Nev. Admin. Code § 361.32 — 361.32

NAC 361.032    Interpretation of terms used in NRS
361.186 . ( NRS
360.090 , 361.068 , 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)