A.120 Independentdetermination of use; regulations; notice of determination; recording ofapproved applications.

1. Upon receipt of an application, the county assessoror the Department shall make an independent determination of the use of theowners real property. The assessor or the Department shall consider the use ofthe property by its owner or occupant together with any other agricultural realproperty that is a part of one agricultural unit being operated by the owner oroccupant. The assessor or the Department shall consider the use of agriculturalreal property which is not contiguous to the owners real property only if thatproperty has been in agricultural use for at least 2 months during the 2 yearspreceding the receipt of the application.

2. The assessor or the Department may inspect theproperty and request such evidence of use and sources of income as is necessaryto make an accurate determination of use. The assessor or the Department maydeny the application when the owner or occupant refuses to permit theinspection or furnish the evidence.

3. The Department shall provide by regulation for amore detailed definition of agricultural use, consistent with the generaldefinition given in NRS 361A.030, foruse by county assessors or the Department in determining entitlement toagricultural use assessment.

4. The county assessor or the Department shall send tothe applicant a written notice of his or its determination within 10 days afterdetermining the applicants entitlement to agricultural use assessment. If anapplicant seeking agricultural use assessment on property located in more thanone county is refused such assessment in any one county, he may withdraw hisapplication for such assessment in all other counties.

5. The county assessor or the Department shall recordthe application with the county recorder within 10 days after its approval.

(Added to NRS by 1975, 1757; A 1987, 675; 1989, 1827;1993, 178)

NRS 361A.130 Determinationof value for agricultural use; notification of assessment.

1. If the property is found to be agricultural realproperty, the county assessor shall determine its value for agricultural useand assess it for taxes to be collected in the ensuing fiscal year at 35percent of that value.

2. The agricultural use assessment must be maintainedin the records of the assessor and must be made available to any person uponrequest. The property owner must be notified of the agricultural use assessmentin the manner provided for notification of taxable value assessments. Thenotice must contain the following statement: Deferred taxes will become due onthis parcel if it is converted to a higher use.

(Added to NRS by 1975, 1758; A 1977, 679; 1981, 807;1987, 675; 1993, 178)

NRS 361A.140 Classificationof agricultural property; valuations for each classification.

1. On or before the first Monday in October of eachyear, the Nevada Tax Commission shall:

(a) Define the classifications of agricultural realproperty.

(b) Except as otherwise provided in paragraph (c),determine the valuations for each classification on the basis provided in NRS 361.325.

(c) Provide for the determination of the value of theland covered by a residence or necessary to support the residence in the samemanner as other real property pursuant to NRS361.227.

(d) Prepare a bulletin listing all classifications andvalues thereof for the following assessment year.

2. The county assessors shall classify agriculturalreal property utilizing the definitions and applying the appropriate valuespublished in the Tax Commissions bulletin.

(Added to NRS by 1975, 1758; A 1983, 1617; 1989,1828)

NRS 361A.150 Disqualificationof property.

1. The county assessor shall enter on the assessmentroll the valuation based on agricultural use until the property becomesdisqualified for agricultural use assessment by:

(a) Notification by the applicant to the assessor toremove the agricultural use assessment pursuant to NRS 361A.270;

(b) Sale or transfer to an owner making it exempt fromad valorem property taxation;

(c) Removal of the agricultural use assessment by theassessor upon discovery that the property is no longer in agricultural use; or

(d) Failure to file an application as provided in NRS 361A.110.

2. Except as otherwise provided in paragraph (b) ofsubsection 1, the sale or transfer to a new owner or transfer by reason ofdeath of a former owner does not operate to disqualify agricultural realproperty from agricultural use assessment so long as the property continues tobe used exclusively for agricultural use, if the new owner applies foragricultural use assessment in the manner provided in NRS 361A.110.

3. Within 30 days after agricultural real propertybecomes disqualified under subsection 1, the county assessor shall send awritten notice of disqualification by certified mail with return receiptrequested to each owner of record. The notice must contain the nonagriculturalassessed value for the ensuing fiscal year.

