IN THE MATTER OF 1605 BOOK CENTER INC. v. TAX APPEALS TRIBUNAL OF THE STATE
OF NEW YORK ET AL.,
83 N.Y.2d 240, 631 N.E.2d 86, 609 N.Y.S.2d 144 (1994).
February 15, 1994
3 No. 10 (1994 NY Int. 013)
Decided February 15, 1994
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This opinion is uncorrected and subject to revision before publication
in the New York Reports.
BELLACOSA, J.:
Article 28 of the Tax Law requires a sales tax to be paid on "any
admission charge" for use of "any place of amusement". The issue is
whether Tax Law §1105(f)(1) permits the State taxing authority to
collect a sales tax on receipts derived from patrons depositing coins
in peep show booths to view or converse with live entertainers. We
granted leave to appeal and agree with the Appellate Division that the
gross receipts for admission to this place of amusement are taxable.
During the tax period at issue, appellant 1605 Book Center, Inc.,
conducted a business in New York City's Times Square area. It sold
sexually oriented books and magazines, operated a motion picture
theater, and provided live peep show booths on its premises for
patrons to enter and activate by the deposit of a coin.
In July 1980, following an audit, the State Division of Taxation
issued a Notice of Determination and Demand for Payment of sales and
use taxes due for the period March 1, 1976 through August 31, 1979,
assessing tax due of $141,686.11 plus interest. The audit report
indicated that four categories of sales were included in the audit,
including those for sales taxes on two types of live peep shows. The
first included those available by coin-operated machines, in private
booths that surrounded a stage on which nude or partially nude females
performed. The other venue, known as the "fantasy booth," also
functioned with a coin deposited in a private booth, allowing a patron
to converse with a scantily-dressed woman. In both booths, the patron
was separated from the performer by a glass partition which was
covered by a curtain or screen. The curtain parted for a set time only
after the patron deposited a coin into the machine.
Petitioner challenged the tax assessment. Following a hearing, an
Administrative Law Judge granted the petition in part, but, as
SNIPPETS:
This opinion is uncorrected and subject to revision before publication in the New York
Article 28 of the Tax Law requires a sales tax to be paid on "any admission charge" for use
The issue is whether Tax Law §1105permits the State taxing authority to collect a sales tax
We granted leave to appeal and agree with the Appellate Division that the gross receipts for
It sold sexually oriented books and magazines, operated a motion picture theater, and
The other venue, known as the "fantasy booth," also functioned with a coin deposited in a
the patron was separated from the performer by a glass partition which was covered by a
Following a hearing, an Administrative Law Judge granted the petition in part, but, as
On appeal, the Tax Appeals Tribunal denied the exemption asserted by appellant, upheld the
Petitioner commenced this CPLR article 78 proceeding to annul the determination, asserting
The Appellate Division confirmed the determination and dismissed the petition (Matter of 1605
The term "admission charge" is defined in Tax Law §1101as "he amount paid for admission,
The question devolves to one of pure statutory interpretation and analysis, determinable only
The Court's cardinal function in interpreting any statute should be to "'attempt to
When, however, due to nuances and variations of human language, reasonable minds differ as to
The facts are uncontroverted that the mechanics for utilizing the live peep shows and fantasy
the patron could place coins in a slot which raises a screen or curtain and enables the
The booth provides the patron with privacy, screens out noise and light, and ensures that
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