Calif.'s 20% Porn Tax Proposal Shot Down in Committee

SACRAMENTO — A California bill that would have imposed a 20 percent tax on sales of adult movies and sex toys, as well as the receipts of strip clubs, has been voted down by a legislative panel.

Free Speech Coalition Executive Director Diane Duke, who had traveled Monday to Sacramento for the hearing, told XBIZ that she and FSC Lobbyist Ignacio Hernandez, as well as a representative from the Motion Picture Association of America, had testified in opposition of Assembly Bill 847.

Later Monday, the bill was voted down in the Assembly Tax and Revenue Committee.

“Read my lips — no new taxes on adult entertainment,” Duke said.

California Assemblywoman Mary Salas, D-San Diego, sponsored the proposal, which would have sent revenue from the tax to a newly created Adult Venue Impact Fund.

The fund would then have been distributed to local law enforcement agencies in an effort to deal with secondary effects that are associated with adult entertainment businesses.

Salas’ chief of staff, Francisco Estrada, told XBIZ that the assemblywoman was “deeply disappointed” by the 5-4 vote against the bill.

“At this point, we’re not sure if the bill will be resurrected,” Estrada said.

The hearing on Monday included testimony from Pink Cross Foundation founder Shelley Lubin, who testified in favor of the 20 percent tax. Pink Cross is a 501(c)(3) public charity designed to help ameliorate secondary effects of adult content on the general public and Lubin is a former porn star.

Despite her testimony, the bill has faced heavy opposition from the FSC and the adult trade group has pointed out major technical issues from the get-go.

Two months ago, FSC lobbyist Ignacio Hernandez said the bill could be found unconstitutional on several points, including taxation based on the content of a movie.

“The bill was clearly unconstitutional,” FSC lobbyist Ignacio Hernandez said. “We did the work that needed to be done to communicate to key legislators all the problems a tax on adult entertainment would bring to the state of California.”

“Punishing legitimate retailers who choose to locate in neighborhoods with a need for commercial tenants is not the type of policy we need during these tough economic times," Hernandez said.

Specifically, AB 847 would have levied a 20 percent tax on the gross receipts of any California business that is:

  • A retail establishment whose gross receipts from the sale or rental of adult material exceeds 50 percent of all gross receipts.

  • Providing a public or private viewing of adult material.

  • An establishment that offers live sexually explicit conduct that is prohibited to audiences under 18 years of age or 21 years of age, depending on whether alcoholic beverages are sold on the premises.
Related:  

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

Penny Barber Leads Latest From MYLF

Penny Barber stars with newcomer Vince Vicious in the latest release from MYLF.

Blush Debuts Fine Jewelry-Inspired 'Queen's Reign' Collection

Blush has introduced its new Queen's Reign line of five pleasure products, inspired by fine-jewelry designs.

Emma Rose, Kasey Kei Star in Latest From Transfixed

Multi-XMAs winner Emma Rose and Kasey Kei star with Ameena Green in the latest release from Transfixed, titled "A Nuru Solution."

Aylo Case Against Utah VPN Rule on Hold Pending Legislative Changes

A federal court has paused Aylo’s suit over a Utah law making adult websites liable if minors bypass age verification by circumventing geolocation efforts, until the state legislature can meets to potentially amend the statute.

XR Brands Debuts 3 New Fantasy-Themed Collections

XR Brands has introduced three new fantasy-themed lines inspired by hentai, kawaii, and K-Pop.

Orion Debuts New Cock Ring From 'Rebel' Line

Orion Wholesale has released a cock ring with a vibrating stimulator from its Rebel collection of men's pleasure products.

Dorcel Drops Franck Vicomte's 'Our First Orgy'

Dorcel has released director Franck Vicomte's latest feature, "Our First Orgy."

Khloe Kapri Headlines 'After Hours' From Sweet Sinner

Khloe Kapri toplines "After Hours," the latest release from Mile High Media studio imprint Sweet Sinner.

Angela White Stars in Jonni Darkko Blowbang Release

Multi-XMAs winner Angela White stars in a new blowbang release from Evil Angel, directed by Jonni Darkko.

Violet Voss Makes Her Deeper Debut

Violet Voss has made her debut for Vixen Media Group studio imprint Deeper alongside Alex Jones in the studio's latest release, titled "Absolution."

Show More