Wednesday, May 26, 1999 | 9:36 a.m.
CARSON CITY --The Senate Taxation Committee voted 4-3 Tuesday to approve the latest version of a bill that guarantees Mirage Resorts Chairman Steve Wynn a tax exemption on his $300 million art exhibit at the Bellagio.
Final passage in the full Senate was expected today, and the bill will head for Gov. Kenny Guinn's desk.
Pete Ernaut, chief of staff for Guinn, said, "As hotly debated as this was, I think they have come up with a pretty good bill."
He said he did not think Guinn has any "heartburn" in signing Senate Bill 521.
The bill allows those with major art exhibits to charge a fee and still be eligible for the property and sales tax exemption. After the law was first passed in 1997, the state Tax Commission determined the exhibit must be free to qualify for the tax break.
Wynn sued, claiming the Tax Commission overstepped its authority. That case is still pending in court in Las Vegas.
The bill requires Nevadans to get a 50 percent discount off the $12 admission charge to the Bellagio exhibit. Wynn also must provide at least five hours for each of 60 days a year for free tours by schoolchildren and art students.
He must provide, free of charge to the public schools, a poster of one of the paintings in the gallery.
If Wynn makes money on the admission fees, he must either pay a tax on it or donate it to groups, including the Nevada State Council on the Arts, the state Division of Museums and History or museums with exhibits that relate to either children or nature.
One of those committee members voting against accepting the Assembly amendments was Sen. Joe Neal, D-North Las Vegas, a longtime Wynn critic. Calling the bill an exemption for the wealthy, Neal has estimated Wynn will receive a $15 million benefit.
Harvey Whittemore, lobbyist for Wynn, said the casino owner is an art dealer and already is eligible for the exemption because this is inventory which is not subject to tax.
The Assembly, in its amendment, extracted more concessions out of Wynn than the Senate initially put in the bill.
Whittemore said, "In conversations with Steve, he agreed to the Assembly amendments. He was pleased with the general direction the bill took."
He said he expected the full Senate to follow the Taxation Committee's lead.
"Depending on the expenses associated with the expansion of the new facility, there may well be funds available to the entities listed in the bill," Whittemore said.
Others on the committee voting against the bill were Ann O'Connell, R-Las Vegas, and Bob Coffin, D-Las Vegas.
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