By: Mansoor Ansari Attorney at Law
Overview and Purpose of the Law
Is there a link between violence against women and strip clubs? Is it fair? Is it penalizing? Who pays? How much will a club have to pay? Is it an official sales tax enforced by the Illinois Department of Revenue?
These are all questions taken into consideration by the Governor of Illinois when he signed the new strip club tax into law in Chicago, Illinois.
Implementation and Details of the Tax
Effective Date and Payment Options
The law takes effect Jan. 1, 2013, and it will place an annual surcharge on strip clubs that have live nude dancing and permit alcohol.
Club owners could:
- Pay $3 per customer
OR - Pay a graduated amount based on their sales
Use of Funds
The revenues will go to a special fund devoted to preventing sexual violence and counseling its victims.
Policy Impact and Industry Response
Funding Sexual Assault Programs
Strip clubs in Illinois will have to remit a share of their revenues, starting in 2013, to help fund programs to prevent sexual assault. The new tax on the clubs will raise funds, helping to reverse several years of funding cuts for rape crisis centers.
Debate and Public Opinion
The law has also incited debate over:
- How strong of a link can be drawn between strip clubs and violent crime
- Whether those businesses should pay out to fight the problems
Illinois rape crisis centers lost 25% of their state funding over the last four years as the government grapples with mounting debts.
Many lawmakers agree that they need to fund sexual assault prevention and critical services for rape victims.
Club owners argued it was unfair to link their businesses with crime and violence, but one said Saturday that the measure signed into law was a reasonable compromise.
From a public policy standpoint, it seems as though there are at least a handful of people that acknowledge the dangers associated with strip clubs and violence against women—or at least the employees that work at such establishments.
Related Legislation Signed
The new tax was one of three laws Governor Quinn signed Saturday to provide greater protection for women against sexual assault and domestic violence.
1. High School Awareness Course
One of the other laws aims to bring a voluntary course to high schools across the state. The course is designed to increase awareness of:
- Domestic violence
- Sexual assault
- Date rape
- Bullying
- Suicide
The course has already been offered in a pilot program at two schools.
2. Prosecutorial Support in Murder Cases
The third law allows prosecutors to use prior domestic violence offenses to support their arguments in first- and second-degree murder cases involving domestic violence.
Statement from Governor Quinn
“Violence against women has occurred in small towns, urban neighborhoods and college campuses,” Quinn said.
“These new laws will help us hold the predators accountable as well as prevent behavior which can lead to sexual assaults.”
Consult a sales tax attorney in Chicago for more information:
📞 (888) 577-1482
Mansoor Ansari J.D., LL.M. (TAX)