Wednesday, Aug. 4, 2021 | 2 a.m.
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A compromise between cutting off new development to protect water and allowing the development boom to proceed unchecked might be to tier property taxes.
Each property sale is dated, so an owner with multiple homes would have a tier set based on this date. Following a sale, remaining properties would move down to maintain sequentially the tiered tax rate.
This would likely discourage speculative land grabs, increase available inventory for first-time buyers, incentivize owner-occupation (which tends to result in better upkeep and more sustainable choices like solar power or xeriscape), and encourage community in a way absentee investor-owners don’t.
It would still allow multi-home or investment ownership for those willing to pay the higher tax tiers. Tiered-price systems are widely accepted in the West for water and power, allowing extravagant usage while financially identifying it as luxury.
Multiple homes are a luxury, and lack of housing for lower-income families is a problem. The extra tax cost at higher tiers would reduce incentive for investors to use second homes for short-term rental businesses while avoiding commercial property tax rates. (There is a difference between renting out an extra room in your house and buying an investor property that is primarily used for rentals, in terms of neighborhood impact.)
Since much of the new development driving up water demands is from second home/investor-rental markets, this would likely slow growth of water-thirsty developments while increasing available homes for single-home owners. It would also encourage buyers committed to making Nevada their primary residence.
