AB 416 — Provides an exemption from property taxation for accessory dwelling units leased to certain tenants. (BDR 32-187)

(Reprinted with amendments adopted on April 24, 2023) FIRST REPRINT A.B.

Existing federal law authorizes the Secretary of the United States Department of Housing and Urban Development to provide assistance to public housinghousingpartment (Sectionagencies 8for oftenant-based theassistance Unitedthrough Statesthe Housing ActChoice ofVoucher 1937,Program. 42 U.S.C.

§(Section 1437f)8 Section 1 of this bill provides an exemption from property taxes for an accessory dwelling unit and the landUnited uponStates which it is situated if the accessory dwelling unit is rented or leased to a tenant receiving assistance under the Housing ChoiceAct Voucher Program pursuant to a lease which is for a period of not1937, less42 thanU.S.C. 12 consecutive months.

§ 1437f) Section 1 requiresof athis personbill claimingprovides thean exemption tofrom fileproperty withtaxes thefor countyan assessor entered into a housing assistance payment contract and that the accessory dwelling unit meetsif the relevantaccessory federaldwelling housingunit: quality standards.

(1) is rented or leased to a tenant receiving assistance under the Housing Choice Voucher Program pursuant to a lease which is parcel as a single-family residence which is the primary residence of the owner of the accessory dwelling unit;

and (3) complies with all applicable local zoning laws.

Section 1 requires a person claiming the exemption to annually file with the county assessor a verification from the appropriate public housing authority that:

(1) the person has entered into a housing assistance payment contract;

(2) the tenant is receiving assistance under the Housing Choice Voucher Program;

and (3) the Section 1 prohibits the exemption from being granted for more than one accessory dwelling unit per parcel.

- *AB416**AB416_R1* – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

An accessory dwelling unit and the land upon which it is situated is exempt from taxation if, for the year in which the exemption applies, the accessory dwelling unitunit: is rented or leased to a qualified tenant receiving assistance under the Housing Choice Voucher Program pursuant to a written lease which is for a period of not less than 12 consecutive months.

(a) Is rented or leased to a qualified tenant receiving assistance under the Housing Choice Voucher Program pursuant to a written lease which is for a period of not less than 12 consecutive months;

(b) Is located on the same parcel as a single-family residence which is the primary residence of the owner of the accessory dwelling unit;

and (c) Complies with all applicable local zoning laws.

Any person claiming the exemption must file annually with the county assessor verification from the appropriate public housing authority that:

and (b) The qualified tenant to whom the accessory dwelling unit,unit atis therented timeor itleased wasis lastreceiving inspected,assistance metunder the housingHousing qualityChoice standardsVoucher Program pursuant to 42a U.S.C.written lease which is for a period of not less than 12 consecutive months;

and (c) The accessory dwelling unit, at the time it was last inspected, met the housing quality standards pursuant to 42 U.S.C.

The exemption pursuant to this section may only be cla4.edA county assessor may prescribe forms and adopt procedures for claiming the exemption pursuant to this section not inconsistent with any regulations, forms and procedures prescribed or adopted by the Department or the Nevada Tax Commission.

5.

(a) “Accessory dwelling unit” means an ancillary or secondary living unit, that has a separate kitchen, bathroom and sleeping area, existing either within the same structure, or on the same lot, as a single-family residence.

- *AB416_R1* – 3 – (c) “Qualified tenant” means a person who is not related to the owner of the property on which the accessory dwelling unit is located by consanguinity or affinity witSec.within the third degree.

Sec.

thNRSNRS 361.160 is hereby amended to read as follows:

Such property is not deprived of exemption because while in the warehouse the property is assembled, bound, joined, manufactured, processed, disassembled, divided, cut, broken - *AB416* – 3 – in bulk, relabeled or repackaged, or because the property is being held for resale to customers outside the State of Nevada.

361.0302. and 361.045 to 361.155, inclusive, and section 1 of this act, does not include personal property in transit through this State as defined in this section.

Personal property within this State as mentioned in NRS 361.030 and 361.045 to 361.155, inclusive, and section 1 of this act, does not include personal property in transit through this State as defined in this section.

H - *AB416**AB416_R1*