The LEGALITY of the Word "Amenity" in Nevada Law

What is an Amenity?

Just what is an amenity and what is not an amenity in our Sun City Anthem community?

That seems to a subject on another Sun City Anthem publication and a question in the minds of some or our neighbors.

Though some may argue with "semantics"....

...an "amenity"...

... IS DEFINED by NEVADA LAW.

And so...to clarify this with ALL of those who wish to debate the meaning of the word, "amenity", there can be only one definition as to how it applies to a homeowners association....

THE LEGAL ONE !

Here in Nevada there is no question about this issue.

Many years ago our Nevada Legislature and our Governor made that determination.

It was an important definition because new law would make amenities in common-interest communities (HOAs) non-taxable.

After discussion, deliberation and debate in open hearings where the public could express their views and make their arguments, the matter was decided.

In a nutshell any and all recreational facilities in a common-interest community that are limited to use and enjoyment by the members and their guests...

are...amenities.

As such those facilities, any and all structures housing them, and the land holding them, are not taxable.

This typically includes pools, tennis courts, exercise rooms, meeting rooms, etc.

Here in Sun City Anthem the developer prepared the legally required Public Offering Statement intended to entice and persuade perspective buyers to purchase a home.

It contains an extensive list of the wonderful amenities of our community....

... including the “restaurant and bar”.

Our boards of directors decided to respect and honor those promises and guarantees except for the restaurant and bar.

For better or worse our board decided the restaurant and bar areas and operations of those facilities should be rented to and controlled by a private business entity and open to the public at large.

This makes those parts of our recreational facilities a commercial enterprise, not an amenity, and requires Sun City Anthem members to pay thousands and thousands of dollars in taxes every year.

The net result is here in Sun City Anthem, unlike other HOAs such as Anthem Country Club and Rhodes Ranch...

...where their restaurant and bar areas are restricted to members only...

...we are obligated to pay those substantial taxes.

The effect is we are all taxed twice:

First, by the taxes on our homes where the assessed value is elevated because of the perceived desirability of the restaurant and bar.

Second, we are then taxed again, because the restaurant and bar are controlled and operated by a private business entity, rather then our community.

So....is this an "amenity" as some claim it to be ?

Based on Nevada law...we believe...

... IT IS NOT !

Those who are uncomfortable with this state of affairs would seem to have at least two options:

First, they might approach our board of directors and try to persuade the board to comply with the promises and guarantees in the Public Offering Statement by restricting use of the restaurant and bar to members only like all the other amenities in our community.

Or

Secondly, they might approach our legislators and the Governor in the upcoming sessions early next year and try to persuade them to change State law.

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We want to sincerely thank our valued reader, Tim Stebbins, who is considered by many, an EXPERT on Nevada Homeowner Association laws, for authoring this excellent editorial.

He attends all Common Interest Communities Commission meetings, Ombudsman meetings, and the Nevada legislative sessions.