Texas Strip Club Tax, Declared Unconstitutional, Still Being Collected During Appeal

AUSTIN, Texas — State District Judge Stephen Yelenosky has told attorneys for Texas strip clubs that the state can continue to collect a controversial strip club fee — which was struck down as unconstitutional three weeks ago — while the state appeals the ruling.

Texas Entertainment Association attorney Stewart Whitehead said the state is insisting on collecting fees that it knows are unconstitutional. The Texas Entertainment Association membership includes more than half the topless clubs in Texas.

"It's a grave injustice that the attorney general and the comptroller would use procedural court technicalities to continue to trample on the rights of these business owners," Whitehead said.

The $5 cover fee on strip club patrons was approved by the Texas legislature last year, which earmarked the expected $40 million in annual revenues for sexual assault services and health insurance to the poor.

Club owners sued, and on March 28, state district Judge Scott Jenkins found that the fee was an illegal tax on "expression that, while politically unpopular, is nevertheless protected by the First Amendment." Declaring the law invalid, Judge Jenkins issued an order that included an injunction against collecting the fee.

On April 7, the attorney general's office filed an appeal, which automatically suspended Judge Jenkins' judgment and the injunction. The state comptroller sent out a letter to strip clubs saying that the fee is active, and that the first reports and payments are due Monday. If they aren't sent in, a 5 percent penalty takes effect.

On Thursday, Judge Yelenosky declined to issue an order that would keep the injunction in place during the appeal, effectively continuing collection of the tax.

Texas Entertainment Association attorney Whitehead said that the businesses will continue to fight, and will appeal Thursday's ruling.

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

ProDx Health Introduces 'Power Femme' Test

ProDx Health has introduced its new Power Femme Home Collection Kit.

Orion Expands Cottelli 'Accessoires' Line

Orion Wholesale has introduced five new “It” pieces from its Cottelli Accessories line.

ANME Wraps With Product Drops and Partnerships

ANME wrapped on Wednesday, the event’s third day, after delivering a mix of product launches, power meetings and networking — all while preserving the laid-back vibe that attendees say always makes ANME feel like a homecoming.

Playharda Wholesale, Secret Dome Ink U.K. Distro Deal

Playharda Wholesale and BDSM brand Secret Dome have signed a deal for UK distribution.

Hankey's Toys Releases 'Kitsune's Knot' Dildo

Mr. Hankey's Toys has introduced its new Kitsune’s Knot dildo.

France Reinstates Age Verification Rule for EU Sites

France’s highest court, the Council of State, on Tuesday reinstated age verification rules for EU-based sites under the country’s Security and Regulation of the Digital Space (SREN) law, ruling in favor of the French government and against Hammy Media.

Velvet Thruster Signs Distro Deal With ECN

Velvet Thruster has inked a distribution deal with East Coast News (ECN).

Kiiroo Introduces New Agatha Vega Stroker

Kiiroo has debuted the new Agatha Vega stroker sleeve from its FeelStar line.

European Commission Approves AV Guidelines, Unveils Prototype App

The European Commission on Monday released its final, approved guidelines for protecting minors online under the EU’s Digital Services Act (DSA) and made public a “white label” age verification app intended to help sites and platforms comply with age verification rules under the DSA.

Show More