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 © 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

Adam & Eve, Lovehoney Group Partner for Custom Products

Adam & Eve and Lovehoney Group have partnered to introduce two custom editions of We-Vibe vibrators and an advent calendar sex kit.

Lovely Planet, Dorcel Expand Partnership

Lovely Planet, longtime manufacturer and distributor of the Dorcel Toys line, has expanded its partnership with the company to include all Dorcel physical pleasure products.

Arcwave Debuts 'Air' Male Stroker

Arcwave has introduced Air, the newest stroker from its Pleasure Air collection.

Sportsheets Introduces 11-Piece 'Amethyst' Collection From 'Sex & Mischief' Line

Sportsheets is accepting pre-orders for its new Amethyst collection of pleasure accessories from its Sex & Mischief line.

Haute Sugar to Make Industry Debut at XBIZ Expo

Haute Sugar, a new lifestyle brand that blends intimate wellness with fashion-inspired design, will make its industry debut at XBIZ Expo in Los Angeles this January.

Ofcom Sets Timeline for Enforcing 'Extreme' Content Rules

U.K. media regulator Ofcom plans to begin enforcing new laws criminalizing certain “extreme” adult content online, but will first hold a consultation in early 2027 before providing updated guidance for sites and platforms.

Casey Murphy to Host Free Webinar for Indie Product Manufacturers

Industry marketing strategist and certified sex educator Casey Murphy is hosting a free live webinar for independent sexual wellness product manufacturers at 1 p.m. MT today.

Orion Debuts New Thrusting Bullet Vibe From 'Javida' Line

Orion Wholesale has introduced a thrusting bullet vibrator from its Javida collection.

Besharam CEO Raj Armani Featured in Cosmopolitan India Magazine Brand Showcase

Raj Armani, co-founder and CEO of Indian pleasure brand Besharam, was recently featured in a full-page brand showcase advertorial in Cosmopolitan India Magazine.

Aneros Rolls Out Resource Hub for Retailers, Industry Partners

Aneros has launched its new Aneros Media Website, a digital platform to centralize the company's educational resources, product training, point-of-sale materials, and marketing assets for its retailers, distributors, and industry partners.

Show More