AUSTIN, Texas – The Texas House has given initial approval to a new tax on sexually oriented businesses.
Democratic Rep. Senfronia Thompson's proposal — tentatively approved Thursday with a non-recorded voice vote — would repeal a $5-per-person fee that strip clubs were required to collect from 2007 legislation.
The new tax would apply to every sexually oriented business that charges an admissions fee. It would total 10 percent of the gross receipts of the business' admissions.
Topless club owners are fighting the previous state law in court. Thompson said her proposal would resolve that lawsuit and start sending millions of dollars to a fund for sexual assault victims.
The strip owners who have paid the state under the old fee would get a credit toward the new tax.