Home > News > L.A. Times Covers Calif. Bid to Tax Porn • Bookmark   • Register
Search Options

NEWS STORY

L.A. Times Covers Calif. Bid to Tax Porn

Article suggests that previously unthinkable taxes might have a chance of passage due to the state's estimated budget deficit of $20 billion
XBIZ POLL
Are your DVD box covers designed in-house or out-sourced?
In-house
Out-sourced
Both
We don't produce DVDs
 
Sunday, May 11, 2008    Text size: 
SACRAMENTO — A May 8 Los Angeles Times article titled "California tax proposals target beer-loving, pornography-watching yacht owners," suggests that because of the state's expected $20 billion budget deficit several normally far fetched California tax proposals introduced this year actually have a chance of being passed by a divided legislature.

One proposed new law of special interest to the adult entertainment industry is AB 2914, sponsored by Assemblyman Charles Calderon (D-Montebello), which would add "a 25% tax on sex toys, strip shows, pornographic magazines and videos and anything else sold in an 'adult entertainment venue.'"

In the article, Times staff writer Evan Halper says Democratic lawmakers believe that in the current fiscal environment, this and other proposals that would otherwise never gain momentum could very well find their way into existence due to unprecedented pressure to find new money or face cutting essential state funding.

"Despite tough odds of overcoming an oath signed by their Republican colleagues to stop any tax hikes, Democratic lawmakers seem confident that their ideas will carry the day," Halper writes. "They predict the public won't stand for painful cuts to schools and healthcare to close a shortfall the governor now pegs as high as $20 billion, and say anti-tax forces will ultimately have to accept that more revenue is needed to bring the state into the black."

As the article headline suggests, porn is not the only commodity being singled out for added assessment. "Assemblyman Jim Beall (D-San Jose)... hopes to see a $1.80 tax added to the price of every six-pack of beer sold in the state."

iTunes downloads are also being targeted, by the very same Calderon who threatens to tax adult companies. His proposal (AB 1956) would hike a tune from 99 cents to about $1.07.

About the adult entertainment industry, Halper quotes some very tough language from Calderon: "This is a major industry that is putting a disproportionate burden on state services," he said. "Drugs are heavily used. The actors have a short life span. Some leave the industry drug-addicted with no skills. They wind up availing themselves of Medi-Cal and other state programs."

Despite the extreme claims, Halper writes that Calderon "is perplexed that he hasn't been able to get more traction..." for the porn tax bill, suggesting that the legislator is resigned to its eventual defeat, possibly not even making it out of the Revenue and Taxation Committee, which he chairs. (AB 2914 is Calderon's third attempt to levy an additional tax on the adult entertainment industry in California.)

Other proposed California taxes include 25 cents on every plastic carryout bag from stores, new fees for drivers of luxury vehicles that get less than 15 miles per gallon, eliminating the mortgage deduction for vacation homes valued at more than $1 million, closing a sales tax loophole on luxury yachts and also another loophole that allows felons to claim tax breaks on criminal business operations.

Calderon points to one specific consequence of not passing at least some of the bills.

"If we don't do some of these things, we are going to have to cut nearly $5 billion out of schools," he warns.

   
Share this article:
del.icio.us technorati fark
More ways to get news:  XBIZ RSS  |  XBIZ Newsletters  |  XBIZ Desktop News  |  XBIZ Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

Top Online Marketing Tips

Recently, XBIZ World Magazine asked several industry players "What is your favorite online marketing, sales and/or advertising technique?" Here's what they had to say: One of my favorite marketing... More »

Exit-Chat Offers Smart Agent

Recently, the online adult industry witnessed a revolutionary change in the way websites maximize profits from curious customers, with the official launch of Exit-Chat.com, the adult brand which features... More »

WIA Profile: Hilda Tuel

Each month, in conjunction with adult media company XBIZ, a new WIA member is profiled in the pages of XBIZ World and XBIZ Premiere magazines to highlight her career accomplishments, dedication to her... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.







POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's premier trade journals in digital format - view online or download for offline viewing!

UPCOMING EVENTS

eXXXotica New York

Sep 12 - Sep 14
New York, New York

Atlanta Forum 2008

Sep 18 - Sep 20
Atlanta, Georgia

Webmaster Access Europe

Sep 25 - Sep 27
Amsterdam, Holland

Oktoberfest Gathering

Sep 28 - Sep 30
Munich, Germany
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!