Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
The New York Pole Dancing Case: Round 2
Author: Scarinci Hollenbeck, LLC
Date: October 16, 2015
Key Contacts
Back
There are few tax cases that catch the eye of the public or have as an interesting array of participants. This one is an exception, mainly because it involves pole dancing.
The history of the matter is that the State of New York, in 2005, assessed sales tax on an adult men’s club. The club convinced an administrative law judge that the club’s pole dancing was tax-exempt because of the dramatic or musical content in the performances, thus exempt. There is an exemption from sales tax for “dramatic or musical arts performances.” The State Court of Appeals disagreed and assessed $400,000 in taxes.
Fast forward to subsequent years, another audit, assessment and an appeal to an administrative law judge that was decided earlier this year. What is different are the proofs presented.
The Proofs
The club hired five experts. The experts were from the fields of anthropology, dance and theater, pole dancing/gymnastics and the culture critic from the local Albany newspaper The expert testimony supported the club’s claim that the performances were exempt because the routines were rehearsed and choreographed dance routines. The administrative law judge heard testimony from two of the club’s performers regarding the requirements that their movements correspond to changes in the pole dancing music.
The state countered with the testimony of state tax auditor who patronized the club between ten and fifteen times so as to provide him with significant personal experience with club and its entertainment. He claimed that the dancers massaged various parts of his body and a lap dance was a full body rub. When the auditor reached that conclusion is not clear.
Split Decision
The administrative law judge rendered a split decision granting an exemption for the club’s cover charge but imposing tax on lap dances because the emphasis was on physical contact rather than choreography. The case is notable because the club was represented by an attorney who was the Libertarian candidate for attorney general of Utah who specializes in representing adult clubs. Both sides have appealed the decision.
Tax cases do not provide intriguing testimony as a general rule; however, there are a few instances that cause one to ponder the meaning of simple words.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.