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

Magic Silk Expands 'Love' Line

Magic Silk has introduced six new styles from its Love line of lingerie.

XBIZ Virtual Pleasure Products Trade Show Set for July 28-30

To facilitate global business between brands and buyers without the need for travel, XBIZ is pleased to reintroduce a virtual edition of its pleasure products events, set for July 28-30.

Orion Debuts New Styles From 'Svenjoyment' Line

Orion Wholesale has released two new styles from its Svenjoyment undergarment line.

Ondato Joins Pineapple Support as Sponsor

Age and identity verification company Ondato has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Blush, 'Drag House Rules' Partner for Pride Month

Blush has been named an official challenge sponsor for OUTtv’s “Drag House Rules” during Pride Month.

Je Joue to Debut Expanded Product Lines at ANME

Je Joue will introduce several new products from its ILY and Je Joue collections at the ANME trade show in Burbank next month.

2026 XBIZ Amsterdam Website Now Live, Registration Opens

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

MyMember.site Integrates FSC's 'PrivateAV' Age Verification Solution

MyMember.site has integrated Free Speech Coalition's PrivateAV age verification tool into its website-building platform.

Pearl Industry Network Opens Beta for Creator Networking App

Industry trade group Pearl Industry Network (PiN) has launched beta testing for the PiN Member App, a networking and collaboration tool for content creators.

Orion Expands 'Beau Coeur' Collection

Orion Wholesale has introduced two new pleasure products from its Beau Coeur collection.

Show More