Texas Strip Club Tax Initiative Upheld

AUSTIN — Attempts to block a state-imposed $5 fee on Texas gentlements club admissions — slated to go into effect Jan. 1 — so far have failed.

District Judge Scott Jenkins refused to block the tax from going into effect, paving the way for a lawsuit that seeks to prove the unconstitutionality of the tariff, which plaintiffs contend is discriminatory, suppresses their right to free speech and endangers the survival of many affected businesses.

The tax initiative, previously reported by XBIZ, is intended by officials to raise an estimated $50 million annually, funds that they claim are earmarked to offset rising health care expenses for Texas’ uninsured residents — regardless of their citizenship status — and to finance sexual assault prevention programs.

"It looks like we proceed to trial," said Peter Nolan, a lawyer for the Texas Entertainment Association, representing businesses affected by the tax.

A trial date is expected to be set after Jenkins rules on the plaintiffs’ legal standing and ability to sue the state.

"They are some very worthy causes that are going to be funded," plaintiffs attorney Douglas Becker said. "[But] a worthy cause does not justify a content-based tax."

Texas Attorney General Greg Abbott and state Comptroller Susan Combs submitted a legal brief to the court, stating that the fee "does not prohibit nude dancing, does not dictate where live nude entertainment may be presented, does not require any minimum clothing and does not govern the physical setting for the activity."

Even though the state does not specify how the $5-per-customer fee should be collected, most club owners are expected to collect it as part of a cover charge.

Amarillo club operator Chandra Brown, one of the plaintiffs in the suit, testified how the increased fees, which would have to be passed on to customers, would negatively impact her business by driving patrons away. "They can't afford it," Brown said.

Related:  

Copyright © 2024 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

SWPA to Hold Facebook Live Event Next Month

The Sexual Wellness Professionals Alliance (SWPA) will be holding a Facebook Live event on May 1 at 6 p.m. (PDT).

Judge Acquits Backpage Defendants of Most Charges Before 2nd Retrial

A federal judge acquitted former co-owner of Backpage.com Michael Lacey and two co-defendants on most of the counts remaining from the protracted trial launched against the website operators by the Justice Department in 2018.

Georgia Gov. Brian Kemp Signs Age Verification Bill Into Law

Republican Gov. Brian Kemp signed into law on Tuesday a bill that includes Georgia’s version of the age verification of adult content provisions being sponsored around the country by anti-porn religious conservative activists.

Honey Play Box Signs Canadian Distro Deal With EP Products

Honey Play Box has signed a deal with Canadian distributor EP Products.

Cherie DeVille Discusses Doc Johnson Collabs in Vice TV's 'Sex Before the Internet'

2023 XBIZ Performer of the Year Cherie DeVille is featured on Vice TV’s “Sex Before the Internet,” discussing her Doc Johnson celebrity strokers in the episode “Sex Toy Empire.”

Neon Coyotes Releases 'Day Collection'

Neon Coyotes has debuted its latest drop of BDSM wear, the Day Collection.

Ashley Manta Appointed Sexual Wellness Curator at Bspoke

2020 XBIZ Sexpert of the Year Ashley Manta has been appointed a curator of sexual wellness brands and events at Bspoke.

Aylo Asks Judge to Trim Sweeping GDP-Related Lawsuit

Aylo asked a California federal judge during a hearing on Monday to drop trafficking claims from a sweeping lawsuit brought by a former GirlsDoPorn model.

Orion Unveils 2 New Ergonomic Dual Vibrators

Orion Wholesale has introduced two new ergonomic dual vibrators from its Sweet Smile line.

California Republicans, Democrats Team Up to Advance Age Verification for Porn

Both Republicans and Democrats in the California Assembly’s Privacy and Consumer Protection Committee voted last week to move forward a version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Show More