While most adult businesses are content to operate as low on the government’s radar as possible, there are growing indications that porn is fast becoming one of the controversial hotbeds of the American economy.Recently, at least two states have proposed tax bills targeted specifically at adult businesses, or designed specifically to exclude adult companies.
In Missouri, pornography may soon be subject to a steep state tax.
Senate Bill No. 32 would impose a 20 percent tax on revenues of all “sexually oriented businesses,” as well as charge adult-theme businesses a $5 per patron fee, and prohibit businesses from staying open past 10 p.m. In addition, the law would prohibit strippers from receiving tips.
The proposed law would also apply to video stores that carry adult movies, even if 90 percent of the store’s movies are mainstream.
“It would have the effect of almost putting most people out of business,” said Joe Spinello, who runs the Shady Lady, an adult dance club. “It’s a huge, unfair tax increase.”
“It sends a horrible message to business owners about what special interests might do to eliminate your industry,” Spinello added.
Republican Sen. Matt Bartle hopes to have his bill made into law. “I think we’ve got a good chance of passing the bill,” said Bartle, adding that he believes most Missourians approve of the bill.
“We need to do whatever we can, within the limits of the Constitution, to regulate, wisely, the porn industry,” Bartle said.
The bill was approved by the Senate Judiciary Committee, and is backed by Governor Matt Blunt. “I favor greater restrictions on the industry,” Blunt said. “We need to create more jobs in Missouri, but those aren’t the kind of jobs we want to create.”
Owners of adult businesses in Kansas City and throughout Missouri have hired a lobbyist to help advocate their cause.
Porn in the Grand Canyon State
Meanwhile, in Arizona, the state is seeking to implement a bill that would offer tax breaks to film and television producers.
The proposed tax break specifically excludes adult productions.
A state Senate panel made the decision to exclude “obscene” productions from the film production tax break.
The State Finance Committee also added language to two bills prohibiting “obscene” film productions and/or photo shoots from receiving any sort of tax credits from the state.
