Court Denies Strip Club Tax Exemption

[16_bit]

The New York Court of Appeals has narrowly ruled 4-3, that lap dances are not tax exemptable (at least in 1 club for now). It is claimed by some on the panel that a lap dance should be categorized under entertainment and not art. The ruling obviously could end up affecting all strip clubs in the US, and depending how other countries tax, those countries too.
But it has been questioned, by some on the panel itself, as to whether there is an unwritten rule concerning that only dances seen as highbrow can qualify as art. I added some quotes and links to where i got them from below.

The people who paid these admission charges paid to see women dancing. It does not matter if the dance was artistic or crude, boring or erotic. Under New York’s Tax Law, a dance is a dance.

He then went on to add that taxing lap dances may well be unconstitutional:

I would be appalled, however, if the State were to exact from Hustler a tax that the New Yorker did not have to pay, on the ground that what appears in Hustler is insufficiently “cultural and artistic.” That sort of discrimination on the basis of content would surely be unconstitutional

Link To Article - Forbes

the court's majority categorized the strippers' routines as "entertainment" -- along the same lines as amusement parks and figure skating shows -- both of which are taxable entities.

The majority opinion argued if finely tuned figure skating routines aren't granted tax-exempt status then a stripper's routine shouldn't qualify, either.

"If ice shows presenting pairs ice dancing performances, with intricately choreographed dance moves precisely arranged to musical compositions, were not viewed by the Legislature as 'dance' entitled a tax exemption, surely it was not irrational for the Tax Tribunal to conclude that a club presenting performances by women gyrating on a pole to music, however artistic or athletic their practiced moves are, was also not a qualifying performance entitled to exempt status," their opinion stated

Link To Article - UPI

The dissent, authored by Chief Judge Jonathan Lippman, pointed out justices' discomfort with the state picking preferred forms of self-expression to hold up as tax-exempt.

"Like the majority and the Tribunal, I find this particular form of dance unedifying -- indeed, I am stuffy enough to find it distasteful," Lippman wrote for the minority. "Perhaps for similar reasons, I do not read Hustler magazine; I would rather read the New Yorker. I would be appalled, however, if the state were to exact from Hustler a tax that the New Yorker did not have to pay, on the ground that what appears in Hustler is insufficiently 'cultural and artistic.' That sort of discrimination on the basis of content would surely be unconstitutional."

Link To Article - UPI

 

[HiGirlsRHot]

As general rule most high brow dancing performance such as ballet troupe, are not for profit organization, which are truly unprofitable. The ticket prices don't support the cost of a ballet troupe in many/most part of the country. So they often rely on generous tax deductible donations by wealthy individuals along with small grants from the city or state dept. that supports the performing arts to keep the troupe open. In contrast most strip clubs make money and so are natural target for taxes.

Given that ice skating is taxable and bet Broadway musicals are also taxed it is hard to argue that lap dance should be exempt.
On the other hand, most appellate courts, and the Supreme Court have generally struck down laws the single out strip clubs etc for special taxes.

 

[AmyLemon]

Ooooooooooh tax law makes me horny! And the idea of dancers and clients doing mental math while negotiating lap dance prices makes makes me giggle. I'm realizing that I don't know a lot about how clubs actually work, I assumed that all lap dances are individual negotiations (ie: the club doesn't define the pricing structure, the performer and client hash out the details) and I also assumed that the club doesn't take a cut of tips for stage-shows so by extension I always assumed lap dances fell under tip income. Tip income isn't exempt from income tax but in all other industries no other taxes are levied. Am I out to lunch? Also would strippers qualify as independant contractors or are they actually employed by the clubs? This has made me really curious!

 

[SatanJonez]

Ooooooooooh tax law makes me horny! And the idea of dancers and clients doing mental math while negotiating lap dance prices makes makes me giggle. I'm realizing that I don't know a lot about how clubs actually work, I assumed that all lap dances are individual negotiations (ie: the club doesn't define the pricing structure, the performer and client hash out the details) and I also assumed that the club doesn't take a cut of tips for stage-shows so by extension I always assumed lap dances fell under tip income. Tip income isn't exempt from income tax but in all other industries no other taxes are levied. Am I out to lunch? Also would strippers qualify as independant contractors or are they actually employed by the clubs? This has made me really curious!

