Patrons of strip clubs and adult theaters would have to pay a state surcharge before going in, under a proposal being looked at by state lawmakers who also want to close a tax loophole enjoyed by roll-your-own cigarette shops.
The House Finance & Tax Committee, which is usually more averse to tax hikes, agreed Tuesday to advance separate “sin tax” bills out of the committee.
One measure would impose entry requirements on adult establishments, including a $10 fee on top of any other existing admission charges.
Also, it would require the business to keep records of customers.
The second measure is intended to prohibit businesses from masquerading as roll-your-own “clubs” to avoid charging state and federal taxes on cigarette sales. Lawmakers said the proposal shouldn’t be seen as a tax increase, but leveling the field for businesses now charging the proper taxes on cigarette sales.
Both proposals were brought forward after the committee reviewed a couple of issues --- reducing a tax on commercial leases and cutting taxes on cell-phone bills and cable television --- that could be used to approach Gov. Rick Scott’s requested $673 million in tax cuts next year.
No estimates were available on the amount of revenue that could be collected from the two “sin tax” proposals.
Many people associate adult entertainment and smoking, along with alcohol and gambling, as forms of vice, and the taxes on them are commonly referred to as “sin taxes.”
Committee Chairman Matt Gaetz, R-Fort Walton Beach, said the proposals would discourage people from frequenting the businesses and could reroute revenue to such efforts as helping victims of human trafficking.
“Should the resources that go to rehabilitate victims of human trafficking come from all 19 million Floridians,” Gaetz asked, “or should people who frequent adult entertainment establishments, which have become a focal point for that illicit trade, pay a disproportionate share to help rehabilitate victims?”
The proposals have yet to make their way to the Senate. Anticipating opposition because the measures would hit businesses, House Finance & Tax Committee members said they need to carefully define both proposals.
Rep. Mike Hill, R-Pensacola Beach, said that while he agreed with the adult-entertainment surcharge, he was concerned about individual privacy in requiring the businesses to keep records on customers.
“When else, because you’re buying a certain product, you’re going to buy a loaf of bread, (and) you have to put your name down?” Hill said.
However, Rep. Charles Van Zant, R-Keystone Heights, said the surcharge should be $10 on night clubs, “where do you not have human nudity,” and $25 “on those who do.”