AB489 Information

The Nevada State Legislature has passed a law to provide property tax relief. Assembly Bill 489, signed into law on April 6, 2005, provides a partial abatement of taxes by applying a 3% cap on the tax bill of the owner's primary residence and a 8.0% cap on the tax bill of other properties for the 2023-2024 tax roll in Eureka County. The only property that will not be subject to a tax cap will be property that is new to the tax roll this year such as new parcels and/or new construction and parcels with a change of use. 

Beginning in May, our office will be mailing out notices to homeowners in Eureka County, asking that they indicate whether the home is their primary residence or is being rented. If the home is neither a primary residence nor a rental, then a response to the notice is not necessary.

If you indicate your property is a rental in Eureka County, we ask that you indicate whether the rent charged does or does not exceed affordable housing standards for low-income housing. Rental properties that do not exceed the standards will receive a 3% cap on the tax bill and the rental properties that do exceed the standards will receive a 8.0% cap on the tax bill. 

NOTE: THERE ARE EMERGENCY REGULATIONS AND ADDITIONAL LEGISLATION THAT MAY CHANGE SOME OF THE INFORMATION AS IT STANDS NOW. THIS WEB PAGE WILL BE UPDATED AS WE GET NEW INFORMATION.

WHAT IS AB 489?

The Governor signed AB 489 into law on April 6, 2005. This bill provides for a partial abatement of property taxes. The level of abatement is based on the type and use of the property.

• If the property is your primary residence within the State of Nevada, the amount of taxes for the current year cannot increase more than 3% from the previous year's taxes.
• If the property contains rental unit(s) and the rent on all units within the property are at or below the fair market rent for the county in which the dwelling is located, as most recently published by the United States Department of Housing and Urban Development, the amount of taxes for the current year cannot increase by more than 3% from the previous year.
• Most other properties (rental units where the rent exceeds the HUD guidelines, commercial, industrial, vacant land, mixed use, etc.), are subject to an abatement at a higher level which is calculated by comparing the lesser of:

   (A) Eight percent; OR

   (B) Twice the percentage of increase in the Consumer Price Index (All Items) for the immediately preceding calendar year,

For 2023, the result of the above will be 8.0%.

WHO IS ELIGIBLE FOR THE 3% CAP?

All owner occupied homes (including single-family homes, condos, townhouses and manufactured homes) that are used as primary residences, qualify for the 3% tax cap. Also, rental units may be eligible if all the units are rented for equal to or less than the HUD median market rents.

CAN I APPLY FOR OR CHANGE MY CAP OVER THE PHONE?

No, you must sign the post card and, if necessary, the rental questionnaire as the property owner. We can send the documents to you if you call our office at (775) 237-5270 and request them.

DO ALL OWNERS OF A GIVEN PROPERTY HAVE TO SIGN THE POST CARD?

No. Any owner or legally authorized agent may sign the postcard.

WHAT IS CAPPED UNDER ASSEMBLY BILL 489 (AB 489)?

AB 489 provides for a partial abatement of the ad valorem taxes levied in a county. This partial abatement results in a "Tax Cap". The tax cap will limit the increase of your tax bill to 3% for your primary residence within Nevada or rental properties where the rent charged does not exceed the fair market rent for the county in which the dwelling is located, as most recently published by HUD. Most other property will receive a higher "Cap", which, for 2023-2024 will be 8.0% over the previous year's tax bill. It does not limit the increase in assessed value and it also does not affect the tax rate increase for the school bond.

HOW DOES THE TAX CAP AFFECT MY EXEMPTION?

The exemption will be applied to the tax bill after the cap is applied.

IS THE LAND MY MANUFACTURED HOME SITS ON ELIGIBLE FOR THE 3% CAP ON TAXES?

• If you own both the land and the manufactured home, and occupy the manufactured home as your primary residence, you are eligible for the 3% tax cap on the land and manufactured home. This applies even if the manufactured home has not been converted to real property.
• If you own the manufactured home but not the land, the manufactured home is eligible for the 3% tax cap, but not the land.
• If you own the land but not the manufactured home, you would not be eligible for the 3% tax cap.
• If you own the land and the manufactured home but they are a rental, you are eligible for the 3% tax cap only if the rent you are charging is equal to or less than the HUD median market rent.

