A little over a month ago, Clark County assessors made an announcement that created a lot of confusion. Homeowners were scrambling to prove that they lived in their homes so they could pay just 3% on property taxes instead of 8%. Many felt blindsided, thinking they had only a couple of days to submit their paperwork. And it wasn’t even clear what that paperwork was.
But what was the confusion all about, and what’s the truth? Well, it wasn’t as urgent as many homeowners thought, but there’s still action to take in the next 10 months.
What Homeowners Thought
The original headline simply said, “Clark County homeowners have a June 30 deadline to update their information with the assessor’s office in order to avoid paying a higher property tax rate.” And the announcement was sent out through news outlets just days before June 30.
Wait a second. What information? What update? Nobody wants to pay a higher tax rate, so everybody wanted to know how to get a lower rate. And panic set in when they thought this ambiguous requirement was just days away.
But on June 29, clarification hit the airwaves: “To fix the upcoming tax cap that is 8% for the next fiscal year or starting July 1, you have until June 30, 2023. Tomorrow is not the deadline.”
OK, phew. But still … what do they mean by “fix”?
What Homeowners Need to Know
You now know that you have until next June to get this situation straightened out. But first, we’re going to walk through the 411 so you know whether or not you need to do anything at all. And if you do, what exactly that is.
The bottom line is that if you own a home in Clark County and it’s your primary residence, you owe 3% in property tax each year. If you rent it out or live elsewhere the majority of the time, you’ll pay 8% in property tax instead.
So when they refer to “updating your information,” it simply means putting on record whether or not that property is your primary home. And the form you need to fill out is called a “tax cap form.”
Is The House Your Home?
If you live in the house in question, and it’s your primary residence rather than a vacation home, you only owe 3% in property tax. But you need to let the county know that’s the case, or else you’ll be charged 8%.
- If you don’t live in your property, but rent it out or use it as a rental property, you don’t have to do anything. You’re taxed at 8%, and that’s the correct amount.
- If you have ever submitted information stating that you live in your home, you don’t need to do anything. You’re only charged 3% in property tax, and that’s the correct amount.
- If you have never filled out a form stating the home is your primary residence, you need to do that. This will lock your property tax rate at 3% instead of 8%.
Even though we’re talking about the current tax year — 2022-2023 — you don’t have to submit this information immediately. You have until June 30, 2023, to make any corrections if they need to be made. But remember, if you’ve already declared the home as your primary residence, or it’s not actually your primary residence, you don’t have to do anything.
Here’s the official word from Clark County:
“If you returned a tax cap card to our office to have your property tax cap corrected, please be advised that the 3% tax cap may not immediately show on your tax bill due to the high volume of requests received. You will receive an amended bill from the Treasurer’s Office once your tax cap has been updated.
“As homeowners, you are always able to correct your tax cap if it is incorrect. You will not be permanently set at 8%. Once your property becomes your primary residence, your 3% tax cap is set for all billing years going forward. It will only change if you make any changes to the ownership on your parcel (i.e. remove or add someone to title). You have until June 30, 2023 to correct your tax cap for this year (2022-2023).”
What You Need to Do
Here are a few steps to take to ensure you’re paying the correct property tax rate.
- Check what you have paid in the past. If it’s correct, you don’t need to do anything.
- If you’re in the 8% tax bracket but the home is your primary residence, fill out a tax cap form at ClarkCountyNV.gov. If you have never filled out this form before, assume you’re in the wrong tax bracket and fill it out before next June.
Let An Expert Guide Your Real Estate Journey
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To find out more about working with Dulcie and her award-winning team, or to get more information about the current housing market conditions, properties featured on this blog, or our Hot Market Listings, please contact Dulcie Crawford directly at (702) 505-2775.