New York's highest court will consider
legal arguments by a strip club on whether nude dancing is an art and
deserves a state tax exemption as such.
The case set for oral arguments Wednesday involves Nite Moves, an adult entertainment club in suburban Albany that contested a tax bill of more than $124,000 following a 2005 audit.
Tax officials say sales taxes were paid on the club's non-alcoholic drinks, but are also owed on admission and so-called "couch sales," where patrons pay for private or lap dances.
Nite Moves claims the dances are exempt under state tax law as "live dramatic or musical arts performances." The exemption also applies to theater or ballet. The club is relying on testimony from a cultural anthropologist who has studied exotic dance and visited Nite Moves.
W. Andrew McCullough, an attorney for Nite Moves, said the impact of the eventual court ruling probably won't be widespread because most establishments featuring exotic dancers sell alcohol where other tax rules apply.
The case set for oral arguments Wednesday involves Nite Moves, an adult entertainment club in suburban Albany that contested a tax bill of more than $124,000 following a 2005 audit.
Tax officials say sales taxes were paid on the club's non-alcoholic drinks, but are also owed on admission and so-called "couch sales," where patrons pay for private or lap dances.
Nite Moves claims the dances are exempt under state tax law as "live dramatic or musical arts performances." The exemption also applies to theater or ballet. The club is relying on testimony from a cultural anthropologist who has studied exotic dance and visited Nite Moves.
W. Andrew McCullough, an attorney for Nite Moves, said the impact of the eventual court ruling probably won't be widespread because most establishments featuring exotic dancers sell alcohol where other tax rules apply.
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