Ought Six
Membership Revoked
You must own the land free & clear (no mortgages, liens or use of the land as security for a loan), permanently reside there in a single-family dwelling, and pay 5% of the property's assessed value to the county tax assessor, but you only have to do this once in your lifetime. The benefits seem well worth it, if you can swing it.
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Allodial Title in Nevada
In 1997, the Nevada Legislature created a new section of statutes within the property tax statutory scheme. Nevada Revised Statutes (NRS) 361.900 to 361.920. These statutes, which are entitled "Allodial Title," became effective on July 1, 1998.
Those who can apply for allodial title is limited:
A person who owns and occupies a single-family dwelling, its appurtenances and the land on which it is located, free and clear of all encumbrances, except any unpaid assessment for a public improvement, may apply to the county assessor to establish allodial title to the dwellings, appurtenances and the land on which it is located. One or more persons who own such a home in any form of joint ownership may apply for the allodial title, jointly if the dwelling is occupied by each person included in the application.
NRS 361.900 (1)(emphasis added). After the county assessor receives the application, he transfers it to the state treasurer. NRS 361.900 (2).
The state treasurer then determines the amount which is required to be paid by the property owner to establish allodial title. This is done by using "a tax rate of $5 for each $100 of assessed valuation on the date of the application." NRS 361.900 (3). The treasurer must calculate, separately, the amount that must be paid in a lump sum, and for the payment in installments over a period of not more than 10 years. Id. These "amounts must be calculated to the best ability of the state treasurer so that the money paid plus the interest or other income earned on that money will be adequate to pay all future tax liability of the property for a period equal to the life expectancy of the youngest titleholder of the property." Id.
If the property owner pays the lump sum amount calculated by the state treasurer, and submits proof that the home is a single-family dwelling occupied by the homeowner, and that the property is free and clear of all encumbrances except any unpaid assessment for a public improvement, "the state treasurer shall issue a certificate of allodial title[.]" NRS 361.900 (5). If the property owner enters into an agreement with the state to make installment payments (in lieu of a lump sum payment), the issue of a certificate of allodial title occurs upon the receipt by the treasurer of the last payment. NRS 361.900 (6), (8).
Once a property owner receives a certificate of allodial title, he is relieved from the payment of all further property taxes, "unless the allodial title is relinquished by the homeowner or his heirs." NRS 361.905 (2). Instead, the state treasurer is responsible for the payment of the taxes due. NRS 361.905 (3).
Once allodial title is established, it "is valid for as long as the homeowner continues to own the residence unless he chooses to relinquish the allodial title[.]" NRS 361.910 (1). Upon the death of an allodial title holder, the heir or heirs can reestablish allodial title by using the same procedure that the original property owner used. NRS 361.910 (1)-(9).
The holder of an allodial title can voluntarily relinquish it at any time. NR8 361.915 (1). The title shall be relinquished if the property is sold, leased or transferred by the allodial title holder; the allodial title holder no longer occupies the dwelling for 150 days; or the home is converted to anything other than a single-family dwelling occupied by the owner. Id. If allodial title is relinquished, either voluntarily or otherwise, the property owner receives a refund of the unused portion of the payments made to originally establish the allodial title. NRS 361.915 (3)-(4). Once the allodial title is relinquished, the property owner is once again responsible for all future property taxes. NRS 361.915 (5).
The importance and benefit of establishing allodial title extends beyond the non-payment of property taxes. It also has significance in the area of homestead law. Pursuant to NRS 115.010 (2), the available homestead exemption in Nevada is $125,000. However, if allodial title has been established and not relinquished, the homestead exemption "extends to all equity in the dwelling, its appurtenances and the land on which it is located." Id. (emphasis added). Furthermore, although the regular homestead exemption provides no protection against legal process to enforce the payment of obligations contracted for the purchase of the property, or for improvements made thereon (including any mechanic's lien lawfully obtained), or for legal taxes, or for any mortgage or deed of trust executed upon the property, NRS 115.010 (3), the holder of an allodial title is fully exempt from all of these under the homestead laws. NRS 115.010 (4). The only area within the homestead laws wherein allodial title fails to provide an extra benefit is in the realm of civil and criminal forfeiture of property. NRS 115.010 (5). Similar to all property in Nevada, property held by allodial title is subject to forfeiture for criminal conduct.
