Texas Topless Titty Tax

Rockadelic

I predict state tax on breast implants not far behind..............._________________________________________________________________________________ $5-a-person state tax takes effect; businesses wait to assess impact [/b] 04:48 AM CST on Wednesday, January 2, 2008By KARIN SHAW ANDERSON / The Dallas Morning News [email]ksanderson@dallasnews.com[/email] Gene Good calls it his Cheers. But because his favorite bar features topless dancers, he now pays more for the camaraderie. "It's somewhat unfair," Mr. Good said of the new $5-a-person state tax for each person who visits a strip club. "I never heard of any discussion of a tax for other clubs that sell drinks or restaurants that serve alcohol." A coalition of adult-entertainment industry operators tried to block the new fee, which went into effect Tuesday. They said it violated club operators' right to constitutional free speech, but the tax was upheld by a state district court judge Dec. 18. Then, in court papers filed Dec. 21, the group called the fee an occupation tax that violates the Texas Constitution. The clubs argued the fee would violate the constitution's requirement that a quarter of the revenue generated by all occupation taxes must be set aside for public schools. A ruling on that argument has not been issued. The tax was approved by the Texas Legislature in May and is expected to raise about $40 million each year. More than half of that money would go toward services for victims of sexual assault. The rest would be used to provide health assistance to the state's poorest residents. Clubs are not required under the law to pass on the cost of the fee to its customers. At The Lodge, the upscale club that Mr. Good frequents, management raised the cover charge by a few dollars for each shift to make up for a portion of the fee. The club will absorb the rest. The parking lot outside the Dallas topless bar was fairly bare on New Year's Day, but that's typical for the holiday, said Dawn Rizos, owner of The Lodge. It will probably take at least three months to know if the higher cover charges will affect her business. The size of the lunch crowd, which was never charged a cover fee before, has the most potential to change, she said. Patrons will still be offered $5 lunch specials, but they'll also have to pay $2 at the door. Prices rise as the sun sets. "Our club is different than most," Ms. Rizos said. "Our customers have more disposable income than some others." Chuck Pettigrew, another regular at The Lodge, said he doesn't like the tax but that the higher cost won't change his habits. "I'm an easy target because I choose to drink in a gentlemen's club," he said. "Here in the Bible Belt, most people aren't going to defend my right to do that. "Now I have to pay extra for the behavior of someone else," he said, referring to perpetrators of sexual assault. But Ms. Rizos said she likes partnering with the state to help others. "It legitimizes the industry," she said. To offset a portion of the estimated $60,000 a month The Lodge will contribute to the sexual-assault program fund, Ms. Rizos began cutting advertising a few months ago. She said she will rely on customer loyalty to keep the business profitable. "The club's been open for 11 years," she said. "I think we'll be fine." Still, Ms. Rizos said, she'd like assurance that the state won't raise the fee in a few years, putting more pressure on strip clubs that survived the fee. "This really will put a lot of clubs out of business," she said