(Added to NRS by 1975, 1758; A 1977, 680; 1987, 676;1991, 2101; 1993, 179)

NRS 361A.155 Determinationof taxable value when agricultural land converted to higher use. When any portion of agricultural land is converted to ahigher use, the county assessor shall determine its taxable and agriculturaluse values against which to compute the deferred tax for each fiscal year theproperty was under agricultural assessment during the current fiscal year andthe preceding 6 fiscal years, or such other period as is required pursuant to NRS 361A.283. The agricultural use valuesfor each of the years may be based on the agricultural use for the latest year.The taxable values for each year must be comparable for the corresponding yearsto the taxable values for property similar, including, without limitation, insize, zoning and location, to the portion of property actually converted to ahigher use.

(Added to NRS by 1977, 678; A 1981, 807; 1987, 676;1989, 1828; 1991, 2102)

NRS 361A.160 Determinationof county assessor final unless appealed. Thedetermination of use and agricultural use assessment in each year are finalunless appealed in the manner provided in chapter361 of NRS for complaints of overvaluation, excessive valuation orundervaluation.

(Added to NRS by 1975, 1759; A 1977, 680; 1981, 808;1987, 677; 1993, 179)

ASSESSMENT OF OPEN SPACE

NRS 361A.170 Designationsor classifications of property for open-space use; procedures and criteria.[Effective through June 30, 2006.]

1. The governing body of each city or county shall,from time to time, specify by resolution the designations or classificationsunder its master plan designed to promote the conservation of open space, themaintenance of natural features for control of floods and the protection ofother natural and scenic resources from unreasonable impairment.

2. The board of county commissioners shall, from timeto time, adopt by ordinance procedures and criteria which must be used inconsidering an application for open-space use assessment. The criteria mayinclude requirements respecting public access to and the minimum size of theproperty.

(Added to NRS by 1975, 1757; A 1987, 432, 677)

NRS 361A.170 Designations or classifications ofproperty for open-space use; procedures and criteria. [Effective July 1, 2006.]

1. Property used as a golf course is hereby designatedand classified as open-space real property and must be assessed as an open-spaceuse.

2. In addition to the designation and classificationof a golf course as open-space real property pursuant to subsection 1, thegoverning body of each city or county shall, from time to time, specify byresolution additional designations or classifications under its master planthat are designed to promote the conservation of open space, the maintenance ofnatural features for control of floods and the protection of other natural andscenic resources from unreasonable impairment.

3. The board of county commissioners shall, from timeto time, adopt by ordinance procedures and criteria which must be used inconsidering an application for open-space use assessment based on a designationor classification adopted pursuant to subsection 2. The criteria may includerequirements respecting public access to and the minimum size of the property.

(Added to NRS by 1975, 1757; A 1987, 432, 677; 2005, 2665,effective July 1, 2006)

NRS 361A.180 Applicationby owner. [Effective through June 30, 2006.] Anyowner of real property may apply to the county assessor for open-space use assessmentand the payment of taxes on such property as provided in this chapter.

(Added to NRS by 1975, 1759)

NRS 361A.180 Application by owner. [Effective July1, 2006.] Any owner of real property may applyto the county assessor for open-space use assessment based on a designation orclassification adopted pursuant to subsection 2 of NRS 361A.170 and the payment of taxes onsuch property as provided in this chapter.

(Added to NRS by 1975, 1759; A 2005, 2665,effective July 1, 2006)

NRS 361A.190 Filing,contents and execution of application.

1. Any application for open-space use assessment mustbe filed on or before June 1 of any year with the county assessor of eachcounty in which the property is located. A new application to continue thatassessment is required on or before June 1 following any change in ownership orfrom approved open-space use of any portion of the property. If the property isdivided, an owner who retains a portion of the property must file a newapplication in order to continue open-space use assessment on the portionretained.

2. The application must be made on forms prepared bythe Department and supplied by the county assessor and must include adescription of the property, its current use and such other information as maybe required to determine the entitlement of the applicant to open-space useassessment. Each application must contain an affidavit or affirmation by theapplicant that the statements contained therein are true.

3. The application may be signed by:

(a) The owner of the open-space real property,including tenants in common or joint tenants.

(b) Any person, of lawful age, authorized by a dulyexecuted power of attorney to sign an application on behalf of any persondescribed in paragraph (a).

(c) The guardian or conservator of an owner or theexecutor or administrator of an owners estate.

4. The county assessor shall not accept an applicationunless the application is signed by each owner of record or his representativeas specified in subsection 3. The assessor may require such additionalinformation of the applicant as is necessary to evaluate his application.

(Added to NRS by 1975, 1759; A 1979, 277; 1993, 179)

NRS 361A.200 Actionon application by governing bodies of county and city: Procedure.

