Assembly Amendment to Senate Bill No. 521 First Reprint (BDR 32-1661)
Proposed by: Committee on Taxation
Amendment Box: Replaces Amendment No. 1014.
Amends: Summary: Title: Preamble: Joint Sponsorship:
ASSEMBLY ACTION
Initial and Date | SENATE ACTION Initial and DateAdopted Lost | Adopted Lost
Concurred In Not | Concurred In Not
Receded Not | Receded Not
Amend sec. 2, pages 1 and 2, by deleting lines 7 through 20 on page 1 and lines 1 through 7 on page 2, and inserting:
"
The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.2. Except as otherwise provided in subsection 5, if a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068, the exemption pertaining to that fine art for the fiscal year must be reduced by the net revenue derived by the taxpayer for that fiscal year. The exemption pertaining to fine art for a particular fiscal year must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that fiscal year.".
Amend sec. 2, page 2, line 8, by deleting "
4." and inserting "3.".Amend sec. 2, page 2, between lines 13 and 14, by inserting:
"
4. A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the state arts council, the division of museums and history dedicated trust fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:(a) Made the donation before the date that either statement required pursuant to subsection 3 is due; and
(b) Provides to the county assessor documentation of the donation at the time that he files the statement required pursuant to subsection 3.
5. If a taxpayer qualifies for and avails himself of both of the exemptions from taxation provided by NRS 361.068 and 374.291, the reduction of the exemptions by the net revenue derived by the taxpayer, as required pursuant to subsection 2 of this section and subsection 2 of section 6 of this act, must be carried out in such a manner that the total net revenue derived by the taxpayer is first applied to reduce the exemption provided pursuant to NRS 374.291. If the net revenue exceeds the amount of the exemption provided pursuant to NRS 374.291, the remaining net revenue must be applied to reduce the exemption provided pursuant to NRS 361.068. If the net revenue is less than or equal to the exemption provided pursuant to NRS 374.291 for that fiscal year, the exemption provided pursuant to NRS 361.068 must not be reduced.
6. For the purposes of this section:
(a) "Direct costs of owning and exhibiting the fine art" does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.
(b) "Net revenue" means the amount of the fees collected for exhibiting the fine art during that fiscal year less the following paid or made during that fiscal year:
(1) The direct costs of owning and exhibiting the fine art; and
(2) The cost of educational programs associated with the taxpayer’s public display of fine art, including the cost of meeting the requirements of sub-subparagraph (IV) of subparagraph (1) of paragraph (b) of subsection 5 of NRS 361.068.
".Amend sec. 4, page 3, line 2, by deleting "shall, on" and inserting:
"shall
(a) On".
Amend sec. 4, page 3, line 11, by deleting "
5." and inserting:"
5; and(b) During any fiscal year in which he claims the exemption, make available for educational purposes and not for resale, 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 if such a poster is available for purchase by the public at the time of the request.".
Amend sec. 4, page 3, by deleting line 25 and inserting:
"(b) "Fine art for public display"
:(1) Except as otherwise provided in subparagraph (2), means a work of art which:".
Amend sec. 4, page 3, line 26, by deleting "(1)" and inserting "
Amend sec. 4, page 3, line 30, by deleting "(2)" and inserting "
Amend sec. 4, page 3, line 32, by deleting "(3)" and inserting "
Amend sec. 4, page 4, line 1, by deleting "(4)" and inserting "
Amend sec. 4, page 4, line 3, by deleting "
20" and inserting "60".Amend sec. 4, page 4, line 5, by deleting "
charge." and inserting:"
charge; and(2) Does not include:
(I) A work of fine art that is a fixture or an improvement to real property;
(II) 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;
(III) Products of filmmaking or photography, including, without limitation, motion pictures;
(IV) Literary works;
(V) Property used in the performing arts, including, without limitation, scenery or props for a stage; or
(VI) 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.".
Amend sec. 4, page 4, by deleting line 8, and inserting:
"
(1) Meets the requirements of sub-subparagraphs (I) and (II) of subparagraph (1) of".Amend sec. 4, page 4, between lines 14 and 15, by inserting:
"
(d) "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.(e) "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.
(f) "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.
".Amend sec. 5, page 4, line 39, by deleting "shall, on" and inserting:
"shall
(a) On".
