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 © 2025 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

Orion Debuts 5 New Styles From 'Cottelli Party' Line

Orion Wholesale has expanded its Cottelli Party line with five new styles.

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Honey Play Box, Dildos Assorted Ink European Distro Deal

Honey Play Box has signed a deal with Dildos Assorted (DA) for distribution throughout Southern Europe.

Calvista, Lovense Sign Exclusive Australia/New Zealand Distro Deal for 'Spinel'

Calvista has signed an exclusive Australian and New Zealand distribution deal for Lovense's Spinel thrusting and heating dildo.

Blush Introduces 'Riana' Vibe

Blush has debuted the Riana vibrator.

Lovense Debuts 'Spinel' Mini Sex Machine

Lovense has introduced its new app-controlled Spinel mini sex machine.

Strike 3 Rejects Meta 'Personal Use' Defense in AI Suit

Vixen Media Group owner Strike 3 Holdings this week responded to Facebook parent company Meta’s motion to dismiss Strike 3’s suit accusing Meta of pirating VMG content to train its artificial intelligence models.

Pornhub, Stripchat: VLOP Designation Based on Flawed Data

In separate cases, attorneys for Pornhub and Stripchat this week told the EU’s General Court that the European Commission relied on unreliable data when it classified the sites as “very large online platforms” (VLOPs) under the EU’s Digital Services Act, news organization MLex reports.

SVibe Debuts 'Gizi Pro' Vibrator

SVibe has introduced the new Gizi Pro vibrator.

Lovense Launches AI Companion

Lovense has launched its AI Companion.

Show More