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: New AV Requirements Set to Take Effect March 17

President Luiz Inácio Lula da Silva this week gave final approval to new regulations requiring adult websites to age-verify users located in Brazil starting March 17.

Orion Debuts 'Duo Vibrator' From 'Couples Choice' Line

Orion Wholesale has introduced the Duo Vibrator from its Couples Choice line.

Kheper Releases New 'Reverse Adult Charades' Party Game

Kheper Games has released the new Reverse Adult Charades party game.

Nalpac/Entrenue, Jen Jenivive Sign US Distro Deal

Nalpac/Entrenue and U.K.-based author Jen Jenivive have signed an exclusive U.S. distribution deal for Jenivive’s books.

Male Power Debuts 'Open Ended' Collection

Male Power has introduced its new Open Ended collection of men's underwear.

Utah 'Porn Tax' Bill With VPN Provisions Passes State Senate

The Utah state Senate has passed a bill that would impose a 2% tax on the revenues of adult websites doing business in that state, and make sites liable if Utah minors use VPNs to circumvent geolocation.

Magic Silk Debuts 'Euro Lux' Collection

Magic Silk has introduced its new Euro Lux line of lingerie.

Fast-Tracked Arizona Bill Includes Consent 'Catch-22' for Adult Sites

A bill advancing rapidly through the Arizona state legislature would impose new requirements for adult content uploaded online, including seemingly contradictory provisions that could effectively make it impossible for adult sites to operate in the state.

XR Brands Debuts Stroker Collection, Love Doll

XR Brands has introduced its new Hentai Fantasies stroker collection, as well as the K-Pop Idols love doll.

Corey Silverstein to Host Webinar on North Carolina Age Verification Thursday

Adult industry attorney Corey D. Silverstein has announced his latest "Legal Impact" webinar, titled "North Carolina AV Law — Content Creation Issues," to livestream Thursday at 4 p.m. (EST).

Show More