Thursday, May 17, 2012

Amended Illinois Strip Club Tax Passed by Senate Committee

Posted By on Thu, May 17, 2012 at 10:33 AM

It's not a law yet, but the Illinois Senate Public Health Committee unanimously passed an amended version of Sen. Toi Hutchinson's (D-Chicago Heights) "skin tax" bill. Rather than the originally proposed $5 per patron charge (with the money collected going to fund rape crisis centers) Illinois strip clubs will now have two options to pay.

Strip clubs with liquor licenses can either pay a $3 per patron surcharge -- a cost that will most likely be paid by you at the door -- or pay a flat rate based on their taxable income. The latter option requires a club with $500,000 or less in taxable income to pay $5,000 in taxes every year; income between $500,000 and $2 million generates a $15,000 tax; and clubs that make more than $2 million annually would pay $25,000. If the strip club doesn't serve alcohol, they're exempted from the tax.

The bill, SB3348, now goes to the state senate for a vote, which has not been scheduled yet.

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