Why Property Values Change
Real Property
The assessed value can change because of a boundary change, new construction, a change in use, a mandatory five-year reappraisal, factoring in years a reappraisal is not done, inflation or any combination of these factors. Boundary changes occur when old parcels are either divided or combined. New construction includes new buildings, additions, remodeling etc. Changes in use, which include such changes as from residential to office or retail use or from agricultural use to residential lots. Reappraisal of property, which is done at least once every five years. Improvements are recalculated to current cost of replacement, less depreciation and land is revalued.
Factoring to keep values current with changes in individual properties and local and neighborhood trends. In a non-reappraisal year the prior assessed value of the improvement is multiplied by a factor approved by the Nevada Tax Commission. Land values are also factored to stay current with the market.
A combination of the situations listed above.
Personal Property
The assessed value of personal property can change because of depreciation, the addition or deletion of items declared and the yearly change in cost factors. That new value when multiplied by the property tax rate may change the property tax due.