RICHMOND, Va. — The Virginia House of Delegates is considering a bill that would impose a 10% tax on the gross receipts of adult websites doing business in that state.
House member Eric Zehr’s HB 720 would levy a new 10% tax on the gross receipts of “any commercial entity operating an adult website for all sales, distributions, memberships, subscriptions, performances, and other content amounting to material harmful to minors that is produced, sold, filmed, generated, or otherwise based in the Commonwealth.”
In what could be an early signal of a new “copycat” trend, reminiscent of the numerous state age verification bills introduced in the wake of Louisiana’s 2022 AV law, the bill includes wording essentially identical to a similar proposal currently pending in the Utah state legislature, which calls for a 7% tax on adult sites.
Alabama imposed a similar 10% tax last year, and state senators in Pennsylvania have since floated the idea of doing the same, citing “successful approaches in other jurisdictions.”
Most recently, a candidate seeking the Republican gubernatorial nomination in Florida attracted media coverage by calling for a 50% “sin tax” on the earnings of OnlyFans models residing in the Sunshine State.
Revenue from the proposed new tax in Virginia would be directed to the state’s Behavioral Health and Developmental Services Trust Fund, which was created to support care and treatment for individuals receiving public mental health, developmental and substance abuse services.
That provision echoes a similar directive in the Utah bill.