1. The county assessor shall refer each applicationfor open-space use assessment to the board of county commissioners, and if anypart of the property is located within an incorporated city to the governingbody of the city, within 10 days after its filing.

2. The governing body of the city shall consider theapplication in a public hearing. The governing body shall use the applicableprocedures and criteria adopted pursuant to NRS361A.170 and recommend its approval or denial to the board of countycommissioners no later than 90 days after receipt of the application.

3. The board of county commissioners shall considerthe application in a public hearing. The board shall use the applicableprocedures and criteria adopted pursuant to NRS361A.170 and weigh the benefits to the general welfare of preserving thecurrent use of the property against the potential loss in revenue which mayresult from approving the application. The board may set such conditions as itreasonably may require upon its approval of the application.

4. At least 10 days notice of the time and place ofany public hearing held pursuant to this section shall be published in anewspaper of general circulation in the county.

5. The board may approve the application with respectto only part of the property, but if any part of the application is denied, theapplicant may withdraw the entire application.

6. The board shall approve or deny an application nolater than March 31 of each year. An application on which action by the boardis not completed by March 31 is approved.

(Added to NRS by 1975, 1759)

NRS 361A.210 Ordersof approval or denial by board of county commissioners.

1. Within 10 days after the board approves anapplication for open-space use assessment, it shall:

(a) Send copies of the order of approval to the countyassessor and the applicant.

(b) Record the order of approval with the countyrecorder.

2. When the board denies an application, it shall,within 10 days after denial, send an order of denial to the applicant listingits reasons for denial.

(Added to NRS by 1975, 1760)

NRS 361A.220 Determinationof value for open-space use; notification of assessment. [Effective throughJune 30, 2006.]

1. If the property is found by the board of countycommissioners to be open-space real property, the county assessor shalldetermine its value for open-space use and assess it for taxes to be collectedin the ensuing fiscal year at 35 percent of that value.

2. The open-space use assessment must be maintained inthe records of the assessor and must be made available to any person uponrequest. The property owner must be notified of the open-space use assessmentin the manner provided for notification of taxable value assessments. Thenotice must contain the statement: Deferred taxes will become due on anyportion of this parcel which is converted to a higher use.

(Added to NRS by 1975, 1760; A 1977, 680; 1981, 808;1987, 677; 1993, 180)

NRS 361A.220 Determination of value for open-spaceuse; notification of assessment. [Effective July 1, 2006.]

1. If property is to be assessed as open-space realproperty, the county assessor shall determine its value for open-space use andassess it for taxes to be collected in the ensuing fiscal year at 35 percent ofthat value.

2. The open-space use assessment must be maintained inthe records of the assessor and must be made available to any person uponrequest. The property owner must be notified of the open-space use assessmentin the manner provided for notification of taxable value assessments. Thenotice must contain the statement: Deferred taxes will become due on anyportion of this parcel which is converted to a higher use.

(Added to NRS by 1975, 1760; A 1977, 680; 1981, 808;1987, 677; 1993, 180; 2005,2665, effective July 1, 2006)

NRS 361A.225 Determinationof value for open-space use of real property used as golf course. [EffectiveJuly 1, 2006.]

1. For the purposes of NRS 361A.220, the value for open-spaceuse of real property used as a golf course in a fiscal year is equal to the sumof:

(a) The value of the land; and

(b) The value of the improvements made to the realproperty before that fiscal year as adjusted for obsolescence,

determinedin accordance with the manual established pursuant to subsection 2.

2. The Nevada Tax Commission shall establish a manualfor determining the value for open-space use of real property used as a golfcourse. The manual must:

(a) Require the use of such standards and modifiers, aspublished or furnished by the Marshall and Swift Publication Company, as theNevada Tax Commission determines to be applicable.

(b) For the purpose of determining the value of theland, define various classifications of golf courses and provide for thevaluation of each such classification in a manner that is consistent with theprovisions of NRS 361.227, except thatthe value of the land must not be determined to exceed the product of $2,860per acre multiplied by 1 plus the percentage change in the Consumer Price Index(All Items) for July 1 of the current year as compared to July 1, 2004.

(c) For the purpose of determining the value of theimprovements made to the real property, require the use of such factors as theNevada Tax Commission determines to be appropriate. Those factors must include,for the purpose of determining obsolescence, a factor for golf courses that arenot used on a consistently frequent basis each month of the year, which isbased upon the actual number of rounds of golf played on the golf course inrelation to the number of rounds that could have been played under optimumconditions.

