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Strip club tax in Illinois falls short of expectations

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Lee Enterprises Springfield Bureau
April 16, 2014
STL

stripper-sign-strip-club-mud-flap-girl-neonSPRINGFIELD, Ill.  •  A new tax on Illinois strip clubs generated significantly less money than what supporters hoped it would raise in its first year.

According to the Illinois Department of Revenue, the so-called “pole tax” raised about $380,000 in 2013 to help fund rape crisis centers in the state.

That amount falls far short of the $1 million backers said the new tax would bring in when they pushed it through the General Assembly in 2012.

Under the law, strip club operators pay a surcharge to the state based on their size and revenue. Operators also can opt to pay a flat $3 surcharge for each patron.

Revenue spokeswoman Sue Hofer said 37 companies paid into the fund, meaning each club paid an average of about $10,000 toward the tax last year.

If each establishment had taken the $3 per patron option, that would amount to about 10 customers per day for a club that stays open seven days a week.

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