Esquire Asset Recovery, LLC
Esquire Asset Recovery, LLC
Nevada Tax Lien and Tax Deed
What Happens If I Don't Pay Property Taxes in Nevada?
| Judicial | Non Judicial | Comment | Process Period | Publish Sale | Redemption Period | Sale/NTS |
|---|---|---|---|---|---|---|
| Judicial only | 135 days | N/A | None | Court |
What happens if your Nevada property taxes are delinquent?
You might eventually lose your home.
People who own real property must pay property taxes. The government uses these taxes to pay for schools, public services, libraries, roads, parks, and the like. Typically, the tax amount is based on a property's assessed value.
When homeowners don't pay their property taxes, the overdue amount becomes a lien on the property. A lien effectively makes the property act as collateral for the debt. All states, including Nevada, have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes.
So, if your real property taxes in Nevada are delinquent, the county can eventually get the deed (title) to your home. But you'll have plenty of time to get paid up on the overdue amounts before this happens. However, if you don't pay the delinquent property taxes, the county can sell your home to a new owner at a tax sale.
When Are Nevada Property Taxes Due?
In Nevada, property taxes are due on the third Monday in August. But you can pay the taxes in installments if your taxes are more than $100.00. (Nev. Rev. Stat. §§ 361.482, 361.483.)
If you pay in installments, the payment schedule is:
the third Monday in August
the first Monday in October
the first Monday in January, and
the first Monday in March.
How Does Nevada Handle Property Tax Non-Payment?
When you don't pay your property taxes, the tax receiver will inform you that you must get current (see "Notice to the Nevada Homeowner Before Certification" below). If the amount owed isn't paid by 5 p.m. on the first Monday in June, the County Treasurer, as trustee for the state and county, gets a certificate that authorizes it to hold the property for two years. (Nev. Rev. Stat. §§ 361.570, 361.5648.)
During the two-year waiting period, called a "redemption period" (see below), you can pay off what you owe to save your home. If you don't get caught up, the county receives a deed to your home and can sell it to a new owner. (Nev. Rev. Stat. § 361.590.).
Alternatively, the County Could Use a Court Action to Collect the Delinquent Taxes or Sell the Lien
Instead of the tax sale process discussed in this article, the county could pursue a collection action in court or assign the tax lien to a different party to recover the delinquent amounts. This article focuses on the tax sale process.
Notice to the Nevada Homeowner Before Certification
Before issuing a certificate to the county, the tax receiver must mail you a notice within 30 days after the first Monday in March. This notice lets you know that the county treasurer will get the certificate subject to the two-year redemption period if you don't get paid up. (Nev. Rev. Stat. § 361.5648.)
A notice will also be published in a newspaper or posted publicly if the county doesn't have a newspaper. The notice is also put on a website. (Nev. Rev. Stat. § 361.565.)
Look Out for Legal Changes
In this article, you'll find details on property tax laws in Nevada, with citations to statutes so you can learn more. You can find Nevada's property tax sale laws in the Nevada Revised Statutes §§ 361.475 through 361.733. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you're facing a tax sale.
Redemption Period After the Certificate Is Issued
The redemption period before the county can sell your home at a tax sale is two years after the certificate is issued. (However, the redemption period for an abandoned property is one year.) (Nev. Rev. Stat. §§ 361.5648, 361.570.)
During the redemption period, you get the right to pay off the debt and prevent a tax sale, called "redeeming" the home.
Nevada law also says you can redeem up until 5:00 p.m. on the third business day before the day of the sale by a county treasurer. (Nev. Rev. Stat. Ann. § 361.585.)
How Much It Costs to Redeem Your Property in Nevada
To redeem your home, you must pay the taxes, penalties, costs, and interest on the taxes at the rate of 10% per year. (Nev. Rev. Stat. § 361.5648.)
Notice Before the Redemption Period Expires
The receiver must send you a notice at least 60 days before the redemption period expires. (Nev. Rev. Stat. § 361.5648.)
Notice Before the Tax Sale Happens in Nevada
The county must send you a notice by certified mail at least 90 days before the sale takes place. At least 20 days before the sale, notice must also be posted publicly, including one notice at the courthouse and one on the property, or published in a newspaper. (Nev. Rev. Stat. § 361.595.)
How a Nevada Property Tax Sale Works
If you don't redeem the property, the receiver issues a deed to the county treasurer as trustee for the state and county, and the county may then sell the property. (Nev. Rev. Stat. §§ 361.590, 361.595.)
The tax sale is usually a public auction where the home is sold to the highest bidder. The winning bid must be at least as much as the amount of taxes, costs, penalties, and interest due. (Nev. Rev. Stat. § 361.595.)
Redemption Period If the Local Government Wants Your Property
Any local government or the Nevada System of Higher Education may buy property the treasurer of the county holds in trust to use it for a public purpose. But they must apply to the board of county commissioners for permission to buy it. If the board approves the application, the county treasurer then gives you a notice about its intent to sell the property.
You may redeem the property within 90 days after the notice by paying the treasurer the amount of the delinquent taxes, plus penalties, interest, and costs. (Nev. Rev. Stat. § 361.603.)
Can I Get My Home Back After a Nevada Tax Sale?
If the county sells your home at a tax sale, you might be able to get your home back by filing a lawsuit to protest the sale. However, you'll be able to do this only if you have a valid reason to dispute the sale.
You must file the suit within two years after the new owner gets a deed (title) to the home. (Nev. Rev. Stat. § 361.600.) Talk to a lawyer if you want to get your home back after a new owner receives a deed to the property.
What Happens to My Mortgage in a Tax Sale?
Because a property tax lien has priority, mortgages (and deeds of trust) get wiped out if you lose your home through a tax sale process. So, If your loan isn't escrowed and you fail to pay the property taxes like you're supposed to, the loan servicer will usually advance money to pay delinquent property taxes to prevent a tax sale from happening.
Most mortgages have a clause allowing the lender to add the amount it paid to bring the taxes current to your loan balance. You'll then have to make repayment arrangements with the servicer or potentially face a foreclosure.
Getting Help
Talk to a foreclosure lawyer, tax lawyer, or real estate lawyer if you're facing a tax sale in Nevada and have questions about the process (or need help redeeming your property).
To learn more about property taxes and other aspects of homeownership in general, get Nolo's Essential Guide to Buying Your First Home by Ilona Bray, J.D., Attorney Ann O'Connell, and Marcia Stewart.