Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

New Sales Tax on Lap Dances and cover Charges? not new, court ruling will enforce now

|Includes:RCI Hospitality Holdings, Inc. (RICK)

There wan article this past Thursday that mentions Rick's Cabaret (NASDAQ:RICK) in the NY Post.
Lap dances are going to be subject to sales tax. The law has been in effect since the 1960's and no club has ever paid a tax on them.

will the case be back dated and all that sales tax be made up?

Rick spokesperson said it will greatly affect the business and the dancers if the lap dances are taxable.

the judge said that the dances aren't by professionally trained dancers and something like the service provided isn't art

Of course it is being appealed, but they interviewed clubs from all around and they all sounded scared s-less

(added-Please note, both parts area post I had written elswewhere that
I thought was more deserving here, so there is no conflict in origin)

Yeah, I can't wait for my next visit to my local strip joint, woops sorry Gentleman's Club. You call it that and you get to charge more, plus the silicone level is higher

I can't wait ti be all worked up, hot and bothered by a nice, hot lap dance from a smokin' half naked babe and when it's done she whips out a calculator from her g-string and figures out 8.25% on the dance itself. This is after of course the expected, if not pre-negotiated or paid up front tip, especially for how far they go with their non-professional training in s-t-r-e-t-c-h-i-n-g the rules.
Not only will they have to whip out a calculator from their G-strings, they better have one of those silver change devices that dispenses coins when you push down a little lever. Just like the ice cream man.
Hey, if you got to figure out sales tax and collect it you got to do it correctly,,,right.

I can see it now that one of the most sought after jobs will be tha tax collectors or inspectors who will have to go undercover and make sure the sales tax practice is being followed.

IN ALL SERIOUSNESS...if anyone does not think that maybe not today or tomorrow, but when the tax man is really asking for that extra #, there will be a lot less customers, less drinks and possibly less clubs. Who wants to pay more for an already overpriced evening with taxes on lap dances, which are as it is expensive and getting shorter and shorter to get you coming back (no pun intended). Shorter but steamier. Each time, it costs more.

do you think the club is going to take the hit on the money? No way. I would almost guarantee it will be passed on to the dancers.Sure, you here they make tons of $ doing what they do, but there will be a lot less girls dancing when they have to pay out of their own pocket for what is already a tremendous enjoyment I am sure for them!

I forgot. This tax also covers the insanely ridiculous cover charges, especially here in New York.

It is making an already expensive evening out, more expensive, confusing and not as much fun and lucrative for all around.

Look for less dancers, less alcohol, less dancers, less clubs and less PPS on your investments
Stocks: RICK