As we inch closer to the nation’s annual tax filing deadline, a good number of American’s can be heard grumbling about the high tax burden they suffer from, and they can’t be blamed for their minds wandering to past rallying cries of “No taxation without representation!” It’s only natural. After all, of the two things, we can always depend on, death and taxes; neither option leaves a particularly good taste in the mouth. Nevada residents however, enjoy one of the lowest tax burdens in the country. As such, the cities and towns of the Silver State are attractive destination points for savvy tax payers who want to get the most out of their paychecks while limiting their tax burden to those living on a fixed income and need to control their expenditures.
The Low Cost of Living in Las Vegas
Nevada residents pay no state or local income tax, so taxpayers living in the Silver State are already ahead of the game when it comes to lowering their tax burden. For denizens of Las Vegas, these savings make for a substantial reduction in the cost of living, which makes the town one of the most cost-effective locations to live in the nation. As compared to other major cities around the country, Las Vegas property tax rates are some of the lowest in the United States at an effective rate of about a dollar per $100 of assessed value. While supporting an especially high sales tax rate of 7.75%, much of that bite is ameliorated by the fact that Nevada only taxes 37.4% of its goods at sale. Further savings are found in a state tax code that allows for the deductions of state and local sales tax payments.
Lower Rates Means Real Savings
Much of the state’s general fund is supported by taxing the gaming industry in tandem with hotel occupancy taxes, so the overall burden is diffused away from residents of the Silver State to those more easily able to pay. In terms of real savings, a family of three earning $25,000 will save $266 a year in tax burdens over the average American city dweller, and a family of four bringing in $150,000 can expect to bank over $6,300 in savings, which makes Las Vegas the third lowest in the nation for tax payments.
The larger the town the higher the property taxes, so in an effort to compare apples with apples, contrast Las Vegas’ 600,000 populations against cities of similar sizes yields the following comparisons.
City Population Tax Rates
Boston, MA 655,844 $12.11 per $1000 of Assessed Value
Baltimore, MD 622,793 $2.132 per $100 of Assessed Value
Portland, OR 619,350 $15.00 per $1000 of Assessed Value
Oklahoma City, OK 620,602 11% of Assessed Value
Louisville, KY 612,780 $1.31 per $1000 of Assessed Value
What is the Property Assessment Process?
In Clark County, the county Assessor office is tasked with determining property value throughout the county. Under current Nevada statutes, the Assessor is mandated to discover and list the value of all real property in the county, which is assessed at 35% of its currently appraised value. Once the Assessor office has completed its computations, it then turns the data over to the County Treasurer who determines the actual tax debt owed by the property owner. The Treasurer not only sends out tax bills and collects the receipts, but that office is also responsible for seeing to the disbursement of these funds to all relevant taxing agencies from school districts to water districts.
Clark County has 92 separate tax districts and each tax rate is based on the amount of public services the area is budgeted for on services ranging from police and fire protection to flood control efforts, libraries and a litany of other social services. In general, Clark County’s property taxes range in rates between 2.4863 and 3.3552%. As an example, a home values at $200,000 would be assessed at 35% of that value, or $70,000, and the property owner is assessed at every $100 of assessed value. Under the above guidelines, the homeowner can expect to shell out between $1,740 and $2,340 per year in Las Vegas property taxes.
Crumbling Schools Could Lead to Boosted Las Vegas Property Taxes
For property owners looking to the future of their Las Vegas property taxes, their eyes are being drawn to the legislative chambers of Carson City where the state senate has put forth a bill, SB411, which seeks to revitalize the state’s education infrastructure. While much of the state’s physical educational facilities are in dire need of repair work and improvement projects, the state is also inundated with increased student enrollment that is forcing educators to rethink ways to maximize existing class space and the building of new schools. The new senate bill seeks to raise property rates to help pay for the new building and construction projects. While legislative analysts are closely following the bill’s progress, its passage in the state senate could potentially boost the cost of owning property not only in Las Vegas, but also across the Silver State as a whole.
Affordable Las Vegas Property Tax Rates
Homebuyers looking to relocate to the Silver State are rewarded with a cost of living index that is decidedly lower than cities of similar size across the country. Owing to Nevada’s unique taxing position of not demanding personal income tax of its citizens, Las Vegas residents enjoy an enhanced quality of living because they get to keep more of their hard-earned money in their own pockets rather than a governmental office. With plenty of available houses on the market, low Las Vegas property tax rates translates into buying the home of their dreams while easily affording the ongoing costs of property tax rates.
2 Point Highlight
The cities and towns of the Silver State are attractive destination points for savvy tax payers who want to get the most out of their paychecks while limiting their tax burden to those living on a fixed income and need to control their expenditures.
As compared to other major cities around the country, Las Vegas property tax rates are some of the lowest in the United States at an effective rate of about a dollar per $100 of assessed value.
