Say Anything Blog

Shouldn’t they settle the legality of the tax before Texas business owners are forced to pay it?

AUSTIN, Texas - Texas still expects strip clubs to pay its “pole tax” while the state appeals a ruling that declared the fee unconstitutional.

The state comptroller has sent a letter to strip clubs saying that the fee is active and that the first reports and payments are due Monday. If they aren’t sent in, a 5 percent penalty takes effect.

Strip clubs have vowed to keep fighting the fee.

“It’s a grave injustice that the attorney general and the comptroller would use procedural court technicalities to continue to trample on the rights of these business owners,” said Stewart Whitehead, attorney for the Texas Entertainment Association, which includes more than half the topless clubs in Texas.

Last year, the Legislature overwhelmingly approved a $5 cover fee on strip club patrons and designated the $40 million to be collected annually to sexual assault services and health insurance to the poor.

Discussion question: Will the state refund the money collected through this tax if the ultimate ruling on the appeal is that it is illegal?

If yes that means the taxpayers of Texas would not only be on the hook for paying for the original collection of tax and the fees associated with fighting the lawsuits against the tax but also the cost of refunding the tax dollars.  You’d think the simpler, more cost-effective move would be to just wait and see what the courts decide.

And there are no guarantees that the state will refund the money.  Here in North Dakota cities which last a lawsuit over illegal traffic fines aren’t refunding those fines back to the people they were collected from.

Isn’t the arrogance of big government just wonderful?  Let’s put these people in charge of our health care too!