Wynn's art tax break endorsed by Assembly panel

CARSON CITY - A tax break for casino mogul Steve Wynn and his costly art collection has been endorsed by an Assembly panel after being revised to avoid what critics termed "tripwires and booby traps."

The Taxation Committee voted 10-1 Thursday for SB521, a proposal that opponents have termed a $15 million break for Wynn and his collection of Monets, Picassos, Van Goghs and other works. Assemblywoman Sandra Tiffany, R-Henderson, cast the lone "no" vote.

Paintings from the $300 million-plus art collection are on display at Wynn's Bellagio megaresort on the Las Vegas Strip.

The bill's biggest foe was Sen. Joe Neal, D-North Las Vegas, who made the "booby traps" comment at an earlier hearing in contending that SB521 could be used to exempt almost anything from Nevada sales and property taxes.

But Taxation Committee members amended the measure to ensure that only collections of fine art worth $25,000 or more would qualify - not antique cars, chandeliers, furniture or other old, valuable items.

The bill also allows Wynn to charge admission to his collection and still claim the tax exemption. Because he charges money, the state Tax Commission had refused last summer to give him the break.

Under the bill's provisions, Nevada residents would be given half-priced admissions to Wynn's collection and students would be allowed in for free during 60 days out of the year. That's up from 20 days in an earlier version.

Also, Wynn lobbyist Harvey Whittemore said it's possible that part of the world-class art collection may be put on temporary display in Reno or rural Nevada.

Educational materials on the collection - like photographs and essays - will be distributed to schools around the state. And Wynn will give part of the admission collections to charity.

Proponents of the exemption include Assembly Speaker Joe Dini, D-Yerington, who was the main sponsor of the original 1997 law to give a tax cushion to Wynn and other fine art collectors.

Dini said the idea was to encourage anyone - not just Wynn - to bring art to Nevada and put it on display for everyone to enjoy.

Still, Neal contended the bill would cost revenue-short Nevada millions in lost sales and property taxes that would otherwise could be spent on K-12 education.

Representatives of the Progressive Leadership Alliance and the Nevada Taxpayers Association also testified against the bill, saying the public is upset over what's seen as special privileges for the wealthy.

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