NPTR: Workshop - Department of Taxation Monday Aug. 25th

Sat Aug 23 19:08:54 PDT 2003

        PROPERTY OWNERS ALERT # 25

        Saturday, August 23, 2003

        TO: Incline Village/Crystal Bay Property Owners

        FROM: The Village League to Save Incline Assets, Inc.

        SUBJECT: Workshop Department of Taxation

        Dear Property Owner,

        Coming up on Monday August 25th the Department of Taxation will be holding a workshop on their "draft" revisions of the regulations relating to the procedures the assessor must follow in determining the taxable value of your property. This is a very important workshop because this appears to be an attempt by the Department of Taxation to revise, broaden, and ratify, after the fact, the illegal methods the Washoe County Assessor has been using to appraise properties in Incline and Crystal Bay. 

        If the Department of Taxation succeeds in approving these administrative changes and further submitting these rule changes to the State Tax Commission, our Attorney believes these new regulations would severely impact and undermine our efforts to argue our grievances to the State Tax Commission and to the District Court.

        Scroll below for our Attorney's letter to the Director of the Department of Taxation, citing the issues that we disagree with. In addition to Norm's letter to the Director he will be attending this workshop to underscore the issues we believe are inconsistent with existing law. In addition, click here for the "draft" revisions of the Administrative Regulations pertaining to NAC 361.00. We have highlighted the sections having an impact on Incline Village and Crystal Bay.

        It is becoming apparent there is great concern in the bureaucracy that our challenge to these illegal methods of appraising properties might have merit and the fear is that we might succeed in discrediting the assessor's methods.

        We need a huge turn out of property owners (two or three hundred) in Incline and Crystal Bay to support Norm and to demonstrate to the Department that our grievances are supported by a large number of IV/CB property owners. Norm will be "driving the truck" during this workshop and he will have designated three or four citizens to make a short statement on each of the issues he will argue. 

        In addition to Norm's presentation we intend to submit copies of our "Declaration of Property Tax Protest" that now contain over 2,000 signatures. 

        We really need your support on this, pleases take the time to make the short to trip to Carson City on Monday afternoon. 

        Regards,

        Ted

        Ted Harris, Tax Revolt Committee Chairman
        The Village League to Save Incline Assets
        Ph:  (775) 831-3914
        Fax: (775) 831-3914
        Em: tedgh at nvbell.net

        DATE AND TIME OF MEETING:
        Monday, August 25, 2003, 1:30 p.m.

        LOCATION:
        Nevada Legislative Building,
        401 S. Carson, Room 2135,
        Carson City, Nevada

------------------------------------------------------------------------

  Norms Letter to Chinnock regarding his points for the Dept. of Taxation workshop on Monday Aug. 25

   August 22, 2003

   Chuck Chinnock, Executive Director

  State of Nevada

  Department of Taxation                                                                                                 Via Facsimile

  1550 E. College Parkway, Suite 115                                                                                     687.5981

  Carson City, NV  89706-7937

  Re: Proposed Regulation LCB File No. R031-03

  Dear Chuck:

  I am writing this letter on behalf of my Incline Village homeowner clients, many of whom are concerned with the potential impact of proposed regulation R031-03.  We understand that there have been many workshops on this proposed regulation; however, during the first workshop process, it is my understanding that their was no representation for individual homeowners. 

   NRS 361.227, when amended in 1981 by SB 69, much of the changes were intended to give homeowners a system of valuation and assessment that was intended to mitigate against large percentage increases in valuation from year to year.  In that regard, the homeowners at Incline Village and Crystal Bay have, during this last reappraisal year, been subjected to increases in value as high as 300%.

  In order to equalize the valuation of commercial properties with residential properties, the Nevada Legislature differentiated the method of valuation for improved land and vacant land. Vacant land is valued at its highest and best use while improved land is valued as to its actual use.  Section 17 of the proposed regulation fails to recognize this statutory difference.  In Incline Village, the determination of Improved Residential Sales constituting a vacant land sale (tear down) upon the subsequent demolition of the improvements is violative of this statutory directive.  In the recent State Board of Equalization hearings, the State Board of Equalization appraisers applied these market value concepts to the valuation of Improved Property without addressing the applications of the tear-down concepts to the determination of taxable value as such is required by NRS 361.227.

  In addition, NRS 361.227(5) defines how a person who is addressing the issue as to whether the Assessor's determination of taxable value has exceeded market can rely on comparable sales "based upon prices actually paid in market transactions."  Section 17 of this regulation does not recognize this statutory limitation.

  -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

  Chuck Chinnock, Executive Director

  August 22, 2003

  Page Two

   Moreover, Section 17 provides an assessor with unlimited authority to select any "nationally recognized" method of valuation.  As such, each assessor will be able to select any method of valuation which will lead to a disparate valuation and assessment of residential property.  As an example, the Assessor had utilized a comparable sales methodology driven almost exclusively by a view classification which resulted in, at best, an error rate of sixty percent (60%) for my clients.  My clients are only 50 in number while 3,200 parcels were valued based upon this assessment methodology.  Would Section 17 of this regulation validate this methodology?  If so, is this an acceptable result to the Nevada Department of Taxation given the constraints imposed by the Nevada Taxpayer Bill of Rights?

  Section 26 of R031-03 allows any person determining taxable value to consider any "nationally recognized valuation technique."  I would understand this to mean any recognized method of determining taxable value and not market value.  Is that correct?  Or, is this section of the regulation equating taxable value to market value?

  Finally, these proposed regulations do not in any way address the following topics:

  1) Time adjustment

  2) Tear-down concept

  3) Classification of property based upon view.

  It was my understanding that before these regulations were returned to the Nevada Tax Commission, that the Incline Village property owners would have the opportunity to bring these issues forward for the Department of Taxation's consideration before re-submission to the Nevada Tax Commission for final approval.  Is that still the procedural posture of this regulatory matter?

  As always, we appreciate the Department of Taxation's consideration in this regard.

  Sincerely,

  NORMAN J. AZEVEDO, ESQ.

  NJA/ra

  cc:        Maryanne Ingemanson (Fax:  831-0325)
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