reglab/statecodes huggingface dataset:
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.268 - "Discount rate" defined

Current through June 11,
				2024
"Discount rate" means the annual percentage rate used to
				  select present worth factors. The discount rate is one form of capitalization
				  rate. A discount rate can be derived in two ways:
1. By use of the band-of-investment method;
				or
2. From sales data using the
				discounted cash flow rate of return method.
The discounted cash flow rate of return method consists of
				  finding the annual rate at which future income must be discounted so that the
				  total present worth equals the proposed investment in the sale price of a
				  property. The present worth of a given year's income automatically provides for
				  recapture of capital. The difference between the income itself and its present
				  worth provides for the return (yield) on the capital. The term "discount
				  factor" is sometimes erroneously used instead of "discount rate." Actually, the
				  factors used in discounting are present worth factors.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.270 - "Earnings-price ratio" defined

Current through June 11,
				2024
"Earnings-price ratio" means the ratio of earnings per share
				  available to common stockholders of a specific company for an accounting period
				  to the market price per share of the common stock of that company. See NAC
				  361.358.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.272 - "Economic life" defined

Current through June 11,
				2024
"Economic life" means the useful life of a property in
				  contrast to its physical life which could be greater.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.274 - "Economic rent" defined

Current through June 11,
				2024
"Economic rent" means the rent currently and typically found
				  in the open market.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.276 - "Effective rate of interest" defined

Current through June 11,
				2024
"Effective rate of interest" means the total cost to a
				  company for borrowing money divided by the face value of the money. The
				  interest expense plus the cost of floating the debt or compensatory bank
				  balance are included in calculating the total cost.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.278 - "Equity" defined

Current through June 11,
				2024
"Equity" means the owners' interest in the business. In
				  monetary terms, it is the amount of money the owners have invested in common
				  and preferred stock plus earnings of the business that have not been paid out
				  as dividends.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.280 - "Expense" defined

Current through June 11,
				2024
"Expense" means the gross number of dollars paid for
				  materials or services.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.282 - "Fair market value" defined

Current through June 11,
				2024
"Fair market value" means the highest price estimated in
				  terms of money which a property will bring if exposed for sale in the open
				  market allowing a reasonable time to find a purchaser who buys with full
				  knowledge of all the uses to which it is adapted and for which it is capable of
				  being used.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.284 - "Fair return" defined

Current through June 11,
				2024
"Fair return" means an amount of income authorized by a
				  regulatory agency which is considered sufficient for a utility to attract
				  necessary additional capital while at the same time rendering adequate
				  service.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.285 - "Final reconciliation" defined

Current through June 11,
				2024
"Final reconciliation" means the application of the process
				  of evaluating alternative conclusions and selecting from the indications of
				  value derived from each of the approaches used in the appraisal process to
				  arrive at a final estimate of value.
Added to NAC by Tax
				  Comm'n, eff. 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.286 - "Fixed expenses" defined

Current through June 11,
				2024
"Fixed expenses" means those expenses of a business
				  enterprise which do not vary in relation to changes in volume of output such as
				  interest on borrowed funds, insurance or general overhead expenses.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.288 - "Flow-through accounting" defined

Current through June 11,
				2024
"Flow-through accounting" means the practice of charging to
				  the current period only those expenses incurred during the period. A common
				  example is the lesser income tax expense in a given period, due to the use of
				  accelerated depreciation methods or guideline lives in contrast to
				  straight-line depreciation or normal service lives, which would benefit the
				  consumer in the form of lower cost of service if prescribed by the regulatory
				  agency. See NAC 361.342.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.290 - "Form P report" defined

Current through June 11,
				2024
"Form P report" means the annual report of an operation filed
				  by a common carrier pipeline with the Surface Transportation Board.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.292 - "Form 2 report" defined

Current through June 11,
				2024
"Form 2 report" means the annual report of an operation filed
				  by an interstate natural gas and electric transmission company with the Federal
				  Power Commission.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.294 - "Form 10-K report" defined

Current through June 11,
				2024
"Form 10-K report" means an annual report to the Securities
				  and Exchange Commission in Washington, D.C., concerning corporate
				  operations.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.296 - "Forms R-1 and R-2" defined

