September 5, 2012

STRIPPER POLE TAX


I read this morning that New York State tax officials are going after a strip club for non-payment of taxes on so-called couch dances, i.e. the private lap dance.

The club in question, Nite Moves, is claiming the dances are tax-exempt under state law because they are "live dramatic or musical arts performances," an exemption that is used by theaters and ballets.

The Tax Appeals Tribunal disagreed, saying the club didn't present enough proof that it qualified for the exemption, a decision upheld by a mid-level court.

"In our view, there can be no serious question that at a bare minimum, petitioner failed to meet its burden of establishing that the private dances offered at its club were choreographed performances."

However, an administrative law judge agreed with Nite Moves, saying "the fact that the dancers remove all or part of their costume . . . simply does not render such dance routines as something less than choreographed performances."

Oh, that is rich. It's also a good argument.

The case has reached the state's highest court, with a decision expected in about a month.

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