AB 131 — Provides an exemption from property taxation for accessory dwelling units rented or leased to certain tenants. (BDR 32-694)

Sec.Chapter 361 of NRS is hereby amended by adding thereto a new section to read as follows:

1.

An accessory dwelling unit is exempt from taxation if, for the year in which the exemption applies, the accessory dwelling unit:

(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;

(c) Complies with all applicable local zoning laws;

and (d) If the parcel is located within a common-interest community, complies with all applicable covenants, conditions and restrictions of the common-interest community.

NRSAny 278.010person isclaiming herebyan amendedexemption pursuant to readthis assection follows:must file annually with the county assessor:

278.010(a) AsVerification usedfrom in NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the contextappropriate otherwisepublic requires,housing theauthority wordsthat: and terms defined in NRS 278.0103 to 278.0195, inclusive, have the meanings ascribed to them in those sections.

Sec.(1) The person has entered into a housing assistance payment contract with the public housing authority to receive tenant-based assistance payments under the Housing Choice Vouche(2) The qualified tenant to whom the accessory dwelling unit is rented or leased is 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;

and (3) The accessory dwelling unit, at the time it was last inspected, met the housing quality standards set forth in 42 U.S.C.

1437f(o);

and (b) A copy of the lease for the accessory dwelling unit, which must set forth, without limitation, the total square footage of the accessory dwelling unit.

NRSThe 278.0235person ismay herebyclaim amendedan exemption pursuant to readthis assection follows:for one accessory dwelling unit per parcel.

278.0235- 1.*AB131_R1* – 3 – 4.

NoTo actiondetermine or proceeding may be commenced for the purposevalue of seekingthe judicialaccessory reliefdwelling orunit reviewfor fromthe orpurposes with respect to any final action, decision or order of anyan governingexemption body,claimed commissionpursuant orto boardthis authorizedsection, bythe NRSvalue 278.010is equal to 278.630,the inclusive,cost and section 1 of thisreplacing act, unless the actionaccessory ordwelling proceedingunit, iswhich commencedmust withinbe 25calculated daysby after the datecounty ofassessor filingin ofaccordance noticewith of the finalregulations action,adopted decisionby or order with the clerkNevada orTax secretaryCommission ofpursuant theto governingsubsection body,6 commissionof orNRS board.361.227.

2.

A petitioner or cross-petitioner who is seeking judicial review must serve and file a memorandum of points and authorities within 40 days after an action is commenced.

3.

The respondent or cross-petitioners shall serve and file a reply memorandum of points and authorities within 30 days after the service of the memorandum of points and authorities.

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The petition or cross-petitioner may serve and file a reply memorandum of points and authorities within 30 days after service of the reply memorandum.

WithinA 7county daysassessor aftermay theprescribe expirationforms ofand theadopt timeprocedures withinfor whichclaiming the petitionerexemption ispursuant required to reply,this section not inconsistent with any partyregulations, mayforms requestand aprocedures hearing.prescribed or adopted by the Department or the Nevada Tax Commission.

Unless a request for hearing has been filed, the matter shall be deemed submitted.

AllAs memorandaused of points and authorities filed in proceedingsthis involvingsection: petitions for judicial review must be in the form provided for appellate briefs in Rule 28 of the Nevada Rules of Appellate Procedure.

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

(b) “Housing Choice Voucher Program” means the federal tenant-based assistance program established under 42 U.S.C.

1437f(o).

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

Sec.

TheNRS court,361.160 foris goodhereby cause,amended mayto extendread theas timesfollows: allowed in this section for filing memoranda.

361.160 1.

Personal property in transit through this State is personal property:

(a) Which is moving in interstate commerce through or over the territory of the State of Nevada;

or (b) Which was consigned to a warehouse, public or private, within the State of Nevada from outside the State of Nevada for storage in transit to a final destination outside the State of Nevada, whether specified when transportation begins or afterward.

 Such property is deemed to have acquired no situs in Nevada for purposes of taxation.

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

The exemption granted shall be liberally construed to effect the purposes of NRS 361.160 to 361.185, inclusive.

