Sandra is a licensed Nevada real estate salesperson helping a buyer evaluate a commercial investment property in Las Vegas. The buyer asks how Nevada determines the 'taxable value' of improved real property for assessment purposes. Which of the following best describes Nevada's method for determining taxable value of improved real property?
Correct Answer
B) The replacement cost of improvements less depreciation, plus the full cash value of the land
Under NRS 361.227, the taxable value of improved real property in Nevada is determined by the replacement cost of the improvements (structures) less depreciation, plus the full cash value of the land. This cost approach is the primary statutory method used by Nevada county assessors and is unique in that it uses replacement cost (not market value) for improvements. The assessed value is then 35% of this taxable value.
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