Texas Strip Club Tax, Declared Unconstitutional, Still Being Collected During Appeal

AUSTIN, Texas — State District Judge Stephen Yelenosky has told attorneys for Texas strip clubs that the state can continue to collect a controversial strip club fee — which was struck down as unconstitutional three weeks ago — while the state appeals the ruling.

Texas Entertainment Association attorney Stewart Whitehead said the state is insisting on collecting fees that it knows are unconstitutional. The Texas Entertainment Association membership includes more than half the topless clubs in Texas.

"It's a grave injustice that the attorney general and the comptroller would use procedural court technicalities to continue to trample on the rights of these business owners," Whitehead said.

The $5 cover fee on strip club patrons was approved by the Texas legislature last year, which earmarked the expected $40 million in annual revenues for sexual assault services and health insurance to the poor.

Club owners sued, and on March 28, state district Judge Scott Jenkins found that the fee was an illegal tax on "expression that, while politically unpopular, is nevertheless protected by the First Amendment." Declaring the law invalid, Judge Jenkins issued an order that included an injunction against collecting the fee.

On April 7, the attorney general's office filed an appeal, which automatically suspended Judge Jenkins' judgment and the injunction. The state comptroller sent out a letter to strip clubs saying that the fee is active, and that the first reports and payments are due Monday. If they aren't sent in, a 5 percent penalty takes effect.

On Thursday, Judge Yelenosky declined to issue an order that would keep the injunction in place during the appeal, effectively continuing collection of the tax.

Texas Entertainment Association attorney Whitehead said that the businesses will continue to fight, and will appeal Thursday's ruling.

Related:  

Copyright © 2025 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

Full Circle Expands 'Dream Doll' Line of Sex Dolls

Full Circle has introduced Dick and Dale from its Dream Doll collection.

Canadian Senator Revives Push for National AV Law

Sen. Julie Miville-Dechêne, whose previous multiple attempts to legislate national age verification requirements all failed, has introduced a new bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

Liberator Inks Distro Deal With Osuga

Liberator has signed a deal with Osuga Toys for North American distribution.

FSC Submits Statement to House Committee in Support of FIRM Act

Free Speech Coalition has announced that it submitted a statement to the House Financial Services Committee in support of the Financial Integrity and Regulation Management (FIRM) Act.The announcement follows:

Trump Tariffs Remain in Effect Pending Appeal of Trade Court Ruling

The U.S. Court of Appeals for the Federal Circuit on Thursday stayed an injunction by the U.S. Court of International Trade, delaying the trade court’s order blocking the Trump administration’s sweeping tariffs, which have significantly impacted the pleasure industry.

Deviate Network Debuts 'Hotwife' Card Game for Couples

The Deviate Network has expanded its erotic card game series with DV8 Dare Intro to Hotwife Erotic Card Game.

Osuga Debuts 'Kiss' Vibrator

Pleasure brand Osuga has introduced its new Kiss vibrator.

Orion Expands Cottelli 'Bondage' Line

Orion Wholesale has added eight new lingerie sets to its Cottelli Bondage collection.

Blush Debuts 'Sugar Crush' Vibe From 'Play With Me' Collection

Blush has introduced the Sugar Crush pocket vibrator from its Play With Me collection.

Show More