RCI Announces U.S. Court Rules Texas Patron Tax Unconstitutional
HOUSTON – March 9, 2020 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the U.S. District Court for the Western District of Texas, Austin Division, ruled on Friday that the Texas Patron Tax is unconstitutional as it is being applied and enforced.
Eric Langan, President & CEO, said, "The ruling by Senior U.S. District Judge David Alan Ezra was very favorable in our more than 10-year effort to overturn the tax. While the state still has the option to appeal, the ruling significantly enhances our efforts to end the tax and possibly collect money we've already paid."
The Texas Comptroller of Public Accounts has been collecting the $5 per customer tax from certain gentlemen's clubs in the state that are owned by RCI subsidiaries. In the company's most recently ended Fiscal 2019, such tax payments totaled approximately $2.2 million.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names, such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com
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