Nevada Administrative Code

NAC 361.203 “Accelerated cost recovery system” defined. (NRS 360.090, 361.320) “Accelerated cost recovery system” means a tax accounting methodology whereby normalized accounting is used to reduce or defer taxes on property and income. (Added to NAC by Tax Comm’n, eff. 9-30-88)

NAC 361.204 “Accelerated depreciation” defined. (NRS 360.090, 361.320) “Accelerated depreciation” means the accruing of greater depreciation expense in the early years of a property’s life and less in the later years. Two methods of accelerated depreciation are the: 1. Sum of the…

NAC 361.206 “Accrual accounting” defined. (NRS 360.090, 361.320) “Accrual accounting” means recording the revenues and expenses based on amounts due or owing during the report period whether received, paid or not. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.208 “Accrued depreciation” defined. (NRS 360.090, 361.320) “Accrued depreciation” means the amount of depreciation to date; when recorded as a dollar amount it may be deductible from the total plant value or investment to arrive at the rate base. [Tax Comm’n, Property Tax…

NAC 361.210 “Advance payments for gas” defined. (NRS 360.090, 361.320) “Advance payments for gas” means cash payments made to producers to finance exploration for gas. If any gas is discovered, the company making the advance payment has the right to bid on or buy all or part of t…

NAC 361.212 “Allocation to states” defined. (NRS 360.090, 361.320) “Allocation to states” means the process of assigning a portion of a unit value or system statistic to a state. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.214 “Allowance for funds used during construction” defined. (NRS 360.090, 361.320) “Allowance for funds used during construction” means the process of capitalizing interest expense on funds used during the construction period. As property does not generate earnings during…

NAC 361.216 “Amortization” defined. (NRS 360.090, 361.320) “Amortization” means the orderly writing off of an investment by making periodic charges against current income or the orderly retirement of an obligation by making periodic payments to the creditor. [Tax Comm’n, Property…

NAC 361.218 “Annuity” defined. (NRS 360.090, 361.320) “Annuity” means a series of payments to be made at equal intervals, annual, monthly or other. The payments themselves do not have to be equal. An annuity whose payments are equal is known as a level annuity. [Tax Comm’n, Prope…

NAC 361.220 “Antipollution controls” defined. (NRS 360.090, 361.320) “Antipollution controls” means regulations or standards set up under federal and state laws to correct abuses leading to the contamination of clean air and water supplies by smoke, smog, fumes, hazardous radiati…

NAC 361.222 “Apportionment to intrastate jurisdiction” defined. (NRS 360.090, 361.320) “Apportionment to intrastate jurisdiction” means the process of assigning a portion of a state value or state statistic or company statistic to geographical areas, usually tax levying districts…

NAC 361.224 “Assessment ratio” defined. (NRS 360.090, 361.320) “Assessment ratio” means the relationship of assessed value to market value or to some statutory value such as actual value or true cash value. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.226 “Band-of-investment” defined. (NRS 360.090, 361.320) “Band-of-investment” means a method used to compute a capitalization rate in the absence of market information. The simplest form of band-of-investment computation requires estimating the appropriate ratio of debt t…

NAC 361.228 “Bond discount” defined. (NRS 360.090, 361.320) “Bond discount” means an amount in dollars subtracted from the face value of a bond because the market discount rate is greater than the coupon rate. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.230 “Bond premium” defined. (NRS 360.090, 361.320) “Bond premium” means an amount in dollars added to the face value of the bond because of issuing costs or a market discount rate less than the coupon rate. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.232 “Bond rating” defined. (NRS 360.090, 361.320) “Bond rating” means a classification assigned by financial reporting institutions reflecting relative standings as to risk. The classification may include consideration of management, revenue prospects, regulatory climate,…

NAC 361.234 “Book depreciation” defined. (NRS 360.090, 361.320) “Book depreciation” means the total accruals recorded on the books of the owner of property summarizing the systematic and periodic expenses charged toward amortizing the investment of limited-life property over its …

NAC 361.236 “Book value,” “net book” defined. (NRS 360.090, 361.320) “Book value” or “net book” means the cost of a property as carried in the accounting records of the owner less the accrued depreciation reserve for that property. [Tax Comm’n, Property Tax Reg. part No. 15, eff.…

NAC 361.238 “Capital structure” defined. (NRS 360.090, 361.320) “Capital structure” means the manner in which an organization is financed, that is, the amount and kind of equity and debt that satisfies the need for money. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.240 “Capitalization process” defined. (NRS 360.090, 361.320) “Capitalization process” means the conversion of a stream of income having a certain duration into value by means of a capitalization rate that recognizes the degree of risk as between the property and the incom…

NAC 361.242 “Capitalization rate” defined. (NRS 360.090, 361.320) “Capitalization rate” means a factor, used as a divisor, which converts an income stream into an indicated value. If the income stream is expected to be of limited duration, a recapture component may be included in…

NAC 361.244 “Cash accounting” defined. (NRS 360.090, 361.320) “Cash accounting” means recording revenues actually received and expenses actually paid during the report period. See NAC 361.206 for contra. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.246 “Cash equivalent” defined. (NRS 360.090, 361.320) “Cash equivalent” means the market value of a property expressed in terms of cash. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.248 “Cash flow,” “net cash flow” or “after-tax cash flow” defined. (NRS 360.090, 361.320) “Cash flow,” “net cash flow” or “after-tax cash flow” means the sum of depreciation (and depletion, if any) and net income after all expenses, all taxes and interest on debt. Convers…

