NAC361.1127. “Fixture” defined.

“Fixture” means an item, other than a trade fixture, that was originally personal property which has been installed or attached to land or an improvement in a permanent manner. As used in this section, “installed or attached to land or an improvement in a permanent manner” means that:

     1. Either:

     (a) An item is attached to, imbedded in or permanently resting upon land or an improvement, or is attached by other means that are normally used for permanent installation, and cannot be removed without substantially damaging the item or the land or improvement with which it is being used; or

     (b) The use or purpose of an item that is not otherwise physically annexed to land or an improvement is so adapted that it is:

          (1) A necessary, integral or working part of the land or improvement;

          (2) Designed or committed for use with the land or improvement; or

          (3) So essential to the land or improvement that the land or improvement cannot perform its desired function without the nonattached item; and

     2. A reasonable person would consider the item to be a permanent part of the land or improvement, taking into account annexation, adaptation and other objective manifestations of permanence, including, without limitation, whether:

     (a) Removal of the item would destroy the item or cause significant damage to the real property to which it is installed or attached;

     (b) The historic use of the item indicates an intention to leave the item in place;

     (c) The terms of a written agreement between parties indicates the intention of a tenant or lessee to remove or transfer ownership of the item; or

     (d) Ownership of the item would be conveyed with a transfer of the real property to which it is installed or attached.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012; A by R068-12, 9-14-2012)