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Archives for January 2009

January 26, 2009 By NBA Staff

Nevada brothels want to pay tax, but state says no

(Steve Friess | New York Times) – It is virtually unheard of for any legal industry to ask to be taxed. And it would seem even more unlikely for any government, especially one facing down a nearly $2 billion budget gap, to hesitate when a business is willing to pay up.

Yet such is the case for Nevada’s brothels, a $50-million-a-year industry that pays significant amounts of tax to the rural counties in which they operate but only a $100 business license fee to the state.

The industry’s lobbyist, George Flint, director of the Nevada Brothel Association, has been approaching the Legislature’s leadership for months about creating an entertainment tax that would require the state’s 25 legal brothels to give the state some money on a per-transaction basis.

“I am a voice crying in the wilderness,” said Flint, who does not own any brothels himself. “It’s not going to make a hell of a lot of money, but we would be happy to pay our fair share. We can’t even get a hearing. The speaker of the House told me, ‘As bad as it is, I don’t think we want to go there.”‘

Nevada is the only state where prostitution is legal, but by state law it also is restricted to counties with fewer than 400,000 residents. That outlaws it in two counties, Clark, which contains Las Vegas, and Washoe, which contains Reno. There are about 225 women licensed by the state as prostitutes; no county allows brothels to have men who sell sexual services.

Still, since 1971, when prostitution was legalized, Nevada has added more than two million residents and become significantly more socially conservative. The state has also lost much of its frontier mentality, so Flint acknowledges that the tax effort is “something of an insurance policy” against the Legislature’s deciding one day to do away with the industry.

“Anytime you’re going to take tax money, the state’s not going to view you as a relic of a past time and put you out of business,” said Flint, who said he was gaining traction for a brothel tax in 2003 until he made the faux pas of joking to a reporter that he would commit to putting the governor’s portrait in every prostitute’s lair along with a note reading, “Don’t forget the governor’s share.”

Like most states, Nevada is facing economic problems. Governor Jim Gibbons, a Republican, submitted to the Legislature this month a budget that included 6 percent pay cuts for teachers and a 36 percent reduction in all higher-education financing to help close an expected $1.8 billion revenue gap created in part by dwindling tourism profits and a collapsing housing market.

Gibbons’s budget – which proposes the deep cuts to avoid any tax increases, in keeping with his 2006 no-tax-increases campaign pledge – was rejected out of hand by leaders of the State Senate and the House, both of which are dominated by Democrats. In Speaker Barbara Buckley’s response to the proposal and to Gibbons’s State of the State address on Jan. 15, she vowed to “gather all the facts, tap the best minds in the state, hear all points of view and commit ourselves to finding meaningful solutions.”

Still, Buckley said she did not support taxing brothels because she believed that to do so the state would have to legalize prostitution in the largest counties, “and I just don’t support the idea.” Asked why she supports prostitution in some areas of the state and not others, Buckley declined to answer except to say that legalization came “way before the time I was elected.”

Flint does have at least one legislative ally, Senator Bob Coffin, a Las Vegas Democrat and the incoming chairman of the Senate Taxation Committee. Coffin said he was willing to hold a hearing on the matter in the coming legislative session, which starts next month.

Coffin disputed the speaker’s assertion that a brothel tax would require statewide legalization and called it a “legal backdoor” to avoid the matter.

“There is a way to make it work, just as we make all these other legal contortions work based on population,” he said. “You can do it if the legal counsel says we can do it. And we should, because the brothels have been essentially exempted from the sharing of the burden that we all have to spread around on as many people as possible so the impact is less.”

Not all brothel owners support Flint’s efforts. Dennis Hof, owner of the Moonlite Bunny Ranch in Mound House, said his brothel was the “highest private taxpayer in Lyon County” and questioned why anyone would “consider another layer of tax on me. It’s unbearable in this economy.”

