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Thread: New York Governor approves new tax on lap dances !

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    Banned Melonie's Avatar
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    Default New York Governor approves new tax on lap dances !

    ... along with other 'personal services' including haircuts, manicures, massages etc. With New York counties and cities following suit, this will amount to a newly enacted tax of $1.75 or so on every $20 lap dance sold in a New York club.

    As this is a 'sales tax', the money for it will have to be collected by clubs and forwarded to state and local tax authorities. It is of course up to the club to determine how they will 'account' for this new tax ... and by unavoidable association how they will 'account' for the number of lap dances sold and how they will 'account' for lap dance money paid out to dancers.

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    Default Re: New York Governor approves new tax on lap dances !

    Oh pfft. We already have that stupid ass SIN tax here in Texas.

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    Banned Melonie's Avatar
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    Default Re: New York Governor approves new tax on lap dances !

    ^^^ yes but I'm not mistaken your Texas 'sin tax' is based on customers spending money to enter the club i.e. an addition to the cover charge. This only forces clubowners to account for the number of customers paying the cover charge at the front door, and in no way impacts accounting for the amount of money customers spend on VIP rooms, private dances etc.

    Because the NY Tax is a tax on gross sales, it is applicable to every dollar that customers spend inside the club. This means that the club must now account for every dollar spent by customers, particularly in the area of lap dances and VIP's. By implication this then means that the club must either claim all of this money as customer derived club income (and the club must pay income taxes on that income), or the club must also account for that portion of customer money which was later paid out to dancers ( such that the club doesn't have to pay income taxes on the money paid out to dancers, but that the dancers do !). This is the true reason for new state 'sales' taxes being applied to a wide variety of 'personal services' businesses ... not so much to collect additional sales tax, but to force the reporting of incomes and the payment of income taxes !

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    Default Re: New York Governor approves new tax on lap dances !

    Diamond: "Would you like a lap dance handsome?"

    Tom: "Sure, how much is it?"

    Diamond: "Twenty dollars- plus tax."

    Tom: "Huh?"

    lol
    Women of color:
    Shake your ass and preserve your heritage.
    Bang those fucking drums.
    Do it for the present and future generations.
    Have fun and stick it to the man at the same time.
    (bad-dominicana)

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    Default Re: New York Governor approves new tax on lap dances !

    ^^^ actually, to avoid pissing off customers, NY clubs are likely to simply back-figure the tax. Thus in a typical percentage split club, the $20 that the customer pays for a lap dance will wind up being booked as $9 for the dancer plus $9 for the club plus $2 in tax (rounded off for simplicity). But the kicker then becomes that either A. the club must report $18 worth of income (and pay $5 in corporate income tax on that $18 ), or B. the club can report $9 of income to itself (and pay $2 in corporate income tax on that $9) plus $9 of income to the dancer that performed the lap dance (forcing the dancer to then pay $2 in sole proprietor business income tax on the $9).

    In the other type of club ... where the dancer kept 100% of lap dance money but was required to pay a huge nightly stage fee, on every $20 lap dance the dancer now gets to keep $18 after the new $2 tax is withheld by the club. But to avoid having to pay corporate income tax on money they are not receiving, the club will also be forced to report the $18 as income to the dancer that performed the lap dance. In turn she will be required to pay $5 in sole proprietor business tax on that $18. And undoubtedly the club's nightly stage fee will not be reduced.

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    Default Re: New York Governor approves new tax on lap dances !

    Quote Originally Posted by PleasureVictim View Post
    Diamond: "Would you like a lap dance handsome?"

    Tom: "Sure, how much is it?"

    Diamond: "Twenty dollars- plus tax."

    Tom: "Huh?"

    lol
    Lol, I usually say $20 plus tip... now it'll be plus tax and tip. Great

    No seriously, when will it take effect to the point that clubs/dancers will have to start adjusting fees to account for the tax?

    Like the place I'm in now, for example: Lap dances are $20 paid to club, dancer gets $15... Club doesn't charge house/stage fees. Would this be an instance of the club logging the price as lower than what it is?

    Did my question make any sense?

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    Default Re: New York Governor approves new tax on lap dances !

    What about how dancer's report income? Does that change now?

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    Default Re: New York Governor approves new tax on lap dances !

    Eww. I'm really hating this f8cked up economey shit. They might as well take body parts. $$$ is waaay to hard to come by w/out extras. And I don't do that shit.

