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<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular color=red
size=6><B><U>PROPERTY OWNERS ALERT # 25</U></B></FONT></P></DIV>
<DIV align=left>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1>Saturday, August 23, 2003</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>TO:
Incline Village/Crystal Bay Property Owners<BR></FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>FROM:
The Village League to Save Incline Assets, Inc.<BR></FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1>SUBJECT: Workshop Department of Taxation</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>Dear
Property Owner,</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1>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. </FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>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.</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1>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, <A
href="http://www.nevadapropertytaxrevolt.org/NAC361.pdf">click here</A>
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.</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>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.</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>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. </FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>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. </FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular color=red
size=-1>We really need your support on this,</FONT><FONT
face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1> pleases take
the time to make the short to trip to Carson City on Monday afternoon.
</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1>Regards,</FONT></P>
<P><FONT face=Arial>Ted</FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular size=-1>Ted
Harris, Tax Revolt Committee Chairman<BR>The Village League to Save
Incline Assets<BR>Ph: (775) 831-3914<BR>Fax: (775) 831-3914<BR>Em:
tedgh@nvbell.net<BR></FONT></P></DIV>
<DIV align=center>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1><B>DATE AND TIME OF MEETING:<BR></B>Monday, August 25, 2003,
1:30 p.m.<BR></FONT></P>
<P><FONT face=Arial,Helvetica,Geneva,Swiss,SunSans-Regular
size=-1><B>LOCATION:<BR></B>Nevada Legislative Building,<BR>401 S.
Carson, Room 2135,<BR>Carson City, Nevada</FONT></P>
<P><FONT face=Arial></FONT> </P>
<P>
<HR>
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<DIV class=Section1>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="COLOR: blue"><FONT
size=3><FONT face="Times New Roman">Norms Letter to Chinnock regarding his
points for the Dept. of Taxation workshop on Monday Aug.
25</FONT></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="COLOR: blue"></SPAN> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
color=#000000><FONT face="Times New Roman"><SPAN
style="mso-tab-count: 1"> </SPAN>August 22, 2003</FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><?xml:namespace prefix = o ns =
"urn:schemas-microsoft-com:office:office" /><o:p><FONT face="Times New Roman"
color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p><FONT
face="Times New Roman" color=#000000 size=3>Chuck Chinnock, Executive
Director</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000 size=3>State of Nevada</FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 2in; TEXT-INDENT: -2in; tab-stops: -1.0in -.5in 0in .5in 1.0in 1.5in 2.0in right 6.5in"><FONT
size=3><FONT color=#000000><FONT face="Times New Roman">Department of
Taxation<SPAN
style="mso-tab-count: 2">
</SPAN><B><I>Via Facsimile</I></B></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; tab-stops: right 6.5in"><FONT
size=3><FONT color=#000000><FONT face="Times New Roman">1550 E. College
Parkway, Suite 115<SPAN
style="mso-tab-count: 1">
</SPAN><B><I><U>687.5981</U></I></B></FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000 size=3>Carson City, NV<SPAN style="mso-spacerun: yes">
</SPAN>89706-7937</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>Re: Proposed Regulation LCB File
No. R031-03</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000 size=3>Dear Chuck:</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>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.<SPAN
style="mso-spacerun: yes"> </SPAN>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. </FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
size=3><FONT color=#000000><FONT face="Times New Roman"><SPAN
style="mso-spacerun: yes"> </SPAN>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.<SPAN
style="mso-spacerun: yes"> </SPAN>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%.</FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>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.<SPAN style="mso-spacerun: yes">
</SPAN>Section 17 of the proposed regulation fails to recognize this statutory
difference.<SPAN style="mso-spacerun: yes"> </SPAN>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.<SPAN style="mso-spacerun: yes">
</SPAN>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.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>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 <B><I><U>prices actually paid in market
transactions</U></I></B>."<SPAN style="mso-spacerun: yes">
</SPAN>Section 17 of this regulation does not recognize this statutory
limitation.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Comic Sans MS">-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------</FONT></o:p></P></DIV><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><BR
style="PAGE-BREAK-BEFORE: auto; mso-break-type: section-break"
clear=all></SPAN>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000 size=3>Chuck Chinnock, Executive Director</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000 size=3>August 22, 2003</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><U><FONT face="Times New Roman"
color=#000000 size=3>Page Two</FONT></U></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
size=3><FONT color=#000000><FONT face="Times New Roman"><SPAN
style="mso-spacerun: yes"> </SPAN>Moreover, Section 17 provides an
assessor with unlimited authority to select any “nationally recognized” method
of valuation.<SPAN style="mso-spacerun: yes"> </SPAN>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.<SPAN
style="mso-spacerun: yes"> </SPAN>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.<SPAN style="mso-spacerun: yes"> </SPAN>My clients
are only 50 in number while 3,200 parcels were valued based upon this
assessment methodology.<SPAN style="mso-spacerun: yes"> </SPAN>Would
Section 17 of this regulation validate this methodology?<SPAN
style="mso-spacerun: yes"> </SPAN>If so, is this an acceptable result to
the Nevada Department of Taxation given the constraints imposed by the Nevada
Taxpayer Bill of Rights?</FONT></FONT></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>Section 26 of R031-03 allows any
person determining taxable value to consider any “nationally recognized
valuation technique.”<SPAN style="mso-spacerun: yes"> </SPAN>I would
understand this to mean any recognized method of determining taxable value and
not market value.<SPAN style="mso-spacerun: yes"> </SPAN>Is that
correct?<SPAN style="mso-spacerun: yes"> </SPAN>Or, is this section of
the regulation equating taxable value to market value?</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>Finally, these proposed
regulations do not in any way address the following topics:</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>1) Time adjustment</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>2) Tear-down concept</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>3) Classification of property
based upon view.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>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.<SPAN
style="mso-spacerun: yes"> </SPAN>Is that still the procedural posture
of this regulatory matter?</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT
face="Times New Roman" color=#000000 size=3>As always, we appreciate the
Department of Taxation's consideration in this regard.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 3in"><FONT
face="Times New Roman" color=#000000 size=3>Sincerely,</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 3in"><FONT
face="Times New Roman" color=#000000 size=3>NORMAN J. AZEVEDO, ESQ.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
color=#000000 size=3>NJA/ra</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT
face="Times New Roman" color=#000000 size=3> </FONT></o:p></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.5in; tab-stops: -1.0in"><FONT
face="Times New Roman" color=#000000 size=3>cc:<SPAN
style="mso-tab-count: 1">
</SPAN>Maryanne Ingemanson (Fax:<SPAN style="mso-spacerun: yes">
</SPAN>831-0325)</FONT></P></BLOCKQUOTE></FONT></BODY></HTML>