FEDERAL HEIGHTS — Two of this small city’s key entertainment venues — a strip club and family-friendly Water World — are worried that a new entertainment tax will cut into their business.
Voters in Federal Heights last week approved tacking on a 4 percent tax on any business and organization that charges a cover or admission fee for entertainment.
Churches and schools will be exempt.
The tax will help the struggling community raise about $500,000 annually at a time when reserves are being used to cover the cost of providing services.
“Everyone at every level of government is looking at keeping operations going, and this kind of tax, to us, seemed like the fairest tax of all,” said City Manager Dave Blanchard.
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There is no doubt the tax will hurt the Platinum 84 Gentleman’s Club, said entertainment director Bob Nelson. The establishment is already dealing with alcohol prices that go up at least twice a year.

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