Plucking a Live Goose

The Nevada Legislature, never one to let a sleeping homeowner lie, is presently toying with a scheme so bold, so ingenious in its audacity, that one must pause to admire the nerve. Assembly Joint Resolution 1 (AJR1), proposed by Assemblywoman Natha Anderson, seeks to reconfigure property taxes with all the gentle subtlety of a pickpocket in a crowd—only this time, the crowd is new homebuyers, and the pickpocket is the state.

Under the present system, Nevada acknowledges that houses, like men, do not improve with age but rather sag, crack, and depreciate, so the tax burden eases accordingly. It has long kept the peace between property owners and the revenue collectors.

But peace is fragile, and AJR1 aims to smash it to bits.

Should this amendment slither its way into law, the hapless soul who dares to purchase a home will have two new and delightful features–first, all depreciation benefits will be summarily abolished for the first year after purchase, and second, for every year thereafter, the home will get taxed as if built yesterday—never mind if the paint is peeling, the roof is sagging, or the pipes wheeze like an asthmatic mule.

An analysis of the measure suggests that homebuyers could see their tax bills inflate by 30-50 percent, a development that will no doubt leave them dazzled with the brilliance of legislative innovation. Identical homes may be subject to wildly different tax bills, all because one was unfortunate enough to have a “For Sale” sign in the yard.

The resolution’s defenders insist it will bring in more “consistent revenue,” which is legislative parlance for “it’s not about fairness, it’s about cash.” Meanwhile, a vague promise of tax relief for seniors and the challenged has been sprinkled in as a soothing balm—though, like most legislative promises, the specifics are as clear as mud.

Should the dubious proposal survive two consecutive legislative sessions, it will find itself on the ballot, where the public may either bless it with their approval or bury it six feet deep under a landslide of “no” votes. Given the nature of tax amendments—permanent, unyielding, and prone to causing regret—one would be wise to nip this one in the bud before it takes root and flourishes into a full-grown fiscal affliction.

In short, Nevada’s taxpayers are advised to keep a wary eye on their pockets, for the long arm of the law is reaching once again, and this time, it’s aiming for the deed to the family home.