Nev. Rev. Stat. § 361.186 — Collection of admission fee for exhibition of art: Conditions; reduction of exemption; payment of and credit against resulting tax

NRS  361.186    Collection of admission fee for exhibition of art: Conditions;
reduction of exemption; payment of and credit against resulting tax.
1.  A taxpayer may collect an admission fee
for the exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068 if the taxpayer offers to
residents of the State of Nevada a discount of 50 percent from any admission
fee 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.  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.
3.  A tax resulting from the operation of
this section is due with the tax otherwise due under the taxpayer’s first
statement filed pursuant to NRS 361.265
after the 15th day of the fourth month after the end of the fiscal year in
which the net revenue was received or, if no such statement is required to be
filed, under a statement of the net revenue filed on or before the last day of
the fourth month after the end of that fiscal year.
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 Nevada 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 the taxpayer files the statement 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 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 4 of NRS 361.068 .