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

Orion Debuts 'Rabbit With Thrust and G-Spot Stimulation' Vibe From Sweet Smile Line

Orion Wholesale has introduced the Rabbit Vibrator with Thrust Function and G-Spot Stimulation from its Sweet Smile line.

Glittering 2026 XBIZ Honors Celebrates Pleasure Industry

The 2026 XBIZ Honors, presented by Svakom and Kaotik Labs, lit up Avalon Hollywood on Sunday night, turning the iconic venue into a dazzling celebration of pleasure-industry excellence.

Oh Collective Debuts 'Strawberry Matcha Date Night Chocolate' Gift Set

Oh Collective has introduced its new Strawberry Matcha Date Night Chocolate gift set.

XBIZ Expo Wraps With Final Day of Networking and Sales

The 2026 edition of XBIZ Expo wrapped up on Sunday afternoon on the mezzanine level of the Loews Hollywood Hotel, where prominent buyers and sellers celebrated a raft of new deals and promising connections.

XR Brands Taps Josh Ortiz for Director of Education and Outreach

XR Brands has promoted sex educator Josh Ortiz to director of education and outreach.

XBIZ Expo Day 2: Education, Dialogue, Community

Day 2 of XBIZ Expo continued the event’s focus on education, collaboration and industry insights, with a packed schedule that balanced business-driven discussions with innumerable opportunities to network.

Pjur Rolls Out 2026 Marketing Campaign

Pjur has launched its multi-phase, integrated marketing campaign for 2026.

FirmTech Expands Global Distribution

FirmTech has expanded its global distribution across the U.K., Europe, and Asia.

XBIZ Expo Kicks Off With Buzz-Filled Show Floor

The 2026 edition of XBIZ Expo officially kicked off Friday morning on the mezzanine level of the Loews Hollywood Hotel, where prominent buyers and sellers mingled in the hopes of closing deals.

Paradise Debuts 'Illumination' Line

Paradise Pleasure Products has introduced its new Illumination collection of pleasure products.

Show More