Hof, whose brothel is the subject of the long-running HBO reality show “Cathouse,” said he paid $78,000 a year for his county business license and $25,000 a year to the local health department officials. “The legislators are saying they’ve got bigger issues to deal with,” said Hof, who has long disassociated himself from Flint and the brothel association. “The state needs $1 billion. The money they would get from a brothel tax is a small amount of money. So why bring it up? If the Legislature thinks they need to get some more money from us, we’ll deal with it on our own.”

And even brothel owners who support the idea of being taxed by the state are not as worried as Flint is that the Legislature might ban the business. James Davis, owner of the Shady Lady Ranch in Scotty’s Junction, said legislators from the smaller counties would never allow the state to eliminate one of their few reliable sources of local tax revenue.

Buckley said she suspected that Flint’s motive was to first have the industry taxed by the state and then build a case for legalizing it in the larger counties. And Flint acknowledged that he hoped he could show the Legislature how much money the state is losing by not regulating and taxing the booming illegal prostitution industry in Las Vegas. (The closest legal brothels to the Strip are more than 60 miles, or 95 kilometers, away in Nye County.)

Flint has another outspoken ally, Mayor Oscar Goodman of Las Vegas, long an advocate of having legal brothels in the city. The mayor said that Nevada’s reputation is such that most travelers already believe that prostitution is legal throughout the state.

“They tell me we’re missing tens of million of dollars that could be used for the school system, to keep jail guards employed, to provide mental health services,” Goodman said.

“I also believe that by regulating and controlling this business, we could make it much safer for the customers as well as the prostitutes. We kid ourselves and we’re very disingenuous if we pretend that there isn’t rampant prostitution now that is unsafe for which we get no tax revenue.”

Filed Under: In the News

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Suzette Cole, CEO, Moonlite Bunny Ranch

“Prostitution is the oldest profession and will not go away.  Nevada has been doing it right since 1971 when we took it out of the criminal’s hands and put it into a highly-regulated industry.  As an added benefit, there has never been a case of HIV/AIDS in the history of legal brothels here…and you can’t say that about any other profession in the United States.”

John Stossel, Syndicated Columnist

“We don’t have to cheer for prostitution, or think it’s nice, to keep government out of it and let participants make up their own minds.  It’s wrong to ban sex workers’ options just to make ourselves feel better.”

Steve Chapman, Syndicated Columnist

“Prohibition doesn’t eliminate the harms generally associated with prostitution, such as violence, human trafficking and disease. On the contrary, it fosters them by driving the business underground.”

Christina Parreira, UNLV Researcher/Sex Worker

“Sex work is my CHOICE.  I’d like to continue to have the opportunity to make that choice legally.  We don’t need protection. We’re consenting, adult women.”

Washington, DC Councilman David Grosso

“We need to stop arresting people for things that are not really criminal acts. We should arrest someone for assault…but when it’s two adults engaging in a consensual sex act, I don’t see why that should be an arrestable offense”

New York Assemblyman Richard Gottfried

“Trying to stop sex work between consenting adults should not be the business of the criminal justice system.”

U.S. Sen. Cory Booker

“Yes, sex work should be decriminalized.  As a general matter, I don’t believe that we should be criminalizing activity between consenting adults, and especially when doing so causes even more harm for those involved.”

U.S. Sen. Bernie Sanders

“I think the idea of legalizing prostitution is something that should be considered…(and) certainly needs to be discussed.”

U.S. Sen. Kamala Harris

“When you’re talking about consenting adults, I think that, yes, we should really consider that we can’t criminalize consensual behavior, as long as no one is being harmed. … We should not be criminalizing women who are engaged in consensual opportunities for employment.”

U.S. Sen. Elizabeth Warren

“I believe humans should have autonomy over their own bodies and they get to make their own decisions. … I am open to decriminalizing sex work. Sex workers, like all workers, deserve autonomy and are particularly vulnerable to physical and financial abuse.”