(Added to NRS by 2005, 2663,effective July 1, 2006)

NRS 361A.230 Disqualificationof property. [Effective through June 30, 2006.]

1. The county assessor shall enter on the assessmentroll the valuation based on open-space use until the property becomesdisqualified for open-space use assessment by:

(a) Notification by the applicant to the assessor toremove the open-space use assessment;

(b) Sale or transfer to an owner making it exempt fromad valorem property taxation;

(c) Removal of the open-space use assessment by theassessor, with the concurrence of the board, upon discovery that the propertyis no longer in the approved open-space use; or

(d) Failure to file a new application as provided in NRS 361A.190.

2. Except as otherwise provided in paragraph (b) ofsubsection 1, the sale or transfer to a new owner or transfer by reason ofdeath of a former owner does not operate to disqualify open-space real propertyfrom open-space use assessment so long as the property continues to be usedexclusively for an approved open-space use, if the new owner applies foropen-space use assessment in the manner provided in NRS 361A.190.

3. Whenever open-space real property becomesdisqualified under subsection 1, the county assessor shall send a writtennotice of disqualification by certified mail with return receipt requested toeach owner of record. The notice must contain the assessed value for theensuing fiscal year.

(Added to NRS by 1975, 1760; A 1977, 681; 1987, 678;1993, 180)

NRS 361A.230 Disqualification of property.[Effective July 1, 2006.]

1. The county assessor shall enter on the assessmentroll the valuation based on open-space use until the property becomesdisqualified for open-space use assessment by:

(a) Sale or transfer to an owner making it exempt fromad valorem property taxation;

(b) Removal of the open-space use assessment by theassessor, with the concurrence of the board, upon discovery that the propertyis no longer in the open-space use; or

(c) If the open-space use assessment is based on adesignation or classification adopted pursuant to subsection 2 of NRS 361A.170:

(1) Notification by the applicant to theassessor to remove the open-space use assessment; or

(2) Failure to file a new application asprovided in NRS 361A.190.

2. Except as otherwise provided in paragraph (a) ofsubsection 1, the sale or transfer to a new owner or transfer by reason ofdeath of a former owner does not operate to disqualify open-space real propertyfrom open-space use assessment so long as the property continues to be usedexclusively for an open-space use. If the open-space use assessment is based ona designation or classification adopted pursuant to subsection 2 of NRS 361A.170, the new owner must applyfor open-space use assessment in the manner provided in NRS 361A.190.

3. Whenever open-space real property becomesdisqualified under subsection 1, the county assessor shall send a writtennotice of disqualification by certified mail with return receipt requested toeach owner of record. The notice must contain the assessed value for theensuing fiscal year.

(Added to NRS by 1975, 1760; A 1977, 681; 1987, 678;1993, 180; 2005, 2665,effective July 1, 2006)

NRS 361A.240 Appealfrom determination; equalization of assessment. [Effective through June 30,2006.]

1. The determination of use and the open-space useassessment in each year are final unless appealed.

2. The applicant for open-space assessment is entitledto:

(a) Appeal the determination made by the board ofcounty commissioners to the district court in the county where the property islocated, or if located in more than one county, in the county in which themajor portion of the property is located, as provided in NRS 278.0235.

(b) Equalization of the open-space use assessment inthe manner provided in chapter 361 of NRS forcomplaints of overvaluation, excessive valuation or undervaluation.

(Added to NRS by 1975, 1761; A 1977, 681; 1981, 808;1987, 678)

NRS 361A.240 Appeal from determination;equalization of assessment. [Effective July 1, 2006.]

1. The determination of use and the open-space useassessment in each year are final unless appealed.

2. If the application for an open-space use assessmentis based on a designation or classification adopted pursuant to subsection 2 ofNRS 361A.170, the applicant for theopen-space assessment is entitled to:

(a) Appeal the determination made by the board ofcounty commissioners to the district court in the county where the property islocated, or if located in more than one county, in the county in which themajor portion of the property is located, as provided in NRS 278.0235.

(b) Equalization of the open-space use assessment inthe manner provided in chapter 361 of NRS forcomplaints of overvaluation, excessive valuation or undervaluation.

