A Fresh Squeeze on the Silver State

A New Tax Notion Rides into Town

The venerable sport of tax tinkering is alive and well in the Nevada Legislature.

Assemblywoman Natha Anderson has saddled up a fresh proposal to rearrange the arithmetic of property assessments. This enterprising scheme, known as AJR1, aims to upend the traditional method of taxation, ensuring that when a man parts ways with his land, the taxman is ready at the gate with a brand-new ledger and a sharp pencil.

Under the present arrangement, Nevada calculates property taxes based on land value and the cost of improvements, subtracting a modest sum each year for the wear and tear inflicted by time—1.5 percent annually, up to half a century. Partial abatements act as a damper, preventing taxes from ballooning like a politician’s campaign promises.

But fear not, for AJR1 proposes to snip away at these kindly considerations. Depreciation, that small mercy granted to the weary homeowner, would vanish the first year after a sale, and any improvements would be judged afresh as if age and entropy were mere fictions.

To soften the blow—or perhaps to ensure the townsfolk don’t take up pitchforks—the grand revision includes a tax refund program for those who have achieved the ripe age of 62 or find themselves beset by disabilities, provided they reside in the home taxed upon. The measure debuted in the Assembly on January 22, though it appears to be loitering in the halls of government, awaiting its next move.

Whether it rides triumphantly into law or led out the back door remains to be seen, but one thing is for sure–when it comes to taxes, the rules may change, but the payer remains the same.