AUSTIN, TX — While some of the mainstream press still frets about the fact many Texas strip clubs have not been collecting the $5-per-person admission fee “pole tax” since it was first introduced in 2007, others have focused on the fact that the state Senate has voted to repeal it.Agreeing with club owners and their legal representatives, lawmakers determined that the fee authorized by HB982 was unconstitutional and therefore not a good idea in spite of its promise of raking millions of needed dollars into the state’s tax treasure chest.
Instead, Senators have agreed to promote yet another tax, this time promoted by Rep. Senfronia Thompson, [D-Houston} and aimed at all adult related businesses. The bill moves to Gov. Rick Perry, who has vowed to see his state secede from the United States.
Meanwhile, House members are also brainstorming on a tax bill, which has earned the affection of sexual assault victim advocates. Funds collected under the unconstitutional tax program were earmarked for assistance to sexual assault victims, as well as uninsured Texans, presumably based on a theory that strip clubs inspire sexual assault and deny people access to medical insurance.
If passed, the new tax would include adult theaters, video and book stores, as well as any other erotic themed business that charges an admission. The cost of doing business would then go up by 10-percent of all gross admissions receipts.
Money plucked from strip clubs would drop from the current $5 to $3, with all money going to the sexual assault fund. Funds from other businesses would be divided differently, with 25-percent going to fund schools and the rest earmarked for sexual assault organizations.
The proposed replacement tax is supported by the Texas Entertainment Association, which took its members’ concerns to court in hopes of seeing it repealed. More than $11 million have been collected and, after pending litigation, may be distributed.
The Star-Telegram reports that some victims groups, likely disappointed by the windfall loss, oppose Thompson’s bill, insisting that it is a sham designed by strip club owners to avoid their responsibilities. Such groups prefer HB 2070, Rep. Ellen Cohen’s [D-Houston] proposal, which would maintain the fee, but drop it to $3-per-person.
The bill currently awaiting Perry’s response would provide a credit to all club owners who have already paid into the system.
Thompson’s proposal is expected to earn the state about $1 million annually, as opposed to Cohen’s projected $16 million.
