Nev. Rev. Stat. § 361.233 — Assessment and valuation of real property within common-interest community

NRS  361.233    Assessment and valuation of real property within common-interest
community.
1.  Notwithstanding any other provision of
law, if a community association provides such information as the county
assessor determines to be necessary to identify each community unit in the
common-interest community:
(a) Any ad valorem taxes or special assessments
assessed upon any real property within a common-interest community:
(1) Must be assessed upon the community
units and not upon the common-interest community as a whole; and
(2) Must not be assessed upon any common
elements of the common-interest community.
(b) Except as otherwise provided in subsection 2,
the taxable value of each parcel:
(1) Composed solely of a community unit
must consist of:
(I) The taxable value of that
community unit; and
(II) A percentage of the taxable
value of all the common elements of that common-interest community which is
equal to 1 divided by the total number of community units in that
common-interest community; or
(2) Composed of a community unit and any
portion of the common elements of the common-interest community must consist
of:
(I) The taxable value of that
community unit only; and
(II) A percentage of the taxable
value of all the common elements of that common-interest community which is
equal to 1 divided by the total number of community units in that
common-interest community.
2.  If a community association does not
provide such information as the county assessor determines to be necessary to identify
each community unit in the common-interest community, any ad valorem taxes and
special assessments upon real property must be assessed upon the common
elements of the common-interest community, and the taxable value of the common
elements is the sum of the taxable value of all the common elements of that
common-interest community.
3.  If the declaration for a
common-interest community or, in the absence of such a declaration, the
recorded deeds for the community units of a common-interest community:
(a) Provide for the allocation to the community
units of, except for any minor variations because of rounding, all the
interests in the common elements of the common-interest community; or
(b) Do not provide for the allocation described
in paragraph (a) but provide for the allocation to the community units of,
except for any minor variations because of rounding, all the liabilities for
the common expenses of the common-interest community,
Ê and the
formula for allocation provided in the declaration or deeds differs from the
formula for allocation set forth in sub-subparagraph (II) of subparagraph (1)
of paragraph (b) of subsection 1 and sub-subparagraph (II) of subparagraph (2)
of paragraph (b) of subsection 1, those sub-subparagraphs do not apply to the
common-interest community, and the taxable value of the common elements of the
common-interest community must be allocated to the community units in
accordance with the formula for allocation provided in the declaration or
deeds.
4.  The Nevada Tax Commission shall adopt
such regulations as it determines to be appropriate to ensure that this section
is carried out in a uniform and equal manner that does not result in the double
taxation of any common elements of a common-interest community.
5.  For the purposes of this section:
(a) “Ad valorem tax” means an ad valorem tax
levied by any governmental entity or political subdivision in this State on or
after July 1, 2006.
(b) “Common elements” means the physical portion
of a common-interest community, including, without limitation, any landscaping,
swimming pools, fitness centers, community centers, maintenance and service
areas, parking areas, hallways, elevators and mechanical rooms, which is:
(1) Intended for the general benefit of
and potential use by all the owners of the community units and their invitees;
and
(2) Owned:
(I) By the community association;
(II) By any person on behalf or for
the benefit of the owners of the community units; or
(III) Jointly by the owners of the
community units.
(c) “Common-interest community” means real
property with respect to which a person, by virtue of his or her ownership of a
community unit, is obligated to pay for any real property other than that unit.
The term includes a common-interest community governed by the provisions of chapter 116 of NRS, a condominium hotel governed
by the provisions of chapter 116B of NRS, a
condominium project governed by the provisions of chapter
117 of NRS and any time-share project, planned unit development or other
real property which is organized as a common-interest community in this State.
(d) “Community association” means an association
whose membership:
(1) Consists exclusively of the owners of
the community units or their elected or appointed representatives; and
(2) Is a required condition of the
ownership of a community unit.
(e) “Community unit” means a physical portion of
a common-interest community, other than the common elements, which is:
(1) Designated for separate ownership or
occupancy;
(2) Intended for:
(I) Residential use by the owner of
that unit and his or her invitees; or
(II) Commercial use by the owner of
that unit for the generation of revenue from any persons other than the owners
of community units in that common-interest community and their invitees; and
(3) Identified by the community
association as a community unit for the purpose of distributing the taxable
value of the common elements to the community units pursuant to subsection 1.
(f) “Declaration” means any instrument, however
denominated, that creates a common-interest community, including any amendment
to an instrument.
(g) “Special assessment” means a special
assessment levied by any governmental entity or political subdivision in this
State on or after July 1, 2006.