Current through June 11,
				2024
"Forms R-1 and R-2" means the annual reports of business
				  operation filed with the Surface Transportation Board by Class I railroads
				  (operating revenues of $5,000,000 or more) and Class II railroads (operating
				  revenues less than $5,000,000) respectively.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.298 - "Fractional appraisal" defined

Current through June 11,
				2024
"Fractional appraisal" means the valuation of one or more
				  component parts without reference to the value of the whole enterprise. The sum
				  of two or more fractional appraisals is called a summation appraisal and does
				  not always equal unit value.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.300 - "Full cash value" defined

Current through June 11,
				2024
"Full cash value" means the amount at which the property
				  would be appraised if taken in payment of a just debt due from a solvent
				  debtor.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.302 - "Functional depreciation" defined

Current through June 11,
				2024
"Functional depreciation" means the loss of service
				  usefulness or obsolescence due to technological advances or social
				  requirements.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.304 - "Generally accepted accounting principles" defined

Current
				through June 11, 2024
"Generally accepted accounting principles" means those
				  procedures adopted and endorsed by the financial accounting standards board to
				  which auditors certify when filing an audit report.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.306 - "Gross addition" defined

Current through June 11,
				2024
"Gross addition" means new property added to an existing
				  plant or an improvement in the form of a betterment added to existing property
				  and is usually reported in a dollar amount.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.308 - "Gross income" defined; synonymous with "gross earnings

Current
				through June 11, 2024
"Gross income" means the total amount of income received by a
				  natural person before any deductions are taken. The term is synonymous with the
				  term "gross earnings."
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.310 - "Historical cost" defined; synonymous with "original cost

Current
				through June 11, 2024
"Historical cost" means the first cost of a property item of
				  a public utility regardless of the present owner or interim sales transactions.
				  It usually refers, in the accounting of public utilities, to the cost of a
				  property item when first devoted to public service. For other than the
				  accounting of public utilities, the term means the cost to the owner at the
				  time of acquisition. The term is synonymous with the term "original cost" in
				  public utility accounting.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.312 - "Imbedded debt cost" defined

Current through June 11,
				2024
"Imbedded debt cost" means the average rate of interest that
				  a company pays for its long-term debt. Basically, it is the amount of the total
				  interest paid on long-term debt during the year divided by the face value of
				  the long-term debt outstanding at the end of the year.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.314 - "Inch equivalent" defined

Current through June 11,
				2024
"Inch equivalent" means the miles of various sizes of a
				  pipeline converted into an equivalent mileage of 1-inch pipeline. For example,
				  1 mile of 36-inch pipe is equivalent to 36 miles of 1-inch pipe.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.316 - "Income" defined

Current through June 11,
				2024
"Income" means money or other benefits stemming from the
				  ownership of property, generally received on a regular monthly or annual basis.
				  The word "income" used alone has no specific appraisal significance, but must
				  be modified to form terms such as gross income and net operating income.
				  Revenue is the preferred measure for business and income is the preferred
				  measure of the salaries of persons.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.318 - "Income approach to value" defined

Current through June 11,
				2024
"Income approach to value" means the method of appraisement
				  that involves the analysis of the incomes and expenses of income-producing
				  properties and the use of the capitalization of income to produce property
				  value indicators.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.320 - "Indicator of value" defined

Current through June 11,
				2024
"Indicator of value" means a conclusion of the worth,
				  expressed in dollars, of a specifically identified item of property (be it a
				  single parcel of land or piece of equipment or an extensive corporate
				  conglomerate) based upon consideration of particular characteristics or
				  attributes of that property. Among the most common indicators of value are
				  those based upon cost, income and comparable sales.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.322 - "Interest rate" defined

Current through June 11,
				2024
"Interest rate" means a promised, typically contractual
				  annual percentage rate of interest paid on a debt such as a mortgage note or a
				  contract. Interest is the cost of borrowing money.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.324 - "Interperiod allocation" defined

Current through June 11,
				2024
"Interperiod allocation" means an assignment of expenses to a
				  certain period rather than to the period in which the expenses occurred. Income
				  tax expense is so handled in normalization accounting.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.326 - "Investment tax credit" defined

