Texas strip club ‘pole tax’ gets court OK

August 27, 2011

Texas can continue to impose its $5-per-customer fee assessed strip clubs that serve alcohol.

The so-called pole tax does not violate the clubs' free-speech rights, according to the Texas Supreme Court.

The legal battle has been underway since 2007. That's when the state's Sexually Oriented Business Fee Act took effect. The law imposes the extra charge on establishments that offer exotic dancing and serve alcohol.

Strippers

Although the fee is based on the number of customers, the businesses must pay it.

If I had to guess — and guessing is what I'd be doing since I haven't visited a strip club (the Diamond Doll in Lubbock) since my days early in my career as a police beat reporter — I'd say strip club patrons better bring some extra dollars to pay for drinks.

But back to court.

As soon as the pole tax became law, strip club owners began fighting it.

An Amarillo club owner and the Texas Entertainment Association went to court to invalidate the fee based on First Amendment protections, specifically freedom of expression.

At issue was the fact that the tax was imposed only in those situations in which the Comptroller "determined that the essence of the performance or transaction was live nude entertainment."

A couple of courts sided with the strip clubs. Last year the Lone Star State's high court agreed to hear the case.

Meanwhile, the state continued to collect the tax, about $15 million so far. The money, however, has just been stacking up in the state treasury while the lawyers have had at it.

With this Texas Supreme Court ruling, the funds could start going to programs that help victims of sexual assault. If more than $25 million is collected, the law calls for health care programs for uninsured Texans to get some of the pole tax proceeds.

That is, of course, unless the strip clubs decide to appeal to the U.S. Supreme Court. 

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment