Sunday, November 11, 2012
Strip-Club Fees Aren’t Tax Exempt, N.Y. Top Court Rules
Businessweek: A New York strip club can’t claim a tax exemption on entrance and performance fees on the grounds that it presents “musical arts performances,” the state’s highest court ruled.
The New York Court of Appeals in Albany today upheld a lower court’s ruling that Nite Moves, an adult “juice bar” in Latham, New York, didn’t prove to tax authorities that its stage and couch dances merited the exemption granted to artistic performances.
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11 comments:
That must have been a difficult decision for the court to make, as evidenced by the 4-3 ruling. The law has its heart in the right place in that it is trying to make high class artistic entertainment more accessible, but it could most definitely use some qualifications to make its specifications more clear on who it covers and who is exempt. Strip clubs come in all shapes, sizes, and respectabilities, so it seems hard to classify all of them under one sweeping category. The dances and choreography that strippers master are actually quite challenging, and they manage to make them seem so easy, which is a true art form. Of course, they are much less well reputed than most other forms of entertainment art and it is understandable that the state would like to encourage support of other, more "respectable" places, but at the same time they should be recognized as artists, however "lowly" what they do is deemed by society.
Well this turned out for the better. I think that there is a huge difference between what happens in a theater and what happens in a strip club. The law is there for an obvious purpose and it seems that this club was just trying to take advantage of it. I think if this had gone the other way it would have been a pretty big problem. All sorts of organizations would start claiming exemption based on that ruling. I think the amount of tax dollars lost would probably put a serious dent in NY's income. especially considering that this club owed 124,000 for just one year. Imagine how many clubs there are like that and the amount of money that the government makes just from them. Suddenly losing all that money would probably decrease funding for things that are much more important then some club sketchy claim to exemption.
I know that I have commented previously on a story about this case. But I am tied on how it turned out, much like the 4-3 ruling. While by definition I cannot make a distinction between what we as theater artists do and what happens in strip clubs, I find it hard to put it in the same category at what companies like Pittsburgh Ballet do. To mirror what Present said, I think that the skills and technique used in exotic dancing is extremely complex and takes a lot of practice. This is an extremely hard and talent filled group of performers. Maybe this is a ploy by the government to promote the more "repectable" places, like Present said. And considering the income to the government by taxing exotic locations, I am not surprised it wasn't passed.
Who would go to a strip club where they don't sell alcohol anyways? Maybe they should look at changing THAT before they go fighting for tax exemptions! But really, I agree that this offers an interesting constitutional predicament because it separates a particular industry from the rest (New Yorker vs. Hustler argument). It sounds like this was decided on a technicality- the fact that the expert witness from the strip club was found to be not so expert. That leads to believe that this could be appealed, and the strip club could win. Only time will tell.....
Yeah I don't know what to think about this topic still. I guess I agree with the ruling. I don't really think that strip clubs should be tax exempt. They do not provide the same service as other arts organizations. This is not to say that striping is not an art, I just don't think it falls under the requirements of non-profits. It does not have an educational element or serve the community in the same way.
Because this has been a topic of debate in multiple states lately, it seems to me that a decision needs to be made in a larger setting. I am intrigued to see if any of the defendants in these cases continue to appeal and make their way higher up into the court system. There obviously needs to be a more clear-cut definition of what constitutes a "dramatic or musical arts performance", and I think that an even higher court could provide that answer. I am glad that the Hustler analogy was made because it clarifies that the decision is not being made on a bias against the content of the entertainment provided at the juice bar. One thing I can't help but wonder is if the club would have been successful if they had presented a more informed expert who could testify to the nature of the private dances (although I'm assuming the private dances are probably not strictly choreographed and would therefore not qualify the club for the exemption anyways). I'm anxious to read more about rulings of this nature, and I hope that, as in this case, establishments such as Nite Moves are not being treated poorly because of the nature of the entertainment they provide.
Stripping is a business like any other. why they shouldn't have to pay taxes is beyond me. Thought the 4-3 ruling did surprise me a little. Theater and striping are not the same thing and the fact that someone tried to get around that by calling the strip club performance a musical arts performance is a little sad. I know we are all looking to save a few bucks here and there but isn't stripping a lucrative enough business already? Anyways, just because strip clubs exist doesn't mean that we should endorse them. If anything, we should be trying to prevent more of them from opening. But if it has to exist, at the least the state can get some money from it. The strip clubs should just pay their taxes and be happy that the government lets them stay open.
Not all theatre companies are tax exempt. There is definitely a reason why you must prove yourself able to be tax exempt, and not everyone will reach that. Even if they are an alcoholic free strip club or not its all about the performance. The quality of the performance might not matter, but the intent of the performance should be scrutinized significantly. Stripping vs. performing in a artistic scandalously clad way are different things. It is a business and is different, but we need to look at the intent of tax exempt organizations more, not just that they provide a service that's artistic.
It is a sad day for the state of NY
I am torn between believing that strip clubs should be tax exempt and that the court rulled correctly. i do think there is a distinct definition between striping and theater, how ever im not clear on why they still shouldn't be tax exempt. I really due see Stripping as an art form and a very athletic form of art that needs to be recognized.
I completely agree with this ruling. Strip clubs are in no way the same as other educational non profits like say the theatre. so for them to get the same tax exemption seems unfair and inappropriate.
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