California Wants +25% Tax On Porn
 

SACRAMENTO (KABC) -- California's $4 billion adult entertainment industry is up in arms over a new state proposal it feels is unfairly singling them out. Owners of strip clubs, online porn sites and stores would have to pay an additional 8 percent on gross receipts.

"I don't think that's very fair at all, because there's nothing wrong with what I'm doing," said adult-film actress Mary Carey. "And there's nothing wrong with the adult industry."

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But Assemblyman Charles Calderon says there is something wrong with the porn industry -- he says the workers don't usually have a long career, and California taxpayers end up footing the bill at a time when the state is broke.
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"When they come out, they come out with no skills. They come out unemployed. Many come out addicted," said Assemblyman Charles Calderon, D-Los Angeles. "If they go on unemployment or Medi-Cal, that's a cost to the state."

San Fernando Valley would be hit the hardest because that's where almost all American porn flicks are made. The new tax could bring about $500 million a year. Assemblyman Calderon may even re-write the proposal this week to boost the tax to 25 percent.

College students who were lobbying at the Capitol Monday to push for fewer education cuts want any way to boost state coffers, even if the money came from a questionable source.

"When you're for a greater cause, it doesn't matter where you get the funds, as long as it's a legal source of funding and going to improve the future and the economy," said college student Bridgette Dussan.

Previous attempts for a special tax on the adult entertainment industry have failed. This version gets its first hearing in two weeks.

California Wants +25% Tax On Porn

A 25% tax will never pass, and if it does get pass... You are going to see most of the companies moveing out of the state.

California already has a tax on merchandise manufactered in the state, which is passed on to the consumer.

for online, only the talent would remain in CA.

And who elected that asshole?
Assemblyman Charles Calderon, D-Los Angeles

how will they know what companies are "porn" and how will that determination be made??

"When they come out, they come out with no skills. They come out unemployed. Many come out addicted," said Assemblyman Charles Calderon, D-

lol! Sounds like my high school graduation

i was thinking the same.. sounded familiar

that would suck big...
8% on gross receipts is a huge number, much more than they have listed above.
ie you sell $10k of content, have to pay $800 in taxes, time to move corporation out of cali if this goes thru..

:1orglaugh

Do they not realize that the valley porn industry is slowing down massively anyway... The DVD side of the business is going to be nearly non-existent in the next couple years and more is being shot across the country or out of country year by year. They are going to cut their own throats by rushing the exodus of that income and legit taxes that are here now. As much as they hate to admit it, porn in the valley means income for so many that are not directly in the business. (ie, catering, makeup, supplies, etc)

pure political moves to divert attention from real topics that need to be addressed

:disgust

I was part of a group of lobbyists that beat this the first time around. Time to get back to Sac and pound on some doors again. The reps aren't going to know it is bull puckey unless the industry gets in there and educates them.

thts some bullshit

But hollywood does not need to pay anything extra.

sounds like in and out burger too :) and congress!!!

they can suck my 25%

I second what he said.

A more valid argument would be that porn keeps models off welfare in the time they are working. Nothing prevents models from working other jobs and going to school. So the argument that porn stunts their personal growth is ridiculous.

oucchhhhh

come to Canada .. we are so happy to have film companies up her we usually give tax BREAKS ... just have to skirt the whole porn thing .. I prefer to call it "independent film company"

Fucking bullshit. Can they legally target an individual industry like that? If it goes through, expect it to eventually go nationwide.

What a goon

That's bullshit

I would have to double check but I am sure that such a specialized tax on an industry was shot down before with a special paper tax. Have to do research to find the details again.

If they tax porn, then can they try and go after it. Im assuming if its taxable it then has to be considered legal no more grey bullshit. Any thoughts?

I was one of the team leaders up in Sacramento with FSC lobbying against this tax.

I was there last year and for the most part, the Republicans, of all people, were the ones telling us they would not vote for this tax if it ever makes it out of Committee.

And again this year, the Republicans indicated they would not support it.

The Dems, well they love to tax and they were not exactly against it. I personally met with Nunez, Speaker of the House's staff. While they did not seem supportive of the bill, they would certainly not kill it. Nunez should kill this bill in Committee for violating legislative rules, but he wont. I guess for a Dem, its goes a long way to show the religious right that the Republicans dont want to get "hard" on porn.

This a political football and it will spread to other states. As we slip further into recessions, states need $ and porn is an easy target.

I am going back up to Sacramento in 2 weeks for the Committee meeting on this bill.

actually the canadian government is trying to close that loophole

Cough
Machine gun tax act
Marijuana tax act

your right that so unfair it not like they haven't done it to tobacco, gas etc.

many industries have been targetted with "special" taxes.

What a crock of shit! Where are the stats to back up his claims?

I'm pretty damn sure that people exiting the adult industry are not costing the State $500 million per year.

ADG

Politician math -- porn is an estimated $4 billion a year industry in Cali. 25% tax = $1 billion, so he goes conservative and says $500 million.

It will last 1-2 years until the film industry is gone, every strip club is boarded up and every adult DVD store is a Starbucks.

This is a way to tax the industry out of existence.

bump for new readers!

How about a 25% tax on living in inner Los Angeles?

Kids go in, have babies, leave crack addicted and without skills... All of these inner city fuck heads that would rather drink then work are a burden on the rest of us.

Yes I drink. Yes I sit on my ass. But at least I make a shitload of money doing it!

I would never live in Cali anyways. Talk about a shitty state.

bump for america!