Seattle clubs owe thousands for neglecting dance taxon August 18, 2011 @ 7:37 am (Updated: 12:57 pm - 8/18/11 )
"This is just something that's come up in Seattle suddenly, it's not been an issue anywhere else in the state," Mike Gowrylow with the Department of Revenue said of the complaints. "Most business are paying it, but there are a couple big ones that apparently got caught essentially and think it's unfair and didn't know."
The 9.5 percent sales tax has been around since before 1990 and applies to establishments that charge a cover fee to admit patrons who will "have the opportunity to dance" while inside.
"It's a purchase by the customer for the opportunity to dance," Gowrylow said. "It's like going down and buying a stereo at the store, in that sense, but you're buying a service as opposed to a product."
The law can be applied to taverns, music venues and karaoke bars.
The Stranger reported that nightclub owners in Ballard, Fremont and Capitol Hill were confused by the law's language and are asking the state to forgive their debts. One establishment was reportedly told they owe $210,000 in back taxes.
Gowrylow said those who feel they shouldn't owe the taxes can appeal.
Rock Star Rages
A rock star lashed out on Twitter after a Seattle restaurant denied him entry
Don O'Neill says we shouldn't be giving standing ovations to a team that didn't make playoffs
Take a look at the records for biggest saltwater fish ever caught in Washington
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.