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

Blush Expands 'Aria' Collection With 4 New Vibes

Blush has introduced four upgraded versions of vibrators from its Aria collection.

We-Vibe Debuts 'Melt 2' Vibrator, Air Pulse Massager

We-Vibe has introduced its new Melt 2 vibrator/air pulse massager.

Full Circle Expands 'Savage Me' Line of Male Torsos

Full Circle has expanded its line of Savage Me male torsos.

Nalpac, Entrenue Sign Distro Deal With Like A Kitten

Nalpac/Entrenue has inked a deal to distribute Like A Kitten pleasure products.

XBIZ Retreat Reloads Amsterdam Edition, Set for Sept. 2-5

XBIZ Retreat is making its highly anticipated return to Amsterdam, set for Sept. 2–5 at the chic Park Centraal Hotel.

Fantasy Gifts NJ Unveils 'Shave Stix' With Product Launch Event

Sexual wellness retailer Fantasy Gifts NJ introduced its new Shave Stix during a special event at its Lumberton location on April 17.

Motorbunny Now Available on 'Throne' Gift Platform

Motorbunny pleasure products are now available on Throne gift platform.

AV Bulletin: Age Verification Hits the Mainstream, Ofcom Sets a Date

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Honey's Place Now Distributing Camtoyz

Honey's Place is now distributing Camtoyz pleasure products.

ToyChats Announces Reviewer Incentives

Recently launched pleasure product review site ToyChats has announced a giveaway program for reviewers.

Show More