Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
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Glenn Hegar
Texas Comptroller of Public Accounts
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Sexually Oriented Business Fee Frequently Asked Questions

Who must pay the Sexually Oriented Business Fee (SOBF)?

Businesses that provide live nude entertainment or live nude performances for an audience of two or more individuals, and authorize on-premises consumption of alcoholic beverages, regardless of whether the businesses are required to hold a license or permit under the Alcoholic Beverage Code, must pay this fee for each customer admitted (Texas Business and Commerce Code §47.051 - 47.056).

How do I pay the SOBF?

Complete Form AP-225, Texas Sexually Oriented Business Fee Questionnaire (PDF), and submit it to the Comptroller's office via fax (888-908-9997, Attention: Miscellaneous Taxes) or email (

When is the SOBF report due?

The SOBF report and fee are due by the 20th day of the month following each calendar quarter. If the due date falls on a Saturday, Sunday or legal holiday, the next working day is the due date.

How should I track and validate my payments of the SOBF?

You are required to maintain adequate records, statements, books and accounts that allow you to calculate and the Comptroller to verify the SOBF for which you are liable.

Specifically, you must record daily the number of customers admitted to your business. This information can be written, stored electronically or in any form that the Comptroller's office can easily examine.

Can I collect the fee from my customers?

Yes. The law gives you the discretion to determine how you will derive the money to pay the SOBF. However, all door and cover charges, including a pass-through of the sexually oriented business fee directly to customers as part of the admission, are subject to sales tax, so if you collect the SOBF from your customers, you must also collect and remit sales tax on the fee.

A charge not clearly identified as reimbursement of the fee is considered a tax collected from the customer, and these amounts must be remitted to the Comptroller's office in addition to the $10.00 entry fee.

How do I calculate the amount of fee due by a business for a customer who enters the same sexually oriented business location more than once in the same day?

This situation is considered to be one entry for which the business owes $10.00. A business day begins when the business opens and continues until the close of business. See Rule 3.722.

What if I occasionally host an event that meets the definition of a sexually oriented business?

If you host even one event that meets the definition of a sexually oriented business, you are responsible for the fee based upon attendance during the specific event. Complete and submit to the Comptroller's office Form AP-225, Texas Sexually Oriented Business Fee Questionnaire (PDF), and remit the SOBF. We will create an account so the business can file the quarterly report and pay the fee.

What if I operate a business where the consumption of alcoholic beverages is allowed and live nude performances take place only in private rooms where only one customer at a time is allowed to view the performance?

This type of business is not liable for the SOBF, because it does not provide live nude entertainment for an audience of two or more individuals.

What happens to SOBF-generated revenue?

By law, the first $25 million in revenue generated by the fee is dedicated to the Sexual Assault Program Fund. This fund covers the costs of programs that relate to sexual assault prevention, intervention and research provided by state, local and nonprofit agencies. Any excess revenue is deposited to the Texas Health Opportunity Pool and used only to provide health benefits coverage premium payment assistance to low-income persons.