N.Y. Gov Dumps Download Tax Proposal; Legislator Proposes 'Pole Tax'

ALBANY, N.Y. — New York Gov. David Paterson has announced that he will drop a proposed tax on Internet downloads — including downloads of adult material —and use money from the recently-passed stimulus package to help close the state's growing deficit.

Wisconsin legislators approved a 5 percent download tax in February.

Last December, Paterson had called for 88 new fees, including taxing the sale of downloaded music and other "digitally delivered entertainment services" in a bid to wipe out a $14 billion budget gap. Under the proposals, movie tickets, taxi rides, soda, beer, wine, cigars, massages and health club memberships would all have been taxed, generating an estimated $1.3 billion.

"The proposed tax increases we are eliminating today were only put forward as a last resort when the deficit ballooned to an unprecedented level," Paterson said.

While the governor was dropping his plan for download taxes, Brooklyn Assemblyman Felix Ortiz introduced a bill that would require gentlemen's club patrons to pay the state $10 every time they visit.

Ortiz said the fee could raise as much as $500 million, which would be earmarked for victims of human trafficking, domestic violence, sexual abuse and child prostitution.

"We have to protect people who have been victimized by unscrupulous individuals, and we cannot continue, especially in this economy, to have government pay for everything," Ortiz said.

Ottiz' bill has yet to find a sponsor in the state senate.

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

SCOTUS Won't Hear Appeal in NYC Adult Businesses Zoning Case

The U.S. Supreme Court has declined to hear an appeal by a group of adult businesses of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

AEBN Publishes Popular Searches for November, December

AEBN has published the top search terms for November and December from its straight and gay theaters in all 50 states and the District of Columbia.

National Signs Distro Deal With NeuroSource for Happy Mind, XXXTabs

National Distribution has signed a deal with NeuroSource to carry the wellness brand's Happy Mind and XXXTabs product lines.

Nobü Partners With JellyFilledGirls for 'Jëli' Vibrator

Pleasure brand Nobü has teamed up with creator duo JellyFilledGirls to release the Jëli vibrator.

Orion Debuts 'RC Inflatable Expander Plug' From 'Anos' Line

Orion Wholesale has introduced the RC Inflatable Expander Plug with Vibration from its Anos line.

Icon Debuts New 'Mixers' Dildos

Icon Brands has introduced its new Mixers dildo collection.

X3 Expo Day 2 Delivers Stars, Screenings and Fan Favorites

The sun once again shone brightly on the historic Hollywood Palladium as throngs of avid fans made their way through the doors, ready to experience Day 2 of the 2026 X3 Expo.

X3 Expo Kicks Into Gear With an All-Star Lineup

Outside the historic Hollywood Palladium on Friday, a huge crowd of fans lined Sunset Boulevard, eagerly awaiting the opening of the 2026 X3 Expo and their big chance to meet the cream of the crop of adult stars.

2026 XBIZ Honors Salutes Resilience Across the Online Adult Industry

The 2026 XBIZ Honors packed house Wednesday night, turning the Kimpton Everly Hotel’s Nichols Ballroom into a gala celebration of industry excellence.

Elevated X Adds CCBill Integration for Payment Processing

Elevated X has added CCBill integration for payment processing to its ELXNexus traffic management and affiliate program software.

Show More