Central Texas: State Has Trouble Collecting "Pole Tax"


CENTRAL TEXAS (May 7, 2014) The State of Texas is cracking down on strip clubs and other adult businesses.

They're suppose to charge a $5 dollar fee to each of their customers, which has been dubbed a "pole tax."

According to a law passed in 2007, the business must pay that money to the state.

However, many sexually-oriented businesses have failed to do so.

The state comptroller's office sent a letter to about 230 sexually-oriented businesses informing them of the July 20 deadline to have the bill paid.

Some strip club owners file a lawsuit saying the fee was unconstitutional, however a judge ruled in favor of the state.

"I am very hopeful that that would be some much needed revenue that we could really use here," Kathy Reid, Executive Director of the Family Abuse Center in Waco said.

The center provides shelter, counseling, and legal support to victims of sexual assault and domestic violence.

A portion of the fee or "pole tax" would have paid for

Reid says just last year, the center lost some of its funding.

As a result, she had to fire two of their three counselors.

She says the center stays full and that's a heavy workload for just one person.

The tax was estimated to collect $30 million dollars per year.

So far, around $17.2 million has been collected.


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