SUMMARY--Provides exemption from certain sales and use taxes and property tax for certain publicly displayed works of art. (BDR 32-1720)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to taxation; providing an exemption from certain sales and use taxes and from the ad valorem tax on personal property for certain publicly displayed works of art; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 361.068 is hereby amended to read as follows:
361.0681. The following personal property is exempt from taxation:
(a) Personal property held for sale by a merchant;
(b) Personal property held for sale by a manufacturer;
(c) Raw materials and components held by a manufacturer for manufacture into products, and supplies to be consumed in the process of manufacture;
(d) Tangible personal property purchased by a business which will be consumed during the operation of the business;
(e) Livestock;
(f) Colonies of bees;
(g) Pipe and other agricultural equipment used to convey water for the irrigation of legal crops;
(h) All boats; [and]
(i) Slide-in campers and camper shells [.] ; and
(j) Fine art for public display.
2. As used in this section [, "boat"] :
(a) "Boat" includes any vessel or other watercraft, other than a seaplane, used or capable of being used as a means of transportation on the water.
(b) "Fine art for public display" means a work of art which:
(1) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;
(2) Was purchased in an arm's length transaction for $25,000 or more, or has an appraised value of $25,000 or more; and
(3) Is on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of each year for which the exemption is claimed.
Sec. 2. Chapter 374 of NRS is hereby amended by adding thereto a new section to read as follows:
1. There are exempted from the taxes imposed by this chapter the gross receipts from the sales of, and the storage, use or other consumption in a county of, works of fine art for public display.
2. As used in this section, "fine art for public display" means a work of art which:
(a) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;
(b) Is purchased in an arm's length transaction for $25,000 or more, or has an appraised value of $25,000 or more; and
(c) Will be on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of the first full calendar year after the date on which it is purchased.
Sec. 3. This act becomes effective on July 1, 1997.