Current through June 11,
				2024
"Investment tax credit" means a federal income tax incentive
				  intended to encourage capital investment. It is a permanent forgiveness of
				  income tax liability through the direct reduction of tax liability for the year
				  in which it is utilized. The amount of tax credit has varied, but it is a
				  percentage of the investment in the qualified plant, with limits for the amount
				  of tax reduction including carry-back or carry-forward features. The investment
				  tax credit was repealed for property placed in service after December 31,
				  1985.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.328 - "Inwood factor or method" defined

Current through June 11,
				2024
"Inwood factor or method" means a factor or method used to
				  determine the present value of future earnings. Those earnings are capitalized
				  by using the same risk rate for both the return on and the return of the
				  investment.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.330 - "Liberalized depreciation" defined

Current through June 11,
				2024
"Liberalized depreciation" means the use of rates of
				  depreciation on property for income tax purposes that amortizes the investment
				  over a shorter time period than its actual useful life. See revenue proceedings
				  72-10 IRS.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.332 - "Load factor" defined

Current through June 11,
				2024
"Load factor" means the ratio of the average use, during a
				  specified time interval, to the peak use during the same time interval. It may
				  be calculated on a daily, weekly, monthly or an annual basis.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.334 - "Main track" defined

Current through June 11,
				2024
"Main track" means the lines or routes of a railroad, whether
				  on the main line or a branch line, as distinguished from yard track, side track
				  or passing track.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.336 - "Market value" defined

Current through June 11,
				2024
"Market value" means the amount in dollars for which a
				  specific item of property could be sold by a willing seller and be bought by a
				  willing buyer, assuming an arm's length transaction and reasonable exposure to
				  the market.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.338 - "Net additions" defined

Current through June 11,
				2024
"Net additions" means the gross additions less the
				  retirements and is usually reported in amounts of dollars.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.340 - "Net operating income" defined

Current through June 11,
				2024
"Net operating income" means the excess of the revenues of a
				  business enterprise over the expenses of the enterprise, excluding the income
				  from sources other than its regular activities, but before the deduction of
				  debt interest or recapture of capital. In property tax appraisal, the net
				  operating income is at a level that also includes the sum to be paid for
				  property taxes.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.342 - "Normalization accounting" defined

Current through June 11,
				2024
"Normalization accounting" means the practice of charging to
				  the current period those expenses related to the current period rather than to
				  the period in which they are actually incurred. A common example is the
				  computation and assignment of income tax expense to a period based on a
				  straight-line depreciation method rather than on an accelerated depreciation
				  method actually used. The income tax expense computation may or may not have
				  included the additional variable of normal lives versus allowable guideline
				  lives. See NAC 361.288.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.344 - "Obsolescence" defined

Current through June 11,
				2024
"Obsolescence" means the lessening of value due to causes
				  other than physical causes and may be functional where circumstances internal
				  to the property item render it less desirable or economic where circumstances
				  external to the item and beyond the control of the owner render the property
				  item less desirable.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.346 - "Operating expenses" defined

Current through June 11,
				2024
"Operating expenses" means the direct expenses incurred in
				  conducting the ordinary major activities of an enterprise, usually excluding
				  nonoperating expenses and income deductions.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.348 - "Operating revenue" defined; synonymous with "net revenue

Current through June 11, 2024
"Operating revenue" means the revenue from the operations of
				  the primary business of an enterprise, such as the electric revenues of an
				  electric utility, which is gross sales of goods and services, less returns,
				  allowances and cash discounts, together with gross amounts received from any
				  other regular income source. The term is synonymous with the term "net revenue"
				  from sales of services.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.350 - "Original cost" defined

Current through June 11,
				2024
"Original cost" means the cost of a property item to the
				  present owner. At times, it is used as an equivalent to the historical
				  cost.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.352 - "Possessory interest" defined

Current through June 11,
				2024
"Possessory interest" means a type of ownership or partial
				  ownership of the total fee. In financial terminology it is the portion of the
				  equity in a business enterprise which is expressed in terms of dollars
				  invested. In valuation it is frequently encountered where government property
				  is rented or leased to a taxable occupant.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.354 - "Prepayments for gas" defined

Current through June 11,
				2024
"Prepayments for gas" means payments made for gas which will
				  be delivered in less than 1 year.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.356 - "Present worth" defined; synonymous with "present value

