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 © 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

Motorbunny 'Buck' Appears in 3D Adult Video Game 'LoveCraft'

The 3D adult video game LoveCraft, in partnership with Motorbunny, has created a virtual version of its Motorbunny Buck vibrating saddle for use in the Steam platform game.

Pornhub Unblocks Australia Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in Australia will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s Australian age-verification process.

Blush Debuts 'Amelia' Dual-Sided Wand

Blush has introduced Amelia, its new dual-sided wand vibrator, offering both G-spot and clitoral stimulation.

CalExotics Expands 'Cheap Thrills' Line of Male Masturbators

CalExotics has added four new pleasure products to its Cheap Thrills line of male masturbators.

California Governor Signs Bill Limiting CIPA Claims

Governor Gavin Newsom has signed into law a bill to narrow the scope of the California Invasion of Privacy Act (CIPA), to prevent abusive lawsuits targeting online businesses, including adult websites.

XBIZ Retreat Canada to Debut in Toronto Aug. 16-20

XBIZ Retreat is heading north for the debut of its Canadian edition, bringing its signature hosted-buyer experience to Toronto Aug. 16-20.

SWPA to Host Webinar on Landing Media Coverage for Sexual Wellness Brands

The Sexual Wellness Professional Alliance (SWPA), a division of the Free Speech Coalition, will host a webinar on Wednesday, Oct. 7, offering strategies for sexual wellness brands to attract media coverage.

California Enacts Stricter UGC Rules for Adult Sites

Governor Gavin Newsom has signed into law a bill to impose tighter compliance standards for user-generated content (UGC) on adult websites accessible in California.

Minister: UK Aims to Begin Enforcing 'Choking' Ban Before Year's End

The U.K. will soon begin enforcement of a new law criminalizing depictions of “non-fatal strangulation” in adult content, according to a Ministry of Justice official.

Full Circle Expands 'My Buddy' Anal Plug Collection

Full Circle Brands has added three new vibrating anal plugs to its My Buddy line.

Show More