Philadelphia wants sales tax on lap dances at Gentlemen's Clubs

[EStreetJoe]

http://www.philly.com/philly/news/20130724_Lap_dances_as_theater__City_says_no_.html

The city hit several Gentlemen's Clubs with huge tax bills contending that lap dances aren't exempt from the city's entertainment sales tax.
Clubs are countering sales tax is already being paid on admission to the club, collecting on lap dances is double-taxation. They are also trying to contend that the lap dances are theater and as such are exempt under the tax law.

 

[LongTimeListener]

Also known as the Ho Tell Tax.

 

[pressboxer]

Maybe Detroit should try this.

 

[Armchair_QB]

So which suburban Philly municipality will be seeing an upswing in new titty bar openings?

 

[Drip]

So which suburban Philly municipality will be seeing an upswing in new titty bar openings?

Chester County would be a safe bet.

 

[Mizzougrad96]

I'm fine with this, as long as they have to pick the change the same way they pick up the singles...

 

[zagoshe]

So which suburban Philly municipality will be seeing an upswing in new titty bar openings?

Bingo.

Politician's greed generally lead to situations where business is forced elsewhere -- then they blame the other side when there is a lack of jobs.

 

[hondo]

Next thing you know customers will have to send out 1099s for 30 minutes in the VIP room.

 

[EStreetJoe]

So which suburban Philly municipality will be seeing an upswing in new titty bar openings?

Chester County would be a safe bet.

Since Chester County is south of the city and closest to the stadiums and arenas that would be a very good bet.

However don't discount a southern Bucks County municipality like Bensalem (just north of the city) that many commuters and fans pass through and is already home to a casino.

Not sure how the western suburbs in Montgomery County would be.

 

[Drip]

So which suburban Philly municipality will be seeing an upswing in new titty bar openings?

Chester County would be a safe bet.

Since Chester County is south of the city and closest to the stadiums and arenas that would be a very good bet.

However don't discount a southern Bucks County municipality like Bensalem (just north of the city) that many commuters and fans pass through and is already home to a casino.

Not sure how the western suburbs in Montgomery County would be.

Rumor has it that the Mayor is trying to push a tax on hookers. Stay tuned for that one.

 

[LongTimeListener]

Next thing you know customers will have to send out 1099s for 30 minutes in the VIP room.

It will be a 1099-(very)EZ.

 

[Batman]

Next thing you know customers will have to send out 1099s for 30 minutes in the VIP room.

It will be a 1099-(very)EZ.

Or they'll create a new form and call it the 1069.

 

[Cape_Fear]

They just tore down the club across the Whitman in Jersey. Shouldn't have done that.

 

[Gold]

I guess this is a case where the government literally wants a piece of the action.

 

[wicked]

Politician's greed generally lead to situations where business is forced elsewhere -- then they blame the other side when there is a lack of jobs.

Yes, because many 20-something women "paying for school" will be laid off over a lap dance tax... :

 

[Armchair_QB]

I don't think he's talking about layoffs. I think he's referring to the fact that all of those comely future dental hygienists won't be able to find work in Philly to put themselves through school because the jobs have moved to Jersey.

 

[Amy]

No help from SCOTUS this term. Yesterday, SCOTUS denied review of a NY Court of Appeals decision holding sales tax was properly imposed on charges for admission to strip clubs and fees for private dances. The NY court held the exemption for "dramatic or musical arts performances" did not apply, stating:

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. To do so would allow the exemption to swallow the general tax since many other forms of entertainment not specifically listed in the regulation will claim their performances contain tax-exempt rehearsed, planned or choreographed activity.

Petitioner argued the tax discriminates based on content in violation of the First Amendment.

 

[User 11148]

We're gonna need a more activist SCOTUS ... hey-yo!

 

[Versatile]

I'm curious where JackReacher, a longtime ally in the war against paying for pornography, stands on the issue of strip clubs.

 

[Amy]

A taxpayer win.

A Pennsylvania Court of Common Pleas held on Wednesday that since the City's amusement tax ordinances were vague regarding their application to purchases of private entertainment services after patrons entered the establishments, the tax could not be imposed on lap dances.

No word whether the City will appeal or amend the amusement tax provisions.