Politicians Discuss Mandatory Internet Sales Tax

WASHINGTON — Politicians are debating a mandatory sales tax be put on all out-of-state online purchases, an argument that now, with a Democrat-controlled Congress, is more likely than ever to become a reality.

A recent CNET article, reported that the Streamlined Sales Tax Agreement — created in 2002 by tax officials in the hopes of clarifying complicated state tax laws — could make it easier for Congress to mandate an online sales tax. Twenty-two states so far have signed onto the project.

Adult industry lawyer J.D. Obenberger told XBIZ that online taxation is inevitable and would play a vital role in the economy, and it would cause no problems for the adult industry as long as the regulation is uniform and non-discriminatory.

Current tax laws exempt certain products from taxation — such as the sale of information — and Obenberger said the government has a tradition of showing preference to some items over others. He said there is no way of knowing if the proposed set of uniform tax rules would include special taxes on adult purchases, but that it certainly invites speculation.

Obenberger's main concern with the proposed taxation is not the tax itself, but that the Internet is not yet ready for a mandatory sales tax — not until it has reached its highest potential, what he said some call "Web 2.0."

"The Internet is still growing and morphing," Obenberger said. "[An Internet sales tax] would be premature until the Internet is hooked up and wired with fiber optic cables in every home that signs up for it. Until that is in place, taxation is not appropriate."

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

ASACP Marks 30-Year Anniversary

ASACP is celebrating 30 years of operation, during which it has received over 1.3 million reports from web admins and the public about suspected child pornography.

AEBN Announces Isiah Maxwell as Top Male Boy/Girl Performer for Summer 2026

AEBN has revealed its top 10 male Boy/Girl performers for summer 2026, with Isiah Maxwell landing atop the leaderboard.

JMan Launches AI Companion Solution for Adult Websites

Online industry veteran JMan has launched Orkestrait, an AI companion solution designed specifically for adult websites.

Johnny Sins Launches 'Fangate' Platform for Account-Free Content Sales

Johnny Sins has officially launched Fangate, a platform that allows creators to sell content directly to fans without requiring a user account or subscription.

TSBlondieNYC Launches Official Website Through PAYSITE

TSBlondieNYC has launched an official website through PAYSITE.

Creator and Sexual Wellness Brand Marketplace Platform 'Teasr' Launches

Teasr, an online marketplace for creators and sexual wellness brands that focuses on live-selling and video product demonstrations, has officially launched.

JulModels Launches Paysite Content Royalty Program for Performers

JulModels has introduced JulRoyalty, a feature that allows performers and creators to earn royalties from their existing scenes and clips.

FSC Hails Members, Allies in SCREEN Act Victory

The Free Speech Coalition (FSC) released a statement today praising its members and allies after a successful lobbying effort to prevent the SCREEN Act, a nationwide age verification bill, from advancing out of the Commerce Committee for a full vote on the Senate floor.

SCREEN Act Stalls in Senate Committee Over Technicality

The Senate Commerce Committee on Wednesday voted to approve the SCREEN Act, which would mandate nationwide site-based age verification of users seeking to access adult content online, but a procedural issue blocked the bill from advancing to the full Senate.

DarkFans Adds Time-Limited Content Pricing

DarkFans has debuted its Configure Limits feature for automating content promotions.

Show More