Bellagio art trade-off: More kids' access for tax break

CARSON CITY -- An Assembly committee Thursday agreed Mirage Resorts Chairman Steve Wynn should allow more access for Nevadans and schoolchildren to his $300 million art collection at the Bellagio -- if he wants to cement a tax exemption.

The Taxation Committee, with one member dissenting, approved Senate Bill 521 but attached new conditions to those seeking an exemption.

Assemblyman Harry Mortenson, D-Las Vegas, said the Legislature must act or Nevada could lose a valuable art collection. He suggested other casinos such as Mandalay Bay and the Venetian may follow Wynn's lead and "create a mecca for the arts" in Southern Nevada.

The lone "no" vote was cast by Assemblywoman Sandra Tiffany, R-Henderson, who said this was "not good public policy" in fashioning a tax bill to benefit one person. "There's only one property that can qualify for this tax exemption," she complained.

"Nobody in there had any damn guts," she said after the committee meeting.

Lobbyists say Wynn already qualifies for the tax break because he is an art dealer with inventory. They were supported by a legal opinion from attorneys for the Legislature who said the art could be classified as inventory and subject to the sales and personal property exemptions.

The committee accepted an amendment from Assemblyman Bernie Anderson, D-Sparks, that Wynn must allow Nevadans in at half price for the hours the exhibit is open.

The Bellagio charges $12 a person now and it is open from 9 a.m. to midnight. The Senate bill allowed the price reduction for residents for at least 25 hours a week between 6 p.m. and 12 a.m.

Harvey Whittemore, lobbyist for Wynn, said he did not see the expansion of the hours as being a major problem. He said he would suggest it be accepted.

The original bill required the art owner to allow free group tours by students for at least five hours for at least 20 days a year, but the committee extended it to 60 free days a year. It also allows for university art students to qualify for the free viewing.

Anderson first proposed free student tours be expanded to 90 days a year, but he then said, "I saw Whittemore turn white." After he suggested 60 days, he said Whittemore still blanched.

Whittemore said the enlargement of the student tours "is much more significant than I anticipated." He said he would have to talk with Wynn.

Whittemore also said discussions are under way about bringing part of the Wynn collection to Reno and some other rural counties for a showing.

Revenue collected from admission, minus expenses, must be sent to charity or paid to the state in taxes. But the staff of the committee said the deductions were so broad, it was unlikely there would be any money left for taxes.

Critics of the bill say it is another tax break for the rich. Sen. Joe Neal, D-North Las Vegas, the most vocal foe, suggested $15 million in tax revenue is lost. And of that amount, $6.7 million would be going to the public schools.

Supporters say there's no loss since the tax has never been collected.

The bill goes to the floor of the Assembly for a vote next week.

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