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

Lovense, Tiny Secret Games Launch 'Snapshot' In-Game Store

Lovense and adult game studio Tiny Secret Games have launched a Lovense store inside the “Snapshot” virtual world.

Lightning Star World Debuts Casey Kisses Stroker, Dildo

Pleasure brand Lightning Star World has introduced its new Casey Kisses Collection.

Dr. Tush Signs Canadian Distro Deal With EP Products

Dr. Tush has signed a deal with Canadian distributor EP Products.

2026 XBIZ Amsterdam Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Amsterdam, set to take place Sept. 10-13 at Passenger Terminal Amsterdam.

Ukrainian Legislators Revive Porn Decriminalization Push

The Verkhovna Rada, Ukraine’s parliament, is once again considering a bill that would decriminalize the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Electric Novelties Names Rob Phaneuf VP of Sales and Marketing

Electric Novelties has appointed adult industry veteran Rob Phaneuf vice president of sales and marketing, effective immediately.

Ofcom Fines XGroovy $986,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 700,000 pounds (about $986,000) against adult website XGroovy for failing to comply with provisions of the Online Safety Act.

Beisar Introduces 'Black-White Faunus' Thrusting Vibrator

Beisar has debuted its new Black-White Faunus thrusting fantasy vibrator.

Eldorado Introduces 'Dr. Tush' Anal Plug Sets

Eldorado Trading has debuted the new Dr. Tush line of anal plug sets.

Pjur Introduces 'Intimate Flavors' Oral Gel From 'Nature' Line

Pjur has debuted its Intimate Flavors Oral Delight Gel from its Nature line.

Show More