That’s What She Said

As Tucson City Council members wrestle with a troublesome budget,
Ward 6 City Councilwoman Nina Trasoff has her eye on a sexy new revenue
enhancement: A fee on cover charges at local strip clubs.

In a memo fired off to City Manager Mike Letcher last week, Trasoff
asked the city staff to probe whether a tax on “per-person fee(s) to
adult entertainment venues” was on firm legal ground and, if so, how a
fee ranging from $1.50 to $5 would fluff up the city budget.

“We have to be creative in understanding how to find alternative
sources of revenue that are not going to hit those who can least afford
it the hardest,” Trasoff says.

On a slow Sunday night at Curves Cabaret, reaction to Trasoff’s pole
tax was mixed among the women at work.

“That’s fucked up,” said K.B., a buxom dancer with a background in
finance. “Do you think they’re going to use it on anything that
benefits us? It’s just going to line their pockets. Why don’t they tax
the churches, all the money in that plate they pass around?”

The willowy Gemini was less critical of the idea.

“It’s a luxury, so why not try it and see what happens?” she said.
“If it’s too high, and business dries up, they’ll have to get rid of
it.”

But Gemini was skeptical that the tax would amount to much, because
the club’s crowds have shrunk as the nation’s economy has deflated.

Mike Pavon, the owner of Curves, confirms that he’s facing hard
times, with revenues falling off 30 percent from where they were four
years ago.

“If this tax goes in, it’s going to really hurt,” says Pavon. “Guys
will quit coming in. This is not a recession-proof business.”

His troubles notwithstanding, Pavon says it’s unfair to put the
squeeze on his industry.

“We think it would be more fair if they decided to put a tax on
every patron who went into Sullivan’s or Macaroni Grill or any place
that has a liquor license,” Pavon says. “Then you can at least say it’s
a liquor-oriented tax. But to just say that every patron, no matter
whether they spend $10 or $500, is going to have to pay the same $5
cover charge back to the city—I don’t think that’s fair. They’re
already getting sales tax from us.”

He added that the nature of his business makes him an attractive
target.

“People in government know that no one is going to rush to the aid
of adult entertainment,” Pavon says. “But it all comes down to First
Amendment rights—the right of free speech and
self-expression—and it all comes down to how much control do you
want from the government?”

Pavon points out that a similar law in Texas has been tied up in the
courts since it was passed two years ago. A federal district court
ruling that the law is unconstitutional is under appeal by the state,
and a compromise bill is now under consideration by the Texas
Legislature.

“Is it constitutional?” Pavon asks. “Well, that would be up to a
judge to determine, but you can bet that the adult-entertainment
industry in this town isn’t going to just sit down and do nothing about
it.”

City Attorney Mike Rankin was still researching the city’s legal
position this week, but he acknowledged that, in light of the Texas
case, the city could face a legal challenge if the fee were
implemented.

Trasoff responds: “I don’t want to do something that’s just for show
that’s going to be overturned by the courts. I want something that’s
substantive and that’s going to work. If we need to broaden our
approach to avoid constitutional issues, that’s something that I’m
exploring already with the city attorney.”

Trasoff’s pole-tax proposal comes as City Council members are
struggling to get a grip on a budget crisis brought on by limp
sales-tax collections. In an effort to boost the city’s vitality, the
council is massaging a staff proposal that includes a rent tax on
housing, higher taxes on utilities and stiffer fees for park use,
recreational classes, trash collection and bus fares.

At a hearing on the proposed budget last month, the council faced an
explosive crowd that included members of the nascent teabag movement,
who were particularly critical of the rent tax.

Pavon says members of the council are trying to compensate for their
financial shortcomings.

“They’re only doing this because of the position they’re in,” Pavon
says. “If we were in an economic boom, they wouldn’t even be
considering this tax. Are they going to dispense with the tax once
economic health comes back? I doubt it. Once they institute taxes, they
don’t generally get rid of them.”

This article appears in May 14-20, 2009.