Have construction costs in Washoe County increased?

A local homeowner is taking his appeal of last summer’s “de facto property tax increase”, which impacted most local homeowners, to Nevada’s State Board of Equalization. See the Reno Gazette Journal’s story: Boost in Washoe home taxable values to be appealed to the state

The crux of the appeal centers on whether a national appraisal service was correct when they said local construction costs have increased 5 – 6 percent.

I know we have some builders that read this blog. What do you think? Have construction costs increased? If so, by how much?

Another interesting factoid form the piece: Did you know that Nevada is the only state that does not use market values to value buildings?

10 comments

  1. Sully

    Did you know that Nevada is the only state that does not use market values to value buildings?

    Yep, sure did. It’s a built in inflation increase every year – or perhaps was supposed to be. Prior to the boom housing in Reno area was almost flatline with 1 – 2% value increase per year, some years it went negative. So there was no CA style value added tax increases.

    This most likely came about because of NV tax laws or lack of them whichever applies.
    Like CA – NV has to pay more and more each year for govt salaries, benefits and pensions. However, doing it with a declining revenue base.

    Watching CA and its current ping pong attempt at fixing the massive pension problem – current est. at $6600 per person just to fill the deficit – tells me that the politicians are still beholden to the public unions and will unlikely do anything on their own. Hence, the possibility of a Prop 13 style pension reform initiative. Since the average family of four doesn’t pay $26,400 in taxes a year – something will have to give as kicking the can down the road will not work anymore. In this case, the outcome in CA will probably be the same outcome in the 49 other states as well.

    In regards to building costs they have gone up just in material prices alone, although I don’t know by how much. With unemployment running over 20% in construction industry I doubt wages have much effect on costs.

  2. Transplant

    There’s nothing more boring than a blowhard who has to inject his political beliefs into every subject he talks about. “Hey, what do you think about the cost of construction?” “DIRTY STINKING UNIONS!!!!!”

  3. Sully

    Transplant, I wasn’t referring to unions in regards to construction costs. I was referring to the methods for figuring property taxes.
    BTW – if you think unions are not effecting your financial future then go over to this site and read up on some of the things going on (unless of course you are one of the beneficiaries of public unions).

    http://www.pensiontsunami.com/public.php

  4. Matthew

    Transplant, Sully wasn’t decrying unions. He was just pointing out that their participation will likely exclude certain outcomes.
    It is a very relevant point in the discussion of *any* fiscal policies because unions comprise many of the largest (and *the* largest) political donors and action committees in this country.

  5. Rebrunner

    “Slly wasn’t decrying unions.” Sure he was. Sully always decrys unions. Especially public employee unions.
    Sully says: “NV has to pay more and more each year for govt salaries, benefits and pensions.”
    Oh please. Even the LV RJ, which never saw a union it couldn’t attack, acknowledges that at every level of government, Nevada public payroll and benefits have been substantially reduced since 2008. Sully is one of those guys who won’t ever let the facts get in the way of his opinion.

  6. Sully

    Rebrunner, are you really as naivete as you sound? Laying off employees doesn’t reduce the cost of benefits – just the overall cost for benefits and payroll. In the meantime, the taxpayer has to do with less govt services. Apparently, you didn’t bother reading the link I offered as this is hardly just “my opinion”.

    Marin County has an article that shows the breakdown for pensions:

    http://www.marinij.com/marinnews/ci_19836875

    In the meantime public unions throughout the country are doing nothing to help resolve the burdensome lucrative pensions at the top end of the food chain, which are causing most of the problems.

    Additionally, FDR and George Meany were not in favor of public unions – “All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. ” FDR

    “The main function of American trade unions is collective bargaining. It is impossible to bargain collectively with the government. Unions, as well as employers, would vastly prefer to have even Government regulation of labor-management relations reduced to a minimum consistent with the protection of the public welfare…” George Meany on the eve of the AFL-CIO merger.

  7. DownButNotOut

    Right on, Sully. The argument could be made that government unions are what’s wrong with this country.

  8. DownButNotOut

    Well that and too many lawyers.

  9. Waldo

    Hey Sully, talking about all this government spending. Did you see where a whopping 6,700 Washoe County Republicans braved the 55 degree weather to come out and attend the party caucus, and now the Nevada State Republican party, the bastion of reduced government spending, is talking about having a party primary election in 2016. A primary that is estimated to cost $1,500,000, which, of course, they want the State of Nevada to pay for.
    Gotta love it Sully, gotta love it.

  10. Sully

    Waldo, yeah I read it. Does it surprise you? Probably the Gingrich supporters in denial, who knows. One option was to move the primary from June to Feb. – not sure that would really accomplish much, but better than paying for a separate one in Feb and regular one in June.

    Hey, I never took sides on who can waste taxpayers money the fastest – as it appears to be a dead heat. 🙂

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