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Monday, October 20, 2014
Assessor

BUSINESS PERSONAL PROPERTY

According to Nevada Revised Statutes, all property that is not defined or taxed as "real estate" or "real property" is considered to be "personal property." Taxable personal property includes manufactured homes, aircraft, and all property used in conjunction with a business. Business personal property is taxable whether it is owned, leased, rented, loaned, or otherwise made available to the business. The taxation of business personal property has been in effect since Nevada became a state in 1864. Nevada Revised Statutes, Chapter 360-361, provide for the taxation of all property, unless specifically exempted by law.

Property that is exempt from taxation includes business inventory held for resale, consumable supplies, livestock, boats, and personal household belongings. The exemption of household goods does not extend to personal property or furnishings rented or leased to another party or rented in conjunction with the rental of a dwelling unit. Motor vehicles required to be registered with the Nevada Department of Motor Vehicles and Public Safety are exempt from the property tax, though subject to a governmental service tax.

All businesses having assets within Clark County must complete and file an annual declaration which lists any personal property that is used in conjunction with the business as of the lien date, which is July 1st. The declaration is normally filed during the month of July each year. If the declaration is received by the business at any other time, it is due within fifteen days of receipt. New businesses should contact the Clark County Assessor at the same time the business license is acquired, or prior to opening the business. Please remember, the responsibility of keeping the Assessor informed of any changes in the business address, location or mailing change, is that of the taxpayer.  

To add a new business or change information regarding an existing business, a declaration is available below to download.  Please complete this form and return it to our office.

Business Personal Property Asset Listing Template  

WHAT IS THE PURPOSE OF THE DECLARATION?  

  

The completed declaration provides most of the information needed to determine the taxable value of the business personal property. All personal property used for the business should be listed completely and accurately. The cost and year of acquisition should be listed on the declaration. The cost is defined as the purchase price of the item, including any applicable shipping and installation charges. The year of purchase or acquisition is needed so that the value of the property can be reduced by any applicable depreciation. The depreciation factors are based on expected life schedules prescribed by the Nevada Tax Commission through the Personal Property Manual.

Nevada State Department of Taxation Personal Property Manuals   
(These manuals define how Personal Property is assessed in Nevada.)

2014-2015 Unsecured Roll Depreciation Schedule   

The North American Industry Classification System (NAICS) is a Federal indexing system for classifying businesses.  The declaration form requests a NAICS code or a brief description of the type of business.  The official 2012 U.S. NAICS Manual includes definitions for each industry, background information, and a comprehensive index that can be retrieved using the website link.

North American Industry Classification System

 

Though the declaration may be completed and returned to the Assessor in July, the personal property tax billing may be calculated and sent any time between the time it is received by the Assessor and the following April 30. The returned declaration will be processed by the appraisal and billing staff as the declaration is received. The appraisal staff may conduct field verifications of any data on the completed declaration. The tax billing becomes delinquent and subject to a penalty 30 days after the first billing date.

In Nevada, property taxes are based on "assessed value." In the case of business personal property tax, a "taxable value" is arrived at by reducing the original or acquisition cost by the applicable depreciation factors that may be found in the schedules which are linked above. Assessed value is computed by multiplying the taxable value by 35%, rounded to the nearest $1.00.

To calculate the tax on your business that does not qualify for the tax abatement, let's assume you have a business with the following equipment in the City of Las Vegas with a tax rate of $3.50 per hundred dollars of assessed value.

To determine the tax see the example below:  

Office furniture was purchased one year ago at a cost of .................. $1,200
The taxable value after depreciation is 1,200 x .87= ..........................$1,044
A computer was purchased year ago at a cost of  ............................ $1,000
The taxable value after depreciation is 1,000 x .33 = ............................ 330
The total taxable value for above equipment is 1044 + 330 = ............. $1,374
The assessed value for the above equipment is 1,374 x .35 =................$ 481
The tax on the equipment would be 481 x. 035 = ............................. $16.84

The tax rates vary by district.  Learn more about the tax abatement.  

Declarations are normally mailed to businesses of record by July 1 of each year. If you do not receive a declaration by July 15, please call our Appraisal Division (702) 455-4997. The main office is located at 500 S Grand Central Pkwy., 2nd Floor, Las Vegas NV 89155.

A step-by-step set of instructions pertaining to the Business Personal Property Declaration can be viewed by downloading the instructions. In order to download the Business Personal Property Declaration Instructions, you must have Adobe Reader installed on your computer.

Business Personal Property Instructions and category list   

Most questions pertaining to the Business Personal Property Declaration can be answered by calling the Appraisal Division at (702) 455-4997. Any of our appraisers will be glad to answer any questions you might have regarding the Business Personal Property Declaration, or schedule a convenient time to meet with you at your place of business. The Assessor's Office staff offers classes instructing business owners on how to complete the Personal Property Declaration. Below is a list of dates and locations of the classes offered.

Tuesday, July 22, 2014
 10:00 a.m.
Clark County Government Center
ODC #3
500 S. Grand Central Pkwy
Las Vegas, NV  89106
 

 Wednesday, July 23, 2014
 10:00 a.m.
Clark County Government Center
Pueblo Room
500 S. Grand Central Pkwy
Las Vegas, NV  89106

 Tuesday, July 29, 2014
2:00 p.m.
Clark County Government Center
Pueblo Room
500 S. Grand Central Pkwy
Las Vegas, NV  89106

Real and Personal Property Appraisers must be certified by the State of Nevada, and are required to maintain the certification through a program of continuing education.