Texas Lawmakers Introduce Bills to Tax Adult Entertainment

AUSTIN, Texas — Two state lawmakers have introduced separate pieces of legislation that would tax adult-oriented businesses in order to raise funds and awareness for victims of sex crimes.

A bill drafted by Rep. Ellen Cohen would add a $5 cover charge to all strip clubs throughout the state. If passed, Cohen’s bill would raise approximately $40 million in revenue per year for the state. However, the state Legislature would have the right to spend as it sees fit any amount raised in excess of $12 million.

A similar bill proposed by Sen. Royce West would put the onus on the businesses. His bill would call for a $5,000 annual registration fee for any adult-oriented business.

Both bills call for the projected revenue streams to go toward state-sponsored anti-sex-crime initiatives.

According to adult entertainment industry leaders in Texas, attempts by lawmakers to link sex crimes with sexually oriented businesses is unfair.

“To say there’s a link between sexual assault and gentlemen's clubs is ludicrous,” said Angelina Spencer, the executive director for the Association of Club Executives. “These taxes are a ruse to burden the club owner because somebody finds the business morally reprehensible. There is no evidence that links an increase in sexual assaults among women to adult entertainment clubs.”

Cohen said she wasn’t certain that patrons of adult entertainment were responsible for committing sex crimes throughout the state.

“But I do know that money is being made as a result of women being objectified,” she said. “When you think about raising funds from sexually oriented businesses for education, it's a knee-jerk reaction. When you talk about providing services for sexual assault programs, it seems like an apples to apples thing.”

West said the opening of an adult mega-store near his office inspired his bill. His bill also would require adult businesses to notify local officials of their intent to open a store or club at least 60 days prior to arriving in a community.

West said he also was considering an additional sales tax to items sold or rented at adult video stores.

“The fact is, we need to find additional sources of revenue, and this is one of several places we can look,” he said. “These people must have some disposable income, so they shouldn't mind.”

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

FSC Talks Age Verification on Capitol Hill

The Free Speech Coalition (FSC) has published a blog post detailing the organization's talks on age verification on Capitol Hill in Washington.

FTC Warns PayPal, Stripe, Visa, Mastercard Against Debanking

Federal Trade Commission Chairman Andrew Ferguson sent letters on Thursday to the CEOs of PayPal, Stripe, Visa and Mastercard, warning them against debanking practices — including denying customers access to services based on lawful business activities perceived as high-risk.

EU Cites 4 Adult Sites for AV Breaches

The European Commission has preliminarily found PornHub, Stripchat, XNXX and XVideos to be in breach of Digital Services Act provisions intended to shield minors from adult content.

Brazil Sets Enforcement Timeline for New AV Rules

Brazil’s National Data Protection Authority (ANPD) on Friday published a timeline outlining planned steps for monitoring and enforcing age verification under the country’s Digital Statute for Children and Adolescents (Digital ECA), which took effect Tuesday.

Utah Governor Signs 'Porn Tax' and VPN Rule Into Law

Governor Spencer Cox on Friday signed into law a bill to tax adult websites and make them liable if minors circumvent geolocation.

German Court: Regulator Can't Block Creator's IG Account, Only Posts

A German court has ruled that while a regional media regulatory agency may block specific Instagram posts that include material deemed harmful to minors, it cannot ban an entire Instagram account due to such a post.

Brazil Lays Out Preliminary Guidelines for New AV Requirements

President Luiz Inácio Lula da Silva on Wednesday signed a decree establishing guidelines for new regulations requiring adult websites to age-verify users located in Brazil.

Senate Committee Debates Section 230 Reform

The U.S. Senate Committee on Commerce, Science, and Transportation held a hearing Wednesday on potential changes to Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Show More