What remedies are available assuming one or more members of the public allege the Incline Village General Improvement District’s (“IVGID’s”) Beach (“BFF”) and/or Recreation (“RFF”) Facility Fees lack validity? As the reader will learn, just like enjoining IVGID’s ultra vires acts¹, and addressing its violations of Nevada’s Local Government Budget and Finance Act² (“LGBFA”), there is no remedy!

Recall that in our No Remedy to Enjoin IVGID’s Ultra Vires Acts discussion, we pointed to deceased Judge Patrick Flanagan’s decision in the Katz v. IVGID trial court litigation to the effect that “the statutory scheme of NRS Chapter 318 (therein)…contain(ed) no express private remedy for citizens like Katz.” And for this reason, no resident has any standing to challenge in any court in this State the validity of acts Katz challenged. But when it comes to challenging the validity of the RFF/BFF, at least on paper, that’s not the case. Because NRS 318.201(1) and (12) instruct as follows:

“(1) Any board which has adopted rates pursuant to this chapter may, by resolution…elect to have such charges for the forthcoming fiscal year collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, the county’s general taxes. In such event, it shall cause a written report to be prepared and filed with the secretary, which shall contain a description of each parcel of real property receiving such services and facilities and the amount of the charge for each parcel for such year, computed in conformity with the charges prescribed by the resolution;” and,

“(12) All laws applicable to the levy, collection and enforcement of general taxes of the county, including, but not limited to, those pertaining to the matters of delinquency, correction, cancellation, refund, redemption and sale, are applicable to such charges.”

As elsewhere discussed,

“Each year, the District establishes…annual Recreation…and Beach Facility Fee(s which are)…collected…on behalf of the District by the Washoe County Treasurer’s Office…from property owners within the District through a levy placed on the(ir) property tax bill(s).”³

“As part of the annual budget process the Board traditionally approves a resolution which outlines the billing and collection process(es) set forth in Nevada Revised Statutes (“NRS”) 318.197⁴ and 318.201⁵, as well as establishing the amount of the…RFF and…BFF to be collected.”³ At (a publicly noticed) meeting (generally held in May of each year) the Board…t(akes) action [via resolution⁶…approv(ing a final) Report⁷ contain(ing) a description of each parcel of real property receiving…services and facilities(, and) the (final) amount of the charge(s)…for such year.”⁸

“The (Board) Secretary (then prepares and) file(s)…a copy of the (final Report)…with the County Treasurer (so)…the…Treasurer (can) include the amount of the charges on bills for taxes levied against the respective lots and parcels of land.”⁹ “Thereafter, the amount of the charges is…collected at the same time and in the same manner and by the same persons as, together with and not separately from…general (ad valorem) taxes for the county.”¹⁰ “The amount of the charges…constitute a lien against (each) lot or parcel of land against which the charge has been imposed as of the time when the lien of taxes on the roll attach.”¹¹

Therefore, “all laws applicable to the levy, collection and enforcement of general taxes of the county, including, but not limited to, those pertaining to…matters of delinquency, correction, cancellation, refund, redemption and sale, (become) applicable to such charges”¹² apply to the RFF/BFF. 

So what are the laws which pertain to the refund of county general taxes? For the answer, we turn to NRS 361. And we start with the assessment of general taxes.

NRS 361.260(1) instructs that

“Each year, the county assessor…shall ascertain…all real and secured personal property…in the county on July 1 which is subject to taxation…The county assessor shall then determine the taxable value of all such property, and shall then list and assess it to the person, firm, corporation, association or company owning it on July 1 of that fiscal year.”

We next move to the appeal of that assessment.

Where “an owner of…real or personal property placed on: (a) the secured tax roll…believes…his or her property was assessed at a higher value than another property whose use is identical and…location is comparable¹³…or the full cash value of his or her property is less than the taxable value computed for the property in the current assessment year¹⁴…may appeal the assessment…to the county board of equalization.”

“Any taxpayer aggrieved at the action of the county board of equalization in equalizing, or failing to equalize, the value of his or her property…may file an appeal with the State Board of Equalization.”¹⁵ “The State Board of Equalization shall hear and determine all appeals from the action of each county board of equalization, as provided in NRS 361.360.”¹⁶

Finally, we next move to judicial review.