NAC 361.250 “Cash flow, before-tax” defined. (NRS 360.090, 361.320) “Cash flow, before-tax” means the cash flow plus income taxes. When applied to “cash flow,” the term “before-tax” refers only to income taxes. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.252 “Certificate of convenience and necessity” defined. (NRS 360.090, 361.320) “Certificate of convenience and necessity” means a grant of authority from a state or federal regulatory commission authorizing a company to render a public utility service, usually specifying …

NAC 361.254 “Common carrier” defined. (NRS 360.090, 361.320) “Common carrier” means a person, corporation or entity engaged in transporting persons, goods or messages for compensation over a regular route, on a certain schedule or at a published rate, all of which are subject usu…

NAC 361.256 “Compound interest and annuity tables” defined. (NRS 360.090, 361.320) “Compound interest and annuity tables” means the six sets of factors or coefficients that embrace the fundamentals of the mathematics of finance. The various factors are here called present worth o…

NAC 361.258 “Construction work in progress” defined. (NRS 360.090, 361.320) “Construction work in progress” means the total of the balances of work orders for plant, road and equipment including expenditures on research, development and demonstration projects for construction of …

NAC 361.260 “Contribution in aid of construction” defined. (NRS 360.090, 361.320) “Contribution in aid of construction” means a plant which has been contributed to a utility by a prospective customer or which has been constructed by the utility and paid for by the prospective cus…

NAC 361.262 “Debt” defined. (NRS 360.090, 361.320) “Debt” is money owed. In the usual case, borrowed money (debt) is considered to be a permanent part of the capital used in the business. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.264 “Deferred federal income taxes” defined. (NRS 360.090, 361.320) “Deferred federal income taxes” means the estimated income tax on the excess of net revenues, recognized for accounting purposes, over that reported for tax purposes. [Tax Comm’n, Property Tax Reg. part N…

NAC 361.266 “Depreciation” defined. (NRS 360.090, 361.320) “Depreciation,” in an appraisal sense, means the loss in value of an item due to all causes. Sometimes it is meant to be physical deterioration, but in a strict sense it would include functional and economic obsolescence.…

NAC 361.268 “Discount rate” defined. (NRS 360.090, 361.320) “Discount rate” means the annual percentage rate used to select present worth factors. The discount rate is one form of capitalization rate. A discount rate can be derived in two ways: 1. By use of the band-of-investment…

NAC 361.270 “Earnings-price ratio” defined. (NRS 360.090, 361.320) “Earnings-price ratio” means the ratio of earnings per share available to common stockholders of a specific company for an accounting period to the market price per share of the common stock of that company. See N…

NAC 361.272 “Economic life” defined. (NRS 360.090, 361.320) “Economic life” means the useful life of a property in contrast to its physical life which could be greater. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.274 “Economic rent” defined. (NRS 360.090, 361.320) “Economic rent” means the rent currently and typically found in the open market. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.276 “Effective rate of interest” defined. (NRS 360.090, 361.320) “Effective rate of interest” means the total cost to a company for borrowing money divided by the face value of the money. The interest expense plus the cost of floating the debt or compensatory bank balance…

NAC 361.278 “Equity” defined. (NRS 360.090, 361.320) “Equity” means the owners’ interest in the business. In monetary terms, it is the amount of money the owners have invested in common and preferred stock plus earnings of the business that have not been paid out as dividends. [T…

NAC 361.280 “Expense” defined. (NRS 360.090, 361.320) “Expense” means the gross number of dollars paid for materials or services. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.282 “Fair market value” defined. (NRS 360.090, 361.320) “Fair market value” means the highest price estimated in terms of money which a property will bring if exposed for sale in the open market allowing a reasonable time to find a purchaser who buys with full knowledge o…

NAC 361.284 “Fair return” defined. (NRS 360.090, 361.320) “Fair return” means an amount of income authorized by a regulatory agency which is considered sufficient for a utility to attract necessary additional capital while at the same time rendering adequate service. [Tax Comm’n,…

NAC 361.285 “Final reconciliation” defined. (NRS 360.090, 361.320) “Final reconciliation” means the application of the process of evaluating alternative conclusions and selecting from the indications of value derived from each of the approaches used in the appraisal process to ar…

NAC 361.286 “Fixed expenses” defined. (NRS 360.090, 361.320) “Fixed expenses” means those expenses of a business enterprise which do not vary in relation to changes in volume of output such as interest on borrowed funds, insurance or general overhead expenses. [Tax Comm’n, Proper…

NAC 361.288 “Flow-through accounting” defined. (NRS 360.090, 361.320) “Flow-through accounting” means the practice of charging to the current period only those expenses incurred during the period. A common example is the lesser income tax expense in a given period, due to the use…

NAC 361.290 “Form P report” defined. (NRS 360.090, 361.320) “Form P report” means the annual report of an operation filed by a common carrier pipeline with the Surface Transportation Board. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]

NAC 361.292 “Form 2 report” defined. (NRS 360.090, 361.320) “Form 2 report” means the annual report of an operation filed by an interstate natural gas and electric transmission company with the Federal Power Commission. [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]