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

New Kickstarter Rules Ban Fundraising for Adult Content, Products

Crowdfunding platform Kickstarter has posted new “Mature Content” rules banning projects that involve adult content and sextech.

Full Circle Expands Enhancements Collection

Full Circle has expanded its collection of performance enhancers.

Lucy Mochi Performs 1st Studio Anal for Brazzers

Lucy Mochi performs her first studio anal scene opposite Scott Nails in the latest Brazzers release, "Fresh and Ready for Anal."

WebGroup Czech Republic Settles Florida AV Suit, Will Pay $1.2 Million

WebGroup Czech Republic (WGCZ), the parent company of XVideos, XNXX, BangBros and GirlsGoneWild, has settled a lawsuit filed by the state of Florida over those sites’ alleged failure to age-verify Florida users before allowing access to adult content.

Blake Blossom, Romi Rain & Ophelia Fae Star in Latest From Girlsway

Blake Blossom, Romi Rain, and Ophelia Fae star in the latest release from Girlsway, titled "Downward Temptation."

Screaming O Debuts New 'Rechargeable Rings' Collection

Screaming O has introduced its new collection of rechargeable, vibrating cock rings.

Tiffani Time Fronts Latest From Kink.com

Tiffani Time stars with director John Paul “The Pope” in the latest installment of Kink.com’s "Device Bondage" series, titled “Taken Down a Notch.”

Eris Jolie, Athena Parisi Star in Latest From TGirls.Porn

Eris Jolie and Athena Parisi star in the latest release from Grooby paysite TGirls.Porn, titled "Pool Day Date."

Leilani Li, Olivia Jay Lead Latest From TransAngels

Leilani Li and Olivia Jay star with King Noire in the latest release from TransAngels, titled "Deep Dive."

Ofcom Investigates Two Sites Over Possible AV Violations

U.K. media regulator Ofcom on Wednesday launched investigations into two adult sites as part of its age assurance enforcement program under the Online Safety Act (OSA).

Show More