Sex
shops and strip clubs would have to pay an extra 25% tax on their sales
and services under a proposed state law supposedly meant to offset the
costs of allowing such businesses into a community.
But California's $4 billion-a-year adult industry has attacked the
proposal by Assemblyman Charles Calderon as unconstitutional and based
more on opinion than on fact. Adult-business owners in Orange County say
the tax would put strippers out of business and break sex shops that
already must abide by strict rules about where they can operate.
I don't know how this business has any kind of bad reputation,
said Jerry Tatarian, the manager of the Flamingo Theater, a strip club
in Anaheim. You walk in here on your own free will. We don't show
anything outside. We're just a regular business. Twenty five
percent? he added. What's he trying to do, become a partner?
On the other side of the debate are teacher unions, which see a new line
of revenue for districts hard-hit by budget cuts and layoffs. The sex
tax would essentially target luxury items, said Linda Barnett, the
president of the Anaheim Secondary Teachers Association.
The bill would add the 25% tax to any items sold in an "adult
entertainment venue." That would be anyplace that gets at least half of
its revenue from sexually explicit performances or from the sale of
adult videos, magazines or other media.
In other words, you would have to pay a 25% tax on anything you bought
in a porn store – even a pack of gum.
Calderon's bill says that strip clubs, sex stores and other adult venues
generate community problems such as prostitution, drug use and sexually
transmitted diseases. It also says the easy availability of Internet
pornography is unhealthy for children. The tax would pay for education
as well as social services that could include law enforcement and
treatment for substance abuse and sexually transmitted diseases.
The industry has challenged the legality of Calderon's bill, saying that
it targets sexually explicit performances at strip clubs, but makes
exceptions for "legitimate" theatrical productions. Gray also dismissed
many of the claims made in the bill, saying they were based more on
opinion than on studies or other real evidence.
See
full article from AVN
After an hour and a half of discussion, Charles Calderon's porn tax
bill, AB 2914, never made it before the nine members of the Assembly
Revenue & Tax Committee for a vote yesterday, with Calderon electing to
keep the bill in the suspense file.
The suspense file is for any bill that costs more than a certain
dollar amount, a threshold, and in this committee, that's $500,000 to
implement, explained Matt Gray, California lobbyist for the adult
entertainment industry.
What happens is that all the bills that cost over that $500,000 mark
are put in that suspense file, and then at the end, they prioritize
which bills come out based upon how much money they have to spend. The
earliest it could come out is this coming Monday, and the latest is
sometime probably in August. It's a two-thirds vote bill and can move
without deadlines. But the important part to remember is, it was
supposed to be considered along with all other bills on suspense file
yesterday, and he announced that it would not be taken up on suspense.
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