U.S. Justices Won't Hear Strip Club Tax Case

WASHINGTON — The U.S. Supreme Court won't hear a case that could have settled whether dancing in strip clubs is art.

Without comment last month, U.S. justices passed on a New York case where the state's highest court earlier ruled, 4-3, that Latham, N.Y.'s Nite Moves strip club didn’t qualify for the state’s tax exemption for “dramatic or musical arts performances” because performances at the club didn't fall in line with the Legislature's "evident purpose" of the tax break.

The majority of the New York appellate court said that "it is not irrational for the [state] Tax Tribunal to decline to extend a tax exemption to every act that declares itself a dance performance" and that other forms of entertainment, such as baseball games, carnivals, ice shows and animal acts, are not exempt from taxes in New York.

But one judge, in a sharply worded dissent to the state's top court, wrote that it doesn't matter if the dance was artistic or crude, boring or erotic. Under New York’s tax law, a dance is a dance, Judge Robert Smith wrote.

"Like the majority and the Tribunal, I find this particular form of dance unedifying — indeed, I am stuffy enough to find it distasteful," Smith wrote. "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. It is not clear to me why the discrimination that the majority approves in this case stands on any firmer constitutional footing."

U.S. justices, however, declined to hear the case last month.

"We did our very, very best," Nite Moves attorney W. Andrew McCullough told the Albany Times Union. "But getting the attention of the Supreme Court in a situation like that is just [difficult]."

New York's Division of Taxation, following an audit in 2005, said the admission charge and fees for private dances at Nite Moves should be subject to sales tax.

According to a court filing, Nite Moves owed $129,000 in taxes. A majority of the all-nude club’s revenue came from the $15 it collected on $25 private dances, with the balance going to the dancer. Nite Moves charged $10 for admission.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Ellie Tay, Nicole Rae Topline 'My Friend's Lesbian Daughter 2'

Ellie Tay and Nicole Rae headline the second volume of "My Friend's Lesbian Daughter," from Girlfriends Films.

Nasstoys Launches STI Awareness Social Media Campaign

Nasstoys has launched a social media initiative focusing on sexual health and wellness to mark STI Awareness Month.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

Penthouse Opens Voting for 2024 'Pet of the Year'

Penthouse has unveiled the 12 starlets who will contend for 2024's Pet of the Year title. Voting is now underway.

Lilly Bell, Freya Parker to Appear at Ellen Stagg Photo Book Signing at Hustler Hollywood

Lilly Bell and Freya Parker will appear at a Los Angeles Hustler Hollywood signing event celebrating Ellen Stagg’s latest photo book, “Free to Be Naked.”

Summertime Sensuality: Liberator launches the Ibiza Collection

Liberator has launched its new Ibiza Collection of sex-positioning shapes.

Kendra Sunderland, Blake Blossom Team Up in New Slayed Scene

Kendra Sunderland and Blake Blossom co-star in a new scene for Slayed.

ElectraStim Adds Charlotte Fowler to Sales Team

Cyrex has tapped Charlotte Fowler to join its ElectraStim sales team.

Atlanta Authorities Renew Attack on Adult Boutique Tokyo Valentino

The saga of beleaguered Georgia adult boutique Tokyo Valentino continues with a renewed attempt by authorities to shut down another of its locations.

MomPOV Producer Pleads Guilty in GirlsDoPorn Case

MomPOV producer Doug Wiederhold, who was formerly the partner of GirlsDoPorn owner Michael Pratt as well as the first male talent for GDP, pleaded guilty Thursday to a federal conspiracy charge.

Show More