Texas Lawmakers Introduce Bills to Tax Adult Entertainment

AUSTIN, Texas — Two state lawmakers have introduced separate pieces of legislation that would tax adult-oriented businesses in order to raise funds and awareness for victims of sex crimes.

A bill drafted by Rep. Ellen Cohen would add a $5 cover charge to all strip clubs throughout the state. If passed, Cohen’s bill would raise approximately $40 million in revenue per year for the state. However, the state Legislature would have the right to spend as it sees fit any amount raised in excess of $12 million.

A similar bill proposed by Sen. Royce West would put the onus on the businesses. His bill would call for a $5,000 annual registration fee for any adult-oriented business.

Both bills call for the projected revenue streams to go toward state-sponsored anti-sex-crime initiatives.

According to adult entertainment industry leaders in Texas, attempts by lawmakers to link sex crimes with sexually oriented businesses is unfair.

“To say there’s a link between sexual assault and gentlemen's clubs is ludicrous,” said Angelina Spencer, the executive director for the Association of Club Executives. “These taxes are a ruse to burden the club owner because somebody finds the business morally reprehensible. There is no evidence that links an increase in sexual assaults among women to adult entertainment clubs.”

Cohen said she wasn’t certain that patrons of adult entertainment were responsible for committing sex crimes throughout the state.

“But I do know that money is being made as a result of women being objectified,” she said. “When you think about raising funds from sexually oriented businesses for education, it's a knee-jerk reaction. When you talk about providing services for sexual assault programs, it seems like an apples to apples thing.”

West said the opening of an adult mega-store near his office inspired his bill. His bill also would require adult businesses to notify local officials of their intent to open a store or club at least 60 days prior to arriving in a community.

West said he also was considering an additional sales tax to items sold or rented at adult video stores.

“The fact is, we need to find additional sources of revenue, and this is one of several places we can look,” he said. “These people must have some disposable income, so they shouldn't mind.”

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

GirlsDoPorn Owner Michael Pratt Sentenced to 27 Years

Michael Pratt, former owner of the website GirlsDoPorn, has been sentenced to 27 years in federal prison.

Aylo Fined $5 Million as FTC, Utah Settle Safety Practices Complaint

The Federal Trade Commission and the state of Utah on Wednesday settled a complaint against Aylo, requiring the company to pay a $5 million penalty and implement measures to prevent illegal content from appearing on its sites.

XBIZ Amsterdam 2025 Show Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Amsterdam 2025, set to take place Sept. 2-4.

FSC: Missouri Age Verification Rule Will Not Take Effect August 30

The Free Speech Coalition (FSC) announced that Missouri's proposed age verification legislation will not take effect on August 30, as it had originally estimated.

Germany Will Block Payments to AV-Noncompliant Adult Sites as of Dec. 1

Starting Dec. 1, Germany will implement new rules prohibiting financial institutions from providing payment services to adult sites deemed to have inadequate age verification systems and making it easier for the government to target websites mirroring the content of such sites.

FSC Launches Age Verification Toolkit for Adult Websites

The Free Speech Coalition (FSC) announced today that it has launched a comprehensive toolkit to help adult websites navigate age verification laws.

Trump Administration Issues Executive Order Against 'Debanking'

The White House on Thursday issued an executive order limiting financial institutions’ ability to restrict access to financial services for people or groups involved in lawful industries, a longtime goal of adult industry advocates and stakeholders.

Florida AG Sues EU-Based Adult Companies for Failing to Age-Verify Users

Florida Attorney General James Uthmeier filed a lawsuit Monday with the 12th Judicial Circuit Court of Florida against five EU-based adult companies for allegedly failing to require age verification before allowing access to adult content.

Arcom Warns 5 Adult Sites Over Age Verification

French media regulator Arcom has sent enforcement notices to the operators of five adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

FSC: Identity Theft Targeting Adult Performers

The Free Speech Coalition has issued an alert warning of an individual found to be targeting adult performers for identity theft.

Show More