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Wednesday, August 17, 2011

Nightlife A Recently Implemented Tax on Any Bar with a Dance Floor Threatens to Shut Down Well-Known Clubs

Posted by Dominic Holden on Wed, Aug 17, 2011 at 12:22 PM

Cienna Madrid reports in this week's paper:

Several nightclub owners in Ballard, Fremont, and Capitol Hill had every reason to believe their businesses were current on taxes. But within the last seven months, state auditors told at least three Seattle club owners that, in fact, they owed thousands of dollars in back taxes—up to $210,000 in one instance—due to a vaguely worded state code originally written to tax aerobics and jazzercise studios.

"This is the first time, in my experience, that they've applied this tax to music venues," says Seattle Office of Film + Music director James Keblas. "I'm worried about all our live music venues—even nonprofits—suddenly being audited and being told to pay or they'll be shut down."

The owner of one such bar, who asked to remain anonymous, concurs that unless the state waives the huge, unexpected bill, "I'll be shut down." And at this rate, the bar owner continues, the state is "going to shut down more businesses."

Read the whole thing, including the state Department of Revenue's explanation that "if there's a dance floor where you could dance—you don't have to dance but the opportunity is there—or if there's a microphone available for standup comedy or karaoke, there's a tax."