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

AV Bulletin: Midyear Roundup

Since the U.S. Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. Meanwhile, lawsuits resulting from AV laws have begun to play out in the courts. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Williams Trading Names Lindy Court Sales Representative

Williams Trading has appointed Lindy Court as its new sales representative.

Full Circle Expands 'Be Savage' Line

Full Circle Distribution has introduced 30 new styles from its Be Savage line of lingerie.

Sportsheets to Debut 'Signature' Collection at ANME

Sportsheets will introduce its new Signature collection at the ANME trade show in Burbank next month.

JO Debuts 'Bake Shoppe' Lube Collection

JO has introduced its Bake Shoppe Collection of flavored lubricants.

Dollmora Wellness Now Offering OEJ's Cristal, Zodiac Collections

Dollmora Wellness has partnered with Our Erotic Journey (OEJ), adding the Zodiac and Cristal Collections to its curated catalog of pleasure products.

Aneros Debuts 'Soaker' Cleaning Accessory

Aneros has introduced its new Soaker accessory for cleaning prostate massagers.

Lovense Launches 'Control Me' Livestream Feature

Lovense has officially launched its new Control Me feature for livestreams.

Judge Dismisses Last NCOSE-Backed Suit Over Kansas AV Law

A federal judge on Monday dismissed a lawsuit alleging that adult site SuperPorn violated Kansas’ age verification law, citing lack of jurisdiction after similarly dismissing two related cases earlier this year.

Wicked Sensual Care Debuts 'Natural' Lube From 'Simply' Collection

Wicked Sensual Care (WSC) has introduced the new Natural lubricant from its Simply collection.

Show More