Nev. Rev. Stat. § 361.68 — Business inventories and consumables, livestock, bees, certain pipe and agricultural equipment, boats, campers, fine art for public display and certain personal property of nonresidents exempted; establishment of de minimis exemption for personal property

NRS  361.068    Business inventories and consumables, livestock, bees, certain
pipe and agricultural equipment, boats, campers, fine art for public display
and certain personal property of nonresidents exempted; establishment of de
minimis exemption for personal property.
1.  The following personal property is
exempt from taxation:
(a) Personal property held for sale by a
merchant;
(b) Personal property held for sale by a
manufacturer;
(c) Raw materials and components held by a
manufacturer for manufacture into products, and supplies to be consumed in the
process of manufacture;
(d) Tangible personal property purchased by a
business which will be consumed during the operation of the business;
(e) Livestock;
(f) Colonies of bees;
(g) Pipe and other agricultural equipment used to
convey water for the irrigation of legal crops;
(h) All boats;
(i) Slide-in campers and camper shells;
(j) Except as otherwise provided in NRS 361.186 , fine art for public display;
and
(k) All personal property that is:
(1) Owned by a person who is not a
resident of this state; and
(2) Located in this state solely for the
purposes of:
(I) An exhibit that is used in a
convention or tradeshow that is located in this State; or
(II) A display, exhibition,
carnival, fair or circus that is transient in nature and is located in this
State for not more than 30 days.
2.  The Nevada Tax Commission may exempt
from taxation that personal property for which the annual taxes would be less
than the cost of collecting those taxes. If such an exemption is provided, the
Nevada Tax Commission shall annually determine the average cost of collecting
property taxes in this state which must be used in determining the
applicability of the exemption.
3.  A person claiming the exemption
provided for in paragraph (j) of subsection 1 shall:
(a) On or before June 15 for the next ensuing
fiscal year, file with the county assessor an affidavit declaring that the fine
art will, during that ensuing fiscal year, meet all the criteria set forth in
paragraph (b) of subsection 4; and
(b) During any fiscal year in which the person
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.
4.  As used in this section:
(a) “Boat” includes any vessel or other
watercraft, other than a seaplane, used or capable of being used as a means of
transportation on the water.
(b) “Fine art for public display”:
(1) Except as otherwise provided in
subparagraph (2), means a work of art which:
(I) Is an original painting in oil,
mineral, water colors, vitreous enamel, pastel or other medium, an original
mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber,
wood, metal, plastic, glass or a similar material, an original work of mixed
media or a lithograph;
(II) Was purchased in an arm’s
length transaction for $25,000 or more, or has an appraised value of $25,000 or
more;
(III) Is on public display in a
public or private art gallery, museum or other building or area in this state
for at least 20 hours per week during at least 35 weeks of each year for which
the exemption is claimed or, if the facility displaying the fine art disposes
of it before the end of that year, during at least two-thirds of the full weeks
during which the facility had possession of it, or if the gallery, museum or
other building or area in which the fine art will be displayed will not be
opened until after the beginning of the fiscal year for which the exemption is
claimed, these display requirements must be met for the first full fiscal year
after the date of opening, and the date of opening must not be later than 2
years after the purchase of the fine art being displayed; and
(IV) Is on display in a facility
that is available for group tours by pupils or students for at least 5 hours on
at least 60 days of each full year for which the exemption is claimed, during
which the facility in which it is displayed is open, by prior appointment and at
reasonable times, without 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.
(c) “Personal property held for sale by a
merchant” includes property that:
(1) Meets the requirements of
sub-subparagraphs (I) and (II) of subparagraph (1) of paragraph (b);
(2) Is made available for sale within 2
years after it is acquired; and
(3) Is made available for viewing by the
public or prospective purchasers, or both, within 2 years after it is acquired,
whether or not a fee is charged for viewing it and whether or not it is also
used for purposes other than viewing.
(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 enrollment and 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.