Texas Holding $11.2 Million in Strip Club Fees

AUSTIN, Texas — The state Comptroller's Office is holding $11.2 million in fees collected from strip club patrons pending the action of an appeals court.

A $5 fee for strip club patrons was passed into law in 2007, with the money collected to fund sexual assault services in 54 Texas counties and health insurance programs. Last year, a judge struck down the law, saying that topless dancing was protected as free speech and that the state couldn't show a link between strip clubs and inadequate health insurance. The state has appealed, and the appeals court has not yet ruled.

Though the Texas Comptroller's Office continues to collect the fee, only some topless clubs are paying it. Some clubs have argued that collecting the money while the bill is under consideration in court is unfair and affects their cash flow as the economy slows. The $11.2 million collected is lower than the $40 million that legislative analysts projected in the law's first year.

Rep. Ellen Cohen, who authored the original 2007 bill, is pushing a new version this year, which drops the charge to $3 and sends all proceeds to sexual assault programs. Lawyers for the clubs say they'll take it to court if it passes.

"We will continue to fight until they stop filing unconstitutional legislation," said Stewart Whitehead, an attorney for the Texas Entertainment Association, which represents topless clubs in Texas. "These changes don't get them around the fact that they are taxing constitutionally protected speech."

R.J. DeSilva, a spokesman for Texas Comptroller Susan Combs, said if the strip club fee is upheld in the courts, businesses that do not collect the fee will face financial penalties. If the fee is overturned, he said, all collected money will be returned to the clubs.

Related:  

Copyright © 2025 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

b-Vibe to Host 'Pottery & Sip' Event at XBIZ Expo

B-Vibe will host a “Mold Your Fantasy: A Pottery & Sip Experience” in partnership with Pot Studio LA during XBIZ Expo 2026.

FTC Weighs Reboot of 'Click to Cancel' Rulemaking Process

The Federal Trade Commission has invited public comments on a petition to renew trade regulation rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

LELO Toys Featured on Netflix's 'Emily in Paris'

LELO's Sona 2 Cruise and Soraya Wave appear in episode seven of the latest season of Netflix's "Emily in Paris."

New Federal Bills Aim to Repeal Section 230

Members of Congress this week introduced two bills calling for the repeal of Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Ball & Chain Debuts New 'Sex Dice' Game

Ball & Chain has introduced its Really Big Sex Position Dice game.

Wicked Sensual Care Debuts New Lube, Kits

Wicked Sensual Care (WSC) has introduced its first aloe-based lubricant and two new Adventure kits.

Sportsheets Expands 'Edge' Collection of Bondage Accessories

Sportsheets has introduced 15 new products from its Expand collection of bondage accessories.

Full Circle Debuts 'Royal Honeys' Love Torso Line

Full Circle has introduced its Royal Honeys collection of love torsos.

Orion Debuts 'Dual Vibrator' From Sweet Smile Line

Orion Wholesale has introduced the Dual Vibrator from its Sweet Smile line.

Creative Conceptions Debuts 'Sei Mio 2.0' Line

Creative Conceptions has introduced the new Sei Mio 2.0 line of pleasure products.

Show More