2023 Nevada Revised Statutes › Chapter 361 - Property Tax › NRS 361.233 - Assessment and valuation of real property within common-interest community.

1. Notwithstanding any other provision of law, if a community association provides such information as the county assessor determines to be necessary to identify each community unit in the common-interest community:
(a) Any ad valorem taxes or special assessments assessed upon any real property within a common-interest community:
(1) Must be assessed upon the community units and not upon the common-interest community as a whole; and
(2) Must not be assessed upon any common elements of the common-interest community.
(b) Except as otherwise provided in subsection 2, the taxable value of each parcel:
(1) Composed solely of a community unit must consist of:
(I) The taxable value of that community unit; and
(II) A percentage of the taxable value of all the common elements of that common-interest community which is equal to 1 divided by the total number of community units in that common-interest community; or
(2) Composed of a community unit and any portion of the common elements of the common-interest community must consist of:
(I) The taxable value of that community unit only; and
(II) A percentage of the taxable value of all the common elements of that common-interest community which is equal to 1 divided by the total number of community units in that common-interest community.
2. If a community association does not provide such information as the county assessor determines to be necessary to identify each community unit in the common-interest community, any ad valorem taxes and special assessments upon real property must be assessed upon the common elements of the common-interest community, and the taxable value of the common elements is the sum of the taxable value of all the common elements of that common-interest community.
3. If the declaration for a common-interest community or, in the absence of such a declaration, the recorded deeds for the community units of a common-interest community:
(a) Provide for the allocation to the community units of, except for any minor variations because of rounding, all the interests in the common elements of the common-interest community; or
(b) Do not provide for the allocation described in paragraph (a) but provide for the allocation to the community units of, except for any minor variations because of rounding, all the liabilities for the common expenses of the common-interest community,
and the formula for allocation provided in the declaration or deeds differs from the formula for allocation set forth in sub-subparagraph (II) of subparagraph (1) of paragraph (b) of subsection 1 and sub-subparagraph (II) of subparagraph (2) of paragraph (b) of subsection 1, those sub-subparagraphs do not apply to the common-interest community, and the taxable value of the common elements of the common-interest community must be allocated to the community units in accordance with the formula for allocation provided in the declaration or deeds.
4. The Nevada Tax Commission shall adopt such regulations as it determines to be appropriate to ensure that this section is carried out in a uniform and equal manner that does not result in the double taxation of any common elements of a common-interest community.
5. For the purposes of this section:
(a) "Ad valorem tax" means an ad valorem tax levied by any governmental entity or political subdivision in this State on or after July 1, 2006.
(b) "Common elements" means the physical portion of a common-interest community, including, without limitation, any landscaping, swimming pools, fitness centers, community centers, maintenance and service areas, parking areas, hallways, elevators and mechanical rooms, which is:
(1) Intended for the general benefit of and potential use by all the owners of the community units and their invitees; and
(2) Owned:
(I) By the community association;
(II) By any person on behalf or for the benefit of the owners of the community units; or
(III) Jointly by the owners of the community units.
(c) "Common-interest community" means real property with respect to which a person, by virtue of his or her ownership of a community unit, is obligated to pay for any real property other than that unit. The term includes a common-interest community governed by the provisions of chapter 116 of NRS, a condominium hotel governed by the provisions of chapter 116B of NRS, a condominium project governed by the provisions of chapter 117 of NRS and any time-share project, planned unit development or other real property which is organized as a common-interest community in this State.
(d) "Community association" means an association whose membership:
(1) Consists exclusively of the owners of the community units or their elected or appointed representatives; and
(2) Is a required condition of the ownership of a community unit.
(e) "Community unit" means a physical portion of a common-interest community, other than the common elements, which is:
(1) Designated for separate ownership or occupancy;
(2) Intended for:
(I) Residential use by the owner of that unit and his or her invitees; or
(II) Commercial use by the owner of that unit for the generation of revenue from any persons other than the owners of community units in that common-interest community and their invitees; and
(3) Identified by the community association as a community unit for the purpose of distributing the taxable value of the common elements to the community units pursuant to subsection 1.
(f) "Declaration" means any instrument, however denominated, that creates a common-interest community, including any amendment to an instrument.
(g) "Special assessment" means a special assessment levied by any governmental entity or political subdivision in this State on or after July 1, 2006.
(Added to NRS by 2005, 1231; A 2007, 1883, 2292; 2011, 3519; 2015, 1205)