Property taxes on vacant land higher than with improvements? -A cautionary tale

So you think your property taxes would be lower because there are no structures on it, in the case of vacant land....Today I just got out of a Clark county assessor appeals hearing, at the State level.  Just argued about an egregious property tax increase of over 400% on now vacant land that gets assessed much higher at its “highest and best use” JUST BECAUSE the dilapidated structures were demolished.

 In the downtown Las Vegas redevelopment area, there is a large bid-ask spread between buyers and seller, and this is precisely why deals don’t get done. At the same time, this high ask, low bid environment leads assessors to utilize this information against property owners, in error. 

County appraisers only use the data available to them, and at times,  like in this case, the comparable sales and active listings of properties surrounding a subject property may not be relevant, and or maybe far superior or far inferior.  They may be too old or too small, or fall just outside of a psychological barrier for development, but not a physical barrier for development, such as a freeway, or Major Boulevard.

Even the MAYOR OF LAS VEGAS verbally told the owners that taxes will go down by demolishing the structures, in grave error in advice. One government department may not have your best interest in mind when it comes to the subsequent, consequential actions of another government department, as was the case here.

Moral of the story? Consult your property tax advisor always, and make sure they’re knowledgeable on the jurisdiction your property is in. Make sure you communicate with them regularly about planned improvements, or in this case, demolition. 

NAIOP Breakfast brought critical honest thought to DTLV Development

This morning, Real Estate leaders in the Southern Nevada region gathered at The Orleans hotel to discuss the future of Downtown Las Vegas, as an urban core. Many concepts were tossed around between panelists about the "counterculture" of Las Vegas' history and how it has impaired traditional routes to increased density, cultural identity, and gentrification.  

As the conversation got underway, discussions centered around the Arts DIstrict and the sub section of the Arts District known as "18b", as well as the ~61 acres of parcels surrounding Symphony Park. Common issues cited were that there is minimal ability to foster "less" expensive growth through adaptive reuse, because the culture of Las Vegas has always been anti-history in a way, with bulldozers and TNT leading the way into redevelopment, and therefore keeping existing stock to a minimum.

A large issue discussed was that developers are forced into ground up development, and with the current market, it doesn't "pencil".  Addressing  the pervasive issue of a lack of traditional industry, according to panelist Bob Beers, "We're in the counter-culture business, and that's why industry hasn't come here.."  

According to the panelists, not all development efforts in the downtown region have been less than stellar, according to panelist Christina Roush, "there have been pockets of brilliance..." however "[there are] huge gaps that we've totally leapfrogged over" according to panelist Chris Gonya. Playing further into this theme, it was stated by panelist Eric Strain that Downtown Las Vegas has "Cultural Icons, but the connective tissue doesn't exist..."

 The panel consisted of: Councilman Bob Beers of City of Las Vegas, Chris Gonya of Main Street Development, Christina Roush of HB Properties Investment & Development, and Eric Strain of assemblageSTUDIO.