[airics]

Originally Posted by RCCCB

3% TO 8% is about 250% more as a rental compared to owner occupied, isn't it?
Not saying I can't be wrong. :-)

that is not the amount of tax.. that is the amount that it can go up.. it is the cap

[RCCCB]

I was told by my agent that residents are taxed 3% of what ever they measure to tax and was told that they charge 8% of the same number for people investing and renting.

I think that means those not living there and making money with the property pay 250% more than owners living on the property.

I think it is just their way of collecting a form of income tax from those renting their homes out in Nevada.

[airics]

get a new agent!! everybody pays approximately 3% of the assessed value, whether you live in it or rent it out.. the tax cap (meaning it can go upto) is 3% for owner occupied and 8% for investment props (rentals) so if your tax was under the cap and it was $1000 and your property appreciated, it can go up 3% ($30) if you live in it or 8% ($80) if you rent it out.. It does not mean if your house is assessed at $100k, you pay $5000 more in tax if it is a rental.. Capeesh?

[olecapt]

Originally Posted by airics

get a new agent!! everybody pays approximately 3% of the assessed value, whether you live in it or rent it out.. the tax cap (meaning it can go upto) is 3% for owner occupied and 8% for investment props (rentals) so if your tax was under the cap and it was $1000 and your property appreciated, it can go up 3% ($30) if you live in it or 8% ($80) if you rent it out.. It does not mean if your house is assessed at $100k, you pay $5000 more in tax if it is a rental.. Capeesh?

Yup. Arics has it right. It deals only whith maximal rate of tax increase. It does not deal with the maximum tax. And given the existing ecomonic climate in another year or two everybody pays the full tax.

Well maybe not but almost. Some of us old timers may not pay up full for another five years down.

[RCCCB]

I think the agent explained it alright.
You take assessed value times 3% for owner occupied and 8% for investors.
You can have a $125k home with an assessed value of 30k.
3% of 30K would be about $900 bucks a year for the owner occupied and maybe up to $2400 for the investor renting it.
That's kind of how I got the impression the 3 & 8% work.
In the end, the 3% assessment gets close to what we pay for similar homes in California.

We deal in CA with about 1.25% of purchase price a year plus an increase of 2% a year on the previous year's tax.
So I paid off my CA home a decade ago and my basis is 100k. I have about $1200 a year as a tax bill. The house is actually worth on the current market about $550k and a new owner would be paying the outrageous property tax of about $7500 a year.

Owner occupied seems to match California's property tax collections though they go about it with different formulas.
The 8% of assessed value for investors who rent is where I was maybe confused.

[airics]

i give up! then go to the treasurer's site and figure it out! are you really that stubborn? then don't ask questions..

[olecapt]

Originally Posted by RCCCB

I think the agent explained it alright.
You take assessed value times 3% for owner occupied and 8% for investors.
You can have a $125k home with an assessed value of 30k.
3% of 30K would be about $900 bucks a year for the owner occupied and maybe up to $2400 for the investor renting it.
That's kind of how I got the impression the 3 & 8% work.
In the end, the 3% assessment gets close to what we pay for similar homes in California.

We deal in CA with about 1.25% of purchase price a year plus an increase of 2% a year on the previous year's tax.
So I paid off my CA home a decade ago and my basis is 100k. I have about $1200 a year as a tax bill. The house is actually worth on the current market about $550k and a new owner would be paying the outrageous property tax of about $7500 a year.

Owner occupied seems to match California's property tax collections though they go about it with different formulas.
The 8% of assessed value for investors who rent is where I was maybe confused.

No...All homes are assessed the same. And if you buy a new house you will pay the same tax whether owner occupied or not. The tax on a home is roughly 1% of its real value.

If you are an owner occupant however the tax rate increase from one year to the next is limiited to 3%. If not owner occupied it can increase 8%. But either case requires that real value has increased by a suitable amount. That is not happening at the moment.

The maximum tax on a home anywhere in the value is less than 1.25% of the real value. Most places it is less than 1%

Note that NV does not reset like CA There are no large jumps in taxes when property change hands.