Fantasies Are Taxable, Too

ALBANY, N.Y. — New York State’s highest court has upheld the right to charge a sales tax at coin-operated sex peep show booths. The legal dispute stems from the defunct Times Square 1605 Book Center Inc., which contested a tax ruling in 1980 assessing $141,686.11.

The ruling was based on two shows, including one in which nude or partly naked women performed before a private booth. The other, the “fantasy booth,” allowed a patron to converse with a scantily clad woman.

The defendant’s lawyer said he could take the case into federal court. “They’ve never gone after video games. It’s only because of the nature of the business.”