There have been many Truckee STR homeowner questions about the Board of Equalization (BOE)571-STR (Short Term Rental) form that was mailed out in January of this year by the Nevada County Assessor’s office to homeowners identified as having a short term rental (source was the STR permit issued by Truckee).
Given Visit Truckee-Tahoe’s relationship with our VIP Partner, Nevada County and Supervisor Hardy Bullock, we spoke with Nevada County Assessor Rolf Kleinhans to obtain more information and to clarify misunderstandings. The content of this article was quality checked and verified by Kleinhans office.
BOE-571-STR Form FAQs
I received a Notice to file letter along with a BOE-571-STR (Short Term Rental) Property Statement and a Supplemental Schedule from the Nevada County Assessor’s office, what is it?
The BOE-571-STR (Business Property Statements for Short Term Rentals) is a formal request from the Assessor’s office to report personal property used in the short term rental.
Is this a new requirement?
This is the first year that Nevada County has sent out an Official Request to File letter to all Short Term Rental Property Owners that we identified. The short term rental market has grown and expanded over the years and Nevada County is requesting that everyone who received a request to file to please complete the form to the best of their ability.
Why is the personal property in my short term rental assessable for property taxation?
Under the California State Constitution, all property is subject to taxation unless otherwise exempted. Generally, personal property and personal effects like furniture, appliances, cookware, bedding, and televisions are exempt from taxation; however the exemption does not apply to personal property used in connection with a trade, profession, business, or for the production of income. A short term rental is an income producing business, therefore, the personal property contributing to the income production does not receive the exemption.
What and how should I report equipment used in the Short Term Rental?
Nevada county included a “Supplemental Schedule” to Form 571-STR to make it easier for business owners to report costs. The general instructions on the Nevada County Notice to file letter asks STR owners to “Please complete BOE 571-STR Parts 1 and 2 and the Declaration by Assessee, then do not fill in the back of the form and instead complete the Supplemental Schedule.
There are three columns on the Supplemental Schedule for Furniture, Equipment and Other Equipment with three tables listing Year Acquired, Original Cost and Description. If you have the original costs you can report them using the tables.
If you don’t have original costs you may estimate the value for each category based on what you could sell the furnishings, equipment and recreation equipment on the open market such as Facebook marketplace; please write an estimate of value next to each category and also please write that it’s your opinion of value as of 1/1/2025. Note: We are in the process of updating the Supplemental Schedule to hopefully make it more clear and easier for STR owners to report going forward.
Examples of Furniture
- Armoires, dressers, chests, nightstands, Artwork, decorations, beds, benches, chairs, tables, shelves, bookcases, books, clocks, daybeds, fans, lamps, patio furniture, sofas, mirrors, storage bins, tvs
Examples of Equipment
- Free standing kitchen appliances, bakeware, dishes, cutlery, washer and dryer, vacuum cleaners
Examples of Other Equipment
- Bicycles, Yard games, kayaks, paddle boards, spa (above ground), sports equipment
What if I never operated a Short Term Rental?
Nevada county also included a “Business Sold, Closed, or Moved” form on the backside of the Notice to File letter that was sent along with the BOE 571-STR. If you have never operated a Short Term Rental (and don’t have a short term rental permit), you can complete the Business Sold, Closed or Moved Form found on the backside of the Notice to File letter and return to the Assessor’s office per the instructions on the form.
If you have a valid Short Term Rental Permit issued by Town of Truckee then please complete the BOE 571-STR form and return to Nevada County and also write that you haven’t begun Short Term Rental activity yet.
How is the Assessed Value of Short Term Rental Determined?
- The Assessor is required to annually assess most taxable personal property at 100% of its fair market value as of the lien date – January 1st each year. The Assessor often trends forward actual owner-reported costs to a present replacement cost estimate using trending tables provided by the State Board of Equalization. We then reduce the trended costs to reflect normal or actual depreciation to determine a market value estimate.
- Short Term Rentals to be set up as Unsecured Assessment
- Once Nevada County Assessor's Office receives the BOE 571-STR and Supplemental Schedule we will evaluate the costs reported and calculate the value and set up an unsecured assessment if applicable.
What is the tax rate?
- California's property tax rate is 1% of assessed value (also applies to real property) plus any voter approved debt.
- Please provide an example of amount owed with this assessment
- The amount of taxes you will owe will depend on the amount of the assessment and the specific tax rate in your area. For example, if your personal property is assessed for $10,000, your personal property tax bill should be roughly $110.00 to $120.00 (1% of assessed value plus voter approved debt).
How often must the tax be paid?
- This is an annual tax, due on August 31st of each year. Tax bills for unsecured assessments will be generated by the Tax Collector at the end of July and are due August 31st.
- Describe Lien Date: The lien date is January 1 every year and is also the date property taxes for any fiscal year become a lien against a business property owner. Where personal property is concerned, the lien is placed on the owner of the personal property (not the real property). An unsecured assessment is typically used when assessing personal property.
How are the taxes used?
Approximately 56% of the property tax dollars are used to support junior colleges and Kindergarten through 12th Grade schools, 30% is allocated to city government and other special districts, while 14% is allocated to support county government. You can learn more about how personal property taxes are used by going to the Nevada County Auditor-Controller's Property Tax page.
Who do we contact if we need help completing the BOE 571-STR form or have additional questions?
Nevada County Assessor’s Business Property Division
- Phone: (530) 265-1259
- Email: business.property@nevadacountyca.gov
- Physical Address: 950 Maidu Avenue, Suite 290, Nevada City, CA 95959
- Nevada County Assessor's Office webpage Nevada County Short Term Rentals - FAQs
- Nevada County Press release regarding Taxation for Short Term Rentals - January 15, 2025
Who do we contact if we need more information regarding tax rates?
Nevada County Auditor-Controller's Office
- Phone: (530) 265-1218
- Email: auditor.controller@nevadacountyca.gov
- Physical Address: 950 Maidu Avenue, Suite 230, Nevada City, CA 95959
- Nevada County Auditor Controller – Property Tax Division webpage
