Austin Strip Clubs: Appeals court strikes down strip club tax
Appeals court strikes down strip club tax
AUSTIN (Legal Newsline)- A state law imposing an admission tax on strip club patrons has been declared unconstitutional by a panel of state appeals court justices.
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In a 2-1 opinion, the judges said lawmakers were wrong to raise sexual-assault prevention funds on the backs of strip club patrons. The court rejected the state’s argument that the fee was an alcohol regulation levy.
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Should state Attorney General Greg Abbott, a Republican, decide to appeal the case to the state Supreme Court, the tax would continue to be levied and deposited in trust. If no appeal is brought forth or if the state loses at the Supreme Court, the money will be returned to strip club owners.
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In his ruling, the ruled that the pole tax didn’t pass constitutional muster because, among other things, there was no nexus between what the fee was bankrolling and strip clubs.