Amend sec. 5, page 5, line 6, by deleting "
4." and inserting:"
4; and(b) During any fiscal year in which he claims the exemption, make available for educational purposes and not for resale, 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 if such a poster is available for purchase by the public at the time of the request.".
Amend sec. 5, page 5, by deleting line 10 and inserting:
"(b) "Fine art for public display"
:(1) Except as otherwise provided in subparagraph (2), means a work of art which:".
Amend sec. 5, page 5, line 11, by deleting "(1)" and inserting "
Amend sec. 5, page 5, line 15, by deleting "(2)" and inserting "
Amend sec. 5, page 5, line 17, by deleting "(3)" and inserting "
Amend sec. 5, page 5, line 28, by deleting "(4)" and inserting "
Amend sec. 5, page 5, line 30, by deleting "
20" and inserting "60".Amend sec. 5, page 5, line 32, by deleting "
charge." and inserting:"
charge; and(2) Does not include:
(I) A work of fine art that is a fixture or an improvement to real property;
(II) 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;
(III) Products of filmmaking or photography, including, without limitation, motion pictures;
(IV) Literary works;
(V) Property used in the performing arts, including, without limitation, scenery or props for a stage; or
(VI) 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.".
Amend sec. 5, page 5, by deleting line 35 and inserting:
"
(1) Meets the requirements of sub-subparagraphs (I) and (II) of subparagraph (1) of".Amend sec. 5, page 5, after line 41, by inserting:
"
(d) "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.(e) "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.
(f) "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.
".Amend sec. 6, page 6, by deleting lines 7 through 17 and inserting:
"
charged to nonresidents. The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.2. If a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to NRS 374.291 and the fee is collected during the first full fiscal year after the purchase of the fine art, the exemption pertaining to that fine art must be reduced by the net revenue derived by the taxpayer for that first full fiscal year. The exemption pertaining to fine art must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that first full fiscal year.".
Amend sec. 6, page 6, line 21, by deleting "calendar" and inserting "fiscal".
Amend sec. 6, page 6, line 24, by deleting "calendar" and inserting "fiscal".
Amend sec. 6, page 6, by deleting line 26 and inserting:
"
4. A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the state arts council, the division of museums and history dedicated trust fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:(a) Made the donation before the date that either return required pursuant to subsection 3 is due; and
(b) Provides the department documentation of the donation at the time that he files the return required pursuant to subsection 3.
5. For the purposes of this section:
(a) "Direct costs of owning and exhibiting the fine art" does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.
(b) "Net revenue" means the amount
".Amend sec. 6, page 6, line 27, by deleting "calendar" and inserting "fiscal".
Amend sec. 6, page 6, line 28, by deleting "calendar" and inserting "fiscal".
Amend sec. 6, page 6, by deleting
line 29 and inserting:"(1) The direct costs of owning and exhibiting the fine art; and".
Amend sec. 6, page 6, by deleting lines
30 and 31.Amend sec. 6, page 6, line 32, by deleting "
(c)" and inserting "(2)".Amend sec. 6, page 6, by deleting lines 34 through 37 and inserting:
"
of paragraph (d) of subsection 4 of NRS 374.291.".Amend sec. 7, page
7, by deleting line 1 and inserting:"
(a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4".Amend sec. 9, page 7, by deleting line 27 and inserting:
"
(a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4".Amend sec. 10, page
8, line 1, by deleting "3" and inserting "4".Amend sec. 10, page 8, line 3,
by deleting:"
paragraph (c) of subsection 3" and inserting:"
paragraphs (c) and (d) of subsection 4".Amend sec. 10, page 8, by deleting line 5 and inserting:
"
3. During the first full fiscal year following the purchase of fine art for which a taxpayer receives the exemption provided in this section, 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".
Amend sec. 10, page 8, line 7, by deleting "(a)" and inserting "
Amend sec. 10, page 8, line 11, by deleting "(b)" and inserting "
Amend sec. 10, page 8, line 13, by deleting "(c)" and inserting "
Amend sec. 10, page 8, line 22, by deleting "calendar" and inserting "fiscal".
Amend sec. 10, page 8, line 25, by deleting "(d)" and inserting "
Amend sec. 10, page 8, by deleting line 27 and inserting:
"
least 60 days of the first full fiscal year after the purchase of the fine".Amend sec. 10, page 8, line 29, by deleting "
charge." and inserting:"
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.
".