Strip clubs thrive at three of its busiest intersections, and patrons from as far as Gary flock to its local reggae and R&B nightspots.
For suburban party people, Harvey has become the place to be.
Harvey officials are poised to capitalize on that popularity by turning it into a revenue source.
The City Council recently approved the city’s first entertainment tax, which is expected to generate $100,000 annually.
Starting in November, all Harvey entertainment-related businesses must pay the flat $1 tax on admission fees to exposition shows, bowling alleys, nightclubs, sporting events and pool halls. Not-for-profit agencies and churches are exempt from paying the levy.
Because Harvey has no pool hall, athletic stadium, bowling alley or movie theater, the tax will target about 15 nightclubs, bars and other night spots that collect cover charges from patrons, officials said.
City officials say they have heard little reaction from club owners. Still, some club managers and patrons contend state and county regulators already collect enough taxes on alcohol and permits. Plus, patrons resent having the tax passed along to them.
But another group has entered the debate–local church leaders who fear Harvey’s shoestring budget will become reliant on watching G-strings and imbibing the wrong kind of spirits.
“When you try to build revenue off of people’s vices, you manipulate a weakness and an area where that person is struggling,” said Rev. Sidney Mauldin, senior pastor for Bethel Reform Church.
He does believe the businesses should be held accountable for what it costs the city in terms of the “cleanup and unruliness” they often cause.
“Something needs to be done about those kinds of businesses, but a tax should not be our goal as a community,” Mauldin said.
City officials say adult clubs and dance halls have 1st Amendment protection. So, if you can’t beat ’em, tax ’em, Harvey Mayor Nickolas Graves said.
“You can’t legislate morality,” said Graves, who noted the city has made futile attempts to restrict the strip clubs. “And because this is still a free society, and they are going to be there, the citizens should gain something from it.”
For Harvey, which has struggled to attract new development and businesses, the tax is limited and will be collected on places mostly frequented by those living outside the city.
In bedroom communities targeted by residential and commercial development, variations of an entertainment tax are increasingly used to offset the costs of police and fire services for newly constructed theaters, virtual arcades and concert venues. Chicago collects a 7 percent tax on similar businesses and nightspots.
Indeed, most suburbs do everything in their power to keep adult clubs and nightspots out. South suburban Calumet City wiped out its notorious “sin strip” of adult clubs and taverns. And a firestorm of complaints led owners of an adult club near Mundelein in Lake County to shut down, as well as prompted several suburban communities to approve ordinances regulating what goes on inside the establishments.
Bar and club managers said the Harvey tax likely will be passed on to patrons.
“Why should Harvey tax the little businesses in town?” asked Daniel Merriweather, 39, of Lynwood, who frequents Gloria’s Lounge near 154th Street and Broadway. “People are spending the money and paying high enough prices on the drinks.”
Harvey attorney David Dillner said the new tax is a bit higher than the typical 2 to 5 percent, or maybe 25-cent entertainment tax implemented in other communities.
“Harvey doesn’t have movie theaters, bowling alleys and other entertainment venues,” said Dillner, who drafted the tax ordinance. “[The tax] was designed to recoup revenue for some of the services that the city has to provide for these businesses, which draw a pretty big crowd on weekends.”
Harvey Police Chief Phillip Hardiman said the tax will help pay for special patrols.
“We’re around [those businesses] all the time, handling traffic jams, illegal parking and small incidents at the clubs,” Hardiman said.
