By Brandon Moseley
Alabama Political Reporter
On Wednesday, September 9, the House Ways & Means General Fund Committee voted to give a favorable report to House Bill 17, sponsored by Rep. Jack Williams (R-Vestavia). HB17 would levy an excise tax on the receipts from the sale of sexually-oriented materials and certain charges related to sexually-explicit businesses.
The purpose of the Second Special Session is to raise growth revenues for the troubled state general fund (SGF); and this proposal by Rep. Williams was one suggestion that passed the General Fund Committee on Wednesday.
The bill reads: that, “Under current Alabama law, it is unlawful for a minor to purchase, use, or possess alcoholic beverages or tobacco products. (2) Also under current law, it is illegal for any person to distribute certain sexually-oriented materials and services to a minor or to allow a minor to enter into certain sexually-explicit businesses because such content is deemed harmful to minors. (3) Alcoholic beverages and tobacco products are further regulated by the State through the levy of specific excise taxes in addition to sales and use taxes; however, the State does not levy an excise tax on the receipts from the sale of sexually-oriented materials and services or certain charges related to sexually-explicit businesses. The purpose of this act is to levy an excise tax on the sale of sexually-oriented materials and certain charges related to sexually-explicit businesses such that all products and services whose acquisition or use by minors is prohibited by the State in the same manner.”
For the purpose of the statute, “SEXUALLY-ORIENTED MATERIAL” means any book, magazine, 15 newspaper, printed or written matter, writing, description, picture, drawing, animation, photograph, motion picture, film, video tape, pictorial presentation, depiction, image, electrical or electronic reproduction, broadcast, transmission, video download, telephone communication, sound recording, article, device, equipment, matter, oral communication, depicting breast or genital nudity or sexual conduct,” (sexual conduct is also defined in the statute though it is defined more broadly and includes acts that most of us in the public would normally not think of. For our high publishing standards we chose not to go there). The excise tax would be 40 percent of the gross from sale or rentals of “sexually-oriented material,” and is to be paid by the “dealer” at the time the material is sold. Hollywood’s R-rated and NC-17 rated products are expressly written out of the statute, although there is a lot of product produced in the mainstream movie business that would otherwise qualify under these standards.
SEXUALLY-EXPLICIT BUSINESSES are defined as: “A business at which any nude or partially denuded individual, regardless of whether the nude or partially denuded individual is an employee of the sexually-explicit business or an independent contractor, performs any of the following services: 1 a. Striptease, burlesque, or drag shows; or 2 b. Massages.”
Those sorts of businesses will be charged a 40 percent State excise tax.
The excise tax shall not apply to: any contraceptive device or medication or any medication that is prescribed by a physician that is intended to enhance sexual performance or sexual enjoyment.
At sexually-explicit businesses the tax shall be collected by the owner at the time services are provided. Persons subject to the tax imposed by this section shall file monthly returns and remit the tax for the month to the department of revenue on or before the twentieth (20th) day of the next month following the month in which the sale was made.
In addition to the 40 percent excise tax for the SGF there is an additional excise tax of 10 percent of the gross receipts half of which goes to the county and half to the municipality in which the sale occurred or the sexually-explicit business is located. When the sale occurs where there is no city limits that 5 percent is equally divided between the state and the county.
Rep. Williams told the House Ways & Means General Fund Committee said that the porn tax would generate, “North of ten million dollars.”
The bill now goes to the full House for its consideration.
