How are taxes calculated on a new construction home?

Here in Nevada we have a tax abatement program that applies to all residential properties. If you are an owner occupant, the cap on year over year assessments is no more than 3%. If the home is an investment that cap is 8%.

The question we are discussing is about how the assessor calculates the tax on a new construction home. New homes don’t qualify for the abatement and the tax on the property prior to the homes construction was just on the land itself with no improvements.

To calculate the tax on a new home that does not qualify for the tax abatement, let’s assume you have a house with a taxable value of $200,000 located in the City of Las Vegas with a tax rate of $3.50 per hundred dollars of assessed value. To determine the assessed value, multiply tha taxable value of the home ($200,000) by the assessment ratio (35%): $200,000 x .35 = $70,000 assessed value.

To calculate the tax, multiply the assessed value ($70,000) by the tax rate (.35): $70,000 x .035 = $2,450.00 tax for the fiscal year.

If you have questions about a specific property please contact the Treasurers Office at (702) 455-4323.