SPRINGFIELD — A new tax on Illinois strip clubs generated significantly less money than what supporters hoped it would raise in its first year.
According to the Illinois Department of Revenue, the so-called "pole tax" raised about $380,000 in 2013 to help fund rape crisis centers in the state.
That amount falls far short of the $1 million backers said the tax would generate when they pushed it through the General Assembly in 2012.
Under the law, strip club operators pay a surcharge to the state based on the club's size and revenue. Operators also can opt to pay a flat $3 surcharge for each patron.
Revenue spokeswoman Sue Hofer said 37 companies paid into the fund, meaning each club paid an average of about $10,000 toward the tax last year.
If each establishment had taken the $3 per patron option, that would amount to about 10 customers per day for a club that stays open seven days a week.
Like individual tax returns, Hofer said the identity of the facilities paying into the tax are confidential.
The Sexual Assault Services and Prevention Fund, which was championed by state Sen. Toi Hutchinson, D-Olympia Fields, was created as a way to offset declining state support for rape crisis centers.
Polly Poskin, executive director of the Illinois Coalition Against Sexual Assault, said the amount may be less than what was expected because the law only affects establishments that sell or allow alcohol. Chicago bans alcohol at its strip clubs.
But, Poskin added, "We're very grateful for the amount we're getting."
In a prepared statement, Hutchinson said she remains "vigilant" in her efforts to find ways to support services for battered women.
"Every one of those dollars represents needed funding for rape crisis centers," Hutchinson said.
Illinois Department of Human Services spokeswoman Januari Smith said the agency expects to release the funds to the sexual assault coalition sometime after July 1.
An application process for the 29 centers eligible for the money is being developed, Smith added.
Comments
last commentI agree, no one should be surprised when these ill conceived attacks on adult businesses fail to do what they claim. But I am confused!
From my clubbing days in IL, I know that there are more clubs in the state than are listed on TUSCL, and the site list includes 68 clubs. Subtracting the Chicago juice bars and statewide lingerie studios still leaves more than 37 clubs, selling booze and having TUSCL reviews. Did someone not pay, did the report confuse companies and clubs, or were there other exceptions to the law?
Log in to vote
I can't believe that strip club owners would avoid paying taxes!
Log in to vote
It says 37 companies paid in. It could be possible that many clubs are owned by the same parent company.
The last couple times I went to Scores (which will probably be the last couple times I go to Scores), they made you pay the flat $3. At Polekatz, though, it was never brought up.
Log in to vote
Excessive sin taxes never work. They just force the business elsewhere or underground. Look at the yacht tax that was in place in the 90's. The owners and purchasers just move the boats out of US registry, purchased and maintained them elsewhere putting thousands of people out of work that built and maintained those boats. The net result of that tax was a lose of revenue due to the permanent lose of jobs. Abolish income and property taxes and have a national point of sale tax. With taxes in your face every day people will finally realize how much money is being wasted by the governments.
Log in to vote
Only the little people pay taxes-Leona Helmsley.
Log in to vote
Just another pointless tax. Every time we get a new tax, they don't just pay down debt. They start or support some program that just increases debt even more. If the Democrats would use increased taxes to pay debts, more Republicans would support tax increases.
Log in to vote
Because guys who go to strip clubs like to do a little rape on the side. Makes perfect sense!
Log in to vote
The idea behind the bill is good. But the tax.... Stupid.
Because of course business owners and every other tax payer out there are finding ways to pay the least amount possible.
Plus just look how Illinios state government and Chicago city is in debt to its eyeballs. So yeah they really know how to manage money.
Log in to vote
I think they get these taxes as another source of revenue to put in front of bonds and banks loaning the state money. They make some shit up, the bond holder(s) goes "Oh, OK" and hands over even more money. Mark my words, the day is coming where the United States and it's local governments will no longer be able to borrow money, and it is coming soon.
Log in to vote