New York Strip Clubs Stuck With $2.3 Million Sales Tax Bill

Two defunct New York City strip clubs owe the state an additional $2.3 million in sales tax for admission charges, drink sales, lap dance charges, private room rentals, and sales of scrip, their fictitious currency, a state tribunal ruled.

Anthony Capeci owned 44th Enterprises Corp. and MLB Enterprises Corp., which operated Lace Gentlemen’s Club and Diamond Club Gentleman’s Cabaret in New York City from 2010 to 2014. A state audit determined the clubs had additional taxable sales of $40.5 million for the period at issue, on which they owed the additional tax, ...