Current through June 11, 2024
"Present worth" means the value today of something to be
				  received in the future. It is usually calculated by a discounting process that
				  takes into consideration the time and interest concept of the worth of the
				  money. The term is synonymous with the term "present value."
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.358 - "Price-earnings ratio" defined

Current through June 11,
				2024
"Price-earnings ratio" means the ratio of the market price
				  per share of the common stock of a specific company to the earnings per share
				  of common stock of that company during a 12-month period. Typically, the ratio
				  is based upon the current market price and the most recent 12-month period for
				  which the earnings are known.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.360 - "Rate base" defined

Current through June 11,
				2024
"Rate base" means the amount in dollars established by a
				  regulatory agency upon which a return is allowed.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.362 - "Rate of capitalization" defined

Current through June 11,
				2024
"Rate of capitalization" means the ratio of income to value.
				  Such a rate can vary widely in quality depending upon the elements that are
				  included such as interest, recapture, ad valorem taxes and income taxes.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.364 - "Rate of performance" defined

Current through June 11,
				2024
"Rate of performance" means the actual income earned compared
				  to an investment in contrast to a rate of return allowed or permitted but not
				  necessarily accomplished.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.366 - "Rate of return" defined

Current through June 11,
				2024
"Rate of return" is a general term that means:
1. The yield to an investor variously on the
				investor's net investment or on the property value; or
2. The ratio of either the net operating
				income or the before-tax cash flow to either the total property value or the
				initial investment or the average investment during a given period.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.368 - "Recapture" defined

Current through June 11,
				2024
"Recapture" means the recovery of a capital investment. More
				  specifically, it is the portion of the net operating income or the cash flow
				  that provides for the periodic repayment of invested capital. Recapture may
				  also be achieved, wholly or in part, through the resale of the property. The
				  words depreciation and amortization are sometimes used as synonyms for
				  recapture. However, depreciation is also both an accounting term and a word
				  that means a loss from original value and amortization is commonly used to
				  signify debt retirement. Recapture does not have these multiple meanings and is
				  more desirable for use in income appraisal.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.370 - "Remaining economic life" defined

Current through June 11,
				2024
"Remaining economic life" means the difference between the
				  economic life and the present effective age of an income producing
				  property.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.372 - "Replacement cost" defined

Current through June 11,
				2024
"Replacement cost" means the cost of acquiring or
				  constructing, at current prices, a property which is the functional equivalent
				  of an existing property.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.374 - "Reproduction cost" defined

Current through June 11,
				2024
"Reproduction cost" means the cost of acquiring or
				  constructing, at current prices, a property identical to an existing
				  property.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.376 - "Reserve life" defined

Current through June 11,
				2024
"Reserve life" means an estimated number of years that the
				  gas reserves of a natural gas transmission company will last. For example, the
				  remaining life of a natural gas transmission company would be the estimated
				  number of years a company can deliver gas at a given annual volume of gas
				  divided by the total gas reserves.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.378 - "Retirement depreciation" defined

Current through June 11,
				2024
"Retirement depreciation" means a method of accounting for
				  the total depreciation expense at the date of retirement rather than by
				  systematic additions to a depreciation reserve during the life of the
				  property.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.380 - "Return on equity" defined

Current through June 11,
				2024
"Return on equity" means the ratio of earnings on the common
				  equity divided by the book value of the common equity interests.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.382 - "Revenue" defined

Current through June 11,
				2024
"Revenue" means the gross dollars received for materials
				  furnished or services rendered. The term is usually used in conjunction with
				  business sales as opposed to the earnings of a natural person.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.384 - "Risk" defined

Current through June 11,
				2024
"Risk" means the degree of uncertainty regarding the receipt
				  of future income, whether in the form of interest or of net operating income.
				  The higher the risk, the greater the annual percentage rate of return demanded
				  by investors. Interest on a government bond or on a bank deposit has a high
				  degree of certainty of receipt and therefore offers a low rate of return
				  compared to other investments. At the other extreme is the high risk equity
				  portion of a commercial enterprise with a high debt equity ratio.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.386 - "Sinking fund" defined

