Most of us are familiar with the saying “What happens in Vegas, stays in Vegas”. This advertising slogan was adopted by the Las Vegas Convention and Visitors Authority in 2002, after their decision to shed the family image. It worked! Most of us immediately know the slogan and relate it back to Las Vegas (if the “Vegas” part didn’t already give it away). Movies like “What happens in Vegas” and more recently “Hangover” reinforce the point that “What happens in Vegas, stays in Vegas”.
The story of “What happens in Vegas” (2007) revolves around two strangers who wake up to discover that they have gotten married after a night on the town and one of them has won a huge jackpot. Neither can remember all the details. “Hangover” (2009), which is along the same line, revolves around a group of guys who go to Vegas for a bachelor party and wake up to find that they lost the groom. Again, none of them can remember what happened the night before.
So how does this relate to property taxes? Great question! Let’s start with the property tax process for real estate in Las Vegas. The tax year officially starts on July 1st. In December, assessment notices are sent. Appeals on those assessments are normally heard January through March of the following year. In other words, the completion of values for real estate can take up to 9 months. When you are articulating why you want a reduction in value, you have to rely on what you may have been thinking 6-9 months earlier. It is kind of confusing…. like trying to remember what happened after a night on the town in Las Vegas.
I wonder how well this methodology worked right before the recent real estate crash. From the time the valuation process began in July, 2007, to the time the last appeals were heard in March of 2008 a lot had changed. Real estate values had plummeted. In mid-2007 would anyone have been able to accurately estimate what would happen to those real estate values? If so, I recommend they find the nearest casino and begin betting. In fact, they need to seriously consider moving to Las Vegas.
When it comes to property taxes, it may be a good thing that “What Happens in Vegas, Stays in Vegas”.