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

Xgen Debuts 'Bare by Baci' Wellness Collection

Xgen Products has introduced its Bare by Baci line of wellness products.

Cami Strella, River Lynn Front Latest From New Sensations

Cami Strella and River Lynn star in the latest release from New Sensations.

COTR Renews Flagship Brand Domains

COTR, Inc. has renewed its multi-year domain leases for its flagship sexual wellness brands; B-Vibe, Le Wand, and The Cowgirl.

Vixen Drops Cross-Site Feature 'Pull'

Vixen Media Group has released “Pull,” a five-part, cross-site feature with scenes presented by its studio websites Vixen, Blacked, and Tushy.

Private Releases 'Private Gangbangs 5'

Private has released “Private Gangbangs 5,” directed by Xavi Rocka.

FTC Promises 'Vigorous' TAKE IT DOWN Act Enforcement

The Federal Trade Commission is warning platforms that the agency will strongly enforce the notice-and-removal requirements of the TAKE IT DOWN Act, which go into effect next week on May 19.

Adult Time, AgentRedGirl Release 3rd Installment of 'Oopsie! Animated'

Adult Time has released the third episode of "Oopsie! Animated," a limited futanari-themed series produced in collaboration with animation studio AgentRedGirl.

Zariah Aura, Rebel Rhyder Lead Latest From Evil Angel

Zariah Aura and Rebel Rhyder star in the latest release from Evil Angel, directed by multi-XMAs winner Aiden Starr.

2026 XBIZ Miami Speaker, Open-Floor Conversation Guide Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ Miami, the latest edition of the adult industry’s premier summer conference, set to take place May 11-14 at the Goodtime Hotel in Miami Beach.

Bad Bella Stars in Latest From New Sensations

Bad Bella stars with Alex Legend in the latest release from New Sensations.

Show More