Have lawmakers conceded that the infamous “titty tax” is dead? During June 9 debate on Senate Bill 1, Reps. Harold Dutton, D-Houston, and Doug Miller, R-New Braunfels, told the House that the surcharge on alcohol-serving, adult-oriented businesses is likely to fail in the courts. Authored in 2007 by Dutton’s fellow Houston Democrat – former state Rep. Ellen Cohen – the $5 collected per customer has been sitting in a suspense account unspent, as the state has lost two successive lawsuits over the tax’s constitutionality. The Texas Supreme Court heard oral arguments on its latest appeal more than a year ago (see “Texas Supremes Ponder ‘Pole Tax,'” April 2, 2010) and has yet to render a decision. However, Dutton proposed an amendment to SB 1 ending its collection. He argued that if the Texas Supremes follow the lead of both lower courts, then the state will have to return the cash to the bars. Better not to collect, he said, “rather than collect it and give it back.” Dutton’s motion failed, but he had unexpected support from Miller, who had a similar amendment attached to SB 23 in the regular session. Miller said it was “a prudent fiscal decision to wait until we find out just whose money it is.
This article appears in June 17 • 2011.
