Nev. Admin. Code § 361.1198 — 361.1198

NAC 361.1198    Land: Capitalization of ground rents. ( NRS 360.090 , 360.250 ,
361.227 )
1.  A county assessor may use the
capitalization of ground rents to derive the value of land only when there is
sufficient information regarding land rentals or leases which are independent
of improvements, such as, without limitation, a rental of farmland or
commercial land which is leased on a net basis where the lessee is responsible
for property taxes and all other expenses.
2.  When using the capitalization of ground
rents to derive the value of land:
(a) A county assessor must perform that method in
accordance with the provisions of chapter 7 of Property Appraisal and
Assessment Administration , as adopted by reference in NAC 361.1177 .
(b) If a lease:
(1) Has been recently negotiated or is still
representative of current market rents, a county assessor may directly
capitalize the net rent into an indicated land value; or
(2) Is outdated or no longer representative of
current market rents, a county assessor must reject the lease or adjust the
lease to current market conditions using verifiable market data.
(Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff.
7-1-2012)