Texas Strip Club Tax Initiative Upheld

AUSTIN — Attempts to block a state-imposed $5 fee on Texas gentlements club admissions — slated to go into effect Jan. 1 — so far have failed.

District Judge Scott Jenkins refused to block the tax from going into effect, paving the way for a lawsuit that seeks to prove the unconstitutionality of the tariff, which plaintiffs contend is discriminatory, suppresses their right to free speech and endangers the survival of many affected businesses.

The tax initiative, previously reported by XBIZ, is intended by officials to raise an estimated $50 million annually, funds that they claim are earmarked to offset rising health care expenses for Texas’ uninsured residents — regardless of their citizenship status — and to finance sexual assault prevention programs.

"It looks like we proceed to trial," said Peter Nolan, a lawyer for the Texas Entertainment Association, representing businesses affected by the tax.

A trial date is expected to be set after Jenkins rules on the plaintiffs’ legal standing and ability to sue the state.

"They are some very worthy causes that are going to be funded," plaintiffs attorney Douglas Becker said. "[But] a worthy cause does not justify a content-based tax."

Texas Attorney General Greg Abbott and state Comptroller Susan Combs submitted a legal brief to the court, stating that the fee "does not prohibit nude dancing, does not dictate where live nude entertainment may be presented, does not require any minimum clothing and does not govern the physical setting for the activity."

Even though the state does not specify how the $5-per-customer fee should be collected, most club owners are expected to collect it as part of a cover charge.

Amarillo club operator Chandra Brown, one of the plaintiffs in the suit, testified how the increased fees, which would have to be passed on to customers, would negatively impact her business by driving patrons away. "They can't afford it," Brown said.

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

Former Backpage CEO Carl Ferrer Sentenced to 3 Years Probation, $40,000 Fine

Former Backpage.com CEO Carl Ferrer was sentenced in federal court today to three years' probation and a $40,000 restitution fine for a conspiracy conviction related to money laundering through the defunct website.

Honey Play Box, Planned Parenthood Arizona Partner for 'Just the Tip' Wellness Workshop

Honey Play Box and Planned Parenthood Arizona recently partnered for “Just the Tip: A Pleasure-Based Workshop.”

Playboy Wins $81 Million Judgment in Chinese Licensing Arbitration

Playboy, Inc. was awarded $81 million in damages yesterday by the Hong Kong International Arbitration Centre in a licensing dispute with former partner New Handong Investment (Guangdong) Co., Ltd.

Je Joue Names Ian Kulp Head of Global Wholesale & Brand

Pleasure brand Je Joue has appointed Ian Kulp as its new head of global wholesale and brand.

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.

Sportsheets Releases New Training Video for 'Peaches 'n CreaMe' Collection

Sportsheets has released its latest training video, titled "Peaches ’n CreaMe," hosted by Brand Ambassador Rin Musick.

Full Circle Names Stefanie Neumann Sales Account Executive

Pleasure brand Full Circle has appointed Stefanie Neumann as its new sales account executive.

Pjur Sponsors Düsseldorf's Sex Now Exhibition

Pjur is sponsoring Sex Now Exhibition at NRW-Forum in Düsseldorf, running through May 3, 2026.

Angelface Baddies Debuts 'Daddies for Baddies' Line

Wellness brand Angelface Baddies has introduced its new Daddies for Baddies line of men's wellness products.

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.

Show More