Wednesday, April 23, 2008

The Lodge pays taxes, Texas-style

By Pegasus News wire

Updated 10:31 a.m., April 25, 2008

DALLAS — When The Lodge writes a big check, The Lodge writes a big check.

Scott Mankoff

Sunny Hunter and Paige display the big check on The Lodge stage.

So, when the first payment of a new state tax came due, owner Dawn Rizos adopted the style of Publishers’ Clearinghouse, state lotteries and other momentous monetary machinations. She made her $156,900 payment Texas-style – with an oversized, babe-enhanced financial transfer document befitting the gentlemen’s club.

"We don’t like this tax," said Rizos. "It’s unfair in many ways, and it hurts our industry. But we follow the law, no matter what, and the money is going to a good cause. So at least we’ll try to have some fun."

On Thursday manager Sunny Hunter and dancer Paige unveiled the big check on The Lodge’s main stage as Pink Floyd’s hit “Money” resounded through the club.

The payment comes in the wake of controversial legal maneuvers surrounding a $5 tax on every person entering a gentlemen’s club in Texas:

• Last year the Texas Legislature approved the tax, to take effect on Jan. 1, 2008, with much of the proceeds earmarked to help victims of sexual assault.
• Club owners sued to block the tax as an unconstitutional violation of free expression that unfairly targeted one segment of the entertainment industry.
• On March 28 a state district court judge struck down the law, but the attorney general filed an appeal. The state then declared that filing the appeal superseded the court ruling and allowed the state to collect the tax anyway.
• The club owners have lost two subsequent court appeals to prevent the state from collecting a tax that has been ruled illegal. The first payments covering January through March were due to the State Comptroller on April 21.

The Lodge made its payment on time, then marked the occasion by creating a giant replica.

"These giant checks usually signify a happy event," Rizos said. "And we are happy to support a worthy cause like assault victims. But the state isn’t going about this the right way."

Rizos said she feared the dispute could drag on in the courts for years, "and nobody wins – not us, not the state, and not sexual assault victims. That’s why we’re still hoping for a compromise that will benefit everyone. If there isn’t a compromise, I’m afraid this tax could drive half the clubs in Dallas out of business within a year."

Should the courts compel the state to refund the tax payments, as club owners hope, Rizos said she won’t expect the same approach in return.

"A regular-sized check will do just fine," she said.

Source: The Lodge

See more stories in:

• Hospitality Industry > Restaurants and Bars
• Personal Finance > Taxes
• Politics and Government > Texas > State Government > Texas Legislature

Comments

toddmyers Anonymous

If this law is struck down, who do I talk to to get my, ummmm... $5 back? (OK, it's really more like $5000.00. What can I say, I love "the bars!")

2 months, 4 weeks ago ( Link to this comment | Suggest removal )