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

Adult Time Drops Latest Installment of 'MILF Overload'

Adult Time has released the latest installment of the Jim Powers-directed series "MILF Overload," titled "Boss Overload."

Jewelz Blu Leads Latest From FreeUse

Jewelz Blu stars with Jimmy Bud in the latest installment of the FreeUse series "Freaky Fembots."

Raissa Bellini, Sarah Arabic Star in Latest From Brazzers

Raissa Bellini and Sarah Arabic star with Victor Ray in the latest release from Brazzers, titled "Spilling Out of Their Loungewear."

CalExotics Expands 'Cheap Thrills' Line of Male Masturbators

CalExotics has added four new pleasure products to its Cheap Thrills line of male masturbators.

Rachel Rampage Makes Her Brazzers Debut

Rachel Rampage has made her Brazzers debut alongside multi-XMAs winner Mick Blue in the studio's latest release, titled "Right Down To Cock Sucking Business."

California Governor Signs Bill Limiting CIPA Claims

Governor Gavin Newsom has signed into law a bill to narrow the scope of the California Invasion of Privacy Act (CIPA), to prevent abusive lawsuits targeting online businesses, including adult websites.

XBIZ Retreat Canada to Debut in Toronto Aug. 16-20

XBIZ Retreat is heading north for the debut of its Canadian edition, bringing its signature hosted-buyer experience to Toronto Aug. 16-20.

Jennifer White, Jessi Rae Lead Latest From Blacked

Reigning XMAs Female Performer of the Year Jennifer White stars alongside Jessi Rae and Isiah Maxwell in the latest release from Vixen Media Group studio imprint Blacked.

SWPA to Host Webinar on Landing Media Coverage for Sexual Wellness Brands

The Sexual Wellness Professional Alliance (SWPA), a division of the Free Speech Coalition, will host a webinar on Wednesday, Oct. 7, offering strategies for sexual wellness brands to attract media coverage.

Evil Angel Drops 'My Fantasy With Rocco'

Evil Angel has released the latest title from director Rocco Siffredi, titled "My Fantasy With Rocco."

Show More