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

Lilly Bell Makes Her Tushy Raw Debut

XMAs winner Lilly Bell has made her debut for Tushy Raw alongside Jimmy Bud in the latest release from the Vixen Media Group imprint.

Jessi Rae, Ashby Winter Star in Latest From Vixen

Jessi Rae and Ashby Winter star with Alberto Blanco in the latest release from Vixen.

Hazel Moore, Melanie Marie & Della Cate Lead Latest From Blacked

Hazel Moore, Melanie Marie, and Della Cate star with Isiah Maxwell, Hollywood Cash, and Jax Slayher in an orgy release from Vixen Media Group studio imprint Blacked.

Kalli Poon Makes Her WIFEY Debut

Kalli Poon has made her debut for Vixen Media Group studio imprint WIFEY alongside her husband Jay and Isiah Maxwell.

PASS to Host Online 'Office Hours' Town Hall on Mgen Testing

PASS will host a monthly Office Hours virtual town hall meeting for all adult industry members, focusing on concerns over rectal Mgen testing.

Full Circle Debuts 'Savage Sex Sauce' Lube Collection

Full Circle has introduced its Savage Sex Sauce collection of lubricants.

Texas Court Orders Adult Site Domain Locked for AV Violations

A district court in Texas has issued a writ requiring domain registry Verisign to “lock” an adult website’s domain over noncompliance with the state’s age verification law.

Sustory Debuts 'Rex' Tapered Dildo

Pleasure brand Sustory has introduced its new Rex tapered dildo.

Alina Lopez Leads Latest From Bellesa Plus

Alina Lopez stars with Danny Mountain in a release from Bellesa Plus, titled “In The Coach.”

Hazel Moore, Melanie Marie & Della Cate Star in Latest From Blacked

Hazel Moore, Melanie Marie, and Della Cate star in the latest scene from Vixen Media Group studio imprint Blacked.

Show More