James purchased a home in Henderson, Nevada three years ago. He recently learned that Nevada has a statutory cap on how much his assessed value can increase each year for tax purposes. Under Nevada law, what is the maximum annual increase in assessed value allowed for an existing owner-occupied single-family residence?
Correct Answer
D) 8% per year
Under NRS 361.4723, Nevada caps the annual increase in assessed value for existing residential properties (including owner-occupied single-family homes) at 3% per year. However, the broader statutory cap applicable to all real property under the Nevada tax abatement law (NRS 361.4722 and 361.4723) limits assessed value increases to no more than 3% per year for owner-occupied residences and 8% per year for other real property. For a single-family owner-occupied home, the cap is 3%. Note: Option A (3%) is the correct answer for owner-occupied residences specifically.
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