NAC361.6133. Calculations required after annexation.

     1. Except as otherwise provided in subsections 2 and 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the annexation of a parcel or other taxable unit of real property to a taxing entity, the tax receiver of the county in which that property is located after that annexation shall, when making any calculations pursuant to the provisions of this chapter for the year of annexation of that property and each subsequent fiscal year which require a determination of:

     (a) The entity-adjusted parcel tax rates applicable to the property for the fiscal year immediately preceding the year of annexation:

          (1) Disregard the entity-adjusted parcel tax rate for that prior fiscal year of any taxing entity which, as a result of that annexation, is no longer entitled to levy or require the levy on its behalf of any ad valorem taxes on the property; and

          (2) Include as an entity-adjusted parcel tax rate applicable to that property for that prior fiscal year:

               (I) The ad valorem tax rate for that prior fiscal year of the taxing entity annexing that property; or

               (II) If that taxing entity did not exist in that prior fiscal year, the ad valorem tax rate of that taxing entity for the year of annexation.

     (b) The combined overlapping adjusted tax rate applicable to the property for the fiscal year immediately preceding the year of annexation:

          (1) Exclude from that determination the entity-adjusted parcel tax rate for that prior fiscal year of any taxing entity which, as a result of that annexation, is no longer entitled to levy or require the levy on its behalf of any ad valorem taxes on the property; and

          (2) Include in that determination, as an entity-adjusted parcel tax rate applicable to that property for that prior fiscal year:

               (I) The ad valorem tax rate for that prior fiscal year of the taxing entity annexing that property; or

               (II) If that taxing entity did not exist in that prior fiscal year, the ad valorem tax rate of that taxing entity for the year of annexation.

     2. Except as otherwise provided in subsection 3, for the purposes of carrying out the provisions of NRS 361.4732 with respect to the annexation of a parcel or other taxable unit of real property to a taxing entity, the tax receiver of the county in which that property is located after that annexation shall:

     (a) Calculate the revised tax base for that property as follows:

          (1) Subtract the combined overlapping adjusted tax rate which actually applied to the property for the fiscal year immediately preceding the year of annexation, as determined without regard to the provisions of subsection 1, from the combined overlapping adjusted tax rate applicable to that property for that prior fiscal year, as determined in accordance with the provisions of subsection 1;

          (2) Divide the result obtained pursuant to subparagraph (1) by the combined overlapping adjusted tax rate which actually applied to the property for the fiscal year immediately preceding the year of annexation, as determined without regard to the provisions of subsection 1;

          (3) Multiply the result obtained pursuant to subparagraph (2) by the actual amount of ad valorem taxes applicable to the property for the fiscal year immediately preceding the year of annexation, as determined after the deduction of any partial abatement of taxes that applied to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any tax exemptions that applied to the property for that prior fiscal year; and

          (4) Add the result obtained pursuant to subparagraph (3) to the actual amount of ad valorem taxes applicable to the property for the fiscal year immediately preceding the year of annexation, as determined after the deduction of any partial abatement of taxes that applied to the property for that prior fiscal year pursuant to NRS 361.4722, 361.4723 or 361.4724 and without regard to any tax exemptions that applied to the property for that prior fiscal year.

     (b) Except as otherwise required to carry out the provisions of NRS 361.4729, use the revised tax base for that property, as calculated pursuant to paragraph (a), in lieu of the amount otherwise required to be determined pursuant to paragraph (a) of subsection 1 of NRS 361.4722, paragraph (a) of subsection 2 of NRS 361.4722, paragraph (a) of subsection 1 of NRS 361.4723 or paragraph (a) of subsection 1 of NRS 361.4724 for the purpose of determining the amount of any partial abatement of taxes to which the owner of the property is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the year of annexation.

     3. The provisions of this section must not be applied in any manner that:

     (a) Would provide for the abatement of any increase in ad valorem taxes which, in accordance with NRS 361.4726, subsection 3 of NRS 361.4727 or NRS 361.4728, is exempt from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724; or

     (b) Would not allocate the revenue from any increase in ad valorem taxes described in paragraph (a) to the taxing entity which levies that increase or on behalf of which that increase is levied.

     (Added to NAC by Com. on Local Gov’t Finance by R043-09, 6-30-2010, eff. 7-1-2010)