Philadelphia brings in 'lap dance tax' at gentlemen's clubs

• Officials have imposed an amusement tax  on the city's strip joints for lap dances
• The tax is five per cent
• Strip club owners are arguing that they are being taxed twice for the same thing and have appealed the  tax
• Officials say the lap dance is a  'separate experience' and therefore should be subject to the  tax

PUBLISHED:12:24 EST, 9 July  2013

City officials in Philadelphia have recently  failed to introduce taxes on soda and cigarettes, but they have quietly decided  that lap dance should be subject to the city's amusement tax - and slapped the  city's strip joints with a hefty bill in unpaid taxes.

The five per cent amusement tax apparently  came as a surprise to the owners of two of the biggest strip clubs in the city,  Club Risque and Cheerleaders.

The city audited lap dances and then issued a  tax bill going back five years.

Moneymaker: Philadelphia is charging a five per cent  'amusement tax' on lap dances

'It's over the top. Unbelievable,' said  George Bochetto, the lawyer representing the two clubs, to the  Philly.com.

Bochetto claims it's sheer 'financial  desperation' and that the city is essentially charging the business tax on the  same thing twice.

According  to Philly.com,  officials say they can apply the  amusement tax to the businesses because the lap dance is a 'separate  experience'.

Bochetto disagrees, pointing out that the  wording of the amusement tax seems to discredit its application to lap  dances.

Risky business: Club Risque in downtown Philadelphia

Not cheering: Cheerleaders owes more than $450,000 to  the tax department due to the amusement tax

The tax is to be 'Imposed upon the admission  fee or privilege to attend or engage in any amusement.'

Shake down: Exotic dancers make all their money from  tips and aren't usually paid a wage by the clubs they dance at - and they pay a  percentage of their earnings to the club

The Philadelphia state government  describes  the tax as being applied to 'the admission fee charged for  attending any  amusement in Philadelphia. Included are concerts, movies,  athletic contests,  night clubs and convention shows for which admission  is charged.'

Bochetto argues that any money thrust at a lap  dancer as she goes about her business is not an 'entrance fee'. However, the  clubs do profit from lap dances, with dancers giving the clubs a percentage of  their earnings.

In addition, the clubs don't pay the women  who perform lap dances; they rely on tips to earn their living. The clubs make  their money from drinks and entrances fees - earnings on which the business tax  is imposed.

Club Risque, which bills itself as 'the  Delaware Valley's premier gentlemen's club' charges a $5 entrance fee Monday to  Thursday, a $10 fee on Fridays and $15 on Saturdays.

According to Philly.com, Club Risque is  appealing its tax bill which is $320,538. Cheerleaders has incurred an even  bigger bill of $486,482.

The clubs will make their  case before the Tax Review Board on July 23.