CARSON CITY, Nev. (AP) — Nevada's live entertainment tax is under fire by Las Vegas strip club owners who argue it amounts to an unconstitutional levy on protected speech and expression.
The clubs have been paying the 10 percent tax on cover charges, food and beverages for the past decade but want a refund from the Department of Taxation.
In arguments Wednesday before the Nevada Supreme Court, lawyers for the clubs argued the tax violates the First Amendment because it targets adult entertainment content.
But a state lawyer counters that the levy began as a casino entertainment tax and was expanded over the years to other venues. He argued it isn't a tax on free speech but rather a business transaction.
Justices took the arguments under advisement and will rule at a later date.
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