Home > News > Rick’s Cabaret to Pay $10M in Texas ‘Pole Tax’ Case • Bookmark   • Newsletters   • Register Search Options


Rick’s Cabaret to Pay $10M in Texas ‘Pole Tax’ Case

Rick’s Cabaret to Pay $10M in Texas ‘Pole Tax’ Case
Get XBIZ News
May 28, 2015 11:33 AM PDT    Text size: 

HOUSTON — Rick’s Cabaret’s parent company announced today it has reached a settlement with the state of Texas over payment of the state’s “pole tax” on adult club customers.

To resolve the issue of taxes owed, the gentlemen’s club chain agreed to pay $10 million in equal monthly installments of $119,000 without interest over the next 84 months. Going forward, it agreed to remit the pole tax, formally called a “patron tax,” on a monthly basis, based on the current rate of $5 per customer.

Eric Langan, RCI Hospitality Holdings Inc. president and CEO, said, “We’re pleased to put another major issue of uncertainty behind us. It will result in a gain and will help us clean up our balance sheet.”

A year ago, a state appeals court ruled that Texas' $5-per-head tax on strip and gentlemen's clubs does not violate free-speech rights.

The 3rd District Court of Appeals originally affirmed a ruling that the tax violated the club owners' First Amendment rights, but it considered the case again after the Texas Supreme Court reversed and called for consideration of the remaining claims under state law.

Rick’s Cabaret stopped remitting the tax after the 3rd District first affirmed a lower court judgment that the tax, which will go to Texas sexual assault prevention programs, was unconstitutional.

Langan said Rick’s Cabaret had expensed but did not pay the tax, since the second quarter of fiscal 2009. As of March, the company’s most recent reporting period, this totaled $17.1 million in current liabilities.

The settlement covers 21 of 23 subsidiaries of the chain. Payments for the two remaining subsidiaries, for which less than $900,000 has been accrued, are currently being negotiated.

With 46 clubs, Rick’s Cabaret’s parent company, RCI Hospitality, is the country’s largest company in adult gentlemen clubs.

Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars and Tootsie’s Cabaret. Its sports bars and restaurants operate under the brand name Bombshells.  

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Cam World: A Good Grind Reaps Riches

For years, webcam modeling was taboo and considered by many as a dirty and raunchy activity. However, in today’s economy, webcam jobs are being accepted more and more by everyone across the globe.... More »

Cam World: Beauty on Point — Models Talk Tradecraft

Cam girls are the girls that are always on point — with the perfect make-up and perfect skin, the shiny hair and long nails. Given their expertise, I asked some of the girls from Studio 20 if they... More »

Cam World: Camming and Toys Go Hand in Hand

There is nothing more satisfying than pleasure, especially if it is sexual. The size or the presentation of the stimulus does not matter if the sensations and tension the body receives transform the way... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.


XBIZ.net Paysite Meetup

May 04 - May 04
Prague, Czech Republic

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!