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 © 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

Nobü Adds to 'Essentials' Collection

Nobü has expanded its Essentials collection with three new vibrators.

Blush Expands 'B Yours' Collection

Blush has introduced a new vibrating plug from its B Yours Collection.

We-Vibe Debuts 'Shared Touch' Vibe

We-Vibe has introduced its new Shared Touch vibrator for couples.

Kiiroo Introduces New Tyler Wisby Stroker

Kiiroo has debuted the new Tyler Wisby stroker sleeve from its FeelStar line.

France Weighs Ban on Purchase of 'Remote' Sexual Services

The French National Assembly is considering a proposal to criminalize the purchase, and/or facilitation by online platforms, of sexual services performed remotely by streamers and custom content creators.

XR Brands Expands 'Creature Cuties' Clitoral Stimulator Collection

XR Brands has added three new products to its Creature Cuties line of unicorn-themed clitoral stimulators.

Orion Debuts 'Masturbator 12' From 'WYNE' Collection

Orion Wholesale has introduced the new Masturbator 12 from its What You Never Expected (WYNE) line.

XBIZ Expo Retail Trade Show Heads to L.A. LIVE Jan. 7-10

XBIZ Expo returns Jan. 7-10, 2027, at JW Marriott L.A. LIVE, where pleasure product manufacturers, distributors, retailers and other industry professionals will gather for four days of business, networking and entertainment.

Beisar Introduces 'Pillar' Fantasy Vibrator

Beisar has debuted its new Pillar fantasy vibrating dildo.

Full Circle Brands Expands 'The Pleasure Company' Vibe Collection

Full Circle Brands has introduced four new devices from its Pleasure Company collection of vibrators and massagers.

Show More