Wynn beats deadline for tax break

Tuesday, June 16, 1998 | 10:47 a.m.

Mirage Resorts Chairman Steve Wynn and his hotels are using $285.5 million in artwork from the likes of Pablo Picasso, Henri Matisse and Andy Warhol to claim a property tax break under a controversial new state law.

If approved by the Clark County assessor's office, the tax break would amount to about $2.74 million in savings based on the current mill levy rate where the hotels are located. The tax break, an exemption for artwork that is worth at least $25,000 and on public display, applies to the 1998-99 property tax bill.

Wynn and his resorts filed their applications with the assessor's office on Monday, the last day to seek the exemption this year under the law passed by the Nevada Legislature in 1997. No other applications were received as of the deadline, but the county will accept any that were postmarked as of 5 p.m. Monday.

Democratic gubernatorial candidate Joe Neal, a state senator from North Las Vegas, said he would repeal the "loophole" if elected. He said the law is vague and penalizes children if they are forced to go to a casino to view artwork. But Mirage Resorts has defended the law, saying it will not cost taxpayers any money and has the support of the art community.

Most of the artwork listed by Wynn and Mirage Resorts will be displayed at its Bellagio hotel-casino, scheduled to open Oct. 15. Featured artists include Paul Cezanne, Paul Gauguin, Vincent Van Gogh, Pierre Renoir, Edouard Manet and Claude Monet. State lawmakers joked last year that the tax break bill should be dubbed "Show Me the Monet."

In addition to paintings, the requested tax exemptions also would cover pottery, vases and sculptures. Listed along with the work of the famous impressionists were paintings by Frank Sinatra and Tony Bennett. Three silkscreens Warhol did of Wynn, in red, white and gold, also were listed.

To qualify for the exemption, the art has to be on public display at least 20 hours a week for a minimum of 35 weeks a year. In addition to eliminating the personal property tax for such art, the law lowered the sales tax on such purchases from 7 to 2 percent, a 71.4 percent break.

Assistant County Assessor Jim Slark said that if the Clark County district attorney's office is satisfied that the applications meet the law, the tax break could be approved within a few weeks.