One of those unnamed Seattle nightclubs in the Stranger’s story about troubles with the “dance tax” is now named. And Neighbours says it is prepared to duke it out with the state tax man:
Attorneys for Neighbours Nightclub—a dance club and gay institution on Capitol Hill—are going on the record to say they have found at least 25 other music venues in the Seattle area recently hit with an “opportunity to dance” tax by the state’s Department of Revenue (DOR). Mark Kimball of MDK Law Associates says Neighbours is preparing to fight the DOR’s “bald-face money grab” and contest the club’s new tax bill by taking the DOR to court.
“We hope to bar [the DOR] from taxing clubs such as Neighbours in the way they’re doing now,” says Kimball. He says Neighbours currently owes a “six-figure-plus amount,” but hastens to add that paying it “won’t put the club out of business—unlike many others.” Kimball anticipates filing a lawsuit in King County or Thurston County within the next six months.
In the meantime, new clubs Q and The Social are soon to open. Note to the new guys: You might want to watch how this one plays out as you’re planning your tax strategy.