Nev. Admin. Code § 361.427 — 361.427

NAC 361.427    Stock and debt approach indicator of value. ( NRS 360.090 , 361.320 )
1.  The stock and debt approach proposes a
value for the entire firm, but is generally recognized as a less applicable
methodology for determining the value of taxable property.
2.  The stock and debt indicator is
determined by multiplying either the average monthly, quarterly or annual high
and low market price quotations, when available, for all the securities which
are actively traded in the market place, including common stock, preferred
stock and long-term debt, by the number of shares outstanding at the end of the
year. Computations of the present worth of income flows may be made to
determine values for securities which are not actively traded.
3.  The value of the stock of a holding
company is apportioned among its operating companies according to the ratio of:
(a) Each operating company’s property to the
aggregate property of all of the operating companies, valued at historical cost
and weighted at one-third; and
(b) Each operating company’s net income before
income taxes to the aggregate net income of all of the operating companies,
weighted at two-thirds.
Ê For the
industry group of rail transportation, the direct deduction method to eliminate
nonoperating assets will be used when the information is available and
considered applicable.
4.  To this amount will be added items such
as customer advances for construction which are nontaxable for federal income
tax purposes, current liabilities less dividends declared, the present worth of
leased property over the period of the lease together with any other items
conforming to the theory that if a person were to purchase all the stock and
assume all the outstanding liabilities of a company, the person would have
acquired all the assets which appear on the asset side of the balance sheet
and, therefore, own the company.
5.  From this amount will be deducted the
market value of all exempt or nonoperating property, including, but not limited
to, cash, accounts receivable, notes receivable, miscellaneous investments,
temporary investments, nonoperating properties and other current and accrued
assets and properties not subject to the ad valorem property tax imposed by NRS 361.315 and 361.320 .
(Added to NAC by Tax Comm’n, eff. 9-30-88; A by R085-98,
11-23-98)