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

Irish PM Affirms Plan for UK-Style Ban on 'Extreme' Content

Ireland’s prime minister on Wednesday confirmed that his government is moving ahead with plans to introduce legislation criminalizing possession and distribution of “extreme” pornography, which he hopes to see passed by early 2027.

UK Parliamentary Group Calls for Outlawing Cam Platforms

The U.K. Parliament’s All-Party Parliamentary Group (APPG) on Commercial Sexual Exploitation has published a report in which it calls for banning adult livestreaming platforms.

Ofcom Escalates Sun Social, Superb Convert Investigations

U.K. media regulator Ofcom has ramped up its ongoing Online Safety Act (OSA) compliance investigations into PlayVids/PeekVids operator Sun Social Media and PimpBunny operator Superb Convert.

Judge Preliminarily Approves Pornhub Class Action Settlement

A U.S. District Court judge on Monday granted preliminary approval to a settlement between Aylo and the plaintiffs in two class-action lawsuits over allegations that former Pornhub parent company MindGeek knowingly allowed and profited from CSAM on its sites.

Ofcom Sets Timeline for Enforcing 'Extreme' Content Rules

Before U.K. media regulator Ofcom begins enforcing new laws criminalizing certain “extreme” adult content online, it will first hold a consultation in early 2027, and then provide updated guidance for sites and platforms.

FSC Publishes Guidance on New UK Pornography Laws

The Free Speech Coalition (FSC) has published information for its members on the United Kingdom's recently passed pornography laws, which take effect next week.

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Arcom Issues Warnings to 3 Adult Sites Over Age Verification

French media regulator Arcom has issued formal notices to the operators of three adult websites that the agency says have failed to implement age verification as required under French law.

Sportsheets Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Sportsheets in a case against a copycat website using an infringing domain.

Kink.com Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Kink.com in a case against a copycat website using an infringing domain.

Show More