Nevada Administrative Code › Chapter 361 - Property Tax › EXEMPT PROPERTY › Fine Art for Public Display › Section 361.032 - Interpretation of terms used in NRS 361.186

Current through June 11,
				2024
For the purposes of
				  NRS
				  361.186, the Department shall
				  interpret:
1. "Direct costs of owning
				and exhibiting the fine art" to:
(a) Except as
				otherwise provided in paragraph (a) of subsection 5 of
				NRS
				361.186, include, without limitation:
(1) Interest payments at a rate that does not
				exceed the rate set forth in
				NRS
				99.040 made by the taxpayer, or a subsidiary
				or affiliated entity of the taxpayer, on secured or unsecured indebtedness used
				to acquire the work of fine art during the fiscal year for which the taxpayer
				is claiming an exemption for the work of fine art if the taxpayer complies with
				the provisions of NAC 361.034.
(2)
				Insurance payments for the work of fine art, including, without limitation,
				insurance which provides a guaranty on the authenticity of the work of fine
				art.
(3) Costs related to the
				repair, maintenance and conservation of the work of fine art, including,
				without limitation, cleaning and framing.
(4) Costs related to the moving and storage
				of the work of fine art in the immediate area of the facility in which the work
				of fine art is displayed.
(5)
				Salaries and employee benefits for persons employed to work in the facility in
				which the work of fine art is displayed, including, without limitation, gallery
				managers, curators, security personnel, reservations agents and admissions
				personnel.
(6) Costs related to the
				operation and maintenance of the facility in which the work of fine art is
				displayed, including, without limitation, environmental control systems,
				lighting and security systems that are specific to such a facility.
(7) Rent or other lease obligations for the
				facility in which the work of fine art is displayed.
(8) Personal property taxes assessed for the
				work of art, except penalties or interest assessed on such taxes.
(9) Real and personal property taxes assessed
				for the facility in which the work of fine art is displayed, except penalties
				or interest assessed on such taxes.
(10) Allowable depreciation pursuant to
				subsection 4 of
				NRS
				361.227 for furniture or fixtures in the
				facility in which the work of fine art is displayed.
(11) Allowable depreciation pursuant to
				paragraph (b) of subsection 1 of
				NRS
				361.227 for real property on which the
				facility in which the work of fine art is displayed is located and improvements
				to such a facility.
(12)
				Communication devices that are used exclusively for informing visitors to the
				facility about the work of fine art.
(13) Costs for uniforms that persons who are
				employed by the facility in which the work of fine art is displayed are
				required to wear, including, without limitation, costs of laundering the
				uniforms.
(14) Costs associated
				with cleaning the facility in which the work of fine art is
				displayed.
(15) Commissions paid to
				credit card companies for the use of credit cards to pay admission
				fees.
(16) Advertising costs to
				notify the public of the display of the work of fine art.