Citing a 1993 law that imposed a 9.5-percent sales tax on amusement, recreation and physical fitness activities that include businesses that provide their clientele with the "opportunity to dance," the DOR has audited 13 (out of 44) Seattle-area bars, taverns and clubs for the tax. And in some cases, the agency is attempting to retroactively collect taxes for several years that could threaten to bankrupt some venues that could owe the state upwards of $200,000.
Club owners say the nightlife industry is being targeted because it is one of the few types of businesses weathering the recession.Full story here!
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