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

FSC Launches 'Speak Out' Media Campaign for Creators

The Free Speech Coalition (FSC) has announced the launch of FSC Speak Out, a media campaign for content creators to tell their stories.

Pineapple Support, Stripchat to Host LGBTQ Support Group

Pineapple Support and Stripchat are hosting a free online support group for LGBTQ+ individuals within the adult industry, titled "LGBTQ and Proud."

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Cultpix Debuts AI-Generated Vintage Adult Films at Cannes

At this year’s Cannes Film Festival, B-movie streaming service Cultpix debuted a collection of AI-generated short films drawn from erotic magazine photo spreads published 50 years ago.

Ofcom Fines Youngtek Solutions $800K for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed fines totaling 600,000 pounds (more than $800,000) against adult site operator Youngtek Solutions for failing to implement age checks and respond to information requests as required for compliance with the Online Safety Act.

Pornhub Launches Lesbian Site 'Pornhub Sapphic'

Pornhub has launched Pornhub Sapphic, a site dedicated to female and non-binary content and creators.

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Paysite Confidential: Inside the Creator Economy's Shift Toward Ownership

For years, the adult industry’s creator economy has been defined by platforms — powerful engines of discovery, monetization and scale that reshaped how performers connect with their audiences.

Show More