'Stripper tax' up for debate again

AUSTIN (KXAN) - The Texas "sin tax" is in the middle of a court battle Wednesday.

The fee was approved by the Texas Legislature in 2007, adding a $5 charge  for every strip club visitor and was expected to raise more than $44 million for sexual-assault prevention programs and indigent health care. The fee went into effect in January 2008.

On Wednesday, a coalition of strip clubs were in the Third Court of Appeals trying to convince a judge to consider blocking the state law. The judge adjourned the hearing after arguments, with no decision.

In March 2008, a judge in Austin, ruled that the fee was unconstitutional. The state immediately appealed and in April 2008, the state comptroller told strip clubs they must continue to collect the fee while the state appeals the court ruling.

On Wednesday, lawyers for the Texas Entertainment Association argued that the fee violates the first amendment and that nude dancing is a form of expression. They described it as a tax on free speech.

Lawyers for the state argued that the Legislature can impose the fee on businesses that serve alcohol and offer nude dancing, and that imposing a fee would reduce the secondary effects, including sexual assault.

The Texas Association Against Sexual Assault said the fee is the most appropriate source of funding for sexual assault programs statewide.

"There is a link between sexually oriented business, live nude dancing and sexual violence," said Nichole Tips with TAASA. "We just want to make sure that the funds collected from this only go to sexual assault programs."

The association said whatever the outcome, they are going to continue to work with lawmakers to tailor a new bill this session so that the funds will only go to these programs. Lawyers for both sides only said the decision could take months.

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