Unconstitutional taxation. That is the latest argument in the strip club lawsuit against the state of Texas over the upcoming $5-per-customer fee.
The Texas Entertainment Association and Karpod INC., the owner of an Amarillo club, argue that the fee is an occupation tax. They say it violates the Texas constitution because a quarter of the revenue from such taxes must be set aside for public schools.
Money from this fee will, instead, pay for a sexual assault prevention program and health insurance for low-income Texans. The fee goes into effect on Tuesday.