Here’s what property owners need to know about bifurcated property taxes.
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Do you understand bifurcated property taxes? This can be a tricky topic, so today I’ll explain everything you need to know about these types of taxes in our area.
The bifurcated property tax was implemented in 2005. Essentially, if you’re a private homeowner, your property taxes are capped at 3%. If you own an investment property, the cap is 8%. When you own a property, you’ll receive a postcard from the government where you’ll indicate if your property is a primary residence or an investment.
Rental properties are a bit of a gray area. When you receive your postcard, you should note that a property is a rental and how much you charge for rent. If your monthly rent is below a certain amount, you can qualify for the 3% property tax. If your rent is above the amount, your property will be treated as an investment and have an 8% cap.
"Make sure you aren’t paying more than you need to."
The issue with this system is that we have to rely on the postal service to deliver the mail. If the county doesn’t receive your postcard, they automatically push you up to the 8% cap. Considering how unreliable our postal service can be, this happens often. Once you correct this error, you can only be reimbursed for the last year of property taxes. The law is a little unclear on this issue, so I’ll look into it further and let you know what I find.
In the meantime, please call or email me with any questions about today’s topic. I look forward to hearing from you!
Click here to check your property taxes.
Click here to download the Clark County Assessor's Office Tax Cap Form.