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 © 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

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Virginia 'Porn Tax' Bill Delayed Until 2027

A Virginia House of Delegates subcommittee on Monday voted to postpone until next year consideration of a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

Virginia Becomes Latest State to Weigh 'Porn Tax'

The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.

UPDATED: Arcom Threatens to Block, Delist 2 Adult Sites Over AV Violation

French media regulator Arcom has sent enforcement notices to the operators of two 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.

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew 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.

AV Bulletin: Health Warnings, VPNs and Exemptions

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been introduced around the United States, as well as at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pornhub to Block UK Users Without Accounts Starting Feb. 2

Pornhub parent company Aylo will block access to its free video-sharing platforms in the United Kingdom starting Feb. 2 unless users have already set up accounts prior to that date, the company announced Tuesday.

Aylo Wins Another Major Piracy Lawsuit

For the second time in recent weeks, Pornhub parent company Aylo has prevailed in a copyright infringement case against sites pirating its content.

Show More