As we’ve elsewhere stated, GIDs have the express power to levy and collect ad valorem taxes. But do they have the power to pick and choose which parcels¹ get taxed? Especially given the fact NRS 318.225 instructs that those taxes must be levied “against all (and not just some of the) taxable property within the district.” In other words, taxing entities cannot independently nor arbitrarily exempt any parcels from their ad valorem (property) taxes absent statutory authority. That’s because all property tax exemptions must be strictly governed and defined by the Nevada Constitution and state statutes². Therefore consider that

“Uniform And Equal Rate:” Article 10 Section 1(1) of the Nevada Constitution instructs that

“The Legislature shall provide by law for a uniform and equal rate of assessment and taxation, and (it) shall prescribe such regulations as shall secure a just valuation for taxation of all property, real, personal and possessory.”

The Right to Exempt: Although Article 10 Section 1(8) of the Nevada Constitution instructs that

“The Legislature may exempt by law…for taxation of all property…used for municipal, educational, literary, scientific or other charitable purposes, or to encourage the conservation of energy or the substitution of other sources for fossil sources of energy,”

And NRS 361.045 instructs that

“Except as otherwise provided by law, all property of every kind and nature whatever within this state shall be subject to taxation,”

Here we ask whether the Legislature has prescribed regulations which allow GIDs to exempt some but not other taxable properties within their boundaries from payment of their ad valorem taxes³? And if so, precisely what taxable properties?

Statutory Exemptions: NRS 361 sets forth a series of exemptions from real property taxation commencing at NRS 361.050. Properties such as⁴:

Those owned by the United States⁵;

Those owned by “the State” of Nevada⁶;

Those owned by “any county, domestic municipal corporation, irrigation drainage or reclamation district…conservation district created after July 1, 2003…or town in this State;”⁷

Those owned by parks which are used by the public without charge⁸;

Those owned by airports⁹;

Those owned by “legally created school district or…charter school within the State…devoted to public school purposes;”¹⁰

Those “used exclusively for (religious) worship, including…churches, chapels, other than marriage chapels, and other buildings;”¹¹

Those used as “cemeteries and graveyards set apart and used for and open to the public for the burial of the dead, when no charge is made for burial therein;”¹²

Those owned by “corporation(s) whose objects and purposes are religious, educational or for public charity…whose funds have been derived in whole or substantial part from grants or other donations from governmental entities or…the general public, or both;”¹³ etc.

Because all of these properties are expressly exempted by law.

NRS 318.225: What about local properties for which no express statutory exemption exists? Given NRS 318¹⁴ addresses GIDs in particular, take a long hard look at NRS 318. Where does it provide for exemptions similar to NRS 361.050, et seq? Nowhere! Doesn’t NRS 318.225 mean what it says, and say what it means¹⁵? If so, doesn’t this mean GIDs have no independent power to exempt any parcel from the ad valorem taxes it levies?

Moreover, GIDs Have Not Been Granted The Power to Legislate. Nor to Make Laws: As elsewhere discussed, given GIDs are limited purpose special districts along the lines of vector control (mosquito), library, fire, water, sewer and cemetery districts. Do you see any language which authorizes GIDs to make law or pass legislation? Take a look at our Powers All GIDs Are Authorized to Exercise discussion. Do you see anywhere where a GID can fill the alleged void the Legislature created insofar as passing legislation allowing the creation of exemptions from paying its ad valorem taxes?

Expressio Unius est Exclusio Alterius: Stated a bit differently, since NRS 318.225 is silent on the subject, can’t the Incline Village General Improvement District (“IVGID”) Board simply fill in the void by adopting its own exemptions? Because of the maxim of expressio unius est exclusio alterius [“the expression of one thing is (to) the exclusion of another”¹⁶], the answer is no. “When a statute limits a thing to be done (to) a particular mode, it includes the negative (insofar as) any other mode”¹⁷ is concerned.

Because it’s improper to “insert into statutes terms or provisions which are obviously not there.” Courts are “reluctant to second-guess the wisdom of a statute and (for this reason are)…unwilling to insert words…the court believes the Legislature left out, be it intentionally or inadvertently.”¹⁸

Given the Legislature knew how to “express (those words)…in straightforward English,”¹⁹ and here it didn’t, where the statute doesn’t address a subject it means the omission was intentional!

Dillon’s Rule²⁰: Not convinced? Let’s examine Dillon’s Rule. It “provides²¹ that (a)…governing body…possesses and may exercise only the following powers and no others:

1. Those…granted in express terms by the Nevada Constitution, statute or…charter;

2. Those…necessarily or fairly implied in or incident to the powers expressly granted²²; and,

3. Those…(absolutely) essential to the accomplishment of the declared objects and purposes of the (local governing body at issue) and not merely convenient but indispensable.”

And “if there (be) any fair or reasonable doubt concerning the existence of a power, that doubt is (to be) resolved against the governing body…and the power (be) denied!”²³

And now you know.

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1. The reader is directed to our What Are Ad Valorem Taxes discussion where he/she will learn ad valorem taxes are taxes against real property.
2. In Nevada that would be NRS Chapter 361.
3. These would be called “Locally Assessed” property taxes.
4. This list is not all inclusive. But rather, by example.
5. See NRS 361.050.
6. See NRS 361.055.
7. See NRS 361.060.
8. See NRS 361.0605.
9. See NRS 361.061.
10. See NRS 361.065.
11. See NRS 361.125.
12. See NRS 361.130.
13. See NRS 361.140.
14. Part of Title 25 of Chapter NRS 318 (see Public Organizations for Community Service).
15. : See our How The Legislature Instructs We Construe The Powers a GID May Exercise as well as How Courts Instruct We Construe The Powers a GID May Exercise discussions.
16. This maxim has been expressly recognized in Nevada in SFR Invs. Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. Adv. Op. 75, 334 P.3d 408, 414 (2014).
17. See Nunez v. Sahara Nevada Corp., 677 F. Supp. 1471, 1474 (D. Nev. 1988).
18. See Saint Alphonsus Reg’l Med. Ctr. v. Gooding Cty., 159 Idaho 84, 356 P.3d 377, 382 (2015).
19. See dissent of Justice Stevens in FMC Corp. v. Holliday, 498 U.S. 52, 66, 111 S.Ct. 403 (1990).
20. See NRS 244.137(2) and 268.001(2).
21. See NRS 244.137(3) and 268.001(3).
22. NRS 318.210 is the statutory embodiment of this portion of Dillon’s Rule: a GID Board of Trustees (“Board”) shall have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter.”
23. See NRS 244.137(4) and 268.001(4).