(Added to NRS by 1975, 1761; A 1977, 681; 1981, 808;1987, 678; 2005, 2666,effective July 1, 2006)

NRS 361A.250 Redeterminationof use: Complaint; hearing; order; judicial review.

1. Any person claiming that any open-space realproperty is no longer in the approved open-space use may file a complaint andproof of his claim with the board of county commissioners of the county orcounties in which the property is located. The complaint and proof must showthe name of each owner of record of the property, its location, description andthe use in which it is claimed to be.

2. The board shall hear the complaint after 10 daysnotice of the time to the complainant and each owner of the property.

3. The board shall examine the proof and all data andevidence submitted by the complainant, together with any evidence submitted bythe county assessor or any other person. The board shall notify thecomplainant, each owner of the property and the county assessor of itsdetermination within 10 days after the hearing. It shall direct the county assessorto appraise, value and tax the property for the ensuing fiscal year in a mannerconsistent with its determination and the provisions of this chapter and, inappropriate cases, order the tax receiver to collect any amounts due under NRS 361A.280 and 361A.283.

4. The determination of the board may be appealed tothe district court by the complainant or the owner of the property as providedin NRS 361A.240.

(Added to NRS by 1975, 1761; A 1991, 2102; 1993, 181)

PARTIAL DEFERRED TAXATION AND RECAPTURE OF TAX

NRS 361A.265 Prepaymentof deferred taxes; estimate of taxes due; appeal by owner; conversion to higheruse after secured tax roll has been closed.

1. An owner of property which has received anagricultural or open-space use assessment:

(a) Must pay the full amount of deferred taxescalculated pursuant to NRS 361A.280for any property for which a final map will be recorded pursuant to NRS 278.460 before the date on which themap is recorded.

(b) In all other cases may, before the conversion ofany portion of the property to a higher use, pay the amount of deferred taxeswhich would be due upon the conversion of that property pursuant to NRS 361A.280.

2. An owner who desires to pay the deferred taxes mustrequest, in writing, the county assessor to estimate the amount of the deferredtaxes which would be due at the time of conversion. After receiving such arequest, the county assessor shall estimate the amount of the deferred taxesdue for the next property tax statement and report the amount to the owner.

3. An owner who voluntarily pays the deferred taxesmay appeal the valuations and calculations upon which the deferred taxes werebased in the manner provided in NRS361A.273.

4. If a parcel that has been created after the securedtax roll has been closed is converted to a higher use, the assessor must changethe roll to reflect the changes in the parcel or parcels and assess the newparcel or parcels at taxable value for the following fiscal year. The deferredtax must be assessed pursuant to NRS361A.280.

(Added to NRS by 1987, 672; A 1989, 1829; 1991, 2103;1993, 181; 1997, 1583)

NRS 361A.270 Ownerto notify assessor of cessation of agricultural or open-space use or conversionto higher use; survey of portion of parcel converted to higher use.

1. Within 30 days after a parcel or any portion of aparcel of real property which has received agricultural or open-space useassessment ceases to be used exclusively for agricultural use or the approvedopen-space use or is converted to a higher use, the owner shall notify thecounty assessor in writing of the date of cessation or change of that use.

2. In addition to the notice required by subsection 1,an owner of agriculturally assessed land who wishes to have a portion of aparcel converted to a higher use rather than the entire parcel must record andtransmit to the county assessor a survey of the portion of the parcel to beconverted. The survey must be transmitted to the county assessor at the sametime as the notice required by subsection 1. The recordation of a surveypursuant to this subsection does not create a new parcel.

3. The county assessor shall keep a description of anyportion of a parcel that is separately converted to a higher use and a recordof the taxes paid on that portion of the parcel with his records for the parceluntil the remainder of the parcel is converted to a higher use or the parcelbecomes inactive.

(Added to NRS by 1975, 1762; A 1979, 277; 1987, 678;1989, 1829; 1991, 2103)

NRS 361A.271 Assessorto give owner notice of determination; contents of notice. Within 30 days after determining that property has beenconverted to a higher use, the county assessor shall send a written notice ofthat determination by certified mail, return receipt requested, to each ownerof record. The notice must contain the taxable and assessed values for the nexttax roll and all prior years for which a deferred tax or penalty is owedpursuant to NRS 361A.280 or 361A.283.

(Added to NRS by 1987, 671; A 1991, 2103)

NRS 361A.273 Appealfrom determination or valuations.

