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

California, Florida Reps File Latest Bill to Repeal Section 230

Two members of Congress on Thursday introduced new legislation to repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Svakom Introduces Custom Engraving for 'Klitty'

Svakom has introduced its new customizable engraving service for its Klitty vibrator.

Orion Expands 'NEK' Line

Orion Wholesale has expanded its NEK line with a new top and shorts.

Second Bill Proposed to Shield US Sites From 'Foreign Censorship'

For the second time in recent weeks, a Republican congressman has introduced legislation to bar U.S. courts from helping to enforce foreign laws restricting speech that would domestically be protected under the First Amendment, potentially including foreign age verification laws.

XR Brands Expands 'Creature Cuties' Collection

XR Brands has added five new devices to its Creature Cuties line.

LELO Debuts 'F2S Double Sonic' Stroker

LELO has introduced its new F2S Double Sonic stroker.

Andy Eustace Joins Full Circle Sales Team

Andy Eustace has joined the sales team at Full Circle.

Biird Launches Partner Appreciation Campaign

Biird has launched a campaign to provide gifts to staff members of its retail partners across Europe and North America throughout September.

Xgen Names Blanca Estrada-Gonzalez as Latin America Account Representative

Xgen Products has named Blanca Estrada-Gonzalez as its new Latin America account representative.

Male Power Expands 'So Comfy' Collection

Male Power has expanded its So Comfy collection of men's underwear.

Show More