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Friday, June 10, 2011

NY court says juice bar's lap dances are taxable

Nite Moves in suburban Albany don't qualify for the tax exemption as "dramatic or musical arts performances" and must pay $124,921.94 plus interest












There’s more than one thing rising when customers get a lap dance.

A state appeals court unanimously ruled that lap dances and admissions to strip clubs are subject to the sales tax.

An Albany area strip club, Nite Moves, filed a lawsuit claiming that dancing at its club was artistic expression exempt from sales tax.

But the Appellate Division Third Department sided with the Tax Department, ruling that gyrating and jiggles are a taxable service.

The state Tax Department confirmed that the sales tax applies to all strip clubs, whether or no they serve alcohol. Nite Moves does not serve liquor.

Andrew McCullough, the lawyer for Nite Moves, said he will seek to have the ruling overturned in the state Court of Appeals, New York’s highest tribunal.

“This is a free speech issue. The state doesn’t get to be dance critic,” said McCullough.

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