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    Default Re: New York Governor approves new tax on lap dances !

    Will this law only effect NY? Or do you think it will lead onto other states?? Such as RI Conn., or Mass.?? I files taxes but I am not labeling myself as a "dancer", if they change these laws, I would have to be honest about my job title.!? great. I would go nuts if people found out the exact amount I made! Thats wayyyyy too personal!!
    worried-

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    Default Re: New York Governor approves new tax on lap dances !

    this is fucking ridiculous, next to the subways going up in price (and reduced service), the wall street meltdown, and the whole tax sodas thing

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    Default Re: New York Governor approves new tax on lap dances !

    Like the place I'm in now, for example: Lap dances are $20 paid to club, dancer gets $15... Club doesn't charge house/stage fees. Would this be an instance of the club logging the price as lower than what it is?
    obviously I can only guess. However, if the familiar theory is followed ...

    - The $20 lap dance price gets redefined to consist of $2 in tax plus $18 in actual customer price
    - the club still keeps their $5 share
    - the dancer gets paid $13, and the state tax agency gets paid $2
    - the club reports the $13 and $2 payouts so that they only have to count the $5 they kept as taxable income to the club.
    - with the club's report of the $13 payout in hand, the NY state / NY City tax authorities will eventually try to link up the total amount of reported payouts to a particular dancer with a state / city tax return showing all of those payouts as declared income (plus additional tips)
    - since New York is a party to the 40 state information sharing agreement, the IRS will also eventually try to link up the total amount of reported payouts to a particular dancer with a federal tax return showing all of those payouts as declared income )plus additional tips)

    The club obviously has a strong motivation to report the $13 in lap dance money that it actually paid out to the dancer who provided the lap dance. Under the new law, if the club fails to do so, the club itself would be held responsible for paying business income tax on the entire $18 - which at a 28-33% tax rate would be around $5-6 in tax liability versus only taking in $5 in actual club income in the first place !!!

    Will this law only effect NY?
    so far, yes ... because it is a New York 'excise tax' on personal services. However, with ALL state budgets hurting badly right now, it's entirely possible that such personal services taxes will quickly spread to other states. In the grand scheme of things, the majority of 'new' tax revenue is expected to come from hair salons, health clubs, pet care etc. In all cases, the arguable true intent of the personal services tax is to force the documentation of incomes that are currently undocumented - by forcing the 'employer' (i.e. the salon, the health club, the pet store, the strip club) to either pay business income tax on 100% of the customer's money it received or officially show that a large portion of this money was actually paid out to an 'independent contractor' (i.e. a hair stylist, a masseuse, pet groomer, a dancer).

    What about how dancer's report income? Does that change now?
    only in the sense that the NY state / city tax authorities, as well as the IRS, will have a cast in stone paper trail showing precisely how much lap dance money clubs actually paid out to a particular dancer - along with a similar paper trail showing the amount of 'funny money' payouts to a particular dancer etc. Given the federal, state, city and Social Security tax rates that would apply to a full time New York City dancer, this probably means that for every $13 dollars in lap dance money that was paid to a dancer the total tax due will be about $6 ... leaving $7 of the customer's original $20 lap dance money as actual take home earnings for the dancer, leaving perhaps $4 of the customer's original $20 lap dance money as actual club income, and sending $9 of the customer's original $20 lap dance money off to various federal, state or local tax agencies !

    $$$ is waaay to hard to come by w/out extras
    ironically, this new law assures that 'extras' money will be the only income source still open to NY dancers that they won't have to automatically share with the club or the tax man. Of course, by the letter of the law, income from prostitution must still be reported and taxed !!!

    ~
    Last edited by Melonie; 12-20-2008 at 07:26 AM.

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    Dizzy Re: New York Governor approves new tax on lap dances !

    I am feeling frigging claustrophobic hearing this!!!!! This frigging shows, We have NO FREEDOM in this country what so ever. Dancing & Making this type of money gives many girls their own sense of freedom & personal ways to deal w/ the way our government screws our middle/upper class income households. I am not liking this news one bit. Thank god Im almost done with school. -But still... I dont like the public knowing 100% of my buisness!!!!
    As time goes by, I believe there will be ways around this.

    -buggin-out

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    Default Re: New York Governor approves new tax on lap dances !

