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

Honey Play Box Debuts 'Kai Pro' Stroker at EroSpain

Honey Play Box introduced the new Kai Pro stroker at the 2026 EroSpain trade show in Barcelona.

Adam & Eve Reveals Results of 'Masturbation' Survey

Adam & Eve has released the results of a survey asking respondents about their level of satisfaction from masturbating.

Lovense Reveals Results of 'Prostate Pleasure' Survey

Lovense has published the results of a survey on men’s reluctance to explore prostate pleasure.

Kiiroo Debuts 'Keon 2' Stroker

Kiiroo has unveiled its new Keon 2 Stroker.

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

WSST Partners With OEJ to Launch 'Cristal Collection'

We Sell Sex Toys (WSST) has partnered with Our Erotic Journey (OEJ), adding the Cristal Collection to its curated catalog of pleasure products.

E-Stim Introduces 'The Slider' System

E-Stim Systems has introduced The Slider insertable electrode system.

Orion Expands 'Bad Kitty' Line

Orion Wholesale has added two new chain collars to its Bad Kitty collection of fetish accessories.

Eldorado Releases 2026 Lingerie Catalog

Eldorado Trading Co. has released its 2026 Lingerie Catalog.

Pipedream Names Sunny Winkleman Account Executive

Pipedream Products has appointed Sunny Winkleman as its new account executive.

Show More