As we’ve elsewhere explained, according to NRS 318.225 general ad valorem real property taxes are the only ones GIDs are expressly authorized by statute to levy and collect¹. In fact, they’re the only basis for property taxation.

NRS 318.225: instructs that

GID “Boards shall have power and authority to levy and collect general (ad valorem) taxes on and against all taxable property within the district.”

NRS 318.230: instructs that said taxes shall supply the monies necessary to pay for

“(a) The expenses of organization and the costs of operating and maintaining the works and equipment of the district; and,

(b) The costs of acquiring the works and equipment of the district and, when due, all interest on and principal of general obligation bonds and other general obligations of the district.”

NRS 361.445: instructs that

“The assessment made by the county assessor and by the Department…shall be the only basis for property taxation by any city, town, school district, road district or other district in that county.”

NRS 318.015(2): instructs

“That the provisions of this chapter² are not intended to provide a method for financing the costs of developing private property.”

“Equalized According to Law:” NRS 361.445 further instructs that

“The assessment made by the county assessor and by the Department (shall be)…equalized according to law.”

So what does the NRS mean by “equalized according to law?”

Enter NRS 361.4547(1): which instructs that

“After the approval of the final budgets for the various local governments as defined in NRS 354.474 and their submission to the Department (of Taxation), for examination and approval, the Nevada Tax Commission shall certify to the board of county commissioners of each of the several counties the combined tax rate necessary to produce the amount of revenue required by the approved budgets, and shall certify that combined rate, to each of the boards of county commissioners.”

Redbook: That certification takes place via publication by the Department of Taxation’s Division of Local Government Services³ [aka the Committee on Local Government Finance (“CLGF”)] of a “Redbook” which reports “Property Tax Rates For (All) Nevada Local Governments For (The) Fiscal Year.”⁴ The “book” is divided into five (5) sections:

“Section A – Total Property Tax Rates by Taxing Unit. Presents the assessed valuation of all property including, net proceeds of minerals valuation and total assessed valuation for each local government entity. Also presented are the combined tax rate, county tax rate, combined special district tax rate, school district operating tax rate and the Total Property Tax Rate.

Section B – Combined Property Tax Rates by Component; by Taxing Unit. Presents a breakdown of the different rates that comprise the combined tax rate, which include maximum allowed and levied operating rates, voter approved override allowed and levied tax rates, legislatively allowed and levied tax rates and rates necessary to service debt incurred by the entity.

Section C – Property Tax Overrides and Tax Impact. Presents details of current voter approved property tax overrides, including the entity collecting the override rate; the purpose for which the revenues generated are to be used; the tax rate or dollar amount approved; the date of the election; and the length of time in which the levy is to be imposed. Prior to the meeting of the 1993 Nevada Legislature, voter approved overrides could be imposed in perpetuity, unless rescinded by a vote of the people. In the 1993 session, legislation was enacted limiting the term of voterapproved overrides to no more than 30 years duration [pursuant to NRS 354.5982 (1)]. This section also provides examples from a select number of entities within a county and presents the property tax bill that would be due on a home with an assessed value of $100,000.

Section D – Overlapping Districts. Presents the details of the various district property tax rates which comprise the combined special district tax rates shown in column 7 in section A of this publication. (And,)

Section E – Other Information. Presents information on redevelopment agencies.”

Given there are “areas within a county with a combination of two or more tax rates for (two or more taxing) entities formed for specific purposes”⁵ known as “Overlapping Tax Districts,” and “the Nevada State Constitution caps the property tax rate (the ‘Statutory Tax Rate Limit’) at $5.00 per $100.00 of assessed value⁶ (and) NRS 361.453 has further capped the rate at $3.64 per $100.00 of assessed value,” rates for these areas need to be “equalized” so the combined rate doesn’t exceed the statutory maximum. Hence the Redbook.

Overlapping Tax Districts And Their Equalized Tax Rates: Page D-10 of the Redbook for FY 2025-26 prepared on June 25, 2025 lists the overlapping tax districts for Incline Village/Crystal Bay, as well as their equalized tax rates: the State of Nevada ($0.1700), Washoe County School District ($1.1385), Washoe County ($1.3917), Incline Village GID [“IVGID”] ($0.1468), and the North Lake Tahoe Fire Protection District ($0.6748). Add the various rates together, and you get a total tax rate of $3.5218 per $100.00 of assessed value.

The Maximum Ad Valorem Tax Rate: The Redbook for FY 2021-22 was prepared on June 25, 2021. According to Pages A-11 and D-10, the District’s combined/overlapping ad valorem tax rate for all local governments in Incline Village/Crystal Bay was $3.4810 per $100 of assessed valuation. Meaning the overall tax rate in five (5) years has increased by $0.0408 per $100 of assessed valuation. As has the District’s [$0.0140 (from $0.1328 per $100 of assessed valuation⁷)]. Notwithstanding the creep upwards, the District’s tax rate has reached its maximum⁸.

And now you know!

---

1. NRS 318.230(2) instructs that “the board shall certify to the board of county commissioners…the rate so fixed with directions that at the time and in the manner required by law for levying taxes for county purposes such board of county commissioners shall levy such tax upon the assessed valuation of all taxable property within the district, in addition to such other taxes as may be levied by such board of county commissioners at the rate so fixed and determined.”
2. Such as NRS 318.225.
3. See NRS 354.105, et seq.
4. The Department’s latest FY 2025-26 Redbook is located at https://tax.nv.gov/wp-content/uploads/2025/07/FY-2025-2026-Final-Tax-Levied.pdf.
5. Incline Village/Crystal Bay is one of those areas.
6. Because Article 10, Section 2 of the Nevada Constitution which instructs that “the total tax levy for all public purposes…within the state, or any subdivision thereof, shall not exceed five cents on one dollar of assessed valuation.”
7. See Page B-10.
8. Compare the “Maximum Allowed” and “Actual” rates on Page B-10 of the Redbook for FY 2021-22. They’re the same ($0.1203 per $100 of assessed valuation). Now go to Page B-10 of the Redbook for FY 2025-26. Again they’re the same ($0.1249 per $100 of assessed valuation).