Strip-club tax may be changed

AUSTIN (AP/KXAN) - 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 she decided to sponsor the bill only under the condition that the lawsuit would end and Texas could start using the $11 million collected under the old bill for the programs for which it was intended. She said her legislation would be constitutionally sound and bring in millions of dollars to the state as well.

"We believe it would bring in between $4 and $8 million annually," she said. "One-fourth of that would go to the permanent school fund and three-fourths would go to the sexual assault fund."

Thompson's is not the only "sin tax" bill filed. Rep. Ellen Cohen, D-Houston, who sponsored the 2007 strip-club fee bill which is now being fought in court, has filed a new bill this session that would replace the old "sin tax" and hold up better in court.

HB 2070 would charge a $3 fee instead of the $5 fee and, unlike Thompson's, all of the money collected would go toward sexual assault programs.