NAC361.119. Land: Alternate methods to sales comparison approach.

     1. If a county assessor is not able to use the sales comparison approach for land pursuant to NAC 361.11795 or 361.118 because sufficient sales of comparable properties which were vacant at the time of sale are not available, the county assessor shall determine the full cash value of land through any of the following methods, either in combination with available land sales or as the sole method of valuation:

     (a) Abstraction method;

     (b) Land residual technique;

     (c) Capitalization of ground rents;

     (d) Cost of development method;

     (e) Allocation method, if the properties are substantially similar; and

     (f) Regression analysis.

     2. The use of sales of comparable improved properties pursuant to subsection 1 is subject to the provisions of NAC 361.11795 or 361.118, as applicable, NAC 361.1182 to 361.1188, inclusive, and the following:

     (a) Sales of comparable improved properties must be adjusted to remove the full contributory value of all items attributable to the improvements, including, without limitation, direct and indirect costs, soft costs, entrepreneurial profit, and personal property and other nonrealty components of value. The costs may be reported in a lump-sum basis per unit.

     (b) The complete obsolescence of an improvement for purposes of analyzing the sales price of a comparable improved property is best determined when the improvement is demolished or removed, but may be considered when:

          (1) Sufficient evidence demonstrates an intention to demolish or remove the improvement, which evidence may include, without limitation, evidence that:

               (I) A permit has been issued for the demolition of the improvement;

               (II) A disclosure concerning the demolition or removal of the improvement has been filed with the Securities and Exchange Commission;

               (III) An order has been issued for the condemnation of the improvement; or

               (IV) Construction and development financing has been obtained with respect to the comparable property which establishes that the demolition or removal of the improvement is intended; and

          (2) No occupancy or no use is established before the completion of the demolition or removal of the improvement.

     (c) Sales of comparable improved properties may be used in determining valuation regardless of whether the complete obsolescence of an improvement may be determined or considered pursuant to paragraph (b).

     (Added to NAC by Tax Comm’n by R031-03, eff. 8-4-2004; A by R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)