Tax board to meet on art exemptions

CARSON CITY -- The state Tax Commission meets Thursday to adopt a regulation that will allow Wynn to claim a sales tax exemption on high-priced artwork he will display in his Las Vegas casinos.

The 1997 Legislature authorized a personal property and sales tax exemption for those who buy fine art worth more than $25,000 for public display in a private art gallery, museum or other building.

Wynn, the chairman of Mirage Resorts Inc., has purchased $285.5 million in artwork including paintings by Picasso, Matisse, Van Gogh and Renoir. Much of the work will be on display at his new Bellagio hotel-casino set to open Oct. 15.

Wynn has submitted his application for the personal property tax relief to the Clark County assessor's office. Under the proposed state regulations, he would apply to the Nevada Tax Department for the sales tax exemption.

The sales tax exemption does not apply to photographs, motion pictures, literature, furniture or jewelry.

The art work must be on display at least 20 hours a week for at least 35 weeks a year.

Sen. Joe Neal, D-Las Vegas, a candidate for governor, has asked the Tax Commission to remove part of the proposed regulation which would allow Wynn to collect on the exemption and still charge admission. Neal said the exemption should be allowed only for art in schools, libraries, museums and other public buildings where children would not be forced into a casino to view the fine art.

Meanwhile, Wynn has withdrawn his appeal to the state Board of Equalization to lower the property tax value on his Lake Tahoe estate which he is trying to sell for $25 million.

The board was scheduled to hear the case Tuesday but received a letter asking the appeal be dropped. No reason was given.

"It's our belief we probably won't own the property much longer," said Wynn's attorney Richard Glasson after the hearing. Glasson, however, would not confirm a sale was imminent.

The value of the property was initially set at $12.8 million by the Washoe County assessor's office but was reduced to $12 million by the Washoe County Board of Equalization. Glasson said the asking price remains at $25 million.

Wynn filed a further appeal with the state asking the property value be lowered to $11.4 million. He bought the parcel in 1993 for $6.5 million and demolished an existing home. He built a new house and the property includes 210 feet of sandy beach, a 150-foot long pier and a boat lift.

The property is near a parcel owned by junk bond dealer Michael Milken, a friend who helped Wynn finance his some of his casinos.

The taxable value on the Tahoe property in the last fiscal year was $8.6 million but properties at Incline Village were reappraised for the 1998-99 tax year and the taxes raised. The assessor reappraises property every five years.

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