AUSTIN, TX — The Texas Legislature thought it had cooked up the perfect revenue combination: digging into the pockets of socially scorned (but popular) strip clubs and funding fiscally neglected but valuable social programs. This past Friday, District Judge Scott Jenkins gave the legislature a wake-up call, ruling the imposition of a $5-per-customer tax to be unconstitutional. Naturally, the state has every intention of appealing Judge Jenkins’ decision, in spite of the fact that he clearly explained that the tax had unfairly targeted a “business activity involving expression that, while politically unpopular, is nevertheless protected by the First Amendment.”
The goal of the so-called “pole tax” had been to fund sexual assault prevention and low income health insurance. While none argued about the importance of the services, those within and sympathetic to the adult entertainment industry felt that, in addition to merely being unconstitutional, the attempt to associate sexual assault with strip clubs was an unfair smear.
Jenkins, himself, acknowledged that attempts to finance such services are “laudable goals,” but pointed out that legislators had not proven an actual relationship between topless dancing and either sexual assault or lack of medical insurance.
As Jenkins pointed out, there is “no evidence that combining alcohol with nude erotic dancing causes dancers to be uninsured, or that any uninsured dancer could qualify for assistance from the fund.”
The decision was met with approval by those who had lobbied against it, including Steward Whitehead, who represented clubs that had sued to overturn the law via the Texas Entertainment Association, Inc. “We think that the programs that were to be funded from this tax are worthy,” he conceded, “but we strongly disagree with the unconstitutional way the Legislature chose to do so. The court agreed with us.”
Jerry Strickland, a representative for Texas Attorney General Greg Abbott insists that the state is not done with the matter, however. Using the fact a Dallas club had allowed a 12-year-old girl to dance, Strickland insisted that Abbott’s office intends to “vigorously appeal the trial court’s ruling and remains committed to sexual assault awareness and prevention.”
The fee, which was the brainchild of Rep. Ellen Cohen (D-Houston), was expected to raise $44 million. Club owners insisted in court that the tax would drive them out of business. The fee became effective on January 1st, with initial payments expected in April.
Cohen justified fee by saying that sexual assault affects women and exotic dance clubs employ many women, therefore they should pay to fund services potentially of value to their employees. She expressed skepticism that the additional $5 fee, on top of the $10 – $15 entry price of many clubs, would cause clubs any real inconvenience or loss of business.
Dawn Rizos, who owns the upscale Dallas Lodge club, told Dallas News that she wasn’t ready to celebrate yet. “They rest of them are ready to throw a big party, but I don’t think this is over,” she confided. “They’re going to rewrite it, and eventually it will pass.”
