NAC361.781. Calculation of deductions from amounts taxing entities otherwise entitled to receive.

     1. Except as otherwise provided in subsection 2 or required to carry out the provisions of NRS 361.4732:

     (a) On or before August 1 of each fiscal year, the tax receiver of each county shall determine for each parcel or other taxable unit of property located in that county, other than any property to which paragraph (b) applies, for which the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year, the amount which equals the lesser of:

          (1) 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 current fiscal year; or

          (2) The product of the assessed value of the property for the current fiscal year and the difference between:

               (I) The combined overlapping tax rate applicable to the property for the current fiscal year; and

               (II) The combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year.

     (b) On or before August 1 of each fiscal year, the Department shall determine for each parcel or other taxable unit of property which is valued pursuant to NRS 361.320 or 361.323 and for which the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year, the amount which equals the lesser of:

          (1) 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 current fiscal year; or

          (2) The product of the assessed value of the property for the current fiscal year and the difference between:

               (I) The combined overlapping tax rate applicable to the property for the current fiscal year; and

               (II) The combined overlapping adjusted tax rate applicable to the property for the immediately preceding fiscal year.

     (c) That portion of the amount of any reduction in the ad valorem taxes levied on any parcel or other taxable unit of property as a result of the application of NRS 361.4722, 361.4723 and 361.4724 which is determined pursuant to paragraph (a) or (b) must be deducted from the amount of ad valorem taxes that would otherwise be distributed to the taxing entities whose entity parcel tax rate increase is greater than zero in proportion to their respective entity parcel tax rate increases.

     (d) Each calculation required pursuant to this section must be:

          (1) Calculated separately for each parcel or other taxable unit of property; and

          (2) Recalculated for each fiscal year.

     2. 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 who levies that increase or on behalf of whom that increase is levied.

     3. As used in this section, “property” means property which is located outside of any redevelopment area or tax increment area.

     (Added to NAC by Com. on Local Gov’t Finance by R023-08, eff. 4-17-2008)