Current through June 11,
				2024
"Sinking fund" means the fund to which periodic cash deposits
				  are made for ultimately repaying a debt or replacing an asset. Usually, a
				  sinking fund receives equal periodic deposits upon which interest is compounded
				  at a stated rate so that the fund will accumulate to a predetermined amount at
				  the end of a stated period.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.387 - "Statistical median" defined

Current through June 11,
				2024
"Statistical median" means the representative intermediate
				  value calculated for a distribution or range of data usually grouped in several
				  intervals of equal value lying between the two extreme values.
Added to NAC by Tax
				  Comm'n, eff. 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.388 - "Straight-line depreciation" defined

Current through June 11,
				2024
"Straight-line depreciation" means the accounting practice of
				  recording equal annual increments of depreciation over the estimated life of an
				  asset. In an appraisal it means equal annual increments of loss in
				  value.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.390 - "Summation method of valuation" defined

Current through June 11,
				2024
"Summation method of valuation" means the combining of
				  fractional valuations into one value such as the addition of the value of a
				  house to the value of the lot to produce a total residential value.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.392 - "System" defined

Current through June 11,
				2024
"System" means an integrated operation of units which may be
				  related entities or may be property elements such as machinery, buildings, land
				  and other property used in the performance of a service or the manufacture of a
				  product.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.394 - "Tariff" defined

Current through June 11,
				2024
"Tariff" means the compilation of the schedules of rates
				  applicable to each of the products or services supplied to the public and the
				  regulations governing other aspects of the sale.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.396 - "Taxable value" defined

Current through June 11,
				2024
"Taxable value" means the value of a property determined by
				  using the cost, income and market approaches as described in NAC 361.200 to
				  361.508, inclusive.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.398 - "Times interest earned" defined

Current through June 11,
				2024
"Times interest earned" means the ratio of earnings before
				  the interest expense to the interest expense. The factor is an element used in
				  determining risk by the purchaser of debt issues of a company. Generally, the
				  lower the factor the greater the risk. Also called interest coverage, it may be
				  the ratio of earnings before interest and income taxes to interest
				  expense.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.400 - "Uniform system of accounts" defined

Current through June 11,
				2024
"Uniform system of accounts" means the prescribed method of
				  accounting adopted by a state regulatory agency, such as a public service
				  commission, or by a federal regulatory agency such as the Department of
				  Transportation, the Federal Communications Commission, the Federal Energy
				  Regulatory Commission or the Surface Transportation Board.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.402 - "Unitary method of valuation" defined

Current through June 11,
				2024
"Unitary method of valuation," as used in the central
				  assessment of utilities, is a method of valuation which recognizes that a
				  utility is an integrated enterprise and that its market value is not a
				  summation of the values of its various physical components but its value as a
				  whole as a going concern.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.404 - "Variable expenses" defined

Current through June 11,
				2024
"Variable expenses" means those expenses of a business
				  enterprise which vary with changes in the volume of output such as outlays for
				  fuel to generate electric power.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.406 - "Yield to maturity" defined

Current through June 11,
				2024
"Yield to maturity" means the computation of the average rate
				  of return on outstanding debt issues taking into consideration the current
				  price, interest payments and capital gains or losses at the maturity of the
				  issue.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79-NAC A 9-30-88
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.408 - Indicators of value: Cost approach; income approach; market or stock and debt approach; reconciliation

Current through June 11,
				2024
1. The cost
				approach consists of that cost of all operating assets subject to the ad
				valorem property tax pursuant to
				NRS
				361.315 and
				361.320
				that most closely reflects the taxable value of these operating
				assets.
2. For the income approach,
				the adjusted net operating income either after or before an allowance for
				depreciation and federal income tax will be capitalized (converted to value)
				through the use of an appropriate capitalization rate for the industry group.
				The income of the property to be capitalized will be determined as follows:
(a) With regard to those industry groups in
				which annual earnings are reasonably stable, the most recent year's earnings
				may be capitalized.
(b) For those
				industry groups in which annual earnings vacillate frequently over a period of
				years, an average of past earnings may be used.
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.410 - Use of unit rule of valuation

