Tax cap verification cards late

Douglas County homeowners have not received the verification cards that could reduce their property tax bills and the June 15 deadline for returning them is getting closer.

Issues concerning the recently-legislated 3 percent tax cap have meant delays in mailing, but Douglas County Assessor Doug Sonnemann said he expects to start mailing this week.

"Every little thing that could have slowed the process did," he said. "No one had done this before and there were a few glitches. I think we've overcome the obstacles, but it's been frustrating."

The cards should start showing up Douglas County mailboxes as soon as Friday, Sonnemann said.

He's asking people to send them in as soon as they're received.

"If residents don't get the card in by the June 15 deadline, they could receive a maximum tax increase of 7.3 percent in Douglas County," he said.



Residents who don't meet that June 15 deadline will be billed using the 7.3 percent tax cap. If that happens in error, they should notify the Clerk-Treasurer's office, Sonnemann said.

"People will have an opportunity to get relief," he said. "We'll do everything we can to get them the tax break they're entitled to."

Signed into law April 6, Assembly Bill 489 provides a partial abatement of taxes by applying a 3 percent cap on annual property tax increases for primary residences.

Each year, Nevada county assessors will verify which homes are owner-occupied and which are rentals. The latter will be subject to a higher tax rate, depending on a number of factors, Sonnemann said.

The delay came when questions arose, concerning the details of this legislation. For example, when a home includes a guest house, legislation had not defined if the second house be taxed at the reduced 3 percent rate.

Legislators and the Tax Commission also had questions concerning issues like mother-in-law quarters, or the homeowner who rents the larger home and lives in smaller quarters on the same property, Sonnemann said.

"One assessor could have defined the legislation one way, while another defined it differently," he said.

Each year, Nevada county assessors will verify which homes are owner-occupied and which are rentals. The latter will be subject to a higher tax rate, depending on a number of factors, Sonnemann said.

Agricultural land will be taxed at 7.3 percent rate, but rancher's owner-occupied homes will get the 3 percent tax cap. Commercial, industrial and vacant land will all be taxed at the 7.3 percent rate, these figures based on the average increase in assessed value over the past 10 years in Douglas County, Sonnemann said.

Douglas officials estimated an overall increase of 6 percent in property tax revenues, depending in large part on how may rentals exist in Douglas County, Sonnemann said.

Douglas County is mailing about 20,000 cards at a cost to Douglas County taxpayers of about $20,000.

Statewide, costs are estimated at $750,000 and climbing, Sonnemann said.



Susie Vasquez can be reached at svasquez@recordcourier.com or 782-5121, ext. 211.