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Old 03-06-2003, 09:31 AM   #1
KRL
Entrepreneur
 
Join Date: Oct 2002
Location: USA
Posts: 31,429
Nevada's New Adult Entertainment Tax

More taxes on Adult Entertainment it looks like . . . Got their hands in our wallets already, now they want to get in our underwear too. Geez, where's it end.

Nev. Amusement Tax Bill May Hit Brothels

CARSON CITY, Nev. - The ultimate sin tax has hit the Nevada Legislature. Maybe.

Gov. Kenny Guinn's proposed amusement tax makes no mention of Nevada's brothels, but it includes "adult cabarets, gentlemen's clubs and similar forms of entertainment."

The 7.3 percent entertainment admission levy, part of a major tax plan introduced Wednesday, applies to events that attract groups of spectators.

Could that be interpreted as a tax on some of the sexual fantasies fulfilled behind closed doors in Nevada's legal brothels?

"I don't know," said a flustered Brenda Erdoes, the state legislators' chief legal counsel. "What can I tell you? My face is all red."

"The tax applies if they are there for group entertainment and you have spectators ... I don't know what goes on in brothels."

Gov. Kenny Guinn said he didn't mean for the tax to cover brothels.

But state Taxation Department chief Chuck Chinnock said he's working to determine whether the hundreds and thousands of dollars exchanged daily in the state's legal prostitution trade includes admissions fees.

"I believe the gals are classified as independent contractors," Chinnock said. "But if they're charging an admissions charge and there's a group of spectators, then yes, it could apply."

Assemblywoman Sheila Leslie, D-Reno, has pushed for the tax to include brothels. She's crafting a separate bill taxing the industry, should the governor's proposal fail to do so.

Nevada brothels and prostitutes are subject to federal income tax on their overall earnings, and have to pay various county taxes and fees. But Nevada has no state income tax.

The entertainment tax would produce about $82 million per year through levies on movies, professional sporting events, beauty contests, and live entertainment at "cocktail lounges, nightclubs and similar venues."

It is part of the governor's long-term plan to stabilize state revenues and overcome a $704 million budget deficit.
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Last edited by KRL; 03-06-2003 at 09:34 AM..
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