In early March legislators finally filled the $887 million Nevada state budget shortfall, however, this is just a temporary measure to see the state through to 2011, and falling property values are impacting tax collections. Clark County has taken a $435 million hit on property taxes so far this year as a result of appeals being filed in relation to Clark County tax assessment rates.

Whilst many individual home owners are getting in on the act it is really the casinos and other commerical property owners that are having the biggest impact. Las Vegas Hilton’s assessed property value was dropped from $285 to $120 million, and Aliante’s was more than halved from $117 to $45 million. Even established communities in places such as Henderson are being impacted.

All 80 tax districts are facing the same problems, with 8,300 owners having filed appeals with the assessor’s office this year, compared to just 725 in 2007. In total the county is looking at a reduction of $11 billion in its taxable base. With just $16.2 billion of property values left to tax, and massive pressures on government spending, how long can Nevada continue without restructuring its tax system?