I OWN A MOBILE OR MANUFACTURED HOME THAT HAS NOT BEEN CONVERTED TO REAL PROPERTY AND I DO NOT OWN THE LAND. DOES MY HOME QUALIFY FOR THE ABATEMENT?

Yes, as long as it is your primary residence OR it is being rented at or below the HUD median market rent.

I OWN A HOUSE WHICH IS OCCUPIED BY A RELATIVE, BUT I DO NOT CHARGE RENT, DOES THIS QUALIFY FOR THE 3% CAP?

Yes, in effect, you are renting it out for $0, so it would apply as a rental being rented under the HUD median rents.

WHAT IF I RENT OUT A ROOM IN MY PRIMARY RESIDENCE?

If you live in the home you own, it is considered your primary residence and therefore qualifies for the 3% tax cap.

I HAVE MULTIPLE PROPERTIES OWNED BY A TRUST THAT THE TRUSTEES LIVE IN. WILL THE 3% TAX CAP APPLY TO THESE PROPERTIES?

Yes, all properties in which a trustee of the trust occupy as their primary residence, would qualify for the 3% tax cap.

WHY DID I RECEIVE MULTIPLE CARDS?

A separate post card was mailed out for every property that you own. For single family residences, sign and return only the PRIMARY RESIDENCE post card for the home you live in. If you rent the single family residence, then sign and return the RENTAL PROPERTY post card, be sure to check the appropriate box on the return post card. You will receive an additional letter for each rental property that you own.

DO I QUALIFY FOR A 3% TAX CAP FOR RENTAL PROPERTY?

Each rental unit on the parcel must be rented for equal to or less than the HUD median market rent. All units must qualify. The Eureka County Assessor's Office will assume that the landlord is not paying for tenant's utilities.

WHAT DOES PRIMARY RESIDENCE MEAN?

• A residence which is designated by the owner as the primary residence of the owner in this State, exclusive of any other residence of the owner in this State;

AND

• Which is not rented, leased or otherwise made available for exclusive occupancy by any person other than the owner of the residence and members of the family of the owner.

WHAT IF I RUN A BUSINESS IN MY PRIMARY RESIDENCE? DOES MY PROPERTY STILL QUALIFY FOR THE 3% TAX CAP?

If your parcel has a land use code of residential, your property would still qualify for the 3% tax cap.

WHAT IF MY PRIMARY RESIDENCE IS ON THE SAME PARCEL AS MY BUSINESS?

Mixed-use parcels are not eligible for the 3% tax cap, but the 8.0% tax cap would apply.

WHAT IF I SELL MY HOME OR PURCHASE A NEW HOME?

The transfer of ownership of property will trigger a new post card to be mailed to the new owner to verify the status. The new post cards will be mailed in May of each year.

I RECEIVED THE 3% TAX CAP, WHY DID MY ASSESSED VALUE GO UP BY MORE THAN 3%?

The 3% tax cap is applied to your tax amount, not the assessed value of your property.

WHY DID MY BILL GO UP BY MORE THAN THE PRESCRIBED CAP FROM LAST YEAR'S BILL?

The following situations could cause an increase of more than the prescribed cap:

• The tax cap abatement only applies to ad valorem taxes, not other fees that are billed and collected on the tax bill such as water district, weed control, rodent control, deferred agricultural amounts, general improvement districts (GID), and delinquent personal property charges.
• An exemption, which was applied to last year's tax bill, was removed for the current year.
• There was a change in use for the property such as a mobile home conversion.
• There was new construction added to the property.
• New voter approved increases were levied, such as the school bond.

WHAT IF MY TAX BILL DID NOT INCREASE BY THE AMOUNT OF THE CORRESPONDING CAP?

Any property where the percentage of tax increase was less than the corresponding cap will only be billed the original increase of the taxes. The tax bill will not automatically be increased by the corresponding cap.

MY REQUEST FOR THE 3% (OR 8.0%) TAX CAP WAS DENIED. HOW DO I APPEAL YOUR DECISION?

The Treasurer's Office has created a form for you to fill out to appeal the decision made on the tax cap applied to your property. You can obtain that form by calling the Treasurer's Office at
(775) 237-5262, writing or coming in to the Treasurer's Office and asking for the AB 489 tax appeal form. The Treasurer has 30 days to respond to your appeal.

WAS MY TAX RATE CAPPED BY AB 489?

No, only the amount of increase on your tax bill was capped.