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

Segpay Partners With Corey Silverstein for Legal Services

Segpay has partnered with adult industry attorney Corey D. Silverstein for specialized legal compliance and policy support for its merchant network.

Victoria Grant Stars in Latest From TransAngels

Victoria Grant stars with Daniel Gainsbrook in the latest release from TransAngels, titled "Seduced by the Belly Dancer."

Zalo Signs Distro Deal With ECN

Zalo has inked a deal with East Coast News (ECN) for U.S. distribution.

Toendi Debuts 'Aurora 2' Vibe

Toendi has unveiled its new Aurora 2 vibrator.

Missouri Governor Signs Bill Making AV Regulations State Law

Missouri Governor Mike Kehoe signed a bill into law on Thursday requiring adult websites to age-verify users in the state, finalizing a legislative “stamp of approval” for AV rules after Missouri’s attorney general unilaterally imposed similar regulations last year.

Ameena Green Fronts Latest From Bellesa Plus

Ameena Green stars with multi-XMAs winner Alex Jones in a release from Bellesa Plus, titled “The Tailor.”

Ofcom Fines Fapello $845,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 630,000 pounds (about $845,000) against adult website fapello.com for failing to comply with provisions of the Online Safety Act.

Je Joue 'ILY G-Spot Wand' Featured in Vice Review

Je Joue’s ILY G-Spot Wand has been named Best G-Spot Wand in a new round-up of the best wand vibrators on Vice.com.

Beisar Introduces 'Pelor' Anal Vibe

Beisar has debuted its Pelor vibrating anal pleasure product.

Holiday Now Shipping 'Zumio X2' Stimulator

Holiday Products is now shipping the Zumio X2 clitoral stimulator.

Show More