Dini defends his bill giving tax break to Steve Wynn, other art collectors

Wednesday, July 1, 1998 | 9:18 a.m.

"We are not losing money for the schools," Assembly Speaker Joe Dini said in responding to criticism from Democratic gubernatorial candidate Joe Neal. "The 2 percent (of the sales tax) that goes to the schools is still there."

Dini, D-Yerington, authored a 1997 law exempting art collectors from part of the 7 percent sales tax if they agree to display their works publicly. The exemption can be claimed by people who buy art worth more than $25,000.

Neal, a state senator from North Las Vegas, has been critical of the law because it could bring Wynn and his Mirage Resorts Inc. about $15 million in first-year sales tax breaks, along with an annual property tax exemption of nearly $3 million. He opposes giving Wynn tax breaks if he charges admission to his collection.

In the past 18 months, Wynn and his Mirage Resorts properties have purchased $285.5 million in art, including works of Picasso, Van Gogh, Gaugin, Monet, Cezanne, Matisse, Renoir, de Kooning and others.

"This has put Nevada on the map for art in the West," Dini said. "It is well worth the money."

But Neal said Monday that Dini himself is wrong. While the schools still get revenue from a 2 percent sales tax rate, Neal said the law specifically exempts another 2.25 percent sales tax that they'd normally receive.

As a result, Neal said public schools will lose about $7 million to $8 million just to Wynn and his hotels if they request the sales tax exemption. The Nevada Tax Commission meets Aug. 11 to draw up regulations for the exemption.

"This is not making Nevada an art center," Neal added. "People aren't going to make special trips to casinos to see art."

Sen. Ernie Adler, D-Carson City, anticipates the law will bring Nevada more tax revenue. Up to now, he said the state never has collected sales taxes on fine art because collectors easily could conceal their purchases.

"Wealthy people who collect art usually have several homes," Adler said. "If they had art in Nevada, they could say it was on its way to their other homes."

Adler intends to introduce legislation next year to expand the exemption so it includes works sold by Nevada artists worth more than $250.