WGAE Calls on Governor Hochul to Enact Law to End Unfair Tax on Comedy Clubs in New York

The Writers Guild of America East (WGAE) urge Governor Kathy Hochul to sign Senator Kristen Gonzalez and Assemblymember Keith Powers’ bill to amend NY Tax Code to put comedy clubs on equal footing with other live performance venues. 

NEW YORK, NY (November 13, 2026)— Acclaimed comedian Jim Gaffigan joined New York State Senator Kristen Gonzalez (SD-59), Assemblymember Keith Powers (AD-74), Paul Italia, co-owner of The Stand Group, and leaders from New York’s comedy industry today gathered at The Stand Comedy Club during NYC Comedy Week to celebrate the New York State Legislature’s passage of S.9407/A.10429, landmark legislation that would put comedy clubs on equal footing with theaters, opera houses, and music venues under New York’s sales tax exemption for live performance arts.

The legislation clarifies a decades-old statute that left comedy clubs roasted by the New York tax code by improperly subjecting comedy shows to a sales tax on admission despite exempting other forms of live entertainment. After passing both chambers of the legislature unanimously, the bill now awaits Governor Kathy Hochul’s signature.

“New York City is an artistic community, and I think it’s very important for stand-up comedy to be supported,” said Gaffigan, an eight-time Grammy-nominated comedian, actor, writer, producer, and two-time New York Times bestselling author. “It really comes down to this: comedians need people to be able to afford to go to a show. This unnecessary tax that Broadway shows don’t have to deal with is like a remnant from a previous era. It just has to be corrected.”

New York’s tax code exempts admission charges to certain forms of “live entertainment,” including dramatic, choreographic, and musical performances, from sales tax. The statute’s text predates the growth of live comedy, leaving comedy performances vulnerable to interpretations that exclude comedy from this exemption. The result has been a growing disparity between live comedy and other live-performance arts, placing an inequitable financial burden on independent comedy clubs and imposes a hidden surcharge on one of the most accessible, affordable, and fun nights out in New York City.

“Comedy clubs bring a smile to so many New Yorkers’ faces, but these small businesses are struggling with an unclear message on if they should collect sales tax. New York State does not charge sales tax on live dramatic or musical arts performances like Broadway plays, the ballet, and even EDM DJ sets, but comedy clubs are in a grey area that is subject to interpretation,” said Senator Kristen Gonzalez. “Small comedy clubs that compete with large venues for audiences and talent need clarity in order to survive. My bill, S.9407/A.10429 with Assemblymember Powers, will clarify that comedy counts as live performance and should be exempt from sales tax. I’m proud to pass this through both chambers of the state legislature unanimously, and it’s time for the Governor to sign the bill and keep the laughs coming!”

S.9407, sponsored by Senator Kristen Gonzalez, passed the Senate on June 4, following passage of A.10429, sponsored by Assemblymember Keith Powers, in the Assembly on June 1.

“Comedy clubs keep New Yorkers laughing and should be treated like their counterparts. We hope that Governor Hochul will sign this bill and give comedy clubs the break they need to keep comedy accessible and affordable for all New Yorkers,” said Assemblymember Keith Powers.

“We’ve been saying for years that taxing comedy while exempting other live performances was a real joke — and not the good kind,” said Paul Italia, Co-Founder of The Stand Group. “This would be a win for every club and live performance venue hosting comedy, every comic, and every New Yorker who wants a night of laughs to remain affordable. We’re grateful to Senator Gonzalez and Assemblymember Powers for championing this legislation from day one, and to our teams at All Hours/Venue Advisors and State & Broadway, whose government relations and strategic counsel helped get it this far.”

Senator Gonzalez, Assemblymember Powers, The Stand Group, and industry advocates across New York are calling on Governor Hochul to sign S.9407/A.10429 without delay and allow the correction to take effect at the earliest possible sales tax quarter. For venues and audiences, the message is simple: comedy should not be taxed differently from other forms of live performance.

“SAG-AFTRA supports legislation and programming that increases economic and artistic opportunity for New Yorkers across the entertainment spectrum,” said Rebecca Damon, SAG-AFTRA Chief Labor Policy Officer and New York Local Executive Director. “Stand-up comedy and improv shows support the careers of performers and creative professionals. A healthy, and funny ecosystem is part of what makes New York great, both for the people who live here and people who come from all around the world to see the talent that is New York. We encourage Governor Hochul, a long time supporter of the hardworking performers of this state, to sign this bill into law.”

Tom Fontana, President of the Writers Guild of America East, said, “Stand-up comedy is a New York art form, with roots stretching from vaudeville monologists to the first ever comedy club, founded in New York City in the 1960s. Whether they’re just starting out, headlining tours and specials, or writing for late night television and sitcoms, working comedians spend countless nights honing their writing and developing their voices at comedy clubs and venues in our state. We are grateful to Senator Gonzalez and Assemblymember Powers for fighting for comedians and the venues where they perform, and we look forward to Governor Hochul signing this bill. Stand-up comedians are an essential part of our artistic community in New York and directly benefit from state and community support for smaller comedy venues. Thank you for protecting this vital art form and the future of stand-up comedy.”

“As a music venue that also hosts comedy, I was extremely surprised to be audited only for my comedy admissions tickets, when they’re both live entertainment. It seemed clear to me that there was something unfair being directed exclusively to comedy performances,” said Michael Dorf, owner of City Winery. “It was easy for me to sign on to help right this wrong, and I commend our elected officials, and Paul Italia and The Stand Group, for fighting for fairness.”

“New York has protected live performance from unfair taxation for decades — it’s about time comedy got the same treatment. For too long, comedy clubs have faced financial liability and uncertainty that theaters and music venues simply don’t, based on a distinction that never should have existed. S.9407/A.10429 finally closes that gap. On behalf of the thousands of restaurants, bars, and comedy clubs we represent, we urge Governor Hochul to sign this bill without delay,” said Andrew Rigie, Executive Director, NYC Hospitality Alliance.

The push comes as New York’s hospitality businesses face mounting financial pressure. A new NYC Hospitality Alliance survey of 275 restaurants, bars and nightlife venues found that half are breaking even or losing money, 61% have raised or are considering raising prices, and 57% have cut or are considering cutting staff hours. Labor costs, inflation, insurance and rent topped operators’ concerns. For independent comedy clubs, which operate on similar margins, ending an outdated sales tax on admissions is a direct, low-cost way for the state to give working venues and their audiences relief.

“As a comedian working in New York, I know that comedy clubs are where we learn our craft. We need stages and we need access, because the club is where we test and sharpen our material night after night. Talent can only grow if there are enough stages to grow on, and ending this unfair tax helps keep those stages open,” said Sienna Hubert-Ross, comedian, (@siennahubertross).

“As the former Director of the NYC Mayor’s Office of Nightlife and founder of All Hours Advisory, which helped bring this bill to Albany with Lawrence Scherer of State & Broadway, I’m grateful to see unanimous agreement from State lawmakers that excluding comedy from the existing sales tax exemption for live entertainment was no laughing matter. This legislation will help comedy clubs throughout New York State save precious dollars, keep ticket prices low, and keep comedy accessible and affordable seven days a week,” said Ariel Palitz, founder, All Hours Advisory.

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