When the iconic 21 Club was zonked for some $72,053.66 in back taxes on audio visual equipment rentals offered to its catering customers, the restaurant argued the transaction qualified as a re-rental and was tax exempt.
After the New York State Tax Appeals Tribunal upheld the assessment, 21 appealed to the Appellate Division, Third Department, which deferred to the tribunal's "expertise" and accepted its "rational" determination that the restaurant's transactions were taxable.
Roses are red, violets are blue ...
Hey 21, your taxes are long due!
To view a copy of the Appellate Division's decision, please use this link: Matter of 21 Club, Inc. v. Tax Appeals Trib. of State of N.Y.