Despite this one area, allodial title provides significant benefits to those who qualify for it. These benefits are tremendous in the areas of property tax and homestead. If one can pursue allodial title, it may well be worth the cost to do so.
==============================================
Allodial Title in Nevada
In 1997, the Nevada Legislature created a new section of statutes within the property tax statutory scheme. Nevada Revised Statutes (NRS) 361.900 to 361.920. These statutes, which are entitled "Allodial Title," became effective on July 1, 1998.
Those who can apply for allodial title is limited:
A person who owns and occupies a single-family dwelling, its appurtenances and the land on which it is located, free and clear of all encumbrances, except any unpaid assessment for a public improvement, may apply to the county assessor to establish allodial title to the dwellings, appurtenances and the land on which it is located. One or more persons who own such a home in any form of joint ownership may apply for the allodial title, jointly if the dwelling is occupied by each person included in the application.
NRS 361.900 (1)(emphasis added). After the county assessor receives the application, he transfers it to the state treasurer. NRS 361.900 (2).
The state treasurer then determines the amount which is required to be paid by the property owner to establish allodial title. This is done by using "a tax rate of $5 for each $100 of assessed valuation on the date of the application." NRS 361.900 (3). The treasurer must calculate, separately, the amount that must be paid in a lump sum, and for the payment in installments over a period of not more than 10 years. Id. These "amounts must be calculated to the best ability of the state treasurer so that the money paid plus the interest or other income earned on that money will be adequate to pay all future tax liability of the property for a period equal to the life expectancy of the youngest titleholder of the property." Id.
If the property owner pays the lump sum amount calculated by the state treasurer, and submits proof that the home is a single-family dwelling occupied by the homeowner, and that the property is free and clear of all encumbrances except any unpaid assessment for a public improvement, "the state treasurer shall issue a certificate of allodial title[.]" NRS 361.900 (5). If the property owner enters into an agreement with the state to make installment payments (in lieu of a lump sum payment), the issue of a certificate of allodial title occurs upon the receipt by the treasurer of the last payment. NRS 361.900 (6), (8).
Once a property owner receives a certificate of allodial title, he is relieved from the payment of all further property taxes, "unless the allodial title is relinquished by the homeowner or his heirs." NRS 361.905 (2). Instead, the state treasurer is responsible for the payment of the taxes due. NRS 361.905 (3).
Once allodial title is established, it "is valid for as long as the homeowner continues to own the residence unless he chooses to relinquish the allodial title[.]" NRS 361.910 (1). Upon the death of an allodial title holder, the heir or heirs can reestablish allodial title by using the same procedure that the original property owner used. NRS 361.910 (1)-(9).
The holder of an allodial title can voluntarily relinquish it at any time. NR8 361.915 (1). The title shall be relinquished if the property is sold, leased or transferred by the allodial title holder; the allodial title holder no longer occupies the dwelling for 150 days; or the home is converted to anything other than a single-family dwelling occupied by the owner. Id. If allodial title is relinquished, either voluntarily or otherwise, the property owner receives a refund of the unused portion of the payments made to originally establish the allodial title. NRS 361.915 (3)-(4). Once the allodial title is relinquished, the property owner is once again responsible for all future property taxes. NRS 361.915 (5).
The importance and benefit of establishing allodial title extends beyond the non-payment of property taxes. It also has significance in the area of homestead law. Pursuant to NRS 115.010 (2), the available homestead exemption in Nevada is $125,000. However, if allodial title has been established and not relinquished, the homestead exemption "extends to all equity in the dwelling, its appurtenances and the land on which it is located." Id. (emphasis added). Furthermore, although the regular homestead exemption provides no protection against legal process to enforce the payment of obligations contracted for the purchase of the property, or for improvements made thereon (including any mechanic's lien lawfully obtained), or for legal taxes, or for any mortgage or deed of trust executed upon the property, NRS 115.010 (3), the holder of an allodial title is fully exempt from all of these under the homestead laws. NRS 115.010 (4). The only area within the homestead laws wherein allodial title fails to provide an extra benefit is in the realm of civil and criminal forfeiture of property. NRS 115.010 (5). Similar to all property in Nevada, property held by allodial title is subject to forfeiture for criminal conduct.
Despite this one area, allodial title provides significant benefits to those who qualify for it. These benefits are tremendous in the areas of property tax and homestead. If one can pursue allodial title, it may well be worth the cost to do so.
