AUSTIN, TX — The entire thing may be unconstitutional, but supporters of a $5 per strip club patron “pole tax” are unhappy that some clubs have not forked over the cash while the issue is wandering its way through the court system. Although the Reporter News indicates that Cloud Nine Cabaret has dutifully handed over more than $20,000 in money to the state, other clubs have apparently not been so compliant.
Although a state district court judge declared the fee, which was passed in 2007, to be an unconstitutional restriction of protected free speech. Further, the judge pointed out that assessing a fee to club attendance can not be justified based on a claim that the establishments contribute to sexual assault and a lack of medical insurance; two social ills the money is supposed to help ameliorate
Nonetheless, its supporters have demanded that clubs continue to send in checks to the Texas Comptroller’s Office, presumably until the courts rule in the government’s favor or the protesting clubs give up.
Although no one would explain the obvious to the mainstream press, at least Jaguars Gold Club and Maximus have declined the offer to temporarily or permanently shuffle funds to the Comptroller. Some others appear to have made token contributions, but nothing near the $40 million promised by the fee’s supporters. Instead, a meager $11.2 million has been collected.
R.J. DeSilva, a representative for the Comptroller’s Office, explains that “If the fee is upheld in appeals court, that money will get distributed. We would also start a process in which clubs that have not previously paid would get assessed liabilities and have to pay the money they owed.”
In the meantime, the money collected so far is being held in a special fund. If the appeals court does not rule in the state’s favor, DeSilva admits that it will be returned to the clubs that paid into the system.
Steward Whitehead, attorney for the Texas Entertainment Association insists that he has not encouraged his clients to dodge the fee.
