Home > News > Texas Strip Club Tax Initiative Upheld • Bookmark   • Register
Search Options
Join XBIZ.net

NEWS STORY

Texas Strip Club Tax Initiative Upheld

XBIZ POLL
Are you shooting for mobile / small screen applications?
Yes
No
We don't shoot content
 
Wednesday, Dec 19, 2007    Text size: 
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.

   
Follow XBIZ on Twitter
Share this article:
del.icio.us technorati fark
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 !

OPINIONS & VIEWS

The Diminishing Fruit of Labor

I hate coming up with titles for columns that reek of despondency and despair, and even more with describing them alliteratively, but in this case once the thing popped into my head and the idea of the... More »

Adult Content Trends

Recently, XBIZ World Magazine asked several industry players "What is the most significant trend in adult content today?" Here's what they had to say: The most significant trend in adult content... More »

Porn and Pedophilia: Cause and Effect?

Recently, Morality in Media President Robert Peters called into question the efficacy and integrity of the Association of Sites Advocating Child Protection (ASACP), a non-profit agency primarily funded... More »
XBIZ NEWSLETTERS
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.







POPULAR PRODUCTS & SERVICES
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.
XBIZ Research
XBIZ World™, the industry's leading technology journal, provides in-depth coverage of company news, market trends, growth sectors, and international news in the online, mobile and ancillary sectors - get it today!

UPCOMING EVENTS

AWM Open

Jul 06 - Jul 08
Cypres

ANME Founders Show

Jul 10 - Jul 12
Woodland Hills, California

Internext Summer '09

Aug 07 - Aug 09
Hollywood, Florida

2008 Gentlemen's Club Owners Expo

Aug 23 - Aug 26
Las Vegas, Nevada
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!