1. An owner of property who receives a notice ofconversion which is postmarked on or after July 1 and before December 16 mayappeal in the manner provided in NRS 361.355:

(a) The determination that the property has beenconverted to a higher use; and

(b) The valuations for the years described in thenotice,

to the boardof equalization of the county in which the property is located.

2. An owner who receives a notice of conversion whichis postmarked on or after December 16 and before July 1 may appeal, not laterthan July 15 of the ensuing fiscal year:

(a) The determination that the property has beenconverted to a higher use; or

(b) The valuations for the years described on thenotice,

directly tothe State Board of Equalization.

(Added to NRS by 1987, 672; A 1993, 182)

NRS 361A.280 Paymentof deferred tax when property converted to higher use.If the county assessor is notified or otherwise becomes aware that aparcel or any portion of a parcel of real property which has receivedagricultural or open-space use assessment has been converted to a higher usethe county assessor shall add to the tax extended against that portion of theproperty on the next property tax statement the deferred tax, which is thedifference between the taxes that would have been paid or payable on the basisof the agricultural or open-space use valuation and the taxes which would havebeen paid or payable on the basis of the taxable value calculated pursuant to NRS 361A.155, for each year in whichagricultural or open-space use assessment was in effect for the property duringthe fiscal year in which the property ceased to be used exclusively foragricultural use or approved open-space use and the preceding 6 fiscal years.The county assessor shall assess the property pursuant to NRS 361.227 for the next fiscal yearfollowing the date of conversion to a higher use.

(Added to NRS by 1975, 1762; A 1977, 681; 1979, 277;1981, 809; 1987, 678; 1989, 1829; 1991, 2104)

NRS 361A.283 Periodfor assessment of deferred tax; penalty for failure of owner to provideassessor with required notice.

1. If the county assessor determines that the deferredtax for any fiscal year or years was not assessed in the year it became due, hemay assess it anytime within 5 fiscal years after the end of the fiscal year inwhich a parcel or portion of a parcel was converted to a higher use.

2. If the county assessor determines that a parcel wasassessed for agricultural use rather than at full taxable value for any fiscalyear in which it did not qualify for agricultural assessment, he may assess thedeferred tax for that year anytime within 5 years after the end of that fiscalyear.

3. A penalty equal to 20 percent of the totalaccumulated deferred tax described in subsections 1 and 2 must be added foreach of the years in which the owner failed to provide the written noticerequired by NRS 361A.270. The countyassessor may waive this penalty if he finds extenuating circumstancessufficient to justify the waiver.

(Added to NRS by 1991, 2100; A 1999, 2775)

NRS 361A.286 Lienfor deferred tax and penalty.

1. The deferred tax and penalty assessed pursuant to NRS 361A.280 and 361A.283 are a perpetual lien until paidas provided in NRS 361.450. If theproperty continues to be used exclusively for agricultural use or approvedopen-space use for 7 fiscal years after the date of attachment, the lien forthat earliest year expires. The lien is for an undetermined amount until theproperty is converted and the amount is determined pursuant to NRS 361A.280. Any liens calculated andrecorded before July 1, 1989, for property that had not been converted shall bedeemed to have expired on that date.

2. If agricultural or open-space real propertyreceiving agricultural or open-space use assessment is sold or transferred toan ownership making it exempt from taxation ad valorem, any such liens fordeferred taxes must, unless the property is sold or transferred to the NevadaSystem of Higher Education, a school district or another local governmentalentity, be paid in full before the transfer of ownership if the property isconverted to another use.

3. The provisions of this section do not apply to anyportion of agricultural or open-space real property if the deferred tax and anypenalty have been paid pursuant to NRS361A.265.

4. Each year, the county assessor must record a listof parcel numbers and owners names for all parcels on which a lien existspursuant to subsection 1.

(Added to NRS by 1991, 2101; A 1993, 2513; 1999, 1232; 2005, 2666)

NRS 361A.290 Sellerto notify buyer of lien for deferred taxes; personal liability for deferredtaxes.

1. If there are deferred taxes that have not been paidunder the provisions of NRS 361A.265, 361A.280 or 361A.283 at the time real property issold or transferred, the seller must notify the buyer in writing that there isa lien for deferred taxes on the property.

2. The owner of the property as of the date on whichthe deferred taxes become due pursuant to this chapter is liable for thedeferred taxes.

(Added to NRS by 1981, 879; A 1989, 1831; 1991, 2105)

 

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