    We have NO FREEDOM in this country what so ever. Dancing & Making this type of money gives many girls their own sense of freedom & personal ways to deal w/ the way our government screws our middle/upper class income households
    Not wanting to lean towards the political, but for years dancers have enjoyed the 'luxury' of having an upper middle class gross income available, while at the same time being able to get away with paying lower working class tax rates. Unfortunately, ever accelerating developments in technology and lawmaking are creating a situation where dancer incomes and expenditures are being officially documented ... which in turn forces them to pay the upper middle class tax rates that most other people with upper middle class income levels have had to pay all along ! This 'personal services tax' is exactly the sort of new law that will force the documentation of both club incomes and dancer incomes as a byproduct of having to account for and pay this new tax.

    Yes if clubowners are so inclined there will be 'ways around this' ... accompanied by an increased risk that both the clubowners and dancers will be subject to greater scrutiny by the tax man after the fact. However, if you are a college student, this new law probably won't make a huge difference since the IRS and state tax people have already been informed by your college bursar's office and student loan/grant agencies as to how much money you have spent on college tuition ... how much 'family income' was reported on student loan/grant applications ... and of course they already have a database showing typical costs of living i.e. rent / food / utilities in your zip code area. You can be sure that IRS computers will have already been cross-checking your tax return to try and find sufficient reported income to cover those college tuition costs plus costs of living. The fact that next year the IRS will receive specific reports of the amounts of money paid to you by the club makes IRS / state tax enforcement all that much easier of course.

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    Default Re: New York Governor approves new tax on lap dances !

    I cannot believe that a club owner or dancer in NY isnt challenging this tax...

    This is a tax on free speech. Dancing has been determined to be a form of artistic expression.

    Is there a club association in NY. I know there is one in California. This will spread to other states and other clubs unless someone challenges this.

    I worked with the Free Speech Coalition here in California to kill a "porn tax." It can be done, but it takes someone that is will to put in the effort to organize.

    Michael

    www.AdultBizLaw.com

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    Default Re: New York Governor approves new tax on lap dances !

    I read the budget and only saw this:

    Extend New York City Personal and Credit Services Sales Tax Statewide. Makes
    personal services (such as beauty, barbering, manicure, pedicure, massage, health salon,
    or gymnasium services) and credit rating and reporting services subject to sales tax
    statewide. Currently, only New York City sales tax applies to these services.

    I didn't see anything relating to the adult industry - I could be misinterpreting though.

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    Default Re: New York Governor approves new tax on lap dances !

    So thats why my tip in has gone up great another expenses in the oh so lucrative job of being a dancer...

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    Default Re: New York Governor approves new tax on lap dances !

    Too bad Elliot Spitzer isn't still gov.
    "Fake tits are like Kevlar. They don't guarantee your chances of survival but they sure as hell improve it."
    Tempest

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    Default Re: New York Governor approves new tax on lap dances !

    Quote Originally Posted by tempest666 View Post
    Too bad Elliot Spitzer isn't still gov.
    Yep.... I'm sure that hypocrite would tax NY lap-dances and then short change the girls when he paid for his laps.
    Quote Originally Posted by Jay12 View Post
    ^What Sophia said.
    Quote Originally Posted by yoda57us View Post
    I wish there was an "auto-like" setting that I could just have applied to all of your posts Sophia....

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    Banned Melonie's Avatar
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    Default Re: New York Governor approves new tax on lap dances !

    Yep.... I'm sure that hypocrite would tax NY lap-dances and then short change the girls when he paid for his laps
    ... AFTER he demanded 'extras' LOL !


    I didn't see anything relating to the adult industry - I could be misinterpreting though
    lap dances etc. are a personal service, directly analogous to massages.


    I worked with the Free Speech Coalition here in California to kill a "porn tax." It can be done, but it takes someone that is will to put in the effort to organize
    The CA 'porn tax' and the 'sin taxes' imposed by other states are vulnerable to free speech / equal treatment appeals because they specifically apply to the adult entertainment industry and do NOT apply to any other industries. In contrast, the new New York tax applies to ALL personal service industries ... including many such as beauty salons, health clubs, barber shops etc. that have NO potential claim to free speech rights. Andrew Cuomo and Gov. Paterson really did their 'homework' on this one !

    ~
    Last edited by Melonie; 12-30-2008 at 10:22 AM.

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