Actually all money the strippers make through out their shift, a small part of it goes to the "tip out" in a lot of clubs. Pay the bouncer, bartender, and DJ. This is optional in some clubs, but do you really want to stiff the person who could possibly come between you & an angry customer or the guy who puts up your music? Probably not. Of course, those people make at least minimum wage on top of the tip out, but yeah.

Also, lap dances are generally the same price through out the club and of course they vary for the "type" (regular vs special "private"). Otherwise I would think there would be in-fighting between dancers. E.g. "I can't believe that bitch only charges $10 a song" or "That cunt has the NERVE to charge $30 for a normal dance and their STILL paying for it?"

 

[16_bit]

As general rule most high brow dancing performance such as ballet troupe, are not for profit organization, which are truly unprofitable. The ticket prices don't support the cost of a ballet troupe in many/most part of the country. So they often rely on generous tax deductible donations by wealthy individuals along with small grants from the city or state dept. that supports the performing arts to keep the troupe open. In contrast most strip clubs make money and so are natural target for taxes.

Given that ice skating is taxable and bet Broadway musicals are also taxed it is hard to argue that lap dance should be exempt.
On the other hand, most appellate courts, and the Supreme Court have generally struck down laws the single out strip clubs etc for special taxes.

Some good points in there. I think if they've had argued more on the point of profitability rather than the dance itself, it would be fairer. That's the issue some of the panel had, judging whether a type of dancing is artistic or cultural enough. It could be argued that stripping and strip clubs are a culture of thier own.

Actually all money the strippers make through out their shift, a small part of it goes to the "tip out" in a lot of clubs. Pay the bouncer, bartender, and DJ. This is optional in some clubs, but do you really want to stiff the person who could possibly come between you & an angry customer or the guy who puts up your music? Probably not. Of course, those people make at least minimum wage on top of the tip out, but yeah.

This is something i found out recently myself from a friend, i was quite surprised when i found out. Doesn't seem quite right to me, they are getting paid to do their job but i suppose it could be argued that they help, with the dj playing a specific song for the girl or the bouncers keeping people out.

I wonder if when cam models dance/strip on cam, they can claim a tax exemption of the grounds of dance art? ...Yea, i don't see the tax people letting them either but it would be interesting to find out.

 

[Anonymous]

Nudie bars should be tax exempt just like churches because lord knows I used to visit one religiously when I was into that stuff.

And yes, the clubs usually dictate the dance prices and the dancers keep a percentage of that. Also, in some clubs in CA, if you hand money to the dancer, its considered a tip, so you have to go up to the bar and pay for the dances. I've seen that cause a great deal of confusion for some people. There are so many crazy rules around strip clubs, at least here in CA. Personally I've always thought a club could do better if it just charged for blocks of time rather than by song, but theres probably some stupid law about that, too.

Damn it, I havent been to a strip club in over 6 years, but now this has me thinking about going again!

 

[Jupiter551]

Wow lapdances are art? *adds art to list of hobbies*

 

[HiGirlsRHot]

Wow lapdances are art? *adds art to list of hobbies*

No they aren't art , lap dances are entertainment. But 3 judges in New York were more open minded

 

[Shaun__]

Wow lapdances are art? *adds art to list of hobbies*

No they aren't art , lap dances are entertainment. But 3 judges in New York were more open minded

I see I have to add HiGirlsRHot to the list of philistines who think they can pick and chose what art is.

 

[HiGirlsRHot]

Wow lapdances are art? *adds art to list of hobbies*

No they aren't art , lap dances are entertainment. But 3 judges in New York were more open minded

I see I have to add HiGirlsRHot to the list of philistines who think they can pick and chose what art is.

LOL, given the state of NY finances I think they should tax anything that moves, include ballerinas and dancing bears . But I am just explaining the court findings.