Hustler Strip Club Currency Taxable: New York Court

Larry Flynt’s Hustler Club owes sales taxes on the $24 million in “Beaver Bucks” currency used by patrons at the men’s entertainment club, a state appellate court ruled (CMSG Rest. Group, LLC v. State, N.Y. App. Div., 2016 NY Slip Op 07280, 11/3/16).

The New York Taxation and Finance Department properly imposed sales tax on the club’s in-house currency for tipping topless dancers, floor hosts and bartenders as well as gaining entry into private rooms for lap dances, Justice Peter Tom wrote Nov. 3 for a unanimous five-judge panel of the state Supreme Court Appellate Division, First ...