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NY court to decide if nude dance is tax-exempt art

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Posted: Sep 5, 2012 12:56 PM
Source: Associated Press

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Topics: nude dance, tax-exempt art, New York, strip club, tax exemption, Nite Moves, adult entertainment, sales taxes, couch sales, lap dance, WBRZ

ALBANY, N.Y. - 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 involves Nite Moves, an adult entertainment club in suburban Albany. The club is contesting a tax bill of more than $124,000. The court is scheduled to hear arguments Wednesday.

State officials say the club paid sales taxes on its non-alcoholic drinks, but also owes taxes on admission charges and on so-called "couch sales," where patrons pay for private or lap dances.

Nite Moves is claiming an exemption as a "live dramatic or musical arts performance" under state law. A state tax tribunal and a mid-level court say the club didn't present sufficient proof that it qualifies for the exemption.

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