Wynn’s art tax break attacked as vague, expensive and too broad

Kiley Russell

Thursday, April 29, 1999 | 6:38 a.m.

CARSON CITY - A tax break for casino mogul Steve Wynn and his costly art collection is full of "loopholes, tripwires and booby traps," Sen. Joe Neal warned an Assembly panel Thursday.

Neal, D-North Las Vegas, a perennial casino industry critic, added SB521 could be used to exempt almost anything from Nevada sales and property taxes.

Advocates of SB521 said the bill makes it clear that state law already gives sales tax breaks on Wynn's world-class art collection - and would apply to anyone else with $25,000 or more in fine art.

The bill would allow Wynn to charge admission to his $300 million collection of Monets, Picassos, Van Goghs and other works on display at the Bellagio megaresort in Las Vegas and still claim

Wynn filed a lawsuit in response to a decision by the state Tax Commission last summer to deny him the tax break that would've saved him - according to Neal - an estimated $15 million.

Commissioners rejected the tax exemption because Wynn charges admission to his Bellagio collection.

Neal made the art tax break for Wynn one of the primary issues of his unsuccessful campaign for governor last year.

Neal insists that the bill is so broadly written that classic cars, expensive rugs and antique furniture worth over $25,000 and put on public display for a year would qualify for the tax exemptions.

"In other words, any item that is worth at least $25,000 and is made of textiles, clay, glass or similar materials can be considered a work of art," Neal said told the Assembly Taxation Committee.

The bill's supporters, however, said it wouldn't apply to anything but fine art, and that the tax break is encourage anyone - not just Wynn - to bring art to Nevada and put it on display for everyone to enjoy.

"I think our original concept was to put something into the arts and try to help the arts throughout the state of Nevada," said Assembly Speaker Joe Dini, D-Yerington. Dini was the primary sponsor of the original 1997 law to give a tax cushion to Wynn and other fine art collectors.

"Sure, you criticize who did it and that it's associated with the casino industry, but who else can afford to do it?" Dini asked.

Under the bill's provisions, Nevada residents would be given half-priced admissions to Wynn's collection and students would be allowed in for free during 20 days out of the year.

But Assemblywoman Dawn Gibbons, R-Reno, wasn't convinced.

"How are our children in the north going to benefit? What about my kids?" Gibbons asked.

Wynn lobbyist Harvey Whittemore said educational materials on the collection - like photographs and essays - will be distributed to schools around the state at Wynn's expense.

Wynn also will grant part of overall art admission collections to charity.

Still, Neal blasted the plan as "a rather transparent subterfuge" that would cost the revenue-short state millions in lost sales and property taxes that would otherwise could be spent on K-12 education.

Bob Fulkerson of the Progressive Leadership Alliance and Lucille Lusk of the Nevada Taxpayers Association also testified against the bill.

"We are against giving tax breaks to private art collectors. If an individual or an institution are wealthy enough to buy art, they're wealthy enough to pay taxes," Fulkerson said, adding that in this tight budget year many valuable programs are going underfunded and it's not a time for tax cuts.

Lusk said the public is "seething" over what they see "as specialized legislation and special privileges" granted to the very rich.

Neal said he wouldn't ask the committee to kill the bill outright, but suggested a public vote on SB521.

"I don't expect Mr. Wynn to take me up on this challenge - I think he realizes just how popular this proposal will be," he said.