Pa. senators’ bipartisan plan for online porn tax would generate revenue for state

Pennsylvanians who buy content from or subscribe to online adult websites should pay more than just the state’s 6% sales tax, a bipartisan pair of lawmakers contend.

State Sens. Marty Flynn, a Democrat, and Joe Picozzi, a Republican, plan to introduce legislation that would pull an additional 10% from the pockets of people who profit from online porn. While consumers pay these taxes at the time of their purchase, companies collect the proceeds and remit them to the state.

Flynn and Picozzi referred to online adult content platforms as a “rapidly growing sector of the digital economy” in their cosponship memo Oct. 15.

Fair share

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

Revenue would support the state’s general fund, which pays for education, public safety and health services, among other things, the memo says.

“This proposal mirrors successful approaches in other jurisdictions to modernize tax codes and ensure that online businesses are treated appropriately,” it continues. “As more commerce shifts to digital platforms, it is essential that Pennsylvania’s tax policy keeps pace.”

Tax elsewhere in the U.S.

Alabama began 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 this state,” on Sept. 1. The first payments were due Oct. 20 and revenue will support the Alabama Department of Mental Health, according to AL.com.