Nev. Admin. Code § 361A.180 — 361A.180

NAC 361A.180    Annual study of value of lands designated for agricultural use. ( NRS 360.090 , 360.250 ,
361A.140 )
1.  On
or before the first Monday in October of each year, the Department shall
conduct a study of the value of lands designated for agricultural use and
present the study for approval by the Commission. The Commission will
incorporate the results of the study so approved into the bulletin prepared
pursuant to NRS 361A.140 for
use by county assessors.
2.  The study conducted by the Department
must, in accordance with NRS 361.325 ,
be based on the productivity of the land. Productive capability of land may be
determined by the classification of land and application of a capitalized
earnings approach as follows:
(a) For cultivated and native meadow or wild hay
lands:
(1) Agricultural income for lands designated
as cultivated may be projected by developing estimates of gross income based on
average commodity prices. Sources of commodity prices of agricultural products
which the Department may use include, without limitation, the Nevada
Agricultural Statistics Service and a survey of growers and local buyers.
(2) A net operating income must be determined
by subtracting an estimated allocation for expenses from the gross income.
Expenses for lands must be appropriate to the type of land being valued and may
include the typical costs for water and the maintenance of irrigation systems,
and loss in production due to necessary management practices, such as loss in
production during the seed year or the first year of the hay stand. The
expenses subtracted from the gross income results in a net operating income.
(3) A 5-year weighted average of net operating
income may be capitalized into an indication of the value of the land per acre
by multiplying the yield per acre, measured in tons per acre, by the net income
per ton and then dividing the result by the capitalization rate. The result
must be multiplied by the level of assessment to obtain an assessed value per
acre.
(b) For pasture and grazing lands:
(1) Agricultural income for lands designated
as pasture may be projected by developing estimates of gross income based on
the carrying capacity of the land as measured by rentals per animal unit months
per acre. Sources of rental prices for pasture and grazing lands which the
Department may use include, without limitation, the Nevada Agricultural
Statistics Service and a survey of growers and local buyers.
(2) A net operating income must be determined
by subtracting an estimated allocation for expenses from the gross rent per
animal unit month. Expenses for lands must be appropriate to the type of land
being valued and may include typical miscellaneous costs, including costs for
management, insurance, stock water and maintenance of fences. The expenses
subtracted from the gross income results in a net operating income to land.
(3) A 5-year weighted average of net operating
income must be capitalized into an indication of land value per acre by
multiplying the net income per acre and then dividing the result by the
capitalization rate. The result must be multiplied by the level of assessment
to obtain an assessed value per acre.
3.  As used in this section, “carrying
capacity” means the measure of the capacity of grazing land to provide adequate
forage to sustain livestock for a given period.
(Added to NAC by Tax Comm’n by R030-03, eff. 12-4-2003)
Conversion
to Higher Use