Proposes to amend the Nevada Constitution to revise certain provisions relating to property taxes. (BDR C-185)

(Reprinted with amendments adopted on April 18, 2025)
FIRST REPRINT A.J.R. 1

- *AJR1_R1*

ASSEMBLY JOINT RESOLUTION NO. 1–ASSEMBLYMEMBERS
ANDERSON; AND CONSIDINE

PREFILED JANUARY 22, 2025
____________

JOINT SPONSOR: SENATOR NEAL
____________

Referred to Committee on Revenue

SUMMARY—Proposes to amend the Nevada Constitution to revise
certain provisions relating to property taxes.
(BDR C-185)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

ASSEMBLY JOINT RESOLUTION—Proposing to amend the
Nevada Constitution to revise provisions relating to the
assessment and taxation of real property which is sold or
transferred.
Legislative Counsel’s Digest:
The Nevada Constitution requires the Legislature to provide by law for a 1
uniform and equal rate of assessment and taxation of property. (Nev. Const. Art. 2
10, § 1) 3
Under existing law, for the purpose of determining the amount of property tax 4
owed by the owner of a parcel of real property, the taxable value of the real 5
property is equal to the value of the land plus the replacement cost of the 6
improvements less all applicable depreciation and obsolescence. Depreciatio n of an 7
improvement is calculated at 1.5 percent for each year of adjusted actual age, up to 8
a maximum of 50 years. (NRS 361.227) Existing law also provides for a partial 9
abatement of property taxes, which has the effect of establishing an annual cap on 10
increases in property taxes. (NRS 361.4722, 361.4723, 361.4724) This resolution 11
proposes to amend the Nevada Constitution to provide that: (1) for the first fiscal 12
year after real property is sold or transferred, the real property is ineligible for any 13
adjustment to the value of improvements on the real property which is based on the 14
age of the improvement and certain partial abatements; and (2) for any fiscal year 15
thereafter, any adjustment to the value of improvements on the real property which 16
is based on the age of the improvements must be determined as if the improvements 17
were new improvements on the date of the sale or transfer. 18

– 2 –

- *AJR1_R1*
RESOLVED BY THE ASSEMBLY AND SENATE OF THE STATE OF 1
NEVADA, JOINTLY, That Section 1 of Article 10 of the Nevada 2
Constitution be amended to read as follows: 3
Section 1. 1. The Legislature shall provide by law for 4
a uniform and equal rate of assessment and taxation, and shall 5
prescribe such regulations as shall secure a just valuation for 6
taxation of all property, real, personal and possessory, except 7
mines and mining claims, which shall be assessed and taxed 8
only as provided in Section 5 of this Article. 9
2. Shares of stock, bonds, mortgages, notes, bank 10
deposits, book accounts and credits, and securities and choses 11
in action of like character are deemed to represent interest in 12
property al ready assessed and taxed, either in Nevada or 13
elsewhere, and shall be exempt. 14
3. The Legislature may constitute agricultural and open -15
space real property having a greater value for another use 16
than that for which it is being used, as a separate class for 17
taxation purposes and may provide a separate uniform plan 18
for appraisal and valuation of such property for assessment 19
purposes. If such plan is provided, the Legislature shall also 20
provide for retroactive assessment for a period of not less 21
than 7 years when agricultural and open-space real property is 22
converted to a higher use conforming to the use for which 23
other nearby property is used. 24
4. Personal property which is moving in interstate 25
commerce through or over the territory of the State of 26
Nevada, or which was consigned to a warehouse, public or 27
private, within the State of Nevada from outside the State of 28
Nevada for storage in transit to a final destination outside the 29
State of Nevada, whether specified when transportation 30
begins or afterward, shall be deemed to have acquired no 31
situs in Nevada for purposes of taxation and shall be exempt 32
from taxation. Such property shall not be deprived of such 33
exemption because while in the warehouse the property is 34
assembled, bound, joined, processed, disassembled , divided, 35
cut, broken in bulk, relabeled or repackaged. 36
5. The Legislature may exempt motor vehicles from the 37
provisions of the tax required by this Section, and in lieu 38
thereof, if such exemption is granted, shall provide for a 39
uniform and equal rate o f assessment and taxation of motor 40
vehicles, which rate shall not exceed five cents on one dollar 41
of assessed valuation. 42
6. The Legislature shall provide by law for a progressive 43
reduction in the tax upon business inventories by 20 percent 44
in each year f ollowing the adoption of this provision, and 45

– 3 –

- *AJR1_R1*
after the expiration of the 4th year such inventories are 1
exempt from taxation. The Legislature may exempt any other 2
personal property, including livestock. 3
7. No inheritance tax shall ever be levied. 4
8. The Legislature may exempt by law property used for 5
municipal, educational, literary, scientific or other charitable 6
purposes, or to encourage the conservation of energy or the 7
substitution of other sources for fossil sources of energy. 8
9. No income tax sha ll be levied upon the wages or 9
personal income of natural persons. Notwithstanding the 10
foregoing provision, and except as otherwise provided in 11
subsection 1 of this Section, taxes may be levied upon the 12
income or revenue of any business in whatever form it may 13
be conducted for profit in the State. 14
10. The Legislature may provide by law for an 15
abatement of the tax upon or an exemption of part of the 16
assessed value of a single -family residence occupied by the 17
owner to the extent necessary to avoid severe ec onomic 18
hardship to the owner of the residence. 19
11. For purposes of assessment and taxation of 20
property: 21
(a) Except as otherwise provided in this paragraph, for 22
the first fiscal year after the sale or transfer of real property, 23
the real property sold or transferred shall not be eligible for 24
any adjustment provided by the Legislature by law based on 25
the age of improvements to the real property, any abatement 26
of the tax upon the real property provided by the Legislature 27
by law pursuant to subsection 8 or an y abatement or 28
exemption provided by the Legislature by law pursuant to 29
subsection 10. The provisions of this paragraph do not apply 30
to real property for which the Legislature has provided by 31
law for an exemption of the tax on property. 32
(b) For any fiscal year following the first fiscal year 33
after the sale or transfer of real property to which the 34
provisions of paragraph (a) apply, any adjustment provided 35
by the Legislature by law based on the age of improvements 36
to the real property must be determined as if the 37
improvements were new improvements on the date of the 38
sale or transfer. 39
(c) The Legislature shall provide by law for definitions 40
of the terms “sale” and “transfer” as necessary to carry out 41
the provisions of this subsection. 42

– 4 –

- *AJR1_R1*
And be it further 1
RESOLVED, That this resolution becomes effective upon 2
passage. 3

H