NAC361.128. Improvement: Calculation of cost of replacement.

     1. The cost of replacement of an improvement must be calculated:

     (a) Without including any costs attributable to land enhancements; and

     (b) Except as otherwise provided in subsections 2, 3 and 4, using:

          (1) The standards and modifiers of local costs published in the version of the Residential Cost Handbook, Marshall Valuation Service, Residential Estimator software or Commercial Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately preceding the lien date for the current year; or

          (2) With the prior approval of the Executive Director, other computer programs for determining cost which are based on costs published by Marshall & Swift.

     2. Except as otherwise provided in subsections 3 and 4, the cost of replacement of a farm building, a shed or another rustic structure must be calculated using the manual of rural building costs adopted by the Commission if the farm building, shed or other rustic structure:

     (a) Does not conform to any applicable building code adopted by a local governmental entity; or

     (b) Is constructed by a person who does not regularly perform construction work and does not earn a substantial portion of his or her income as a licensed contractor, unless the person acts only as a general contractor and the actual work is performed by a person who regularly performs construction work and earns a substantial portion of his or her income as a licensed contractor.

     3. Except as otherwise provided in subsection 4, the cost of replacement of a farm building, a shed or another rustic structure constructed by a person who regularly performs construction work and earns a substantial portion of his or her income as a licensed contractor must be calculated using:

     (a) The standards and modifiers of local costs published in the version of the Residential Cost Handbook, Marshall Valuation Service, Residential Estimator software or Commercial Estimator software, as appropriate, adopted by reference pursuant to NAC 361.1177 as of January 1 of the year immediately preceding the lien date for the current year; or

     (b) The manual of rural building costs adopted by the Commission, except that the costs therein must be adjusted upward by 33 percent.

     4. If no publication or manual required to be used pursuant to the provisions of this section applies to improvements of a particular occupancy or construction type, the county assessor may apply to the Executive Director for permission to use alternative recognized cost manuals, cost determinations or subscription services. If the Executive Director finds that no publication or manual required to be used pursuant to the provisions of this section applies to such improvements and that the alternative recognized cost manuals, cost determinations or subscription services are suitable, the Executive Director shall, within 30 days after receiving an application pursuant to this subsection, approve the use of the alternative recognized cost manuals, cost determinations or subscription services and notify each county assessor of that approval. The Executive Director shall submit to the Commission annually a list of the alternative recognized cost manuals, cost determinations and subscription services that the Executive Director has approved for use.

     [Tax Comm’n, Property Tax Reg. part No. 2, eff. 1-14-82]—(NAC A 10-10-83; 7-23-84; 1-18-85; 5-16-86; R031-03, 8-4-2004; R166-07, 6-17-2008; R039-10, 8-13-2010, eff. 7-1-2012)