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 © 2025 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

Le Wand Dive Gets Wired.com Review

Le Wand Dive has been spotlighted by WIRED with a review by tech and lifestyle journalist Amanda Chatel.

Texas Resumes AV Lawsuit Against Aylo Following SCOTUS Decision

A district court judge in Texas has unfrozen the state’s $1.6 million lawsuit against Aylo for allegedly failing to comply with age verification requirements, Bloomberg Law is reporting.

Nadia Jay Stars in Latest From Brazzers

Nadia Jay stars with Mick Blue in the latest release from Brazzers, titled "Fucking the Bath Voyeur."

Blush Introduces 'Splash' Vibe

Blush has debuted its new duck-themed Splash vibrator.

SVibe Debuts 2 New Vibrators

SVibe has introduced the new Snail GIZI Duo and Snail AXI Spot Wand.

Tommy Gunn Reflects on His Legendary Past as He Looks to the Future

Tommy Gunn is wearing an eyepatch. It’s not an homage to the classic "Pirates" porn parody franchise, in which Gunn takes on the Johnny Depp role. The eyepatch is a temporary measure to help him deal with a nerve palsy that came out of nowhere several years ago and affects his vision from time to time. Gunn needs his vision. As one of the adult industry’s longest-serving male stars, he still has plenty to look forward to.

Rocco Siffredi Directs New Rebel Rhyder Showcase

Evil Angel has released Rocco Siffredi’s Rebel Rhyder showcase title, "Rebel Meets Rebel."

JuicyAds Wins Trademark Infringement Case Against Fraudulent Domain

JuicyAds has won its World Intellectual Property Organization (WIPO) case against a website using a similar domain to impersonate the company's site and defraud customers.

Shalina Devine Toplines 'Thr3e #7' From Dorcel

Shalina Devine headlines the latest release from Dorcel, titled "Thr3e #7."

Chloe Amour Headlines 'Unfaithful Betrayal 3' From Bellesa Films

Chloe Amour toplines the third volume of “Unfaithful Betrayal” from Bellesa Films.

Show More