By the looks of it, State assemblyman Charles “Chuck” Calderon is wearing a brand new toupee and wants the adult industry to underwrite its maintenance costs.
At least that’s the impression you get from Calderon’s attempts to extort a 25% tax from the adult industry. Never mind the fact that his other bill, AB 1956 got laughed at and failed in the Revenue and Taxation Committee. Calderon now wants to try again, this time with AB 2914.
Sacramento- Monday was lobbying day for the adult entertainment industry, one of the more unusual annual rituals at a statehouse was unusual is the norm.
The fully clothed ensemble that made their way to Sacramento had a particular gripe this time around: pending legislation to impose a new (and extra) 8% tax on adult DVD stores, theaters, and nightclubs. The money collected by the tax in Assemblymember Charles Calderon’s bill, AB 2914, would create a new fund to supposedly mitigate the impact of such businesses on local communities.
Let’s just answer that burning question now, shall we? Yes, adult film stars were in attendance. And no, I shouldn’t have Googled them in advance when I didn’t recognize the names listed on the press advisory (seriously, KQED, I was doing research).
Now that we have that out of the way… the industry representatives argued the tax would send many in the multi-billion dollar sex industry packing to other states. “You do not want this industry to relocate,” said Jeffrey Douglas of the industry-sponsored Free Speech Coalition.
Of course, AB 2914 could pose an interesting dilemma for some legislators, namely Republicans. After all, if you’re a social conservative you’d probably love nothing more than to see the XXX industry move out. But if you’re a fiscal conservative, you’re probably loathe to enact a new tax. Oh, the irony.
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According to a story by www.xbiz.com , AB 2914 would impose an additional 8 percent tax on all sales and services related to the industry but the author of the bill, Calderon, R-City of Industry, was threatening to raise the tax to 25 percent.
Industry attorneys are saying the tax is unconstitutional and it’s considered that Calderon’s move to increase the proposed tax threefold will not sit well with state Republican lawmakers.
Free Speech Coalition Executive Director Diane Duke said such a tax would not only drive many adult businesses out of the state or out of business but would cause serious harm to many individuals and their families. Duke also said that Calderon’s tax bill was based on lies and misinformation particularly that the industry imposes a blight on the state and its economy.
“Fortunately, a number of reasoned legislators understand the vital role the adult entertainment industry plays in California’s economy, as well the contribution the industry makes to the quality of life for countless Californians,” Duke added.
AB 2914 has been referred to a May 5 meeting of the State Assembly Committee on Revenue and Taxation.