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

Woodhull Survey Reveals Concern Among Sex Educators Over AV Laws' Impact on Access

A national survey of sex educators by the Woodhull Freedom Foundation found that a majority of sex educators and sexual health professionals are concerned that age verification (AV) laws will negatively impact access to information and resources.

Metro Distributors Taps Nancy Cosimini for Sales Account Manager

Metro Distributors has hired industry veteran Nancy Cosimini as its newest sales account manager.

Clips4Sale Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of content platform Clips4Sale in a case against a website using a similar domain to impersonate the site.

OTouch Debuts 'YU-BattleHelm' Vibe Set

OTouch has introduced its YU-BattleHelm couples vibrator set.

Orion Debuts 'G-Spot Vibrator With Rotating Tickler' From Sweet Smile Line

Orion Wholesale has introduced the G-Spot Vibrator With Rotating Tickler from its Sweet Smile line.

CalExotics Expands 'Connect' Line

CalExotics has expanded its app-controlled Connect line with three new products, Explorer, Warming Wand, and Advanced Probe.

FSC Talks Age Verification on Capitol Hill

The Free Speech Coalition (FSC) has published a blog post detailing the organization's talks on age verification on Capitol Hill in Washington.

FTC Warns PayPal, Stripe, Visa, Mastercard Against Debanking

Federal Trade Commission Chairman Andrew Ferguson sent letters on Thursday to the CEOs of PayPal, Stripe, Visa and Mastercard, warning them against debanking practices — including denying customers access to services based on lawful business activities perceived as high-risk.

JO Debuts 'Vitalize' Skincare Line

JO has introduced its new Vitalize collection of skincare products.

Show More