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"Strip Tax" Stands in Utah; U.S. Supreme Court Won't Rule on Appeal of Adult-Business Tax

GENERIC: Strip Club, Exotic Dancer, Las Vegas, gambling
CBS
(CBS)

WASHINGTON (CBS/AP) Utah levies a 10-percent tax on adult-oriented businesses, with revenues targeted to pay for treating sex offenders. A group of strip clubs challenged the constitutionality of the tax, saying it was overly broad.

The U.S. Supreme Court says - the tax stands.

The high court on Tuesday refused to hear the strip clubs' appeal to overturn the tax, which was previously upheld by the Utah courts.

The Utah tax on sexually explicit businesses was enacted in 2004, and covers everything a sexually explicitly business sells - including admission, T-shirts, and even hamburgers.

The Utah Supreme Court previously ruled that the so-called "Sexually Explicit Business and Escort Services" tax is not a violation of the business's First Amendment rights.

Other states had been waiting for the outcome of this U.S. Supreme Court case before trying to enact their own taxes that target adult-oriented businesses.