Since this amount is so large, it seems unlikely that the owner of a casino would pay any tax on the works of art. The bill expands the exemption for works of fine art that are leased for display. Under provisions of S.B. 521, the lease would be exempt since the taxable value is based on the price of the work rather than the value of the lease. Property that is held as inventory by a merchant is exempt from taxes under current Nevada law. The bill makes it clear that works of art that are for sale are considered inventory items even though a fee is charged for viewing them.
Current law requires that art be displayed to the public in order to qualify for a tax exemption.
Senate Bill 521 relaxes this requirement to allow the exemption to apply to art that is acquired up to two years before the opening of the gallery in which it will be displayed. The bill also makes it clear that the exemption applies to art that is held only part of the year, providing it is on display for two-thirds of that time. Finally, there is one provision in the bill that may require clarification. I am not certain of the intent of this provision. If so, these sections may need to be examined more closely.