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Reports that Nevada residents are attempting to find loopholes in second- or rental-home tax caps by claiming multiple primary residences have drawn mixed reactions from local tax cap advocates, real estate agents and the Washoe County Deputy Assessor.
Several cases have been reported in Nevada, especially in Clark County, where homeowners claim more than one primary home, thus keeping the property tax rate capped at 3 percent, avoiding the 8 percent tax rate in Clark County and a 6.9 percent tax rate in Washoe and other Nevada counties.
One person even tried to claim 13 homes as his primary residence in Clark County under Nevada's new 3 percent property tax cap, approved by the Legislature April 6.
Ted Harris, a member of the Village League to Save Incline Assets, a local group that fought to have the tax cap implemented, said people who try to skirt around the law are wrong.
"That's ridiculous. It's not fair to the people abiding by the law," Harris said. "And, I can't believe I'm saying this - it's not fair to the government.
Harris, who attended more than 15 hearings related to the tax issue as a member of the league, said he feels the rate of 6.9 percent for a non-primary residence is fair.
"If you consider what we were paying before, a 30 or 40 percent hike, I think 6.9 is a hell of a deal," Harris said. "I think it's the best thing that's happened to residents tax-wise since I don't know when. People should relax and enjoy it."
Incline Realtor Gordon Miles of Coldwell Banker said he hasn't seen a difference one way or another in the local real estate market since the cap was implemented.
"Part of the appeal for people to move to Nevada is the tax structure, and even before the cap was put into play, people were paying higher property taxes in California," Miles said. "I know that there are corporate clients who maintain a primary home in Nevada for the lower rate, but I wouldn't say anything has really changed since the cap went into effect."
On the other side of the issue, Village League founder Maryanne Ingemanson said the county assessor's office has created uncertainty in trying to implement the cap.
"Frankly, the postcards (mailed to every address to indicate whether the home was the owner's primary residence) sent out by the assessor's office were very confusing," Ingemanson said. "I think if you have people claiming more than one primary residence it's because they're confused; (it's) not intentional."
Another local Realtor, Chris Plastiras of Lakeshore Realty, said the new tax laws will be difficult for the assessor to interpret.
"How are they going to enforce this?" Plastiras asked. "You got people out of the state that may own a home in Washoe County and one in Clark County and claim both as their primary. How do you stop something like that from happening?"
Washoe County Deputy Assessor John Faulkner said he doesn't have the answer.
"I'm sure all the assessors are doing their best and there's a lot to do in a short time," Faulkner said. "The problem is there's no statewide data base and we can't tell very quickly whether a person owns property in two different counties."
Faulkner also said people may claim more than one residence, if that residence is in the person's corporate name.
"It's a very difficult situation and I don't know the answer," Faulkner said. "All we can do is make our best guess."
Several cases have been reported in Nevada, especially in Clark County, where homeowners claim more than one primary home, thus keeping the property tax rate capped at 3 percent, avoiding the 8 percent tax rate in Clark County and a 6.9 percent tax rate in Washoe and other Nevada counties.
One person even tried to claim 13 homes as his primary residence in Clark County under Nevada's new 3 percent property tax cap, approved by the Legislature April 6.
Ted Harris, a member of the Village League to Save Incline Assets, a local group that fought to have the tax cap implemented, said people who try to skirt around the law are wrong.
"That's ridiculous. It's not fair to the people abiding by the law," Harris said. "And, I can't believe I'm saying this - it's not fair to the government.
Harris, who attended more than 15 hearings related to the tax issue as a member of the league, said he feels the rate of 6.9 percent for a non-primary residence is fair.
"If you consider what we were paying before, a 30 or 40 percent hike, I think 6.9 is a hell of a deal," Harris said. "I think it's the best thing that's happened to residents tax-wise since I don't know when. People should relax and enjoy it."
Incline Realtor Gordon Miles of Coldwell Banker said he hasn't seen a difference one way or another in the local real estate market since the cap was implemented.
"Part of the appeal for people to move to Nevada is the tax structure, and even before the cap was put into play, people were paying higher property taxes in California," Miles said. "I know that there are corporate clients who maintain a primary home in Nevada for the lower rate, but I wouldn't say anything has really changed since the cap went into effect."
On the other side of the issue, Village League founder Maryanne Ingemanson said the county assessor's office has created uncertainty in trying to implement the cap.
"Frankly, the postcards (mailed to every address to indicate whether the home was the owner's primary residence) sent out by the assessor's office were very confusing," Ingemanson said. "I think if you have people claiming more than one primary residence it's because they're confused; (it's) not intentional."
Another local Realtor, Chris Plastiras of Lakeshore Realty, said the new tax laws will be difficult for the assessor to interpret.
"How are they going to enforce this?" Plastiras asked. "You got people out of the state that may own a home in Washoe County and one in Clark County and claim both as their primary. How do you stop something like that from happening?"
Washoe County Deputy Assessor John Faulkner said he doesn't have the answer.
"I'm sure all the assessors are doing their best and there's a lot to do in a short time," Faulkner said. "The problem is there's no statewide data base and we can't tell very quickly whether a person owns property in two different counties."
Faulkner also said people may claim more than one residence, if that residence is in the person's corporate name.
"It's a very difficult situation and I don't know the answer," Faulkner said. "All we can do is make our best guess."
