Property Taxes

• A Resource For Buyers •

Property taxes are paid by most homeowners for the privilege of real estate ownership. Nationally, these taxes average 1.25 percent of the property's current market value. In Nevada, the property tax rate ranges from 0.53 percent to 0.65 percent, which is among the lowest rates in the United States. These annual assessments are collected by the county treasurer's office to help pay for public services.

Tax Deductible.

Property taxes on all real estate, including those levied by state and local governments, even school districts, are fully deductible against income taxes. Consult with a tax professional to maximize these deductions.

Mortgage interest and property taxes are deductible on second homes if you itemize. Consult with your accountant or tax adviser for more information on how to maximize these deductions.

Impound Accounts.

Impound accounts are trust accounts established by lenders to hold money that pays for real estate taxes and homeowners insurance premiums as they are received each month. Mortgage insurance, if applicable, is also held in the impound account. With FHA or VA loans, lenders can require an impound account to pay real estate taxes and insurance premiums. However, many conventional loans do not require impound accounts, and the borrower is solely responsible to manage the insurance premiums and property tax payments.

Determination of Property Value.

An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. A Comparative Market Analysis (CMA) is an informal estimate of market value performed by a real estate professional based on similar sales and property attributes. In the case of property tax calculations, the taxable value is defined as the cash value of the land (the amount the land alone would sell for on the open market), and the replacement cost of all construction minus depreciation of 1.5 percent per year. In Nevada, the assessed value is equal to 35 percent of that taxable value.

Appealing Property Taxes.

Contact your local tax assessor's office to see what procedures to follow to appeal your property tax assessment. You may be able to appeal your assessment informally. However, you will likely have to go through a formal tax-appeal processes, which begins with an appeal filed with the appropriate assessment appeals board.

BC Adobe Realty would love to assist you with the purchase of your Boulder City / Greater Las Vegas Area property. If you have any questions, please reach out to us by email or call (702) 293-1707.