Nevada adopted this method in 1981, scrapping the old market approach of appraising property by comparing it with similar parcels that had been recently sold. Professor Keith Schwer said the appraisal method was changed as part of a tax revolt made famous by California's Proposition 13, which restricted increases in property appraisals. Schwer noted that oil embargoes in the early and late 1970s sparked inflation. Consequently, property values shot up, causing property taxes based on market appraisals to mushroom as well. Some of the hardest hit taxpayers were seniors on fixed incomes.
Replacement value tends to move up less rapidly than market price, where there is speculation.
Replacement value possibly slowed the impact of inflation on the tax base, and people found that more acceptable. At the top of the heap, Mirage Resorts and its chairman, Steve Wynn, certainly enjoy a high profile. We have an overriding interest that everyone vote and participate in the debates. Apathy is the only path to problems in the community. He said the gaming conglomerate has no qualms about getting involved in issues affecting its employees.