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We want to pay tax, say ladies of the night

iol.co.za

By Kathleen Hennessey

May 12 2005 at 11:56AM

Mound House, Nevada - Nevada's legal brothels are practically begging the state of Nevada to tax them, hoping that will endear them to the public and give them more political security and, ultimately, more business.

But the politicians are not interested.

Last month, one proposal to impose the tax failed to come to a vote in a state assembly committee; another was gutted in a senate committee.

'I don't believe in legal prostitution, but I'm not a zealot about it either'
A spokesperson for Republican governor Kenny Guinn says the idea is "not something the governor is going to waste any time on".

"The governor just thinks it's a local government issue and not part of his agenda," Greg Bortolin says.

"He thinks, as well, that he would be affirming the industry if he came out in support of the bill."

Nevada is the only state where prostitution is legal. But the state keeps the industry at arm's length. It does not levy a business tax on houses of ill repute, it bars them from advertising, and it doesn't allow them in the state's biggest urban area, Las Vegas.

In fact, the decision of whether to allow prostitution is made on a county-by-county basis, with state law largely silent on the matter.

"We're the only industry in the state that in one move of the legislature or the governor can be swept away entirely," says Nevada Brothel Association lobbyist George Flint.

"If more people move to this state with Nebraska or Iowa or California licence plates, the old Nevada mentality that always tolerated us is going to be diluted."

So Flint has come up with a solution: "If we contribute and do nice things for the state, maybe the state will like us better."

Two years ago during a budget shortage, the brothels came close to getting their wish, but last-minute negotiations inadvertently exempted them from a tax on live entertainment.

This year, they had an unlikely ally in an anti-prostitution lawmaker who sponsored a measure proposing a tax of about $2(R12,28) per customer. It was expected to bring some $3,2-million to the state over the next two fiscal years.

"I don't believe in legal prostitution, but I'm not a zealot about it either," says the sponsor, Sheila Leslie.

"They're a legal business, they should contribute like every other legal business, and I'm willing to make that happen."

Brothels are legal in 10 of Nevada's 17 counties, which charge a quarterly business fee from $100 to $20 000 and a work permit fee of $50 per prostitute.

Some counties get as much as 25 percent of their business fees from brothels.

Many brothel owners are willing to pay more. The state's 28 bordellos make the equivalient of between R122-million and R307-million annually, says Geoff Arnold, president of the Nevada Brothel Association.

Many think paying a tax will ultimately help them lift the ban on advertising. They want to be able to use billboards or fliers, or at least advertise openly in the phone book. (Brothels are now listed under "massage" in the Yellow Pages.)

Bobbi Davis, owner of the Shady Lady Ranch, a brothel about 193km outside Las Vegas, says paying taxes is the way to go.

"There's a price, sometimes, for legitimacy," he said.

Precious, a prostitute at Shady Lady Ranch, says even if the owners pass the tax on to the girls, it won't be a problem.

"What's a couple extra dollars off? I can waste that on lip gloss or new eyeliner," she says.

"That's chump change for what some of the girls make here."

Prostitutes at Shady Lady Ranch make up to $1 000 daily during peak tourist season, she says. (Brothels and prostitutes are subject to federal income tax on their overall earnings, but Nevada has no state income tax.)

Dennis Hof, owner of the BunnyRanch, is against the idea. He says brothels already pay their fair share and should not have to "pay for legitimacy".

Flint says the tax offer stands, should future legislatures want to take him up on it. In the meantime, he said, "I bow to the wisdom of the legislature." - Sapa-AP

  • This article was originally published on page 11 of The Star on May 12, 2005

Star

Published on the Web by IOL on 2005-05-12 07:15:00

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