2.

Personal property within this State as mentioned in NRS 361.030 and 361.045 to 361.155, inclusive, and section 6 of this act does not include personal property in transit through this State as defined in this section.

4.8.

NRSThe 278.250Legislature is hereby amendedfinds tothat readthe asexemption follows:provided by this act from any ad valorem tax on property:

278.250- *AB131_R1* – 4 – 1.

ForWill theachieve purposesa ofbona NRSfide 278.010social toor 278.630,economic inclusive,purpose and sectionthat 1the benefits of thisthe act,exemption theare governingexpected bodyto mayexceed divideany theadverse city,effect countyof orthe regionexemption intoon zoningthe districtsprovision of suchservices number,to shapethe andpublic areaby asthe areState bestor suiteda tolocal carrygovernment outthat would otherwise receive andenue from the purposestax offrom NRSwhich 278.010the toexemption 278.630,would inclusivebe [.granted;

Within] , and section 1 of this act.

Except as otherwise provided in section 1 of this act, within the zoning district, it may regulate and restrict the erection, construction, reconstruction, alteration, repair or use of buildings, structures or land.

TheWill zoningnot regulationsimpair mustadversely bethe adoptedability inof accordancethe withState theor mastera planlocal forgovernment landto usepay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be designed:granted was pledged.

(a)Sec. To preserve the quality of air and water resources.

(b)9. To promote the conservation of open space and the protection of other natural and scenic resources from unreasonable impairment.

(c)1. To consider existing views and access to solar resources by studying the height of new buildings which will cast shadows on surrounding residential and commercial developments.

(d)This Tosection reducebecomes theeffective consumptionupon ofpassage energy by encouraging the use of products and materialsapproval. which maximize energy efficiency in the construction of buildings.

(e)2. To provide for recreational needs.

(f)Sections To1 protect life and property in areas subject to floods,8, landslidesinclusive, andof otherthis naturalact disasters.become effective:

(g)(a) ToUpon conformpassage toand approval for the adoptedpurpose populationof plan,adopting ifany requiredregulations byand NRSperforming 278.170.any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

(h) To develop a timely, orderly and efficient(b) arrangementOn ofJuly transportation1, and2026, public facilities and services, including public access and sidewalks for pedestrians,all andother facilitiespurposes. and services for bicycles.

H - *AB131**AB131_R1* – 5 – (i) To ensure that the development on land is commensurate with the character and the physical limitations of the land.

(j) To take into account the immediate and long-range financial impact of the application of particular land to particular kinds of development, and the relative suitability of the land for development.

(k) To promote health and the general welfare.

(l) To ensure the development of an adequate supply of housing for the community, including the development of affordable housing.

(m) To ensure the protection of existing neighborhoods and communities, including the protection of rural preservation neighborhoods and, in counties whose population is 700,000 or more, the protection of historic neighborhoods.

(n) To promote systems which use solar or wind energy.

(o) To foster the coordination and compatibility of land uses with any military installation in the city, county or region, taking into account the location, purpose and stated mission of the military installation.

3.

The zoning regulations must be adopted with reasonable consideration, among other things, to the character of the area and its peculiar suitability for particular uses, and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout the city, county or region.

4.

In exercising the powers granted in this section, the governing body may use any controls relating to land use or principles of zoning that the governing body determines to be appropriate, including, without limitation, density bonuses, inclusionary zoning and minimum density zoning.

5.

As used in this section:

(a) “Density bonus” means an incentive granted by a governing body to a developer of real property that authorizes the developer to build at a greater density than would otherwise be allowed under the master plan, in exchange for an agreement by the developer to perform certain functions that the governing body determines to be socially desirable, including, without limitation, developing an area to include a certain proportion of affordable housing.

(b) “Inclusionary zoning” means a type of zoning pursuant to which a governing body requires or provides incentives to a developer who builds residential dwellings to build a certain percentage of those dwellings as affordable housing.

(c) “Minimum density zoning” means a type of zoning pursuant to which development must be carried out at or above a certain density to maintain conformance with the master plan.

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5.

The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

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