Current through June 11,
				2024
In the valuation of those properties which are listed in
				  NRS
				  361.320, the unit rule of valuation will be
				  used when considered applicable. The unit rule generally applies to companies
				  which own or operate lines or roads which lie partly within and partly without
				  Nevada. In these cases, the Department will only value and assess the property
				  within the State. In determining the value of the portion within the State, the
				  Department may take into consideration the value of the entire system, the
				  mileage of the whole system and of the part within the State, together with
				  such other information, facts and circumstances as will support a substantially
				  just and correct determination.
Tax Comm'n, Property
				  Tax Reg. part No. 15, eff. 10-30-79
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › General Provisions › Section 361.411 - Reports of construction work in progress

Current through June 11,
				2024
Construction work in progress must be reported to the
				  Department to the extent to which it provides additional capacity even though
				  part of the new construction replaces existing property.
Added to NAC by Tax
				  Comm'n, eff. 10-10-83
NRS
					 360.090,
					 361.321
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › Communications, Electric, Gas Transmission, Pipeline and Railroad Companies › Section 361.421 - Cost approach indicator of value: Determination

Current through June
				11, 2024
The cost approach consists of:
1. Determining the gross book cost for
				financial reporting purposes of all taxable operating property, including, but
				not limited to, all property relating to rail transportation, utility plant in
				service, plant held for future use, contributed plant, nuclear fuel,
				construction work in progress, experimental plant, acquisition adjustments,
				materials and supplies, plant and other property leased from others and common
				plant.
2. Deducting from the gross
				book cost the accrued book depreciation recorded for financial reporting
				purposes, which may include physical, functional and economic obsolescence.
				Additional obsolescence must be deducted when adequately quantified.
Added to NAC by Tax
				  Comm'n, eff. 9-30-88; A by R085-98, 11-23-98
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › Communications, Electric, Gas Transmission, Pipeline and Railroad Companies › Section 361.4215 - Cost approach indicator of value: Optional cost information

Current
				through June 11, 2024
The taxpayer may present and the Department shall consider,
				  in addition to the information required by NAC 361.421, one or more of the
				  following alternative cost indicators of value:
1. A calculation of the reproduction cost new
				less depreciation for all taxable operating property of the collective unit
				being assessed. The calculation must have been performed in accordance with
				generally accepted appraisal methodology.
2. A calculation of the replacement cost new
				less depreciation for all taxable operating property of the collective unit
				being assessed. The calculation must have been performed in accordance with
				generally accepted appraisal methodology.
3. Any other relevant and verifiable
				information, such as rate base for regulatory purposes.
Added to NAC by Tax
				  Comm'n by R085-98, eff. 11-23-98
NRS
					 360.090,
					 361.320
Nevada Administrative Code › Chapter 361 - Property Tax › ASSESSMENTS BY NEVADA TAX COMMISSION › Communications, Electric, Gas Transmission, Pipeline and Railroad Companies › Section 361.423 - Income approach indicator of value: Formula for determination

Current through June 11, 2024
1. The capitalized income approach consists
				of deducting from the normalized and annualized gross operating income any
				direct and indirect normalized and annualized operating expenses specifically
				related to the normalized and annualized gross operating income including any
				annualized book depreciation. Deferred income taxes will be treated as an
				operating expense. Normalized and annualized rental expense on operating
				property leased from others, less imputed depreciation, income taxes and other
				applicable expenses, will be disallowed as an operating expense.
2. The resulting adjusted net operating
				income will be capitalized (converted to value) using an appropriate
				capitalization rate for the industry group. The capitalization rate for the
				typical company will be used for the firms being appraised in each industry
				group. The market capitalization rate will be derived from calculations made
				for selected companies in each industry group.
3. The operating income to be capitalized
				into taxable value will be normalized and annualized based on the most recent
				year's adjusted net operating income. When the most recent year's net operating
				income is not a reasonable representation of a company's net operating income,
				such as where a company's net operating income tends to be cyclical, a 3- or
				5-year average of adjusted net operating incomes will be normalized and
				annualized and may be used.
4.
				Construction work in progress is not a factor in applying the income approach
				to value.
5. Any normalization or
				annualization adjustments to a company's net operating income must be based on
				known, measurable and experienced changes in a company's operation or taxable
				property as of the current year's reporting date.
Added to NAC by Tax
				  Comm'n, eff. 9-30-88; A by R085-98, 11-23-98
NRS
					 360.090,
					 361.320