U.S. Rep. Tulsi Gabbard

“If a consenting adult wants to engage in sex work, that is their right, and it should not be a crime. All people should have autonomy over their bodies and their labor.”

Gov. John Hickenlooper

“Legalizing prostitution and regulating it, so there are norms and protections and we understand more clearly how people are being treated and make sure we prevent abuse, I think it should be really looked at.”

Mike Gravel, former Alaska Senator

“Sex workers are workers, and they deserve the dignity and respect that every worker deserves. For too long, we’ve denied them that. Sex workers, not politicians, should lead the way in crafting sex work policy.”

Prof. Ronald Weitzer, George Washington University:

“Unlike illegal street prostitution in many other places, Nevada’s legal brothels do not disturb public order, create nuisances, or negatively impact local communities in other ways. Instead, they provide needed tax revenue for cash-strapped rural towns.”

Prof. Barbara Brents, UNLV author, “State of Sex”:

“Teams of scholars…have concluded that Nevada’s legal brothels provide a far safer environment for sex workers than the criminalized system in the rest of the United States.”

Prof. Sarah Blithe, UNR author, “Sex and Stigma”:

“Discussions of legal prostitution are rife with misinformation.  Academic work and popular press publications alike often conflate legal prostitution in the United States with illegal prostitution.”

Lee Herz Dixon:

“Do I think eradicating legal prostitution from all Nevada counties will erase the practice of the oldest profession in the state, or break the nexus of drugs, crime, and exploitation of the vulnerable? I do not.”

Journalist Michael Cernovich:

“It’s empirically proven that criminalizing sex work allows children to be sex trafficked more readily as they are afraid to turn to authorities and wonder if they will be arrested.”

Enrique Carmona:

“We need to put aside moralistic prejudices, whether based on religion or an idealistic form of feminism, and figure out what is in the best interests of the sex workers and public interest as well.”

Ruby Rae, professional courtesan

“In the brothels, we have the choice, always, to say which clients we will say yes and no to. We have staff that would never let a man hurt us, and we have a clientele that do not come here to hurt us.”

Kiki Lover, professional courtesan:

“We are human beings who chose to do sex work on our own free will. We get treated with respect and like family at the brothels. It’s a job just like any other job. We sell a service that all humans need.”

Paris Envy, professional courtesan:

“I’m not ‘exploited.’ I’m not ‘trafficked.’ I’m not ‘brainwashed.’ I don’t need to be ‘saved.’ I’ve freely chosen this line of work, which is a legal, private transaction between consenting adults.”

Alice Little, professional courtesan:

“It’s ILLEGAL sex work that exploits children. It’s ILLEGAL sex work that traffics. It’s ILLEGAL sex work that sees women exploited and abused by pimps.”

Jim Shedd, Nevadan

“Prostitution should be licensed, regulated, taxed like any other service industry.  There are many single or widowed men and women who should be able to take advantage of such services provided by consenting adults for consenting adults. Let’s act to at least reduce illegal sex trafficking and other sex crimes by creating safe and legal outlets for paying adults who wish to use them.”

Paul Bourassa, brothel customer:

“Some people are just never given a chance in the dating scene, so brothels offer those of us with no experience a chance to learn what it’s like to be on a date.”

Lewis Dawkins, brothel customer:

“It’s not always about sex. Little compliments and encouragements offered by the ladies help build my self-confidence. It’s a business, yes. But the ladies care personally about their clients. That means a lot.”

Brett Caton, brothel customer:

“I think brothels provide an important function in society. Legal ones give a safe outlet to their customers and for some men it is the only way they get so much as a hug.”

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The Nevada Brothel Association PAC is a coalition of legal brothel owners, brothel workers, brothel clients and brothel supporters dedicated to defending a woman’s right to choose professional sex work as a career, protecting the public’s health and safety, and preserving Nevada’s rich live-and-let-live heritage.

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