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

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Nalpac Releases 2026 Winter Catalog

Nalpac has released its 84-page 2026 winter catalog.

2027 XBIZ Exec Awards Nominees Announced for Pleasure Product and Retail Edition

XBIZ is pleased to announce the exec nominees for the pleasure product and retail industry edition of the 2027 XBIZ Awards, presented by Svakom and sister brand Kaotik Labs, set to take place on Saturday, Jan. 9, in conjunction with the XBIZ 2027 event series.

Arcom Issues Warnings to 3 Adult Sites Over Age Verification

French media regulator Arcom has issued formal notices to the operators of three adult websites that the agency says have failed to implement age verification as required under French law.

Full Circle Expands 'Pleasure Company' Vibe Collection

Full Circle has added six new vibrators to its Pleasure Company line.

Fleshlight, Penthouse Partner for New 'Pet' Collection

Fleshlight has partnered with Penthouse to release a collection of strokers based on the anatomy of 12 Penthouse Pets.

Svakom, Kaotik Labs Return as Presenting Sponsor of XBIZ Awards, Pleasure and Retail Edition

The pleasure industry’s biggest night is set to shine even brighter as Svakom and sister brand Kaotik Labs return as presenting sponsors of the 2027 XBIZ Awards, Pleasure & Retail Edition, taking place at Avalon Hollywood on Jan. 9.

Electric Novelties Debuts 20 New 'Blue Line' Chastity Styles

Electric Novelties has introduced 20 new Blue Line chastity styles.

Sportsheets Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Sportsheets in a case against a copycat website using an infringing domain.

Sex Expo 2027 Unveils Guest Speaker Lineup

The Sex Expo 2027 schedule is now live, featuring two days of educational sessions, interactive workshops and expert-led conversations at the JW Marriott L.A. LIVE, Jan. 7-10.

Show More