NAC361.032. Interpretation of terms used in NRS 361.186.

For the purposes of NRS 361.186, the Department shall interpret:

     1. “Direct costs of owning and exhibiting the fine art” to:

     (a) Except as otherwise provided in paragraph (a) of subsection 5 of NRS 361.186, include, without limitation:

          (1) Interest payments at a rate that does not exceed the rate set forth in NRS 99.040 made by the taxpayer, or a subsidiary or affiliated entity of the taxpayer, on secured or unsecured indebtedness used to acquire the work of fine art during the fiscal year for which the taxpayer is claiming an exemption for the work of fine art if the taxpayer complies with the provisions of NAC 361.034.

          (2) Insurance payments for the work of fine art, including, without limitation, insurance which provides a guaranty on the authenticity of the work of fine art.

          (3) Costs related to the repair, maintenance and conservation of the work of fine art, including, without limitation, cleaning and framing.

          (4) Costs related to the moving and storage of the work of fine art in the immediate area of the facility in which the work of fine art is displayed.

          (5) Salaries and employee benefits for persons employed to work in the facility in which the work of fine art is displayed, including, without limitation, gallery managers, curators, security personnel, reservations agents and admissions personnel.

          (6) Costs related to the operation and maintenance of the facility in which the work of fine art is displayed, including, without limitation, environmental control systems, lighting and security systems that are specific to such a facility.

          (7) Rent or other lease obligations for the facility in which the work of fine art is displayed.

          (8) Personal property taxes assessed for the work of art, except penalties or interest assessed on such taxes.

          (9) Real and personal property taxes assessed for the facility in which the work of fine art is displayed, except penalties or interest assessed on such taxes.

          (10) Allowable depreciation pursuant to subsection 4 of NRS 361.227 for furniture or fixtures in the facility in which the work of fine art is displayed.

          (11) Allowable depreciation pursuant to paragraph (b) of subsection 1 of NRS 361.227 for real property on which the facility in which the work of fine art is displayed is located and improvements to such a facility.

          (12) Communication devices that are used exclusively for informing visitors to the facility about the work of fine art.

          (13) Costs for uniforms that persons who are employed by the facility in which the work of fine art is displayed are required to wear, including, without limitation, costs of laundering the uniforms.

          (14) Costs associated with cleaning the facility in which the work of fine art is displayed.

          (15) Commissions paid to credit card companies for the use of credit cards to pay admission fees.

          (16) Advertising costs to notify the public of the display of the work of fine art.

     (b) Not include any rent pursuant to an agreement for the lease or loan of a work of fine art for public display.

     2. “Fees collected for exhibiting the fine art” to include, without limitation, fees paid by visitors to the facility for the rental of communication devices that inform them about the work of fine art.

     3. “Resident” to mean a person who lives in this State and possesses a valid driver’s license or other identification issued by this State.

     (Added to NAC by Tax Comm’n by R047-01, eff. 12-17-2002)