Texas Strip Clubs Lose Appeal on Pole Tax

A $5-per-patron fee is not an unconstitutional occupation tax and must be paid by Texas strip clubs that serve alcohol, an appeals court ruled Friday.

“We … render judgment that the sexually oriented business tax is not an occupation tax and thus there is no requirement that 25 percent of its revenue go to public schooling,” the Texas Third Court of Appeals stated in its ruling.

Lawyers for the strip clubs have said the fee was an unconstitutional occupational tax because it failed to designate 25 percent of the money to be collected for public education.

Strip clubs have fought the ...

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