NAC361.1234. Contaminated property: Determination of full cash value.

In determining, pursuant to NRS 361.227, the full cash value of property that has been determined by the assessor to be a contaminated site:

     1. The sales comparison approach may be used by comparing verified sales of similarly contaminated sites;

     2. Where applicable, the income approach may be used by utilizing rent, vacancy and expense data derived from a survey of similarly contaminated sites with similarly used improvements; or

     3. Where no sales or rental market exists for similarly contaminated properties:

     (a) The value of the property for a specific use, or a specific user, reflecting the extent to which the property contributes to the utility or profitability of the enterprise of which it is a part may be determined by using the income approach, except that the value so determined must not exceed the full cash value of the property; or

     (b) The present worth of the contaminated site may be determined by:

          (1) Discounting the present worth of the property if it was contaminated by an off-site source or the cost-to-cure is not being borne by the current owner, or both, on the basis of the length of the delay caused by the contamination until the property can be developed to its highest and best use, readily sold or financed on the open market; or

          (2) Using the present cash equivalency which represents the future reversionary value of the contaminated site after it is cleaned up to an extent that it is usable or developable to its highest and best use less the present worth of the yearly costs-to-cure if the current owner is incurring the remedial costs and an accurate forecast of the year-to-year costs to be incurred and the estimated date of the completion of the cleanup are available.

     (Added to NAC by Tax Comm’n, eff. 7-16-92; A by R031-03, 8-4-2004)