Making it rain in the club can be a costly endeavor and now, adult entertainment is about to hit revelers in at least one state in the pocket a little harder.
The New York State Tax Appeal Tribunal and the Court of Appeals have ruled 4-3 that all lap dances will be charged a sales tax for *ahem*Â services rendered, making dropping a few bills on your favorite lady, or man, in the shake club a bit more expensive.
An Albany-based strip club went head-to-head with the Tax Appeals Tribunal to argue that lap dances are “dramatic or musical performancesâ€ and therefore not taxable. The court disagreed and decreed that cover charges and lap dances are subject to state sales tax.
“If ice shows presenting … ice dancing performances, with intricately choreographed dance moves precisely arranged to musical compositions, were not viewed by the [state] Legislature as ‘dance’ entitled to 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 tax-exempt status,” the four judges concluded as reported by Newsday.
The court is going after the club, “Night Moves,â€ in upstate New York for $125,000 in back taxes.
There was no word on how exactly the tax will be collected during the lap dance interactions, as most lap dances are paid for in cash.