Senate measure redraws rules for art tax break

Tuesday, March 23, 1999 | 10:08 a.m.

SB521, introduced Monday, was referred to the Taxation Committee. The panel already has heard SB90, sponsored by casino critic Sen. Joe Neal, D-North Las Vegas, which would do away with the exemption.

Mirage lobbyist Harvey Whittemore said SB521 clarifies eligibility requirements in a 1997 tax break law, and also will make several changes to benefit the public and taxpayers.

After passage of the exemption bill he sought in 1997, Wynn applied for property and sales tax breaks for his art collection which went on display when his Bellagio megaresort opened in late 1998.

But the state Tax Commission ruled that the sales tax exemption was available only if the art exhibit is free. Wynn later sued the commission seeking to overturn the regulation.

SB521 would allow Wynn to charge an admission fee and still get the exemption on sales and personal property taxes that run about $18 million a year.

But Whittemore said the bill also says any money collected over the cost of operating the gallery will go either to charitable groups or to state tax coffers.

The bill also requires a minimum of 20 days a year be set aside for free group tours of the collection by students.

The bill doesn't include language regarding reduced admission for Nevada residents, but an amendment will be offered to include that provision, Whittemore said.

The law requires the art to be displayed a minimum of 20 hours a week for 35 weeks a year to claim the exemption. The bill doesn't change this, but does make minor adjustments for art that is publicly displayed in a gallery and sold before the 35 weeks have passed.

The art in the Bellagio gallery is for sale and some pieces have been sold, Whittemore said.