“Any party who is: (a) identified as a party of record by an agency in an administrative proceeding; and, (b) aggrieved by a final decision in a contested case; is entitled to judicial review of the decision. Where appeal is provided within an agency, only the decision at the highest level is reviewable¹⁷ unless a decision made at a lower level in the agency is made final by statute.”¹⁸ “All such actions must be for redress from the findings of the State Board of Equalization.”¹⁹

Given “no collection of taxes may be enjoined, restrained or ordered to be refunded, on account of any failure…to do any act required by NRS 361.315 to 361.325, inclusive;” or, “to do any act required by this chapter (NRS 361) within the time so required;”²⁰ and the filing of an appeal does not suspend the accrual of penalties and interest; NRS 361.420(1) instructs that a “property owner whose taxes are in excess of the amount which the owner claims justly to be due may pay each installment of taxes as it becomes due under protest in writing” and continue with his or her appeal²¹. And “the person who pays such taxes is not thereby deprived of his or her right to have the assessment equalized.”²¹ And “if, upon equalization, the value is reduced, the taxes paid must be refunded to that person from the county treasury…in proportion to the reduction of the value made.”²²

So to obtain refund of the RFF/BFF, the reader sees that appeal to the County Board of Equalization becomes the first step.

But what appears on paper doesn’t necessarily play out in the real world. It turns out that the Washoe County Board of Equalization refuses to accept appeals of the RFF/BFF by Incline Village/Crystal Bay parcel owners. Notwithstanding would be appellants are compelled to make payment or risk loss of their properties through the county tax collector’s enforcement of the lien created by NRS 318.201(10). And because there can be no appeal to the State Board of Equalization until the County Board of Equalization has taken action²³, and there can be no appeal to district court because the State Board of Equalization must first make findings. Meaning that challenges to the validity of the RFF/BFF are illusory. Just as they are when it comes to enjoining IVGID’s ultra vires acts¹. Or addressing its violations of Nevada’s LGBFA². Even though NRS 361.410(1) instructs that “no taxpayer may be deprived of any remedy or redress in a court of law relating to the payment of taxes.”

And now you know!

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1. See our No Remedy to Enjoin IVGID’s Ultra Vires Acts discussion.
2. See our No Remedy to Address IVGID’s LGBFA Violations discussion.
3. See page 103 of the packet of materials prepared by staff in anticipation of the Board’s May 27, 2020 meeting (“the 5/27/2020 Board packet”).
4. Which allows general improvement district (“GID”) Boards to “fix (in part)…recreational facilit(y)…standby service charges, for services or facilities furnished by the district, (as well as)…the (mere) availability of service.”
5. Which allows “any (GID) board which has adopted rates pursuant to…chapter (NRS 318 to)…elect to have such charges for the forthcoming fiscal year collected on the tax roll.”
6. See NRS 318.201(9). For an example of the resolution the Board adopts (for fiscal year 2023-24), see Resolution No. 1902 [see pages 490-493 of the packet of materials prepared by staff in anticipation of the Board’s May 25, 2023 meeting (“the 5/25/2023 Board packet“)].
7. “For Collection on the County Tax Roll of Recreation Standby and Service Charges” [for an example of the final Report the Board approved for fiscal year 2023-24 (see pages 494-499 of the 5/25/2023 Board packet)].
8. See NRS 318.201(8) and (9).
9. See ¶7 at page 492 of the 5/25/2023 Board packet.
10. See NRS 318.201(11).
11. See NRS 318.201(10).
12. See NRS 318.201(12).
13. See NRS 361.356(1).
14. See NRS 361.357(1).
15. See NRS 361.360(1).
16. See NRS 361.400(1).
17. In this case the State Board of Equalization.
18. See NRS 233B.130(1).
19. See NRS 361.410(1).
20. See NRS 361.330.
21. NRS 361.505(4) instructs that “the person who pays such taxes is not thereby deprived of his or her right to have the assessment equalized.”
22. See NRS 361.505(4).
23. That would be the failure to equalize.