A Senate bill that would create a special live entertainment tax for strip clubs has been referred to the Assembly Ways and Means Committee in spite of its constitutionality being questioned, according to a published report.
Majority Leader Barbara Buckley, D-Las Vegas, said Senate Bill 247 in its current state sends up a "red flag for the courts" to declare it unconstitutional, the Las Vegas Review-Journal reported.
Senate Minority Leader Dina Titus said during an Assembly Commerce and Labor Committee hearing that strip clubs are not paying their fair share of taxes and the Legislature should risk a court challenge, the newspaper said.
Titus' bill revamps the live entertainment tax law approved two years ago by the Legislature. Strip clubs pay about $6 million a year in taxes under that law, although legislators had anticipated it would generate $75 million, according to the report.
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