Nevada court rules tax on strip clubs legal

Sep 18, 2014
Adult Business News
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Strip clubs are not unfairly targeted under Nevada’s live entertainment tax, the state’s high court ruled Thursday.

A group of eight strip clubs had argued this year that clubs should not have to charge patrons 10 percent on an admission fee because exotic dancing should be considered free expression, a First Amendment-protected activity.

Though the court rejected that argument in the unanimous decision, the seven justices “recognize the degree of protection afforded to erotic dance under the First Amendment is uncertain.”

The strip clubs had asked the Nevada Supreme Court to throw out the tax, saying it unfairly singles out the adult industry.

The court disagreed.

“It cannot be said that whether a live-entertainment provider is subject to NLET depends exclusively or even primarily on the content of the entertainment being provided,” Justice Michael Douglas wrote, with the other six justices concurring.

The tax is estimated to net $130 million a year. There are 30 strip clubs in Las Vegas and 12,000 dancers registered with the Metropolitan Police Department, according to a 2012 UNLV study.

strip club

In 2003, the tax already in place at casinos was broadened to cover any venue with live entertainment. Two years later, an amendment extended the tax to cover places with a capacity of 200, which drew the strip clubs’ challenge.

The state legislature added exemptions to the tax, including NASCAR events and minor league baseball games. In their appeal, lawyers for the strip clubs argued that tax exemptions were based on family-oriented and adult-oriented messages.

The court responded simply: “This assertion lacks merit. Many facilities providing what appellants would classify as family-oriented entertainment,” such as circuses, concerts and fashion shows, are subject to the entertainment tax. “Additionally, multiple facilities furnishing adult-oriented live entertainment, such as boxing and charity events, are exempted. … We conclude that the statute does not discriminate based on the content of taxpayer speech.”

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Nevada court rules tax on strip clubs legal | The Rob Black Website
6 years ago

[…] Nevada court rules tax on strip clubs legal […]

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[…] In 2003, the tax already in place at casinos was broadened to cover any venue with live entertainment. Two years later, an amendment extended the tax to cover places with a capacity …read more     […]

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