The Pennsylvania State Senate is considering a bill that would impose a 10% tax on the revenue of adult websites doing business in the state.

Background and Proposal

The bill, titled the "Online Adult Content Subscription Tax Act," was introduced on March 30 and has been referred to the Pennsylvania State Senate Finance Committee. The legislation aims to impose a new 10% tax on recurring memberships, subscription fees, and one-time access fees charged for access to "sexually explicit commercial content" via websites, mobile apps, or online platforms.

The bill's primary sponsor is Democratic State Senator Marty Flynn, who introduced the legislation along with Republican co-sponsor Sen. Joe Picozzi. In a memo issued in October 2025, Flynn and Picozzi stated that they planned to introduce legislation to impose a new tax on adult content platforms, over and above the state's existing 6% sales and use tax.

The memo read: "Currently, online adult content platforms generate revenue from Pennsylvania subscribers but contribute nothing beyond the standard sales and use tax. By imposing a targeted 10% tax on these services and purchases, we can ensure that these platforms contribute their fair share to the Commonwealth."

Industry Reaction

The proposal has sparked concerns among industry attorneys, who argue that imposing a specific tax on adult content makes the constitutionality of the bill suspect. Lawrence Walters, an industry attorney, stated that "it imposes a content-based obligation" and questioned its constitutionality.

Walters' comments were in response to the bill's language, which states: "This act is not intended to prohibit or censor expressive activity but is solely intended to ensure equitable tax treatment of certain commercial transactions."

Impact on Revenue

The revenue generated from the proposed tax would be deposited into the General Fund, where it can support critical state priorities such as education, public safety, and health services. The bill's proponents argue that this is a fair share for online adult content platforms to contribute to the Commonwealth.

Similar Taxation in Other Jurisdictions

The proposal mirrors successful approaches in other jurisdictions to modernize tax codes and ensure that online businesses are treated appropriately. Alabama, for example, has already begun levying a 10% tax on the gross receipts of "sales, distributions, memberships, subscriptions, performances and all other content amounting to material harmful to minors" that is produced, sold, filmed, generated, or otherwise based in the state.

Key Facts

  • The bill would impose a 10% tax on recurring memberships, subscription fees, and one-time access fees charged for access to "sexually explicit commercial content."
  • The revenue generated from the proposed tax would be deposited into the General Fund.
  • The bill's primary sponsor is Democratic State Senator Marty Flynn, along with Republican co-sponsor Sen. Joe Picozzi.
  • Industry attorneys have raised concerns about the constitutionality of the bill due to its content-based obligation.