A New York State Administrative Law Judge has held that an adult entertainment club’s sales of scrip – which could be used to tip dancers and other club employees – were taxable admission charges for sales tax purposes, and not entitled to the exclusion for “live dramatic, choreographic or musical performances.” Matter of HDV Manhattan, LLC. et al., DTA Nos. 824229, 824231, 824232, 824233 & 824234 (N.Y.S. Div. of Tax. App., Jan. 30, 2014). The ALJ decided that the performances, while involving “ancillary” elements of dance, were primarily the creation of “sexual fantasy,” which was the ultimate service sold. The ALJ also held that the First Amendment issues raised by the club, which claimed the Department was making an unconstitutional content-based determination regarding taxability, were moot.