Calif. Legislator Calderon Proposes 8 Percent Porn Tax

SACRAMENTO, Calif. — State Assemblyman Charles Calderon, D-Whittier, has set an 8 percent tax on a bill that would impose a tariff on items sold by sex shops, sexually explicit nightclub acts and pay-per-view movies featuring unprotected sex or X-rated acts in a public place.

The bill, AB 1551, was reported by XBIZ in April. AB 1551 would not apply to materials used by schools or sold incidentally in stores, or to nudity in a legitimate theater, ballet, opera, concert or other such performance.

Revenue from the tax would be placed in a special state fund for legislative appropriation to law enforcement, health and other affected services. The measure could raise $100 million annually.

Calderon said he is not attacking adult material, only trying to ease the impact on neighborhoods where sex shops operate.

"I'm not concerned with the morality of it," Calderon said of adult material. "Is it good? Is it bad? I don't know."

Adult industry attorney Michael Fattorosi thinks the bill would be bad for the state of California on a business level.

"I spoke with Calderon about this when we went up for Free Speech Lobbying days. We spoke with him about this bill, and I said it's bad business," Fattorosi told XBIZ. "People talked to him about the free speech issues, and he didn't seem swayed. He was comparing porn to tobacco and alcohol, like a sin tax. I said we have an industry that's worth $4 to $6 billion to the state of California, and if the state is no longer friendly to the adult business, they will leave. There are centers of production — albeit not entirely legal — all over the world. In the age of the Internet, you don't need to be located in the San Fernando Valley any more. Nevada is very business-friendly, and you could lose a lot of business to Nevada.

"It's a legal industry in California, and it earns a lot of money. It generates revenues for the state, and provides for people to buy houses. I would dare say it's the largest employer industry in the San Fernando Valley. It certainly isn't aerospace anymore."

1st Amendment attorney Jeffrey J. Douglas said that lawmakers cannot legally use taxation to attack material they find objectionable.

"Why an 8 percent tax? Why not 18 percent? Why not 88 percent? The courts will not put themselves in the position of saying 4 percent is OK, but 4.5 percent is not," Douglas said. "It's totally inappropriate for government to favor one form of speech over another by using taxation, because of its power to destroy."

The bill also is facing opposition from Republicans who say they oppose tax increases of any kind.

The bill would require a two-thirds majority in each legislative house to pass, so it would need a "Yes" vote from at least six Republicans in the Assembly and two in the Senate.

"I see this as an attempt by Mr. Calderon to appeal to certain social conservative elements within my party as a way to get more money to spend for his special interest groups," Assemblyman Chuck DeVore, R-Irvine, said. "I view the bill more as political theater myself."

A hearing on AB 1551 is pending in the Assembly Revenue and Tax Committee, which is chaired by Calderon.

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

Ofcom: AVS Group Has Not Paid $1.3 Million Fine

AVS Group Ltd. has not paid the penalty of 1 million pounds, or approximately $1.3 million, that Ofcom imposed on the company for failure to implement robust age checks on 18 adult websites, the U.K. media regulator disclosed on Monday.

Anastasia's Bedroom Introduces 'Lightly Loved Lingerie' Collection

Anastasia’s Bedroom, a Canadian-based online retailer, has debuted its Lightly Loved Lingerie collection.

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

LELO Debuts 'Surfer 2' Anal Plug

LELO has introduced its new Surfer 2 anal plug.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

Our Erotic Journey Expands 'Cristal Collection' of Vibrators

Our Erotic Journey has introduced five new vibrators from its Cristal Collection.

Nice & Naughty Names Chris Fleiger Director of Operations

Michigan-based retail chain Nice & Naughty has appointed Chris Fleiger as its new director of operations.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

XBIZ Retreat to Make Its Cabo Comeback Aug. 17-21

XBIZ Retreat will return to Cabo San Lucas Aug. 17–21, bringing together top LATAM retail buyers and pleasure product brands for a week of dealmaking and networking.

Show More