Works of fine art for public display: General requirements. [Effective through December 31, 2005.]
1. Except as otherwise provided in NRS 374.2911, 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. In determining whether a payment made pursuant to a lease of a work of fine art is exempt under subsection 1, the value for the purpose of paragraph (a) of subsection 4 is the value of the work and not the value of possession for the term of the lease, and the calendar or fiscal year described in paragraph (a) of subsection 4 is the first full calendar or fiscal year respectively, after the payment is made.
3. During the first full fiscal year following the purchase of fine art for which a taxpayer receives the exemption provided in this section, the taxpayer shall make available, upon written request and without charge to any public school as defined in NRS 385.007, private school as defined in NRS 394.103 and parent of a child who receives instruction in a home pursuant to NRS 392.070, one copy of a poster depicting the fine art that the facility has on public display and that the facility makes available for purchase by the public at the time of the request.
4. As used in this section:
(a) “Fine art for public display”:
(1) Except as otherwise provided in subparagraph (2), means a work of art which:
(I) 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;
(II) Is purchased in an arm’s length transaction for $25,000 or more, or has an appraised value of $25,000 or more;
(III) 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, or if the facility displaying the fine art disposes of it before the end of that year, during at least two-thirds of the full weeks during which the facility had possession of it, or if the gallery, museum, or other building or area in which the fine art will be displayed will not be opened until after the beginning of the first full calendar year after the date on which the fine art is purchased, these display requirements must instead be met for the first full fiscal year after the date of opening, and the date of opening must not be later than 2 years after the purchase of the fine art being displayed; and
(IV) Will be on display in a facility that is available for group tours by pupils or students for at least 5 hours on at least 60 days of the first full fiscal year after the purchase of the fine art, during which the facility in which it is displayed is open, by prior appointment and at reasonable times, without charge; and
(2) Does not include:
(I) A work of fine art that is a fixture or an improvement to real property;
(II) Materials purchased by an artist for consumption in the production of a work of art that is to be a fixture or an improvement to real property;
(III) A work of fine art that constitutes a copy of an original work of fine art, unless the work is a lithograph that is a limited edition and that is signed and numbered by the artist;
(IV) Products of filmmaking or photography, including, without limitation, motion pictures;
(V) Literary works;
(VI) Property used in the performing arts, including, without limitation, scenery or props for a stage; or
(VII) Property that was created for a functional use other than, or in addition to, its aesthetic qualities, including, without limitation, a classic or custom-built automobile or boat, a sign that advertises a business, and custom or antique furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.
(b) “Public display” means the display of a work of fine art where members of the public have access to the work of fine art for viewing during publicly advertised hours. The term does not include the display of a work of fine art in an area where the public does not generally have access, including, without limitation, a private office, hallway or meeting room of a business, a room of a business used for private lodging and a private residence.
(c) “Pupil” means a person who:
(1) Is enrolled for the current academic year in a public school as defined in NRS 385.007 or a private school as defined in NRS 394.103; or
(2) Receives instruction in a home and is excused from compulsory attendance pursuant to NRS 392.070.
(d) “Student” means a person who is enrolled for the current academic year in:
(1) A community college or university; or
(2) A licensed postsecondary educational institution as defined in NRS 394.099 and a course concerning fine art.
Last modified: February 27, 2006