How does the scheme affect GLAM?

Who is GLAM?

GLAM includes publicly funded Galleries, Libraries, Archives and Museums.
GLAM does not include Universities or other publicly funded tertiary institutions.

What is the difference between a GLAM and an Art Market Professional?

The Act defines “Art Market Professionals” in section 11 as:
(a) a person who carries on business as an auctioneer (within the meaning of section 5(3) of the Auctioneers Act 2013):
(b) an art dealer:
(c) an art consultant:
(d) the owner or operator of an art gallery that deals in visual artworks:
(e) any other person who is in the business of dealing in visual artworks.

• GLAM are not Art Market Professionals (AMPs).
• However, resales involving GLAM do fall within the Scheme. If any GLAM is involved in a resale of original visual artwork it may still count as a “professional resale” (and therefore a “qualifying resale”).
  (See Step 1 in Appendix 1 to learn what a qualifying resale is).
• Generally, GLAM are only required to report to RRA on qualifying resales when there are no AMP involved in the Qualifying Resale. In that event, then GLAM may be responsible for reporting information about the resale to RRA as well as paying some or all of the Royalty.

Reporting and Payment Obligations

Which party is required to pay the royalty? (section 17, the Act)
The following persons are jointly and severally liable to pay the 5% resale royalty to RRA:

• The seller, and either
  o the agent acting for the seller on the resale (usually the AMP); or
  o if the seller does not have an agent, the agent acting for the buyer on the resale; or
  o if there are no agents, the buyer.

Some reporting examples:

Public Art Gallery X (PAGX) needs to sell one of the artworks in their collection to raise some much-needed
funds. The following situations outline the different obligations to report and pay the Royalty to RRA:

1. PAGX sells artwork through one of leading Auction Houses, who is an AMP, to a private collector. In this case PAGX as the seller and the AMP as their agent are jointly responsible for paying the royalty, and AMP is responsible for reporting the sale.
2. PAGX sells artwork to a private dealer gallery, who again is an AMP. In this case PAGX as the seller and the AMP as the buyer are jointly responsible for paying the royalty, and the AMP is responsible for reporting the sale.
3. PAGX sells artwork to TePapa- another GLAM but not an AMP, and there are no dealers or agents involved. In that case both PAGX as the seller and TePapa as the buyer are jointly and severally liable to pay the Royalty and either PAGX or TePapa as the GLAM would be responsible for reporting the Qualifying Resale to RRA.
4. PAGX buys an artwork on TradeMe from a private collector. Again, there are not AMP’s involved and no agents so because PAGX is a GLAM, PAGX is required to report the Qualifying Resale to RRA, and both PAGX as the seller and the private collector as the buyer are jointly and severally liable to pay the Royalty to RRA.
5. PAGX buys an artwork from a private collector through an art consultant who is acting as agent for the private collector. In this case the private collector as the seller and the art consultant (who is an AMP) as their agent are jointly responsible for paying the Royalty, and the art consultant as an AMP is responsible for reporting the Qualifying Resale.
6. PAGX buys an artwork from a private collector through an art consultant who is acting as agent for PAGX. In this case the private collector seller and the art consultant as agent for PAGX as buyer are jointly and severally liable for paying the Royalty, and the art consultant as the AMP is responsible for reporting the Qualifying Resale