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LEGAL AND ILLEGAL: Tax on prostitution proposed

Senator estimates $2 million in revenue

CARSON CITY -- A state lawmaker has proposed a $5 tax on acts of prostitution in Nevada, where brothels operate legally in some areas, and a counseling agency for sex workers that would be funded by part of the tax revenue.

"We're desperate to find money for essential government services, so I will go anywhere to do that," Senate Taxation Chairman Bob Coffin, D-Las Vegas, said Tuesday in discussing his plan.


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  • He estimates it would raise at least $2 million a year from sex acts in the legal bordellos.

    Coffin said the idea of getting taxes from the brothel business has been discussed for years but was rejected because "people weren't willing to get their hands dirty" -- even though the legal brothels volunteered to be taxed.

    "I don't know why people won't recognize that we have a legal industry," Coffin said. "I'm willing to go in and do the dirty work if no one else will."

    George Flint, a spokesman for the brothel industry, said he thought the legal bordellos would support Coffin's plan, which would require approval on a two-thirds vote in the state Senate and Assembly, and Gov. Jim Gibbons' approval.

    The governor, who has steadfastly opposed higher taxes unless there is public support, wouldn't sign the bill if it reached his desk, spokesman Dan Burns said.

    Asked to comment, Gibbons said, "I'm not a supporter of legalizing prostitution in Nevada. So by taxing it, there's a recognition of the legality of it. And that's all I want to say."

    The plan faces a lengthy legislative process before it could go to the governor. If approved by Coffin's Taxation Committee, which introduced Senate Bill 369 on Monday, the measure then would go to the Senate Finance Committee before moving to the full Senate. A similar process would occur in the Assembly.

    Coffin's plan would apply to illegal and legal prostitution, although it wasn't immediately clear how the illegal activity would be tracked for tax purposes.

    With the 25 legal brothels, which operate in outlying areas, the levy could be paid either by patrons of the prostitutes, the sex workers or their employers.

    Prostitution is illegal in Clark, Washoe and in three other counties. Ten other counties authorize prostitution by local ordinance, while two others have nothing on the books one way or the other.

    SB369 would impose the $5 tax on anyone who pays for or collects money for services of a prostitute. The money would help pay for a state ombudsman for sex workers who would work in the state Department of Employment, Training and Rehabilitation. One of the ombudsman's main tasks would be to help sex workers find other types of employment.

    "There's a need for assistance for sex workers here," Coffin said. "So when you take a look at the need and the fact that it can be fulfilled with this tax, that's a good thing -- especially if it's a tax that the industry is willing to support."

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    Ashley wrote on July 04, 2009 03:32 PM: WOW! seriously as a state we already legalized prostitution. If we tax it we can bring in money to help your children have a desk to sit in at school. We can better our community with this money. Gambling, drinking and other such "sinful" acts are okay but to accept the fact that prostitution is LEGAL here oh no that's scary! Grow up, if we had passed this bill we could have allowed for those who work in this industry to form a union, get health care, give them Opportunities to find other jobs, give them a step up in life. No one thinks that maybe these women have suffered and only do this out of desperation. I don't care if we get money from alcohol, gaming,cigarettes, or prostitution, they're all sinful and if you're so opposed to it stop drinking, smoking and gambling before you say no to taxing prostitution as well.


    Lady Perturbed wrote on March 25, 2009 12:48 PM: Count Coffin thinks he can suck blood out of illegal activity? WOW, he must be a dead man walking. Nothing but ash upstairs in his belfry. The slogan for his re-election will be "A coffin for Coffin."
    If exploited women are in such need of social service because of the work they do, why not delegalize prostitution so they won't be subjected to the horrific task of bending over and kneeling down for the man. Rural myth: Tax revenue from the brothels help support the town. Fact: County budgets to regulate the brothels exceeds the tax revenue from them.
    You wait, the ones being imposed the tax will most assuredly be the oppressed women. Legalized prostitution is the scourge of Nevada. The rural towns in the ten counties where this business operates legally are not thriving communities. Brothels are a deterent to big business. Attitudes of exploitation infiltrate into the schools and permeate the towns. Been there, experienced it, never want to go through that hell again.


    Rasputin wrote on March 25, 2009 08:59 AM: Wow. The mental acuity of our governor seems to know no depths:

    The governor, who has steadfastly opposed higher taxes unless there is public support, wouldn't sign the bill if it reached his desk, spokesman Dan Burns said.

    Asked to comment, Gibbons said, "I'm not a supporter of legalizing prostitution in Nevada. So by taxing it, there's a recognition of the legality of it. And that's all I want to say."

    Um, Jimbo? It's fine to not support legalizing it state-wide (even though that would be the intelligent, fiscally responsible thing to do, you twit), but prostitution IS legal in Nevada, as stated in "Ten other counties authorize prostitution by local ordinance".

    Good lord, is there any topic that Jimbo can discuss that WON'T make him look like a complete boob?


    Yeah, it scares me I feel this way wrote on March 25, 2009 08:59 AM: The legislature is a clown show.

    The more these legislators reveal about their visions for running Nevada, the more they remind me of "The Wizard of Oz" behind the curtain at the end of the movie.

    The sad thing is...the majority of Nevadans in their districts voted these clowns in.

    Just can't wait Rory Reid to be elected Governor...then and only then will I feel like I will be able to experience Louisiana Boss politics, in Nevada, of all places.


    Bad wrote on March 25, 2009 07:05 AM: More oppression.

    More loss of Freedoms.

    Abuse

    Time to sell out.

    Unfriendly State.

    ANOTHER bad ideal..


    Kent L wrote on March 25, 2009 06:43 AM: "Coffin's plan would apply to illegal and legal prostitution, although it wasn't immediately clear how the illegal activity would be tracked for tax purposes."

    Only a buffoon could believe the illegal prostitutes would turn in the tax money. Sure, just like the illegal drug dealers turn in the sales tax.


    Confused wrote on March 25, 2009 06:09 AM: If prostitutes not employed by legal brothels will be directed to begin collecting tax revenue for the government then it would seem that they will have some status as providers of a legitimate service. Accordingly they would need to file some sort of tax return as a for profit business - perhaps as a sole proprietor, partnership, LLC or what have you. As any other business, they should be entitled to normal deductions. I'm wondering: what will be their basis for inventory depreciation?


    wade wrote on March 25, 2009 05:53 AM: Only a Liberal Democrat, who has a mental disorder, would suggest this tax.


    Coffin the Buffoon wrote on March 25, 2009 05:44 AM: "Coffin's plan would apply to illegal and legal prostitution, although it wasn't immediately clear how the illegal activity would be tracked for tax purposes."

    Yup, I'm sure the illegal prostitutes would pony up the tax money just like the illegal drug dealers pony up the sales tax.