A controversial constitutional amendment that would significantly increase property taxes for new homebuyers is currently under consideration in the Nevada Legislature.
Assembly Joint Resolution 1 (AJR1), introduced by Assemblywoman Natha Anderson (D-Washoe), proposes fundamental changes to how property taxes are calculated when homes are sold or transferred.
Under Nevada’s current system, property tax calculations include depreciation benefits for aging structures, with improvements depreciating at 1.5% annually for up to 50 years. This provides substantial tax relief for owners of older properties.
AJR1 would eliminate these benefits for new buyers.
The proposed amendment would create two major changes:
First, newly purchased properties would lose all age-based tax benefits for the first year after sale.
Second, in subsequent years, the property would be taxed as if improvements were brand new on the date of transfer, effectively resetting decades of accumulated depreciation.
“This constitutional amendment represents a substantial tax increase on Nevada families, especially middle-class Hispanics trying to purchase homes,” said Erica Neely, founder of the Hispanic Latin Alliance.
“At a time when housing affordability is already a serious concern,” she continued, “adding thousands in additional tax burden to new purchases will place homeownership further out of reach for many.”
Analysis indicates the change could increase annual property tax bills by 30-50% for buyers of older homes, creating a situation where identical neighboring properties would have dramatically different tax obligations based solely on when they were last sold.
“This amendment would effectively penalize mobility and create a powerful disincentive to sell property,” said Kelly Chapman, Executive Director of the Nevada Business Alliance. “We anticipate reduced housing inventory and market stagnation if this passes.”
While proponents argue the measure will provide more consistent revenue for government services, critics point out that it unfairly targets a specific subset of taxpayers – those who need or choose to move.
The resolution does include provisions requiring the Legislature to establish a property tax assistance program for seniors and people with disabilities. However, the proposal leaves the specifics of eligibility criteria and refund amounts undefined.
As a constitutional amendment, AJR1 would need to pass in two consecutive legislative sessions before going to voters for final approval.
Tax policy experts emphasize that constitutional changes are particularly difficult to modify if problems emerge after implementation.
Nevada taxpayer advocacy groups are urging residents to contact their representatives about this proposal, noting that while the measure is still in early stages, addressing it now is crucial before it gains momentum.
The resolution is currently before the Committee on Revenue.
If enacted, the amendment would represent one of the most significant changes to Nevada’s property tax system in decades, with long-term implications for housing affordability, market dynamics, and generational tax equity throughout the state.
Just. Say. No.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
