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.

Related:  

Copyright © 2025 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

FSC: Federal Report Confirms Unfair Banking Discrimination Against Adult Industry

The Free Speech Coalition (FSC) today announced that a federal report on debanking has concluded that several U.S. banks engaged in discriminatory banking practices against members of the adult industry.

Blake Blossom Toplines 'Permission' From Sweet Sinner

Blake Blossom headlines “Permission,” from Mile High Media studio imprint Sweet Sinner.

Ghettoff Founder Nefertiti Mitchell Passes Away

Nefertiti "Neff" Mitchell, founder and CEO of adult retail store Ghettof, has passed away.

Nobü Adds to 'Essentials' Collection

Nobü is expanding its Essentials collection with three new pleasure products.

Aubry Babcock, Lana Smalls Topline Latest 'Secret Lesbian Diaries'

Aubry Babcock and Lana Smalls headline the 16th volume of "Secret Lesbian Diaries" from Girlfriends Films.

FSC Summit Event Schedule Announced

Free Speech Coalition (FSC) has revealed its slate of networking events and symposiums for its annual summit, set for January 15 during XBIZ 2026.

Orion Debuts 'Skull Masturbator' From Rebel Line

Orion Wholesale has released the Skull Masturbator from its Rebel collection.

Washington AV Bill Jumps on 'Health Warning' Bandwagon

A new age verification bill in the Washington state legislature would require adult sites to post notices warning users of alleged health risks, despite a previous federal court ruling against such requirements.

Leilani Li Fronts Latest From Brazzers

Leilani Li stars with Jayden Marcos in the latest release from Brazzers, titled "Soap Her Up & Spread That Ass."

Irish Regulator: EU States to Ramp Up AV Enforcement for Smaller Sites

A representative of Irish media regulator Coimisiún na Meán told legislators that Ireland and other EU states are preparing to expand enforcement of age verification regulations to include smaller adult sites, British newspaper The Times is reporting.

Show More