After granting Microsoft amnesty on its $1.5 billion Nevada tax dodge, state tax collectors are aggressively targeting Seattle dance clubs and night clubs over an obscure 'opportunity to dance' tax. Auditors search the Internet to find out whether people dance at specific clubs. One clubowner reports an auditor told him: 'You have the opportunity to dance, and we verified it by 8 or 10 different references on Yelp.'
"My auditor came in with an obituary of a girl who committed suicide,"says another club owner. "When I argued that we aren't primarily a dance club -- we have 'No Dancing' signs up everywhere -- she flashed this obit that said the girl liked to dance at [our club].
The Legislature gave up $100 million annually to Microsoft so it can target the city's music scene to try to make up $880,000. The Century Ballroom, a popular dance club, is holding ongoing fundraisers to offset its $250,000 in back taxes. Dancers are effectively funding Microsoft's Nevada tax dodge.