dance
Several Seattle nightclubs have complained that they were visited by state auditors who say they owe thousands in back taxes for giving patrons an "opportunity to dance." (AP Photo/Steve Pope)

Seattle clubs owe thousands for neglecting dance tax

BY Brandi Kruse  on August 18, 2011 @ 7:37 am (Updated: 12:57 pm - 8/18/11 )

Related:
Several Seattle nightclubs have complained that they were visited by state auditors who say they owe thousands in back taxes for giving patrons an "opportunity to dance." The Department of Revenue, however, says the sales tax is nothing new.

"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.

Brandi Kruse, KIRO Radio Reporter
Brandi Kruse is a reporter for KIRO Radio who is as spontaneous and adventurous in her free time as she is on the job. Brandi arrived at KIRO Radio in March 2011 and has already collected three regional Edward R. Murrow awards for her reporting.
Related:
More Local News
Top Stories

  • Destruction
    A mile wide tornado roars through Oklahoma City suburb at 200 mph

  • Messiest
    New lane restrictions mean Mercer Street is tough to travel during afternoon commutes

  • Tax Exempt Robocalls
    What the IRS kerfuffle could mean for the Tea Party and other political organizations
MyNorthwest.com - Purpose of Comments statement
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.

Comments (33)


  • Add A Comment

  • adiru wrote...
    Ingenious!
    August 18, 2011 8:06 am
    An opportunity tax.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • LGW wrote...
    sigh...
    August 18, 2011 8:09 am
    might as well tax me for the Opportunity to breathe.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Vlastimil wrote...
    audits
    August 18, 2011 8:22 am
    The state should focus more on auditing spending rather than stretching interpretations of tax codes in order to ensnare more businesses. The state is more and more resembling the mob. Pay up or face demolition. My soccer league already got the shaken.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Irish Rover wrote...
    Vote Democrat and get taxed up the wazoo
    August 18, 2011 8:29 am
    "Charge 'em for the lice, extra for the mice ... Two percent for looking in the mirror twice ....Here a little slice, there a little cut Three percent for sleeping with the window shut" You get what you vote for !
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • adiru wrote...
    Those not going to Seattle's clubs
    August 18, 2011 8:40 am
    will be hit with a missed-opportunity tax.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • GDHubly wrote...
    @Irish Rover
    August 18, 2011 8:54 am
    Thank you for putting a smile on my face...
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • roomtemp wrote...
    Some thoughts...
    August 18, 2011 8:58 am
    If the state really wants to make some money they should install a scale at the front door and tax them by the pound.

    The club should cordon off the dance floor and install a coin op turnstile with a sign that says... Please insert your government mandated dance tax here.

    The club could put up a "performance art area" sign over the dance floor and sign up for state art endowments.

    @adiru... Opportunity tax LOL! nice...

    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Fuego wrote...
    Get used to it...
    August 18, 2011 9:57 am
    With budget cuts the various state departments are looking for ways to raise money. These audits will increase in frequency and in some cases cause unsuspecting businesses to close.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • messiah101 wrote...
    Fuego
    August 18, 2011 10:32 am
    This tax is more then 20 years old.These business's have been collecting it and pocketing it for some while now
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • artimus wrote...
    I think white people should be (dance) taxed on a sliding scale
    August 18, 2011 10:01 am
    Better yet, tax them so onerously that they slow their roll. I was at an R&B show earlier this summer and it was a little scary watching the pale folk attempting to get their freak on...
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • fishnpol wrote...
    For once
    August 18, 2011 10:10 am
    Messiah said something that was at least somewhat intelligent for once. The tax is on the cover charge not the dancing. Anytime money changes hands the government wants a piece of the pie. As far as the B.& O. tax goes, that costs this state gobs and gobs of jobs by running small businesses out of business and keeping the alot of the ones they don't run out of business on the ropes to where they can't hire anyone and have a hard time keeping their doors open. That tax probably costs the state alot more money than it brings in, in the long run with lost revenue from the jobs it's designed to take away, to paying out government services (food-stamps, health care, unemployment, ect, ect) to the people that could have otherwise been working, not to mention lost sales tax the state would have picked if the people would have been working and spending money. Candidates should be given a common sense test before they can serve in government, that would do away with the majority of the liberals. That's why this country is where it is today, to many ignorant people running it with absolutly no common sense. Any common sense will tell you that you can't keep spending more money than you bring in without getting into deep, deep trouble, and that's where we are today folks, not enough jobs and deep, deep trouble.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Weiser Postban wrote...
    Wrong
    August 18, 2011 10:15 am
    You can't charge a sales tax for nothing. The tax is for "dancing" or the "Chance to Dance" It's also taxed as Revenue in B&O and it's complete KRAP! The bar is not providing a service or product when you enter their place. There should be NO SALES TAX tied to that. It's just additional INCOME that is already taxed at the B&O rate. This state and city are sick.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • fiddlepimp wrote...
    amen
    April 1, 2013 11:17 pm
    they tax the candles on the table, the flowers outside, etc etc
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }